NEW YORK, April 30 (Reuters) – Citigroup (C.N), opens new tab CEO Jane Fraser told shareholders on Tuesday that U.S. consumers are becoming more cautious with their spending and making smaller purchases.
U.S. borrowers earning lower incomes are increasingly struggling to keep up with loan payments, prompting banks to become more cautious about issuing credit cards and car loans.
“Consumers remain healthy and resilient,” Fraser said at the bank’s annual meeting on Tuesday. “But we are seeing them more cautious in the U.S. and more discerning in their spending patterns.”
Affluent customers account for almost all spending growth, while consumers with lower credit scores are spending less, she said. Meanwhile, borrowers’ delinquency rates have risen above pre-pandemic levels on all loan categories, except mortgages, Fraser added.
While 85% of Citi’s credit card clients are prime borrowers with high credit scores, Fraser said the lender was keeping an eye on delinquencies amongst low-income households, as well as debt levels and unemployment in the months ahead.
Source: REUTER
