Citi(C) - 2025 Q2 - Quarterly Results

Citigroup Financial Summary Financial Summary 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] Consolidated Statement of Income 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] Consolidated Balance Sheet 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] Operating Segments Operating Segment Overview 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 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] 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] 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 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] U.S. Personal Banking (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 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] All Other 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 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] 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 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 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] Divestiture-Related Impacts | Item | Q2 2025 (M) | | :--- | :--- | | Total Revenues, net | ($177) | | Total Operating Expenses | $37 | | Net Loss | ($180) | Citigroup Supplemental Detail Average Balances and Interest Rates 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 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 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 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] - 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] Non-Accrual Assets 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] Capital Ratios and Shareholder Metrics 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]