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NEW YORK--(BUSINESS WIRE)--The Board of Directors of Citigroup Inc. today declared a quarterly dividend on Citigroup's common stock of $0.67 per share, payable on August 28, 2026, to stockholders of record on August 3, 2026. The Board of Directors of Citigroup Inc. also declared dividends on Citigroup's preferred stock as follows: – 6.250% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series T, payable August 17, 2026, to holders of record on August 7, 2026. Holders of depositary rece.

Babcock International PLC (LSE:BAB), the FTSE 100 engineering and defence group, led the blue-chip risers with a 6% gain after Citi said the appointment of John Healey as chancellor should prove good news for UK defence shares.

BAE Systems PLC (LSE:BA.), Europe's largest defence contractor, climbed 3.3%.

Citi argued the market would welcome Healey's move to the Treasury, given that he resigned as defence minister earlier this year, explicitly citing a lack of funding as his reason for going.

The bank said that while Healey would face many competing demands on spending as chancellor, and the scale of any defence allocation remained uncertain, UK defence stocks were likely to perform well.

Citi pointed to Babcock and QinetiQ (up 4%) as the biggest potential beneficiaries, with both generating around 60% to 65% of sales from UK defence.

BAE Systems follows, with roughly 25% to 30% of its sales tied to the UK.

Thales and Leonardo, the French and Italian defence groups, each derive around 10% to 15% of sales from the same source.

The reaction underlines how closely the sector's fortunes are now bound to government budget decisions.

Defence shares across Europe have been among the strongest performers over the past two years, buoyed by rising military spending commitments and heightened geopolitical tension.

A chancellor who quit the frontbench over defence funding gives investors reason to bet that the Treasury will look more favourably on the sector.

Citi's note suggests the appointment removes at least some of the uncertainty that had hung over future budget settlements.

Key Takeaways Citigroup targets 14-15% medium-term ROTCE through growth, cost discipline and capital productivity.C expects $2-$2.5B annualized savings by 2026 through restructuring, automation and AI investments.C repurchased $4B of stock in Q2 and plans continued buybacks under its $30B authorization. Citigroup Inc.'s (C - Free Report) second-quarter 2026 results underscore the progress of its multi-year transformation, with stronger profitability signaling that the strategy is beginning to pay off. With this, management targets a medium-term return on tangible common equity (ROTCE) of 14-15%.

Client-driven growth should be a key ROTCE catalyst. C’s second-quarter 2026 revenues rose 14.3%, marking its highest quarterly revenues in a decade, supported by broad-based growth across Services, Markets, Banking and Wealth. Services benefited from higher deposits and cross-border activity, while trading, investment banking and rising client assets supported the other businesses. With Services, Markets, Banking and Wealth generating ROTCE of 30.9%, 17%, 18% and 14.4%, respectively, continued growth in these higher-return franchises should improve Citigroup’s business mix and lift consolidated ROTCE. 

Efficiency represents the second major lever. Citigroup’s organizational overhaul is simplifying governance through workforce reductions, fewer management layers, process standardization and increased automation. Combined with investments in technology and artificial intelligence, these initiatives are expected to generate $2-$2.5 billion in annualized savings by 2026. Management is targeting an efficiency ratio of 60% for 2026 and below 55% over the medium term.

The third driver is capital productivity. Citigroup is reallocating resources toward businesses capable of generating returns above its cost of capital while reducing the drag from lower-return and legacy operations. This should increase earnings generated per dollar of tangible common equity. Share repurchases provide an additional benefit by reducing the equity base and supporting per-share returns. C repurchased $4 billion of its common stock in the second quarter and intends to continue buybacks under its $30-billion authorization.

Overall, achieving a 14-15% medium-term ROTCE will require more than revenue growth alone. C must sustain growth in its higher-return businesses, convert that growth into positive operating leverage and deploy capital more efficiently. The recent improvement indicates progress, but the durability of the gains will depend on continued execution, lower transformation costs and a reduced contribution from underperforming businesses.

ROTCE Targets of Other BanksSimilar to Citigroup, several leading banks, including Bank of America (BAC - Free Report) and Citizens Financial Group, Inc. (CFG - Free Report) , have established medium-term ROTCE targets, supported by growth initiatives and operational improvements.

Citizens Financial expects return on average tangible common shareholders’ equity of 16-18% over the medium term. Citizens Financial expects to achieve this objective through the execution of its strategic initiatives, supported by anticipated net interest income tailwinds between 2025 and 2027.

Bank of America also aims to deliver a medium-term ROTCE of 16-18%. Bank of America’s strategy is underpinned by sustainable revenue growth, disciplined expense management and deeper client engagement, reinforcing a credible path toward achieving its profitability target.

C’s Price Performance, Valuation & EstimatesShares of Citigroup have surged 39.7% in the past year compared with the industry’s growth of 24.3%.

Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 10.68X, below the industry’s average of 14.10X.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for C’s 2026 and 2027 earnings implies year-over-year rallies of 39.9% and 15.7%, respectively. Estimates for both years have been revised upward over the past month.

Estimate Revision Trend

Image Source: Zacks Investment Research

Citigroup currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NEW YORK--(BUSINESS WIRE)--Today, as part of its five-year Blueprint for Housing Opportunity initiative, the Citi Impact Fund announced that it will invest $25 million in companies propelling innovative solutions for housing access, supply and affordability in communities nationwide. These investments will support entrepreneurs and leaders at the forefront of this work, who are leveraging technology to drive innovation across the housing ecosystem — from AI-enabled platforms that help contracto.

Citi Bank logo appears in this illustration taken December 1, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesCitigroup shares fell despite a 45% rise in second-quarter net incomeCitigroup forecast higher expenses in the second half of the yearBank expects to spend more than the $800 million initially predicted to lay off employeesNEW YORK, July 15 (Reuters) - Analysts revised estimates for Citigroup on Wednesday after the bank's management surprised ‌investors and forecast higher expenses in the second half of the year.

Despite beating analysts' estimates in the second quarter with a 45% rise in net income, Citigroup shares tanked 5.3% on Tuesday.

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"The culprit was a combination of high expectations and muddled messaging ​on the second half outlook during the earnings call," Bank of America analyst Ebrahim Poonawala said in ​a report to clients on Wednesday. Before the earnings call, Citi shares were up ⁠2%.

The bank reported a return on tangible common equity of 13.1% in the first half of the year, ​but decided to stick with guidance of 10% to 11% return for the year. "This inspired half a dozen ​questions on the order of, 'You're saying the second half of 2026 will be dreadful?'" wrote Oppenheimer analyst Chris Kotowski in his Wednesday report, "The Problem with Giving Guidance."

CEO Jane Fraser and CFO Gonzalo Luchetti told analysts during the earnings call that the bank ​decided to pull forward some of the $5 billion in additional investments the bank projected as needed to increase ​market share during the investor day. The bank also expects to spend more than the $800 million initially predicted to lay off ‌employees.

Responding ⁠to a question, Fraser said the investments would be for the "offense" and not catching up.

"This is not restructuring, but offensive moves to better gain share and compete in a more competitive environment, such as in credit cards," said Wells Fargo analyst Mike Mayo, who still expects the bank to exceed its 11% profitability target in 2026.

Kotowski ​said the outlook for higher ​expenses prevented raising estimates ⁠by more than he did.

Poonawala said the strategy is a "tactical blip" that does not change his target price or buy rating. But he raised the estimates for ​the efficiency ratio at the bank to 60.3% from a previous estimate of 59.6%. ​BofA also ⁠changed its earnings-per-share estimate for 2026, raising it to $11.09 from $10.79 before the second quarter.

