Citigroup beat Q2 estimates on $21.4B revenue and $1.52 EPS, but consumer banking revenue fell 3% and card charge-offs rose to 3.2%. Services revenue jumped 8%.
Citigroup posted a Q2 2026 earnings beat that masked a split story across its business lines. Revenue came in at $21.4 billion, above the $20.9 billion consensus compiled by Bloomberg. Earnings per share hit $1.52, topping the $1.44 estimate.
The Services division, which handles treasury and trade solutions for corporate clients, was the quarter's standout. Revenue there rose 8% year-over-year to $4.9 billion, driven by higher interest rates on deposits and a 6% increase in client transaction volumes. Jane Fraser, the CEO, said on the call that the unit's "momentum is broad-based across regions."
The trouble was in Consumer Banking. Revenue in that segment fell 3% to $6.8 billion, missing internal forecasts by roughly $200 million. U.S. card spending growth slowed to 2% from 5% in the prior quarter. Net charge-offs on credit cards ticked up to 3.2% from 2.9% a year earlier. Fraser attributed the softness to "a more cautious consumer" and said the bank is tightening underwriting on new card accounts.
Markets revenue, which includes fixed income and equities trading, came in at $5.1 billion, down 1% from a strong Q2 2025. That still topped the $4.9 billion analysts had modeled. Fixed income trading slipped 3%, while equities trading rose 2%.
The bank's efficiency ratio, a measure of costs as a share of revenue, improved to 62% from 64% a year ago. The improvement came from the $1.5 billion in annual savings from the restructuring Fraser announced last year. Citigroup also returned $3.2 billion to shareholders through dividends and buybacks in the quarter.
On the balance sheet, the CET1 ratio stood at 12.3%, above the regulatory minimum of 11.5%. That is below the 12.6% level at JPMorgan. The bank said it expects the ratio to rise to 12.5% by year-end as it continues to wind down non-core assets in Mexico and Asia.
Citigroup's stock rose 1.8% in pre-market trading after the release. The company's C stock page shows an Alpha Score of 57 out of 100, reflecting the mixed signals from the consumer weakness against the Services strength.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.