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

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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.

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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>

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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.

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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.

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

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

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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.

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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.

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

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Citigroup

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Hello, and welcome to Citi's third quarter 2026 earnings call. Today's call will be hosted by Margo Pilic, Head of Citi Strategy, M&A, and Investor Relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you will 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. Pilic, you may begin.

Thank you, Operator. Good morning, and thank you all for joining our third quarter 2026 earnings call. I am 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, Margo, and good morning to everyone. This morning, we reported net income of $5.2 billion for the third quarter, with an EPS of $2.85 and an ROTCE of 11.5%. Our returns improved meaningfully in Services, Banking, Wealth, and U.S. Consumer Cards. The firm's ROTCE grew by 180 basis points over last year, and our net income was up 17%. With revenues up 8% year-over-year, we delivered our best third quarter revenue in a decade, and we saw revenue growth in four out of our five businesses. As previously shared, we pulled some of our planned investments and severance into this quarter. We remain very intentional around our expenses and our investments in talent and technology. Even with this pull forward, we delivered positive operating leverage, holding expense growth to 3%, excluding last year's notable item.

Our overall performance continues to demonstrate the disciplined and consistent execution of our strategy. Now let's go through our five businesses. This was another standout quarter in Services, with revenues up 15%. Growth was broad-based across every driver, from deposits to commercial card spend, and we saw continued momentum in trade loans and cross-border activity across the network. We continue to lead through innovation, bringing new real-time capabilities to our clients with the launch of Citi Token Services in the U.A.E. and Japan and the introduction of Custody+. Assets under custody and administration grew by 16%, and we are laser-focused on winning and onboarding further new mandates. In Markets, revenues were up 6%. Equities revenues were up 14%, driven by our performance in prime and in Asia, where we have been investing to gain share. FIC was up 4%.

Rates was pressured by the trading environment, but we saw good growth in FX and spread products, both stable revenue streams. In Banking, revenues were up 6%. We performed particularly well in ECM, where we played meaningful roles in the six largest transactions of the quarter, including leading SK Hynix, the largest-ever IPO of an Asian-based issuer. In leverage finance, we led SoftBank's $11 billion high-yield offering, the largest ever of its kind. I am proud of these wins and how our client relationships and bankers, including the new talent we have attracted, allowed us to land these mandates. As you've seen this quarter, we are continuing to invest responsibly in high-quality talent to build on our strengths and fill identified gaps in our franchise. Wealth's performance continues to steadily improve, with growth across all three businesses. ROTCE was over 14%, significantly higher than last year.

We brought in $38 billion in net new investment assets this quarter, up over 100% from a year ago. We continue to launch new offerings, such as Premium Boost, to deepen client relationships and are seeing strong uptake of our Wealth offering by our retail bank clients. In U.S. Consumer Cards, revenues were flat as a result of higher partner payments. At the same time, our general purpose portfolio drove 6% growth in total average loans. We're increasing investment in this business both through our deep relationships with key partners and differentiated rewards for our customers, as you saw with the acquisition of Kard. With returns of over 21% in the quarter, this is already a very attractive business and the benefits of our investments will continue to scale over time.

In legacy franchises, we closed on the sale of a 1.4% equity stake of Banamex, bringing the total amount divested so far to 49%. We're now busy preparing for Banamex's deconsolidation from Citi next year. The IPO would happen after that when market conditions allow and when the usual regulatory requirements are met. At that point, our international consumer divestitures will be nearly complete. Turning to capital, we returned over $4 billion to our shareholders this quarter, including $3 billion in share buybacks. We have also utilized about 900 million of our disallowed DTAs so far this year, slightly above the path we discussed at Investor Day in May. Our tangible book value per share rose 6% to $101.59. Our CET1 ratio stood at 12.8% and remains about 120 basis points above our current regulatory minimum.

Now, I know that the opportunities and risks that AI presents are on everyone's mind. Our transformation has modernized our core technology platform, giving us the foundation we need to implement AI firm-wide. As I've said before, we're approaching AI through four lenses. How it can help us grow, how we can deploy it to operate more efficiently, how we can teach our people to use these new capabilities, and how we can strengthen our defenses given the enhanced threat environment we and our clients face. I've talked frequently in the past about what we're doing on the first three, and we're excited about the top-line benefits and the efficiencies we are delivering, and the many opportunities to do more for our clients. But let me spend a minute on the fourth lens. Our cyber defense strategy is about being on the front foot, about moving fast and retaining trust.

We don't wait for risks to happen. We're constantly preparing and improving our defenses. We're in the business of managing risk every day, and this is no different. We've been hardening our systems and running challenging and disruptive scenarios to stress test our defenses and our responses. We then modify our playbooks based on what we've learned, so we're ready before an event occurs, not after. We're focused on our resilience and working with our peers and regulators on reducing systemic risk, even as we deploy AI to improve the performance of our firm. Finally, on the macro environment, conditions did soften a bit during the third quarter. While various headwinds, most recently higher energy prices and tighter monetary policies, have been challenging, the global economy has held up remarkably well.