Jefferies' David Chiaverini lowered earnings-per-share estimates for 2026 and 2027 to $10.65 to $12.60 from $10.95 to $12.75. But the analyst also maintained its buy rating.

KBW's Chris McGratty was among ⁠the ​most optimistic, saying the expense pull forward was used as an ​excuse to take gains with the stock. KBW raised by 1% its EPS estimate for the full year from $11 to $11.15, less than would ​be possible considering the second-quarter beat.

Citigroup declined to comment on the reports.

Reporting by Tatiana Bautzer; Editing by Mark Porter

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Tatiana Bautzer is a U.S. banking correspondent at Reuters in New York. She previously covered banks in Brazil, breaking news on deals by major global corporations, initial public offerings and bankruptcies. She has also delved into corruption scandals at Brazilian conglomerates and business disputes between billionaires. Prior to joining Reuters in 2015, Bautzer worked for business magazines Exame and Istoe Dinheiro and newspapers Valor Economico and O Estado de S. Paulo. She previously served as international correspondent for Valor Economico in Washington, D.C., covering multilateral institutions and trade. Bautzer holds a B.A. in Journalism and an MBA from the University of Sao Paulo.

NEW YORK--(BUSINESS WIRE)--Today Citigroup reported second quarter 2026 results, which can be found on its website at https://www.citigroup.com/global/investors. A Quarterly Financial Data Supplement with additional financial, statistical and business-related information, as well as business and segment trends, is also available. Citi will host a conference call today at 11 a.m. (ET) to review these results. To attend the live webcast, please visit https://citi-second-quarter-2026-earnings-resu.

Key Takeaways Citigroup's Q2'26 EPS rose to $3.15 from $1.96, beating the $2.72 consensus estimate. Higher NII and fee growth drove revenues up 14.3%, with all five core businesses posting gains.Net income jumped 45.1% to $5.8B, though higher expenses and weaker capital ratios offset momentum. Citigroup Inc. (C - Free Report) reported second-quarter 2026 earnings per share of $3.15, which surpassed the Zacks Consensus Estimate of $2.72. In the prior-year quarter, the company reported earnings per share of $1.96. 

C shares rose nearly 1.8% in the early trading session. A full day’s trading session will depict a clearer picture. 

The company’s results benefited from a year-over-year rise in net interest income (NII) and growth across each of its five core businesses. Citigroup also registered a year-over-year increase of 44% in investment banking revenues and positive operating leverage. However, higher operating expenses and a weaker capital position acted as offsetting factors. 

Net income in the quarter was $5.8 billion, up 45.1% from the prior-year quarter. 

C’s Revenues Increase, Expenses Rise Revenues, net of interest expenses, were $24.8 billion in the second quarter of 2026, up 14.3% year over year. The top line surpassed the Zacks Consensus Estimate by 4.6%. 

NII rose 12.8% year over year to $17.1 billion, while non-interest revenues increased 17.7% to $7.6 billion. 

Citigroup’s operating expenses increased 4.7% year over year to $14.2 billion. The rise was driven by higher compensation and benefits, transactional and product servicing expenses, deposit insurance costs and the impact of foreign exchange translation, partly offset by lower professional services expenses. 

Citigroup’s Segmental Performance In the Services segment, total revenues, net of interest expenses, were $6.4 billion, up 17.5% year over year. The increase reflected growth in Treasury and Trade Solutions and Securities Services.

The Markets segment’s revenues increased 17.2% year over year to $7 billion, driven by growth in Fixed Income and Equity markets revenues. 

Banking revenues were $1.9 billion, up 34% year over year, primarily driven by a rise in Investment Banking revenues. Debt Capital Markets revenues rose 65% and Equity Capital Markets revenues surged 92%, while Advisory revenues declined 4%. 

In the Wealth segment, revenues were $3.2 billion, rising 12.9% year over year. The increase was driven by growth across Citigold and Retail Banking, the Private Bank and Wealth at Work. 

U.S. Consumer Cards revenues were $4.5 billion, up 1.1% year over year, driven by higher NII on increased interest-earning balances, largely offset by lower non-interest revenues. 

In the All Other segment, on a managed basis, revenues were $1.7 billion, up 1.2% year over year. 

C’s Balance Sheet Position Solid At the end of the second quarter of 2026, the company’s deposits rose 3.2% from the prior quarter to $1.49 trillion. Its loans also increased 4.2% on a sequential basis to $793.6 billion. 

Citigroup’s Credit QualityTotal non-accrual loans decreased 3.7% year over year to $3.2 billion. Total allowance for credit losses was $22.2 billion at the quarter-end, down from $23.7 billion in the prior-year period. 

Provisions for credit losses and benefits, and claims were $2.5 billion in the quarter, down 12.2% year over year. 

C’s Capital Position Weak At the end of the second quarter of 2026, Citigroup’s Common Equity Tier 1 capital ratio was 12.8%, down from 13.5% in the second quarter of 2025. The company’s supplementary leverage ratio in the reported quarter was 5.2%, down from the prior-year quarter’s 5.5%. 

Citigroup’s Capital Deployment During the quarter, Citigroup returned nearly $5 billion to common shareholders through share repurchases and dividends. 

Our Viewpoint on C Citigroup’s second-quarter 2026 results reflected broad-based business strength, supported by higher NII, solid fee momentum, and positive operating leverage. Growth across Services, Markets, Banking, Wealth and U.S. Consumer Cards was encouraging. Yet, elevated expenses and pressure on capital ratios remain watch points. 

The company completed the sale of its Consumer Banking business in Poland and 22.6% of its 24% equity stake in Banamex during the quarter. The company’s continued investments, disciplined execution, and focus on its five interconnected businesses are expected to support its performance.

Citigroup Inc. Price, Consensus and EPS SurpriseCurrently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Earnings Dates & Expectations of Other Banks M&T Bank (MTB - Free Report) is slated to report second-quarter 2026 numbers on July 15. 

Over the past week, the Zacks Consensus Estimate for M&T Bank’s quarterly earnings has remained unchanged at $4.66 per share. This indicates a 8.9% rise from the prior-year quarter’s reported figure. 

U.S. Bancorp (USB - Free Report) is scheduled to release second-quarter 2026 earnings on July 16. 

The Zacks Consensus Estimate for U.S. Bancorp’s quarterly earnings has been revised upward to $1.28 per share over the past seven days. This indicates a 15.3% rise from the prior-year quarter’s actual. 

MarketBeat Week in Review – 07/06 - 07/10Citigroup NYSE: C reported a stronger second quarter of 2026, with management pointing to broad-based revenue growth, improved returns and continued capital returns, while cautioning that second-half results could be affected by normal seasonality and a deliberate increase in investment spending.

Chair and Chief Executive Officer Jane Fraser said the quarter “capped a very good first half of the year,” as Citi reported net income of $5.8 billion, earnings per share of $3.15 and return on tangible common equity, or ROTCE, of 13%. Revenue reached $24.8 billion, which Fraser described as Citi’s best quarterly revenue in a decade. She said the firm delivered more than 9% positive operating leverage, with double-digit revenue growth for the company and in four of its five main businesses.

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Fiserv’s Debit Network Talks Raise a Bigger Question for Visa and MastercardChief Financial Officer Gonzalo Luchetti said total revenues rose 14% year over year, while expenses increased 5% to $14.2 billion. Citi’s efficiency ratio was below 58% for the quarter. On a year-to-date basis, Luchetti said revenues were up 14%, expenses were up 6% and ROTCE was 13.1%.

