This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Citigroup offers financial products and services globally to retail customers, businesses, governments, and investors through five business lines: services, markets, banking and international, wealth, and U.S. personal banking. In 2026, it is the third-largest bank by revenue in the U.S. behind Bank of America and JPMorgan Chase.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are banks, insurance, and real estate companies.

Fortune Sector Leaders: Financials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

GLOBAL-500-2023-Citi-Group

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Citigroup

Citigroup’s board boasts an impressive array of finance executives, and it scores high on gender diversity. Seven of the 13 directors are women, making it one of the most gender-inclusive boards in finance. Some of the accomplished and influential women on the board include Ellen Costello, the former CEO of BMO Financial; Grace Dailey, former deputy comptroller for Bank Supervision Policy and chief national bank examiner; former Citibank CEO Barbara Desoer; and current CEO Jane Fraser. At least two-thirds of the board is independent. Citigroup has seen solid growth this year. Its first-quarter revenue from its Asia Wealth division grew 20% because of its investment gains and new regional clients. The bank’s stock is up 20% year to date.

Fortune Modern Board 25

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-036.-Citigroup

The third-largest commercial bank in the U.S. jumped eight spots on this year’s list as the company posted impressive revenue growth even with rising interest rates rattling the banking sector. 
<ul> 
 	<li>The bank posted an eye-popping $101 billion in revenue this year, up 27% from the year prior.</li> 
 	<li>The company reported a profit of $14.8 billion for 2022, down 32% from the year prior largely because of rising interest rates.</li> 
 	<li>In 2023, the bank’s first-quarter revenue from its Asia Wealth division grew 20%, boosted by investment gains and new regional clients.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Modern Boards 2022 Citigroup

Citigroup is the third-largest banking institution in the U.S., with over 200 million customer accounts in more than 160 countries. Its directors include five former and two current CEOs—including its own, Jane Fraser; and Renee James, the founder, chairman, and CEO of Ampere Computing. 
 
On the ESG front, in March 2021 Citigroup combined three of its investment-banking groups as part of a broader push to reduce carbon emissions. Fraser has vowed to achieve net-zero greenhouse gas emissions in Citigroup’s financing activities by 2050.  
 
Citigroup’s board lineup scored high on gender equality, board independence, and board expertise. Other notable names on its board include Ernesto Zedillo, former president of Mexico, and S. Leslie Ireland, the former assistant secretary for intelligence and analysis at the Treasury Department.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Citigroup

As of February 2022, Citigroup was the fourth-largest bank in the United States, with assets of $1.7 trillion. Under Jane Fraser, who became the first woman to run a major U.S. bank when she became CEO in March 2021, Citigroup has been reorganizing and refocusing. Revenue dropped 10% in 2021 as the bank began implementing a plan to exit banking and other services in 13 international markets. One of those markets is Russia—but Citi was still doing business there when Russia invaded Ukraine. In April 2022, Citigroup said it could face losses of as much as $3 billion related to its Russia exposure. At the time, Fraser also said the bank had 200 employees continuing to work in Ukraine, assisting clients with payroll, supply chains, and obtaining food.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-082-Citigroup

Citigroup made history in 2020 when it named the head of its consumer banking division, Jane Fraser, as successor to then-CEO Michael Corbat. In doing so, Citigroup became the first bulge bracket U.S. bank to be led by a woman. And so far, Fraser is signaling her willingness to go big and reorganize: Citigroup announced plans to shutter its consumer banking operations in 13 markets and has reshuffled leadership since the executive officially assumed her role. One mess that is still frustrating investors: In mid-2020 loan operators at Citi accidentally wired roughly $900 million to lenders of makeup company Revlon. While some recipients returned the funds, Citi has been unable to recoup hundreds of millions of dollars in the ongoing saga.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-33-Citigroup

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-070-Citigroup

Citigroup shareholders were richly rewarded in 2019 as shares soared a stellar 53%. Those returns come as Citi has rejiggered its business, eliminating hundreds of positions in its trading division as it has invested more deeply in providing banking services to corporations. Long considered second fiddle to the likes of Morgan Stanley and Goldman Sachs in the realm of investment banking, the consumer-facing giant also beefed up its roster of well-connected bankers in that space, as it vies for a top-three spot in the league tables. Under the hood, Citi reshuffled its executive team in 2019, elevating Jane Fraser to the No. 2 spot in management and the leader of its consumer banking business—and positioning her as a strong contender to be the first woman to eventually run a major Wall Street bank.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-031-Citigroup

Citigroup shareholders were richly rewarded in 2019 as shares soared a stellar 53%. Those returns come as Citi has rejiggered its business, eliminating hundreds of positions in its trading division while investing more deeply in providing banking services to corporations. Long considered second-fiddle to the likes of Morgan Stanley and Goldman Sachs in the realm of investment banking, the consumer-facing giant also beefed up its roster of well-connected bankers in that space, as it vies for a top-three spot in the league tables. Under the hood, Citi reshuffled its executive team in 2019, elevating Jane Fraser to the No. 2 spot in management and the leader of its consumer banking business—and positioning her as a strong contender to be the first woman to eventually run a major Wall Street bank.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Citigroup offers financial products and services globally to retail customers, businesses, governments, and investors through five business lines: services, markets, banking and international, wealth, and U.S. consumer cards.

Q2 2026

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Q3 2025

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Citigroup (C): Company Profile, Stock Price, News, Rankings

legacy

Citigroup

citigroup

Hello, and welcome to Citi's first quarter 2026 earnings call. Today's call will be hosted by Jenn Landis, Head of Citi Investor Relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Ms. Landis, you may begin.

