Citi(US:C)2025-11-06 21:55Financial Performance - Citigroup reported net income of $3.8 billion, or $1.86 per share, for Q3 2025, up from $3.2 billion, or $1.51 per share in the prior-year period, reflecting a 16% increase[33]. - Revenues for Q3 2025 were $22.1 billion, a 9% increase compared to the prior-year period, driven by growth across all five business segments and Legacy Franchises[35]. - The company reported a net income of $3,752 million for Q3 2025, a 16% increase from $3,238 million in Q3 2024[86]. - Earnings per share (EPS) from continuing operations rose to $1.89 in Q3 2025, up 24% from $1.53 in Q3 2024[86]. - Net income for Q3 2025 was $3.75 billion, reflecting a 16% increase compared to $3.24 billion in Q3 2024[96]. - Net income for 2025 YTD reached $4.8 billion, a 5% increase, driven by higher revenues, partially offset by higher provisions[115]. - Net income for 2025 YTD reached $5.1 billion, a 29% increase driven by higher revenues, partially offset by increased expenses[135]. - Net income for 2025 YTD reached $1.6 billion, a 41% increase driven by higher revenues and lower expenses[154]. - For the year-to-date 2025, net income reached $2.3 billion, a 127% increase compared to the same period in 2024[193]. Revenue Growth - Average loans increased to $725 billion, up 6% year-over-year, primarily due to growth in Markets and U.S. Personal Banking[36]. - Average deposits rose to approximately $1.4 trillion, a 5% increase year-over-year, driven by growth in Services[37]. - Total Citigroup net revenues for Q3 2025 were $22.09 billion, a 9% increase from $20.21 billion in Q3 2024[95]. - Non-interest revenue increased by 4% to $7,150 million in Q3 2025, compared to $6,847 million in Q3 2024[86]. - Services revenue increased by 7% to $5.36 billion in Q3 2025, driven by higher net interest income and fee revenue[102]. - Total revenues for the third quarter increased by 15%, reaching $5.6 billion, driven by higher revenues in both Fixed Income and Equity Markets[130]. - Revenues increased by 14%, with Fixed Income Markets and Equity Markets contributing significantly to this growth[135]. - Revenues increased by 21% to $2.164 billion, with Corporate Lending revenues up 26% and Investment Banking revenues up 17%[155][156]. Expenses and Efficiency - Operating expenses were $14.3 billion, a 9% increase, influenced by a notable goodwill impairment of $726 million and higher compensation expenses[38]. - The efficiency ratio improved to 50% in Q3 2025, down from 51% in Q3 2024[101]. - The efficiency ratio improved to 53% from 70% year-over-year, indicating better cost management[141]. - Total operating expenses increased by 4% to $1.654 billion, influenced by higher technology investments and volume-related expenses[171]. - Total operating expenses in Q3 2025 were $2,168 million, compared to $2,077 million in Q3 2024, indicating an increase of approximately 4.4%[201]. - Total operating expenses for the nine months ended September 30, 2025 were $6,668 million, compared to $6,868 million in 2024, a decrease of about 2.9%[201]. Capital and Shareholder Returns - Citi returned approximately $6.1 billion to common shareholders, including $5.0 billion in share repurchases and $1.1 billion in dividends[39]. - As of September 30, 2025, Citi's Common Equity Tier 1 (CET1) Capital ratio was 13.3%, approximately 120 basis points above its regulatory requirement[39]. - Citigroup's common share repurchases increased significantly to $5,000 million in Q3 2025, compared to $1,000 million in Q3 2024, marking a 400% increase[86]. Credit Losses and Provisions - Total provisions for credit losses were $2.5 billion, reflecting net credit losses of $2.2 billion, which was up 2% from the prior-year period[40]. - Provisions in All Other (managed basis) were $331 million, reflecting net credit losses of $297 million, which was up 43% from the prior-year period[76]. - Total provisions for credit losses were $1.8 billion in Q3 2025, reflecting net credit losses of $1.8 billion, down 5% from the previous year[191]. - Provisions for credit losses were $465 million, reflecting a net ACL build of $428 million, primarily due to transfer risk associated with Russia[120]. - Provisions for credit losses were $157 million, reflecting a net ACL build of $148 million and net credit losses of $9 million[152]. - Provisions for credit losses were $30 million, reflecting net credit losses of $56 million and a net ACL release of $26 million[172]. Business Segment Performance - Markets net income increased 46% to $1.6 billion, with revenues of $5.6 billion up 15%, driven by a 12% increase in Fixed Income Markets and a 24% increase in Equity Markets[52][53]. - Banking revenues increased 34% to $2.1 billion, driven by growth in Corporate Lending and Investment Banking, with Investment Banking revenues up 23%[58]. - Wealth revenues increased 8% to $2.2 billion, driven by growth in Citigold and the Private Bank, with net interest income up 8%[63]. - US Personal Banking (USPB) revenues increased 7% to $5.3 billion, driven by growth in Branded Cards and Retail Banking[68]. - All Other (managed basis) revenues decreased 16% to $1.5 billion, driven by lower revenues in Corporate/Other[74]. - TTS revenues increased by 7%, driven by a 14% increase in net interest income, partially offset by a 15% decrease in non-interest revenue[109]. - Securities Services revenues increased by 7%, with a 14% rise in non-interest revenue driven by a mark-to-market gain and a 13% increase in AUC/AUA[110]. - Fixed Income Markets revenues increased by 12%, driven by growth in Rates and Currencies revenues[131]. - Equity Markets revenues rose by 24%, attributed to higher client activity in Equity Derivatives and a 44% increase in prime balances[132]. Transformation and Technology Investments - The company continued to invest in transformation and technology, which contributed to higher performance-related compensation and severance costs[38]. - Citigroup's transformation investments are expected to be significantly higher in 2025 compared to 2024, focusing on data and controls[81]. - Approximately 7 million utilizations of Citi's enterprise-wide Generative AI tools were recorded year-to-date, a threefold increase from the previous quarter[84]. - The company continues to optimize its operations by retiring or replacing 384 applications year-to-date through September 30, 2025[84]. Goodwill Impairment - The company reported a goodwill impairment charge of $726 million in Q3 2025, significantly impacting operating expenses[202].