Services, Markets and Banking Drive Growth Fraser said Citi’s Services business delivered its highest quarterly revenue ever and generated a return of more than 30%. Luchetti said Services revenue rose 18%, supported by growth in both Treasury and Trade Solutions and Securities Services. Average deposits in the business increased 19%, while cross-border transaction value rose 13% and assets under custody and administration increased 22%.

Industrials Are Leading in 2026, But These ETFs Take Different RoutesMarkets revenue rose 17%, crossing $7 billion again during the quarter. Luchetti said fixed income revenue increased 7%, while equities revenue rose 45%, supported by momentum in derivatives and prime services. Prime balances grew nearly 60%, reflecting growth from new and existing clients as well as higher market valuations. The Markets business generated net income of $2.4 billion and an ROTCE of 17%.

Banking revenue increased 34%, led by a 44% rise in investment banking revenue. Luchetti said debt capital markets revenue rose 65%, marking Citi’s second-best quarter ever in that category, while equity capital markets revenue increased 92% amid strong market conditions. M&A revenue declined 4%, though management said the pipeline remained healthy. Fraser said Citi participated in the majority of the top equity and debt issuances during the quarter, including lead roles on IPOs such as SpaceX and Cerebras.

Wealth Improves Returns, Cards Reflect Investment Push Citi’s Wealth business posted its ninth consecutive quarter of revenue growth, with revenue up 13%. Luchetti said growth was broad-based, including a 17% increase in Citigold and the Retail Bank, 5% growth in the Private Bank and 3% growth in Wealth at Work. Net new investment asset flows totaled $15.7 billion in the quarter and more than $56 billion over the last 12 months. Wealth generated net income of $583 million and an ROTCE of 14.4%.

Fraser said Citi is beginning to see tangible benefits from integrating retail branches into Wealth, noting that referrals from the retail bank to Citigold increased 23%.

In U.S. Consumer Cards, revenue rose 1%, as growth in net interest income was largely offset by lower non-interest revenue. Luchetti said the results reflected Citi’s April acquisition of the additional American Airlines co-branded card portfolio, which added more than $6 billion in loans from more than 2 million accounts. General purpose cards acquisitions rose 135%, spend volume increased 12% and average loans rose 8%, partially offset by declines in private label cards.

Expenses in U.S. Consumer Cards increased 10%, reflecting higher severance, customer engagement costs, legal expenses and marketing. Luchetti said Citi expects expense growth to outpace revenue growth in some coming quarters as the company invests in engagement and acquisitions. The business delivered net income of $852 million and an ROTCE of 22%.

Capital Returns and Balance Sheet Citi ended the quarter with a common equity tier 1 ratio of 12.8%, about 120 basis points above its current regulatory requirement. Luchetti said the company continued to prioritize returning capital to shareholders while supporting client-driven growth, including $4 billion in common stock repurchases during the quarter.

Fraser said Citi launched its $30 billion common stock repurchase commitment and plans to increase its dividend by 12%. Luchetti said the dividend increase is expected to begin in the third quarter, subject to quarterly board approval.

The company completed the sale of its consumer business in Poland during the quarter. Fraser also said Citi closed the sale of an additional 22.6% equity stake in Banamex and remains on track to close an additional 1.4% this summer, bringing the total sold to 49%. In the question-and-answer session, Fraser said Citi does not expect additional Banamex sales in 2026 and expects to deconsolidate its ownership in early 2027, followed by an IPO “as and when market conditions allow.”

Credit Quality and Outlook Citi’s cost of credit was $2.5 billion, primarily reflecting net credit losses in U.S. Consumer Cards and a firmwide net allowance for credit losses build of $118 million. Luchetti said Citi had more than $22 billion in total reserves at quarter-end and a reserve-to-funded-loans ratio of 2.5%. He described the corporate portfolio as high quality, with 79% of corporate exposure rated investment grade.

Management maintained its full-year 2026 ROTCE target of 10% to 11%, despite the stronger first-half result. Luchetti said Citi continues to expect net interest income excluding Markets to grow about 5% to 6% for the year and expects its full-year efficiency ratio to be around 60% as it increases investments and incurs additional severance tied to future efficiencies.

Fraser emphasized during the call that the company is focused on longer-term targets rather than maximizing the 2026 “waypoint.” She said that if conditions remain constructive, Citi intends to “lean in” with additional investments and actions designed to create value over the medium term. In response to analyst questions, Fraser said the spending is “100% on the offense” and tied to organic growth opportunities.

Fraser also said Citi continued to make progress on its transformation work, with “a large body of work” passing internal audit validation during the quarter. She said nearly nine out of 10 Citi employees are using the company’s AI tools, which she said are helping improve productivity, client experience and speed to market for products such as Citi Payments Express and Citi Wealth Advisor Insights.

About Citigroup NYSE: CCitigroup Inc is a global financial services company headquartered in New York City with roots tracing back to the City Bank of New York, founded in 1812. The modern Citigroup was created through the 1998 merger of Citicorp and Travelers Group and has since operated as a diversified bank holding company that provides a broad range of banking and financial products and services to consumers, corporations, governments and institutions worldwide.

Citi's principal businesses include retail and commercial banking, credit card and consumer lending products, wealth management and private banking, and a full suite of institutional services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Citigroup beat Wall Street estimates for second-quarter profit after reporting its highest quarterly revenue in a decade, as strong trading activity and higher investment banking fees boosted results.

The bank reported net income of $5.8 billion, or $3.15 per share, representing a 45% increase from the same period last year.

Analysts had expected earnings of $2.74 per share, according to data compiled by LSEG.

Revenue rose 14% year over year to $24.8 billion, exceeding Wall Street expectations.

At the time of writing, Citigroup shares rose 2.12% during Tuesday's trading session.

Citi's shares have gained 20.6% so far this year, outperforming its Wall Street peers as investors respond positively to the bank's restructuring efforts.

Volatile financial markets provided a significant boost to Citi's trading operations during the quarter.

The US-Iran war rattled global markets and triggered sharp swings in oil prices and other asset classes.

The market uncertainty prompted investors to rebalance portfolios and adjust their risk exposure, creating favorable conditions for trading activity at major banks.

Citi reported a 45% year-over-year increase in equities trading revenue, while fixed-income markets revenue rose 7%.

Within fixed income, rates and currency trading increased by 1% from a year earlier.

Other fixed-income revenue, including commodities, climbed 25%.

Trading desks across Wall Street benefited from the heightened market volatility.

The ongoing rally in AI-related stocks also contributed to increased trading activity during the quarter.

Higher oil prices linked to the US-Iran conflict also renewed concerns over inflation, leading investors to reassess expectations for the Federal Reserve's future interest-rate path.

Investment banking was another key contributor to Citi's quarterly performance.

Revenue from investment banking increased 44% to $1.55 billion during the quarter, while total banking revenue climbed 34% to $1.92 billion despite lower corporate lending revenue.

Lighter regulation under the Trump administration strengthened executive confidence in pursuing acquisitions, while growing demand for AI-related assets continued to support dealmaking activity.

Global mergers and acquisitions volumes have already exceeded $3 trillion this year.

According to Dealogic data, Citi has advised on transactions worth more than $300 billion.

During the quarter, Citi secured a role as one of the underwriters for SpaceX's $75 billion initial public offering.

The bank also advised on major transactions, including the $44.8 billion combination of Unilever and McCormick's food businesses.

Profitability targets remain on trackCiti's return on tangible common equity (ROTCE) reached 13% during the quarter.

