Management commentary
Citi 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.
7“Services delivered another standout quarter, up 15%, with momentum in every driver.
Equities rose 14% on strong performance in Asia and Prime, while FX and Spread Products drove overall growth of 6% in Markets.
Banking also grew 6%, with particular strength in ECM, where we participated in the quarter's six largest transactions.
Wealth saw steady, broad-based growth across all three businesses, with a return of over 14% — well above last year.
In U.S. Consumer Cards, we had solid momentum in General Purpose cards, which drove loan growth and a return that exceeded 21%.
“We returned over $4 billion to common shareholders while continuing to invest in growth and prepare for an AI-driven future.
5We 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%,” Ms. Fraser concluded.
Results
EPS UP 53% AS REPORTED; UP 27% EX-NOTABLE ITEM (3) RETURNED $4.1 BILLION IN THE FORM OF COMMON SHARE REPURCHASES AND COMMON DIVIDENDS PAYOUT RATIO OF 85% (4) COMMON EQUITY TIER 1 CAPITAL RATIO OF 12.8% (5) BOOK VALUE PER SHARE OF $115.61 TANGIBLE BOOK VALUE PER SHARE OF $101.59 (6) New York, October 13, 2026 – Citigroup Inc. today reported net income for the third quarter 2026 of $5.2 billion, or $2.85 per diluted share, on revenues of $23.8 billion.
This compares to net income of $3.8 billion, or $1.86 per diluted share, on revenues of $22.1 billion for the third quarter 2025. As previously disclosed (3) , third quarter results in the prior-year period included a notable item consisting of a goodwill impairment of $726 million ($714 million after-tax), recorded in operating expenses, related to Citi’s agreement to sell a 25% equity stake in Grupo Financiero Banamex, S.A. de C.V. (Banamex). Revenues increased 8% from the prior-year period, driven by growth in Services, Wealth, Markets and Banking , partially offset by a decline in All Other. Net income was $5.2 billion, compared to $3.8 billion in the prior-year period on a reported basis, driven by higher revenues and lower expenses, partially offset by a higher provision for credit losses.
Excluding the notable item, net income in the prior-year period was $4.5 billion (3) . Earnings per share of $2.85 increased from $1.86 per diluted share in the prior-year period on a reported basis, reflecting higher net income and a lower share count due to share repurchases.
Excluding the notable item, earnings per share in the prior-year period was $2.24 (3) . Percentage comparisons throughout this press release are calculated for the third quarter 2026 versus the third quarter 2025, unless otherwise specified.
Third Quarter Financial Results
(b) Includes provisions on policyholder benefits and claims, Other Assets, and HTM debt securities.
Citigroup
Citigroup revenues of $23.8 billion in the third quarter 2026 increased 8%, driven by growth in Services, Wealth, Markets and Banking , partially offset by a decline in All Other .
Net interest income increased 14%, driven by growth in Markets, Services, Wealth and U.S. Consumer Cards (USCC), partially offset by declines in All Other and Banking .
4Non-interest revenue decreased 4%, driven by declines in Markets and USCC , largely offset by growth in All Other, Services, Banking and Wealth .
8Citigroup operating expenses of $14.0 billion were down 2% on a reported basis, driven by the absence of the notable item as well as lower professional services expenses, partially offset by higher transactional and product servicing expenses, deposit insurance costs, compensation and benefits as well as the contribution to the Citi Foundation.
3Excluding the notable item in the prior-year period, expenses were up 3% (3) .
Citigroup provision for credit losses was $2.6 billion, reflecting $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 provision in the prior-year period was $2.5 billion, reflecting $2.2 billion of net credit losses and a net reserve build of $236 million, driven by portfolio growth and transfer risk, partially offset by changes in the macroeconomic outlook.
Citigroup net income was $5.2 billion in the third quarter 2026, compared to net income of $3.8 billion in the prior-year period on a reported basis, driven by higher revenues and lower expenses, partially offset by a higher provision for credit losses.
Excluding the notable item, net income in the prior-year period was $4.5 billion (3) .
Citigroup’s effective tax rate was approximately 26% in the third quarter 2026 compared to 29% in the third quarter 2025.
Citigroup’s total allowance for credit losses was $22.4 billion at quarter end, compared to $23.8 billion at the end of the prior-year period.
Total ACL on loans was $20.1 billion at quarter end, compared to $19.2 billion at the end of the prior-year period, with a reserve-to-funded loan ratio of 2.5%, down from 2.7% in the prior-year period.
Total non-accrual loans decreased $0.4 billion, or 12%, from the prior-year period to $3.3 billion.
Corporate non-accrual loans decreased $0.3 billion, or 16%, from the prior-year period 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, or 5%, from the prior-year period to $1.5 billion, driven by Wealth , partially offset by Legacy Franchises, in All Other .
