Citigroup Shares Hit 13-Year High on $40 Billion Buyback Plan

Citigroup Inc. (C.US) shares closed at a new high since the 2008 financial crisis, reaching $90.72 on Tuesday, marking a 3.7% increase for the day. This surge came as the company's Chief Financial Officer announced plans to repurchase at least $40 billion in shares during the current quarter. The announcement follows a strong second quarter performance, driven by robust trading revenues amidst global market volatility.

The bank's trading business saw significant gains, with fixed income trading revenue surging 20% to $4.3 billion, surpassing analyst expectations of $3.9 billion. Equity trading revenue also exceeded forecasts, reaching $1.6 billion, largely due to a surge in prime brokerage balances to an all-time high. These results highlight Citigroup's ability to capitalize on market turbulence, as global trade tensions and policy shifts have led to increased client trading activity.

Citigroup's second-quarter earnings report revealed growth across all five business segments. Notably, the consumer banking and wealth management divisions achieved record second-quarter performances, contributing to an 8% year-over-year increase in total revenue to $21.7 billion. Net income also rose 25% to $4 billion, reflecting the bank's strong operational efficiency and strategic initiatives.

The bank's decision to repurchase shares underscores its confidence in future growth prospects and commitment to returning value to shareholders. This move is expected to support the stock price, which has been on an upward trajectory since the beginning of the year. The share repurchase program, combined with the bank's strong financial performance, positions Citigroup favorably in the competitive banking landscape.