How Does Citigroup Make Money

Citigroup, commonly known as Citi, is one of the largest financial institutions in the world. It operates in over 160 countries and provides a wide range of financial services to its customers, including banking, credit cards, wealth management, and investment banking.

In this article, we will take a closer look at how Citigroup makes money.

How Citigroup Makes Money

Here are the various ways in which Citigroup makes money today.

  1. Consumer Banking

Citigroup’s consumer banking division offers a wide range of services to individual customers, including deposit accounts, credit cards, and loans. Citigroup earns revenue from consumer banking in several ways, including interest on loans and credit card balances, fees charged for services such as ATM withdrawals and wire transfers, and penalties for late payments and overdrafts.

  1. Institutional Clients

Group Citigroup’s Institutional Clients Group (ICG) is its investment banking division. It provides services such as underwriting, mergers and acquisitions, and securities trading to institutional clients such as corporations, governments, and non-profit organizations. ICG is a significant contributor to Citigroup’s overall revenue, accounting for approximately 50% of its revenue in 2020.

ICG’s main sources of revenue are transaction fees, advisory fees, and trading commissions. Transaction fees are charged when Citigroup facilitates a transaction, such as a merger or acquisition, and can be a significant source of revenue for the company. Advisory fees are earned when Citigroup provides advice to clients on financial matters, such as financing options or strategic planning. Finally, trading commissions are earned when Citigroup executes trades on behalf of clients.

  1. Global Consumer Banking

Citigroup’s Global Consumer Banking division operates in over 20 countries and provides a range of financial services to individual customers. This division’s primary revenue streams are interest on loans and credit card balances, fees charged for services such as ATM withdrawals and wire transfers, and penalties for late payments and overdrafts.

  1. Corporate/Other

Citigroup’s Corporate/Other division is responsible for managing the company’s assets and liabilities, including its investment portfolio and capital management. This division also includes Citigroup’s technology and operations functions, as well as some legacy businesses that are being wound down.

Revenue from the Corporate/Other division primarily comes from investment income, such as dividends and interest earned on the company’s investment portfolio. This division also includes revenue from the sale of assets, such as real estate or businesses that Citigroup no longer considers to be core to its operations.

  1. Wealth Management

Citigroup’s wealth management division provides investment management services to high net worth individuals and institutions. This division’s primary revenue stream is advisory fees, which are earned when Citigroup manages a client’s investment portfolio. The division also earns revenue from transaction fees, which are charged when a client buys or sells an investment.


In conclusion, Citigroup’s revenue comes from a range of sources, including interest income, fees charged for services, and commissions earned from transactions. The company’s investment banking division, Institutional Clients Group, is a significant contributor to its revenue, accounting for approximately half of the company’s revenue in 2020. Citigroup’s other divisions, including consumer banking, wealth management, and Corporate/Other, also generate significant revenue for the company.

It’s important to note that Citigroup, like all financial institutions, operates in a highly regulated industry. The company must comply with a range of regulations designed to protect customers and ensure the stability of the financial system. Citigroup’s compliance with these regulations is a critical aspect of its operations and plays a significant role in its ability to generate revenue.

Overall, Citigroup’s success in generating revenue depends on its ability to provide high-quality financial services to its customers while managing its risks effectively. The company’s diverse range of revenue streams and global reach position it well to continue to generate revenue in the years to come.