Core Viewpoint - Citigroup maintains its target price for gold at $3,300 per ounce for the 0-3 month period [1] Group 1 - Citigroup's target price reflects a bullish outlook on gold in the short term [1]

Core Insights - The unofficial start of the earnings season was marked by Citigroup Inc and Wells Fargo & Co reporting second-quarter earnings and revenue beats, with Citigroup benefiting from higher banking and markets revenue, while Wells Fargo lowered its income forecast [1] Group 1: Citigroup Inc - Citigroup's stock increased by 1.1%, trading at $88.55, and is on track for its third gain in the last four sessions after reaching a 17-year high of $90.66 [2] - Year-to-date, Citigroup shares have a 26.6% gain, bouncing off a recent support level at $85 [2] Group 2: Wells Fargo & Co - Wells Fargo's stock was down 4.7%, trading at $79.45, marking its largest single-day percentage loss since March 10 and ending a four-day winning streak [3] - The stock is retreating from a previous attempt to surpass its record peak of $83.94 set on July 3, but the 20-day moving average may help contain these losses; year-to-date, Wells Fargo has a 13.4% gain [3] Group 3: Options Activity - Both Citigroup and Wells Fargo are experiencing unusual options activity, with each attracting double the typical volume for this time [4] - The most popular option for Citigroup is the July 90 call, while for Wells Fargo, it is the July 82 call, with new positions being opened for the latter [4]

Financial Performance - Citigroup reported revenues of $21.7 billion in 2Q25, an increase of 8% year-over-year[5] - Net income for 2Q25 was $4.0 billion, a 25% increase compared to 2Q24[5] - The Return on Tangible Common Equity (RoTCE) for 2Q25 was 8.7%, up from 7.2% in 2Q24[5] - Diluted Earnings Per Share (EPS) for 2Q25 was $1.96, a 29% increase year-over-year[5] Capital and Shareholder Returns - Citigroup's CET1 Capital Ratio was 13.5% in 2Q25[5] - The company returned approximately $3.1 billion to common shareholders through share repurchases and dividends in 2Q25[7] - The Board approved an increase to the common stock dividend to $0.60 per share starting in 3Q25, up from $0.56 per share[7] Business Segment Performance - Services revenues increased to $5.1 billion in 2Q25[9] - Markets revenues increased to $5.9 billion in 2Q25[9] - U S Personal Banking revenues increased to $5.1 billion in 2Q25[9]