In the U.S., whilst much has been made of the AI boom, the consumer is still driving much of the growth, the labor market is stable, and companies remain active. Our near-term economic outlook remains positive. China is seeing similar benefits from AI, but without the consumer spend needed for balanced growth, and so their economy leans heavily on exports. Europe remains structurally challenged. That backdrop is exactly why clients are leaning on our network. They're engaged, and they are healthy, as you will see from our credit numbers. They're open to strategic opportunities whilst being keenly aware that there could be more disruptions ahead. Our focus is on delivering our network and providing the intellectual firepower to help them compete more effectively, raise capital, or manage their supply chains. They know we will be at their side no matter what environment they face.

This quarter was another proof point of our consistent execution and delivery in the face of a dynamic environment. In terms of the journey ahead, as you know, we expect to exceed this year's ROTCE target of 10%-11%, even as we pull forward the investments to support our near-term target of 11%-13%. These are simply the next waypoints on our path to reach 14%-15% in a sustainable manner, which we will do. With that, let me turn it to Gonzalo, and then we would both be delighted to take your questions.

Thank you, Jane, and good morning, everyone. I'm going to start with the firm-wide financial results, focusing on year-over-year comparisons unless I indicate otherwise, and then review the performance of our businesses in greater detail. On slide four, we show financial results for the full firm, which demonstrate the progress we've made and the momentum of our strategy. This quarter, we're reporting net income of $5.2 billion, EPS of $2.85, and ROTCE of 11.5% on $23.8 billion of revenues, generating positive operating leverage. Total revenues were up 8%, driven by growth in Services, Wealth, Markets, and Banking, partially offset by a decline in all other. Net interest income, excluding Markets, which you can see on the bottom left side of the slide, was up 7%, driven by growth in Services, Wealth, and U.S. Consumer Cards, partially offset by declines in all other and Banking.

Non-interest revenues, excluding Markets, were up 12%, driven by growth in all other, Services, Banking, and Wealth, partially offset by a decline in U.S. Consumer Cards. Total Markets revenues were up 6%. Expenses of $14 billion were down 2% on a reported basis, with an efficiency ratio of 58.5%. Excluding the impact of the $726 million Banamex goodwill impairment notable item from the third quarter of last year, expenses were up 3%. Cost of credit was $2.6 billion, which included a firm-wide net reserve build of $369 million. Looking at the firm on a year-to-date basis, we generated positive operating leverage and an ROTCE of 12.6%. On slide five, we show the expense and efficiency trend over the past five quarters.

As I just mentioned, excluding the impact of the notable item last year, expenses were up 3%, primarily driven by higher transactional and product servicing, deposit insurance costs, and compensation and benefits, partially offset by lower professional services expenses. On a year-to-date basis, we have recognized over $1 billion of severance, largely across functions, technology, and operations as we continue to drive structural efficiencies and bring down transformation expenses and stranded costs to create capacity for business growth. On slide six, we show U.S. cards and corporate credit metrics. At the end of the quarter, we had over $22 billion in total reserves, with a reserve to funded loan ratio of 2.5%. Our reserves incorporate an eight-quarter weighted average unemployment rate of 5.3%, which includes a downside scenario average unemployment rate of nearly 7%.

We maintain a high-quality credit card portfolio with approximately 86% 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 7.7%. We continue to see strong consumer credit performance as both net credit loss and delinquency rates in our overall cards portfolio decline year-over-year. Looking at the right-hand side of the slide, you can see that our corporate exposure is 79% 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 and rigorous client selection. Turning to capital liquidity and the balance sheet on slide seven, where I will speak to sequential balances.

Our total assets of $2.9 trillion increased 2%, driven by growth in trading-related assets and loans. Net end of period loans increased 3%, driven by growth in Markets and Banking. Our $1.5 trillion deposit base remains well-diversified and increased 1%, primarily driven by growth in Services. We reported a 114% average LCR and over $1 trillion of available liquidity resources. In the third quarter, we continued to deploy capital to support accretive client activity, while at the same time prioritizing the return of capital to common shareholders, as evidenced by the $3 billion in buybacks and the 12% increase in our quarterly common stock dividend. We ended the quarter at 12.8% CET1 ratio under the binding standardized approach, approximately 120 basis points above the 11.6% regulatory capital requirement. Turning to the businesses on slide eight, we show the results for Services in the third quarter.

Revenues were up 15%, driven by growth across both TTS and security services, reflecting the benefits of our continued investments in the business. NII increased 17%, driven by higher average deposit balances and deposit spreads. NIR increased 12%, driven by growth in fees as we continue to see strong activity and engagement with both corporate and commercial clients, driving momentum across underlying KPIs. Expenses increased 10%, primarily driven by higher severance as well as volume and revenue-related expenses. Average loans increased 14%, largely driven by working capital loans and export agency finance. Average deposits increased 16%, primarily driven by growth in the U.S. Services generated positive operating leverage, net income of $2.6 billion, and an ROTCE of 31.2% in the quarter and 29.7% year-to-date. Turning to Markets on slide nine, revenues were up 6%, driven by growth across both equities and fixed income.

