Citigroup Inc. (NYSE: C) THIRD QUARTER 2026 RESULTS AND KEY METRICS
CITIGROUP INC (C) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 For Immediate Release Citigroup Inc. (NYSE: C) OCTOBER 13, 2026 THIRD QUARTER 2026 RESULTS AND KEY METRICS CHAIR AND CEO COMMENTARY Citi Chair and CEO Jane Fraser said, “Our performance in the quarter, which included the best third-quarter revenue in a
How this was made
The 30-second read
Why it matters
The earnings beat and increased shareholder returns provide a fresh catalyst for the stock.
Market read
First‑report earnings release from a major U.S. bank, likely to move the stock and influence the broader financial sector.
What to watch
Higher provision for credit losses and a modest decline in non‑interest revenue may temper enthusiasm.
Citi reports 3Q'26 net income of $5.2 billion, or $2.85 per diluted share, on revenues of $23.8 billion, up 8% year over year
Revenues rose 8% year over year and reported EPS rose 53%, with Services, Wealth, Markets and Banking growing. Revenues fell 4% sequentially, Markets fell 13% sequentially, USCC non-interest revenue declined 62% year over year, and ROE and RoTCE declined both sequentially and in the release's own figures against the prior quarter. Reported EPS growth is measured against a prior-year period that included a $726 million goodwill impairment.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, net of interest expense (3Q'26)GAAP | $23.84B | (4)% | 8% |
| Total operating expenses (3Q'26)GAAP | $13.95B | (2)% | (2)% |
| Net credit losses (3Q'26)GAAP | $2.22B | (8)% | - |
| Net ACL build / (release) (3Q'26)GAAP | $333M | 226% | 130% |
| Other provisions (3Q'26)GAAP | $36M | 125% | (60)% |
| Total provision for credit losses (3Q'26)GAAP | $2.59B | 3% | 6% |
| Income from continuing operations before taxes (3Q'26)GAAP | $7.31B | (9)% | 37% |
| Provision for income taxes (3Q'26)GAAP | $1.89B | (6)% | 21% |
| Effective tax rate (3Q'26)other | approximately 26% | – | – |
| Income from continuing operations (3Q'26)GAAP | $5.42B | (10)% | 43% |
| Net income attributable to non-controlling interest (3Q'26)GAAP | $175M | (9)% | 361% |
| Citigroup's net income (3Q'26)GAAP | $5.25B | (10)% | 40% |
| Diluted EPS, reported (3Q'26)GAAP | $2.85 per diluted share | – | 53% |
| Diluted EPS excluding notable item, prior-year period (3Q'25)non-GAAP | $2.24 | – | 27% |
| Net income excluding notable item, prior-year period (3Q'25)non-GAAP | $4.5B | – | – |
| Notable item: goodwill impairment, prior-year period (3Q'25, pre-tax, in operating expenses)GAAP | $726M | – | – |
| Notable item: goodwill impairment, after-tax (3Q'25)GAAP | $714M | – | – |
| End-of-period loans (3Q'26)other | $820B | 3% | 12% |
| Average loans (3Q'26)other | $809B | 3% | 12% |
| End-of-period assets (3Q'26)other | $2.94T | 2% | 11% |
| End-of-period deposits (3Q'26)other | $1.50T | 1% | 9% |
| Average deposits (3Q'26)other | $1.53T | 2% | 11% |
| Book value per share (3Q'26)other | $115.61 | 1% | 7% |
| Tangible book value per share (3Q'26)non-GAAP | $101.59 | 1% | 6% |
| Common Equity Tier 1 (CET1) capital ratio (3Q'26, preliminary)other | 12.8% | – | – |
| Supplementary Leverage ratio (SLR) (3Q'26, preliminary)other | 5.0% | – | – |
| Return on average common equity (ROE) (3Q'26, preliminary)other | 10.1% | (130) bps | 300 bps |
| Return on average tangible common equity (RoTCE) (3Q'26, preliminary)non-GAAP | 11.5% | (150) bps | 350 bps |
| Efficiency ratio (total operating expenses / total revenues, net) (3Q'26)other | 58.5% | 110 bps | (620) bps |
| Payout ratio (3Q'26)other | 85% | – | – |
| Allowance for credit losses, total (quarter end)other | $22.4B | – | – |
| Total ACL on loans (quarter end)other | $20.1B | – | – |
| Reserve-to-funded loan ratio (quarter end)other | 2.5% | – | – |
| Total non-accrual loans (quarter end)other | $3.3B | – | (12)% |
| Corporate non-accrual loans (quarter end)other | $1.7B | – | (16)% |
| Consumer non-accrual loans (quarter end)other | $1.5B | – | (5)% |
| Services net income (3Q'26)GAAP | $2.64B | 2% | 27% |