[Citigroup Financial Summary](index=2&type=section&id=Citigroup%20Financial%20Summary) [Financial Summary](index=2&type=section&id=Financial%20Summary) In Q2 2025, Citigroup reported a net income of $4.0 billion, or $1.96 per diluted share, on revenues of $21.7 billion, driven by growth across all five core businesses, achieving an 8.7% RoTCE and 13.5% CET1 Capital ratio Q2 2025 Financial Highlights | Metric | Q2 2025 | Change vs. Q1 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | :--- | | **Revenues, net** | $21,668 M | 0% | +8% | | **Net Income** | $4,019 M | -1% | +25% | | **Diluted EPS** | $1.96 | 0% | +29% | | **RoTCE** | 8.7% | (40) bps | +150 bps | | **CET1 Capital Ratio** | 13.5% | +9 bps | (9) bps | | **Book Value per Share** | $106.94 | +3% | +7% | | **Tangible Book Value per Share** | $94.16 | +3% | +8% | - Operating expenses increased by 2% year-over-year to **$13.6 billion**, while provisions for credit losses rose **16% to $2.9 billion**, primarily due to a higher credit reserve build[2](index=2&type=chunk) [Consolidated Statement of Income](index=3&type=section&id=Consolidated%20Statement%20of%20Income) The Q2 2025 Consolidated Statement of Income shows total revenues of $21.7 billion, driven by a 12% increase in Net Interest Income, with operating expenses up 2% and credit loss provisions up 16% Q2 2025 Income Statement Breakdown (vs. Q2 2024) | Item | Q2 2025 (M) | YoY Change | | :--- | :--- | :--- | | Net Interest Income (NII) | $15,175 | +12% | | Total Non-Interest Revenues (NIR) | $6,493 | -1% | | **Total Revenues, net** | **$21,668** | **+8%** | | Total Provisions for Credit Losses | $2,872 | +16% | | Total Operating Expenses | $13,577 | +2% | | **Income from Continuing Operations** | **$4,033** | **+24%** | | **Citigroup's Net Income** | **$4,019** | **+25%** | - The growth in Net Interest Income was a key driver of the overall revenue increase, while Principal Transactions revenue also saw a significant **19% YoY rise to $3.4 billion**[6](index=6&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, Citigroup's total assets grew 9% to $2.62 trillion, supported by increases in loans and deposits, with total stockholders' equity rising 2% to $213.2 billion Balance Sheet Highlights (as of June 30, 2025) | Item | Amount (B) | YoY Change | | :--- | :--- | :--- | | **Total Assets** | $2,622.8 | +9% | | Total Loans, net | $706.2 | +5% | | Total Deposits | $1,357.7 | +6% | | **Total Liabilities** | $2,408.6 | +10% | | **Total Citigroup Stockholders' Equity** | $213.2 | +2% | - The increase in assets was notably driven by a **27% rise in Trading account assets** and a **43% increase in Deposits with banks** compared to the prior year[9](index=9&type=chunk) [Operating Segments](index=5&type=section&id=Operating%20Segments) [Operating Segment Overview](index=5&type=section&id=Operating%20Segment%20Overview) In Q2 2025, all five core operating segments reported year-over-year revenue growth, with Wealth Management and U.S. Personal Banking showing strong bottom-line performance Q2 2025 Segment Performance (vs. Q2 2024) | Segment | Revenues (M) | YoY Change | Income from Cont. Ops (M) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Services | $5,062 | +8% | $1,448 | -3% | | Markets | $5,879 | +16% | $1,749 | +19% | | Banking | $1,921 | +18% | $461 | +13% | | Wealth | $2,166 | +20% | $494 | +135% | | U.S. Personal Banking | $5,119 | +6% | $649 | +436% | [Services](index=6&type=section&id=Services) The Services segment reported Q2 2025 revenues of $5.1 billion, up 8% year-over-year, driven by growth in TTS and Securities Services, with a RoTCE of 23.3% Services Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenues** | $5,062 M | +8% | | - Treasury and Trade Solutions | $3,674 M | +7% | | - Securities Services | $1,388 M | +11% | | **Net Income** | $1,432 M | -3% | | **RoTCE** | 23.3% | -50 bps | - Key business drivers showed positive momentum, with average deposits up **7% YoY to $857 billion** and average loans up **15% YoY to $94 billion**[16](index=16&type=chunk) [Markets](index=7&type=section&id=Markets) Markets delivered a strong quarter with revenues of $5.9 billion, up 16% year-over-year, driven by Fixed Income and Equity markets, resulting in a 13.8% RoTCE Markets Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenues** | $5,879 M | +16% | | - Fixed Income Markets | $4,268 M | +20% | | - Equity Markets | $1,611 M | +6% | | **Net Income** | $1,728 