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Citigroup Q1 Earnings Top Estimates on Higher NII, Stock Gains
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Key Takeaways
Citigroup reported Q1 EPS of $3.06, up 56% y/y, beating estimates on higher NII and growth.
C saw revenues climb 14% to $24.6B, with strong gains across Services, Markets and Banking.
Citigroup faced higher expenses, rising credit costs and weaker capital ratios in the quarter.
Citigroup Inc. (C - Free Report) has reported first-quarter 2026 earnings per share of $3.06, beating the Zacks Consensus Estimate by 15.8% and jumping 56% year over year.
C shares rose nearly 1.5% in the early trading session. A full day’s trading session will depict a clearer picture.
Net income of $5.8 billion in the first quarter of 2026 rose 42% from the year-ago quarter.
The company’s results benefited from a year-over-year rise in net interest income (NII), broad growth across each of its five core businesses and positive operating leverage. Citigroup also registered a year-over-year increase of 19% in investment banking (IB) revenues, reflecting growth in Advisory and Equity Capital Markets. However, higher operating expenses, an increase in provisions for credit losses and a weaker capital position acted as offsetting factors.
C’s Revenues Increase, Expenses Rise
Revenues, net of interest expenses, were $24.6 billion in the first quarter of 2026, up 14% year over year and beating the consensus mark by 3.8%.
NII rose 12% year over year to $15.7 billion, while non-interest revenues increased 17% to $8.9 billion. NII, excluding Markets, was $12.9 billion, up 7% from the prior-year quarter.
Citigroup’s operating expenses increased 7% year over year to $14.3 billion. The rise was primarily driven by higher compensation and benefits expenses, including severance, the impacts of foreign exchange translation, and higher transaction and product servicing costs, partly offset by productivity savings, lower legal expenses and reduced transformation expenses in Corporate/Other.
Citigroup’s Segmental Performance
In the Services segment, total revenues, net of interest expenses, were $6.1 billion, up 17% year over year. The increase reflected growth in Treasury and Trade Solutions, and Securities Services.
The Markets segment’s revenues increased 19% year over year to $7.2 billion, driven by growth in Fixed Income and Equity markets revenues.
Banking revenues were $1.8 billion, up 15% year over year, primarily driven by a rise in Investment Banking revenues. Advisory fees rose 19% and Equity Capital Markets fees surged 64%, while Debt Capital Markets fees declined 6%.
In the Wealth segment, revenues were $3.1 billion, rising 11% year over year. The increase was driven by growth in Citigold, Retail Banking and the Private Bank, partly offset by lower revenues in Wealth at Work.
U.S. Consumer Cards revenues were $4.8 billion, up 4% year over year, driven by higher NII on increased interest-earning balances and higher spreads, along with higher non-interest revenues.
In the All Other segment, on a managed basis, revenues were $1.7 billion, up 15% year over year.
C’s Balance Sheet Position Solid
As of March 31, 2026, end-of-period deposits were $1.45 trillion, up 3% from the prior quarter. End-of-period loans were $761.6 billion, up 1% sequentially.
Citigroup’s Credit Quality: Mixed Bag
Total non-accrual loans increased 25% year over year to $3.4 billion. Total allowance for credit losses was $22 billion at the quarter-end, down from $22.8 billion in the prior-year period.
Provisions for credit losses and benefits, and claims were $2.8 billion in the quarter, up 3% year over year.
C’s Capital Position Weak
At the end of the first quarter of 2026, Citigroup’s Common Equity Tier 1 capital ratio was 12.7%, down from 13.4% in the year-ago quarter and 13.2% in the prior quarter. The supplementary leverage ratio was 5.2%, down from 5.8% in the prior-year quarter.
Citigroup’s Capital Deployment
In the quarter, Citigroup returned $7.4 billion to common shareholders through share repurchases and dividends, including $6.3 billion in common share repurchases.
Our Viewpoint on C
Citigroup’s first-quarter 2026 results reflected broad-based business strength, supported by higher NII, solid fee momentum and positive operating leverage. Growth across Services, Markets, Banking and Wealth was encouraging. Yet, elevated expenses, higher credit costs and pressure on capital ratios remain watch points.
The company’s continued simplification efforts, including recent sale of its Russia-based banking unit, AO Citibank, and focus on its five interconnected businesses are expected to support long-term growth. The company has entered the final phase of its divestitures, and 90% of the transformation programs are now at or near the target. Its solid capital return plans and improving returns profile also remain positives, going forward. The company has been very much on track to deliver the 10-11% return in tangible common equity target this year.
Bank of America (BAC - Free Report) is slated to report first-quarter 2026 numbers on April 15.
Over the past week, the Zacks Consensus Estimate for Bank of America’s quarterly earnings has been revised north to $1.00. This indicates a 11.1% rise from the prior-year quarter’s reported figure.
Fifth Third Bancorp (FITB - Free Report) is scheduled to release first-quarter 2026 earnings on April 17.
The Zacks Consensus Estimate for Fifth Third Bancorp’s quarterly earnings has been revised downward to 84 cents per share over the past seven days. This indicates a 15.1% rise from the prior-year quarter’s actual.
