Citigroup reported a steep decline in first-quarter profits Wednesday as it set aside around $7 billion in case of loan defaults due to coronavirus shutdown.

Net profit came in at $2.5 billion for the quarter ending March 31, down 46 percent from the year-ago period. Revenues rose 12 percent to $20.7 billion.

Citigroup's results benefited from strong increases in fixed income and equity trading volume during a volatile period in financial markets.

Citigroup reported a steep decline in first-quarter profits Wednesday as it set aside around $7 billion in case of loan defaults due to coronavirus shutdown
Citigroup reported a steep decline in first-quarter profits Wednesday as it set aside around $7 billion in case of loan defaults due to coronavirus shutdown GETTY IMAGES NORTH AMERICA / JUSTIN SULLIVAN

But the bank joined other financial heavyweights, including JPMorgan Chase and Bank of America, in setting aside large provisions in case of defaults following sweeping government-mandated business shutdowns to try to limit the spread of the coronavirus.

"COVID-19 is a public health crisis with severe economic ramifications," said Citigroup Chief Executive Michael Corbat.

"While no one knows the severity or the longevity of the virus' impact on the global economy, we have the resources we need to serve our clients without jeopardizing our safety and soundness."

Shares fell 3.6 percent to $43.75 in pre-market trading.

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