Thank you, operator. Good morning, and thank you all for joining our first quarter 2026 earnings call. I'm joined today by our Chair and Chief Executive Officer, Jane Fraser, and our Chief Financial Officer, Gonzalo Luchetti. I'd like to remind you that today's presentation, which is available for download on our website, citigroup.com, may contain forward-looking statements which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials as well as in our SEC filings. With that, I'll turn it over to Jane.

Thank you, Jenn, and good morning to everyone. We picked up right where we left off last year with an exceptionally strong start to 2026. This morning, we reported net income of $5.8 billion for the first quarter, with an EPS of $3.06 and an ROTCE of 13.1%. Four of the five core businesses saw revenue up double digits. Revenues were up sharply at 14%, and we had another quarter of very healthy positive operating leverage. The continued strong performance across our lines of business shows the benefit of a diversified model, which continues to drive consistent, predictable revenue growth. Services, our crown jewel, had an exceptional first quarter. New mandates were up 40%, while the combination of client-driven growth and fees underpinned a 17% increase in revenues. Cross-border transactions were up 12%. Deposits grew by 16%, and assets under custody and administration were up over 20%.

Markets crossed $7 billion in revenues for the first time in a decade. Equities was up nearly 40%, surpassing the $2 billion revenue mark, driven by derivatives, prime services, and cash. FIC, up 13%, saw notable performance in commodities and FX. Banking continued to build momentum, with fees up 12% amidst a record first quarter for us in M&A. ECM was up over 60%, while we continued to gain share with sponsors. We advised on the three largest deals so far this year, Paramount, McCormick, and EQT AES, demonstrating how we are far better penetrating the C-suite. Supported by continued investment in talent, clients are increasingly looking to Citi for our advice in addition to our execution capabilities. With revenues up 11%, Wealth saw its eighth straight quarter of growth, and its returns continue to improve. Now as you know, its results now include U.S. Retail Banking.

Citigold and Retail Banking were up 13% as we leverage our branch footprint to capture assets that our clients have with other firms. Investment revenue grew 11%, with client investment assets up a pleasing 14%. U.S. Consumer Cards saw 4% revenue growth, with spend up 5%, and delivered a 19% ROTCE as American consumers remained resilient. With our portfolio heavily weighted to prime, delinquencies and credit losses declined and are well in line with expectations. You can now see how we've lined up the reporting of this business with our strategy as we focus on growing our general purpose portfolio and optimizing our private label portfolio. In the quarter, we demonstrated our continued commitment to returning excess capital to our investors with the repurchase of $6.3 billion of shares, and we are close to completing our $20 billion share buyback plan.

We ended the quarter with a CET1 ratio of 12.7%, which is 110 basis points above our regulatory capital requirement, and our tangible book value grew by 8% from a year ago. As we look towards a new capital regime, whilst the latest NPR is an improvement upon the 2023 version, it's not yet where it should be, and we shall be active in advocating for necessary changes in the comment period. These quarterly results reflect the execution of some of the most consequential changes in our firm's history, our business investments, the transformation, the simplification, divestitures, delayering, and modernization. That said, and I know I've said this many times, we have not yet reached our destination, and we will continue to be solely focused on executing our vision and relentlessly driving our business performance.

We've now entered the final phase of our divestitures, and we continue to drive down our stranded costs. In February, we completed our exit from Russia. We have entered into agreements with several prominent investors to sell an additional 24% of Banamex in transactions that are expected to close in the coming months. We're on track to close the sale of our consumer business in Poland this summer. The momentum we have established in our businesses can also be seen in our transformation, which remains our other top priority for the year. 90% of our programs are now at or near our target state, and our firm is materially safer and sounder as a result of this work. We've started to reduce the spend on our transformation programs, resulting in an improvement in our operating efficiency this year and beyond.

We are methodically deploying AI at scale across the firm to drive revenues and process improvements, enhance client experiences, and strengthen our defensive capabilities. You'll be hearing much more about this on Investor Day. Switching gears, the global macroeconomy to date has weathered shock after shock. However, the impact of the Middle East conflict is hitting Asia and Europe harder than countries such as the U.S. and Brazil, which are more insulated from energy shocks. Clearly, the longer this goes on, the more pronounced the second or third order impacts are going to be around the world. Inflation is now a greater risk to growth and will likely cause central banks to lean towards more restrictive monetary policies. Consistent with our positions throughout the last decade, we continue to be a source of trust and financial strength for our clients during turmoil.

We intentionally designed a very resilient strategy that performs in different environments, and the last few years have borne that out. You can see it in the deposit and loan growth, in our high-quality loan portfolios and robust balance sheet, built on the foundation of disciplined risk management. We have the capital we need to continue to grow as we support our clients. With a very strong first quarter behind us, we remain well on track to deliver the 10%-11% ROTCE for the year. At our Investor Day next month, we will lay out a clear vision for how we will continue to grow each of our five businesses organically and deliver sustainably higher returns over time. This is an exciting time for our firm. We have momentum behind us, and we are looking forward to sharing the path ahead with you next month.

With that, I will turn it over to Gonzalo and then we will be happy to take your questions.

Thank you, Jane, and good morning, everyone. Before I begin, I would like to start by thanking Jane and Mark for their support and providing a very smooth transition to my role as CFO. I'm excited to build on the momentum they've created as we focus on delivering higher sustainable returns and value for our shareholders. As I stepped into the role, three elements stood out to me quite distinctively. First, we have a formidable foundation underscored by a robust balance sheet, rigorous risk management, and a well-diversified business model, which gives me confidence in our ability to produce durable results. We are a source of resilience and strength for our clients in a range of environments. Second, I'm excited about the opportunity to help deliver significant return improvement over time by driving client-led growth, continuously pursuing productivity improvement, and deploying capital to accretive return opportunities.

Finally, I'm highly energized by our relentless focus on execution. I see how each of our businesses and teams operate with urgency, focused on driving performance every single day. My role will be to ensure we are strategically purposeful and tactically disciplined in resource allocation. We are firmly in execution mode, and I feel it is time to continue to elevate Citi and leave an indelible mark on a 200-year-plus iconic firm. With that, let me remind you that on April 3rd, we published a recasted historical financial supplement for our reportable business segments to facilitate comparability with the results this quarter and going forward. Additionally, the results for the segments this quarter reflect the TCE allocations for this year, and we've included additional details on this in the appendix of the earnings presentation.

Now turning to the quarter, I'll start with the firm-wide financial results, focusing on year-on-year comparisons unless I indicate otherwise, then review the performance of our businesses in greater detail. On slide six, we show financial results for the full firm, which demonstrate the progress we've made and the momentum of our strategy. This quarter, we reported net income of $5.8 billion, EPS of $3.6, and an ROTCE of 13.1% on $24.6 billion of revenues, generating positive operating leverage for the firm and the majority of our five businesses. Total revenues were up 14%, with growth driven by each of our businesses and legacy franchises, as well as the impact of FX translation, partially offset by a decline in Corporate Other.

Net interest income, excluding Markets, which you can see on the bottom left side of the slide, was up 7%, driven by growth across all businesses and legacy franchises, partially offset by a decline in Corporate/Other. Non-interest revenues, excluding Markets, were up 29%, driven by growth across all businesses and all other. Total Markets revenues were up 19%. Expenses of $14.3 billion were up 7%, with an efficiency ratio of 58%, which I'll provide details on shortly. Cost of Credit was $2.8 billion, primarily consisting of net credit losses in U.S. cards, as well as a firm-wide net ACL build of $597 million. On slide seven, we show the expense and efficiency trend over the past five quarters. As I just mentioned, expenses increased 7%.

You can see on the bottom of the slide, we incurred nearly $500 million of severance as we target efficiencies across our expense base and bring down headcount. Excluding severance, the increase in expenses was 4%, primarily driven by FX as well as volume and revenue-related expenses, including compensation and transactional and product servicing expenses, partially offset by lower legal expenses. As you can see on the bottom right side of the slide, in addition to severance, growth in compensation and benefits included investments we've made to support growth in the businesses as well as performance-related expenses, partially offset by productivity saves, stranded cost reduction, and lower transformation expenses in Corporate Other. It is worth noting that this expense increase was against 14% revenue growth, resulting in an improvement in our efficiency ratio of approximately 400 basis points. On slide eight, we show U.S. cards and corporate credit metrics.

As I mentioned, the firm's cost of credit was $2.8 billion, primarily consisting of net credit losses in U.S. cards, as well as a firm-wide net ACL build. Embedded in the firm-wide net ACL build is a further skew to the downside scenario, reflecting the increased uncertainty in the macroeconomic outlook. Our reserves now incorporate an eight-quarter weighted average unemployment rate of approximately 5.4%, which continues to include a downside scenario average unemployment rate of nearly 7%. At the end of the quarter, we had nearly $22 billion in total reserves with a reserve-to-funded loans ratio of 2.6%. We continue to maintain a high credit quality card portfolio with approximately 85% of balances extended to consumers with FICO scores of 660 or higher, and a reserve-to-funded loan ratio in our U.S. cards portfolio of 8%.

Looking at the right-hand side of the slide, you can see that our corporate exposure is 78% investment grade, and in the quarter, corporate non-accrual loans as well as corporate net credit losses remained low. We are confident in the high-quality nature of our portfolios, which reflect our robust risk appetite framework, rigorous client selection, and our focus on using the balance sheet in the context of the overall client relationship. This quarter, we included a slide in the appendix of the presentation that shows Citibank's loan to non-bank financial institutions, including $22 billion of corporate private credit, which is 100% securitized, 98% investment grade and not a significant component of our overall exposure. Turning to capital and the balance sheet on slide nine, where I will speak to sequential variances. Our total assets of $2.8 trillion increased 5%, driven by growth in trading-related assets, cash, and loans.

Net end of period loans increased 1% with client-driven growth in banking and markets, partially offset by a seasonal decline in U.S. cards. Our $1.4 trillion deposit base remains well-diversified and increased 3%, driven by growth in services as we continue to deepen with clients with a focus on high-quality operating deposits. We reported a 114% average LCR and maintained over $1 trillion of available liquidity resources. In the first quarter, we continued to deploy capital to support client-driven growth, while at the same time prioritizing the return of capital to common shareholders, as evidenced by the $6.3 billion in buybacks executed, which includes the benefit from the sale of the remaining operations in Russia. We ended the quarter at 12.7% CET1 ratio under the binding standardized approach, approximately 110 basis points above the 11.6% regulatory capital requirement, including 100 basis points management buffer.

Turning to the businesses on slide 10, we show the results for services in the first quarter. Revenues were up 17% with the best first quarter in a decade, driven by growth across both TTS and Securities Services. NII increased 18%, driven by higher average deposit balances and deposit spreads. NIR increased 15% as we continue to see strong activity and engagement with both corporate and commercial clients and across key high-growth segments, including e-commerce and fintech, driving momentum across underlying fee drivers with cross-border transaction value up 12% and assets under custody and administration up 21%, which includes the impact of the market valuations as well as new assets onboarded. Expenses increased 14%, primarily driven by higher volume and revenue-related expenses, higher compensation, as well as higher technology costs. Average loans increased 14%, largely driven by export agency finance and working capital loans.

