Citigroup (C) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $5.8B, up 42% year-over-year, with EPS of $3.06 and ROTCE at 13.1%, driven by 14% revenue growth and positive operating leverage across most businesses.

• Four of five core businesses posted double-digit revenue growth, led by Services (+17%), Markets (+19%), and Banking (+15%).

• Returned ~$7.4B to shareholders in Q1 2026, including $6.3B in share repurchases and $1.1B in dividends; new $30B repurchase program authorized.

• Transformation programs are 90% complete, with significant progress in AI adoption, regulatory reporting modernization, and divestitures, including Banamex and Russia exits.

• Efficiency ratio improved to 58.1%, down 410 bps year-over-year, reflecting operational efficiency gains.

Financial highlights

• Revenues reached $24.6B, up 14% year-over-year; net interest income up 12% to $15.7B, non-interest revenue up 17% to $8.9B.

• Net income was $5.8B, up from $4.1B year-over-year; EPS $3.06, up 56% year-over-year.

• Operating expenses rose 7% to $14.3B, mainly due to higher compensation, severance, and FX impacts.

• Provision for credit losses was $2.8B, driven by U.S. Consumer Cards net credit losses and a $597M ACL build.

• CET1 capital ratio at 12.7%, 110 bps above regulatory requirement, with tangible book value per share up 8% to $99.01.

Outlook and guidance

• Full-year 2026 guidance: NII ex-Markets up 5%-6%, efficiency ratio expected around 60%, and ROTCE target reaffirmed at 10%-11%.

• U.S. credit cards net credit loss rate expected between 4%-4.5% for 2026.

• Continued capital return to shareholders, with more detail on buybacks to be provided at Investor Day.

• Management remains optimistic about continued revenue growth and capital return.

• Transformation and divestiture execution, capital planning, and risk management remain key priorities.