Citigroup beats second-quarter estimates as markets and banking revenues jump

Citigroup reported second-quarter results on Tuesday that topped expectations after a three-month period that saw the bank's stock dramatically outperform the market.

Citigroup's net income of $4.02 billion was up 25% from the same quarter last year. Here's how the bank's results compare to Wall Street expectations:

• Earnings: $1.96 per share vs $1.60 per estimate from LSEG
• Revenue: $21.67 billion vs $20.98 billion estimate

The second-quarter results reported Tuesday include the turbulent market period in early April. That volatility could help boost the results of equity and fixed income trading at major banks, including Citigroup.

Citigroup reported markets revenue that was higher by 16% year over year. Equity revenue specifically was up 6% year over year, and 7% versus the first quarter.

Banking was another bright spot, with revenue up 18% over the second quarter of 2024 even with losses on loan hedges.

“We're improving the performance of each of our businesses to take share and drive higher returns. With revenue up 8%, Services continues to show why this high-return business is our crown jewel. Markets had its best second quarter performance since 2020 with a record second quarter for Equities. Banking revenues were up 18% and we continue to be at the center of some of the most significant transactions,” CEO Jane Fraser said in the press release.

The bank did report 16% growth in cost of credit, fueled in part by a higher net build in the allowance for credit losses. The bank cited “deterioration” in the economic outlook relative to last year as a reason for that move.

Shares of Citigroup were up less than 1% in premarket trading.

The bank's management team will hold a call for investors and analysts later Tuesday morning. The still-murky tariff situation means that investors will be eager to hear from management about the firm's updated outlook.

Citigroup said in a presentation published Tuesday that it now expects $84 billion in revenue for the full year, which as the high end of the bank's previous guidance range.

Investors will also be looking for updates about Fraser's turnaround plan. Citigroup has been pulling back from international markets under Fraser as part of that plan, and the bank announced layoffs in China in June.

The results come after a first half where Citigroup's stock outperformed the broader market and several of its universal bank peers. As of Monday's close, the stock was up 24% year to date and 38% since April 14, which was the day before the bank's first-quarter earnings report.

Citigroup previously announced a dividend hike to 60 cents per share from 56 cents July 2, following the Federal Reserve stress tests.