Average deposits increased 16% with growth across both North America and International, largely driven by an increase in operating deposits as we continue to deepen relationships with existing clients and onboard new clients. Services generated positive operating leverage and delivered net income of $2.2 billion with an ROTCE of 27%. Turning to Markets on slide 11, Markets had its best quarter in over a decade, with revenues up 19%, driven by growth in both fixed income and equities, with strong momentum across client segments, including corporates, asset managers, hedge funds, and banks. Fixed income revenues were up 13% with growth across spread products and other fixed income, as well as Rates and Currencies. Rates and Currencies was up 6%, driven by FX on higher volumes and optimization of the balance sheet, largely offset by rates.

Spread products and other fixed income was up 27%, primarily driven by strong growth in commodities. Equities revenues were up 39%, driven by continued momentum across derivatives, prime services, and cash. We grew prime balances by more than 50% with growth across both new and existing clients, as well as higher market valuations. Expenses increased 11%, primarily driven by higher performance-related compensation as well as higher volume-related and legal expenses. Average loans increased 27%, primarily driven by financing activity in spread products. Markets generated positive operating leverage and delivered net income of $2.6 billion with an ROTCE of 18.7%. Turning to Banking on slide 12, revenues were up 15%, driven by investment banking and corporate lending. Investment banking fees increased 12%, driven by growth in M&A and ECM, partially offset by a decline in DCM.

M&A was up 19% and represented our strongest first quarter in a decade, with continued growth in sell-side fees and strong performance with sponsors. ECM was up 64%, reflecting growth in follow-ons and convertibles against the backdrop of an active market. While DCM fees were down 6% amid lower non-investment grade activity, we maintained our overall market share versus year-end 2025. Corporate lending revenues, excluding mark-to-market on loan hedges, declined 3%. Expenses increased 20%, primarily driven by higher compensation and benefits reflecting performance and investments and higher volume-related transaction expenses. Cost of credit was $132 million, consisting of a net ACL build of $126 million, reflecting the increased uncertainty in the macroeconomic outlook and exposure growth, largely offset by refinements to loss assumptions. We continue to feel good about the high-quality nature of our corporate lending portfolio, with non-accrual loans and net credit losses remaining low.

Banking delivered net income of $304 million with an ROTCE of 15.8%. Turning to Wealth on slide 13, revenues were up 11%, driven by growth in Citigold and Retail Banking, as well as the Private Bank, partially offset by a decline in Wealth at Work. NII, which you can see on the bottom left side of the slide, increased 14%, driven by higher deposit spreads and average balances, partially offset by lower mortgage spreads. NIR increased 5%, driven by 11% higher investment fee revenues, partially offset by the sale of the trust business. Net new investment asset flows were approximately $15 billion in the quarter, contributing to approximately $43 billion in the last 12 months, representing approximately 7% organic growth. This contributed to client investment assets being up 14%, which also includes the impact of market valuations and was partially offset by the sale of the trust business assets.

Expenses increased 1%, driven by investments in technology and higher volume-related expenses, partially offset by lower compensation and benefits, including the impact of the sale of the trust business. Average loans were up 6% as we continue to grow securities-based lending and deploy balance sheet to support clients and drive client investment asset growth. Average deposits were up 4%, largely in the Private Bank, as net new deposits were partially offset by outflows and a shift from deposits to higher-yielding investments, including on Citi's platform. Wealth had a pre-tax margin of 18%, generated positive operating leverage, and delivered net income of $432 million, with an ROTCE of 10.8%. We remain confident in the path to higher returns from here as we continue integrating our Retail Banking business within Wealth and building on its improved performance this quarter. Turning to U.S. Consumer Cards on slide 14.

As we've said in the past, customer preferences have continued to shift towards general purpose cards, and as such, we've provided disclosures for this segment to show metrics split between our general purpose and private label portfolios. This quarter, revenues were up 4%, driven by growth across both NII and NIR. NII was up 3%, driven by higher interest earning balances and spreads, and NIR was up 14%, driven by lower partner payment accruals and higher annual fees. We saw momentum in underlying drivers supported by growth in general purpose cards, with acquisitions up 12%, spend volume up 6%, and average loans up 4%, partially offset by declines in private label cards. Expenses increased 1%.

Cost of Credit was $2.1 billion, consisting of $1.7 billion of Net Credit Losses, which declined 11%, as well as a net ACL build of $350 million, reflecting seasonal portfolio mix changes, the forward purchase commitment of the Barclays/American Airlines co-branded card portfolio, as well as increased uncertainty in the macroeconomic environment. This was largely offset by lower seasonal volumes and refinements to loss assumptions. U.S. Cards generated positive operating leverage and delivered Net Income of $732 million, with an ROTCE of 19.2%. Turning to slide 15, we show results for All Other on a managed basis, which includes Corporate Other and Legacy Franchises and excludes divestiture-related items. Revenues were up 15%, driven by growth in Legacy Franchises, largely offset by a decline in Corporate Other.

Growth in Legacy Franchises was driven by Mexico Consumer, which included the impact of Mexican peso appreciation, momentum in underlying business drivers, and a gain on the sale of an investment, partially offset by the impact of continued reduction from our closed exit and wind-down markets. The decline in Corporate Other was driven by lower NII, which included a lower benefit from cash and securities reinvestment resulting from actions taken to reduce Citi's asset sensitivity in a lower interest rate environment, partially offset by higher NIR. Expenses were down 4%, driven by lower legal and transformation expenses, as well as expenses related to closed exits and wind-downs and professional services expenses. This was primarily offset by higher severance and the impact of FX translation.