Fixed income revenues were up 4%, with spread products and other fixed income up 13%, driven by an increase in spread products financing revenues. Rates and currencies was flat with growth in currencies on higher volumes offset by lower revenues in rates. Equities revenues were up 14%, driven by continued momentum in prime services as balances grew by over 40%, partially offset by a decline in derivatives revenues. Expenses increased 7%, driven by higher transactional expenses and compensation. Average loans increased 30%, primarily driven by spread products as we execute against our Investor Day strategy to drive more stable financing revenues. Markets deliver net income of $1.7 billion, an ROTCE of 12.3% in the quarter and 15.9% year-to-date. Turning to Banking on slide 10, revenues were up 6%, driven by growth in investment banking and gains on loan hedges, partially offset by a decline in corporate lending.

Investment banking revenues increased 9%, driven by 77% growth in ECM, partially offset by declines of 4% and 3% in advisory and DCM respectively. Corporate lending revenues, excluding gains on loan hedges, declined 16%, driven by lower loan spreads, partially offset by higher average loan balances and commitments. Expenses increased 8%, driven by higher compensation and continued investments in the business. Cost of credit was $23 million, consisting of $43 million in net credit losses and a net reserve release of $20 million. Banking delivered net income of $378 million, an ROTCE of 19.2% in the quarter and 17.7% year-to-date. Turning to Wealth on slide 11, revenues were up 15%, driven by growth across all businesses. NII, which you can see on the bottom left side of the slide, increased 20%, driven by higher deposit spreads and average deposit balances, partially offset by lower mortgage spreads.

NIR was up 5%, largely driven by higher investment fee revenue. Client investment assets were up 15%, primarily driven by net new investment asset flows, which were $38 billion in the quarter, contributing to over $75 billion in the last 12 months, representing 11% organic growth. Expenses increased 3%, driven by higher compensation. Cost of credit was $102 million, consisting of $70 million of net credit losses and a net reserve build of $32 million. Average loans were up 4% as we continue to grow securities-based lending and mortgages. Average deposits were up 3%, driven by growth in the private bank, partially offset by a modest decline in Citigold and Retail Banking. Wealth had a pre-tax margin of 22%, generated positive operating leverage, net income of $585 million, and an ROTCE of 14.3% in the quarter and 13.2% year-to-date. Turning to U.S. Consumer Cards on slide 12.

As a reminder, our year-over-year results continue to reflect the impact from the acquisition of the additional American Airlines co-branded card portfolio onboarding April. In the quarter, revenues were flat, with growth in NII offset by a decline in NIR. NII was up 6%, driven by higher interest earning balances. NIR was down 62%, driven by higher accruals from partner payments, as well as rewards costs, reflecting our investments for growth, partially offset by higher interchange and annual fees. Consistent with the strategy we laid out at Investor Day, we saw growth in general purpose cards, with spend volume up 13% and average loans up 9%, both partially offset by declines in private label cards. Expenses increased 2%, driven by higher transactional expenses as well as advertising and marketing as we invest to drive future acquisitions and continued customer engagement, largely offset by lower compensation.

Cost of credit was $1.9 billion, consisting of $1.7 billion of net credit losses and a net reserve build of $208 million, primarily driven by changes in the macroeconomic outlook. U.S. Consumer Cards delivered net income of $851 million, an ROTCE of 21.8% in the quarter and 21% year-to-date. As I mentioned last quarter, while we expect ROTCE to remain around or through the cycle target for the business, in certain quarters, we do expect expense growth to outpace revenue growth as we invest in the business to drive engagement and acquisitions with some of these investments reflected as contra revenues and others as expenses. Turning to slide 13, we show results for all other on a managed basis, which includes corporate other and legacy franchises and excludes divestiture related impacts, notably the $726 million Banamex goodwill impairment in the third quarter last year.

Revenues were down 3%, driven by declines in legacy franchises and corporate other. Expenses were down 14%, driven by lower transformation expenses in corporate other, as well as lower expenses from our exits and wind downs, which declined to a run rate of approximately $100 million in the quarter, partially offset by the impact of Mexican peso appreciation. Cost of credit was $532 million, consisting of net credit losses of $433 million driven by consumer loans in Mexico and a net reserve build of $99 million. We have reduced the total firmwide DTAs deducted from CET1 capital by approximately $900 million year-to-date, as U.S. profitability continues to improve. Additionally, in the appendix of the presentation on slide 20, we have provided an overview of financial impacts related to the Banamex divestiture. There are three points that I would like to highlight.