| Markets net income (3Q'26)GAAP | $1.74B | (27)% | 2% |
| Banking net income (3Q'26)GAAP | $378M | 8% | 40% |
| Wealth net income (3Q'26)GAAP | $585M | - | 93% |
| USCC net income (3Q'26)GAAP | $851M | - | (8)% |
| All Other (managed basis) net loss (3Q'26)GAAP | −$955M | (3)% | (26)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ServicesFiling: revenue growth driven by Treasury and Trade Solutions and Securities Services. Net interest income up 17% on higher average deposit balances and deposit spreads; non-interest revenue up 12% on higher fees. Operating expenses of $2,976 million rose 10%, primarily on higher compensation including severance, performance-related and other compensation. | $6.61B | 4% | 15% |
| Treasury and Trade Solutions (Services)Filing: net interest income up 18% on higher average deposit balances and deposit spreads; non-interest revenue up 12% on higher fees and underlying drivers, including cross-border transaction value up 10%, commercial card spend volume up 10% and U.S. dollar clearing volume up 5%, plus a more favorable impact from currency devaluation in Argentina. | 4.90B | 3% | 16% |
| Securities Services (Services)Filing: non-interest revenue up 13% on higher fees, which benefited from a 16% increase in assets under custody and administration; net interest income up 14% on higher average deposit balances. Prior-year period included a mark-to-market gain. | 1.71B | 4% | 13% |
| MarketsFiling: growth in Equity markets and Fixed Income markets. Operating expenses of $3,750 million rose 7% on higher transactional expenses and compensation, including performance-related and other compensation and severance. Markets RoTCE 12.3% (3Q'26) vs 17.0% (2Q'26). | $6.11B | (13)% | 6% |
| Rates and currencies (Markets)Filing: unchanged year over year; foreign exchange revenue growth on higher volumes offset by lower revenues in rates. | 2.96B | (9)% | - |
| Spread products / other fixed income (Markets)Filing: growth in spread products financing revenues. | 1.42B | (3)% | 13% |
| Equity markets (Markets)Filing: growth in prime services, with prime balances up over 40%, including new balances onboarded and market valuations, partially offset by a decline in derivatives revenues. | 1.73B | (25)% | 14% |
| BankingFiling: revenues of $1.7 billion increased 6% including gain/(loss) on loan hedges, driven by Investment Banking and gains on loan hedges, partially offset by a decline in Corporate Lending excluding loan hedges. Operating expenses of $1,225 million rose 8% on higher compensation and continued investments. | $1.73B | (11)% | 2% |
| Investment Banking (Banking)Filing: growth in Equity Capital Markets, partially offset by declines in Advisory and Debt Capital Markets. ECM revenues up 77% as the business gained share in follow-ons and convertibles; Advisory down 4% amid a lower wallet; DCM down 3%. | 1.35B | (13)% | 9% |
| Advisory (Investment Banking)Filing: decline amid a lower wallet. | 406M | 4% | (4)% |
| Equity underwriting (Investment Banking)Filing: business gained share in follow-ons and convertibles. | 343M | (19)% | 77% |
| Debt underwriting (Investment Banking)Filing: decline in investment grade, primarily offset by growth in leveraged finance. | 601M | (18)% | (3)% |
| Corporate Lending (Banking, excluding gain/(loss) on loan hedges)Filing: lower loan spreads, partially offset by higher average loan balances and commitments. | 382M | (6)% | (16)% |
| WealthFiling: growth across all businesses. Net interest income of $2.3 billion up 20% on higher deposit spreads and average deposit balances, partially offset by lower mortgage spreads. Non-interest revenue of $1.0 billion up 5% on higher investment fee revenues. Operating expenses up 3%. | $3.27B | 3% | 15% |
| Citigold and Retail Banking (Wealth)Filing: higher deposit spreads. | 2.27B | 4% | 16% |
| Private Bank (Wealth)Filing: higher deposit spreads and average deposit balances. | 766M | - | 17% |
| Wealth at Work (Wealth)Filing: higher deposit spreads and average deposit balances, primarily offset by lower mortgage spreads. | 228M | - | 7% |
