Citigroup (C, Financial) posted impressive Q2 2025 results, surpassing EPS and revenue forecasts. The company increased its FY25 revenue guidance to approximately $84 billion from the previous $83.1-$84.1 billion. A 29% year-over-year EPS growth was driven by a 12% increase in net interest income, supported by 5% loan growth to $725.3 billion and disciplined cost management, with operating expenses rising just 2% to $13.6 billion. This reflects positive operating leverage across all five business segments for the fourth consecutive quarter.
- Markets Segment: Revenue soared 16% year-over-year to $5.9 billion, driven by strong performance in Fixed Income and Equity markets. Fixed Income, Currencies, and Commodities (FICC) sales and trading revenue jumped 20% to $4.3 billion, fueled by increased client activity amid volatile U.S. equities markets. Equity markets revenue rose 6% to $1.61 billion, thanks to robust performance in derivatives and prime brokerage.
- Banking Segment: Revenue increased 18% to $1.92 billion, surpassing estimates of $1.65 billion. Investment banking revenue rose 15% to $981 million, driven by a 52% surge in advisory revenue from heightened mergers and acquisitions activity and a rebound in equity capital markets, benefiting from a revival in IPOs.
- U.S. Personal Banking (USPB) Segment: Revenue grew 6% to $5.12 billion, slightly below estimates. Branded Cards revenue increased 11% to approximately $2.8 billion, fueled by a 9% rise in card spend volumes and a 15% increase in average loans. Retail Banking revenue rose 16% to about $700 million, driven by higher deposit spreads through strategic pricing adjustments.
- Wealth Segment: Revenue surged 20% to $2.2 billion, marking it as the fastest-growing segment in Q2. This growth was driven by an organic increase in client investment balances and strong new client acquisition in segments like Wealth at Work and the Private Bank, maintaining a 29% EBT margin.
Citigroup’s Q2 earnings reflect robust growth across all segments, showcasing a significant turnaround from past challenges. With strong revenue gains in Markets, Banking, USPB, and Wealth, and tight control over operating expenses, Citigroup is demonstrating strong operational performance.
