Citigroup (C) opened 2025 with a strong first quarter, showcasing solid momentum across its core businesses, disciplined expense control, and healthy credit and capital positions. Net income climbed 21% year-over-year to $4.1 billion, while diluted EPS rose 24% to $1.96, reflecting broad-based strength and improved profitability. Total revenues reached $21.6 billion, a 3% increase, driven by growth in multiple segments, while operating expenses fell 5% to $13.4 billion, underscoring the company’s tight cost discipline. Return metrics improved notably, with ROCE at 8.0% and RoTCE rising to 9.1%, supported by gains in all five operating businesses.

The Services segment posted its best first-quarter revenue in a decade, growing 3% year-over-year to $4.89 billion, fueled by strength in Treasury and Trade Solutions and improved deposit spreads. Net income rose 7% to $1.6 billion, with a standout RoTCE of 26.2%. The Markets division delivered 12% revenue growth, reaching $6.0 billion, as Fixed Income revenues climbed 8% and Equity revenues surged 23%, driven by robust performance in derivatives and prime services. Net income rose to $1.8 billion, yielding a RoTCE of 14.3%.

Banking revenues increased 12% to $2.0 billion, led by a 14% rise in investment banking fees and a near-doubling of M&A revenue. Although net income rose modestly to $543 million, the segment benefitted from a 12% drop in expenses, resulting in a RoTCE of 10.7%. The Wealth segment saw a strong 24% jump in revenues to $2.1 billion and an impressive 62% increase in net income to $284 million, reflecting growth in client assets and inflows, with a RoTCE of 9.4%. Meanwhile, U.S. Personal Banking delivered modest revenue growth of 2%, bolstered by a 9% rise in Branded Cards and 17% in Retail Banking, despite a decline in Retail Services. The unit posted net income of $745 million and a solid RoTCE of 12.9%.

Credit quality remains broadly stable, with the allowance for credit losses at $22.8 billion and a reserve-to-loan ratio of 2.7%. Net credit losses rose 7% to $2.46 billion, primarily in cards, while the non-accrual loan balance declined 2%. The card portfolio remains strong, with 85% of balances in borrowers with FICO scores of 660 or above, and a healthy reserve-to-loan ratio of 8.2%.

Citigroup’s capital position remains resilient, with a CET1 ratio of 13.4%, a Tier 1 Capital Ratio of 15.1%, and available liquidity resources totaling $960 billion. The bank returned $2.8 billion to shareholders, including $1.75 billion in buybacks, the most since 2022. Liquidity remains robust with a 117% LCR.

CEO Jane Fraser emphasized the strength of the quarter, highlighting positive operating leverage and improved returns across all business segments. CFO Mark Mason noted confidence in reaching the full-year expense target of $53.4 billion and reiterated expectations for 2–3% growth in net interest income (excluding Markets). Management remains committed to its 2026 RoTCE target of 10–11%, supported by ongoing transformation efforts, including investments in technology, automation, and AI.

Looking ahead, Citigroup expects full-year 2025 revenues of $84.1 billion, with expenses slightly below target and a CET1 ratio of 13.1% by year-end. Despite macroeconomic uncertainties, the bank is confident in its reserve levels, operational discipline, and strategy execution.

In summary, Citigroup delivered a strong and balanced Q1 2025, with higher earnings, improved efficiency, and strong segment performance. The firm’s steady credit quality, sound capital base, and focused strategy position it well to navigate market volatility while delivering long-term shareholder value.