Citi CEO Jane Fraser Says Bank On Track To Hit 10% To 11% RoTCE – C Stock Climbs To Over 17-Year Highs

• Citigroup reported revenue growth across key business segments, driven by higher client activity, stronger deposit growth, and a bigger fee income.
• Citi has entered the final phase of divestitures, and 90% of its transformation programs are close to their target state, CEO Fraser said.
• The bank has outperformed its finance peers, with C being the only stock that has gained so far this year.

Citigroup (C) Chair and CEO Jane Fraser said the bank remains firmly on track to achieve its 10% to 11% return on tangible common equity (RoTCE) target this year, as first-quarter (Q1) performance showed strong momentum.

The bank reported RoTCE of 13.1% for the quarter, a sharp improvement from 9.1% a year earlier. Meanwhile, revenue for the quarter rose 14% to $24.63 billion, beating Wall Street’s estimates of $23.59 billion, according to Fiscal.ai data. Net income surged 45% to $5.8 billion, while earnings per share at $3.06 also came above estimates of $2.59.

At the time of writing, Citi shares were trading up 1.6%, their highest levels since November 2008.

Growth Across All Segments

Citigroup reported broad-based revenue growth across its key business segments, driven by higher client activity, stronger deposit growth, and higher fee income. Services revenue rose 17% to $6.1 billion, led by gains in Treasury and Trade Solutions and Securities Services, both of which benefited from higher deposits and increased transaction volumes.

Markets' revenue jumped 19% to $7.2 billion, supported by strength in both fixed income and equities. Equity markets stood out with a 39% surge, driven by strong performance in derivatives, prime services, and cash equities. Banking revenue climbed 15%, with investment banking up 19%, while wealth revenue grew 11%, supported by gains in retail banking and private banking.

U.S. consumer banking also delivered modest growth, with revenue up 4%, helped by higher loan balances and increased credit card activity.

“Our diversified business model continues to drive consistent revenue growth and we remain a source of financial strength and trust for our clients during uncertain times,” Fraser said.

“We’ve entered into the final phase of our divestitures and 90% of our Transformation programs are now at or near our target state.”

How Did Retail Traders React?

Retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ amid ‘high’ message volumes.

Since the start of the year, C has gained around 5% and is the only big bank stock in the green. Wells Fargo (WFC) is down 9%, JPMorgan (JPM) has shed around 5%, Bank of America (BAC) is down nearly 5%, while Goldman Sachs (GS) has dropped around 2%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.