Cost of credit was $400 million, primarily consisting of net credit losses of $371 million, driven by loans in Mexico. To close, we've included our full year 2026 outlook on slide 16. While there remains a lot of uncertainty, at this point, our overall expectations are unchanged. Subject to macro and market conditions, we expect NII ex-markets up approximately 5%-6%, NIR ex-markets growth driven by momentum in services, banking, and wealth, and an efficiency ratio of around 60%. In terms of credit, we expect a total U.S. credit cards NCL rate of between 4% and 4.5%, which is lower than the aggregate of the expectations that we provided previously for branded cards and retail services, reflecting the delinquency trends and loss performance we've seen year to date. The ACL will continue to be a function of the macroeconomic environment and business volumes.

Additionally, we remain well-positioned to return capital to shareholders and plan to provide more detail on our expectations for share repurchases going forward at our Investor Day in May. As we take a step back, the results in the first quarter represent significant progress towards our goal of improved firm-wide and business performance. We remain steadfast and focused on executing our transformation and confident in delivering our ROTCE target of 10%-11% this year, and we look forward to laying out the path to delivering higher returns beyond that at Investor Day. With that, Jane and I would be glad to take your questions.

At this time, we will open the floor for questions. If you'd like to ask a question, please press star five on your telephone keypad. You may remove yourself at any time by pressing star five again. Please note you'll be allowed one question and one follow-up question. Again, that is star five to ask a question. We'll pause for just a moment. Okay. Our first question will come from Glenn Schorr with Evercore ISI. Your line is now open. Please go ahead.

Hi. Thanks very much. I think we get the great trading and banking results. I want to talk about Services if we could.

One is if you could give any color on the $4 trillion win on the BlackRock Middle Office Servicing ETF platform or portfolio. Two, maybe bigger picture, talk about what you think maybe I and the rest of us could be underappreciating in terms of the growth outlook in Services, including tokenization as a good thing as opposed to maybe the threat that people might think it is. Thanks.

Yeah. Hey, Glenn. Good to hear from you. Look, Services exceptional performance this quarter comes from successfully executing the strategy that Shahmir and his team precisely outlined at our Investor Day two years ago, and then going beyond it. We've told everyone this is a through the cycle business, which consistently delivers strong returns in a range of environments. This quarter, the team did just that. Revenue's up 17%, deposits up 16%, fees up 14%, returns at 27%. This is firing on all cylinders. Part of your question, why is this business growing so much? The growth is coming from deepening with existing clients, new client acquisition, and new product innovations. Our investments over the last few years, I think are best demonstrated by the 40% growth in new client mandates.

We have a very high retention of existing client business, and we have what can only be described as exceptional win rates. We are the leading franchise, not only in share but in innovation. You're seeing momentum across the board. For example, as you point out in digital assets, we are leading in tokenization. We've been investing in this for many years. I've talked about it on many of the recent calls on this. This is a benefit for us in driving and meeting more of our client needs in an always-on world, and an instant world. You're seeing us in real-time payments, where we are doing a lot of business with the global e-commerce juggernaut. As you say, in Securities Services, we laid out a strategy of growing share with North American asset managers, ETF, and in other spaces.

Frankly, BlackRock is the most notable win we've had. It is far from the only. We're also benefiting from our focus on fee generation, which continues to make over 30% of our revenues across different macro environments. There's a reason we call Services our crown jewel. It is incredibly durable. Our offerings are deeply embedded in our client operations. It creates lasting relationships and stable deposits. There is always a flight to quality when there are things going on in the world, and we are quality.

Maybe we could just follow up with a lot going on in the world. There was some conversation about linking you to some interest in being a bigger retail bank in the United States. Watching you fold the business into Wealth and tweaking the strategy, I know that lack of low-cost deposits has been a thing in limiting your profitability in the past, but you seem to be getting by now without that. I wonder if you could just comment in terms of just aspirations or not on that front. Thanks.

Let me kick off. I want to be crystal clear. We are only interested in and focused on organic growth, period. End of story, for the whole firm. We have achieved a lot in the last five years. We have a lot more to do, and there is a large organic growth opportunity ahead of us across all five of our businesses, and that is what we're focused on, and we're excited about it. I would say, Glenn, and for everyone listening on the call, if you walk away from this call thinking of nothing else, let it be this. Citi has a lot of momentum, and we're not going to be distracted from it. Now let's turn to the question about the retail bank and what are we looking at there. The Retail branch network, it's 650 branches.

The deposit base that we have across Wealth and the Retail Bank in the U.S. is about $284 billion. The footprint is a targeted one. It's in six urban markets with an affluent client base that covers a third of the nation's high-net-worth and affluent households. That's 40% of the ultra-high-net households. It's highly aligned with the Wealth business. It's an important source of clients for our investment franchise. We saw a lot of top-line momentum from the franchise. Last year, it was up 21% from the Retail Bank, and we look forward to continue improving its profitability and its performance and realizing the synergies between it and Wealth organically.

Our next question comes from Mike Mayo with Wells Fargo. Please go ahead.

I just wanted for you to be even more clear than you were already. You're only pursuing organic growth. Does that mean that Citi is not pursuing a deal or an acquisition? There's been so many articles, and as investors say to me, "Where there's smoke, there's fire." There's been so many articles about Citi pursuing an acquisition. Are you saying Citi is not pursuing a deal? You're not thinking about Citi pursuing a deal, and that's 1,000% off the table?

