Bank of America and Citigroup report losses of $4.139 Billion as they write-off mounting debts from customers who can’t pay.
Citigroup’s latest quarterly earnings report shows that its net credit loss, or debts it does not expect the company to recover, reached $2.28 billion during Q2 this year.
This figure is an increase of nearly $780 millions from the delinquent amounts recorded in the quarter ending 2023, which totaled $1.504 Billion.
Bloomberg reports that Citigroup CEO Jane Fraser is beginning to notice signs of the American average consumer cutting back their spending.
The consumer slows down. The affluent customer is driving a lot of spending, and growth, we see in the numbers.
BofA reports that their net charge-offs in the second quarter of 2024 reached $1.5 billion, a 66% increase from $900 millions in the same period in 2023.
Bank also reported that the provision it made for credit losses increased by $400m from Q2 2023’s $1.1bn to last quarter’s $1.5bn.
Goldman Sachs says that its net charges-offs reached $359m last quarter.
The US banking industry has also reported massive losses as a result of bad debt.
JPMorgan Chase reported a $2.2 billion loss due to non-collected accounts in the last quarter, while Wells Fargo had $1.3 billion of net charges in the second quarter this year.
Federal Reserve Bank of New York, (FDNY), raised alarm in May about the increasing levels of US household credit. FDNY Center for Microeconomic Data reports that US household debt topped $17.69 trillion during Q1 this year. This is a 640 billion dollar increase on a yearly basis.
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The post Bank of America Citigroup Goldman Sachs report $4,139,000,000 Losses as US Lenders Experience Major Increase in Unrecoverable Debt will be updated with any new developments.
