Systemic US banks put aside $5bn for credit losses in Q3
Citi put aside $2.3 billion in Q3, the most of the top lenders
Amounts stowed away to cover souring loans dropped sharply over the third quarter across the eight systemic lenders in the US.
Aggregate provisions for credit losses (PCL) taken by the banks in Q3 amounted to $5.4 billion, 85% less than in Q2. This equated to around 20% of aggregate net income for the quarter. In Q2, PCL amounted to a staggering 244% of net income.
Citi put aside the most loan-loss reserves of the group, taking $2.3 billion of PCL over the three months to end-September, down
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