Citigroup Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.53%.
Did C Beat Earnings? Q1 2025 Results
Citigroup kicked off 2025 with a stronger-than-expected first quarter, posting earnings per share of $1.96 against a consensus estimate of $1.85, a beat of 5.69%, while revenue of $21.60 billion edged past the $21.29 billion estimate by 1.45%. Net income climbed 21% year-over-year to $4.06 billion, even as reported revenue reflected a 50.6% decline versus the prior-year period. The standout driver was a broad-based surge across trading and advisory businesses, with Markets revenue rising 12%, equity markets jumping 23% on derivatives volatility, and Banking revenues climbing 12% as M&A advisory fees nearly doubled. Operating expenses fell 5% to $13.43 billion, amplifying the earnings lift. CEO Jane Fraser highlighted momentum across all five business segments, with Services recording its best first-quarter revenue in a decade and Wealth revenues surging 24%. The bank's ongoing AI integration and data modernization efforts are expected to further support efficiency gains. Looking ahead, Citigroup flagged tariff-related risks and a deteriorating macroeconomic outlook, building credit reserves accordingly, while Fraser expressed confidence in the firm's diversified model navigating the uncertainty ahead.
- Services recorded best first quarter revenue in a decade
- Markets revenue up 12% driven by strong client activity and monetization
- Equity markets up 23% on increased market volatility and higher client activity
- Advisory fees surged 84% with wallet share gains across numerous sectors
- Wealth revenues increased 24% driven by growth in deposit spreads and investment fee revenues
- Branded Cards revenue up 9% on interest-earning balance growth of 8%
- Operating expenses down 5% from smaller FDIC special assessment, absence of restructuring charge, and organizational simplification savings
- Net interest income increased 4% across the firm
- Return on average tangible common equity improved to 9.1% from 7.6% YoY
“With net income of $4.1 billion we delivered a strong quarter, marked by continued momentum, positive operating leverage and improved returns in each of our five businesses. Services recorded its best first quarter revenue in a decade. Markets had a good first quarter with revenue up 12% driven by strong client activity and monetization. Banking was up 12% with M&A revenue nearly double from what it was last year. Wealth revenues increased 24% with progress across all three client segments. USPB was up 2%, driven mainly by growth in Branded Cards, and also saw improved returns. We returned $2.8 billion in capital to our shareholders including $1.75 billion of buybacks as part of our $20 billion plan.”
Citigroup CEO, on the earnings call
Forward Guidance & Outlook
Citigroup's forward-looking commentary highlighted macroeconomic uncertainty, including risks from tariffs, potential reciprocal trade actions, market volatility, inflation resurgence, and slowing economic growth or recession. The company built credit reserves reflecting deterioration in the macroeconomic outlook. CEO Jane Fraser expressed confidence in the diversified business model's ability to perform across a wide variety of macro scenarios, emphasizing that the U.S. will remain the world's leading economy and the dollar the reserve currency. The company continues executing its simplification and transformation strategy focused on expense reduction and enhanced business performance.
C YoY Financials
C Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.