The result was at the upper end of the bank's long-term target range of 11% to 13% for 2027 and 2028.

The earnings growth comes as the bank continues its broader restructuring efforts aimed at improving profitability.

Chief Executive Officer Jane Fraser has set higher performance targets as part of an ongoing overhaul that includes selling consumer businesses, reducing management layers, and strengthening risk and control functions.

Citigroup released its quarterly earnings alongside those of several of the largest US lenders.

JPMorgan, Goldman Sachs, Wells Fargo, and Bank of America also reported strong quarterly results, with each posting higher profits.

14.7.2026 16:11, IBM, BAC, C, AAPL, JPM, GS, WFC

Index Dow Jones +0,22 % na 52613,05 b., S&P 500 +0,38 % na 7544,24 b., Nasdaq Composite +0,73 % na 26061,63 b.

Americké akciové indexy na začátku obchodování mírně rostou, index S&P 500 přidává 0,38 %.

Akcie IBM padají o 23 % poté, co technologická společnost představila předběžné výsledky za 2Q. Tržby ve druhém kvartále vzrostly meziročně pouze o 1 % na 17,2 mld. USD, zatímco analytici očekávali 17,86 mld. USD. Z jednotlivých segmentů rostl pouze software, a to o 5 %. Tržby z infrastruktury naopak klesly o 7 % a poradenská divize stagnovala (při konstantních měnových kurzech +1 %).

Akcie softwarových a IT/profesionálních služeb obecně klesají poté, co předběžné tržby IBM za druhé čtvrtletí nedosáhly konsenzuálního odhadu.

Dneškem naplno odstartovala výsledková sezóna v USA za 2Q, když své hospodářské výsledky zveřejnily velké banky, včetně JPMorgan, Bank of America, Citigroup, Goldman Sachs a Wells Fargo.

Akcie Apple klesají  o 1,1 % poté, co banka KeyBanc snížila doporučení pro akcie na underweight, přičemž očekává slabší poptávku po zařízeních a pomalejší růst výnosů ze služeb v USA.

Index S&P 500 +0,38 % na 7544,24 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,6 % Zdravotní péče -1,5 % Průmysl +1,1 % Nezbytná spotřeba -0,2 % Finanční sektor +0,8 % Zbytná spotřeba -0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Crowdstrike Holdings (CRWD) +7,9 % IBM (IBM) -23 % Lumentum Holdings (LITE) +7,6 % Biogen (BIIB) -7,6 % Sandisk Corp (SNDK) +6,6 % Workday (WDAY) -7,0 % Goldman Sachs Group (GS) +6,4 % ServiceNow (NOW) -6,3 % Monolithic Power Systems (MPWR) +6,0 % Stryker Corp (SYK) -5,4 % Zdroj: Bloomberg

Michal Šnobl
Fio banka, a.s.
Prohlášení

SummaryCompaniesInvestment banking revenue jumped 44% to $1.55 billion in the quarterEquities trading revenue rose 45%, while fixed-income trading increased 7%Citi posts decade-high quarterly revenue of $24.8 billion, up 14%July 14 (Reuters) - Citigroup (C.N), opens new tab beat Wall Street estimates for second-quarter profit after reporting its highest quarterly revenue in a decade on Tuesday, as the bank benefited from robust trading income in a ​volatile market and strong investment banking fees.

The U.S.-Iran war has rattled global markets and driven sharp moves in oil prices and other assets, leading investors to rejig ‌their portfolios and adjust risk exposure. Volatile markets typically help lift trading revenues at big banks.

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Lighter regulation under the Trump administration has bolstered confidence among executives to pursue acquisitions, while the scramble for AI-related assets has added momentum to dealmaking activity.

Global M&A volumes have already surpassed $3 trillion this year, with Citi advising on deals worth over $300 billion, per Dealogic data.

Citi secured a spot as one of the underwriters for SpaceX's record-breaking $75 billion IPO in the quarter, ​as well as advising large M&A deals such as the $44.8 billion combination of Unilever and McCormick's food businesses.

Its revenues from investment banking jumped 44% in the quarter to $1.55 billion. Total ​banking revenues rose 34% to $1.92 billion, despite a fall in corporate lending revenue.

MARKETS A BRIGHT SPOTTrading desks across Wall Street have been reaping bumper ⁠revenues from the volatility, which has also extended to a highly lucrative AI-trade that has seen stocks rallying this year.

A surge in oil prices from the U.S.-Iran war has reignited concerns that higher ​energy costs could complicate the inflation outlook, leading investors to recalibrate expectations for the Federal Reserve's interest-rate path.

Citi's revenue in equities and fixed-income markets jumped 45% and 7%, respectively, from a year earlier. ​Rates and currency trading rose 1%, while other fixed income revenue, which includes commodities, came in 25% higher.

The bank reports results alongside the largest U.S. lenders on Tuesday, whose earnings offer a window into the health of the economy. JPMorgan (JPM.N), opens new tab, Goldman Sachs (GS.N), opens new tab, Wells Fargo (WFC.N), opens new tab and Bank of America (BAC.N), opens new tab reported strong quarters with a jump in profit across the board.

OVERHAUL IN FOCUSThe earnings growth comes as the bank vies for stronger profitability in the years to ​come. CEO Jane Fraser has outlined higher targets as part of a sweeping overhaul she has led to slim down the bank through the sale of consumer businesses while cutting management layers and ​strengthening risk and control functions.

It posted a 45% jump in net income to $5.8 billion, or $3.15 per share. Analysts on average expected it to report a profit of $2.74 per share, according to data compiled by LSEG.

Return on tangible ‌common equity (ROTCE) ⁠for the quarter was 13%, on the high end of the 11% to 13% target the bank has set for 2027 and 2028.

Its revenue was $24.8 billion, up 14% from a year earlier, also above Wall Street expectations.

Citi's shares, which are up 20.6% so far this year, have outperformed its Wall Street peers, as its overhaul takes shape. The stock slipped 1.5% in premarket trading on Tuesday, alongside peers.

Citigroup shares outpace Wall Street peersROBUST INTEREST INCOMEThe U.S. consumer has remained remarkably resilient despite elevated borrowing costs, supported by a still-solid labor market and wage growth, though spending patterns have become increasingly divided as lower-income households face rising living ​costs.

Still-high interest rates have continued to support net ​interest income at major banks, boosting returns ⁠on loans and other interest-earning assets, while credit quality has remained stable. The cards division's revenue rose by 1% but net income was up 12% to $852 million.

Citi's overall net interest income, the difference between what it earns on loans and pays out on deposits, rose 13% in the quarter.

It passed ​an annual stress test conducted by the Federal Reserve last month, which seeks to gauge the ability of large U.S. banks to weather a ​hypothetical downturn, enabling Citi to ⁠join peers in hiking dividends.

SPOTLIGHT ON WEALTH MANAGEMENTCiti has been trying to grow its wealth management business to emulate Wall Street peers that lean on its steadier, fee-based revenue compared with the volatility of trading.

While Citi's wealth unit remains smaller than those of several rivals, CEO Fraser has repeatedly ruled out acquisitions to narrow the gap, saying the bank's strategy is centered on organic growth.

The unit raked in $3.18 billion in ⁠revenue in ​the quarter, 13% above a year earlier, thanks to a broad recovery in markets that has pushed up asset values. ​It posted a 14.4% ROTCE, still substantially lower than peers.

Bank executives are also awaiting a series of regulatory changes favored by the industry, including a proposed overhaul of risk-based capital requirements under the Basel framework.