M | +20% | | **RoTCE** | 13.8% | +310 bps | - The segment's efficiency ratio improved significantly, decreasing by **500 basis points** year-over-year to **60%**[20](index=20&type=chunk) [Banking](index=8&type=section&id=Banking) The Banking segment reported Q2 2025 revenues of $1.9 billion, an 18% increase year-over-year, largely driven by a 13% rise in Investment Banking fees, with a RoTCE of 9.0% Banking Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenues** | $1,921 M | +18% | | **Net Income** | $463 M | +14% | | **RoTCE** | 9.0% | +150 bps | Investment Banking Fee Breakdown (Q2 2025 vs Q2 2024) | Fee Type | Q2 2025 (M) | YoY Change | | :--- | :--- | :--- | | Advisory | $408 | +52% | | Equity Underwriting (ECM) | $218 | +25% | | Debt Underwriting (DCM) | $432 | -12% | | **Total** | **$1,058** | **+13%** | [Wealth](index=9&type=section&id=Wealth) The Wealth segment demonstrated strong momentum with revenues of $2.2 billion, up 20% year-over-year, driven by higher investment fees, leading to a significant RoTCE of 16.1% Wealth Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenues** | $2,166 M | +20% | | **Net Income** | $494 M | +135% | | **RoTCE** | 16.1% | +970 bps | - End-of-period client investment assets grew **17% year-over-year to $635 billion**, indicating strong client activity and market performance[30](index=30&type=chunk) [U.S. Personal Banking (USPB)](index=10&type=section&id=U.S.%20Personal%20Banking%20(USPB)) U.S. Personal Banking (USPB) generated revenues of $5.1 billion in Q2 2025, a 6% increase year-over-year, with net income surging to $649 million due to lower credit reserve builds USPB Q2 2025 Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | **Total Revenues** | $5,119 M | +6% | | - Branded Cards | $2,822 M | +11% | | - Retail Services | $1,649 M | -5% | | - Retail Banking | $648 M | +16% | | **Net Income** | $649 M | +436% | | **RoTCE** | 11.1% | +920 bps | [USPB Metrics](index=11&type=section&id=USPB%20Metrics) Operational metrics for USPB show stable credit performance, with Branded Cards' Net Credit Loss rate at 3.80% and mortgage originations increasing significantly USPB Credit Card Metrics (Q2 2025) | Metric | Branded Cards | Retail Services | | :--- | :--- | :--- | | **New Account Acquisitions (k)** | 1,194 | 2,061 | | **Spend Volume (B)** | $135.8 | $22.9 | | **NCLs as % of avg. loans** | 3.80% | 5.89% | | **90+ days past due as % of EOP loans** | 1.09% | 2.15% | - Mortgage originations showed a strong rebound, increasing **68% sequentially** and **9% year-over-year to $4.7 billion**[39](index=39&type=chunk) [All Other](index=12&type=section&id=All%20Other) The 'All Other' category reported a managed basis loss from continuing operations of $588 million in Q2 2025, a combination of Legacy Franchises and Corporate/Other expenses All Other (Managed Basis) Q2 2025 Performance | Item | Q2 2025 (M) | YoY Change | | :--- | :--- | :--- | | Total Revenues, net | $1,698 | -14% | | Total Operating Expenses | $2,276 | +8% | | **Loss from Cont. Ops** | **($588)** | **-43% (less loss)** | [Legacy Franchises](index=13&type=section&id=Legacy%20Franchises) Legacy Franchises generated net income of $60 million in Q2 2025, a turnaround from a prior-year loss, with ongoing wind-down of Asia Consumer and growth in Banamex - Legacy Franchises reported net income of **$60 million** in Q2 2025, compared to a net loss of **$58 million** in Q2 2024[45](index=45&type=chunk) Legacy Franchises Key Indicators (EOP, vs Q2 2024) | Indicator | Banamex | Asia Consumer | | :--- | :--- | :--- | | **EOP Loans (B)** | $26.8 (+9%) | $3.0 (-46%) | | **EOP Deposits (B)** | $38.4 (+2%) | $1.5 (-82%) | [Corporate/Other](index=14&type=section&id=Corporate%2FOther) Corporate/Other reported a net loss of $627 million in Q2 2025, driven by a 78% year-over-year increase in operating expenses for unallocated costs and treasury activities Corporate/Other Q2 2025 Performance | Item | Q2 2025 (M) | Q2 2024 (M) | | :--- | :--- | :--- | | Total Revenues, net | $7 | $253 | | Total Operating Expenses | $989 | $556 | | **Net Loss** | **($627)** | **($344)** | [Reconciling Items—Divestiture-Related Impacts](index=15&type=section&id=Reconciling%20Items%E2%80%94Divestiture-Related%20Impacts) Divestiture-related impacts resulted in a net loss of $180 million in Q2 2025, primarily due to a pre-tax loss on the Poland consumer banking business sale and Mexico separation costs - Q2 2025 