Citigroup, commonly known as Citi, is a global financial giant headquartered in New York City. It is one of the world’s largest financial services corporations. Its history dates back to 1812 when it was founded as the City Bank of New York.
Citigroup operates in over 160 countries, offering a broad range of services that include personal banking, credit cards, wealth management, corporate banking, investment banking, and more.
Citi is organized into several groups to serve its diverse customer base effectively. These include Global Consumer Banking, which focuses on retail clients, Institutional Clients Group, which handles corporate and institutional accounts, and Corporate Treasury and Risk Management groups that ensure smooth operations and safeguard against financial risks. With its global reach and emphasis on innovation, Citi remains a key player in shaping the future of banking and financial solutions worldwide.
Citi Fiscal Q1 2025
Citi (C) released better than expected quarter one 2025 results. Revenues increased by 3% year-over-year, supported by growth across all core businesses. This growth was slightly offset by a decline in other segments.
Highlights:
- Net Income: Net income rose to $4.1 billion ($1.96 per share), up from $3.4 billion ($1.58 per share) in Q1 2024.
- Revenue Growth: Revenues increased by 3% to $21.6 billion, driven by growth across Citi’s core businesses despite a decline in other segments.
- Drivers of Growth: Higher revenues and lower expenses boosted net income, though higher credit costs partially offset gains.
- Returns to Shareholders: Citigroup returned approximately $2.8 billion through dividends and share buybacks, with a payout ratio of 74%.
- Book Value: Book value per share was $103.90, and tangible book value per share stood at $91.52.
Board Statements
Citi CEO Jane Fraser emphasized the company’s strong first-quarter performance, reporting net income of $4.1 billion and highlighting continued momentum, positive operating leverage, and improved returns across all five of Citi’s businesses.
She noted Services achieved its best first-quarter revenue in a decade, while Markets revenue grew by 12%, driven by strong client activity. Banking also saw a 12% increase, with merger and acquisition (M&A) revenue nearly doubling compared to last year. Wealth revenues rose by 24%, showing progress across all client segments.
Additionally, Citi returned $2.8 billion to shareholders, including $1.75 billion in buybacks as part of its $20 billion capital return plan.
Fraser emphasized Citi’s commitment to its diversified business strategy. She noted that this approach is designed to perform well under different macroeconomic conditions. Fraser expressed confidence in the U.S. remaining the world’s leading economy. She also highlighted the dollar’s continued role as the global reserve currency. Lastly, she pointed out Citi’s extensive capabilities and expertise as key strengths in supporting clients through uncertain times.
Impact on the Market
Citigroup’s Q1 2025 earnings report had a positive impact on its stock. The company exceeded expectations with net income of $4.1 billion and earnings per share of $1.96, which boosted investor confidence.
As a result, Citigroup’s stock (C) saw a modest increase in trading. This reflects optimism about its strong performance, revenue growth, and strategic progress across its core businesses.
