Jane Fraser, CEO, Citigroup, speaks at the 28th annual Milken Institute Global Conference at the Beverly Hilton in Beverly Hills, California on May 5, 2025.

Patrick T. Fallon | AFP | Getty Images

Citigroup reported second-quarter results on Tuesday that topped analyst expectations after a three-month period that saw the bank's stock dramatically outperform the market.

Citigroup's net income of $4.02 billion climbed 25% from the same quarter last year. Here's how the bank's results compared to Wall Street expectations:

Shares of Citigroup rose nearly 2% after the report.

The latest results reported Tuesday included the turbulent market period that began in early April. That volatility can help boost profits in equity and fixed income trading at major banks, including Citigroup.

Citigroup reported total markets revenue that was higher by 16% versus the same period a year ago. Equity revenue alone rose 6% year over year, and was up 7% from the first quarter.

Banking was another bright spot, with revenue up 18% over the second quarter of 2024, even with losses on loan hedges.

"We're improving the performance of each of our businesses to take share and drive higher returns," CEO Jane Fraser said in a statement. "With revenue up 8%, Services continues to show why this high-return business is our crown jewel. Markets had its best second quarter performance since 2020 with a record second quarter for Equities. Banking revenues were up 18% and we continue to be at the center of some of the most significant transactions."

More negatively, Citigroup reported 16% growth in cost of credit, fueled in part by a higher net build in the allowance for credit losses. The bank cited "deterioration" in the economic outlook relative to last year as a reason for the move.

The bank's management team will hold a call for investors and analysts later Tuesday morning. The still-murky tariff situation means that investors will be eager to hear management's updated outlook.

Citigroup said in a presentation published Tuesday that it now expects $84 billion in revenue for the full year, the high end of the bank's previous guidance.

Investors will also listen for updates about Fraser's turnaround plan. Citigroup has been pulling back from international markets, and the bank announced layoffs in China in June.

The June quarter results come after a first half when Citigroup's stock outperformed the broader market and several of its universal bank peers. As of Monday's close, Citi shares were ahead 24% year to date, and up 38% since April 14, the day before the bank's first-quarter earnings report.

Citigroup raised its quarterly dividend to 60 cents per share from 56 cents on July 2, after the latest Federal Reserve stress tests.