Citigroup Inc.’s


C 2.11%

third-quarter profit slumped 34% and the bank set aside billions of dollars to cover potential losses in the coronavirus recession.

Citigroup posted a profit of $3.23 billion, or $1.40 a share, down from $4.91 billion, or $2.07 a share, one year ago. Analysts had expected 91 cents a share, according to FactSet. In the second quarter, profit had fallen to 50 cents a share.

Revenue in the consumer bank fell as people continued to struggle through the recession. The Wall Street operations turned in higher revenue as trading surged in the uncertain market and bankers helped nervous companies raise cash and sell stocks and bonds to ride out the downturn. JPMorgan Chase & Co., which also reported results Tuesday, followed a similar pattern, though its overall profit rose 4%.

Still, the results were better than the second quarter’s and topped analyst expectations. The bank slowed the pace of bulwarking for its loan portfolio, socking away another $2.26 billion of loan-loss provisions in the quarter. It had put more than $7 billion aside in each of the past two quarters.

Citigroup has had its own upheaval as well. Chief Executive Michael Corbat surprised analysts when he announced last month he would retire in February, handing the reins to bank President Jane Fraser. Last week, regulators hit Citigroup with a $400 million fine and orders to take expensive, time-consuming steps to improve its risk management infrastructure. Citigroup’s shares are down 43% this year, underperforming the KBW Nasdaq Bank Index’s 30% drop.

Total revenue fell 7% to $17.3 billion from $18.57 billion. Analysts had expected $17.21 billion.

In the consumer bank, revenue dropped 13% and profit declined 30%.

The investment and corporate banking operations held up better than the consumer bank. Companies continued to raise new money from stocks

This article was written by Suvashree Ghosh and Jeanette Rodrigues. It appeared first on the Bloomberg Terminal. 

India has rolled out a fresh plan to tackle an old problem: the mountain of bad loans held by its banks. With the pandemic forecast to push soured assets to a two-decade high, Prime Minister Narendra Modi is struggling to find cash to support the state-run lenders that hold most of it, and to spur credit to a shrinking economy. Most of the risky debt is concentrated in two sectors — telecoms and utilities — that are vulnerable to the economic slowdown, meaning if they face more trouble, then a massive amount of debt goes bad.

1. What’s the plan?

When the pandemic slammed India early this year, the central bank allowed lenders to freeze loan repayments through Aug. 31. Jefferies estimates that borrowers accounting for 31% of outstanding loans took up the offer initially, though this eased to about 18% by the end of June as businesses gradually reopened and some realized that postponing repayments could end up being costlier. The focus then shifted to a one-time debt restructuring allowed by the Reserve Bank of India for borrowers that were on track to repay before the lockdown. Lenders can grant loan extensions of as long as two years with or without a freeze on repayments. They have until the end of the year to pick which loans to overhaul and until June 2021 to get it done, and will also need to set aside higher provisioning.

2. Why now?

India’s $1.8 trillion financial system entered the pandemic already weakened by about $140 billion of bad loans at its banks and a 2-year-long liquidity crisis at so-called shadow banks. Then business activity collapsed after Modi’s government instituted some of the world’s strictest shelter-at-home

* Bank lending rises 6.4% in September vs 6.7% in August

* Major banks’ lending slows as big firms pay back loans

* Smaller borrowers continue to rely heavily on lending

(Adds details, quotes from BOJ briefing)

By Chris Gallagher and Leika Kihara

TOKYO, Oct 12 – Japanese bank lending rose at a slower
annual pace in September than the previous month as corporate
funding strains caused by the pandemic eased mainly among big
borrowers, central bank data showed on Monday.

But lending by regional banks remained high as smaller firms
continued to borrow heavily to meet immediate funding needs, the
data showed, underscoring the lingering economic pain brought by
the health crisis.

“Big companies that had borrowed huge amounts of funds as a
precaution around spring are now paying back some of the loans
due to easing uncertainty over the pandemic,” a BOJ official
told a briefing.

“But that’s not to say conditions have improved. There are
gaps among industries on how much their profits have recovered.”

Total bank lending rose 6.4% in September from the same
month a year earlier, slower than a 6.7% gain in August, to a
record 573.7 trillion yen ($5.43 trillion), Bank of Japan data
showed.

The pace of lending by major banks slowed to 7.3% in
September from 8.0% in August.

Lending by regional banks rose 5.3%, roughly unchanged from
the previous month’s 5.4% increase. Those by “shinkin” credit
associations, which lend mostly to small firms in regional areas
of Japan, rose 7.8%, the fastest pace on record, the data
showed.

Bank deposits rose 9.0% in September from a year earlier,
the biggest increase on record, as households held back on
spending and instead saved government pay-outs aimed at
cushioning the blow from the pandemic, the official said.

($1 = 105.6300 yen)

(Reporting

The Small Business Administration (SBA) and Treasury Department announced that they are simplifying the loan forgiveness application for Paycheck Protection Program (PPP) loans under $50,000.

“We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds,” Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: Trump says talks on COVID-19 aid are now ‘working out’ | Pelosi shoots down piecemeal approach | Democrats raise questions about Trump tax audits House Democrats to unveil bill to create commission on ‘presidential capacity’ Trump’s new Iran sanctions raise alarm over humanitarian access MORE said Thursday evening, calling for additional simplification through legislation.

The simpler, two-page form businesses can fill out to have their PPP loans forgiven is meant to ease burdens on struggling small businesses.

Small-business groups praised the move.

“We are thrilled about this new SBA and Treasury interim guidance to help small businesses during a time many of them are looking at the last quarter of estimated tax payments and year-end accounting,” said Keith Hall, president and CEO of the National Association for the Self-Employed.

The National Association of Federally-Insured Credit Unions, which had been critical of some early PPP missteps, said it was a “move in the right direction.”

The PPP program, part of a March’s CARES Act, was created in order to help businesses hit by the pandemic keep their doors open and workers on the books as the economy seized up. In all, the program distributed 5.2 million loans worth $525 billion, which Treasury estimated helped save 51 million jobs.

The program debuted to some doubts, as smaller businesses had a harder time securing loans and major chains were found to have received large loans. Many of the large businesses returned the loans after an outcry.

But

Personal loans could help cover unexpected expenses with lower interest rates. (iStock)

Millions of Americans face unprecedented personal finance concerns as the coronavirus pandemic continues to affect unemployment rates months after the first case of COVID-19 was reported in the United States.

The Federal Reserve took steps in March to encourage consumer spending by lowering interest rates to near 0%. Rates have stayed low, and projections suggest that the interest rate will remain near 0% until at least 2023.

If you’re considering a personal loan, now may be a good time to move forward so you can take advantage of low rates. Get started on the application process today.

If you still want to do more research before taking out a personal loan, read on.

What is a personal loan?

Personal loans allow you to borrow funds from a lender to use for any expense. Typically, personal loans may be used for any reason, though some lenders offer specific personal loans, with specific terms, for debt consolidation.

Personal loans differ from mortgage loans and auto loans because you receive the money into your personal bank account and can use the funds to cover a myriad of expenses, from groceries to medical bills, debt payments, vacation, or home repairs. Unlike credit cards or lines of credit, a personal loan has a fixed amount of money you can use.

Credible can help compare personal loan companies (and, hopefully, land you some of the lowest rates for what you’re looking for).

HOW TO GET A PERSONAL LOAN DURING CORONAVIRUS

Pros of a personal loan

There are several benefits of taking out personal loans, including closing cash flow gaps quickly and helping borrowers pay off their debts in a low-risk way.

Here are some reasons you should take out a personal loan: