Citigroup Beats Q1 Estimates with Strong Trading Revenue in Fixed Income and Equities

New York – Citigroup delivered a strong earnings beat in the first quarter of 2025, buoyed by better-than-expected revenue from both fixed income and equities trading, showcasing the bank’s resilience in a volatile market environment.

The banking giant reported earnings of $1.96 per share, outpacing the $1.85 per share estimate from LSEG, as companywide revenue rose to $21.60 billion, also topping the forecast of $21.29 billion. Net profit climbed 21% year-on-year to $4.1 billion, as Citigroup benefited from both elevated client activity and tighter cost controls.

“We’re continuing to earn credibility with investors,” said Jane Fraser, CEO of Citigroup. “Our diversified business is built to perform across a wide range of macroeconomic conditions.”

Trading Desks Drive Performance

The quarter’s standout performance came from Citigroup’s trading divisions, where revenue gains outpaced market expectations:

• Fixed income trading revenue rose 8% to $4.5 billion, driven by heightened activity in currency and government bond markets, surpassing the $4.33 billion estimate.

• Equities trading soared 23% to $1.5 billion, outperforming the projected $1.4 billion, as increased market volatility and higher client volumes fueled more transactions.

The gains align with similar first-quarter outperformance reported by JPMorgan Chase, Goldman Sachs, and Morgan Stanley, all of which capitalized on surging volatility across equity markets.

Strategic Positioning Amid Economic Shifts

Fraser also addressed broader concerns about the U.S. economic outlook in light of ongoing trade policy shifts under President Donald Trump. With the administration working to restructure key international trade agreements, investors have grown cautious about potential headwinds.

“When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency,” Fraser stated.

Market Reaction and Challenges Ahead

Shares of Citigroup rose 3% following the earnings release. However, the stock remains down 10% year-to-date, as the broader banking sector grapples with the implications of Trump’s 25% tariffs on imports, which have stirred concerns about a potential economic slowdown.

Still, the bank’s performance this quarter underscores the strength of its global markets division and its ability to adapt to dynamic macroeconomic conditions. With a focus on diversified growth, efficient capital deployment, and risk management, Citigroup appears well-positioned to navigate the remainder of the year—even as political and economic uncertainties continue to unfold.