Citigroup posts $23.8 billion in third-quarter revenue, its best quarter in a decade
Key Facts
Citigroup said on October 13 that revenue reached $23.8 billion in the third quarter of 2026, its best third-quarter revenue in a decade, by the company's description. The bank reported net income of $5.2 billion and diluted earnings per share of $2.85. CEO Jane Fraser said the results reflected "the best third-quarter revenue in a decade, positive operating leverage and tangible improvement in our returns." The performance showed year-over-year revenue growth, but came in below the second quarter. The company also recorded an improvement in return on tangible common equity as it continued to execute its multiyear strategy.
Revenue was $23.845 billion, according to the detailed results table, down 4% from the second quarter but up 8% from the third quarter of 2025. Net interest income rose 14% year over year, while non-interest revenue fell 4%. The company attributed revenue growth to services, wealth, markets and banking, while the "other activities" line declined. Fraser said revenue grew in four of the bank's five businesses. She added that Citi brought forward some planned investments and severance costs into the quarter.
Wealth revenue grew 15%, with net new investment assets reaching a record $38 billion. Equity capital markets revenue rose 77%, while banking revenue grew 6%, according to the results FAQ published by the company. Fraser said returns improved in services, banking, wealth and U.S. consumer cards. The company's return on tangible common equity was 11.5%, up 350 basis points in the year-over-year comparison table. On the earnings call, Fraser described the return growth as 180 basis points from the prior year.
The annual increase in revenue was accompanied by a rise in the credit loss provision to $2.586 billion, from $2.450 billion in the third quarter of the prior year. Meanwhile, reported operating expenses fell 2% to $13.952 billion. The Common Equity Tier 1 (CET1) capital ratio was about 12.8% on September 30. Citi returned $4.1 billion to common shareholders during the quarter through share repurchases and dividends, with a payout ratio of 85%. These figures place returns, capital and shareholder distributions alongside credit costs and expenses in the quarter's financial picture.
Citi said it is targeting return on tangible common equity above 11% for 2026, and set a near-term target range of 11% to 13% in 2027 and 2028. Its medium-term ambitions span 14%–15% during 2029–2031. Fraser said the bank expects to exceed this year's return target, despite bringing forward investments to support its near-term target, reaching "sustainable returns of 14% to 15%." Regarding Banamex, Citi completed the sale of an additional 1.4% stake in August, bringing the stake sold by that time to 49%. The company expects to deconsolidate Banamex in 2027.
In the market, Citi shares fell 5.6% in the October 13 session, despite the bank beating earnings estimates, Reuters reported. The Associated Press said the stock fell 3.6% on the same day, while reporting that third-quarter profit rose 40% from a year earlier. The agency said investment banking and wealth management revenue increased, while credit card profits were stable. In the context of results from major banks, the agency pointed to warnings about the long-term impact of higher interest rates and the burden high prices could place on consumers if inflation is not brought under control. Citi shares closed at $120.62 on October 23, according to EL7 data.