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Citigroup (C +2%) is trading higher after reporting solid Q1 results this morning. Citi reported its seventh consecutive double-digit EPS beat with upside revs. Total revenue rose 2.8% yr/yr to $21.60 bln with record revenue in its US Personal Banking (USPB) and Wealth segments. Net interest income increased 4%, driven by USPB, Markets, Wealth and Services, largely offset by declines in All Other and Banking. Citi also reaffirmed FY25 revs of $83.10-84.10 bln.

• Citi's largest segment is Markets and it performed very well in Q1 as revenue rose 12% yr/yr to $6.0 bln, driven by growth in both Fixed Income and Equity markets revenue. Fixed Income revenue rose 8% to $4.5 bln, fueled by growth across rates and currencies as well as spread products and other fixed income. Equity markets revenue jumped 23% to $1.5 bln, primarily driven by equity derivatives. Increased market volatility and higher client activity fueled results in Q1.
• USPB is Citi's next largest segment, but it did not perform as well with revs up only 2% to $5.2 bln, driven by growth in Branded Cards and Retail Banking, largely offset by a decline in Retail Services. Net interest income (NII) increased 6%, driven by loan growth in Branded Cards as well as higher deposit spreads in Retail Banking. Non-interest revenue decreased 168%, primarily driven by higher partner payment accruals in Retail Services.
• A real standout was its Wealth segment, unfortunately, it's one of Citi's smaller segments at $2.1 bln, but revenue jumped 24%. Growth was strongest across Citigold ($200K account minimum), the Private Bank and Wealth at Work. NII of $1.3 bln increased 30%, driven by growth in deposit spreads, partially offset by lower deposit balances.
• Citi's Services segment grew 3% to $4.9 bln, driven by growth in Treasury and Trade Solutions (TTS), which continued to gain market share. Its Banking segment did well with revs up 12% to $2.0 bln, driven by growth in Investment Banking as well as the impact of mark-to-market on loan hedges, partially offset by a decline in Corporate Lending. Citi's worst performing segment was All Other (managed basis), with revs down 39% yr/yr to $1.4 bln.

We are definitely seeing a pattern among the banks as earnings season gets underway. Most are reporting strong Q1 results but with caution moving forward due to macro concerns about tariffs, inflation, companies getting more cautious on spend, slowing growth etc. We did not see much in terms of cautious comments from Citi, but its call starts at 11am ET so we do not know what they will say yet.

Citi did reaffirm FY25 revenue guidance, so that was good to see. Also, Citi CEO Jane Fraser said that once trade imbalances and other structural shifts are behind us, the US will still be the world's leading economy, and the dollar will remain the reserve currency. That last point was especially good to hear given the concerns about foreign investors selling Treasuries.