Citigroup's Loan Income Boosts Earnings, Shares Soar

Citigroup's Q1 profit beat expectations as net interest income rose 23% to $13.3 billion, but the bank also set aside $241 million to cover potential loan losses. CEO Jane Fraser said the bank is preparing for a shallow recession later this year, and expects more clients to fall behind on payments in the coming quarters. Citigroup has already tightened lending standards for consumers and is monitoring risks in the banking sector, especially regional banks, leveraged lending, and commercial real estate. The bank saw a pickup in deposits in March coming mainly from corporations, and expressed cautious optimism about a recovery in investment banking.