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U.S. Banks Relying On Fees And Rainy Day Funds, Not Loans To Turn Profits

CHARLOTTE, North Carolina (Joe Rauch) – Investors looking for loan growth and surging revenues at the biggest U.S. banks, including Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) are likely to be disappointed by first-quarter earn…

CHARLOTTE, North Carolina (Joe Rauch) – Investors looking for loan growth and surging revenues at the biggest U.S. banks, including Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) are likely to be disappointed by first-quarter earnings.

Banks have been generating most of their profits in recent quarters from dipping into money they previously set aside to cover bad loans. Those reserve reductions make sense if credit losses are stabilizing, which seems to be the case.

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