Citigroup Q3 earnings, revenue beat as services, wealth post solid growth

Citigroup (C) Q3 earnings exceeded the Wall Street consensus on Tuesday as its services and wealth units posted solid gains after markets and investment banking revenue weakened from the previous quarter.

The lender now expects full-year 2026 net interest income, ex-markets, to rise in the mid-to-high 6% range from 2025’s $49.8B, compared with its prior guidance of ~5%-6%. U.S. cards net credit loss is expected to be ~4%, at the low end of its previous guidance of 4.0%-4.5%. It's targeting return on tangible common equity of over 11% in 2026, vs. its prior target of 10%-11%.

Its efficiency ratio guidance remains at ~60% vs. the consensus estimate of 60.7%.

Q3 GAAP EPS of $2.85, topping the average analyst estimate of $2.65, fell from $3.15 in Q2 and rose from $1.86 in Q3 2025. As previously disclosed, Q3 2026 results included a goodwill impairment of $726M, or $714M after-tax, related to Citi's (C) agreement to sell a 25% stake in Grupo Financiero Banamex.

Q3 revenue of $23.8B, beating the $23.7B consensus, decreased from $24.8B in the prior quarter and increased from $22.1B a year ago.

"Our performance in the quarter, which included the best third-quarter revenue in a decade, positive operating leverage, and meaningful improvement in our returns, reflects the continued disciplined and consistent execution of our strategy," said Chair and CEO Jane Fraser.

Still, Citi's (C) stock slipped 0.7% in premarket trading.

Net interest income of $17.0B, exceeding the S&P CapIQ consensus of $16.6B, slipped 1% Q/Q and grew 14% Y/Y.

Q3 provision for credit losses increased to $2.57B from $2.52B in the previous quarter and $2.45B a year ago. That compares with the S&P CapIQ consensus of $2.63B.

Total operating expenses of $14.0B declined from $14.2B in the previous quarter and $14.3B in the year-ago period.

End-of-period loans rose to $820B from $794B in Q2. EOP deposits gained/slipped to $1.51T at the end of Q3 from $1.49T at the end of Q2.

Revenue by segment:

• Services: $6.61B increased 4% Q/Q and 15% Y/Y, with Treasury and Trade Solutions revenue of $4.90B rising 3% Q/Q and 16% Y/Y

• Markets: $6.11B dropped 13% Q/Q and increased 6% Y/Y, with Fixed Income Markets revenue of $4.39B sliding 7% Q/Q and rising 4% Y/Y.

• Total Banking, which includes Investment Banking and Corporate Lending: $1.73B, down 11% Q/Q and up 6% Y/Y. Investment Banking revenue of $1.35B declined 13% Q/Q and rose 9% Y/Y.

• U.S. Consumer Cards: $4.66B, up 3% Q/Q and flat Y/Y, driven by an increase in net interest income, offset by a decline in non-interest revenue.

• Wealth: $3.27B, up 3% Q/Q and 15% Y/Y. End-of-period client balances were $1.39T, up 3% from Q2 and 9% from Q3 2025.