First, upon our full exit from Banamex, we expect the cumulative net capital impact to reflect the release of CET1 capital associated with the Banamex RWA, removal of certain CET1 deductions, and the cumulative gains or losses over the divestiture horizon. Second, as we have shared previously, as part of the deconsolidation process, we expect to recognize an approximate $9 billion CTA-related loss through the P&L in early 2027. Third, we expect the impacts related to the deconsolidation process to be slightly accretive to our CET1 capital ratio. To close, we have included our full year 2026 outlook on slide 14. We expect to deliver an ROTCE above 11% for the full year, supported by NII ex-Markets growth in the mid to high 6% range, and continued NIR ex markets growth driven by fee momentum in Services, Banking, and Wealth, partially offset by USCC.

In Markets, we expect a typical seasonal decline in the fourth quarter around the same magnitude as last year, which was 20%, or possibly a bit more given the strong performance so far this year. Given this outlook for revenue, combined with our continued focus on expense discipline, we expect our full year efficiency ratio to be below 60%. As it relates to credit, based on the strong performance we have seen so far this year and our expectations for the fourth quarter, we now expect a full-year total U.S. Credit Cards NCL rate of around 4%, the low end of the range we provided previously, while the ACL will continue to be a function of the macroeconomic environment and business volumes. We will continue to provide the businesses with capital to pursue accretive growth opportunities while returning capital to shareholders.

We remain confident in the strategy we laid out at Investor Day, and in our ability to deliver on all of our commitments. As we take a step back, the results in the third quarter and year-to-date this year represent significant progress towards our goal of improved firm-wide and business performance. Our strategy is working, and we have a clear path to delivering higher sustainable returns. With that, Jane and I would be glad to take your questions.

At this time, we will open the floor for questions. For today's session, we will be utilizing the Raise Hand feature. If you would like to ask a question, simply click on the raise hand button at the bottom of your screen. If you have joined by phone, please press star nine to raise your hand. Once you have been called on, please unmute your audio and begin to ask your question. If you have dialed in, you can unmute by pressing star six. Please limit to one question. Thank you. We will now pause a moment to assemble the queue. Our first question comes from the line of John McDonald with Truist. You may now dial star six to unmute and ask your question.

Hi, good morning. I was hoping to kick off, you could put your strong year-to-date results on ROTCE into context. Obviously, you have got the 12.6% ROTCE for the year and 11.5% this quarter. It implies a little bit of deceleration in the fourth quarter, if you do something ending up at 11%-12% for the year. Understanding there is lots of factors around seasonality and how much spending you pull forward, could you speak a little bit to the near-term expectations and trajectory for ROTCE for the fourth quarter, and then as you look out for the next two years?

All right. Good morning, John. Thanks very much for the question. It's a great question, and I think maybe a couple of thoughts to step in there. The first is our number one priority is driving sustainable return improvement. That's very clear. The second piece that you can see from our results throughout this year is that our strategy is working. You're seeing the compounding effect of client intensity and execution milestone after execution milestone in a constructive backdrop, but that execution is clearly there. The next piece I would mention is we have lifted our guidance now, again, from the high end of the 10%-11% or a bit better than 11% to above 11%. That hopefully gives you a sense of the confidence that we have and the discipline that we have going into the end of the year.

Now to your point, and I think you alluded to this in your question already, there is a natural seasonality. I just mentioned that in my remarks as it relates to Markets. There are other elements beyond Markets too. When you think about the Market component alone, last year was about 20% decline quarter-on-quarter between Q3 and Q4. This year, as I mentioned a few minutes ago, could be a bit worse on the basis of how strong the year has been so far and the dynamism in the market right now. When you flow the math similar for ROTCE, even if you look historically over the last couple of years and you adjust for the typical notable items that may be there from time to time, you do land at a high single digits rate.

That more or less sets you up for the above 11% that we're looking at. But you can see the confidence coming through in how we've been raising the estimates over the last 30 days a couple of times over. As you look forward into 2027, I think undeniably we have business momentum. You can see that on our revenue growth, 7% a year ago, ex notable items. First half of the year, about 14%. This quarter, about 8%. You look at the drivers, you can see the client momentum driving that revenue growth. So we feel very good about that.

We haven't moved an inch from our Investor Day commitments. The near-term targets for returns, just as a reminder for everyone, are 11%-13% into the 2027 and 2028 time period. So we're comfortable with that. And we also tested those for a range of environments. So we're not expecting the sun always to be shining, the wind in our backs, and us walking downhill. We have tested that for a range of outcomes. Thank you.

Thanks, Gonzalo. Appreciate that. Maybe just as a follow-up, a question on capital. How are you thinking about the glide path to the capital target you laid out at Investor Day? How do rates factor into that in terms of rates and what it means for buybacks? Thank you.

