Citigroup Q2 Profit Rises on Trading, Investment Banking

Citigroup reported second-quarter net income of $5.8 billion, or $3.15 per share, and revenue of $24.8 billion, a 14% year-over-year increase and the bank’s highest quarterly revenue in a decade. The earnings per share beat analyst expectations of $2.74. Citigroup’s shares rose about 2.1% in the trading session and have gained roughly 20.6% year to date.

Trading revenue grew sharply in the quarter. Equities trading revenue increased 45% compared with the year-ago period, while fixed-income revenue rose 7%. Within fixed income, rates and currency trading edged up 1% and other fixed-income products, including commodities, climbed 25%. Market volatility tied to the U.S.-Iran conflict, large moves in oil and other assets, and renewed interest in AI-related stocks prompted heavier client activity and portfolio rebalancing that supported trading volumes.

Investment banking was a major contributor to results. Investment-banking revenue rose 44% to $1.55 billion. Total banking revenue increased 34% to $1.92 billion despite a decline in corporate lending revenue. Citigroup reported advising on transactions totaling more than $300 billion and took a role as an underwriter for SpaceX’s planned $75 billion initial public offering. The bank also advised on the $44.8 billion deal combining Unilever and McCormick’s food businesses. Global mergers and acquisitions volume has exceeded $3 trillion so far this year.

Profitability metrics showed movement toward long-term targets. Return on tangible common equity reached 13% for the quarter, at the upper end of Citigroup’s stated 11% to 13% target range for 2027 and 2028. Management is continuing a multi-year restructuring that includes selling certain consumer businesses, reducing management layers and strengthening risk and control functions to improve returns and simplify the franchise.

Citigroup reported results the same week several large U.S. banks posted higher profits, a pattern that reflected elevated market volatility and stronger dealmaking across major lenders.