| 2016-10-14 08:04:00|
C 08:04 10/14 10/14/16
Citi reports Q3 cost of credit down 5%
Citigroup's operating expenses decreased 2% to $10.4B in the third quarter 2016, as lower expenses in Citi Holdings and a benefit from foreign exchange translation were partially offset by volume growth and ongoing investments in Citicorp. Citigroup's cost of credit in the third quarter 2016 was $1.7B, a 5% decrease as a lower provision for benefits and claims and a decrease in net credit losses were partially offset by a net loan loss reserve build of $176M, largely driven by North America cards within Citicorp, compared to a net loan loss reserve release of $16M in the prior year period. Citigroup's allowance for loan losses was $12.4B at quarter end, or 1.97% of total loans, compared to $13.6B, or 2.21% of total loans, at the end of the prior year period.