Jane Fraser, CEO, Citigroup, speaks on the twenty eighth annual Milken Institute World Convention on the Beverly Hilton in Beverly Hills, California on Might 5, 2025.
Patrick T. Fallon | AFP | Getty Photos
Citigroup reported second-quarter outcomes on Tuesday that topped analyst expectations, serving to to spice up a inventory that has already been outperforming the broader market.
Citigroup’s internet revenue of $4.02 billion climbed 25% from the identical quarter final 12 months. Here is how the financial institution’s outcomes in comparison with Wall Avenue expectations:
- Earnings: $1.96 per share vs $1.60 per estimate from LSEG
- Income: $21.67 billion vs $20.98 billion estimate
Shares of Citigroup rose greater than 3% after the report.
The agency noticed income progress throughout its enterprise teams. Citigroup reported whole markets income that was increased by 16% versus the identical interval a 12 months in the past. Fairness income alone rose 6% 12 months over 12 months, and was up 7% from the primary quarter.
Banking was one other brilliant spot, with income up 18% over the second quarter of 2024, even with losses on mortgage hedges.
“We’re bettering the efficiency of every of our companies to take share and drive increased returns,” CEO Jane Fraser stated in a press release. “With income up 8%, Providers continues to indicate why this high-return enterprise is our crown jewel. Markets had its greatest second quarter efficiency since 2020 with a report second quarter for Equities. Banking revenues had been up 18% and we proceed to be on the middle of among the most vital transactions.”
The most recent outcomes reported Tuesday included the turbulent market interval that started in early April. That sort of volatility might help enhance earnings in fairness and stuck revenue buying and selling at main banks, together with Citigroup.
“Volatility goes to, I think, be a characteristic not a bug of the brand new world order, and we’ll profit from that,” Fraser stated on an analyst name Tuesday.
Extra negatively, Citigroup reported 16% progress in price of credit score, fueled partly by a better internet construct within the allowance for credit score losses. The financial institution cited “deterioration” within the financial outlook relative to final 12 months as a motive for the transfer.
Fraser added that the general setting has “confirmed to be extra resilient than anticipated,” however the financial institution is seeing slowdowns in hiring and capital expenditures by purchasers.
The CEO additionally stated the financial institution has made “vital progress” in its transformation plan. Citigroup has been pulling again from worldwide markets, and the financial institution introduced layoffs in China in June. Nonetheless, Fraser stated there was no replace in regards to the timeline for an preliminary public providing of the financial institution’s Mexico unit.
Wanting ahead, Citigroup stated in a presentation revealed Tuesday that it now expects $84 billion in income for the complete 12 months, the excessive finish of the financial institution’s earlier steerage. Fraser additionally indicated the financial institution is wanting into using stablecoins.
The June quarter outcomes come after a primary half when Citigroup’s inventory outperformed the broader market and several other of its common financial institution friends. As of Monday’s shut, Citi shares had been forward 24% 12 months thus far, and up 38% since April 14, the day earlier than the financial institution’s first-quarter earnings report.
Citigroup raised its quarterly dividend to 60 cents per share from 56 cents earlier this month, after the most recent Federal Reserve stress exams.
