Institutional clients revenue surged to $9.13 billion from $7.9 billion in last year's first quarter. Its adjusted revenue was $18.12 billion, also surpassing Street forecasts. "Bank stocks surged following the election previous year of Donald Trump, but have come under pressure since the start of March after the failure of the administration's healthcare legislation threw into doubt expectations of regulatory relief and pro-growth policy initiatives", The Financial Times noted.
Net income for the quarter rose from $3.5 billion a year ago to $4.1 billion while Citigroup's book value per share rose 6 percent to $75.86 and tangible book value per share rose 5 percent to $65.94.
Citigroup Inc shares fell $0.16 (-0.27%) in premarket trading Thursday.
US banks have been benefiting from a jump in markets-related revenue following the rate hikes, as well as elections in Europe and Britain's progress in leaving the European Union.
The New York-based bank said it had earnings of $1.35 per share.
"The momentum we saw across many of our businesses towards the end of last year carried into the first quarter, resulting in significantly better overall performance than a year ago", Citigroup's Chief Executive Michael Corbat said in a statement. Altogether, total trading results climbed 17% from a year earlier.
Moreover, Citigroup is counting on its credit-card franchise to accelerate growth in North America.
At the end of the first quarter, Citigroup's loans totaled $629 billion, up 2% from past year.
Citi had a strong quarter in its investment banking division, as well as consumer banking business, which helped boost revenue across all its major business lines.
Combined, trading revenue jumped about 17 percent, higher than the "low double-digit" rise that Chief Financial Officer John Gerspach projected five weeks ago. Net income rose 61% to $3 billion. It was not immediately clear if the reported results were comparable.
Through Wednesday's close, the stock had risen about 17% since the US presidential elections, but it's still down by around 1% so far this year.
The company's fixed-income markets unit, which includes bond-trading as well as foreign exchange, posted a revenue increase of 19%, with gains from government as well as corporate bonds. Investment-banking revenue rose 39% to $1.21 billion, compared with analysts' $1.17 billion estimate.