Citigroup Inc. (C)

Citigroup reported third-quarter 2026 net income of $5.2 billion, or $2.85 per diluted share, on 13 October 2026, up from $3.8 billion a year earlier 1. Revenue rose 8 percent to $23.8 billion, which chair and chief executive Jane Fraser called “the best third-quarter revenue in a decade” 1. The year-earlier quarter carried a $726 million goodwill impairment, a write-down tied to selling a stake in its Mexican bank, Banamex 1.

The gain came from the businesses that serve companies and wealthy clients 1. Services, which moves cash and holds securities for multinationals, grew revenue 15 percent to $6.6 billion, and Wealth grew 15 percent to $3.3 billion 1. Markets, the trading arm, grew 6 percent to $6.1 billion, while U.S. Consumer Cards was flat at $4.7 billion as higher payments to card partners and rewards costs offset higher interest income 1.

The open question is Banamex: Citi has sold 49 percent of it and is preparing to take it off its books next year, with a stock market listing after that, Fraser said 4. Finance chief Gonzalo Luchetti said Citi expects to book a currency translation loss of about $9 billion when it does, in early 2027 4. Citi's stated goal is a return on tangible common equity, profit over shareholders' equity less goodwill, of 11 to 13 percent in 2027 and 2028 4.

Citigroup was born on 8 October 1998, when Citicorp merged into a new subsidiary of Travelers Group, which then took the name Citigroup 6. Former shareholders of each side ended up owning about 50 percent of the new company 6. Travelers had already merged with the securities firm Salomon Inc on 28 November 1997 6.

The combined group reported 1998 revenue of $48.9 billion and net income of $5.8 billion, restated as if the two companies had always been one 6. A bank holding company could not then underwrite most insurance, so the merger came with a two-year window to comply with the law 6.

In the 2008 financial crisis Citigroup lost $27.7 billion, hit by losses in fixed income markets, higher consumer credit costs and a goodwill write-down of $9.568 billion 7. The government stepped in: the Treasury bought $45 billion of preferred stock and warrants, and government entities agreed to share losses on $301 billion of its assets 7.

On 16 January 2009 it split itself in two: Citicorp, the global institutional bank and regional consumer banks, and Citi Holdings, brokerage, local consumer finance and a special asset pool 7. It also agreed to put its Smith Barney brokerage into a joint venture with Morgan Stanley, for a 49 percent stake and $2.7 billion in cash 7.

On 7 October 2020 the Federal Reserve and the Office of the Comptroller of the Currency (OCC) issued consent orders requiring Citigroup and Citibank to fix risk management, compliance, data quality and internal controls 2. Jane Fraser became chief executive in 2021 11. That year net income rose to $22.0 billion, mainly because the cost of credit fell, while revenue fell 5 percent to $71.9 billion 8.

Her strategic refresh kept consumer banking in Asia and Europe, the Middle East and Africa only in four wealth centers: Singapore, Hong Kong, the United Arab Emirates and London 8. Citi set out to exit consumer banking in the 13 other markets there, and in January 2022 said it would also exit consumer and middle-market banking at Citibanamex in Mexico 8.

In 2023 net income fell 38 percent to $9.2 billion, weighed down by a $1.7 billion special assessment from the FDIC, the deposit insurer, and $780 million of restructuring charges 9. The charges paid for a simplification: Fortune reported that Fraser reorganized Citi into five core businesses, cut layers of management and slated 20,000 job cuts to wrap up before 2027 914.

Revenue then climbed from $78.1 billion in 2023 to $85.2 billion in 2025, and 2025 net income reached $14.3 billion 2. Net interest income, what loans and securities earn above the cost of funding, rose 11 percent that year 2.

The year 2025 carried two one-time hits: a $1.2 billion loss on the planned sale of its Russian bank, and the Banamex write-down 2. On 15 December 2025 Citi sold 25 percent of Banamex to a company owned by Fernando Chico Pardo and his family 2.

In 2026 the exits neared their end 3. Citi sold its Russian bank, AO Citibank, to Renaissance Capital on 18 February, sold its Poland consumer bank, and on 29 April sold 22.6 percent of Banamex to institutional investors and family offices 23. Second-quarter net income was $5.8 billion, up 45 percent, on revenue up 14 percent to $24.8 billion 3.

Services: moving money for multinationals

Services is two businesses: Treasury and Trade Solutions, which handles cash management, payments and trade finance for multinationals, banks and governments, and Securities Services, which holds and administers investors' securities 2. It offers products in over 90 countries, and its 2025 revenue was $21.3 billion, up 8 percent 2.

In the third quarter of 2026 Treasury and Trade Solutions revenue rose 16 percent to $4.9 billion on larger deposits and fees, and Securities Services rose 13 percent to $1.7 billion 1. Cross-border transaction value rose 10 percent and assets under custody and administration 16 percent 1.

Citi Token Services moves clients' money between Citi accounts on a blockchain at any hour, and Fraser said it now runs in seven markets and connects to 300 peer banks 4. She said clients use these tokenized deposits more than stablecoins, which she called more complex for compliance, accounting and tax 4.

