Citigroup's Revenue Soars 8% in Q2 2025

In the second quarter of 2025, Citigroup reported total revenues, net of interest expense, of $21,668 million, marking an 8% increase compared to the second quarter of 2024. Despite this revenue growth, the company's net income for the quarter was $4,019 million, a 1% decrease from the same period last year. Diluted earnings per share (EPS) remained flat at $1.96 compared to the previous quarter, but showed a 29% increase year-over-year. The analyst consensus for revenue was $20,751.74 million and for EPS was $1.61, indicating that Citigroup comfortably beat analyst expectations for both revenue and EPS in Q2 2025.

Segment Performance Highlights

The Services segment recorded total revenues of $5,062 million, a 8% increase year-over-year, driven by a 13% rise in net interest income. Markets revenue increased 16% to $5,879 million, with significant growth in net interest income. Banking revenues also saw an 18% increase, reaching $1,921 million, despite a 40% decline in principal transactions. The Wealth segment delivered strong results, with total revenues increasing by 20% to $2,166 million, primarily due to a 22% increase in net interest income and a 17% rise in non-interest revenue. U.S. Personal Banking (USPB) revenues grew by 6% to $5,119 million, with a 7% increase in net interest income. However, all other segments experienced a 14% decline in revenue.

Key Performance Drivers

Across Services, key drivers included a 15% increase in average loans within Treasury and Trade Solutions (TTS) and a 7% increase in cross-border transaction value. In Markets, average loans grew by 14%, contributing to higher revenues. Banking's performance was bolstered by a 13% increase in investment banking fees, notably a 52% surge in advisory fees and a 25% increase in equity underwriting. The Wealth segment benefited from a 17% increase in client investment assets and a 22% increase in net interest income. USPB saw a 5% increase in average loans, particularly in Branded Cards, which grew by 5% year-over-year.

Management Outlook and Strategic Focus

The company's efficiency ratio improved by 340 basis points year-over-year, reaching 62.7%, indicating better cost management. Citigroup's Common Equity Tier 1 (CET1) Capital ratio stood at 13.5%, reflecting a solid capital position. Management continues to focus on optimizing its portfolio, as evidenced by divestiture-related impacts in "All Other" categories, which included a loss related to the sale of the Poland consumer banking business and separation costs in Mexico. The firm's strategic priorities remain aligned with enhancing operational efficiency and leveraging growth in its core segments.