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Citigroup Q1 Earnings Top Estimates on Y/Y NII Rise, Dip in Expenses
CCiti(C) ZACKS·2025-04-15 14:55

Core Insights - Citigroup Inc.'s first-quarter 2025 adjusted net income per share was 1.96,exceedingtheZacksConsensusEstimateby6.51.96, exceeding the Zacks Consensus Estimate by 6.5% and up from 1.58 in the same period last year [1] - The company reported a net income of 4.1billion,reflectinga214.1 billion, reflecting a 21% increase year-over-year [2] Revenue and Expenses - Revenues, net of interest expenses, increased by 3% year-over-year to 21.6 billion, surpassing the Zacks Consensus Estimate by 1.9% [3] - Net interest income rose 4% year-over-year to 14billion,whilenon−interestrevenuesincreasedby114 billion, while non-interest revenues increased by 1% to 7.6 billion [3] - Operating expenses decreased by 5% year-over-year to 13.4billion,attributedtolowerFDICspecialassessmentexpenses,absenceofrestructuringcharges,andreducedcompensationexpenses[4]SegmentPerformance−IntheServicessegment,totalrevenueswere13.4 billion, attributed to lower FDIC special assessment expenses, absence of restructuring charges, and reduced compensation expenses [4] Segment Performance - In the Services segment, total revenues were 4.9 billion, up 3% year-over-year, driven by growth in Treasury and Trade Solutions [5] - The Markets segment saw revenues increase by 12% year-over-year to 5.9billion,fueledbygrowthinFixedIncomeandEquitymarkets[5]−Bankingrevenuesroseby125.9 billion, fueled by growth in Fixed Income and Equity markets [5] - Banking revenues rose by 12% year-over-year to 1.2 billion, primarily due to growth in investment banking [6] - U.S. Personal Banking revenues were 5.2billion,up25.2 billion, up 2% year-over-year, while Wealth segment revenues increased by 24% to 2.1 billion [6][7] - Revenues in the All Other segment declined by 39% year-over-year to 1.4billion[7]BalanceSheetandCreditQuality−AttheendofQ12025,depositsroseby21.4 billion [7] Balance Sheet and Credit Quality - At the end of Q1 2025, deposits rose by 2% to 1.32 trillion, and loans increased by 1% to 702billion[8]−Totalnon−accrualloansfellby2702 billion [8] - Total non-accrual loans fell by 2% year-over-year to 2.7 billion, while provisions for credit losses increased by 15% to 2.72billion[9]CapitalPosition−TheCommonEquityTier1capitalratiowas13.42.72 billion [9] Capital Position - The Common Equity Tier 1 capital ratio was 13.4%, slightly down from 13.45% in Q1 2024 [10] - The supplementary leverage ratio was 5.8%, marginally down from 5.84% in the prior year [11] - The company returned 2.8 billion to shareholders through dividends and share repurchases [12] Outlook - Management expects revenues for 2025 to be between 83.1billionand83.1 billion and 84.1 billion, with net interest income projected to rise by 2-3% year-over-year [13] - Expenses are anticipated to be slightly lower than $53.4 billion [13] Strategic Initiatives - The company is focusing on business transformation initiatives, including exits from consumer businesses and organizational simplification, which are expected to enhance long-term results [15]