C · Citigroup Inc.

Citigroup delivered exceptionally strong first quarter 2026 results, with net income surging 42% year-over-year to $5.8 billion and revenue growing 14% to $24.6 billion. The performance was driven by growth across all five interconnected businesses and Legacy Franchises, partially offset by a decline in Corporate/Other. Services had an outstanding quarter with revenue up 17% and net income increasing 21%, while Markets crossed $7 billion in revenue. Banking continued to build momentum with fees up 12% amid a record first quarter in M&A, and Wealth saw revenue grow 11%. U.S. Consumer Cards delivered 4% revenue growth with returns of nearly 20%. The company's effective tax rate decreased to approximately 21% from 25% in the prior-year period, largely driven by a discrete item in the current quarter. Operating expenses increased 7% year-over-year to $14.3 billion, driven by higher compensation and benefits expenses including severance, foreign exchange translation impacts, and higher volume-related expenses, partially offset by productivity savings and lower legal expenses. Provision for credit losses was $2.8 billion, reflecting $2.2 billion of net credit losses and a net allowance for credit losses build of $597 million. The company returned approximately $7.4 billion to shareholders through $6.3 billion in share repurchases and dividends, with a payout ratio of 134%. Citigroup's Common Equity Tier 1 capital ratio was 12.7% as of March 31, 2026, down from 13.2% at the end of the prior quarter, primarily driven by common share repurchases, dividend payments, and higher risk-weighted assets. CEO Jane Fraser noted the company has entered the final phase of its divestitures with 90% of Transformation programs at or near target state, and remains on track to deliver the 10-11% Return on Tangible Common Equity target for the year.