Consumers Shift Spending to Pay for Basic Staples, Citi CFO Says

Credit losses are rising as US consumers shift spending to basic needs and away from purchases that aren’t vital, according to Citigroup Inc. Chief Financial Officer Mark Mason.

“The nature of spend is evolving,” Mason said at a conference hosted by Barclays Plc Monday. “It’s going from discretionary to a more staple-type spend.”

Net credit losses have climbed in Citi’s large cards business, and payment rates have started to “come down a bit,” he said, adding that it’s within ranges previously discussed by the firm. Meanwhile, more affluent customers are driving much of the spending growth.

A Citibank branch in New York

Photographer: Michael Nagle/Bloomberg

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