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Citigroup Q1 Earnings Top Estimates on Higher NII, Stock Gains
Key Takeaways
Citigroup Inc. (C - Free Report) has reported first-quarter 2026 earnings per share of $3.06, beating the Zacks Consensus Estimate by 15.8% and jumping 56% year over year.
C shares rose nearly 1.5% in the early trading session. A full day’s trading session will depict a clearer picture.
Net income of $5.8 billion in the first quarter of 2026 rose 42% from the year-ago quarter.
The company’s results benefited from a year-over-year rise in net interest income (NII), broad growth across each of its five core businesses and positive operating leverage. Citigroup also registered a year-over-year increase of 19% in investment banking (IB) revenues, reflecting growth in Advisory and Equity Capital Markets. However, higher operating expenses, an increase in provisions for credit losses and a weaker capital position acted as offsetting factors.
C’s Revenues Increase, Expenses Rise
Revenues, net of interest expenses, were $24.6 billion in the first quarter of 2026, up 14% year over year and beating the consensus mark by 3.8%.
NII rose 12% year over year to $15.7 billion, while non-interest revenues increased 17% to $8.9 billion. NII, excluding Markets, was $12.9 billion, up 7% from the prior-year quarter.
Citigroup’s operating expenses increased 7% year over year to $14.3 billion. The rise was primarily driven by higher compensation and benefits expenses, including severance, the impacts of foreign exchange translation, and higher transaction and product servicing costs, partly offset by productivity savings, lower legal expenses and reduced transformation expenses in Corporate/Other.
Citigroup’s Segmental Performance
In the Services segment, total revenues, net of interest expenses, were $6.1 billion, up 17% year over year. The increase reflected growth in Treasury and Trade Solutions, and Securities Services.
The Markets segment’s revenues increased 19% year over year to $7.2 billion, driven by growth in Fixed Income and Equity markets revenues.
Banking revenues were $1.8 billion, up 15% year over year, primarily driven by a rise in Investment Banking revenues. Advisory fees rose 19% and Equity Capital Markets fees surged 64%, while Debt Capital Markets fees declined 6%.
In the Wealth segment, revenues were $3.1 billion, rising 11% year over year. The increase was driven by growth in Citigold, Retail Banking and the Private Bank, partly offset by lower revenues in Wealth at Work.
U.S. Consumer Cards revenues were $4.8 billion, up 4% year over year, driven by higher NII on increased interest-earning balances and higher spreads, along with higher non-interest revenues.
In the All Other segment, on a managed basis, revenues were $1.7 billion, up 15% year over year.
C’s Balance Sheet Position Solid
As of March 31, 2026, end-of-period deposits were $1.45 trillion, up 3% from the prior quarter. End-of-period loans were $761.6 billion, up 1% sequentially.
Citigroup’s Credit Quality: Mixed Bag
Total non-accrual loans increased 25% year over year to $3.4 billion. Total allowance for credit losses was $22 billion at the quarter-end, down from $22.8 billion in the prior-year period.
Provisions for credit losses and benefits, and claims were $2.8 billion in the quarter, up 3% year over year.
C’s Capital Position Weak
At the end of the first quarter of 2026, Citigroup’s Common Equity Tier 1 capital ratio was 12.7%, down from 13.4% in the year-ago quarter and 13.2% in the prior quarter. The supplementary leverage ratio was 5.2%, down from 5.8% in the prior-year quarter.
Citigroup’s Capital Deployment
In the quarter, Citigroup returned $7.4 billion to common shareholders through share repurchases and dividends, including $6.3 billion in common share repurchases.
Our Viewpoint on C
Citigroup’s first-quarter 2026 results reflected broad-based business strength, supported by higher NII, solid fee momentum and positive operating leverage. Growth across Services, Markets, Banking and Wealth was encouraging. Yet, elevated expenses, higher credit costs and pressure on capital ratios remain watch points.
The company’s continued simplification efforts, including recent sale of its Russia-based banking unit, AO Citibank, and focus on its five interconnected businesses are expected to support long-term growth. The company has entered the final phase of its divestitures, and 90% of the transformation programs are now at or near the target. Its solid capital return plans and improving returns profile also remain positives, going forward. The company has been very much on track to deliver the 10-11% return in tangible common equity target this year.
Citigroup Inc. Price, Consensus and EPS Surprise
Citigroup Inc. price-consensus-eps-surprise-chart | Citigroup Inc. Quote
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other Banks
Bank of America (BAC - Free Report) is slated to report first-quarter 2026 numbers on April 15.
Over the past week, the Zacks Consensus Estimate for Bank of America’s quarterly earnings has been revised north to $1.00. This indicates a 11.1% rise from the prior-year quarter’s reported figure.
Fifth Third Bancorp (FITB - Free Report) is scheduled to release first-quarter 2026 earnings on April 17.
The Zacks Consensus Estimate for Fifth Third Bancorp’s quarterly earnings has been revised downward to 84 cents per share over the past seven days. This indicates a 15.1% rise from the prior-year quarter’s actual.