The changes could free up billions ​of dollars in capital, giving lenders greater flexibility to boost shareholder payouts or invest in growth initiatives.

Reporting by Tatiana Bautzer and Utkarsh Shetti in Bengaluru; Editing by Devika Syamnath

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Tatiana Bautzer is a U.S. banking correspondent at Reuters in New York. She previously covered banks in Brazil, breaking news on deals by major global corporations, initial public offerings and bankruptcies. She has also delved into corruption scandals at Brazilian conglomerates and business disputes between billionaires. Prior to joining Reuters in 2015, Bautzer worked for business magazines Exame and Istoe Dinheiro and newspapers Valor Economico and O Estado de S. Paulo. She previously served as international correspondent for Valor Economico in Washington, D.C., covering multilateral institutions and trade. Bautzer holds a B.A. in Journalism and an MBA from the University of Sao Paulo.

US banks could deliver broad earnings beats as strong capital markets activity, resilient economic conditions and improving wealth management flows support second-half 2026 and fiscal 2027 earnings revisions, Bank of America analysts wrote in a note ahead of the sector’s upcoming earnings reports.

The firm wrote that it expects all eight major banks it covers, including JPMorgan Chase & Co (NYSE:JPM, XETRA:CMC), Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC, XETRA:NWT), Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS), Morgan Stanley (NYSE:MS), Bank of New York Mellon Corp (NYSE:BK, XETRA:BN9), State Street Corp (NYSE:STT) and Northern Trust Corp (NASDAQ:NTRS), to exceed both Bank of America and consensus earnings-per-share estimates.

It added that potential upside in net interest income, particularly at JPMorgan and Citigroup, along with stronger wealth management flows at Morgan Stanley (NYSE:MS) and Northern Trust, could support positive investor reactions.

The firm noted that while investors often look past trading and investment banking revenue beats because they are not always incorporated into long-term estimates, stronger underlying revenue trends could lead to broader earnings revisions.

JPMorgan Chase is among the stocks Bank of America views as having the most asymmetric risk-reward setup heading into results. The firm wrote that investors remain focused on management’s cautious commentary around current earnings levels, with executives previously warning that the bank may be “over-earning” in the near term. However, Bank of America expects stronger capital markets revenue to support second-quarter earnings, raising its EPS estimate to $5.59 from $5.48.

Citigroup could also see continued momentum, with Bank of America writing that the company’s conservative guidance contrasts with a strong operating environment. The firm expects stronger capital markets revenue to lift its second-quarter EPS estimate to $2.65 from $2.60, while noting that investors will be watching progress toward return on tangible common equity targets.

For Wells Fargo, Bank of America wrote that investor focus will remain on net interest income growth and whether the bank can achieve its targeted returns while executing its broader growth strategy. The firm maintained its second-quarter EPS estimate of $1.72, noting that confidence around Wells Fargo’s ability to deliver on its net interest income outlook could be key for the stock’s performance following results.

Morgan Stanley enters earnings with positive momentum tied to its wealth management business, trading operations and international franchise, according to Bank of America. The firm wrote that investors will be watching net new asset growth in wealth management, particularly following recent initial public offerings and continued integration benefits from its workplace business. Bank of America raised its second-quarter EPS estimate for Morgan Stanley to $2.81 from $2.71 due to stronger capital markets revenue expectations.

Goldman Sachs is expected to report strong revenue trends, though Bank of America wrote that investors will be looking for evidence that earnings growth and return on equity remain sustainable following the stock’s recent outperformance. The firm raised its second-quarter EPS estimate to $14.11 from $13.18 on stronger capital markets revenue expectations.

Bank of America wrote that Goldman Sachs’ capital management, efficiency initiatives and ability to sustain returns through market cycles will remain key areas of investor attention. The firm added that while stronger trading and investment banking activity could drive an earnings beat, investors may place greater emphasis on the durability of future earnings growth and the bank’s premium valuation.

HomeIndustriesBankingDeep DiveDeep DiveAmong the largest U.S. banks, Citigroup is expected to show the greatest improvement by one important measure. But it still has a long way to go to reach its own performance target.July 12, 2026, 11:30 a.m. ET

Every quarter, the largest U.S. banks kick off earnings season with JPMorgan Chase reporting on the first day, typically along with one or two others. On Tuesday we’re in for something unusual, with five of the “Big Six” banks announcing results before the market open.

The five largest U.S. banks by total assets are JPMorgan Chase JPM, Bank of America BAC, Citigroup C, Wells Fargo WFC and Goldmans Sachs GS. They will all report second-quarter results Tuesday morning, followed by Morgan Stanley MS — the sixth largest — on Wednesday.

NY-headquartered Citigroup has been the perennial laggard of Wall Street for years, burdened by the legacy of the global financial crisis and an unmanageable corporate structure.

However, the narrative has flipped, with a renowned wealth manager, Josh Brown, recently calling Citi “one of the top bank stocks” to own – driven by a profound operational turnaround engineered by CEO Jane Fraser.

By aggressively divesting non-core international consumer operations and removing management layers, the bank has unlocked significant capital efficiency, he told CNBC.

Heading into its Q2 release, Citi shares C are up more than 30% versus its year-to-date low.

Brown’s bullish view on Citi stock is based on a combination of technical momentum and corporate restructuring.

According to him, the catalyst for change has been Fraser’s “shrinking to grow” strategy – exiting over a dozen overseas retail markets to focus on high-margin corporate services.

Brown particularly favours Citigroup’s global treasury and trade solutions franchise, which serves as the fundamental plumbing of international commerce.

Fraser’s visionary leadership has even helped Citi outperform its larger peers, JPMorgan and Bank of America, in the trailing 12 months.

A healthy 1.72% dividend yield makes Citigroup even more attractive to own in 2026.

In the near-term, Citi’s upcoming earnings could prove a tailwind that unlocks the next leg higher.

Expectations are for the investment bank to report $23.4 billion in revenue – up 7.8% on a year-over-year basis – on as much as $2.72 a share of earnings, which will represent 39% growth over last year's figure.

Crucially, options pricing is bullish heading into the company’s quarterly report. The put-to-call ratio on contracts expiring July 17, just days after the print, sits at 0.42 currently.

And the upper price on those contracts is set at about $145, indicating potential for a 4.2% increase in Citi shares from current levels.

Sentiment is structurally supported by the massive $30 billion share buyback program announced at Citi's May Investor Day.

The aggressive compression of shares outstanding is mechanically lifting the EPS trajectory faster than organic growth alone.

Ultimately, Citigroup’s transformation is proving that sometimes a giant must lean down to leap forward.

By shedding the dead weight of its legacy structure and focusing squarely on its core strengths, the bank has successfully shifted market sentiment from skepticism to strong optimism.

If the upcoming Q2 earnings report validates these aggressive restructuring efforts and meets Wall Street's heightened expectations, it will solidify the bank's new trajectory.

For investors who once viewed Citi as a value trap, the combination of technical momentum, a robust buyback program, and disciplined leadership makes the stock a compelling comeback story for the rest of 2026.

NEW YORK--(BUSINESS WIRE)--The Siam Commercial Bank (SCB) and Citi announce SCB as the first financial institution client globally to go live with Citi's newly integrated 24/7 USD Clearing and Citi Token Services solution. With this, Citi is enabling near real-time, round-the-clock, cross-border USD payments for its corporate and institutional clients. This collaboration is a demonstration of both institutions' commitment to digital innovation as a driver of commercial growth. For The Siam Comm.

Citigroup Inc. (NYSE:C) will release earnings for its second quarter before the opening bell on Tuesday, July 14.

