Net income rose to $5.8 billion, or $3.15 per share, topping all 20 analyst estimates as equities trading revenue climbed 45%
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Citigroup $C on Tuesday posted second-quarter net income of $5.8 billion, or $3.15 per diluted share, clearing every analyst estimate on the strength of record equity-trading results and a sharp jump in investment banking fees that pushed quarterly revenue to its highest point in ten years.
Earnings per share of $3.15 exceeded all 20 analyst estimates compiled by Bloomberg. Analysts on average expected a profit of $2.74 per share, according to Reuters. Total revenue reached $24.8 billion, up 14% from a year earlier. Net income rose 45% from $4.0 billion in the second quarter of 2025.
Equities trading revenue reached $2.3 billion, a 45% year-over-year increase, with prime balances up nearly 60%, the company said. Fixed-income trading revenue advanced 7% to $4.7 billion, with spread products and other fixed-income categories contributing a 25% gain, partly offset by a more modest 1% rise in rates and currencies. Investment banking revenue grew 44% to $1.55 billion, with equity capital markets surging 92% and debt capital markets climbing 65%, the company said.
Chief Executive Officer Jane Fraser said in a statement that Services delivered its highest-ever quarterly revenue, with a return of over 30%, while Banking revenues climbed 34% and Wealth revenues rose for the ninth consecutive quarter. Services net income rose 51% to $2.6 billion, the company said.
The bank's return on tangible common equity landed at 13% for the quarter, touching the upper boundary of the 11%-to-13% range Citigroup has targeted for 2027 and 2028, according to Bloomberg.
Despite the broad beat, Citigroup's equities growth trailed larger rivals. Chief Financial Officer Gonzalo Luchetti acknowledged the gap, saying on a call with reporters that Citigroup had not moved quickly enough to build out its equities franchise and that catching up would be a gradual process.
All but one of Citigroup's five main business segments — banking, services, markets and wealth — came in ahead of analyst estimates. The U.S. personal-cards division was the lone miss, held back by a 10% rise in costs tied partly to higher severance.
Citigroup said it returned approximately $5.0 billion to common shareholders during the quarter through share repurchases and dividends, and announced a $30 billion buyback plan alongside a 12% dividend increase. The bank's Common Equity Tier 1 capital ratio stood at 12.8% at quarter end.
Citigroup stock slipped about 1% at the market open on Tuesday.
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