Key facts
- Citigroup reported a 45% jump in second-quarter profit to $5.8 billion, or $3.15 per share.
- Total revenue increased 14% to $24.8 billion, marking a decade high.
- Investment banking revenues rose 44% to $1.55 billion.
- Equities and fixed-income markets revenue increased 45% and 7%, respectively.
- Net interest income grew 13% year-over-year.
- The bank's wealth management unit revenue increased 13% to $3.18 billion.
Citigroup reported a 45% surge in second-quarter profit, reaching $5.8 billion, or $3.15 per share, on revenue that climbed 14% to $24.8 billion, the highest in a decade. The gains were attributed to robust trading income in a volatile market and strong investment banking fees.
Trading desks across Wall Street have benefited from market volatility, including a rally in AI-related assets. Citigroup's equities and fixed-income markets revenue increased by 45% and 7%, respectively. Rates and currency trading saw a 1% rise, while other fixed income revenue, including commodities, was up 25%.
Investment banking revenues jumped 44% to $1.55 billion, with the bank advising on deals worth over $300 billion. Citigroup also played a role as an underwriter for SpaceX's $75 billion IPO and advised on the $44.8 billion merger of Unilever and McCormick's food businesses.
The bank's overall net interest income rose 13% in the quarter, supported by still-high interest rates. The cards division's revenue increased by 1% with net income up 12% to $852 million.
Citigroup's wealth management unit generated $3.18 billion in revenue, a 13% increase year-over-year, driven by market recoveries boosting asset values. The bank is focusing on organic growth for this division.
These results come as Citigroup undergoes a significant overhaul led by CEO Jane Fraser, aimed at improving profitability through the sale of consumer businesses and streamlining management. The bank's shares have risen 20.6% year-to-date.
Other major U.S. lenders, including JPMorgan Chase, Goldman Sachs, Wells Fargo, and Bank of America, also reported strong quarters with increased profits, indicating the health of the economy and the financial sector's ability to capitalize on market conditions.