Analysts expect the bank to report quarterly earnings of $2.64 per share, up from $2.04 per share in the year-ago period. The consensus estimate for Citigroup’s quarterly revenue is $23.37 billion. It reported $21.67 billion last year, according to Benzinga Pro.

On June 30, Oppenheimer analyst Chris Kotowski downgraded Citigroup from Outperform to Perform.

With the recent buzz around Citigroup, some investors may be eyeing potential gains from the company’s dividends too. As of now, Citigroup has an annual dividend yield of 1.71%, with a quarterly dividend of 60 cents per share ($2.40 per year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $349,925 or around 2,500 shares. For a more modest $100 per month or $1,200 per year, you would need $69,985 or around 500 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.40 in this case). So, $6,000 / $2.40 = 2,500 ($500 per month), and $1,200 / $2.40 = 500 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in dividend payments can affect the yield. If a company increases its dividend, its yield will also increase, provided the stock price remains unchanged. Conversely, if the dividend payment decreases, so will the yield.

C Price Action: Shares of Citigroup fell 0.1% to close at $139.97 on Thursday.

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LONDON--(BUSINESS WIRE)--Citi and the LPMCL today announce Citi's admission as a clearing member of London Precious Metals Clearing Limited (LPMCL), adding Loco London settlement services for gold, silver, platinum and palladium.

The new offering marks a major expansion of Citi Commodities’ global precious metals business as it delivers a more comprehensive product suite to its global client base.

“Citi’s admission as a clearing member of LPMCL represents a natural extension of our long‑standing precious metals business,” said José Cogolludo, Head of Commodities at Citi. “This role aligns well with our operating model and our commitment to supporting robust, efficient market infrastructure. We look forward to contributing to the continued strength and resilience of the London bullion market.”

James Cressy, Chair of LPMCL, said, “The addition of Citi as a clearing member of LPMCL demonstrates the openness and transparency of our membership process, allowing new entrants to join and participate in the clearing and settlement of the predominate global over the counter precious metals market.”

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

Citigroup Inc. (NYSE:C) will release earnings for its second quarter before the opening bell on Tuesday, July 14.

Analysts expect the New York-based company to report quarterly earnings of $2.64 per share, up from $2.04 per share in the year-ago period. The consensus estimate for Citigroup’s quarterly revenue is $23.37 billion. It reported $21.67 billion last year, according to Benzinga Pro.

On June 4, Citigroup announced $2.75 billion redemption of 1.462% fixed rate/floating rate notes due 2027 and $400 million redemption of floating rate notes due 2027.

Shares of Citigroup fell 1.8% to close at $139.96 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying C stock? Here’s what analysts think:

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Key Takeaways C is increasingly using AI to boost efficiency while investing in long-term growth initiatives.C plans to invest $5B through 2026-2028 across tech, marketing and branch upgrades.C reports 80% employee using AI, with 42M interactions generated since launch, driving productivity gains. Citigroup, Inc. (C - Free Report) is increasingly using artificial intelligence (AI) to improve operating efficiency, while investing in long-term growth. Its strategy reflects a broader industry trend in which leading banks are adopting AI, automation and digital tools to reduce costs, boost productivity and enhance customer experience.

Citigroup plans to invest $5 billion between 2026 and 2028 across technology, marketing, front-office talent and branch renovations. A growing share of technology spending is being directed toward business-led initiatives that support innovation and client growth across markets, investment banking, wealth, cards and services.

AI is already delivering tangible benefits. In customer service, generative AI has reduced average call times by about 60 seconds, while CitiDirect agents have improved customer query containment rates by roughly 50%. In its credit card business, AI and machine learning have increased approval rates by approximately 100 basis points, improving underwriting decisions and customer acquisition.

Beyond customer-facing applications, AI is driving significant internal productivity gains. More than 10,000 engineers now use advanced AI tools, including agentic AI, while automated code reviews have exceeded 1.5 million, creating nearly 100,000 hours of developer capacity each week. AI has also reduced application migration times from an estimated 12 months to just four weeks. In the first quarter of 2026, more than 80% of employees adopted AI tools, generating 42 million interactions since launch. In Markets, AI processes more than 4,400 documents, creating above 1,700 hours of monthly capacity across oversight functions.

These initiatives support Citigroup's efficiency targets. Management expects the efficiency ratio to improve to 60% in 2026, with a medium-term goal of 55-60% and ultimately below 55%. The expected improvement will likely come from lower transformation costs, reduced stranded costs as legacy franchises are exited, productivity benefits from earlier investments and AI-enabled process re-engineering.

Overall, AI has become a core component of Citigroup's operating model. By improving customer service, automating technology development and streamlining internal processes, the bank is enhancing efficiency while creating capacity to invest in higher-growth businesses. As AI adoption accelerates across the banking industry, Citigroup appears well-positioned to strengthen its competitive position and deliver sustainable long-term profitability.

How Other Banks Stack Up Against Peers in Using AIOther major banks, including Goldman Sachs (GS - Free Report) and JPMorgan (JPM - Free Report) , are also investing heavily in AI to improve efficiency, personalize services and maintain a competitive advantage.

Goldman Sachs is undertaking a firmwide AI transformation to boost fee income, productivity and long-term operating leverage. Its strategy centers on “One Goldman Sachs 3.0” and the GS AI Assistant program, aiming to embed AI into core operations through streamlined processes, shared platforms, high-quality data and modernized infrastructure. While near-term AI investments may raise costs, Goldman targets a long-term efficiency ratio of 60%.

JPMorgan is leading AI-driven banking by embedding advanced models across its operations, from fraud detection and credit risk to personalized wealth management. Its AI platforms improve efficiency, compliance and customer experience, while generative tools streamline workflows. This blend of innovation and scale reinforces JPMorgan’s position as the top digital banking brand in the United States.

C’s Price Performance & Zacks RankShares of Citigroup have gained 66.5% in the past year compared with the industry’s growth of 22.5%. 

Image Source: Zacks Investment Research

Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Citigroup cleared the Fed's 2026 stress test, reinforcing capital strength and shareholder return plans.C plans a 12% dividend increase to 67 cents and launched a $30B multi-year buyback program.C expects higher repurchases in 2026 than in 2025, backed by strong capital and liquidity positions. Citigroup Inc.'s (C - Free Report) successful completion of the Federal Reserve's 2026 stress test underscores the bank's financial resilience and strengthens its ability to reward shareholders. While passing the annual stress test is a regulatory milestone, the bigger takeaway for investors is the capital flexibility it creates. A strong capital position allows banks to return more cash through dividend payments and share repurchases while continuing to invest in growth initiatives.

Along with Citigroup, 31 banks like Wells Fargo (WFC - Free Report) and JPMorgan (JPM - Free Report) also cleared the Fed’s 2026 stress test.

C's Lower Capital Requirement Creates More Financial FlexibilityCitigroup’s Stress Capital Buffer remains unchanged at 3.6% after the Federal Reserve’s 2026 supervisory stress test. However, C stated that its latest stress-test results would have supported a lower SCB of 3.3% had the Fed not extended the existing requirements through Oct. 1, 2027. The Fed is maintaining current SCB levels while it finalizes updates to its stress-testing framework, enabling citigroup to continue operating under its existing capital buffer until the revised rules are implemented.

Even with the current requirement, Citigroup remains comfortably above regulatory minimums. As of March 31, 2026, its Standardized Common Equity Tier 1 capital ratio was 12.7%, 110 basis points above the required level of 11.6%. This excess capital provides a meaningful cushion against economic stress and highlights the progress the company has made in simplifying its operations, strengthening risk controls and improving earnings quality.

