Citigroup Reports First-Quarter Earnings Beating Expectations on 23% Surge in Stock Trading
NEW YORK — 04/10/2025 — Citigroup (NYSE:C) reported first-quarter results that beat Wall Street expectations, boosted by strong stock trading amid volatile markets. The third-largest U.S. bank reported a 21% increase in net income, reflecting its ability to adapt to a volatile macro environment and global trade policy shifts.
In the first quarter, Citi’s markets revenue rose 12% to $6 billion, beating expectations for a single-digit increase. Notably, equity revenue jumped 23%, as investors adjusted their portfolios in response to factors such as U.S. tariffs and the rise of cheap AI from China.
Profits Rise Strongly, ROTCE Nears Annual Target
Citigroup reported net income of $4.1 billion, or $1.96 per share, beating analysts' forecasts of $1.85, according to a survey by LSEG. ROTCE (return on tangible equity) was 9.1%, up sharply from 7% in the same period last year and approaching the target of 10%-11% set by CEO Jane Fraser for next year.
Speaking after the financial report, CEO Jane Fraser emphasized: "Despite the uncertainties in the world, the US will remain the world's leading economy and the USD will continue to be the core reserve currency." She said Citigroup will continue to support clients in navigating through the current challenging period.
Key Divisions Contribute
Two recently restructured core businesses also showed significant improvement:
The Corporate Banking division, under the leadership of former JPMorgan CEO Viswas Raghavan, recorded a 12% increase in revenue to $2 billion.
The Wealth Management division, led by Andy Sieg – a former Bank of America executive, achieved a record revenue of $2.1 billion, a sharp increase of 24%.
Challenges Remain: Tariffs and Restructuring Strategy
Despite the positive business results, Citigroup still faces significant risks related to the new tariff policy from the Trump administration, which could spark inflation and negatively affect the economic growth outlook. Banking CEOs have warned that this could stifle demand for loans and transactions in the near future.
Citi is still in the process of a comprehensive restructuring to streamline operations and better comply with legal requirements. The bank said it is ramping up IT hiring and reducing its reliance on outside contractors, a move aimed at addressing gaps in data management and regulatory compliance.
Is Citigroup a Potential Investment Opportunity?
C stock is down 10.2% year-to-date through Monday, but the positive reaction to its earnings report suggests investor confidence remains. With its improving financials and clear long-term strategy, is Citigroup undervalued?
Investing.com’s investment analysis engine ProPicks AI is closely tracking C stock and other overlooked stocks with strong growth potential. Nine of them have risen more than 25% in the first few months of the year.