Citi's Second Quarter Sizzle: Record Revenue, Double-Digit Growth, and a Stronger Future
Citigroup has just reported its second quarter earnings for 2026, and it's been a resounding success. The company has delivered record revenue, with a net income of $5.8 billion, an EPS of $3.15, and an ROTCE of 13%. This is Citi's best quarterly revenue in a decade, achieved through over 9% positive operating leverage.
The momentum continued from the first half of the year, with double-digit revenue growth for the firm and in four out of five businesses. Every single business saw significant improvement in returns, thanks to the company's investments, disciplined execution, and focus on clients. The Services division delivered its highest ever quarterly revenue, with a return of over 30%, as clients continue to leverage Citi's global network.
The Markets division was also a standout performer, with revenues up 17% and crossing $7 billion again. This growth was driven by positive sentiment throughout the quarter, despite lower interest rates. Equities saw an impressive 40% increase, with prime balances up nearly 60%, while FX and spread products shone in another example of Citi's global network delivering for clients.
The Banking division recorded a 34% revenue growth, led by a sharp increase in financing activity amidst an overall strong wallet. Investment banking was up 44%, as the company gained share in equity capital markets, with lead roles on high-profile IPOs such as SpaceX and Cerebras. The pipeline looks healthy for the second half of the year, and Citi is investing in talent to fill gaps in coverage and gain share, including in M&A.
Wealth revenues increased for the ninth straight quarter, up 13%, with growth across all three businesses. Returns improved to over 14%, as client investment assets were up 14% and net new investment assets reached $30 billion so far this year. Almost two-thirds of that NNIA growth came from deepening relationships with existing clients, while referrals from the retail bank to Citigold were up 23%. This is a tangible benefit of integrating Citi's retail branches into Wealth.
The U.S. Consumer Cards division saw investments in products and partners driving future growth in the general purpose portfolio. The resilient customer base continued to fuel underlying drivers, loan growth, higher spend, and better credit performance than expected, resulting in an ROTCE increase to 22%. Citi also completed the sale of its consumer business in Poland and closed on the sale of an additional 22.6% equity stake of Banamex.
The company's stress test results were also impressive, with a stronger showing thanks to simplifying Citi through international consumer divestitures, higher PPNR, and lower stress losses. This contributed directly to the company's plan to increase its dividend by 12%. A $30 billion common stock repurchase commitment was launched, with $4 billion bought back during the quarter. The CET1 ratio stood at 12.8%, remaining about 120 basis points above Citi's current regulatory minimum.
