Citi CEO Jane Fraser said, “With net income of $4.1 billion we delivered a strong quarter, marked by continued momentum, positive operating leverage and improved returns in each of our five businesses. Services recorded its best first quarter revenue in a decade. Markets had a good first quarter with revenue up 12% driven by strong client activity and monetization. Banking was up 12% with M&A revenue nearly double from what it was last year. Wealth revenues increased 24% with progress across all three client segments. USPB was up 2%, driven mainly by growth in Branded Cards, and also saw improved returns. We returned $2.8 billion in capital to our shareholders including $1.75 billion of buybacks as part of our $20 billion plan. Citigroup reported net income for the first quarter 2025 of $4.1 billion on revenues of $21.6 billion. This compares to net income of $3.4 billion. Revenues increased 3%(5) from the prior-year period, on a reported basis, driven by growth in each of Citi’s five interconnected businesses, largely offset by a decline in All Other. Excluding divestiture-related impacts in both periods(6), revenues were also up 3%. Net income was $4.1 billion, compared to $3.4 billion in the prior-year period, driven by lower expenses and the higher revenues, partially offset by higher cost of credit.
1Q25 Firmwide Key Highlights
- $21.6B of revenues, up 3% YoY
- Record revenues in USPB and Wealth
- Expenses of $13.4B, efficiency ratio of 62% improved by ~490 bps YoY
- Positive operating leverage for Citi and across all businesses
- RoTCE of 9.1% up ~150 bps YoY
- CET1 Capital Ratio(2) of 13.4%, ~130 bps above current regulatory minimum
- Returned ~$2.8 billion to common shareholders through buybacks & dividends
- Technology and Transformation progress in the first quarter 2025
Business Achievements:
- Services: Citi Payments Express live in 19 countries, with increased volumes by 10x since 4Q24
- Markets: continued to support the growth of Equities and Prime by progressing our platform’s strengths across Execution and Financing
- Wealth: signed a partnership with Palantir to modernize how we leverage data and improve client experience and operational agility through enhanced processes such as onboarding, account management, and real-time insights
- USPB: improved customer support and self-service rates through Gen AI pilot for better call routing and pre-defined customer responses; launched Flex Pay on Apple Pay, which enables eligible Citi cardmembers to pay over time when checking out with Apple Pay online or in apps
- Cross LOBs: enhanced institutional client planning tool for ~2K relationship managers, enabling deeper client insights and analysis
Modernizing Our Bank and Improving Risk and Controls
- Continued to optimize, modernize and simplify the bank by retiring or replacing 130 applications in 1Q25
- Significantly expanded adoption of Gen AI tools, increasing efficiency and productivity across Cit: 385K utilizations of two enterprise-wide tools (document intelligence and virtual assistant); Completed ~220K automated code reviews in our Gen AI developer tool, considerably increasing coding capacity
- Automating high priority manual reconciliations, supporting Services, Markets and Banking operations, generating efficiencies and improving risk management capabilities
- Using Gen AI to enhance detection of unauthorized trading activity to improve FX trade surveillance