includes a loss of approximately **$186 million** related to the sale of the Poland consumer banking business and **$37 million** in operating expenses for separation costs in Mexico[54](index=54&type=chunk) Divestiture-Related Impacts | Item | Q2 2025 (M) | | :--- | :--- | | Total Revenues, net | ($177) | | Total Operating Expenses | $37 | | **Net Loss** | **($180)** | [Citigroup Supplemental Detail](index=16&type=section&id=Citigroup%20Supplemental%20Detail) [Average Balances and Interest Rates](index=16&type=section&id=Average%20Balances%20and%20Interest%20Rates) For Q2 2025, Citigroup's average interest-earning assets grew to $2.43 trillion, with Net Interest Margin improving to 2.51% due to a favorable rate environment Q2 2025 Average Balances and NIM | Metric | Q2 2025 | | :--- | :--- | | **Average Interest-Earning Assets** | $2,425.3 B | | **Average Interest-Bearing Liabilities** | $1,987.7 B | | **Net Interest Income (Taxable Equiv.)** | $15,203 M | | **Net Interest Margin (NIM)** | 2.51% | [EOP Loans](index=17&type=section&id=EOP%20Loans) Total end-of-period (EOP) loans reached $725.3 billion as of June 30, 2025, up 5% year-over-year, driven by growth in both corporate and consumer portfolios EOP Loans Breakdown (June 30, 2025) | Loan Category | Amount (B) | YoY Change | | :--- | :--- | :--- | | **Corporate Loans** | $329.6 | +9% | | - Services | $96.4 | +8% | | - Markets | $144.3 | +21% | | - Banking | $81.9 | -6% | | **Consumer Loans** | $395.8 | +2% | | - USPB | $220.2 | +5% | | - Wealth | $150.7 | 0% | | **Total Loans** | **$725.3** | **+5%** | [EOP Deposits](index=18&type=section&id=EOP%20Deposits) Total end-of-period (EOP) deposits were $1.36 trillion as of June 30, 2025, a 6% increase year-over-year, primarily driven by institutional businesses EOP Deposits Breakdown (June 30, 2025) | Segment | Amount (B) | YoY Change | | :--- | :--- | :--- | | Services, Markets, and Banking | $891.6 | +10% | | Wealth | $309.9 | -3% | | USPB | $90.5 | +5% | | All Other | $65.7 | -2% | | **Total Deposits** | **$1,357.7** | **+6%** | [Allowance for Credit Losses (ACL) Rollforward](index=19&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)%20Rollforward) The total Allowance for Credit Losses (ACLL and ACLUC) ended Q2 2025 at $20.8 billion, with a net reserve build of $345 million for loans, primarily in the corporate portfolio ACLL Rollforward YTD 2025 (in millions) | Category | Balance 12/31/24 | Net Build/(Release) YTD | Balance 6/30/25 | | :--- | :--- | :--- | :--- | | Corporate ACLL | $2,556 | $413 | $3,023 | | Consumer ACLL | $16,018 | ($68) | $16,100 | | **Total ACLL** | **$18,574** | **$345** | **$19,123** | - The total allowance for credit losses on loans (ACLL) as a percentage of end-of-period loans was **2.67%** at the end of Q2 2025[74](index=74&type=chunk) - The Q2 2025 rollforward includes a transfer of approximately **$25 million** in ACLL to Other Assets related to the agreement to sell the Poland consumer banking business[78](index=78&type=chunk) [Non-Accrual Assets](index=22&type=section&id=Non-Accrual%20Assets) Total non-accrual loans (NALs) increased to $3.35 billion at the end of Q2 2025, up 49% year-over-year, representing 0.46% of total loans Non-Accrual Loans (June 30, 2025) | Category | Amount (M) | YoY Change | | :--- | :--- | :--- | | Corporate NALs | $1,722 | +73% | | Consumer NALs | $1,632 | +30% | | **Total NALs** | **$3,354** | **+49%** | - Non-accrual loans as a percentage of total loans stood at **0.46%**, an increase of **13 basis points** from Q2 2024[79](index=79&type=chunk) [Capital Ratios and Shareholder Metrics](index=23&type=section&id=CET1%20Capital%20and%20Supplementary%20Leverage%20Ratios%2C%20Tangible%20Common%20Equity%2C%20Book%20Value%20Per%20Share%20and%20Tangible%20Book%20Value%20Per%20Share) As of June 30, 2025, Citigroup maintained a strong capital position with a preliminary CET1 Capital ratio of 13.5% and SLR of 5.5%, with TBVPS increasing to $94.16 Key Capital and Value Metrics (June 30, 2025) | Metric | Value | | :--- | :--- | | **CET1 Capital Ratio** | 13.5% | | **Supplementary Leverage Ratio (SLR)** | 5.5% | | **Book Value per Share** | $106.94 | | **Tangible Book Value per Share (TBVPS)** | $94.16 | - Tangible Common Equity (TCE) increased to **$173.3 billion** from **$167.0 billion** a year ago, while common shares outstanding decreased by **4%** to **1,840.9 million** due to share repurchases[82](index=82&type=chunk)

