Citi(US:C)2025-08-06 20:52Financial Performance - Citigroup reported net income of $4.0 billion, or $1.96 per share, representing a 25% increase compared to $3.2 billion, or $1.52 per share, in the prior-year period[30]. - Revenues for the second quarter of 2025 were $21.7 billion, an 8% increase year-over-year, with a 9% increase when excluding divestiture-related impacts[32]. - Citigroup's total net revenues for the first half of 2025 reached $43,264 million, up 5% from $41,048 million in the same period of 2024[90]. - Income from continuing operations increased by 24% to $4,033 million in Q2 2025 compared to $3,263 million in Q2 2024[91]. - Citigroup's net income attributable to common shareholders rose by 25% to $4,019 million in Q2 2025 from $3,217 million in Q2 2024[91]. - Year-to-date net income reached $3.5 billion, a 23% increase, driven by higher revenues across both markets[131]. - Year-to-date net income for 2025 reached $778 million, up 102% from $385 million in the same period of 2024[167]. Revenue Breakdown - Services net income was $1.4 billion, a decrease of 3% year-over-year, while Services revenues increased by 8% to $5.1 billion, driven by growth in Treasury and Trade Solutions[45]. - TTS revenues reached $3.7 billion, up 7%, with net interest income increasing by 12% due to higher deposit spreads and balances[46]. - Securities Services revenues increased by 11% to $1.4 billion, with net interest income rising by 14% driven by higher deposit volumes[47]. - Markets net income was $1.7 billion, a 20% increase, with revenues of $5.9 billion up 16%, driven by a 20% increase in Fixed Income Markets[51][52]. - Banking net income was $463 million, up 14%, with revenues increasing by 18% to $1.9 billion, primarily from Corporate Lending and Investment Banking[56][57]. - Wealth revenues increased by 20% to $2.2 billion, with net interest income rising by 22% to $1.3 billion[62]. - US Personal Banking net income surged 436% to $649 million, with revenues of $5.1 billion up 6%[66]. - Total revenues for Q2 2025 increased by 8% to $5.062 billion, driven by higher net interest income and fee revenue[101]. - Total revenues increased by 20% to $2.166 billion in Q2 2025, with net interest income rising 22% to $1.278 billion and non-interest revenue increasing 17% to $888 million[160]. Credit and Provisions - Total provisions for credit losses were $2.9 billion, with net credit losses of $2.2 billion, reflecting a 2% decrease from the prior-year period[37]. - Provisions for credit losses were $353 million, reflecting a net allowance for credit losses build of $333 million[107]. - Provisions for credit losses were $173 million in Q2 2025, compared to a benefit of $32 million in Q2 2024[147]. - Provisions for credit losses were a benefit of $26 million in Q2 2025, compared to a benefit of $9 million in the prior-year period, reflecting improved macroeconomic outlook[165]. - Provisions for credit losses were $1.9 billion in Q2 2025, reflecting a 19% decrease from $2.3 billion in the prior-year period[184]. Expenses and Efficiency - Operating expenses were $13.6 billion, up 2%, influenced by higher compensation and benefits expenses, including $400 million in severance costs[35]. - Total operating expenses decreased by 2% to $2.679 billion, attributed to the absence of prior-year tax and legal expenses[106]. - Total operating expenses increased by 1% to $1.558 billion in Q2 2025, primarily due to higher volume and revenue-related expenses[164]. - The efficiency ratio improved to 62.7% in Q2 2025 from 66.1% in Q2 2024, indicating better cost management[85]. - The efficiency ratio improved to 59% in Q2 2025, down from 70% in Q2 2024[143]. - The efficiency ratio improved to 72% in Q2 2025, compared to 85% in Q2 2024, indicating better cost management[159]. - The efficiency ratio improved to 47% in Q2 2025, down from 49% in Q2 2024, indicating better cost management[178]. Assets and Deposits - Average loans increased by 5% to $712 billion, driven by growth in Markets, Services, and U.S. Personal Banking[33]. - Average deposits rose by 3% to approximately $1.3 trillion, primarily due to increases in Services[34]. - Total assets grew by 9% to $2,622,772 million as of June 30, 2025, compared to $2,405,686 million a year earlier[85]. - Citigroup's total deposits increased by 6% to $1,357,733 million from $1,278,137 million year-over-year[85]. - Average deposits increased by 7% to $857 billion, with TTS and Securities Services contributing to this growth[110]. - EOP assets increased by 8% to $212 billion in Q2 2025, up from $197 billion in Q2 2024[203]. - EOP loans for Banamex increased by 9% to $26.8 billion in Q2 2025, compared to $24.5 billion in Q2 2024[203]. - EOP deposits for Banamex rose by 2% to $38.4 billion in Q2 2025, compared to $37.6 billion in Q2 2024[203]. Shareholder Returns - The company returned approximately $3.1 billion to common shareholders through share repurchases and dividends[39]. - Citigroup is targeting common share repurchases of at least $4 billion for the third quarter of 2025, subject to market conditions[43]. - Citigroup declared common dividends of $0.56 per share in Q2 2025, a 6% increase from $0.53 per share in Q2 2024[82]. Divestitures and Strategic Initiatives - Progress on divestitures includes an agreement to sell its consumer banking business in Poland and plans for an IPO of Banamex[39]. - Citi has closed sales in nine of the fourteen markets it intends to exit, with the Poland consumer banking business sale expected to close by mid-2026[198]. - The company plans to pursue an IPO of Banamex, pending regulatory approvals and market conditions[197]. - As of June 30, 2025, Legacy Franchises had $212 billion in assets, primarily related to Banamex and Corporate Treasury investment securities[196]. Market Performance - Fixed Income Markets revenues rose by 20% to $4.268 billion, driven by a 27% increase in rates and currencies revenues[125]. - Equity Markets revenues increased by 6% to $1.611 billion, supported by a 27% rise in prime services balances[126]. - International revenue increased by 30% in Q2 2025, reaching $1.140 billion compared to $878 million in Q2 2024[139].