Citigroup Sees 5% Card Spending Rise as Big Banks Post 12% Profit Gain
Citigroup reported a 5% year-over-year increase in US credit card spending in Q1 while combined bank profits across the six largest institutions rose 12% to $47.3 billion. Citigroup also saw a decline in 90-day delinquencies as consumer spending held firm despite rising gas prices.
1. Sector-wide Profit Increase
Combined profits of the six largest US banks, including Citigroup, rose 12% year-over-year to $47.3 billion in the first quarter, driven by strong trading revenues and sustained lending activity amid robust client engagement.
2. Citigroup's Credit Card Activity
Citigroup’s US credit card spending climbed 5% in Q1 from a year earlier, reflecting elevated consumer demand and higher transaction volumes; peer banks reported similar gains, with combined debit and credit card spending up as much as 9%.
3. Delinquency and Risk Outlook
Citigroup recorded a decrease in 90-day credit card delinquencies and set aside lower credit provisions, even as executives cautioned that geopolitical tensions, energy price volatility and high asset valuations could pose future challenges.