Citigroup posted solid results for the third quarter of 2025, highlighting broad-based growth across its core businesses and continued progress in its multi-year transformation strategy.
The bank reported net income of $3.8 billion, or $1.86 per share, on revenue of $22.1 billion, up 9% from a year earlier. Excluding a $726 million goodwill impairment linked to the partial sale of its Banamex unit in Mexico, adjusted net income reached $4.5 billion, or $2.24 per share.
CEO Jane Fraser said Citi’s simplified operating structure and technology investments are now delivering results. “Every business had record third-quarter revenue, improved returns, and positive operating leverage,” she noted. “The cumulative effect of our transformation has put Citi in a materially different place in terms of our ability to compete.”
Citi returned $6.1 billion to shareholders in buybacks and dividends during the quarter and maintained a CET1 capital ratio of 13.2%. Book value per share rose to $108.41, while tangible book value per share climbed to $95.72.
Record Performance Across Key Segments
- Services revenue rose 7% to $5.4 billion, marking its best quarter ever thanks to strong Treasury and Trade Solutions performance and growth in Securities Services.
- Markets revenue surged 15% to $5.6 billion, with double-digit gains in both fixed income and equities. Citi cited increased client activity in rates and currencies as well as record prime brokerage balances.
- Banking revenue jumped 34% to $2.1 billion, boosted by robust debt and equity underwriting and a rebound in advisory activity.
- Wealth Management grew 8% to $2.2 billion, while U.S. Personal Banking (USPB) also advanced 7% to $5.3 billion, with particular strength in branded cards and retail banking.
Improving Returns Amid Transformation
Operating expenses rose 9% to $14.3 billion, partly due to the Banamex-related impairment and higher performance-linked pay. Excluding the one-time charge, expenses were up just 3%.
Citi’s return on tangible common equity (RoTCE) improved to 8.0%, or 9.7% excluding notable items, underscoring stronger profitability. Deposits grew 6% year-over-year to $1.4 trillion, while total loans increased 7% to $734 billion.
Outlook
Fraser said the bank’s transformation and focus on digital assets and AI innovation are now delivering tangible benefits. Citi’s sale of a 25% stake in Banamex is seen as a step toward finalizing its long-awaited divestiture, allowing management to streamline operations and focus on high-return areas.
Despite macroeconomic uncertainties and a pending U.S. government shutdown cited in the report’s forward-looking statements, Citi reaffirmed confidence in its long-term strategy.
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