I am always transparent. I'm always straightforward with you. I want it to be crystal clear. We are not interested in anything other than organic growth.

Okay. A separate question as it relates to the transformation. You're now up to 90% done, and I guess the question you can answer is, since you're done with the safety and soundness part of the transformation, I have a tough time reconciling why the consent order is still on, when regulators are focused on safety and soundness. I'm sure you've put your best foot forward in that argument. What you can answer is the last 10%.

A last mile problem with the last 10% of the transformation, or is this continuing to move forward? What is that last 10%, and what's left?

Yeah. There is no challenges for us ahead. 2025 was a real turning point for us on the transformation, and we just continued the strong execution into 2026. We're finished with the vast majority of the work. As I've said earlier, 90% of the transformation programs are now at or mostly at Citi's target state, and they're operating in BAU mode. What does that mean? What's left? For each major body of work, what you have to do is define. We defined our target state and the work that needs to be done to achieve that target state. We are at or nearly at those Citi-defined target states for all the bodies of work except our data programs. The remaining work of that 10% is primarily related to data used in our regulatory reporting. Mike, I'm pleased with our progress on this.

We are executing well. However, once we are operating well at our target state, what happens next? We pass that work over to our independent audit team for validation. Once it's validated, each major body of work is then handed over to our regulators, and they go through their assessment. They move to their closure process when they are satisfied with the work. This takes time. Let's be very clear, they control the timeline. Completing the work is just the beginning of the end. From an investor point of view, you can see the transformation expenses have started to come down as we complete the different bodies of work. This is helping create capacity for investments in AI and other strategic business priorities. At Investor Day, Mike, I will detail the many benefits that we have been gaining from the transformation.

Our next question comes from John McDonald with Truist Securities. Please go ahead.

Hi. Good morning. Gonzalo, I was wondering if you could give a little bit of a take on the new Basel and G-SIB proposals and what they mean for Citi. Any initial estimates on the impact if they were approved as proposed?

Right. Well, thank you, John, and good morning to everyone. Pleased to be here. As we look into the rules, our expectation is that overall, there will be a net benefit to Citi. You have seen that in the estimates from the regulatory agencies as it relates to the Category one and two banks. We see a moderate net benefit on what has been published. Of course, when you look at the full stack with the Stress Capital Buffer, we expect an even additional benefit there. Some puts and takes, of course.

When you think about RWAs and those pieces related to Basel III, you have the components of retail and corporate credit providing a benefit, and that mitigated by the operational risk, the CVA, and the market risk, as you probably would expect. On the other side, on G-SIB, even if we probably have feedback for regulators there, at the same time, you can see in the G-SIB, there's benefit from the coefficient going back to 2019 as we have been advocating for. Thank you.

Did that result in a net benefit to Citi at this point, Gonzalo, in terms of the RWA, presumably up a little bit and the G-SIB down a little bit? Is there a net benefit that you see on the initial proposal?

Okay. Just a question for you also on the efficiency ratio. You started off very strong at 58%, even with the big severance in the quarter. Could you give some context to the target for 60% for the full year? What are the puts and takes if you're starting at 58%? I assume there's some seasonality from the first quarter, but just walk through the 60% target versus starting so strong at 58%.

Thank you very much, John, and I'm glad you kind of answered your own question there, given how much you know about us. That's good to see. Maybe before I get into the specifics, maybe it's worth grounding ourselves in how we think about expenses, right? Our approach is really to maintain very strong cost discipline on a tactical basis. In addition, is to be driving structural efficiencies over time so that we can enable and allow ourselves to make the targeted investments that we think are necessary in order to drive our returns consistently over time to a higher place. That's really our mantra and what we're focused on.

When you look at, and you break down those expenses for the quarter, and you have that 7% growth over the anchor by the 14% revenue growth, which drives that 400 basis points improvement in operating efficiency. You have the effect of the severance that you mentioned there, and you can see at the bottom of the page we provided on earnings. You have FX playing a role. Of course, the revenue-driven costs and transactional costs attached to our revenue that you can see in transactional revenues, in cost, and also in some of the compensation pieces. We're also making targeted investments, right? We've done it in Services, we're doing it in Banking, we're doing it in Wealth. For us, it's important to be able to have that balance. As we look through the year, we're comfortable we're sitting with around 60% for operating efficiency.

It's primarily on the basis of, yes, you alluded to it, there's seasonality that comes with the first quarter. Usually, Markets has the strongest quarter of the year on the first, and that is true in this case as well. We also think it's important to be able to balance that seasonality as well as recognize that we're trying to make targeted investments so that we can get our returns to be higher, right? Our objective, in my mind, is very simple, right? We're focused on driving sustainably, improving returns over time, not just to give you short-term upside. Thank you.

Our next question comes from Ebrahim Poonawala with Bank of America. Please go ahead.

I guess just following up on that. Gonzalo and Jane, appreciate the seasonality in the business, but when sort of putting together the momentum you have, the way you're talking about sort of just across businesses, when we look at the 13% return on tangible equity Citi earned this quarter, I have a hard time thinking why it should go down to the 10%-11% range, even adjusting for some of that seasonality on expenses and markets revenue. Just maybe frame it if you think there are areas where Citi may be over-earning in any given quarter that's boosting the ROTCE to 13%, and if that logic is missing something.

Let me jump in with one point, and I'm going to go British on you. One great first quarter does not a full year make. The first quarter is always the strongest. We do have an unclear macro environment ahead, and we want to continue investing. I think what you're hearing from us clearly is we've confidence in being able to deliver the 10%-11%. We want to keep investing in the business, as Gonzalo was just talking about. Our revenue growth is important. We'll be talking through the investments we want to make to continue the pretty impressive revenue growth we've had the last few years and intend to continue having. I would just make it as simple as that.