All right. Thank you for the follow-up. Maybe just to baseline everyone again. Today we're at our CET1 of 12.8%, which is about 120 basis points above our regulatory minimum. As per Investor Day, the regulatory minimum that we talked about, and you were alluding on your question to the glide path, we have talked about how we are now at 11.6% as a regulatory minimum, and our assumption is that we go into 12.1% as a regulatory minimum starting in January of 2028. At Investor Day, we gave a directional target of 13.1%. That gives you a sense of the direction of travel. We continue to be comfortable with that direction of travel. That I think is the key piece. The second piece is, and going into the buybacks component of your question too, I would say a couple of things. First, maybe restating our framework.

Our framework is we hold capital for resilience and flexibility, and we deploy it for returns and to distribute it to shareholders. That's kind of the staircase that we talked about on Investor Day, and that's hopefully you're seeing us apply that every single one of the quarters this year. When you look at this quarter as one example, I feel good about how we were able to deploy our balance sheet to fuel the revenue growth that you're seeing, the improving returns year-on-year that you're seeing, and at the same time return $4 billion of capital to shareholders, three of which in buybacks, while still holding an appropriate cushion above the reg requirements to be able to navigate the environment. By the way, along the way absorbing some OCI shifts that happened due to rates in the quarter.

I feel good about that ability to balance that equation. We did that in the preceding quarters as well, maybe with a bit less OCI action, but that hopefully gives you a sense of business has momentum. We do have a balanced framework in place, and we try to find the appropriate balance there, always starting with being a source of resilience. Thank you.

Thank you. For today's call, we invite a limit of one question plus one follow-up. Our next question will come from Mike Mayo with Wells Fargo. You may now unmute and ask your question.

Hey, Gonzalo. On the second quarter earnings call, you talked about pulling forward investment spending of the $5 billion over three years to now, I guess, $500 million this year. How much of that has been spent in the third quarter? Why did you pull it forward? What are you spending it on? Does that mean after this year it's $4.5 billion of investment spending, or will you increase the total? Thank you.

Good morning, Mike. Thanks very much for the question. Maybe let me spend a second on how we think about expenses and how we think about efficiency. Again, returns, number one, sustainable return improvement. When we think about how we approach expenses, hopefully you can see a very sharp expense discipline. That's not an initiative. That's how we operate the business every day and for every dollar. We talked about Investor Day, that in order to unlock the client-driven growth that we are aspiring to, we needed to deploy incremental investments over three years of about $5 billion, which you just alluded to. We also said that we're going to fund these investments the hard way, via relentless structural efficiency focus, right? We talk about stranded costs, about transformation costs, and about the structural efficiency.

So that hopefully gives you a sense for how we think about expense management. The pull forward that we talked about, maybe to answer one piece of the question quickly, is 100% inside the $5 billion, right? The $500 million or so that I spoke recently about being part of that pull forward in the second half of the year, that's fully embedded inside the $5 billion. We have not moved anything related to our Investor Day expectations. To your other sub-question around how much of that landed into this quarter, you can think of it as about half of it landed in this quarter. You can see about $200 million of severance in the quarter. So that's a good portion of it. There's a few investments extra around technology, around marketing, around client experience that we also supported.

Again, that severance is directly linked to one of those three, the biggest of the three legs of our self-funding investments, which are the structural efficiency focus with the processes that Jane has alluded to in the past, the $100+ million end-to-end processes that we have looked at. We review those every week, and those are part of the unlocking through automation and AI the efficiencies that we're looking to deploy. Thank you.

Then one follow-up. Like you said, you're not always planning for the sun to always be shining and the wind at your back. But the return for the fourth quarter, if you back into it, looks really lousy for you to get to 11%. When you say the sun might not always be shining and the wind's not at your back, you did say Markets won't be as strong. I get it. But are you assuming something might go terribly wrong in the fourth quarter, or are you just giving the usual caution and caveats?

Let me go with the latter on that. Thank you, Mike. Yeah, so, we're guiding to above 11%, which is again, an improvement from the a bit over 11% that we talked about 30 days ago. Of course, there's a range. We could do better, but it's hard to predict early in the quarter, especially how some of the activity will play out in the market mostly. So it's really anchored on that. Yes—

Our next question will come from the line of Erika Najarian with UBS. Feel free to unmute and ask your question.

Hi. Sorry about that delay in unmuting. Thank you for taking my question. I wanted to double-click on John's question on capital. I guess this is a bit of a compound question for my first question, and I apologize. The way you responded to John's question is that you can continue to deploy capital into growth as well as keep up this pace of buybacks. I just wanted to make sure we heard that correctly because, AOCI aside, I think a lot of your investors, the buyback pacing is important. I guess, just wanted to confirm that you can continue this pace of buyback at around these levels, even with higher rates.

In terms of the glide path to a CET1 minimum of 12.1% by January 1st, 2028, is your understanding that Basel III endgame revisions and G-SIB revisions would be mostly prospective and you won't get any sort of retrospective or retroactive adjustments that could help you in terms of forward G-SIB surcharge increases?