C’s liquidity position also remains solid. As of March 31, 2026, cash and due from banks, along with total investments, aggregated $467.8 billion, exceeding total debt, including short-term and long-term borrowings, of $379.6 billion.
This strength is translating directly into enhanced shareholder returns. Citigroup plans to raise its quarterly common stock dividend 12% to 67 cents per share from 60 cents, beginning in the third quarter of 2026, subject to board approval. The company has also initiated a $30-billion multi-year common stock repurchase program.

The broader banking sector is also moving to reward shareholders following the stress test results. JPMorgan plans to lift its quarterly dividend to $1.65 per share from $1.50 and authorized a $50-billion share repurchase program. Wells Fargo, meanwhile, plans to increase its quarterly dividend 11% to 50 cents per share, subject to board approval in July.

Coming back to Citigroup, its Investor Day financial overview reinforces this capital-return narrative. C has noted that it has returned roughly $45 billion of capital to shareholders since the beginning of 2022 and expects repurchases to be higher in 2026 than in 2025. This reflects disciplined capital deployment, improving profitability and continued progress in reshaping Citigroup into a simpler and more resilient company.

Final Words on Citigroup Capital StrengthIn conclusion, C’s stress test performance reinforces the strength of its franchise and the continued momentum in executing its transformation strategy. The results show that efforts to reshape the bank into a simpler and more resilient firm are translating into tangible progress, including stronger earnings capacity, enhanced capital resilience and a consistent reduction in its stress capital buffer. 

Overall, Citigroup appears well-positioned to deliver steady long-term shareholder returns across varying economic conditions.

C’s Price Performance & Zacks RankCitigroup shares have surged 71.8% in the past year compared with the industry’s growth of 26.2%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Choosing between Citigroup (C +2.74%) and Wells Fargo (WFC +2.03%) involves weighing global reach against domestic focus. Both banks are navigating changing interest rates and regulatory environments as they seek to reward long-term shareholders.

Citigroup serves as a global powerhouse with a heavy emphasis on institutional clients and cross-border transactions. Conversely, Wells Fargo maintains a strong grip on the U.S. mortgage and consumer lending markets. These two giants offer distinct paths for investors depending on whether they prefer international diversification or domestic stability.

The case for CitigroupCitigroup operates through five primary business segments, focusing on its physical presence in more than 90 markets. It caters to wealth management clients and institutions needing cross-border services while maintaining a significant U.S. consumer footprint. The company's simplified organizational structure helps it navigate the complex landscape of bank stocks while supporting global economic progress.

In FY 2025, Citigroup reported revenue of nearly $85.2 billion, a slight raise from $80.7 billion the prior year. The company generated net income of roughly $14.3 billion. This performance resulted in a net margin of close to 16.7%, indicating the percentage of revenue remaining after all expenses and taxes were paid.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 3.4x. This ratio measures total debt against shareholder equity, with a higher number showing more reliance on borrowed funds. The current ratio, which gauges the ability to cover short-term debts with short-term assets, was roughly 0.5x. For the FY 2025 period, the bank reported negative free cash flow of nearly $74.2 billion, representing cash from operations minus capital spending.

The case for Wells FargoWells Fargo serves roughly 60 million consumer and small-business customers primarily within the United States. It operates across four segments: consumer lending, commercial banking, corporate banking, and wealth management. The bank recently expanded its reach in the housing market by becoming a preferred home mortgage lender for the ICON deal.

For the FY 2025 period, revenue reached approximately $83.7 billion, a slight increase from $82.3 billion in 2024. The bank produced a net income of close to $21.3 billion during this time frame. This performance led to a net margin of roughly 25%, showing the portion of total sales that translated into actual profit for the year.

Based on the December 2025 balance sheet, the debt-to-equity ratio was roughly 2.4x, which is the bank's total debt divided by its equity. The current ratio, a measure of short-term liquidity, was approximately 0.3x. In FY 2025, the company recorded negative free cash flow of nearly $19.0 billion, which is the cash left over after paying for operations and asset purchases.

Risk profile comparisonCitigroup must manage the complexities of operating in 90 different markets, which exposes it to significant geopolitical and currency risks. The bank faces stiff competition for institutional clients from JPMorgan Chase and Bank of America. Additionally, the costs of maintaining global infrastructure and meeting diverse regulatory standards across international borders could weigh on future profitability.

Wells Fargo operates under heavy regulatory oversight, including a 2024 agreement with the OCC to improve its anti-money laundering and risk management. Its earnings are highly sensitive to Federal Reserve policies, and it faces intense competition from fintech firms and Alphabet in the payments space. The bank also handles ongoing legal risks and potential operational restrictions that could impact its ability to return capital to shareholders.

Valuation comparisonWells Fargo appears slightly cheaper based on its forward P/E, which compares current price to future earnings estimates. Citigroup maintains a lower P/S ratio, which measures market value against total sales.

MetricCitigroupWells Fargo &Sector BenchmarkForward P/E13.3x12.0x17.0xP/S ratio1.5x2.1xN/ASector benchmark uses the SPDR XLF sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Both Wells Fargo and Citigroup have delivered more than 100% returns for investors over the last five years. In fact, for much of that time, Wells Fargo was the outperformer. But something changed in 2026. Citigroup is up 25% year to date as of June 25, while Wells Fargo is lagging with a nearly 9% drop on disappointing revenue guidance and investor concerns about the macroeconomic environment. However, smart investors know that past results aren’t necessarily an indicator of future returns, so which is the better stock for the rest of the year?

Citigroup is betting on a turnaround. In 2021, the global banking giant announced it planned to exit the consumer banking business in 14 international markets. During the recent earnings call, management said the divestitures are at or nearing completion. The leaner company is freeing up capital for strategic investments in more lucrative global markets.

Wells Fargo is also in a period of transition. Last year, the Federal Reserve lifted the asset cap imposed in 2018 following the bank's fake account scandal. Wells Fargo now has much more balance sheet freedom, which should unlock greater financial flexibility and performance. But despite Wells Fargo’s improving flexibility and lower forward valuation, I like Citigroup better in this matchup. It has a stronger future outlook and is slightly less tied to the moves of the Federal Reserve, and the U.S. consumer, and the U.S. housing market. And its successful divestitures and international pivots demonstrate that, despite its size and scale, it remains agile in a dynamic economic environment.

Key Takeaways C's credit card delinquency rate fell to 1.29% in May 2026 from 1.40% in April.C's net charge-off rate rose to 2.28% in May 2026 from 2.11% in April.C's credit card receivables declined to $19.4 billion, signaling softer lending activity. Citigroup Inc.’s (C - Free Report) subsidiary, Citibank N.A., has reported mixed performance in its credit card metrics for May 2026 in a recent SEC filing. While delinquency rates improved compared with the prior month, net charge-offs witnessed an uptick.

For May 2026, the Citibank Credit Card Master Trust delinquency rate declined to 1.29% from 1.40% in April 2026 and 1.39% in May 2025. The latest figure also compares favorably with the 1.57% level recorded in April 2019, before the onset of the COVID-19 pandemic.

In contrast, the Credit Card Issuance Trust’s net charge-off rate rose to 2.28% in May 2026 from 2.11% in April 2026. However, the figure remained lower than both 2.33% in the prior year and 2.74% recorded in May 2019.

