Citi to Set Aside More Money for Potential Losses on Loans

Citigroup Inc. is set to put aside hundreds of millions of dollars more than it did last quarter to account for potential losses on loans, an early sign that the biggest US banks may be bracing for deteriorating economic health.

“Given the macro environment, etc., cost of credit compared to last quarter, we expect to be up a few hundred million,” Vis Raghavan, Citigroup’s head of banking, said Tuesday at a conference hosted by Morgan Stanley. He added the numbers were driven by the bank’s credit reserve build, a figure that can change frequently depending on a company’s outlook.