Jane Fraser, CEO, Citigroup, speaks at the 28th annual Milken Institute Global Conference at the Beverly Hilton in Beverly Hills, California on May 5, 2025.
Patrick T. Fallon | AFP | Getty Images
Citigroup reported second-quarter results on Tuesday that topped analyst expectations, helping to boost a stock that has already been outperforming the broader market.
Citigroup’s net income of $4.02 billion climbed 25% from the same quarter last year. Here’s how the bank’s results compared to Wall Street expectations:
- Earnings: $1.96 per share vs $1.60 per estimate from LSEG
- Revenue: $21.67 billion vs $20.98 billion estimate
Shares of Citigroup rose more than 3% after the report.
The firm saw revenue growth across its business groups. Citigroup reported total markets revenue that was higher by 16% versus the same period a year ago. Equity revenue alone rose 6% year over year, and was up 7% from the first quarter.
Banking was another bright spot, with revenue up 18% over the second quarter of 2024, even with losses on loan hedges.
“We’re improving the performance of each of our businesses to take share and drive higher returns,” CEO Jane Fraser said in a statement. “With revenue up 8%, Services continues to show why this high-return business is our crown jewel. Markets had its best second quarter performance since 2020 with a record second quarter for Equities. Banking revenues were up 18% and we continue to be at the center of some of the most significant transactions.”
The latest results reported Tuesday included the turbulent market period that began in early April. That type of volatility can help boost profits in equity and fixed income trading at major banks, including Citigroup.
“Volatility is going to, I suspect, be a feature not a bug of the new world order, and we will benefit from that,” Fraser said on an analyst call Tuesday.
More negatively, Citigroup reported 16% growth in cost of credit, fueled in part by a higher net build in the allowance for credit losses. The bank cited “deterioration” in the economic outlook relative to last year as a reason for the move.
Fraser added that the overall environment has “proven to be more resilient than expected,” but the bank is seeing slowdowns in hiring and capital expenditures by clients.
The CEO also said the bank has made “significant progress” in its transformation plan. Citigroup has been pulling back from international markets, and the bank announced layoffs in China in June. However, Fraser said there was no update about the timeline for an initial public offering of the bank’s Mexico unit.
Looking forward, Citigroup said in a presentation published Tuesday that it now expects $84 billion in revenue for the full year, the high end of the bank’s previous guidance. Fraser also indicated the bank is looking into the use of stablecoins.
The June quarter results come after a first half when Citigroup’s stock outperformed the broader market and several of its universal bank peers. As of Monday’s close, Citi shares were ahead 24% year to date, and up 38% since April 14, the day before the bank’s first-quarter earnings report.
Citigroup raised its quarterly dividend to 60 cents per share from 56 cents earlier this month, after the latest Federal Reserve stress tests.