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

花旗集团(C.N)首席财务官Mason：预计2025年下半年经济活动将趋于疲软，但经济衰退风险已降低。 ...

花旗集团(C.N)首席财务官Mason：关税对通胀的影响有限。 ...

花旗集团(C.N)首席财务官Mason：随着关税的实施，消费者支出预计将进一步降温。 ...

Core Insights - Citi's trading business achieved its best second-quarter performance in five years, driven by record trading volumes amid global tariff policy fluctuations [1] - The bank's fixed income trading revenue surged 20% to $4.3 billion, exceeding analyst expectations of $3.9 billion, while equity trading revenue reached $1.6 billion, also surpassing forecasts [1] - The investment banking segment, led by Vis Raghavan, reported a 13% year-over-year increase in fees, surpassing $1 billion [2] Financial Performance - Total revenue for Citi increased by 8% year-over-year to $21.7 billion, with net income rising 25% to $4 billion [3] - Credit costs amounted to $2.87 billion, a 16% year-over-year increase, but were lower than the anticipated $2.94 billion [3] - All five major business segments of Citi reported revenue growth, with wealth management and U.S. personal banking achieving record second-quarter results [3] Strategic Developments - Citi plans to launch a new high-end credit card, "Strata Elite," in the third quarter, aimed at meeting the evolving consumption needs of high-net-worth clients [3] - Under CEO Jane Fraser's strategic restructuring, Citi's Wall Street operations have shown strong performance for several consecutive quarters [3] - The bank is addressing regulatory concerns related to risk management and data governance, including the elimination of 211 redundant systems and enhancing monitoring mechanisms in 85 countries [3][4] Market Position - Despite compliance issues affecting stock performance, Citi's market valuation has improved over the past year, although it remains below that of its Wall Street peers [4] - Year-to-date, Citi's stock has risen 24.3%, outperforming the S&P 500 index's 6.6% increase [4]

Group 1 - The core viewpoint is that consumers continue to demonstrate surprising resilience according to Citigroup's CFO Mason [1] Group 2 - The statement reflects a broader trend in consumer behavior, indicating that despite economic challenges, spending patterns remain stable [1] - This resilience may have implications for various sectors, particularly retail and consumer goods, as it suggests sustained demand [1] - The commentary from Citigroup's CFO highlights the importance of monitoring consumer sentiment and spending as key indicators for economic health [1]