Citigroup Inc.’s C first-quarter 2025 adjusted net income per share of $1.96 surpassed the Zacks Consensus Estimate by 6.5%. The company has reported adjusted net income per share of $1.58 in the year-ago period.

The company's results benefitted from an increases in net interest income (NII) and non-interest revenues, along with a decline in expenses. Citigroup also registered a year-over-year increase of 12% in investment banking (IB) revenues, driven by strength in advisory fees.

Net income (GAAP basis) in the quarter was $4.1 billion, up 21% from the prior-year quarter.

C’s Revenues Increase, Expenses Decrease

Revenues, net of interest expenses, moved up 3% year over year to $21.6 billion in the first quarter of 2025. The top line surpassed the Zacks Consensus Estimate by 1.9%.
 
NII rose 4% year over year to $14 billion, whereas non-interest revenues increased 1% to $7.6 billion.

Citigroup’s operating expenses declined 5% year over year to $13.4 billion. This decrease in expenses was primarily due to reduced FDIC special assessment expenses, the absence of a restructuring charge and lower compensation expenses.

Citigroup’s Segmental Performance

In the Services segment, total revenues, net of interest expenses, were $4.9 billion in the reported quarter, up 3% year over year. The increase primarily reflects growth in Treasury and Trade Solutions, which continued to gain market share.

The Markets segment’s revenues increased 12% year over year to $5.9 billion, driven by growth in Fixed Income and Equity markets revenues.

Banking revenues of $1.2 billion moved up 12% year over year, primarily driven by growth in IB and the impacts of mark-to-market on loan hedge.

U.S. Personal Banking’s revenues were $5.2 billion, up 2% from the prior-year quarter, driven by growth in Branded Cards and Retail Banking, largely offset by a decline in Retail Services.

In the Wealth segment, revenues were $2.1 billion in the reported quarter, rising 24% year over year. The increase was driven by growth across Citigold, the Private Bank and Wealth at Work businesses.

Revenues in the All Other segment declined 39% year over year to $1.4 billion.

C’s Balance Sheet Position

At the end of the first quarter of 2025, the company’s deposits rose 2% from the prior quarter to $1.32 trillion. Its loans increased 1% on a sequential basis to $702 billion.

Citigroup's Credit Quality: Mixed Bag

Total non-accrual loans fell 2% year over year to $2.7 billion. C’s provisions for credit losses and benefits, and claims for the first quarter were $2.72 billion, up 15% from the year-earlier quarter.

Nonetheless, the allowance for credit losses on loans was $18.7 billion, down 2% from the prior-year quarter.

C's Capital Position Weak

At the end of the first quarter, the bank’s Common Equity Tier 1 capital ratio was 13.4%, marginally down from 13.45% in the first quarter of 2024. The company’s supplementary leverage ratio in the reported quarter was 5.8%, marginally down from the prior-year quarter’s 5.84%.

Citigroup's Solid Capital Deployment

In the reported quarter, C returned $2.8 billion to shareholders through common share dividends and share repurchases.

C's 2025 Outlook

Citigroup’s management expects revenues of $83.1-$84.1 billion.

NII (excluding Markets) is projected to rise 2-3% on a year-over-year basis.

Management anticipates expenses to be slightly lower than the $53.4 billion.

Our Viewpoint on Citigroup

The company’s first-quarter 2025 results continued to showcase momentum, positive operating leverage and improved returns in each of the five businesses. Increased NII and non-interest revenues, along with a decline in expenses, look encouraging.

The business transformation initiatives, including its consumer business exits and organizational simplification efforts, will help it in the long run. Focus on growth in the profitable business while eliminating non-viable segments will likely aid results in the long run.

Citigroup Inc. Price, Consensus and EPS Surprise

Citigroup Inc. price-consensus-eps-surprise-chart | Citigroup Inc. Quote

Currently, Citigroup carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates & Expectations of Other Banks

Citizens Financial Group, Inc. CFG is slated to report first-quarter 2025 results on April 16. Over the past seven days, the Zacks Consensus Estimate for CFG’s quarterly earnings per share has been unchanged at 75 cents. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Fifth Third Bancorp FITB is scheduled to release first-quarter 2025 earnings on April 17. The consensus estimate for FITB’s quarterly earnings has been unchanged at 70 cents per share over the past seven days.

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