Maybe if I jump in just in terms of the big picture here. You've heard us talking about a lot of upside potential. We've got a lot of different opportunities which are high returning to be investing in. As Gonzalo said, once we're comfortable around the resiliency of our capital base, which we feel very good about, we see a lot of opportunities to deploy capital into high-returning opportunities that will drive the growth and scale that underpins the presentation we gave at Investor Day and laid out that in a lot of detail.

We know buybacks are important. We know return of capital is important to our shareholders. We make that judgment as to what the right balance is. But I think all of our investors will want us to make sure that we are investing behind these long-term, high-return growth opportunities that will drive the performance and competitiveness of the bank. Gonzalo, over to you for the nitty-gritty.

Thank you, Jane, and thank you, Erika, and good morning. Thank you for the question. I think maybe a couple of thoughts on maybe to start on buybacks and then pull back up into the path on capital. Just as a reminder, what we said for this year, let me start in the here and now and then maybe without giving you the decimal precision going forward, I can describe the shape of how we think about it. In the here and now, we just completed with this quarter of about $3 billion of repurchases. year-to-date, $13.3 billion. Last year was $13 billion, and we had said earlier that we expected this year to do more than last year, which we just achieved in the third quarter. We are, in that sense, doing what we said we are going to do.

When you think about the framework going forward, I think you highlighted what I was talking about a little bit earlier, that we plotted at Investor Day, that glide path for capital for us. Let me talk in maybe regulatory minimum terms, going from 11.6% to 12.1%. That is on the back, of course, of having enabled the business, the balance sheet, to support the high levels of activity that we have seen over the last couple of years and have you seen us grow various businesses, not only the Markets business, but also Banking and Services and some of our franchises. That is directly linked to that. It was expected. That is why we discussed it at Investor Day.

To your point, it is a bit unknown exactly how all the rules when we are done, which we should see more of those over the next several months, and then we will have full visibility with models and market shock scenarios and so on. Really, we will know probably around next year the full impact that that may have on that glide path. As of now, we are operating on the basis of what we know, which are current rules. On the basis of those current rules, that glide path goes from 11.6% to 12.1%, which obviously means we will need to build that capital trajectory, again, absent some changes from the rules. Then what you see in the future is what you have seen year-to-date.

We managed that very balanced framework of holding capital for resilience and flexibility first, and then deploying it as you've seen us do this quarter and even in the prior quarters, supporting very strong activity or pursuing returns that are accretive and supporting our clients as well as distributing to shareholders. You can see how much of a priority it is on the basis of the progress we've made even in the last couple of quarters against our $30 billion program that we announced at Investor Day. Thank you.

Thank you. Just as a quick follow-up here on the Markets commentary. Just to put a framework around it, you mentioned that you continue to deploy balance sheet and high returning opportunities. One of your peers that is typically quite conservative had talked about deploying capital and not having that much seasonality in the fourth quarter because of all the activity levels. In terms of your comment of Markets down 20% quarter-over-quarter, that underpins sort of the implied high single digits ROTCE. Is that conservatism in terms of the typical seasonality, or is that more of a comment on mix in terms of you guys are still building out the equities business to a more optimized size? Just trying to unpack the Markets commentary for the fourth quarter.

Erika, I think you're reading too much into it. This is just the normal seasonality that we have seen over many, many years between a strong third quarter and the typical fourth quarter. It's no more than that. Don't read too much into it.

Our next question comes from the line of Glenn Schorr with Evercore ISI. You may now unmute and ask your question. Glenn, I see I have you in with two connections. Both are enabled. Feel free to dial star six if you prefer to use your phone.

Thank you. Sorry about that. So follow up on the equity side. Your prime balances are up over 40%, your revenues are up 14%. Still a pretty good gap versus the biggest peers. Maybe let's talk about where you're investing and what your aspirations are for the equities business because there is a pretty big upside if you continue to strengthen the franchise there. Thanks.

Yeah, look, as Andy said at Investor Day, we were late to invest in equities. What we are systematically doing is scaling our equities business primarily by committing the resources to grow the prime balances, making the necessary investments in technology. We see a lot of room to gain share ahead in prime. We're doing so with very diligent client selection and risk management.

But the client appetite for Citi is clearly there. Clients, I meet with them all over the world, they keep telling me they want an alternative in this market, and they want that to be Citi because they know and trust us, particularly from the fixed income side over history. That gives us an easier path for expansion and our growth in equities and continued momentum there. So you'll see us steadily investing in execution. I think we feel confident in our ability to continue growing there.

Okay. Maybe a similar but different follow-up on the Wealth side. You've had some very strong net new money flows. You had good 15% investment asset growth, but I think the Wealth fees were only up 5%. I don't know if that's a mix, get them in the door, mix them up, provide more advice. Just curious if you can provide a little color behind those trends. Thanks.

