Citigroup's Wealth Net Income Nearly Doubles On Higher Deposit Spreads

Citigroup (NYSE:C) raised its full-year 2026 ROTCE outlook to over 11% and increased its net interest income growth forecast to mid-to-high 6%. Q3 net income rose 17% YoY to $5.2B, with revenue up 8% to $23.8B. AI investments are driving cost savings and efficiency gains. Management expects Q4 trading revenue to decline due to seasonal factors. Shares were up 0.46% premarket.

Wall Street banks reported Q3 dealmaking fees totaling $8.47B, up 15% YoY but down 7.5% QoQ. Goldman Sachs (GS) saw a 22% YoY increase, while JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC) also reported gains. Executives suggest deals are delayed, not canceled, due to market volatility.

Citigroup (C) reported Q3 results with $2.586B in credit loss provisions, an 8% YoY drop in consumer card profits, and a 15% rise in Wealth Management revenue. The bank plans to deconsolidate Banamex by early 2027 and expects $9B in translation adjustment losses. Trading revenue was strong, and the bank returned capital via buybacks and dividends. Citi aims for a 2026 ROTCE above 11% and raised its net interest income outlook.

Goldman Sachs and Citigroup beat earnings expectations, while Wells Fargo reported softer revenue and JPMorgan missed profit targets. Goldman's equity trading surged 72%, driving its revenue and net income up. JPMorgan saw a 49% increase in equity markets revenue but weaker fixed-income trading. Citi's earnings rose 40%, and Wells Fargo increased credit provisions, highlighting the impact of higher rates on banks.

Citigroup reported its best Q3 revenue in a decade, but faced challenges like flat consumer cards revenue and expected market revenue declines. Expenses rose 3%, and cost of credit was $2.6 billion. CEO Jane Fraser and CFO Gonzalo Luchetti reaffirmed confidence in exceeding the full-year ROTCE target of above 11% and reiterated near-term targets of 11% to 13% for 2027-2028. The firm is investing in technology and marketing, with $3 billion in buybacks in Q3.

Citigroup reported Q3 2026 net income of $5.2B, up 17% YoY, with EPS at $2.85 and ROTCE at 11.5%. Revenue rose 8% to $23.8B, the highest Q3 in a decade. Services and Wealth revenues grew 15%, while US Consumer Cards revenue was flat. Expenses decreased 2%, and the CET1 ratio was 12.8%. The company returned $4B to shareholders, including $3B in buybacks. Full-year ROTCE is expected to exceed 11%.