Wall Street biggie Citigroup has beaten analysts’ estimates for its Q1 2026 profit, apart from registering its highest revenue flow in a decade, despite geopolitical tensions rocking the market. Strong dealmaking also buoyed investment banking fees for Citi.
The company’s trading desks benefited from heightened volatility across asset classes, amid the escalating volatility in the Middle East, while concerns over AI-driven disruption triggered a software stocks selloff. Overall profit of the third largest American lender increased to USD 3.06 per share in the three months ended March 31, compared to the analysts’ average estimate of USD 2.65 per share, as per the data compiled by LSEG.
After posting a record 13.1% profit return over tangible common equity, the bank now aims for a 10% to 11% return for the full 2026/27 financial year.
“The first quarter is always the strongest, and we have an unclear macro environment ahead,” CEO Jane Fraser said on a call with analysts. Citi’s rival, Goldman Sachs, also beat profit expectations, driven by strength in dealmaking and equities trading. The largest American lender, JPMorgan Chase, along with Wells Fargo, has followed a similar trend.
Citi’s quarterly revenue of USD 24.6 billion was the highest quarterly revenue in a decade, boosted by market volatility, which increased the venture’s total markets revenue by 19% over a year earlier to USD 7.2 billion.
“Fees from equity markets rose 39%, helped by growth across derivatives, prime services and cash equities. Prime balances in the markets division jumped more than 50%. Revenue in fixed income trading was up 13% over a year earlier, rates and currencies revenue rose 6%, and other fixed income revenue rose 27%, driven by strong performance in commodities,” the firm said.
Hot dealmaking activity by the investment division emerged as another growth engine for Citigroup, helping it increase its banking division revenue by 15% in Q1. Fees in equity underwriting rose 64%, and in M&A advisory, the figure stood at 19%. Fees in fixed income underwriting fell 6%.