Citigroup Inc. (NYSE:C) is a major player in the global banking industry, offering a wide range of financial services, including lending, trading, and investment banking. The company competes with other banking giants like JPMorgan Chase and Bank of America. On October 14, 2025, Citigroup reported earnings per share of $1.86, surpassing the estimated $1.73, and revenue of $22.09 billion, exceeding the forecasted $21.09 billion.
The third-quarter results highlight Citigroup's robust performance across all its business divisions, with record revenue achievements. The bank's revenue growth was driven by significant mergers and capital-raising deals, which bolstered its markets, banking, services, wealth, and US retail divisions. Notably, the banking unit experienced a remarkable 31.3% year-over-year increase in revenue, reaching $2.1 billion, marking the largest growth among its five divisions.
Citigroup's net income rose by 15% to $3.8 billion, reflecting a strong financial performance. The services business experienced its best quarter ever, with a 7% rise in revenues. Banking revenues surged by 34%, and the markets segment delivered its best third quarter with a 15% increase in revenues. Despite these strong results, shares of Citigroup dipped slightly due to a broad market sell-off.
CEO Jane Fraser attributes the success to investments in new products, digital assets, and AI, which are driving innovation and enhancing capabilities across the franchise. The consistent execution of their strategy is leading to stronger business performance and improved returns. Citigroup's price-to-earnings (P/E) ratio is approximately 13.01, indicating the price investors are willing to pay for each dollar of earnings.
However, Citigroup faces some financial challenges. The enterprise value to operating cash flow ratio is negative at -6.50, which may indicate difficulties in generating cash flow relative to its enterprise value. Additionally, the debt-to-equity ratio is notably high at 3.38, suggesting significant reliance on debt financing. The current ratio is 0.32, indicating potential liquidity challenges in covering short-term liabilities with short-term assets.
