Citigroup Misses Profit Estimates on Provision Hike, Dealmaking Slowdown

Citigroup Misses Profit Estimates on Provision Hike, Dealmaking Slowdown
Customers use ATMs at a Citibank branch in the Jackson Heights neighborhood of New York City, on Oct. 11, 2020. Nick Zieminski/Reuters
Reuters
Updated:
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Citigroup Inc. reported a 21 percent fall in quarterly profit on Friday, missing forecasts, as the bank increased provisions to prepare for a worsening economy and investment banking revenue declined due to a sharp drop in dealmaking activity.

Fears of a potential recession prompted Citi to add $640 million to its reserves in the fourth quarter, compared with a release of $1.37 billion from its reserves in 2021 when pandemic-related loan losses failed to materialize.