Citigroup Inc. 2Q Led By Services, IB Trading; Strong Mkts-Related Revenue Outlook In 2H But Higher Expenses

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Citigroup Inc. 2Q Led By Services, IB Trading; Strong Mkts-Related Revenue Outlook In 2H But Higher Expenses

J P M O R G A N North America Equity Research

15 July 2026

Citigroup Inc. Overweight

C, C US

2Q Led By Services, IB Trading; Strong Mkts-Related Price (14 Jul 26):$133.27

Revenue Outlook In 2H But Higher Expenses Price Target (Dec-26):$149.00

Citi posted 2Q EPS of $3.15. 2Q was marked by strong markets-related revenues Banks — Large-Cap

ACin several areas, notably strong growth in Investment Banking and Trading Vivek Juneja

revenues plus Securities Services. US Cards results were solid but reported (1-212) 622-6465

earnings muddied by the acquisition of a credit card portfolio. Wealth segment vivek.juneja@jpmorgan.com

remains a work in progress - operating efficiency ratio improved but non-interest Andrew J Dietrich

income needs to grow a lot further. Citi’s RoTCE was 13% in 2Q26 but (1-212) 622-4244

management expects full year 2026 RoTCE to be in 10-11% range - this implies aj.dietrich@jpmorgan.com

a sharp decline in RoTCE in 2H26 likely due to increased investments and Sai M Nettem

additional severance. Management believes it has largely completed all that it (1-212) 622-2666

sai.nettem@jpmorgan.com

needs to do as regards regulatory consent orders and is now awaiting approval/ J.P. Morgan Securities LLC

sign-off by the regulators. Citi is likely to sell additional stake in Banamex and then

de-consolidate the entity, followed by an IPO in 2027.

Key Changes (FYE Dec)

• 2Q results were marked by: 1) strong markets revenue growth yoy but lagged Prev Cur Δ

peers; 2) very strong investment banking fee growth; 3) modest growth qoq in Reported EPS - 26E ($) 11.01 11.50 4.5%

net interest income ex-markets; 4) good revenue growth in Services in TTS