Citigroup Q2 Earnings Preview: Revenue and EPS Expectations

Citigroup (C) is set to report Q2 2025 earnings on July 15. Wall Street expects EPS to rise 5.9% YoY to $1.61 and revenue to grow 4% to $20.96 billion. Analysts are bullish on the bank's solid Q1 results and initiatives to streamline operations. Citi stock has rallied 23.2% year-to-date.

Citigroup Inc. (C) is set to report its second-quarter 2025 earnings on July 15, 2025, before the market opens. Wall Street analysts expect the company to report earnings per share (EPS) of $1.61, a 5.9% year-over-year increase [1]. Revenue is projected to grow by 4% to $20.96 billion, according to the Zacks Consensus Estimate.

The first quarter of 2025 saw Citigroup experience increases in net interest income (NII) and non-interest revenues. Investment Banking (IB) revenues also registered a solid increase. These positive trends are expected to continue in the second quarter, with the Zacks Consensus Estimate for sales at $20.9 billion, indicating a 4% year-over-year increase [1].

The consensus estimate for earnings has been revised downward to $1.62 over the past seven days, suggesting a 6.6% rise from the prior-year quarter’s actual. This downward revision underscores the cautious optimism among analysts [1].

Key factors influencing Citigroup’s Q2 results include NII, loans, and fee income. The Federal Reserve kept interest rates unchanged at 4.25-4.5% in the second quarter, which is likely to have supported Citigroup’s NII as funding/deposit costs stabilized. The Zacks Consensus Estimate for NII is pinned at $14.2 billion, indicating a 4.9% year-over-year rise [1].

Despite an uncertain macroeconomic backdrop due to Trump’s tariff plans, lending activity remained impressive. The demand for commercial, industrial, and consumer loans was solid in the first two months of the quarter, which is expected to have improved Citigroup’s average interest-earning asset balance. The Zacks Consensus Estimate for Citigroup's average interest-earning assets is pegged at $2.32 trillion, indicating a 2.9% increase from the year-ago quarter’s reported figure [1].

Global mergers and acquisitions in the second quarter of 2025 were impressive, supporting Citigroup’s IB revenues. The company expects IB revenues to increase in a mid-single-digit percentage range in the second quarter of 2025 [1].

Citigroup’s stock has rallied 23.2% year-to-date, driven by its solid Q1 results and initiatives to streamline operations. The company is undergoing a major overhaul to focus on core markets and improve profitability. It has exited the consumer banking business in nine countries and is progressing to wind down operations in Korea and Russia. Additionally, Citigroup plans to eliminate 20,000 jobs over a two-year period, aiming to generate $2-$2.5 billion in annual savings by 2026 [1].

Despite the positive outlook, Citigroup faces execution risk and near-term uncertainty due to tariffs and interest rate fluctuations. The company's asset quality is expected to remain weak due to higher for longer interest rates, which could hurt borrowers’ credit profiles. Investors should remain cautious and monitor macroeconomic factors that could influence Citigroup’s performance.

References:
[1] https://finance.yahoo.com/news/heres-play-citigroup-ahead-q2-153400419.html
[2] https://www.tradingview.com/news/zacks:c70515a99094b:0-here-s-how-to-play-citigroup-ahead-of-its-q2-earnings-release/