Markets: trading and financing

Markets is the trading arm: Fixed Income covers rates, currencies and spread products, and Equities covers derivatives, cash shares and prime services, the brokerage and financing of large investors 21. Its 2025 revenue was $22.0 billion, up 11 percent 2.

In the third quarter of 2026 fixed income revenue rose 4 percent to $4.4 billion and equities 14 percent to $1.7 billion, as prime balances grew by over 40 percent 1. Reuters reported that trading revenue was still 13 percent lower than in the second quarter 5.

Banking: deals and corporate loans

Banking holds investment banking, which raises debt and equity for clients and advises on mergers, and Corporate Lending, the loans that serve as the conduit for the rest of Citi's products 2. Its 2025 revenue was $8.2 billion, up 32 percent 2.

In the third quarter investment banking revenue rose 9 percent to $1.4 billion, led by a 77 percent jump in equity capital markets, while advisory fell 4 percent 1. Fraser said Citi played roles in the six largest equity deals of the quarter, including the SK hynix listing, and led SoftBank's $11 billion high-yield bond 4. Dealogic ranked Citi fifth among global banks by investment banking fees in the first nine months of the year, Reuters reported 5.

Wealth: private bank, Citigold and the retail bank

Wealth serves the very rich through the Private Bank, affluent clients through Citigold, and professional firms such as law and consulting firms through Wealth at Work, in about 20 countries 2. In 2025 its revenue was $8.6 billion: $5.0 billion from Citigold, $2.7 billion from the Private Bank and $930 million from Wealth at Work 2.

Since the start of 2026 Wealth also holds the U.S. retail bank, whose branches sit in six key metropolitan areas: New York, Los Angeles, San Francisco, Chicago, Miami and Washington 2. In the third quarter Wealth revenue rose 15 percent, and clients brought in $38 billion of net new investment assets, Luchetti said 14.

U.S. Consumer Cards

U.S. Consumer Cards issues Citi's own Value, Rewards and Cash cards, co-branded cards such as Costco's and American Airlines', and store cards for The Home Depot, Best Buy and Macy's 3. In the second quarter of 2026 it completed the purchase of an additional American Airlines co-branded card portfolio 3.

As U.S. Personal Banking, which then also held the retail bank, the business had 2025 revenue of $21.0 billion 2. In the third quarter of 2026 card revenue was flat at $4.7 billion, while spending on general purpose cards rose 13 percent and their average loans 9 percent 14. Balances written off as unpaid, net credit losses, came to $1.7 billion in the quarter 1.

Legacy Franchises and Banamex

Legacy Franchises holds the businesses Citi is leaving, chiefly Banamex's consumer and small and middle-market business banking in Mexico, plus the consumer bank in Korea 3. At the end of June 2026 it counted 1,288 retail branches and $47 billion of deposits 3. Reuters reported that Citi now owns 51 percent of Banamex 5.

Offices and people

Citigroup is a Delaware company with its head office at 388 Greenwich Street in New York, and it does business in more than 180 countries and jurisdictions 21. At the end of 2025 it had about 226,000 full-time employees in over 90 countries, down from 229,000 a year earlier, about 31 percent of them based in the U.S. 2.

Jane Fraser is chair and chief executive 2. Gonzalo Luchetti replaced Mark Mason as chief financial officer on 2 March 2026, and Mason became executive vice chair 11. On 21 October 2026 the board elected James Flanagan, a former chief operating officer of PwC, as an independent director on its audit committee 12.

Fraser said 14,000 Citi engineers use the agentic coding tool Devin, and about 100 of its most manual processes are being rebuilt with AI and automation 4. Citi requires AI training for 175,000 employees, Fortune reported 14.

Rivals

Reuters describes Citi as the third-largest U.S. lender and reported its quarter beside those of JPMorgan Chase and Wells Fargo 5. In its annual report Citi names banks, private credit, financial technology and digital asset companies among its competitors 2.

Problems: regulators and courts

The 2020 consent orders still bind Citi, though the OCC ended its July 2024 amendment to Citibank's order on 18 December 2025 2. In 2024 the Federal Reserve fined Citigroup about $61 million over data quality, and the OCC fined Citibank $75 million for too little progress 2.

Transformation spending, mostly on data and controls, rose 14 percent to about $3.3 billion in 2025 2. The New York Attorney General sued Citibank on 30 January 2024 over its handling of unauthorized wire transfers, and the case waits on an appeal 2. Citi puts its reasonably possible unaccrued losses from legal matters at up to about $1.2 billion 3.

The umbrella, in words

Exhibit 21 of the 2025 annual report lists Citi's significant subsidiaries, not all of them 10. They include the bank Citibank in the United States, Citigroup Global Markets Inc. in New York and Citigroup Global Markets Limited in England, and Citibank Europe plc in Ireland 10.

Citi owns Banamex through Grupo Financiero Banamex, which holds the bank Banco Nacional de Mexico and the insurer Seguros Banamex 10. It also has approval to set up Citigroup Securities (China) Company Limited, wholly owned and based in Shanghai, granted by China's securities regulator on 23 October 2026 13.

