^{Source: CNBC}

Citigroup Inc. (NYSE: C) has reported a strong start to 2025, with first-quarter earnings surpassing analyst predictions, driven by significant gains in its trading divisions.​

Key Financial Highlights:

• Earnings Per Share (EPS): $1.96, exceeding the $1.85 estimate.
• Revenue: $21.6 billion, up 3% year-over-year, surpassing the expected $21.29 billion.
• Net Income: $4.1 billion, a 21% increase from the previous year. ​

Trading Divisions Drive Growth:

• Fixed Income Trading: Revenue rose 8% to $4.5 billion, outperforming the $4.33 billion estimate, fueled by heightened activity in currency and government bond markets.
• Equities Trading: Revenue surged 23% to $1.5 billion, exceeding the $1.4 billion forecast, as increased market volatility led to more client transactions. ​

Investment Banking and Wealth Management:

• Investment Banking Fees: Increased by 14% to $1.1 billion, with mergers and acquisitions (M&A) fees soaring 84%, despite challenges in equity and debt underwriting.
• Wealth Management: Revenue grew 24% to $2.1 billion, reflecting strong client engagement. ​‍

Strategic Outlook:

CEO Jane Fraser emphasized the bank's diversified business model and its ability to perform across various macroeconomic scenarios. She remains optimistic about the U.S. economy's long-term strength and the dollar's status as the global reserve currency. ​

Market Reaction:

Despite the positive earnings report, Citigroup's shares have experienced a 10.2% decline year-to-date, influenced by broader concerns over U.S. trade policies and economic uncertainties. ​

‍

Citigroup's first-quarter performance demonstrates its robust trading capabilities and strategic positioning to navigate market fluctuations. The bank's focus on diversified revenue streams and operational efficiency positions it well for sustained growth amid evolving economic landscapes.​

‍