Citigroup Inc (NYSE:C) stock fell 2.70% (As on April 16, 11:17:18 AM UTC-4, Source: Google Finance) after the company posted first-quarter results that exceeded analysts’ estimates as the firm’s traders generated more revenue than expected. The bank said profit rose 21% to $4.1 billion on higher revenue and lower expenses from the year-earlier period. Citigroup’s fixed income traders generated $4.5 billion in revenue on heightened activity in markets for currencies and government bonds, 8% more than a year earlier and topping the $4.33 billion StreetAccount estimate. Equities traders saw revenue rise 23% to $1.5 billion, topping the $1.4 billion estimate, as “increased market volatility” and higher client activity led to more transactions. Net interest income increased 4%, driven by U.S. Personal Banking (USPB), Markets, Wealth and Services, largely offset by declines in All Other and Banking. Non-interest revenue increased 1%, driven by Markets, Banking and Wealth, offset by declines in All Other, USPB and Services. Citigroup net income was $4.1 billion in the first quarter 2025, compared to net income of $3.4 billion in the prioryear period, driven by the lower expenses and the higher revenues, partially offset by the higher cost of credit

Moreover, Citigroup cost of credit of $2.7 billion increased 15%, driven by a higher net build in the allowance for credit losses (ACL) related to deterioration in the macroeconomic outlook in the current quarter relative to the prior-year period, and higher net credit losses in the card portfolios in USPB. Citigroup’s total allowance for credit losses was approximately $22.8 billion at quarter end, compared to $21.8 billion at the end of the prior-year period. Total ACL on loans was approximately $18.7 billion at quarter end. Corporate non-accrual loans decreased 8% from the prior-year period to $1.4 billion. Consumer nonaccrual loans increased 4% from the prior-year period to $1.3 billion. Citigroup’s book value per share of $103.90 at quarter end increased 5% versus the prior-year period, and tangible book value per share of $91.52 at quarter end increased 6% versus the prior-year period.

C in the first quarter of FY25 has reported the adjusted earnings per share of $1.96, beating the analysts’ estimates for the adjusted earnings per share of $1.85, according to LSEG estimate. The company had reported the adjusted revenue growth of 3 percent to $21.60 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $21.29 billion. This is driven by growth in each of Citi’s five interconnected businesses, largely offset by a decline in All Other.