Citi(US:C)2025-05-08 20:42Financial Performance - Citigroup reported net income of $4.1 billion, or $1.96 per share, representing a 21% increase compared to $3.4 billion, or $1.58 per share in the prior-year period[28]. - Revenues for the first quarter of 2025 were $21.6 billion, a 3% increase from the prior-year period, with no divestiture-related impacts in the current quarter[30]. - Operating expenses decreased by 5% to $13.4 billion, including divestiture-related impacts of $34 million and an FDIC special assessment of $20 million[32]. - Citigroup returned $2.8 billion to common shareholders through dividends of $1.1 billion and share repurchases of $1.75 billion[36]. - Income from continuing operations before income taxes grew by 20% to $5,448 million, leading to a net income of $4,064 million, up 21% from $3,371 million[76]. - Net income for Q1 2025 was $1.6 billion, a 7% increase from $1.49 billion in Q1 2024, driven by higher revenues and lower expenses[96]. - Net income for Q1 2025 was $543 million, a 4% increase from $524 million in Q1 2024, driven by higher revenues and lower expenses[130]. - Net income for Q1 2025 was $284 million, a 62% increase from $175 million in Q1 2024, driven by higher revenues and offset by increased credit costs[141]. Revenue Growth - Average loans increased by 2% to $691 billion, driven by growth in Retail Banking and Branded Cards in U.S. Personal Banking (USPB)[30]. - Services net income reached $1.6 billion, a 7% increase from the prior year, with revenues of $4.9 billion up 3% driven by Treasury and Trade Solutions[41]. - Markets net income increased by 27% to $1.8 billion, with revenues of $6.0 billion up 12%, driven by an 8% increase in Fixed Income Markets and a 23% increase in Equity Markets[45][46]. - Banking revenues increased by 12% to $2.0 billion, with Investment Banking revenues up 12% and Advisory fees soaring by 84%[49]. - Wealth revenues surged by 24% to $2.1 billion, with net interest income increasing by 30% to $1.3 billion[53]. - U.S. Personal Banking (USPB) net income rose by 115% to $745 million, with revenues of $5.2 billion up 2%[56][57]. - Total revenues increased by 3% to $4.889 billion, with net interest income rising 5% to $3.498 billion, while non-interest revenue decreased by 4% to $1.391 billion[97][98]. - Total revenues increased by 12% to $1.952 billion, compared to $1.736 billion in the prior year, reflecting higher Investment Banking revenues and a gain on loan hedges[131]. - Total revenues increased by 24% to $2,096 million in Q1 2025, compared to $1,687 million in Q1 2024, with net interest income rising 30%[142]. Credit and Provisions - Total provisions for credit losses were $2.7 billion, an increase from $2.4 billion in the prior-year period, driven by higher net credit losses in card portfolios[33]. - Net credit losses increased by 7% to $2.5 billion, with consumer net credit losses rising by 6% to $2.3 billion[34]. - Provisions for credit losses were $51 million, down from $64 million in the prior-year period, reflecting a lower net ACL build on loans[103]. - Provisions for credit losses were $214 million, compared to a benefit of $129 million in the prior year, driven by a net ACL build of $180 million[134]. - Provisions for credit losses increased to $359 million from $186 million in the prior-year period, reflecting a net ACL build due to macroeconomic uncertainties[179]. Capital and Ratios - The Common Equity Tier 1 (CET1) Capital ratio was 13.4% as of March 31, 2025, approximately 130 basis points above the required regulatory minimum[36]. - Citi's Common Equity Tier 1 (CET1) Capital ratio was 13.4% as of March 31, 2025, down from 13.6% as of December 31, 2024, exceeding the regulatory requirement of 12.1%[185]. - The CET1 Capital under the Advanced Approaches was 11.9% as of March 31, 2025, compared to 12.1% as of December 31, 2024, with a required regulatory ratio of 10.5%[188]. - Citi's CET1 Capital amounted to $155.8 billion as of March 31, 2025, compared to $155.4 billion as of December 31, 2024[193]. - The Total Capital under the Standardized Approach was $209.9 billion as of March 31, 2025, up from $205.8 billion as of December 31, 2024[193]. - The Tier 1 Capital ratio under the Standardized Approach was 13.4% as of March 31, 2025, compared to 13.6% as of December 31, 2024[190]. - Citi's leverage ratio was 7.08% as of March 31, 2025, slightly down from 7.17% as of December 31, 2024[190]. - Citi remains "well capitalized" under current federal bank regulatory definitions as of March 31, 2025[192]. Transformation and Strategy - Citigroup continued to advance its transformation strategy, including investments to modernize infrastructure and prepare for an IPO of its consumer banking operations in Mexico[36]. - Citigroup's transformation efforts include retiring or replacing 130 applications and expanding Generative AI tool adoption, with 385,000 utilizations logged[74]. - The company is focusing on enhancing data quality and regulatory compliance through its multiyear transformation initiatives[71]. Deposits and Loans - Average deposits were approximately $1.3 trillion, down 2% from the prior-year period, primarily due to lower deposits in All Other, USPB, Markets, and Wealth[31]. - Citigroup's total deposits increased by 1% to $1,316,410 million, while long-term debt rose by 4% to $295,684 million[79]. - Average deposits decreased by 2% to $89 billion, influenced by a shift to higher-yielding investments and client transfers to Citigold[144]. - Mexico Consumer/SBMM (Banamex) had end-of-period loans of $24.1 billion and deposits of $35.3 billion, reflecting a 7% and 14% decrease, respectively[174]. - Asia Consumer end-of-period loans were $4.5 billion, down 31% from the previous year, with deposits decreasing by 18% to $7.4 billion[174].