12:59 PM EDT, 05/01/2024 (MT Newswires) -- (Adds detail throughout)

Citigroup's ( C ) loan book could suffer billions of dollars of additional losses if global efforts to combat climate change gain speed, Reuters said on Wednesday, citing a confidential analysis prepared by the bank that it reviewed.

The risk-management study completed last summer for the Federal Reserve reportedly concludes the bank could take a $10.3-billion hit on loans over 10 years if efforts to cut greenhouse gas emissions to net zero by 2050 are successful. The loss for Citi's $730 billion wholesale loan book would be around $7.1 billion if net zero goals are extended past 2050, Reuters said, citing the report.

Five other large US banks produced similar assessments for the Fed, which had been expected to compile a broader analysis of potential economic impacts using data from those studies, Reuters said. That report has not been published and it also is not known how much of its primary analysis Citi included in its final submission to the central bank.

Messages to Citigroup ( C ) from MT Newswires seeking comment and more information about the study results were not immediately returned on Wednesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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