Citigroup Q1 revenue increased by 3% year-on-year, net profit grew by 21%, with all five business lines experiencing growth | Financial Report Insights

In the face of macroeconomic uncertainty, Citigroup still achieved strong financial performance. The net profit for the first quarter reached $4.1 billion, a year-on-year increase of 21%, with earnings per share of $1.96. Total revenue reached $21.6 billion, a year-on-year increase of 3%.

The growth mainly came from the comprehensive contribution of its five core business lines, particularly the strong performance of Markets, Banking, and Wealth. Markets revenue grew by 12% to $6 billion, with fixed income markets growing by 8% and equity markets revenue soaring by 23%.

On the 15th, Citibank announced its Q1 financial report showing:

• First quarter revenue reached $21.6 billion, a year-on-year increase of 3%;
• Net profit of $4.1 billion, a year-on-year increase of 21%;
• Earnings per share of $1.96, a year-on-year increase of 24%.

Citigroup CEO Jane Fraser commented:

"From quarter to quarter, we are building a record of progress. We remain focused on executing our strategy, which is based on a diversified business portfolio that will perform well across various macro scenarios."

General Growth Across Five Business Areas

The revenue growth in Q1 for Citigroup primarily came from the comprehensive contribution of its five core business lines, particularly the strong performance of Markets, Banking, and Wealth.

Specifically:

• Markets: The Markets business performed strongly, with revenue growing by 12% to $6 billion, of which fixed income markets grew by 8% and equity markets revenue surged by 23%, indicating active client trading activities.
• Banking: Banking revenue increased by 12% year-on-year to $2 billion, notably, merger and acquisition advisory revenue grew by 84% year-on-year, reflecting a recovery in the corporate merger market.
• Wealth: Wealth management revenue grew by 24% to $2.1 billion, with client investment assets increasing by 16% to $595 billion, validating Citigroup's enhanced competitiveness in wealth management.
• Services: Although the Services business grew at a relatively slower pace, it still achieved a 3% increase to $4.9 billion, marking the best first quarter performance in a decade.
• U.S. Personal Banking: Revenue grew by 2% to $5.2 billion, primarily driven by branded credit cards and retail banking services.

Strong Balance Sheet, Enhanced Capital Returns

Citigroup's net interest income increased by 4% year-on-year, mainly due to contributions from USPB, Markets, Wealth, and Services, demonstrating the bank's adaptability in the interest rate environment. Meanwhile, operating expenses decreased by 5% year-on-year to $13.4 billion, reflecting the bank's efforts in organizational simplification and productivity improvement, although some cost savings were offset by increases in technology and communication, transformation-related professional fees, and advertising and marketing expenses Citigroup's credit costs amounted to $2.7 billion, a year-on-year increase of 15%, primarily due to an increase in credit loss reserves caused by the deterioration of the macroeconomic outlook, as well as an increase in net credit losses in the USPB card portfolio.

As of the end of the quarter, Citigroup's total loans were $702.1 billion, a year-on-year increase of 4%, with deposits of approximately $1.3 trillion, a year-on-year increase of 1%. The tangible book value per share increased by 6% to $91.52, reflecting the bank's intrinsic value enhancement.

Citigroup's preliminary CET1 capital ratio was 13.4%, slightly lower than the previous quarter's 13.6%, but still well above regulatory requirements, providing the bank with ample capital buffers. In this quarter, Citigroup returned approximately $2.8 billion in capital to common shareholders, including dividends and share buybacks, with buybacks amounting to $1.75 billion, as part of its $20 billion repurchase plan.

Citigroup Group's US stock rose nearly 1% in pre-market trading.