Sure. I will answer your question directly and as asked, then I will give you maybe the broader perspective on Wealth. But very quickly, that is only the result of a couple of strategic decisions that we took a year ago that we are lapping. So that is what is dampening that growth rate on the 5%. One that gets lapped, you are going to see a closer matching between some of the drivers and the revenue. That is kind of the simplest version, I think.

Thank you for the question. I think the broader piece there, we are pleased with what we are seeing in terms of momentum from our Wealth business, right? Revenue growing 15% with good expense discipline at 3%. We are accumulating several quarters of very positive operating leverage, and that is what is driving the improvement on returns, right? Returns for the business were about 7.6% a year ago, then 10.8% in the first quarter.

Now, this quarter and last quarter, they were a bit above 14%. So that gives us confidence that soon we will be able to get into the 15%-20% near term target window that we spoke about at Investor Day. But yes, the business has good momentum, good NNIA quarter, and overall, we are seeing good traction. Thank you.

For our next question, we will go to Manan Gosalia with Morgan Stanley. Please use star six to unmute. I see your line is open, Manan. We are not hearing you. You may need to unmute locally.

All right, perfect. Sorry about that. I just want to clarify the comment on the capital side. The 13.1% capital target for next year, that excludes finalization of the capital rules. Once we get finalization and maybe as you go through the stress test and you see the results of that, revisiting that 13.1% is still on the table?

Thank you, Manan. Good morning, and thank you for the question. To the first part of your question, yes, the 13.1%, which anchors to a minimum reg requirement of 12.1% into January of 2028, anchors to current rules. It does not include anything related to any of the rules that are in play that some of which have been released and others haven't. But obviously, to your point, we need to see what the first run of the new set of SCB happens, and then as well as the Basel III and the G-SIB components as well. That build up between the 11.6% minimum now to the 12.1% that I was just describing, incorporates exactly and only the current rules.

The second thing I'll mention as it relates to capital, which is also not baked in, and is the part that, number one, we control, number two, I feel better about. You can kind of see that even though it's still with old models in the release results from this year, right? You can see our SCB from the peak of 4.3% coming down over a few years into 3.6%, which is the current level, and then the latest run, which obviously doesn't count, at 3.3%. But directionally, it gives you, hopefully, the reaffirmation of the signal of what I was talking at the very beginning of the call, which is that the strategy is working. The strategy working means we have simplified the bank quite a bit, right? We have increased the level of accountability.

You can see the progress on returns and the proof points quarter after quarter. As you think about that, the PPNR increases, stabilizes, and the loss absorption capacity improves. All of that is a lot more within our control, and that's what we expect over time to also flow through. Again, not considered in. Thank you.

Okay, perfect. Just pivoting over to rates and rate sensitivity. With short-end rates moving higher in both the U.S. and internationally, how should we think about the rate sensitivity of the business? Given the strong Services business that you guys have and the strong deposit growth there, I'm sure that drives a lot of the rate sensitivity. If you can just talk about that and how we should think about it over the next year or so.

Yeah, thank you. Very good question. I think maybe a couple of thoughts. The first one, let me talk for a second about the here and now, and then the going forward. In the here and now, you just saw us upgrade our guidance again of going NII ex-Markets to mid to high sixes versus the original beginning of the year, 5%-6%. What we said a few weeks ago that we were going to be high end of that spectrum. That gives you a sense for, again, the confidence that we have. The second piece is, as a reminder, the vast majority of the business for us is driven by client volumes. It really is up to us having success in deepening relationships and also attracting new clients across the range of our franchise.

You saw NII ex-Markets at about 7% this quarter. You're seeing deposit growth of 11% and loans ex market growth of 7%. Good momentum really across the franchise there. When you think about a higher for longer environment, that should be for us net positive given aggregate asset sensitivity positioning that we have. Even if, of course, you have to, in the short term, absorb the OCIs, we just did. When you think about that asset sensitivity, maybe to give you a bit more color there, and hopefully not a lot more than what you bargained for, is overall that asset sensitivity you can see in our disclosures is non-USD from the structural position that we have across the world from our Services franchise.

We feel we're very well-positioned there to take advantage of the global rate hikes, many of which have already happened between February and now across the world. You will see also we're relatively neutral on a USD basis, at least within 12 months, because given the short duration of our portfolio, we actually do turn asset sensitive in year two and relatively quickly as those reinvestments come in. Net-net, all of that should put us in something that is constructive as it relates to higher for longer rates. Of course, some businesses, and you alluded to this, Services would be a large beneficiary in this particular picture. The reason for that, even if there are, as always, some puts and takes, you have to think about the volumes and how those will play out. There will be competition for deposits. Money supply may tighten.

So far what we have seen is the betas are performing in line with our expectations. The team in Services, this is true also in our team in Wealth, very focused on quality and not on giving away pricing. That discipline pricing and discipline quality focus, even if I look at Q3 as a proof point for me, is our deposit growth in Services was faster for operating deposits than it was for the overall deposits. That gives you a sense of how much focus Shahmir and the team have on the quality of what we are engaging with clients. Thank you.

