Citigroup third-quarter profit rises to $5.2 billion as revenue grows 8%

Citigroup Inc. (C) said Tuesday that net income for the third quarter of 2026 was $5.2 billion, or $2.85 per diluted share, on revenue of $23.8 billion.

The results were disclosed in a filing with the Securities and Exchange Commission that attached the company's earnings release and a quarterly financial data supplement.

Here's how the company did:

• Earnings per share: $2.85 vs. $1.86 a year earlier
• Revenue: $23.8 billion vs. $22.1 billion a year earlier
• Net income: $5.2 billion vs. $3.8 billion a year earlier

Earnings per share rose 53% as reported. Excluding a notable item in the prior-year period, the increase was 27%, from $2.24.

The prior-year period included a goodwill impairment of $726 million ($714 million after-tax), recorded in operating expenses. The charge related to Citi's agreement to sell a 25% equity stake in Grupo Financiero Banamex, S.A. de C.V. (Banamex).

Revenue increased 8% from the prior-year period. Growth in Services, Wealth, Markets and Banking was partly offset by a decline in All Other.

Compared with the second quarter, revenue fell 4% from $24.8 billion.

Operating expenses were $14.0 billion, down 2% from a year earlier on a reported basis. Excluding the prior-year notable item, expenses rose 3%, the company said.

The provision for credit losses was $2.6 billion. It 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.

The company returned $4.1 billion to common shareholders in the quarter through share repurchases and dividends. Its payout ratio was 85%.

Chair and CEO Jane Fraser said, “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.”

Here's how Citigroup's segments did during the quarter:

• Services: revenue $6.6 billion, up 15%; net income $2.6 billion, up 27%
• Markets: revenue $6.1 billion, up 6%; net income $1.7 billion, up 2%
• Banking: revenue $1.7 billion, up 6%; net income $378 million, up 40%
• Wealth: revenue $3.3 billion, up 15%; net income $585 million, up 93%
• U.S. Consumer Cards: revenue $4.7 billion, unchanged; net income $851 million, down 8%
• All Other, managed basis: revenue $1.4 billion, down 3%; net loss $955 million

Services revenue rose on growth in Treasury and Trade Solutions and Securities Services. Net interest income increased 17%, driven by higher average deposit balances and deposit spreads. Operating expenses in the segment rose 10% to $3.0 billion.

Markets equity revenue was $1.7 billion, up 14%, driven by prime services. Prime balances rose more than 40%, including new balances onboarded and market valuations. Fixed Income markets revenue was $4.4 billion, up 4%.

Investment Banking revenue was $1.4 billion, up 9%. Equity Capital Markets revenue increased 77%, as the business gained share in follow-ons and convertibles. Advisory revenue fell 4%, and Debt Capital Markets revenue fell 3%.

Wealth revenue was $3.3 billion, up 15%, driven by growth across all businesses. Client investment assets reached $759 billion, up 15%, in preliminary figures for the quarter.

U.S. Consumer Cards non-interest revenue fell 62%, driven by higher partner payment accruals and rewards costs. Net credit losses fell 4% from the prior-year period to $1.7 billion.

Capital ratios held steady. The Common Equity Tier 1 capital ratio was 12.8%, unchanged from the prior quarter, and the supplementary leverage ratio was 5.0%, down from 5.2%. The filing said ratios as of Sept. 30 are preliminary.

Book value per share was $115.61, up 7% from a year earlier. Tangible book value per share was $101.59, up 6%.

Return on average tangible common equity was 11.5%, against 8.0% a year earlier and 13.0% in the second quarter. The efficiency ratio was 58.5%.

Fraser said, “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%.”