Citigroup Q2 Revenue And Profit Jumps, CFO Says Recession Risk Has Fallen

Zinger Key PointsCitigroup beat Q2 estimates with $21.7B revenue, up 8% YoY, as all five business units delivered solid growth.EPS jumped to $1.96 vs. $1.52 expected, as net income rose to $4B, boosted by strong markets and banking revenues.PPI and Industrial Production drop Wednesday morning — see how Matt Maley is trading the reaction, live at 6 PM ET.CitigroupCreported on Tuesday that the second-quarter fiscal 2025 revenue growth was 8% year-over-year and was $21.7 billion, beating theanalyst consensus estimateof $20.9 billion. This growth was driven by each of thefive interconnected businesses.Excluding divestiture-related impacts in both periods, revenues were up 9%.The U.S. banking giant reported earnings per share of $1.96, increased from $1.52 a year ago, beating the analyst consensus estimate of $1.63.Also Read:Citi Sees 30% Upside In Circle Stock, Backs USDC Issuer As Key Player In Stablecoin MarketNet income was $4.0 billion, compared to $3.2 billion in the prior-year period, driven by the higher revenues, partially offset by the higher expenses and the higher cost of credit.Net interest income increased by 12%, driven by Markets, Services, U.S. Personal Banking (USPB), Wealth and Banking, partially offset by a decline in All Other. Non-interest revenue decreased 1%, driven by All Other, USPB, Markets and Services, offset by increases in Banking and Wealth.Operating expenses rose 2% to $13.6 billion, and the efficiency ratio of 63% improved by ~340 bps year over year.Return on average tangible common equity (RoTCE) reached 8.7%, up ~150 bps, and the Common Equity Tier 1 (CET1) Capital ratio was 13.5% for the quarter, ~140 bps above the current regulatory requirement.The cost of credit, $2.9 billion, increased by 16%, driven by a higher net build in the allowance for credit losses (ACL) related to deterioration in the macroeconomic outlook in the current quarter relative to the prior-year period and a net ACL build related to transfer risk associated with client activity in Russia, largely offset by a lower net ACL build for volume and lower net credit losses in the card portfolios in USPB.Services revenues of $5.1 billion were up 8%, driven by Treasury and Trade Solutions growth.Markets revenues of $5.9 billion increased 16%, driven by growth in Fixed Income and Equity markets revenues.Equity markets revenues of $1.6 billion increased 6%, driven by momentum in prime services, with record prime balances up approximately 27%, as well as higher client activity and volumes in cash equities and monetization of market activity in derivatives.Banking revenues of $1.9 billion increased 18%, driven by growth in Corporate Lending and Investment Banking.Investment Banking revenues of $981 million increased by 15%, driven by an increase in Investment Banking fees of 13%, reflecting growth in Advisory and Equity Capital Markets (ECM).Wealth revenues of $2.2 billion increased 20%, driven by growth across Citigold, the Private Bank, and Wealth at Work.U.S. Personal Banking (USPB) revenues of $5.1 billion increased by 6%, driven by growth in Branded Cards and Retail Banking.The board approved an increase to the common stock dividend to 60 cents per share, up from 56 cents per share, starting in the third quarter of 2025.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedKey Takeaways from Citigroup CFO Mark Mason’s CallDuring the conference call, Citigroup CFO Mark Mason reportedly indicated an expectation of softer economic activity in the second half of 2025. However, he also noted that the risk of a recession has fallen.Regarding consumer spending, Mason anticipates further cooling as tariffs come through. He also commented that inflation has shown only a limited effect from these tariffs thus far.Looking at wealth management, Mason expressed an expectation for continued momentum in net new assets.OutlookCitigroup expects fiscal 2025 revenue of ~$84 billion (up from theprior forecast ofaround $83.1 billion-$84.1 billion), compared to theanalyst consensus estimateof $83.84 billion. The banking firm reiterated expenses just shy of $53.4 billion.The company expects 2025 Branded Cards NCL range: 3.50%-4.00% and Retail Services NCL range: 5.75%-6.25%.It reiterated ACL build will be a function of the macroeconomic environment and business volumes.Citigroup stock surged over 25% year-to-date (topping the S&P 100 index’s 7%), driven by stronger results in recent quarters as CEO Jane Fraser implemented abroad restructuring todrive profits.Price Action:C stock is trading higher by 1.12% to $88.48 premarket at last check Tuesday.Read Next:Citi To Cut 3,500 Tech Jobs In China In Global Restructuring SpreeLoading...Loading...CCitigroup Inc$88.831.51%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock – anytime.Reveal Full ScoreEdge RankingsMomentum83.07Growth68.00Quality18.30ValueN/APrice TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsDate▲▼ticker▲▼name▲▼Actual EPS▲▼EPS Surprise▲▼Actual Rev▲▼Rev Surprise▲▼Click to see moreEarningsupdatesEarnings CalendarNever Miss Important CatalystsSort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio.Click to JoinPosted In:EarningsNewsGuidanceDividendsTop StoriesMoverswhy it's moving