Citigroup ’ s end-of-period loans were $820 billion at quarter end, up 12% versus the prior-year period, driven by growth in Markets, USCC, Wealth, Banking and Services .
Citigroup ’ s average loans were $809 billion in the third quarter 2026, up 12% versus the prior-year period, primarily driven by growth in Markets, Services, USCC and Wealth.
Citigroup ’ s end-of-period deposits were approximately $1.5 trillion at quarter end, up 9% versus the prior-year period, driven by growth in Service s.
Citigroup ’ s average deposits were approximately $1.5 trillion in the third quarter 2026, up 11% versus the prior-year period, driven by growth in Services .
Citigroup ’ s book value per share of $115.61 at quarter end increased 7% versus the prior-year period, and tangible book value per share of $101.59 (6) at quarter end increased 6% versus the prior-year period.
During the quarter, Citigroup returned $4.1 billion to common shareholders in the form of share repurchases and dividends.
Citigroup ’ s preliminary CET1 Capital ratio (5) was 12.8% at quarter end, unchanged from the end of the prior quarter, driven by net income and lower deduction from DTA and other, offset by common share repurchases, the payment of common and preferred dividends and unrealized losses on AFS securities.
Citigroup ’ s Supplementary Leverage ratio (5) for the third quarter 2026 was 5.0%, versus 5.2% at the end of the prior quarter.
Services
Services revenues of $6.6 billion were up 15%, driven by growth in Treasury and Trade Solutions and Securities Services.
Net interest income increased 17%, driven by higher average deposit balances and deposit spreads.
Non-interest revenue increased 12%, driven by higher fees.
Treasury and Trade Solutions revenues of $4.9 billion were up 16%, driven by an 18% increase in net interest income and a 12% increase in non-interest revenue.
The increase in net interest income was driven by higher average deposit balances and deposit spreads.
The increase in non-interest revenue was driven by 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%, as well as a more favorable impact from currency devaluation in Argentina.
Securities Services revenues of $1.7 billion were up 13%, driven by a 13% increase in non-interest revenue and a 14% increase in net interest income.
The increase in non-interest revenue was driven by higher fees, which benefited from a 16% increase in assets under custody and administration, which includes new assets onboarded as well as the impact of market valuations, partially offset by a mark-to-market gain in the prior-year period.
The increase in net interest income was driven by higher average deposit balances.
Services operating expenses of $3.0 billion increased 10%, primarily driven by higher compensation, including higher severance, performance-related and other compensation, transactional expenses and other volume and revenue-related expenses.
Services provision for credit losses was a benefit of $26 million, reflecting a net reserve release of $29 million, driven by refinements to certain loss assumptions, and $3 million of net credit losses.
The provision in the prior-year period was $61 million, reflecting a net reserve build of $50 million, driven by transfer risk, and $11 million of net credit losses.
Services net income of $2.6 billion increased 27%.
Markets
Markets revenues of $6.1 billion increased 6%, driven by growth in Equity markets and Fixed Income markets revenues.
Fixed Income markets revenues of $4.4 billion increased 4%, driven by growth in spread products and other fixed income.
Rates and currencies revenues were unchanged, driven by revenue growth in the foreign exchange business on higher volumes, offset by lower revenues in rates.
Spread products and other fixed income revenues increased 13%, driven by growth in spread products financing revenues.
6Equity markets revenues of $1.7 billion increased 14%, driven by growth in prime services, with prime balances (7) up over 40%, which includes the impact of new balances onboarded as well as market valuations, partially offset by a decline in derivatives revenues.
Markets operating expenses of $3.8 billion increased 7%, driven by higher transactional expenses and compensation, including higher performance-related and other compensation as well as severance.
Markets provision for credit losses was $77 million, reflecting a net reserve build of $79 million, driven by portfolio growth and changes in the macroeconomic outlook, and $2 million of net credit recoveries.
The provision in the prior-year period was $32 million, reflecting $68 million of net credit losses and a net reserve release of $36 million, driven by reserve releases related to charge-offs in spread products.
Markets net income of $1.7 billion increased 2%.
Management commentary
Banking
Results
Banking revenues of $1.7 billion increased 6%, driven by growth in Investment Banking and gains on loan hedges, partially offset by a decline in Corporate Lending, excluding gain/(loss) on loan hedges (8) .
Investment Banking revenues of $1.4 billion increased 9%, driven by growth in Equity Capital Markets (ECM), partially offset by declines in Advisory and Debt Capital Markets (DCM).
1ECM revenues increased 77%, as the business gained share in follow-ons and convertibles.
2Advisory revenues decreased 4%, amid a lower wallet.
DCM revenues decreased 3%, driven by a decline in investment grade, primarily offset by growth in leveraged finance.
