Executive Summary

Citi delivered a solid quarter: revenue $21.60B (+3% YoY, +11% QoQ), EPS $1.96, net income $4.06B, and RoTCE 9.1% with positive operating leverage across all five businesses .
Both EPS and revenue beat S&P Global consensus: EPS $1.96 vs $1.85*, revenue $21.60B vs $21.29B*; strength in Markets (+12% YoY), Banking (+12%), and Wealth (+24%) offset All Other (-39%) .
FY25 guidance adjusted: revenue $83.1–$84.1B (lowered from prior $83.5–$84.5B), expenses slightly below $53.4B (improved vs prior “slightly below $53.8B”); NII ex Markets growth maintained at ~2–3% .
Capital return remains a catalyst: CET1 13.4%, buybacks increased to $1.75B in Q1 and management targets a similar pace, under a $20B authorization and year-end CET1 target of ~13.1% .

What Went Well and What Went Wrong

What Went Well
- Markets revenue up 12% YoY to $5.99B; equities +23% (derivatives, prime balances +~16%), fixed income +8% (rates/currencies +9%) amid strong client activity .
- Investment Banking strength: fees +14%; Advisory +84%, with marquee mandates (e.g., Altair/Siemens, J&J’s intracellular), driving Banking revenues +12% to $1.95B .
- Wealth revenues +24% to $2.10B; non-interest revenue +16% on investment fee growth, client investment assets +16% (net new $16.5B in the quarter), improving efficiency and returns .
- CEO tone: “delivered a strong quarter… positive operating leverage… improved returns in each of our five businesses,” highlighting Services best first-quarter revenue in a decade and capital returned of $2.8B .
What Went Wrong
- All Other revenues down 39% YoY (managed basis) on lower NII, mark-to-market in Corporate/Other, wind-down exits, and Mexican peso depreciation; net loss widened to $(870)MM .
- USPB non-interest revenue deeply negative due to higher partner payment accruals in Retail Services and presentation changes; Retail Services revenue -11% YoY .
- Cost of credit up 15% YoY to $2.73B, reflecting higher card net credit losses and firm-wide ACL build tied to a more negative macro outlook (weighted downside scenario unemployment ~6.7%) .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$21.02	$19.47	$21.60
Diluted EPS ($)	$1.58	$1.34	$1.96
Net Income ($USD Billions)	$3.37	$2.86	$4.06
Total Operating Expenses ($USD Billions)	$14.11	$13.07	$13.43
RoTCE (%)	7.6%	6.1%	9.1%
CET1 (%)	13.5%	13.6%	13.4%

Vs. Estimates (S&P Global)	Q1 2024	Q4 2024	Q1 2025
EPS: Actual vs Mean	$1.58 vs $1.27*	$1.34 vs $1.24*	$1.96 vs $1.85*
Revenue ($B): Actual vs Mean	$21.02 vs $20.40*	$19.47 vs $19.51*	$21.60 vs $21.29*
Note: Values retrieved from S&P Global.*

Segment revenues

Segment Revenues ($USD Billions)	Q1 2024	Q4 2024	Q1 2025
Services	$4.76	$5.17	$4.89
Markets	$5.36	$4.58	$5.99
Banking (incl. loan hedges)	$1.74	$1.24	$1.95
Wealth	$1.69	$1.99	$2.10
USPB	$5.11	$5.15	$5.23
All Other (Managed Basis)	$2.38	$1.34	$1.45

Key KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
EOP Loans ($B)	674.6	694.5	702.1
EOP Deposits ($B)	1,307.2	1,284.5	1,316.4
Book Value / TBVPS ($)	$99.08 / $86.67	$101.62 / $89.34	$103.90 / $91.52
Total ACL ($B)	21.76	22.18	22.78
Services AUC/AUA ($T)	24.0	25.4	26.1
Markets Avg VaR ($MM)	154	118	118
Wealth Client Investment Assets ($B)	514	587	595
US Credit Card Spend ($B, USPB)	141 / 25.2	135.4 / 25.2	125.1 / 19.0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($B)	FY 2025	~$83.5–$84.5	~$83.1–$84.1	Lowered
Expenses ($B)	FY 2025	Slightly below $53.8	Slightly below $53.4	Lowered
NII ex Markets growth	FY 2025	Modest up ~2–3%	~2–3%	Maintained
CET1 target	YE 2025	~13.1%	~13.1%	Maintained
Buybacks	2025	$1.5B guided for Q1; $20B program	$1.75B completed in Q1; similar pace targeted	Raised pace
Card NCLs	2025	Branded Cards 3.5–4.0%; Retail Services 5.75–6.25%	First-half seasonally higher, then trend down; ranges intact	Maintained
Dividend	Q2 2025 pay date	Common dividend $0.56 declared (payable May 23, 2025)	—	Confirmed

