Citi posted $5.8B Q2 net income, 13% RoTCE, and a $30B buyback plan. The 2026 RoTCE target of 10%-11% reflects Basel III capital rules. Shares rose 2.8% after hours.
Citigroup reported second-quarter net income of $5.8 billion, with a return on tangible common equity of 13%, the bank said Tuesday. That compares with 11.5% RoTCE in the same period last year.
Revenue reached $20.1 billion, up from $19.5 billion a year earlier. Expenses fell to $12.3 billion from $12.8 billion, reflecting the bank's ongoing cost-cutting program.
Management outlined a capital return plan that includes a $30 billion share buyback authorization and a 12% increase in the quarterly dividend. Both are subject to Federal Reserve approval. The bank also set a 2026 RoTCE target of 10% to 11%, a range that accounts for higher capital requirements under the Basel III endgame rules.
Credit costs rose to $2.3 billion from $2.1 billion a year ago, driven largely by reserve builds in the card portfolio. Net charge-offs came in at 2.6%, up from 2.3% in the first quarter.
CEO Jane Fraser said the quarter showed "momentum across our five core businesses" and that the bank was "on track to hit our full-year expense target." The bank reiterated its 2026 expense guidance of $50 billion to $51 billion.
Shares rose 2.8% in after-hours trading following the release.
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