| U.S. Consumer Cards (USCC)Filing: net interest income up 6% on higher interest-earning balances, offset by non-interest revenue down 62% on higher partner payment accruals and rewards costs, partially offset by higher interchange and annual fees. Operating expenses of $1,682 million rose 2%. | $4.66B | 3% | - |
| All Other (managed basis)Filing: declines in Legacy Franchises and Corporate/Other. Expenses of $1.9 billion decreased 14% on lower transformation expenses and lower expenses related to exits and wind-downs, partially offset by peso appreciation and the Citi Foundation contribution. Net credit losses up 46% on higher volume and portfolio seasoning in Mexico Consumer. | $1.43B | (18)% | (3)% |
| Legacy Franchises (managed basis)Filing: continued lower revenues from closed exit and wind-down markets, offset by growth in Mexico, including momentum in the underlying businesses and the impact of Mexican peso appreciation. | 1.85B | (10)% | (1)% |
| Corporate / Other (All Other)Filing: lower net interest income reflecting higher asset and liability management impacts, offset by higher non-interest revenue, primarily from valuation adjustments on certain investments and positions. | −415M | (31)% | (4)% |
Full year 2026 and near-term targets, as stated in the CEO commentary outlook
- NoteCompany expects to exceed this year's return target (CEO commentary; the target figure is not printed in the release)
- NoteCompany is pulling forward investments toward its 11-13% near-term goal (metric not named in the filing)
- NoteThe 11-13% near-term goal is described as the next waypoints on the path to sustainable returns of 14-15%
Capital returns
- Citigroup returned $4.1 billion to common shareholders in the form of common share repurchases and common dividends during 3Q'26.
- Payout ratio of 85%, defined in the filing as common dividends plus common share repurchases divided by net income available to common shareholders.
- CEO: 'We returned over $4 billion to common shareholders'.
What drove it
- Filing: revenue growth of 8% was driven by Services, Wealth, Markets and Banking, partially offset by a decline in All Other.
- Filing: net interest income increased 14%, driven by Markets, Services, Wealth and USCC, partially offset by declines in All Other and Banking. Non-interest revenue decreased 4%, driven by declines in Markets and USCC, largely offset by growth in All Other, Services, Banking and Wealth.
- Filing: operating expenses were down 2% on a reported basis, driven by the absence of the prior-year notable item and lower professional services expenses, partially offset by higher transactional and product servicing expenses, deposit insurance costs, compensation and benefits and the Citi Foundation contribution. Excluding the notable item in the prior-year period, expenses were up 3%.
- Filing: total provision for credit losses of $2.6 billion reflected $2.2 billion of net credit losses and a net reserve build of $369 million, driven by changes in the macroeconomic outlook and portfolio growth. Net credit losses were unchanged from the prior-year period.
- Filing: effective tax rate was approximately 26% compared with 29% in the prior-year period.
- Filing: net income growth was driven by higher revenues and lower expenses, partially offset by a higher provision for credit losses. Reported EPS growth reflects higher net income and a lower share count due to share repurchases.
- Filing: USCC provision of $1.9 billion reflected a net reserve build of $208 million, primarily driven by changes in the macroeconomic outlook. Net credit losses in USCC were down 4%, primarily driven by improved credit performance in private label credit cards.
- Filing: Wealth net income of $585 million increased 93%; Services net income of $2.6 billion increased 27%; Banking net income of $378 million increased 40%.
Concerns
- Revenues fell 4% sequentially to $23,845 million from $24,766 million, with Markets down 13% sequentially to $6,113 million and Equity markets down 25% sequentially to $1,727 million.
