Citigroup shares hit highest level since 2008

Citigroup Inc. shares hit their highest level since the 2008 financial crisis last week after the US bank reported a second-quarter profit that beat Wall Street estimates and said it plans to buy back at least $4 billion in shares, Reuters reported.

Citigroup shares rose to $90.69 on Tuesday (July 15), as the third-largest US bank reported gains driven by revenue from trading and investment banking. At the close of trading on Thursday, July 17, Citigroup shares were worth $93.09, their highest level since 2008. Over the past 12 months, the US bank's shares have gained 43.5%, and since the start of 2025 - 33%.

The $4 billion in promised share buybacks in the third quarter are higher than the $3.75 billion the bank repurchased in the first half of the year.

In the meantime, Kenneth Leon, director of research at CFRA, raised his 12-month price target for Citigroup by $17 to $110 per share. Leon said the bank deserves to trade closer to its peers as its performance improves.

• Citigroup's market-trading revenue - $5.9 billion

Citigroup's market-trading revenue rose 16% to $5.9 billion, its best performance since the second quarter of 2020, the source said. It notes that markets have recovered and investment banking transactions have resumed after the initial shock of the US tariff announcements in April, which froze activity. Several large IPOs and billion-dollar acquisitions launched since June have fueled optimism for the second half of the year.

"We are very pleased with the mergers and acquisitions segment - the portfolio is excellent,” said Citigroup CEO Jane Fraser, noting that the bank is working on seven of the 10 largest investment banking transactions of the year. The bank has seen more activity in healthcare and technology, mainly in North America.

The third-largest US lender reported net income of $4 billion, or $1.96 per share, in the three months ended June 30. Analysts had expected $1.60 per share.

In addition to higher trading revenue, Citigroup's investment banking fees rose 13%. The investment banking expansion was led by a 52% increase in advisory fees for mergers and acquisitions. Total banking revenue rose 19% to $1.9 billion.

The bank's chief financial officer, Mark Mason, said Citigroup expects future trading growth despite uncertainty about the rates ahead of their implementation date, Aug. 1. "Equity and bond markets remain constructive given equity valuations and the direction of interest rates,” Mason said.

Capital markets fees rose 25% in the quarter, driven by higher convertible bonds and initial public offerings.