Citigroup first-quarter earnings top Wall Street expectations
By Josh White
Date: Tuesday 15 Apr 2025
(Sharecast News) - Citigroup reported first-quarter earnings that exceeded expectations on Tuesday, bolstered by a rebound in trading activity and stronger results across all five of its business units.
The bank posted net income of $4.1bn, or $1.96 per share, up 21% from $3.4bn, or $1.58 per share, in the same period last year.
Revenue rose 3% to $21.6bn, outperforming analyst forecasts of $21.29bn.
Chief executive officer Jane Fraser credited the results to broad-based operating strength and discipline on costs.
"With net income of $4.1bn, we delivered a strong quarter, marked by continued momentum, positive operating leverage and improved returns in each of our five businesses," she said.
Fraser highlighted that Citi's services division posted its best first-quarter revenue in a decade, while markets revenue rose 12% amid strong client activity, and merger and acquisition revenue nearly doubled year-on-year.
The solid performance came amid broader concerns about the impact of escalating trade tensions.
US president Donald Trump's tariff policy had fuelled volatility and raised fears of a slowdown, prompting Citigroup's own strategists to cut their S&P 500 earnings forecast for the year.
Nevertheless, Fraser offered a confident view of the long-term US outlook.
"When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the US will still be the world's leading economy, and the dollar will remain the reserve currency."
The bank's trading desks helped drive performance, with both fixed income and equities units beating expectations.
Citigroup's results followed strong earnings from peers including JPMorgan Chase and Morgan Stanley, which also benefited from a surge in equities trading due to market volatility linked to the uncertain trade environment.
Citigroup returned around $2.8bn to shareholders through dividends and buybacks during the quarter, with a payout ratio of 74%.
The firm's Common Equity Tier 1 (CET1) capital ratio stood at 13.4%, while return on tangible common equity rose to 9.1%.
Book value per share was $103.90.
Despite the upbeat quarter, Citigroup shares were down around 10% in the year to date amid a broader selloff in bank stocks.
While a recession was not the base case, Citigroup, like Morgan Stanley, warned that the tariff dispute could weigh on earnings and market sentiment in the months ahead.
Fraser emphasised the firm's preparedness to navigate shifting conditions.
"We remain intently focused on executing our strategy, which is based on a diversified business mix and will perform in a wide variety of macro scenarios," she said.
At 0835 EDT (1335 BST), shares in Citigroup were up 1.23% in premarket trading in New York, at $64.00.
Reporting by Josh White for Sharecast.com.
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