Citigroup Inc

Financial Performance: Citi reported Q1 2025 net income of $4.1 billion (EPS of $1.96), reflecting a 9.1% return on tangible common equity (ROTCE). Total revenues increased by 3% year-over-year, driven by growth across all business segments, notably in wealth management (up 24%) and banking (up 12%). The firm's disciplined expense management led to a 5% decline in overall expenses.

Strategic Investments and Transformation: Citi continues to invest in transformation initiatives to modernize operations and improve efficiency. Notable advancements include the integration of AI into customer service processes and retiring legacy applications. The focus will remain on managing costs while continuing crucial investments, targeting an expense reduction to approximately $53 billion in 2025.

Credit Quality and Risk Management: The cost of credit was reported at $2.7 billion, with a build in the allowance for credit losses (ACL), indicating caution due to an uncertain macroeconomic outlook. Most of Citi's consumer credit portfolio is of high quality, with 85% to clients with FICO scores over 660. However, rising delinquency rates in credit cards indicate potential stress.