Citigroup Shines Despite Market Turmoil and Tariff Concerns

Citigroup surpassed first-quarter profit expectations by capitalizing on volatile markets, with earnings rising by 21%. The company's return on tangible common equity progressed towards its profitability goal, but U.S. tariffs cast economic forecasts into doubt. Investment banking prospered, yet caution over tariffs and trade policy lingered.

Citigroup exceeded Wall Street's first-quarter profit estimates, driven by its traders who benefitted from volatile markets and high client activity. The bank's results mirrored those of rivals like JPMorgan, Bank of America, and Morgan Stanley, though U.S. tariffs overshadowed the economic outlook.

The bank's return on tangible common equity reached 9% this quarter, edging closer to its 10-11% goal for next year. Citigroup's shares rose by 2.7% early in the afternoon, despite a 10.2% decline earlier this year.

CEO Jane Fraser expressed confidence in the U.S. economy's future dominance, while the company continues to manage the uncertainty brought by tariffs. Investment banking and stock trading saw noticeable growth, but ongoing tariff-related tensions contribute to cautious client activity in subsequent quarters.

(With inputs from agencies.)