Citigroup Reports 9% Revenue Rise and Stable Q3 Results

Steady execution defines Citigroup’s Q3 2025: revenue up 9%, wealth inflows of $18.6 billion, and continued progress on business simplification

Key Takeaways

• Citigroup’s Q3 2025 revenues totaled $22.1 billion, reflecting a 9 percent year-over-year increase, consistent with its focused strategy amid global economic pressures and policy adjustments.
• Wealth Management saw net new investment assets of $18.6 billion, a 35 percent rise from the prior year, supporting a gradual shift toward stable, fee-based revenue sources.
• An agreement to sell a 25 percent stake in Banamex advances the firm’s simplification efforts, while year-to-date shareholder returns reached $12 billion through repurchases and dividends.

Introduction

Global financial markets continue to face challenges from trade uncertainties and central bank actions, yet Citigroup’s third quarter, ending September 30, 2025, demonstrates measured advancement in its operational priorities. Net revenues came in at $22.1 billion, up 9 percent from the year-ago period and 2 percent from the prior quarter, accompanied by net income of $3.8 billion and diluted earnings per share of $1.86. Excluding a $726 million goodwill impairment linked to the Banamex transaction, adjusted net income was $4.5 billion and adjusted EPS stood at $2.24.

These outcomes contribute to year-to-date revenues of $65.2 billion, a 8 percent improvement, with return on average common equity at 7.1 percent and return on tangible common equity at 8.0 percent—both showing modest gains over the previous year. The results reflect Citigroup’s emphasis on consistent execution in a complex environment.

Key Developments

Performance across Citigroup’s core businesses provided a balanced contribution to the quarter’s results, with growth in several areas offset by targeted investments. Services generated $5.4 billion in revenues, up 7 percent year-over-year, supported by a 14 percent increase in net interest income to $3.1 billion. Treasury and Trade Solutions revenues rose 7 percent to $3.9 billion, while Securities Services advanced 7 percent to $1.5 billion, with assets under custody and administration reaching $30 trillion, up 13 percent year-over-year.

Markets revenues totaled $5.6 billion, a 15 percent year-over-year gain, driven by fixed income activity up 12 percent to $4.0 billion—particularly in rates and currencies, which grew 15 percent—and equities up 24 percent to $1.5 billion. Average trading assets increased 20 percent to $556 billion, reflecting higher client engagement and prime balances that rose 44 percent.

Banking revenues reached $2.1 billion, up 34 percent year-over-year excluding loan hedges, with investment banking fees increasing 17 percent to $1.1 billion. Advisory revenues grew 8 percent, equity underwriting 35 percent, and debt capital markets 19 percent. Corporate lending added 39 percent growth to $1.0 billion.

Wealth Management revenues were $2.2 billion, up 8 percent year-over-year, with Citigold up 14 percent to $1.3 billion and the private bank up 7 percent, though partially offset by a 12 percent decline in Wealth at Work. Client investment assets increased 14 percent to $660 billion, aided by $18.6 billion in net new investment assets. U.S. Personal Banking contributed $5.3 billion, up 7 percent, led by branded cards growth of 8 percent to $3.0 billion and retail banking up 30 percent to $675 million, with credit card spend volume at $157 billion, up 4 percent.

On the balance sheet, total assets stood at $2,642.5 billion, up 9 percent year-over-year, while deposits grew 6 percent to $1,383.9 billion and loans advanced 7 percent to $733.9 billion. Provisions for credit losses totaled $2.5 billion, down 8 percent year-over-year, with the allowance for credit losses at $23.8 billion, including $19.2 billion for loans. Operating expenses rose 9 percent to $14.3 billion, resulting in an efficiency ratio of 64.7 percent, improved by 30 basis points from the prior year. Capital positions remained solid, with Common Equity Tier 1 at 13.2 percent and the supplementary leverage ratio at 5.5 percent. The firm returned $6.1 billion to shareholders in the quarter, including repurchases and dividends.

Market Impact

Citigroup’s quarterly figures contribute to a broader picture of stability in the banking sector, where net interest income growth of 12 percent year-over-year helps counterbalance pressures from deposit competition and interest rate fluctuations observed among peers. The uptick in investment banking fees points to improving conditions in mergers and acquisitions, even as some competitors note softer backlogs.

In services and wealth segments, the $18.6 billion in net new assets and $30 trillion in custody holdings compare favorably to industry trends, as investors reallocate amid expectations of 2.0 percent U.S. GDP growth for 2025 and potential stress scenarios with unemployment reaching 6.8 percent. Loan concentrations in energy and technology sectors, at approximately 22 percent, suggest areas for ongoing monitoring, though reduced provisions and substantial deposits offer a buffer against trade-related disruptions.

Strategic Insights

A key development was the agreement to divest a 25 percent equity stake in Banamex, marking progress in Citigroup’s efforts to streamline its operations and concentrate resources on principal businesses such as services and wealth management. This move supports the firm’s broader goals of enhancing efficiency and returns for shareholders.

Ongoing initiatives in areas like AI, digital assets, and product enhancements continue to underpin revenue diversification, with transaction-based activities now representing about 15 percent of total revenues, down from prior levels, as recurring sources in custody and advisory gain ground.

Expert Opinions & Data

Citigroup’s leadership described the quarter as evidence of steady strategy implementation. CEO Jane Fraser noted, “The relentless execution of our strategy is delivering stronger business performance quarter after quarter and improving our returns.” She added that investments in new products, digital assets, and AI are “driving innovation and improved capabilities across the franchise.”

Supporting data shows return on equity up 90 basis points year-over-year to 7.1 percent, with the $23.8 billion allowance for credit losses providing 642 percent coverage of non-accrual loans. These elements position the firm to address potential challenges while pursuing opportunities in global services and cross-border flows.

Conclusion

Citigroup’s third quarter illustrates a firm methodically addressing its priorities amid sector-wide uncertainties. With revenues showing diversification, notable inflows in wealth management, and $12 billion returned to shareholders year-to-date, the institution maintains a composed stance. Net interest income’s increased contribution provides a reliable foundation independent of market fluctuations.

In summary, this period underscores a commitment to balanced growth: adapting to 2025’s evolving conditions through prudent measures, where consistent application of strategy supports long-term positioning over short-term variability. For those managing capital in such contexts, Citigroup’s approach offers a perspective on navigating complexity with discipline.