Citigroup reported second-quarter 2026 net income of $5.8 billion, up from $4.0 billion a year earlier, as higher revenues, including its best quarterly revenue in a decade, and a lower provision for credit losses lifted profit 45%. Diluted earnings per share climbed to $3.15 from $1.96, the New York-based bank said in its earnings release. Chair and chief executive Jane Fraser said the firm delivered double-digit revenue growth overall and in four of its five businesses.
Group revenues of $24.8 billion rose 14% year-on-year, the best quarterly top line Citi has produced in ten years. Return on tangible common equity was 13.0% for the quarter, up from 8.7% a year earlier.
MARKETS AND SERVICES LEAD THE CHARGE
The standout line was equities trading, where revenue was 45% higher than in the same period a year earlier driven by derivatives on higher client activity and prime services, with prime balances up nearly 60%. Fixed income markets revenues rose 7% and total markets revenues 17% to $7.0 billion.
Services revenues rose 18% to $6.4 billion, which Fraser called the business's highest ever quarterly revenue, with a return on tangible common equity of 30.9%. Banking revenues rose 34%, driven by a 44% jump in investment banking revenues as debt and equity capital markets fees surged, while advisory revenues fell 4% and corporate lending declined. U.S. Consumer Cards revenues edged up 1% as investment costs weighed on non-interest revenue, while Wealth revenues rose 13%, their ninth consecutive quarterly increase.
EFFICIENCY AND CAPITAL IN FOCUS
Expenses of $14.2 billion, up 5%, produced an efficiency ratio of 57.4%, down from 62.7% a year earlier. The release attributed the rise in expenses to higher compensation and benefits, transactional and product servicing expenses and deposit insurance costs, partly offset by lower professional services expenses.
The provision for credit losses fell to $2.5 billion from $2.9 billion a year earlier, reflecting $2.4 billion of net credit losses and a net reserve build of $118 million. The CET1 capital ratio was 12.8%, and Citi returned about $5.0 billion to common shareholders through share repurchases and dividends during the quarter. Fraser said in the release that Citi would increase its planned dividend by 12% and had launched its $30 billion buyback plan.
Citi reported on 14 July 2026, the same morning as JPMorgan Chase, Bank of America, Wells Fargo and Goldman Sachs.