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%; revenues reached $24.6B, up 14% year-over-year, marking the best quarterly revenue in a decade.

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

• Wealth revenues increased 11%, and U.S. Consumer Cards delivered 4% revenue growth and 19% ROTCE.

• Returned ~$7.4B to shareholders in Q1 2026 via buybacks and dividends, with a payout ratio of 134%.

• Transformation programs are 90% complete, with significant progress in AI adoption and regulatory reporting modernization.

Financial highlights

• Q1 2026 net income: $5.8B; EPS: $3.06; ROTCE: 13.1%; revenues: $24.6B, up 14% year-over-year.

• Net interest income rose 12% to $15.7B; non-interest revenue up 17% to $8.9B.

• Expenses rose 7% to $14.3B, mainly due to higher compensation, severance, and FX impacts; efficiency ratio improved to 58%.

• Provision for credit losses was $2.8B, mainly from U.S. cards net credit losses and a $597M ACL build.

• Book value per share grew 8% to $112.22; tangible book value per share up 8% to $99.01; CET1 ratio at 12.7%.

Outlook and guidance

• Full-year 2026 guidance: NII ex-Markets up 5%-6%, efficiency ratio expected around 60%, and U.S. credit cards NCL rate expected between 4%-4.5%.

• ROTCE target for 2026 reaffirmed at 10%-11%.

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

• Management optimistic about continued revenue growth and capital return.