Citigroup CEO Jane Fraser Bets US Will ‘Still Be World’s Leading Economy’ And Dollar ‘The Reserve Currency’ After Trade Uncertainty Settles

Citigroup Inc. (NYSE:C) reported on Tuesday that the first-quarter fiscal 2025 revenue growth was 3% year-over-year and was $21.6 billion, beating the analyst consensus of $21.29 billion. This growth was driven by each of the five interconnected businesses.

Excluding divestiture-related impacts in both periods, revenues also went up 3%.

The U.S. banking giant reported earnings per share of $1.96, increased from $1.58 a year ago, beating the consensus of $1.84.

Also Read: JPMorgan, Wells Fargo, Morgan Stanley, BNY Mellon Will ‘Strike A Cautious Tone’: Analysts

Net income was $4.1 billion, compared to $3.4 billion in the prior-year period, driven by lower expenses and higher revenues, partially offset by higher cost of credit.

Net interest income increased by 4%, driven by U.S. Personal Banking (USPB), Markets, Wealth, and Services. Non-interest revenue increased by 1%, driven by Markets, Banking, and Wealth.

Operating expenses fell 5% to $13.43 billion, and the efficiency ratio of 62% improved by ~490 bps year over year.

Lower operating expenses were driven by a smaller FDIC special assessment, the absence of a restructuring charge, and lower compensation expenses.

Return on average tangible common equity (RoTCE) reached 9.1%, up ~150 bps, and the Common Equity Tier 1 (CET1) Capital ratio was 13.4% for the quarter, ~130 bps above the current regulatory minimum.

The cost of credit, $2.7 billion, increased by 15%, driven by a higher net build in the allowance for credit losses (ACL) related to uncertainty and deterioration in the macroeconomic outlook in the current quarter relative to the prior-year period and higher net credit losses in the card portfolios in USPB.

Services revenues of $4.9 billion were up 3%, driven by Treasury and Trade Solutions growth. Markets revenues of $6.0 billion increased 12%, driven by growth in Fixed Income and Equity markets revenues.

Equity markets revenues of $1.5 billion increased 23%, primarily driven by equity derivatives, on increased market volatility and higher client activity, and momentum in prime services, with prime balances up approximately 16%.

Banking revenues of $2.0 billion increased 12%, driven by growth in Investment Banking and the impact of mark-to-market on loan hedges, partially offset by a decline in Corporate Lending, excluding mark-to-market on loan hedges.

Investment Banking revenues of $1.0 billion increased by 12%, driven by an increase in Investment Banking fees of 14%, driven by growth in Advisory, partially offset by declines in Equity Capital Markets and Debt Capital Markets.