Citigroup first-quarter results beat estimates amid equity trading strength

Published 15/04/2025, 13:24
Updated 15/04/2025, 13:32
© Reuters.

Investing.com - Citigroup (NYSE:C) has reported higher-than-anticipated first-quarter results, as it followed a trend set by other Wall Street lenders in logging a sharp, volatility-driven uptick in equities trading revenue.

In a statement, CEO Jane Fraser also unveiled a relatively sanguine outlook for the U.S. economy, after other industry executives warned that President Donald Trump’s aggressive tariff policy could dent growth, depress earnings, and make it more difficult for businesses to plan for the future.

"When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency," Fraser said.

Still, she added that Citi is attempting to help clients navigate "an uncertain environment."

Quarterly equity market revenues soared by 23% from the year-ago period to $1.5 billion, topping estimates, as the unit was bolstered by increased market volatility and higher client activity. Fears around the impact of Trump’s levies -- including concerns from many economists that the changes could cause the U.S. to slide into a recession -- have fueled ructions in global financial markets in recent weeks. Citi’s equity market performance trailed those notched by rivals like JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS), but was ahead of Bank of America.

Fixed income trading revenues also increased by 8% to $4.5 billion. Analysts had seen the figure at $4.36 billion.

Total (EPA:TTEF) first-quarter revenues, net of interest expense, rose by 3% to $21.60 billion, versus Bloomberg consensus expectations of $21.28 billion.

Net income increased to $4.1 billion, up from $3.4 billion in the prior-year timeframe, thanks to lower expenses and higher revenues that helped offset a rise in provisions for credit losses due to a "deterioration in the macroeconomic outlook." This translated to earnings per share of $1.96, which was above projections of $1.84.

Shares in Citigroup were higher in premarket U.S. trading on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.