Citigroup CEO Jane Fraser speaks at the World Economic Forum in Davos, Switzerland on January 20, 2026.
Oscar Molina CNBC
Citigroup delivered top-line and bottom-line wins in the first quarter.
Here’s what the company reported Tuesday compared to Wall Street estimates compiled by LSEG:
Earnings per share: $3.06 vs. $2.65 estimated Revenue: $24.63 billion vs. $23.55 billion estimated
These results showed the company’s quarterly sales were the highest in a decade and earnings per share increased 56% year-over-year.
Citigroup’s return on tangible common equity, a measure of profitability, was 13.1%, the highest since 2021 and above the company’s ROTCE target of 10% to 11%.
Chief Executive Officer Jane Fraser said in a statement that the bank was on track to meet this year’s ROTCE target, and said of the recent rationalization: “We are in the final stages of the sale and 90% of our transformation program is now at or near target status.”
Citigroup’s stock has been the strongest of any major bank this year, helped by turnaround efforts and a relatively low valuation. The company is streamlining its operations and working on several regulatory consent orders, which are reportedly expected to be completed this year.
However, because of Citigroup’s global operations, we believe that we are more susceptible to the geopolitical environment than many of our peers.
The bank’s markets division largely drove the strong first quarter, with sales in its larger fixed income division rising 13% to $5.2 billion, while equities rose 39% to $2.1 billion.
Investment banking was brighter than expected, while equity underwriting was better than expected. Revenue from the Services segment rose 17% to $6.1 billion in the quarter, beating Wall Street expectations.
Citi’s Wealth Cards and U.S. Consumer Cards divisions were slightly restructured in the quarter, but not in comparison to expectations. But thanks to Citigold and retail banking, each company made a profit.
The company’s allowance for credit losses exceeded expectations due to consumer cards net credit losses and a credit loss allowance buildup of $579 million.
Expenses increased by 7% due to severance payments and currency translation.
This story is developing. Please check back for the latest information.
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted names in business news.
Source link