Got it. I guess maybe just quickly on the capital front, it is good to see buybacks ramp up this quarter. As we look forward, do you think we stay in a holding pattern in terms of the CET1 ratio where it ended this quarter? How do we think about incremental capital leverage at Citi beyond just optimizing how capital is deployed?

All right. Thank you, Ebrahim. Good morning, and good to hear you. I think a couple of things stand out. Of course, for those that are referencing the deck, you can go to page nine, and you can see there at the bottom left of the slide. It kind of goes to the core of your question. We have guided in the past that our objective was to, through this year, be at around 12.6%. We're basically there as it relates to Q1. Let me walk you through for a second on what has been driving that. First, you can see us in this quarter, right, basically reducing the excess that we had above our regulatory capital and the management buffer that we have carried for some time. That gives you a signal of how we're basically at or around where we wanted to be.

Now, we came at this from a couple of angles, right? First, the earnings power that you saw in the quarter, which was very strong. In addition, we closed the sale of our Russia entity in the middle of the quarter. That released, within the quarter, about $4 billion of capital. We've been very thoughtful and active in thinking about the deployment of that capital. You can actually see it even on the slide and through the results, that our RWA deployment is really to anchor the activities that we're driving with our clients and the intense engagement that we have with them. It's no surprise that markets also had a very strong quarter on the back of the support that we gave. As you see us, and I'm using this as a micro example of how we think about it so that hopefully it's helpful.

You had an event-driven component. Obviously, you had earnings, which over time will be the primary driver, but you have an event-driven component. A part of that goes to support accretive growth return opportunities for our businesses. In addition, another piece goes into the buybacks that we just announced for the quarter, which are high watermark at 6.3. Obviously, there will be more to come as we go into Investor Day. Thank you.

I jump in with just three observations as well. First of all, G-SIB is still gold-plated relative to the Basel standard. The economy has grown significantly since the original framework was created, but the current proposal doesn't fully account for that growth. We're going to be very active in advocating for that, as you've been hearing from some of the other bank CEOs. Secondly, there is still material duplication between the NPR and the current Stress Capital Buffer for operational risk, for market risk, for CVA. That needs to be eliminated in the revised Fed SCB models. The third piece, which I know you've heard from us on many occasions, our SCB still does not reflect our strategy.

Fully, the divestitures we've made are the elements of it and really the risk profile the bank has today, which is so different from what it was in the past. I think those three elements are things that we're obviously going to be active on, and I hope will also be helping us going forward.

Our next question comes from Jim Mitchell with Seaport Global. Please go ahead.

Hey, good morning. I think we all appreciate the breakout of the card business on its own, and we can see some solid profitability there. It does also highlight, I guess, the low profitability of the consumer branch banking segment. I know we'll hear more of this at Investor Day, but can you just kind of discuss what the issues are there and what you see as the opportunities to improve efficiency and returns within that segment?

Thank you, Jim, and good morning. I'm assuming it broke down there for a little bit, but I'm taking your question as more focused on the retail bank, right, and how we think about the return profile? If you look at what we did.

Yes. Thank you. Thanks for confirming that. If you look at our ROTCE for the quarter, and that's an all-in, and I know we've restated in the supplement, you can actually see the history there. You can see that our ROTCE at 10.8%, of course, is not where we want it to be, and of course we have more work to do. If you think about it from going back to a year, it's almost doubled in the year since. Jane was alluding a little bit to this earlier. We have made progress both in our retail bank franchise as well as in our wealth franchise in terms of driving consistent revenue growth and positive operating leverage. That will take us home. That's basically the simplest version.

If you look at last year, the Wealth business in aggregate with this new recasted element was growing at 16% revenue and 1% expenses. That's 15% operating leverage. If you look at this quarter, you can see the 11% and the 1%. Another quarter of very strong operating leverage, and that comes on the back of the good momentum that we have on deposit volumes, mix management, pricing management, that give us the confidence that there's sustainability there, as well as the good levels of activity and the focus on NNIA and driving client investment assets so that we can, over time, also balance the business there between investments and deposits.

The more quarters we can put together in the future with the same kind of profile around solid revenue growth and maintaining the discipline that Andy and the team have kept on driving continuous productivity while still investing for growth, the closer we're going to be to getting to the ranges that you would expect and that we would push and expect of ourselves as well. I have good confidence, and you can kind of see the momentum. We know we have to show it still, but you can see in the recent past that we make the progress, and I have confidence in the immediate future. Thank you.

Right. Great. Maybe just as a follow-up and pivoting to just private credit, any thoughts and detail on your exposures and how you're thinking about the credit risk there would be helpful.

Sure. Thank you. Maybe a couple of thoughts there. Maybe let me step back. First, I feel very good about our position. We wanted to provide additional transparency on disclosure. You can see that on page 23. Let me start with what gives me comfort across our range of corporate exposures, including our private credit piece, and I'll go there as well in a second. First, we have a very strong risk appetite framework. When you think about customer selection, we're very rigorous there. You know we do business with global multinational companies, with top-tier sponsors and asset managers. These are folks that have strong balance sheets and have the ability to withstand different environments. Secondly, we are not one-product relationships. We are, in most cases, multi-country, multi-product, multi-year relationships. That gives us confidence. The second piece is, we have very strong protections.

