C-PRMEDIUM SIGNALOPERATIONAL10-Q
Citigroup implemented significant accounting presentation changes effective July 1, 2025, reclassifying derivatives gains/losses and foreign currency transactions from Other revenue to Principal transactions, while consolidating variable product support costs into a new "Transactional and product servicing" expense category.
These reclassifications suggest Citi is enhancing financial statement transparency by better aligning revenue and expense categorization with the underlying business activities, particularly around trading operations and service delivery costs. The changes may make period-over-period comparisons more challenging in the near term but should provide investors with clearer visibility into the bank's core revenue streams and cost structure going forward.
Comparing 2025-11-06 vs 2025-08-06View on EDGAR →
LANGUAGE CHANGES
NEW — 2025-11-06
PRIOR — 2025-08-06
ADDED
common stock outstanding on September 30, 2025: 1,789,266,159 Available online at www.citigroup.com This page intentionally left blank.
Certain reclassifications have been made to the prior periods financial statements and disclosures to conform to the current period s presentation, including the following: Effective July 1, 2025, gains and losses on certain economic and qualifying hedging derivatives and foreign currency transaction gains and losses related to non-U.S.
dollar debt and certain foreign operations in countries with highly inflationary economies with the U.S.
dollar as their functional currency reported within Services , Markets , Banking and All Other Corporate Other, which were previously presented within Other revenue , are now presented within Principal transactions .
Effective July 1, 2025, certain expenses incurred in ongoing support of products and services that are predominantly variable costs, which were previously presented within Other operating expenses and Transactional and tax charges , are now aggregated and presented within a new expenses category, Transactional and product servicing (see Glossary below for definition).
Moreover, certain non-income tax charges incurred, which were previously presented within Transactional and tax charges and do not align with the redefined Transactional and product servicing , are now presented within Other operating .
Effective January 1, 2025, certain transaction processing fees paid by Citi, primarily to credit card networks, reported within U.S.
For more information on the notable item, see Executive Summary and All Other Managed Basis Legacy Franchises (Managed Basis) below.
4 Citi s revenues excluding divestiture-related impacts represent as reported, or GAAP, financial results adjusted for items that are incurred and recognized (and the aforementioned impacts of the notable item), which are wholly and necessarily a consequence of actions taken to sell (including through a public offering), dispose of or wind down business activities associated with Citi s previously announced exit markets within All Other Legacy Franchises.
(1) Fixed Income Markets consists of the Rates and Currencies and Spread Products and Other Fixed Income sub-businesses; Equity Markets consists of the Equity Derivatives, Equity Cash and Prime Services sub-businesses.
REMOVED
common stock outstanding on June 30, 2025: 1,840,897,898 Available online at www.citigroup.com This page intentionally left blank.
Certain reclassifications have been made to the prior periods financial statements and disclosures to conform to the current period s presentation, including, effective January 1, 2025, certain transaction processing fees paid by Citi, primarily to credit card networks, reported within U.S.
(1) Includes the remaining three exit countries (Korea, Poland and Russia).
Citi s positive operating leverage was driven by revenue growth of 8% and disciplined expense management (up 2%).
Citi continued to advance its transformation through the second quarter of 2025, including, among other things, making key investments to consolidate and modernize its infrastructure, retiring legacy applications and improving risk and controls, such as enhancing compliance risk management and updating its financial forecasting engine for stress metrics.
(See Citi s Multiyear Transformation below.) Citi returned approximately $3.1 billion to common shareholders in the form of share repurchases ($2.0 billion) under its multiyear $20 billion common stock repurchase program, and dividends ($1.1 billion).
Citi s Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach was 13.5% as of June 30, 2025, approximately 140 basis points above its current regulatory requirement.
As part of its strategic refresh, Citi continued to make progress on its remaining divestitures, including entering into an agreement to sell its consumer banking business in Poland, progressing the planned initial public offering (IPO) of Banamex and winding down Citi s consumer banking operations in Korea and overall operations in Russia.
Second Quarter of 2025 Results Summary Citigroup Citi reported net income of $4.0 billion, or $1.96 per share, compared to net income of $3.2 billion, or $1.52 per share in the prior-year period.
Net income increased 25% versus the prior-year period, primarily driven by higher revenues, partially offset by higher cost of credit and higher expenses.
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