The annual report marks Item 2, properties, as not applicable 2. The largest holders on file report passive stakes: Vanguard Capital Management with 7.22 percent of the common stock and BlackRock with 6.9 percent, on Schedule 13G filings 1516. Each common share carries one vote for each director nominee 11.

For 2026 Luchetti guided to a return on tangible common equity above 11 percent, growth in net interest income outside Markets in the mid-to-high 6 percent range, and an efficiency ratio below 60 percent 4. The efficiency ratio is costs over revenue 1. He said Markets revenue typically drops in the fourth quarter, by 20 percent last year, and possibly a bit more this year 4.

He said Citi now expects a full-year U.S. credit card net credit loss rate of around 4 percent, the low end of its earlier range 4. Beyond 2026, Citi's stated goals are a return of 11 to 13 percent in 2027 and 2028, and 14 to 15 percent sustained over time 4.

Citi's capital ratio, common equity over risk-weighted assets, must stay above a regulatory minimum 14. Luchetti said that minimum is 11.6 percent now and Citi assumes 12.1 percent from January 2028, against a directional target of 13.1 percent 4. Citi runs a $30 billion share repurchase program for 2026, and in July raised its quarterly dividend to $0.67 from $0.60 3.

At its Investor Day in May 2026, Citi said it needed about $5 billion of extra investment over three years, funded by efficiencies, Luchetti recalled 4. Fraser said Citi's digital asset custody platform goes live later this year 4.

The Second Circuit agreed on 3 September 2025 to hear Citibank's appeal in the New York Attorney General's wire transfer case, so a ruling is pending 2. Fraser said Citi expects to beat its 2026 return target even while pulling investments forward 1.

Citi says it may book the Banamex currency translation losses and deconsolidate the bank in early 2027, though the timing may change 3. The China securities company must still complete its statutory and regulatory steps before it opens 13. A court has set a final fairness hearing for 16 November 2026 on the settlement in the card interchange fee case 3.

Past

Citigroup's revenue rose from $71 billion in fiscal 2016 to $85 billion in fiscal 2025, up 2.1% a year, rising in 8 of 9 years with a deepest fall of 5% from fiscal 2020 to fiscal 2021; net income was positive in 9 of 10 of those years. Over the three fiscal years to 2025, the diluted share count shrank about 1.6% a year, and dividends and buybacks returned about 92% of net income over those three years. Officers and directors filed 11 sales and 0 purchases of their own stock on the open market in the year to 2026-10-02. Citigroup's filings since 2017 show no warning events: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice. 1

Present

In its latest annual figures on file, for the fiscal year ended 2025-12-31, Citigroup reported revenue of $85 billion and a profit of $14 billion. Citigroup earned about 7 cents of profit for every dollar of shareholders' money, owed about 92 cents per dollar of assets, and its share count shrank 3.5% over the year. Citigroup's revenue of $85 billion in fiscal 2025 ranks in the top 5% by size among its industry family; a net margin of 16.8% ranks in the bottom 18%; revenue growth of 4.2% a year over the last 3 filed years ranks in the bottom 8%. The chief executive on the record is Fraser, Jane Nind, filing under that title since 2021-11-23, 4.9 years; the 30 officers and directors filing in the last fifteen months have been on the record a median of 6.1 years; 9 officer or director changes were reported on Form 8-K since 2023-10-21, against the 30 people in charge now. 21

Future

A quarterly report (Form 10-Q) for the quarter ending 2026-09-30 is due by 2026-11-09. An annual report (Form 10-K) for the fiscal year ending 2026-12-31 is due by 2027-03-01. Cash of $350 billion against debt of $316 billion leaves 1.3% of assets as net cash, bottom 35% of its family; cash from operations less capital spending is -87% of revenue (bottom 1%). Revenue grew 4.2% a year over the last three filed years against 2.1% over all 10, speeding up; the newest year grew 5.6%; capital spending grew 5% a year. Revenue of $85 billion in fiscal 2025 came in 2% above the $84 billion its prior three years' pace pointed to; net income of $14 billion against a prior three-year average of $12 billion; a net margin of 16.8% against 15.7% before. 31

How the company operates

Citigroup operates as a lending business. By geography, North America accounts for 51% of revenue and International 49%. Citigroup reported 5 lines of business in fiscal 2025: Markets at $22 billion, Services at $21 billion, US Personal Banking at $21 billion, and 2 more; 5 of 5 grew in the latest filed year, and the largest line is 27% of revenue. 21

New moves

On 2026-10-20, Citigroup filed a Form FWP, an offering communication. On 2026-10-20, Citigroup filed Form 424B2 documents for offering prospectuses for notes or structured products, graded on financial health where notes are sold. On 2026-10-14, Citigroup earned $5.2 billion in the third quarter on higher revenue, joining the banks earning more than a year ago, led by its Services and Wealth arms, while it set aside more for bad loans. On 2026-10-16, the U. S. raised Mastercard and Citigroup China market access in bilateral Bangkok talks, according to an official. 345