Citigroup (NYSE:C) reported second-quarter results that outpaced Wall Street forecasts, driven by a sharp rise in trading revenue and a rebound in dealmaking, sending a strong signal that its business transformation is gaining traction. As a result, the company’s shares rose more than 3% intra-day today.
The bank posted earnings of $1.96 per share, well above the consensus estimate of $1.61. Revenue climbed 4% year-over-year to $21.67 billion, beating expectations of $20.94 billion.
Citigroup’s trading operations saw a surge in activity, benefiting from market volatility tied to shifting interest rate expectations and new trade policy developments, including tariffs announced by President Trump in April. Equities trading hit a record for the second quarter, while total markets revenue reached its highest level since 2020.
The banking segment also delivered solid results, with revenue jumping 18% due to an uptick in deal flow. Wealth management posted a 20% gain, reflecting broad-based growth across client segments. Meanwhile, U.S. branded cards and improved retail banking deposit spreads added to the strong performance.
The bank’s services division continued to shine, with revenue increasing 8%, which CEO Jane Fraser described as a core strength of the business.
