Citigroup releases first quarter revenue | Fox Business
Angie Newman, UBS Global Wealth Management Manager, discusses market responses amid trade tensions and advises clients and investors.
Citigroup defeated Wall Street estimates For profits in Tuesday’s first quarter as traders mowed blows from the volatile market that encouraged client activity.
The revenues of the US’s third largest lender reflect the revenues of Wall Street rivals, including JPMorgan Chase, Bank of America and Morgan Stanley. While industry profits have risen, executives warned that US tariff policies will overshadow economic outlook.
“We continue to help our clients navigate uncertainty,” CEO Jane Fraser said in a statement. “When everything is said and done, and years of trade imbalances and other structural changes are behind us, the US remains the world’s leading economy and the dollar remains the reserve currency.”
Profits increased by US bank profits, transaction profits and interest income
“We continue to help our clients navigate uncertainty,” CEO Jane Fraser said in a statement. (Photo by Reuters/Evelyn Hockstein/Reuters)
Stock trading jumped in the first three months of the year as investors recalibrated their portfolios during the period of growing uncertainty over President Donald Trump’s tariffs and the emergence of Chinese startup Deepshek’s low-cost AI model.
Citi’s market revenues rose 12% in the quarter to $6 billion, exceeding previous expectations for a single-digit percentage increase. Stock revenues skyrocketed 23%, supported by more client activity.
Debt revenue, a major driver of Citi’s market operations, jumped to 8%, which was lifted primarily by fees and currency, to $4.5 billion.
Estimates compiled by LSEG show that Citi’s net income rose 21% to $4.1 billion for the three months ended March 31st and the three months ended March 31st to $1.96 per share.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| c | Citigroup Inc. | 65.21 | +1.95 |
+3.08% |
| JPM | JPMorgan Chase & Co. | 238.28 | +3.61 |
+1.54% |
| bac | Bank of America Corp. | 36.67 | +0.72 |
+2.00% |
| MS | Morgan Stanley | 109.11 | +0.99 |
+0.92% |
Stocks A New York-based bank Pre-market trading rose 1.4%. They fell 10.2% this year as of the end of Monday.
Tariffs stimulate the economy
Wall Street CEO warns of potential fallout from US tariffs that clouded the economic outlook and spurred fears of a recession. Bank stocks were confused this month when bank stocks were announced when US tariffs were announced.
Tariffs can rekindle inflation, constrain economic growth, and curb the appetite of businesses for transactions and borrowing. Mitigating consumer sentiment could put emphasis on spending and loan demand.
CEOs of major banks consider Trump’s tariffs: “Substantial turbulence”
“There is clearly a lot of uncertainty about tariffs and trade policies and how it will evolve, but there are also uncertainties about broader agendas, deregulation, tax policies, and more.
Citi’s credit costs were $2.72 billion for the quarter, compared to $2.37 billion the previous year.
Banks, weapons of wealth shine
Two divisions Recently revamped by the CEO It showed improvement in the first quarter. The bank, led by former JPMorgan Chase executive Viswas Raghavan, has increased revenues by 12% to $2 billion.
Citi’s investment bank fees rose 14% in the quarter to $1.1 billion.
The bank advised on some notable transactions during the quarter. This includes a $14.6 billion deal on intracellular therapy from neurological drug manufacturers.
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The wealth management unit, run by former Bank of America executive Andy Sheek, revenues rose 24% to a record $2.1 billion.
CITI has made multi-year efforts under CEO Fraser to streamline its operations and improve returns, while trying to fix long-standing regulatory issues.
Although Citi completed many of its reorganizations last year, banks are still working to improve data quality control and regulatory reporting.
The bank has reduced the bonuses paid to top executives in 2024 as they have not made enough progress on compliance issues.
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City plans to reduce dependency Information Technology Contractor Reuters reported last month, employing thousands of employees as it tackles regulatory punishment.
The bank repurchased $1.75 billion in shares in the first quarter. That’s higher than previously expected at $1.5 billion.
Citi targets similar levels of stock repurchase in the second quarter.