We look at concentrations, which range from single name to country, to geography, to sector, to industry, and across the board, we look for correlations to make sure that we're not missing things that may be linked in sometimes hidden ways. You have seen the great performance with NCLs, both low and stable. You have seen us also be very prudent in terms of reserves. Right. We feel we're adequately reserved there. Last but not least, we are constantly stress testing our portfolios in the private credit space and in all the spaces to make sure that both for a range of macroeconomic environments, but also for event-driven aspects that we're passing our own tests and we're comfortable with how we're sitting there. The constant monitoring, the risk capital framework all play a role.

Now, we gave you a bit more clarity because we thought it was important to provide. You can see it's not a significant exposure for us, right at $22 billion of loans, 98% investment grade. That's because we have ample subordination, right, in terms of the position that we take and all the protections that I was alluding to. We also have additional protections in terms of our collateral. We have fraud controls. We utilize third parties where appropriate so that we just don't rely on attestations and warranties. We feel very good and comfortable that we are able to navigate a range of environments with a portfolio, and it's all anchored in the strength of our risk capital that we built over time. This is not built in a day. It comes from years of constantly strengthening.

Our next question comes from Manan Gosalia with Morgan Stanley. Please go ahead.

Hi, good morning. Gonzalo, I just wanted to clarify, as you have some of these business exits, I know you get a temporary benefit from CTA. Are you saying that gives you the opportunity to be more nimble on your capital deployment strategy, whether it's in buybacks or in the Markets business as you get that benefit between the announcement and the actual deconsolidation?

All right. Thank you, Manan, for the question. What I would say is, and I mentioned a little bit earlier, for us, it is really a balance, right? When we have events like in the case of Russia that we just saw, and I'll allude to your comment, which I think was a little bit more specific to Banamex, right, as it relates to the deconsolidation. What I'll mention is we're always looking for opportunities to deploy that capital constructively in accretive ways to support our businesses and support our clients. I think Q1 just gives me, magically, a very good example of our behavior. You can actually see it come through in real life versus just me describing in general terms.

On the back of the Russia event with the $4 billion of relief, you have seen us both support our businesses and anchor some of the results that you just saw in the quarter from Markets, as an example, and a couple of other businesses. At the same time, you're seeing the highest level of buybacks that we've done in any quarter on the 6.3. That's supported by an event like that. Now, as it relates to Banamex, as we've alluded in the past, there is a temporary capital benefit that happens both on the 25% sell-down that we announced and executed during the fourth quarter last year, as well as one to come when we complete the closing of the second tranche of the sell-down of the 24% that we announced recently, which will happen over the next few months, right?

That's temporary in nature. I think you were alluding to it, too. Clearly, you've studied all of us very well, Manan, which is at deconsolidation, you can expect the CTA to come back, right? We've been clear in the past that that will attract about an 8.5 or so CTA adjustment that will flow through the P&L. In aggregate, it's capital neutral. Thank you.

Got it. Okay, great. Maybe just pivoting over on the expense side, you've been pretty clear that as part of the transformation project, Citi is not just delivering on the asks from the regulators, but also taking the opportunity to invest in modernizing. I guess my question is just beyond the transformation, how do you view your current tech stack, versus where you want it to be? How are you thinking about tech spend going forward?

Yeah, we'll go into a lot of detail about this at Investor Day in terms of laying out not only in technology, we'll spend quite a bit of time on AI and the structured strategic approach that we're taking to this firm-wide. In the three weeks, you're going to get a lot of clarity around all of this. I feel good about the modernization we've done, as we've moved our tech stack from a multiplicity of different platforms into singular platforms, at the same time making sure that we've got good, simple, singular processes end to end that we have been working on simplifying and automating over the last few years. I think we feel good about that side. We feel good about the investments we've been making in leading-edge innovations in technology like our Citi Token Services, like Payment Express and Services.

I could give you a long list in Wealth and what we're doing in Markets, et cetera, but we'll leave that for the seventh. I think above everything, the other area we're really happy about is the investments we've made in our data and architecture, where we are on a single repository for all of our data for institutional and a single one for consumer, enormously beneficial in the world of AI that we're living in. Thank you.

Our next question comes from Ken Usdin with Autonomous Research. Please go ahead.

Thank you, just to follow up on the NII side. First of all, seeing the very strong end-of-period and average loan and deposit growth, I know looking at the supplement, there's a little help from FX translation in there. Upper single-digit growth, just wondering how sustainable that is, especially on the deposit side and if you saw any environmental-related benefits that possibly might not continue.

All right. Thanks very much, Ken, and good to hear you. I think as we look at NII ex-markets, and maybe just to refresh everybody's minds, what we guided for the year, and it's on the deck, it's 5%-6% NII ex-markets growth, and that is anchored by around mid-single-digit growth for both loans and deposits. We're pleased that Q1 is a good showing against that. As you highlighted, there is a bit of FX playing a role there for the 7% that we delivered, but we are comfortable in that guidance. The part that I like the most about it is that most of that growth is really anchored on client-driven activity, right? Our commercial intensity, how we're pushing to win in the market with our customers, whether it's in Services, whether it's in Wealth, both of those are driving deposits.

Services up 16%, deposits, Wealth up 4%, all of that blends to the 11% that I think you were marking. In terms of loans, ex-markets, we are growing at the 5% mark, which is again, in line with our guidance. You can see that coming through in Wealth. You can see it coming through in U.S. Cards and also in Services with export financing and working capital. As I said, most here of the growth is really being driven by the commercial intensity, the client engagement, and how we're winning in the market with our proposition, and that's a good place to be. There are smaller contributions into it from both the pricing discipline that we've shown, right?

Citigroup (C) Q1 2026 Earnings Call Transcript

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