What drove the increase in Citigroup's first-quarter 2025 earnings?

Net income rose to $4.1 billion from $3.4 billion, driven by higher revenues (up 3%) and lower operating expenses (down 5%), partly offset by a 15% increase in cost of credit. Lower average share count also boosted EPS, which grew 24% to $1.96.

Which business segments performed best?

Wealth revenues rose 24% and Markets revenues rose 12%, with Markets net income up 27% to $1.8 billion. Banking revenues rose 12%, led by Investment Banking, where Advisory fees increased 84%. Services revenues grew 3%, and USPB revenues increased 2%.

Is the higher cost of credit a concern for investors?

The increase was largely a reserve build reflecting a weaker macroeconomic outlook, along with higher net credit losses in U.S. cards. Total ACL was about $22.8 billion, and non-accrual loans declined 2% year over year to $2.7 billion, so asset quality metrics remain stable even as provisions rose.

How is Citi's capital position and shareholder return?

The preliminary CET1 ratio was 13.4%, down from 13.6% in the prior quarter, due to dividends, buybacks and higher risk-weighted assets. The SLR was 5.8%. Citi returned about $2.8 billion to shareholders, with a payout ratio of 74%, as part of its $20 billion buyback plan.

What remains a drag on Citigroup's results?

All Other (managed basis) posted a net loss of $870 million, compared with a $477 million loss a year earlier, reflecting lower revenues from wind-down and exit markets, mark-to-market losses in Corporate/Other, and a higher cost of credit. Citi's transformation and divestiture actions are still in progress, so this segment remains a near-term drag.

CITIGROUP INC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 15, 2025. Cited figures are marked; the original filing is the authoritative source.

Citigroup reported first-quarter 2025 net income of $4.1 billion^a, or $1.96 per diluted share, on revenues of $21.6 billion, up 3% year over year on a reported basis.

EPS rose 24% from $1.58^b, helped by lower operating expenses (down 5% to $13.4 billion, including a smaller FDIC special assessment and the absence of a restructuring charge) and a lower share count. Growth was broad-based: Markets revenue rose 12%, Banking rose 12% with Investment Banking fees up 14% and Advisory up 84%, Wealth rose 24%, and Services rose 3% with its best first-quarter revenue in a decade. USPB was up 2%.

The main offset was credit. Total cost of credit rose 15% to $2.7 billion^c, driven by a net reserve build tied to a weaker macroeconomic outlook and higher card net credit losses in USPB. Return on average tangible common equity improved to 9.1% from 7.6%, and book value and tangible book value per share rose 5% and 6% year over year to $103.90 and $91.52.

Capital remained solid, with a preliminary CET1 ratio of 13.4% (down from 13.6% in 4Q24) and an SLR of 5.8%. Citi returned about $2.8 billion^d to shareholders, including $1.75 billion of buybacks under its $20 billion plan. For investors, the quarter shows improving profitability and operating leverage across most businesses, with the main watch items being the cost of credit under a deteriorating macro outlook, the modest decline in CET1, and the continued drag from All Other, which posted a net loss of $870 million as Citi works through its divestitures and wind-downs.

02—Key points

Key Highlights

Net income of $4.1 billion ($1.96 diluted EPS), up 21% in net income and 24% in EPS from $1.58 a year earlier.
Revenues of $21.6 billion, up 3% year over year; Markets (+12%), Banking (+12%) and Wealth (+24%) led growth, while All Other declined 39%.
Operating expenses fell 5% to $13.4 billion, producing positive operating leverage of about 281 bps; the efficiency ratio improved to 62.2%.
Total cost of credit rose 15% to $2.7 billion on a macro-driven ACL build and higher card net credit losses; the reserve-to-funded-loans ratio eased to 2.70%.
RoTCE improved to 9.1% from 7.6%; book value per share reached $103.90 (+5% YoY) and tangible book value per share $91.52 (+6% YoY).
CET1 ratio was a preliminary 13.4% (13.6% in 4Q24), with an SLR of 5.8%; Citi returned about $2.8 billion to shareholders, including $1.75 billion of buybacks.

03—Questions

Frequently Asked Questions

What drove the increase in Citigroup's first-quarter 2025 earnings?
Net income rose to $4.1 billion from $3.4 billion, driven by higher revenues (up 3%) and lower operating expenses (down 5%), partly offset by a 15% increase in cost of credit. Lower average share count also boosted EPS, which grew 24% to $1.96.
Which business segments performed best?
Wealth revenues rose 24% and Markets revenues rose 12%, with Markets net income up 27% to $1.8 billion. Banking revenues rose 12%, led by Investment Banking, where Advisory fees increased 84%. Services revenues grew 3%, and USPB revenues increased 2%.
Is the higher cost of credit a concern for investors?
The increase was largely a reserve build reflecting a weaker macroeconomic outlook, along with higher net credit losses in U.S. cards. Total ACL was about $22.8 billion, and non-accrual loans declined 2% year over year to $2.7 billion, so asset quality metrics remain stable even as provisions rose.
How is Citi's capital position and shareholder return?
The preliminary CET1 ratio was 13.4%, down from 13.6% in the prior quarter, due to dividends, buybacks and higher risk-weighted assets. The SLR was 5.8%. Citi returned about $2.8 billion to shareholders, with a payout ratio of 74%, as part of its $20 billion buyback plan.
What remains a drag on Citigroup's results?
All Other (managed basis) posted a net loss of $870 million, compared with a $477 million loss a year earlier, reflecting lower revenues from wind-down and exit markets, mark-to-market losses in Corporate/Other, and a higher cost of credit. Citi's transformation and divestiture actions are still in progress, so this segment remains a near-term drag.

04—Continue

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