Citigroup profit beats estimates as stock trading increases 23%

Citigroup beat Wall Street estimates for first-quarter profit on Tuesday as its traders reaped a windfall from volatile markets that fueled client activity.

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The third-largest US lender's earnings echoed those of Wall Street rivals, including JPMorgan Chase, Bank of America, and Morgan Stanley, whose results were also lifted by stronger equities trading. While industry profits rose, executives warned that US tariff policies cast a shadow over the economic outlook.

"We continue to help our clients navigate an uncertain environment," CEO Jane Fraser said in a statement. "When all is said and done, and long-standing 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." Stock trading jumped in the first three months of the year, with 23% higher revenue, as investors rejigged their portfolios during a period of heightened uncertainty over President Donald Trump's tariffs and the emergence of Chinese startup DeepSeek's low-cost AI model.

Investment banking revenue increased 12%, mainly from advising on mergers and acquisitions.

"There's obviously a great deal of uncertainty around tariffs and trade policy and how that will evolve, but also uncertainty around the broader agenda, deregulation, tax policy, etc. - that is putting kind of downward pressure on the outlook for growth," Chief Financial Officer Mark Mason told reporters. "We hope the 90-day pause will allow some breathing room," he said, referring to the Trump administration's hold on tariffs against many trading partners.