Citibank’s Credit Card Lending Shows Sequential DeclineCitibank’s credit card lending activity saw a modest decline during the month. Principal receivables declined slightly to $19.4 billion as of May 2026 from $19.5 billion at the start of the previous month. The figure also marked a decline from $21.1 billion reported in May 2025, indicating some slowdown in year-over-year consumer borrowing activity.

Citigroup’s Price Performance & Zacks RankShares of Citigroup have gained 26.7% over the past six months compared with the industry’s growth of 7.2%.

Image Source: Zacks Investment Research

Currently, C carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks in Card DelinquencyBank of America’s (BAC - Free Report) credit card metrics improved year over year in May 2026, driven by lower delinquency rates and net charge-offs. The BA Master Credit Card Trust II’s delinquency rate stood at 1.30% in May, down from 1.37% a year earlier.

The net charge-off rate of BAC was 2.19% in May 2026 compared with 2.44% in May 2025.

JPMorgan Chase & Co.’s (JPM - Free Report) credit card trust performance in May 2026 reflected lower delinquencies and net charge-off rates. The Chase Issuance Trust’s delinquency rate decreased to 0.82% in May from 0.85% in May 2025.

Meanwhile, the net charge-off rate of JPM decreased to 1.73% in May 2026 from 1.84% in the prior year.

The Citibank logo is displayed at a branch in New York City, U.S., July 16, 2025. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab

CompaniesLONDON, June 18 (Reuters) - Citi has hired William Mansfield as Head of M&A for the UK, Europe, Middle East, ​and Africa (EMEA) from Deutsche Bank, according to ‌an internal memo seen by Reuters on Thursday and confirmed by a Citi spokesperson.

The hire continues the U.S. bank's recruitment drive since ​appointing Viswas Raghavan from JPMorgan in 2024.

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Mansfield ​was previously Head of M&A for Europe, Middle ⁠East and Africa at Deutsche Bank and previously ​held various senior leadership roles at Credit Suisse.

He ​will replace Robin Rousseau and Barry Weir who previously led the business for Citi in the region.

Robin Rousseau, who joined ​in 2020, has been promoted to Global Chair of ​M&A. He will focus on European clients and cross-border situations, according ‌to ⁠the memo.

Barry Weir has been promoted to Vice Chair of M&A and will predominantly focus on natural resources and UK clients and transactions, according to ​the memo.

Mansfield ​will be ⁠based in London and report to Guillermo Baygual and Drago Rajkovic, Citi Global ​Co-Heads of M&A and is expected to ​join ⁠in September.

Deutsche Bank said in a memo that it confirmed Mansfield's departure and said Tobias Wagnert, currently ⁠Head ​of Investment Banking Coverage, EMEA ​excluding Germany, Switzerland and Austria, will become the Head of EMEA M&A, ​effective immediately.

Reporting by Anousha Sakoui; editing by Dhara Ranasinghe

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Key Takeaways C may gain as higher rates boost loan yields, securities returns and the Services segment's profitability. C expects 2026 NII, excluding Markets, to increase 5-6% year over year before any potential rate hike.Citigroup's view depends on whether NII growth can offset funding costs, credit losses and softer lending. The Federal Reserve’s latest decision related to interest rates creates a mixed backdrop for Citigroup, Inc. (C - Free Report) . More than the single rate decision, the key issue for C is the likelihood of a higher-for-longer rate environment.

The Federal Reserve kept the federal funds rate unchanged at 3.50-3.75% following the March 17-18, 2026, FOMC meeting. However, the latest dot plot signaled a more hawkish policy outlook, with nine policymakers expecting at least one rate hike by the end of 2026, while only one projected a rate cut. The shift reflects the Fed's continued concerns about persistently elevated inflation, resilient economic growth and a labor market that remains too strong to justify easing monetary policy.

For Citigroup, higher rates can support net interest income as loan yields, securities reinvestment yields and floating-rate assets reset higher. This is especially important for its Services segment, including treasury and trade solutions, wherein corporate deposits, payment flows and liquidity-management balances can become more profitable. Citigroup already expects NII, excluding Markets, to rise 5-6% year over year in 2026, and a rate hike could provide additional upside if deposit costs remain controlled.

However, higher rates also bring risks. Borrowing costs could pressure demand for mortgages, commercial loans and consumer credit, while rising delinquencies may force Citigroup to build reserves and increase provisions for credit losses and pressure on earnings growth. Capital market activity could also weaken if higher rates delay mergers, debt issuance and corporate expansion plans, hurting investment banking fees for Citigroup.

Overall, the Fed’s decision is mildly constructive for Citigroup’s revenue outlook but not clearly bullish. For investors, the key issue is whether C’s NII gains can outpace rising funding costs, slower loan demand and credit normalization. Investors should look beyond the headline benefit of higher rates and focus on deposit stability, loan quality, securities exposure and capital strength.

How Other Banks Are Likely to Be Affected by High RatesSimilar to Citigroup, other large banks such as JPMorgan (JPM - Free Report) and Bank of America (BAC - Free Report) may be better-positioned in a higher-for-longer rate environment because they have broader revenue streams, stronger liquidity buffers and more diversified loan books. 

Both JPM and BAC have projected higher net interest income for 2026 despite assuming a rate cut later in the year. If rates rise instead, their NII outlooks could get additional lifts. JPMorgan expects 2026 NII of $103 billion, indicating more than 7% year-over-year growth, while Bank of America expects NII on a fully taxable-equivalent basis to grow toward the upper end of 6-8%. Still, the benefit may be partly offset by rising funding costs, weaker loan demand, higher credit risk and balance-sheet pressures.

Citigroup’s Price Performance & Zacks RankC shares have gained 82.4% in the past year compared with the industry’s growth of 31.6%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Oil prices ticked lower Tuesday as investors monitored tanker traffic through the Strait of Hormuz.

Brent crude futures, the international benchmark, fell 82 cents to close at $77.08 a barrel. West Texas Intermediate futures declined 65 cents to settle at $73.21.

President Donald Trump said 19 million barrels of oil flowed through Hormuz on Monday, describing the volume as a record. CNBC could not immediately verify that figure. Around 20 million barrels of crude and refined products were exported through the strait before the Iran war.

Iran had declared Hormuz closed over the weekend while U.S. Central Command said the strait remained open to ships, sowing confusion about the status of the sea lane.

Brent crude

Meanwhile, the U.S. Treasury issued a 60-day license that authorizes the production, delivery and sale of oil from Iran. It allows the importation of Iranian crude to the U.S., and payment for the oil to be made in dollars. The license expires Aug. 21.

However, there were concerns that Iran may use the profits from oil sales to rebuild its military. Trump was asked on Monday if he could ensure that such a scenario would not play out.

"Well, they're not supposed to be doing that, so we'll see," Trump said at the White House during an executive order signing event. "They're supposed to use money to buy food for their people, because right now their people are very hungry, and they're buying it exclusively from us: corn, soybeans," he added.

Vice President JD Vance said there has been "great progress" made during the talks in Switzerland, even as Iran declared over the weekend that it had closed the Strait of Hormuz. U.S. Central Command said Hormuz had not been closed.

The recent developments appear to have boosted investor optimism that there may be a lasting resolution.

"If you just follow the oil price trading pattern here over the past couple of weeks, you're seeing the markets telling you that it's increasingly confident that we're closer to the end of the conflict," said managing director of US Equity Strategy at Citi Research Scott Chronert on CNBC's "Squawk Box Asia".

"This energy price overhang with its inflation connotation should be lessening in the weeks and months to come," he added.

To be sure, Oman and Iran stressed Tuesday in a joint statement their "sovereign rights in their territorial waters" in the Strait of Hormuz.