Citi Sees Strong Momentum Across Franchise in Q2 2025
Citi reported strong earnings for its second quarter of 2025, with net income totaling $4 billion and earnings per share of $1.96. This represents a significant increase from previous quarters, with the company's return on tangible common equity (ROTC) coming in at 8.7%. Revenues for the period were up by 8%, with three out of Citi's five business segments reporting record-breaking revenues.
"We are executing our strategy with discipline and intensity," said Jane Fraser, Chief Executive Officer. "We're improving the performance and returns of each of our businesses while advancing their strategic positions and share, and we are making significant progress on our transformation."
The company's Services segment was highlighted as a standout performer, achieving a ROTCE of 23% for the quarter. Revenue in this area grew by 8%, driven by strong growth in both loans and deposits, with underlying fee drivers such as cross-border activity and US dollar clearing growing nicely. The firm also grew its asset under custody (AUC)/assets under administration (AUA) to over $28 trillion.
Citi's Markets segment saw revenues rise by 16%, the best second quarter since 2020, driven by strong flows in rates and currencies, backed by client momentum including hedging activity as well as improved monetization. Equities also had a record-breaking quarter, with prime balances hitting a new high, while sentiment improving significantly throughout the period.
The Banking segment saw revenues climb by 18%, led by sustained momentum in mergers and acquisitions (M&A) and taking share in leverage finance and responses, a key area of focus. The company was involved in seven out of the top ten investment banking fee events for the year to date. Additionally, Citi took share in equity capital markets with convertibles driving a strong quarter.
The Wealth segment delivered a pretax margin of 29% as revenues grew by 20%, with each line of business growing significantly and noninterest revenue up 17%. While net new investment assets slowed this quarter due to client caution amidst macro uncertainty, the company is confident that it will see a pickup in inflows as markets recover.
USPB saw revenues grow by 6% driven by focus on product innovation, digital capabilities, and customer experience. The company also grew its branded cards business while retail services experienced pressure due to lower sales activity from partners.
Overall, the company's performance was underpinned by improving deposit spreads in Retail Banking and a significant growth in the number of branches with a common equity Tier 1 capital ratio of 13.5% at quarter-end. Citi returned over $3 billion in capital to its common shareholders during the period, including $2 billion in share repurchases as part of its $20 billion buyback plan."
