Jane Fraser Calls Services Citi's 'Crown Jewel' As Profit Jumps 25%, Q2 Results Beat Estimates

Citigroup (C) reported its second quarter results on Tuesday before the opening bell, reporting net income of $4 billion, up 25% from a year ago, as CEO Jane Fraser called the bank's services segment its“crown jewel.”

The bank reported earnings per share (EPS) of $1.96, beating estimates of $1.60, according to Koyfin data. Its revenue for the quarter came in at $21.7 billion, ahead of Wall Street's estimate of $20.9 billion. 

“With revenue up 8%, Services continues to show why this high-return business is our crown jewel,” said Citi CEO Jane Fraser. She also noted that the markets division has its second-best quarter since 2020, with record performance in equities. 

The bank's net income jumped to $4 billion in the second quarter (Q2), compared to $3.2 billion in the year-ago quarter and marked a 25% jump, which the management said was driven by higher revenues and partially offset by higher cost of credit and higher expenses.

Citi's stock gained 1% in pre-market trade on Tuesday. On Stocktwits, retail sentiment jumped to 'extremely bullish' from 'bullish' one day ago as chatter also rose to 'extremely high' levels. 

Citi returned $3 billion to shareholders in the quarter, including $2 billion in stock buybacks, as part of its ongoing $20 billion repurchase plan.

Fraser also emphasized progress on the company's transformation efforts, including process simplification, automation, and the use of artificial intelligence (AI).

She reiterated that Citi's return on tangible common equity (ROTCE) target of between 10% and 11% in 2025 is just a milestone, not the final goal.

Citi's stock has gained 23% this year and 35% over the past 12 months. 

JPMorgan Chase also reported a second-quarter beat on Tuesday, with CEO Jamie Dimon warning of 'significant risks' from tariffs and trade uncertainty. 

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Editor's Note: An earlier version of the story carried an incorrect image instead of Citi CEO Jane Fraser.

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