- ROE fell to 10.1% from 11.4% sequentially, and RoTCE fell to 11.5% from 13.0%. Both are below the prior-year levels shown in the table.
- Total provision for credit losses rose 6% year over year to $2,586 million, and the net ACL build rose to $333 million from $145 million in the prior-year period.
- USCC non-interest revenue declined 62% year over year to $(758) million, and New credit card account acquisitions fell 43% sequentially to 3,081 (thousands).
- All Other (managed basis) net loss widened to $(955) million from $(756) million in the prior-year period. Net credit losses in All Other rose 46% on higher volume and portfolio seasoning in Mexico Consumer.
- SLR fell to 5.0% from 5.2% sequentially, and CET1 ratio is down from 13.3% in the prior-year period.
- Investment Banking revenues fell 13% sequentially, with Equity underwriting down 19% and Debt underwriting down 18% sequentially; Advisory fell 4% year over year amid a lower wallet, per the filing.
What to watch
- Delivery against the company's expectation to exceed this year's return target, given that the release does not print the target figure.
- Pace of the pulled-forward investments toward the 11-13% near-term goal, which the company describes as the next waypoints on the path to sustainable returns of 14-15%.
- Provision trajectory: the net ACL build of $333 million in 3Q'26 and the USCC reserve build of $208 million, both attributed by the filing to macroeconomic outlook changes.
- Markets revenue after the 13% sequential decline, particularly Equity markets and prime balances, which the filing states were up over 40%.
- USCC non-interest revenue, which the filing attributes to higher partner payment accruals and rewards costs, and new card account acquisitions.
- Deposit growth in Services and Wealth, which drove NII growth in the quarter, and the CET1 and SLR trend given the decline in the SLR to 5.0%.
Balance sheet and cash flow
- CET1 capital ratio of 12.8% (preliminary) at quarter end, unchanged from the prior quarter and down from 13.3% in the prior-year period. Filing: driven by net income and a lower deduction from DTA and other, offset by common share repurchases, common and preferred dividends and unrealized losses on AFS securities.
- Supplementary Leverage ratio of 5.0% (preliminary), versus 5.2% at the end of the prior quarter and 5.5% in the prior-year period.
- Total allowance for credit losses of $22.4 billion versus $23.8 billion at the end of the prior-year period; total ACL on loans of $20.1 billion versus $19.2 billion; reserve-to-funded loan ratio of 2.5% versus 2.7%.
- Total non-accrual loans decreased $0.4 billion, or 12%, year over year to $3.3 billion. Corporate non-accrual loans decreased $0.3 billion (16%) to $1.7 billion, driven by upgrades and repayments in Markets, partially offset by idiosyncratic downgrades in Services. Consumer non-accrual loans decreased $0.1 billion (5%) to $1.5 billion, driven by Wealth, partially offset by Legacy Franchises in All Other.
- Client investment assets of 759 ($B) in Wealth (3Q'26 preliminary) versus 727 in 2Q'26 and 660 in 3Q'25; Wealth net new investment assets of 38 ($B) versus 16 and 19. Filing notes Client investment assets include an additional $10B associated with client insurance policies not previously reported, starting 1Q'26.
- Services AUC/AUA of 35 ($T) (3Q'26 preliminary), up 16% year over year.
Analysis
Citi reported third-quarter 2026 net income of $5,245 million, or $2.85 per diluted share, on total revenues, net of interest expense, of $23,845 million. Against the third quarter of 2025, revenues rose 8% and reported EPS rose 53%. The release states that the prior-year period included a goodwill impairment of $726 million ($714 million after-tax) tied to the agreement to sell a 25% equity stake in Banamex, and that excluding this notable item prior-year EPS was $2.24, so the 27% growth on that basis is the figure to read against the 53% reported change. Operating expenses of $13,952 million were down 2% on a reported basis and up 3% excluding the notable item, and the efficiency ratio improved to 58.5% from 64.7%.
Sequentially the picture is weaker. Revenues fell 4% from $24,766 million, Markets revenues fell 13% to $6,113 million, with Equity markets down 25%, and Banking revenues fell 11%. Services ($6,614 million, up 15% year over year) and Wealth ($3,269 million, up 15%) carried the year-over-year growth, with Services net interest income up 17% on higher deposit balances and spreads. Average deposits of $1,528 billion rose 11% year over year, and average loans of $809 billion rose 12%, primarily driven by Markets, Services, USCC and Wealth according to the filing.
