Reuters reports Citigroup reported a massive 46% loss in quarterly profit on Wednesday.<br />The news comes as the financial group prepares for losses driven primarily by its credit card business.<br />Analysts warn there is more pain to come as the economic outlook grows increasingly gloomy.<br />Wall Street banks are bracing for a flood of defaults by cash-strapped customers.<br />The COVID-19 pandemic has shuttered businesses, put millions out of work and has put the US on course for a deep recession.<br />Citi’s high exposure to unsecured credit card loans makes the bank more susceptible to hefty writedowns.<br />As unemployment rises, credit card delinquencies tends to rise in lockstep.
