New York – Citigroup exceeded analysts’ expectations in the first quarter of 2025, benefiting from higher-than-anticipated revenues in both fixed-income and equities trading, demonstrating the bank’s resilience in a turbulent market.
The bank posted earnings of $1.96 per share, surpassing the $1.85 per share forecast from LSEG. Revenue for the quarter rose to $21.60 billion, exceeding the expected $21.29 billion. Net income jumped 21% year-on-year, reaching $4.1 billion, as Citigroup experienced strong client activity and maintained disciplined cost control.
“We’re continuing to earn credibility with investors,” remarked Jane Fraser, CEO of Citigroup. “Our diversified business model allows us to perform well across a broad range of macroeconomic environments.”
Strong Performance from Trading Desks
In this quarter, Citigroup’s trading desks performed well:
- Fixed-income trading saw a growth of 8%, bringing in $4.5 billion, boosted by higher activity in currency and government bond markets, surpassing the $4.33 billion forecast.
- Equities trading surged 23%, reaching $1.5 billion, above the projected $1.4 billion, as market volatility and increased client transactions drove stronger results.
These gains were consistent with the strong performance of other major banks in the first quarter, including JPMorgan Chase, Goldman Sachs, and Morgan Stanley, all of which benefitted from heightened market activity.
Navigating Economic Shifts
Fraser also addressed broader concerns regarding the U.S. economy, especially in light of ongoing trade policy changes under President Donald Trump. With efforts underway to reshape international trade agreements, investors have shown caution about potential economic risks.
“The U.S. will maintain its global leadership position and the dollar will remain the global reserve currency as we move beyond longstanding imbalances in trade and other structural changes.” said Fraser.” Fraser stated.
Market Reaction and Future Outlook
Citigroup’s shares rose 3% following the earnings announcement. However, the stock is still down 10% year-to-date, as the broader banking sector remains under pressure from President Trump’s 25% tariffs on imports, which have raised concerns about a potential slowdown in economic growth.
Despite these challenges, the bank’s strong performance this quarter underscores the strength of its global markets division and its capacity to adapt to shifting economic conditions. Citigroup’s focus on diversified growth, risk management, and efficient capital use positions it well for the remainder of the year, even as uncertainties around trade and politics persist.
