Citigroup (NYSE:C) reported a sharp increase in first-quarter profit on Tuesday, as higher revenues across its simplified business structure and an aggressive share repurchase program drove earnings well above prior-year levels.
The bank posted net income of $5.8 billion, or $3.06 per diluted share, representing a significant jump from the $4.1 billion, or $1.96 per share, recorded in the first quarter of 2025.
Revenues for the quarter reached $24.6 billion, a 14% increase year-over-year.
The growth was broad-based, with gains reported in each of Citi’s five core interconnected businesses: Services, Markets, Banking, Wealth, and U.S. Personal Banking.
The top-line performance was further aided by foreign exchange translation and growth in Legacy Franchises, which offset a decline in the Corporate/Other segment.
The 41% surge in net income was primarily fueled by the strong revenue environment and a lower effective tax rate.
These factors outweighed a rise in operating expenses—as the bank continues its multi-year organizational overhaul—and a higher provision for credit losses, reflecting a more cautious outlook on consumer credit normalization.
Meanwhile, earnings per share saw a particularly strong boost, rising over 50% from the prior year.
Beyond the increase in net income, Citi’s bottom line benefited from a reduced share count, a direct result of the bank’s ongoing capital return program.
The Services and Markets divisions remained reliable engines of growth, while the Banking segment saw a resurgence in deal-making activity compared to the relatively stagnant start of 2025.
In U.S. Personal Banking, higher interest income and loan growth helped mitigate the impact of higher credit provisions.