For our next question, we'll go to Ebrahim Poonawala with Bank of America. You may now unmute your line and ask your question.

Okay. Hey, Jane. I guess the first question, just apologies if I missed something on the capital, on the back and forth. I think, Gonzalo, you mentioned if nothing changes on capital, the requirements obviously go up by 50 basis points. Is the point there that if the Fed finalizes rules before the end of the year, then you have better flexibility than if they don't? That's how we should think about it?

Hi. Good morning, Ebrahim. Not exactly. The way I think about it is the glide path anchors to current rules. That's on the back of our decisions also to support business growth, and that's what we're looking at. Of course, the piece on capital to your point around the rules, it's an unknown at this point, right? We have to see the totality of the rules come through, some of which have been published, others have not yet. Even post-publishing, I think we will need to see how the models are running through the first run, because remember, it's going to be a brand new set of components there, and not only new models, but also how market shocks are managed and handled and the scenario piece.

We have to see that come through, and probably by, I think towards the middle of the year, we're going to have perfect clarity of exactly what the glide path will look like, and obviously we'll keep you updated along the way. No, I wasn't implying that we'll have perfect clear vision by the end of the year, because I don't think that we will. I think we'll have some more information. But I do think that there's going to be some unknowns still, especially on the numerical front, which ultimately is what you and us want to have. Thank you.

Understood. All right. So, somewhere in there for us, the takeaway is there might be some volatility or tempering in the pace of buybacks. Understood. Then next, just the other question on Services. We're tracking about whatever, 29%, 30% ROTCE. Jane, you talked about the strength in the business. I'm just trying to understand what brings that business from close to 30% to the mid-20s target that you had. Is it just that the incremental growth will be so dilutive, assuming rates don't do anything? Why should that go from 30% to, let's say, 25%?

Look, the target we have is a through the cycle target. But I think we feel very good about our Services business because we see, think of it as a cumulative business, with really four pillars of further growth at high returns. Deepening with existing clients, acquiring new clients, commercial banking alike, capturing share in some of these high growth verticals, particularly the fintech space, as well as investing in next generation platforms and solutions. That is giving us a model that is pretty almost impossible to replicate. It is a true moat between the unrivaled global footprint, comprehensive market leading solutions, the extensive client base with ever-growing global needs, and then the indisputable scale, which is enabling us to invest significantly in the platforms in the innovation agenda. It's about $2 billion of investments a year.

Then you add on AI into this, which is driving further process improvements, which is developing innovative solutions for us, and also improving the client experience. So all these different elements are really translating into our ability to win new mandates, up about 40% year-over-year in our win rate, with minimal client attrition, sustainable revenue growth, high profitability through the cycle. So, to my mind, this is a wonderful business in which we are the undisputed leader in, and it will continue to go from strength to strength because we're on the front foot in it.

Next, we'll go to Ken Usdin with Autonomous. Ken, feel free to unmute and ask your question.

Hi. Good morning. Thanks. Just one follow-up on the Services side. Gonzalo, in a higher rate environment, the deposit growth has continued to be really strong, even sequentially. Do you anticipate any changes to how your clients use the balance sheet, given all the points that have already been made about just the ongoing strength and development of the platform? Within that, how much more room do you have in terms of the securities repricing, and can NII continue to outgrow deposit growth as it has been because you still have some more room there? How much more room do you still have there? Thank you.

Thank you very much, Ken, for the question. Let me start first maybe on the NII ex-Markets deposit equation. Our NII ex-Markets this quarter was about 7% year-on-year vis-a-vis deposits growing at 11% and loans growing at 7%. We are not seeing that effect of NII outgrowing the drivers at the aggregate level for the firm. That is also true in our Services business. If you look at the NII for the business, the NII for the business is more or less in sync actually, I guess, for Services in particular. That also depends on some of the interplay across the firm with Services.

What I would say to your question, which I think is a great question on the sustainability of growth, and we spoke about this at Investor Day and since then, one time or two, is we do expect over time for the level of growth that you are seeing, that 16% year-on-year deposit growth, to normalize a bit. We are not saying that we are going to be able to grow into eternity at four times money supply levels. At the same time, what you just heard from Jane, we are very confident in the moat that we have, how embedded we are with clients. We are deploying $2 billion per year of technology investments on both propelling the core capabilities and investing in the core, but also innovating.

If you look back the last 90 days, we would have made four or five different announcements that give you a sense that there's a lot of tech investment and capability there. And to Jane's point, the client momentum. We feel good about that NII trajectory, recognizing that, remember, this is through the cycle business. We spoke about this at Investor Day too. The business for the nine years between 2016 and 2025. Remember, those years had zero rates, they had medium rates, and they had high rates, and all the different flavors.

Citigroup (C) Q3 2026 Earnings Call Transcript

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