Citigroup Reports $4.064 Billion Net Income in Q1 2025, Driven by Revenue Growth

Citigroup Inc. reported net income of $4.064 billion for the first quarter of 2025, a 7% increase compared to the $3.371 billion reported in the same period of 2024. This increase was driven by higher revenues and lower expenses. Total revenues, net of interest expense, reached $21.596 billion, a 3% increase year-over-year, primarily due to higher net interest income in the TTS and Securities Services segments. Net interest income increased by 5% year-over-year, while non-interest revenue declined by 4%.

The Services segment saw a 3% increase in revenues to $4.889 billion, driven by a 5% rise in net interest income, partially offset by a 4% decrease in non-interest revenue. The increase in net interest income was attributed to higher deposit spreads and increased deposit and loan balances. The decrease in non-interest revenue resulted from higher revenue sharing with Banking—Corporate Lending, FX translation impacts, and the absence of certain episodic fees seen in the prior year. Operating expenses in Services decreased by 3%, primarily due to lower deposit insurance, severance, and legal expenses.

Markets segment revenues increased by 12% to $5.986 billion, resulting in a 27% increase in net income to $1.795 billion. This growth was driven by higher revenues in both Fixed Income and Equity Markets. Fixed Income Markets revenues increased by 8%, while Equity Markets revenues saw a 23% increase. Expenses in Markets increased by 2%, primarily due to higher volume and revenue-related expenses. The Banking segment reported net income of $543 million, compared to $524 million in the first quarter of 2024, reflecting a 12% increase in revenues and a 12% decrease in expenses.

The Wealth segment's net income increased to $284 million, compared to $175 million in the first quarter of 2024, driven by a 24% increase in revenues. This revenue growth was attributed to increases across Citigold, Private Bank, and Wealth at Work, with net interest income rising by 30% and non-interest revenue increasing by 16%. Client balances increased by 7%, driven by a 16% increase in client investment assets. USPB reported net income of $745 million, compared to $347 million in the first quarter of 2024, primarily due to lower cost of credit and higher revenues. Revenues increased by 2%, driven by higher net interest income, partially offset by lower non-interest revenue.

Citigroup's Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach was 13.4% as of March 31, 2025, and its Supplementary Leverage ratio was 5.8%. The company returned $2.8 billion of capital to common shareholders through dividends and share repurchases during the first quarter of 2025. Citi plans to maintain a quarterly common dividend of $0.56 per share, subject to financial and macroeconomic conditions and Board approval. The company also noted several forward-looking statements regarding its planned IPO of Mexico Consumer/SBMM (Banamex) and the potential impacts of various macroeconomic and geopolitical factors on its future performance.