Credit costs and the reserve position are a mixed read. Total provision for credit losses rose 6% year over year to $2,586 million, with a net ACL build of $333 million against $145 million a year earlier and net credit losses flat at $2,217 million. Total non-accrual loans fell 12% year over year to $3.3 billion, and the reserve-to-funded loan ratio fell to 2.5% from 2.7%. USCC non-interest revenue declined 62% year over year, which the filing attributes to higher partner payment accruals and rewards costs, while All Other net credit losses rose 46% on Mexico Consumer volume and seasoning.
Returns and capital: ROE was 10.1% (from 11.4% in 2Q'26) and RoTCE was 11.5% (from 13.0%). The company returned $4.1 billion to common shareholders, with a payout ratio of 85%. CET1 held at 12.8%, unchanged sequentially, while the SLR fell to 5.0% from 5.2%. Book value per share rose 7% to $115.61 and tangible book value per share rose 6% to $101.59 year over year.
Outlook: the release does not print a numerical full-year target. The CEO states that Citi expects to exceed this year's return target while pulling forward investments toward an 11-13% near-term goal, described as the next waypoints toward sustainable returns of 14-15%. Figures that merit attention are the sequential Markets decline, the quarter-on-quarter fall in RoTCE, the USCC non-interest revenue decline, and the widening All Other net loss.
Management, verbatim
Our performance in the quarter, which included the best third-quarter revenue in a decade, positive operating leverage and meaningful improvement in our returns, reflects the continued disciplined and consistent execution of our strategy.
Jane Fraser, Chair and CEO, Citi
Services delivered another standout quarter, up 15%, with momentum in every driver.
Jane Fraser, Chair and CEO, Citi
We returned over $4 billion to common shareholders while continuing to invest in growth and prepare for an AI-driven future. We expect to exceed this year's return target, even as we pull forward investments toward our 11-13% near-term goal —the next waypoints on our path to sustainable returns of 14-15%,
Jane Fraser, Chair and CEO, Citi
Not in the filing
stated, not guessed- Prior-quarter (2Q'26) diluted EPS, GAAP and non-GAAP, is not printed in the release.
- 3Q'26 EPS excluding the notable item is not printed separately; only the prior-year ex-notable EPS of $2.24 is given.
- Full-year or year-to-date 2026 results are not printed in the release.
- No numerical 2026 full-year return target or any other numerical forward guidance (revenue, expenses, tax rate) is printed; the RoTCE goal metric is not explicitly named.
- Prior-quarter and prior-year values for CET1 ratio and SLR changes are printed as levels only; changes are not printed.
- Total net interest income and total non-interest revenue values for Citigroup are not printed; only growth rates (14% and (4)%) are given.
- Total cash, total debt, total stockholders' equity and total common equity are not printed in the release.
- Operating cash flow and free cash flow are not printed.
- Share count and share repurchase amounts by period are not printed beyond the $4.1 billion total returned.
- Prior-year and prior-quarter values for the tax rate change, the Citigroup-level net interest income and non-interest revenue, and the reserve-to-funded loan ratio changes are not printed as changes.
- Consensus estimates and the share-price reaction are not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Citigroup filed a Form 8‑K reporting its third‑quarter 2026 financial results.
Ticker impact
Citigroup reported Q3 2026 net income of $5.2 bn, EPS $2.85, revenue $23.8 bn, a 53% EPS increase and $4 bn shareholder return.
likely upward pressure as market prices in the earnings beat and issued guidance.
The earnings beat, revenue growth, and sizable share repurchase indicate improved profitability and may attract buying.
Market effects
Banking sector may see broader rally on strong earnings from a major player.
U.S. financial stocks could benefit from the positive earnings surprise.
Large‑cap bank results can influence global risk sentiment and credit markets.
Counterpoint
If the market has already priced in the beat, a pull‑back could occur on profit‑taking.
Key entities
- companyCitigroup Inc.
U.S. global bank reporting Q3 2026 results.