Corporate Lending revenues of $382 million, excluding gain/(loss) on loan hedges (8) , decreased 16%, driven by lower loan spreads, partially offset by higher average loan balances and commitments.
Banking operating expenses of $1.2 billion increased 8%, driven by higher compensation, including performance-related compensation and continued investments in the business.
Banking provision for credit losses was $23 million, reflecting $43 million of net credit losses and a net reserve release of $20 million, driven by changes in credit quality and transfer risk, largely offset by portfolio growth.
The provision in the prior-year period was $157 million, reflecting a net reserve build of $148 million, driven by changes in portfolio composition, including portfolio growth, and $9 million of net credit losses.
Banking net income of $378 million increased 40%.
(d) 3Q'26 Client investment assets are preliminary.
Includes assets under management, trust and custody assets.
Starting in 1Q'26, Client investment assets include an additional $10B associated with the value of client insurance policies that were not previously reported.
Wealth
Wealth revenues of $3.3 billion increased 15%, driven by growth across all businesses.
Net interest income of $2.3 billion increased 20%, driven by higher deposit spreads and average deposit balances, partially offset by lower mortgage spreads.
Non-interest revenue of $1.0 billion increased 5%, largely driven by higher investment fee revenues, with growth in client investment assets of 15%, which includes the impact of new assets onboarded as well as market valuations.
Citigold and Retail Banking revenues of $2.3 billion increased 16%, driven by higher deposit spreads.
Private Bank revenues of $766 million increased 17%, primarily driven by higher deposit spreads and average deposit balances.
Wealth at Work revenues of $228 million increased 7%, driven by higher deposit spreads and average deposit balances, primarily offset by lower mortgage spreads.
Wealth operating expenses of $2.4 billion increased 3%, driven by higher compensation, including performance-related and other compensation as well as severance.
Wealth provision for credit losses was $102 million, reflecting $70 million of net credit losses, driven by Citigold and Retail Banking, and a net reserve build of $32 million, driven by portfolio growth and changes in the macroeconomic outlook.
The provision in the prior-year period was $73 million, reflecting $91 million of net credit losses and a net reserve release of $18 million, driven by reserve releases related to write-downs.
Wealth net income of $585 million increased 93%.
Corporate events
(a) 3Q’26 and 2Q’26 results, balances and metrics include the impact from the additional American Airlines co-branded card portfolio onboarded in the second quarter of 2026.
Results
U.S. Consumer Cards (USCC)
USCC revenues of $4.7 billion were unchanged, driven by an increase in net interest income, offset by a decline in non-interest revenue.
Net interest income increased 6%, driven by higher interest - earning balances.
Non-interest revenue decreased 62%, driven by higher partner payment accruals and rewards costs, partially offset by higher interchange and annual fees.
USCC operating expenses of $1.7 billion increased 2%, driven by higher transactional expenses as well as advertising and marketing expenses, largely offset by lower compensation, including lower salaries and benefits, performance-related compensation and severance.
USCC provision for credit losses was $1.9 billion, reflecting $1.7 billion of net credit losses and a net reserve build of $208 million, primarily driven by changes in the macroeconomic outlook.
Net credit losses were down 4% from the prior-year period, primarily driven by improved credit performance in private label credit cards.
The provision in the prior-year period was $1.8 billion, reflecting $1.7 billion of net credit losses and a net reserve build of $58 million, driven by changes in portfolio quality and higher volume, largely offset by changes in the macroeconomic outlook.
USCC net income of $851 million decreased 8%.
All Other (managed basis) revenues of $1.4 billion decreased 3%, driven by declines in Legacy Franchises and Corporate/Other.
Legacy Franchises (managed basis) (9) revenues of $1.8 billion decreased 1%, driven by 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.
Corporate/Other revenues of $(415) million decreased from $(400) million in the prior-year period, driven by lower net interest income, reflecting higher asset and liability management impacts, offset by higher non-interest revenue, primarily driven by the impact of valuation adjustments on certain investments and positions.
All Other (managed basis) expenses of $1.9 billion decreased 14%, driven by lower transformation expenses and lower expenses related to exits and wind-downs, partially offset by the impact of Mexican peso appreciation and the contribution to the Citi Foundation.
All Other (managed basis) provision for credit losses was $532 million, reflecting $433 million of net credit losses and a net reserve build of $99 million, primarily driven by policyholder benefits and claims in Mexico Consumer.
Net credit losses were up 46% from the prior-year period, driven by higher volume and portfolio seasoning in Mexico Consumer.
The provision in the prior-year period was $331 million, reflecting $297 million of net credit losses and a net reserve build of $34 million, driven by higher volume and changes in portfolio quality, largely offset by changes in the macroeconomic outlook.
All Other (managed basis) net loss was $(955) million, compared to $(756) million in the prior-year period.
54 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.