Citigroup posts profit beat on strong trading, banking unit performance

Published 15/07/2025, 13:32
© Reuters

Investing.com -- Citigroup posted stronger-than-expected second-quarter earnings, boosted by a surge in trading revenue and a pickup in dealmaking activity.

The bank reported earnings of $1.96 per share, beating the average analyst estimate of $1.61.

Revenue rose 4% to $21.67 billion, also ahead of expectations of $20.94 billion.

Citigroup’s trading desks benefited from market volatility sparked by changing interest rate expectations and trade policy headlines, including new tariffs announced by President Trump in April.

Equities revenue hit a record for the second quarter, while total markets revenue was the highest since 2020.

Banking revenue climbed 18% on improved deal activity, while wealth management rose 20% on broad-based strength. Citigroup (NYSE:C) also cited growth in U.S. branded cards and higher deposit spreads in retail banking.

CEO Jane Fraser called Services a “crown jewel” as revenue from that segment climbed 8%.

The bank returned $3 billion to shareholders during the quarter, including $2 billion in share buybacks.

Fraser said the bank’s transformation efforts are progressing, with a focus on automation and AI, and reaffirmed a return-on-tangible-common-equity target of 10–11% for next year.

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