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
AI/Technology	Accelerating AI; broader modernization and data/reg reporting investments	Launching “Agent Assist” generative AI in USPB to improve customer service; retiring legacy apps, automation	Strengthening execution
Tariffs/Macro	2025 macro similar to 2024; diversified model benefits	Elevated uncertainty; Services positioned to facilitate changing trade flows; robust client engagement	More caution; opportunity-rich
Capital return	$20B buyback program authorized; targeting 13.1% CET1	$1.75B repurchased in Q1; targeting similar pace; CET1 13.4%	Accelerating buybacks
Banamex IPO	Separation completed Dec 1; IPO timing subject to markets/approvals	Still on track; IPO preparation underway; timing could slip to 2026; deconsolidation mechanics outlined	Progressing; timing flexible
Services momentum	Record Q4; gaining share in TTS & Securities Services	Best first-quarter in a decade; AUC/AUA $26T; NII +5%	Sustained strength
Credit & reserves	Robust reserves; card loss ranges provided	Firm-wide ACL build on more negative macro; downside scenario avg unemployment ~6.7%	More conservative weighting

Management Commentary

CEO Jane Fraser: “With net income of $4.1 billion we delivered a strong quarter, marked by continued momentum, positive operating leverage and improved returns in each of our five businesses… We returned $2.8 billion in capital to our shareholders including $1.75 billion of buybacks as part of our $20 billion plan.”
CFO Mark Mason: “Expenses declined by 5%… Cost of credit was $2.7 billion, primarily consisting of net credit losses in card as well as a firm-wide net ACL build… we still expect to deliver full year revenues of approximately $83.1–$84.1 billion and full year expenses slightly lower than $53.4 billion.”
On AI: “We are integrating AI directly into our business operations… Agent Assist, our first generative AI tool for customer service… now being piloted in credit cards.”
On macro/trade: “We expect to be very busy… facilitating changing cross-border flows along with hedging and financing… most of our Services business is very local… and less sensitive to tariffs.”

Q&A Highlights

Tariffs/macro: Citi positioned as “port in the storm,” able to facilitate reconfigured supply chains and hedging needs; strong client engagement and balance sheets; balanced view on uncertainty .
NII outlook: Maintained ~2–3% growth ex Markets, supported by volume tailwinds in Services deposits and card loans, deposit repricing, and reinvestment of maturing securities into higher-yielding assets .
Buybacks pacing: Increased to $1.75B in Q1; aiming similar pace, contingent on SCB clarity and client demand; no FRB constraints on dividends or buybacks .
Credit/ACL: Weighted downside scenario in CECL (avg unemployment ~6.7% over 8 quarters); reserves viewed adequate; cards performance and delinquencies tracking expectations, April in line .
Banamex IPO: On track, dual-listing preparation; deconsolidation triggers P&L items (CTA), with ultimate capital benefit from full RWA release upon complete exit .

Estimates Context

Metric	Q1 2024	Q4 2024	Q1 2025
EPS – S&P Consensus Mean ($)	1.2709*	1.2374*	1.8521*
EPS – Actual ($)	1.58	1.34	1.96
Revenue – S&P Consensus Mean ($B)	20.40*	19.51*	21.29*
Revenue – Actual ($B)	21.02	19.47	21.60
Note: Values retrieved from S&P Global.*

Implications: EPS and revenue both beat consensus in Q1 2025, aided by lower expenses and broad-based revenue strength (Markets, Banking, Wealth). Estimate revisions may modestly reflect improved operating leverage and segment momentum, while factoring more conservative macro assumptions in ACL .

Key Takeaways for Investors

Broad-based top-line momentum and disciplined cost control drove EPS and revenue beats; operating leverage and RoTCE improved to 9.1% .
Markets and Banking are re-accelerating on client activity (rates, currencies, equity derivatives; Advisory strength), while Wealth’s investment-led strategy continues to compound fee growth and assets .
FY25 guidance mildly trimmed on revenue but improved on expense, with NII ex Markets growth intact—signal of prudent planning amid macro uncertainty .
Capital return is a near-term catalyst: buybacks lifted to $1.75B in Q1 and targeted similar pace under a $20B program; watch SCB outcome and CET1 trajectory toward ~13.1% by year-end .
Credit is managed conservatively; ACL weighted to downside scenario unemployment ~6.7% and card ranges maintained, reducing tail risk of unexpected charges .
USPB’s NIR pressure reflects partner accruals and reporting changes; underlying Branded Cards and Retail Banking fundamentals are supportive (loan growth, deposit spreads) .
Services remains a crown jewel—record first-quarter revenue drivers (AUC/AUA, USD clearing, cross-border value) support durable fee/NII growth in multiple macro scenarios .

Bolded beats/misses and significant items:

EPS beat: $1.96 vs $1.85* (+$0.11) .
Revenue beat: $21.60B vs $21.29B* (+$0.31B) .
Expense improvement: $13.43B (-5% YoY) .
Buybacks increased: $1.75B in Q1; ~$2.8B total capital returned .

Additional relevant press releases:

Common dividend declared: $0.56 per share, payable May 23, 2025 .
Liability management: $3.5B notes redemption (April 8, 2025) and full redemption of $2B Series P preferred (May 15, 2025) .

Why behind results:

Expense discipline (lower FDIC assessment, no restructuring charge, lower comp, productivity savings) offset higher cost of credit; revenue strength across Markets, Banking, Wealth underpinned the beat narrative .
USPB cost of credit improved YoY on net ACL release, despite higher card NCLs; presentation changes moved certain fees to contra-revenue, distorting NIR prints .

All quantitative claims are sourced from Q1 2025 8-K/exhibits and the Q1 2025/Q4 2024 earnings calls; consensus values are from S&P Global as indicated.

CITIGROUP INC (C)·Q1 2025 Earnings Summary