Citi beats estimates on investment banking and trading strength

• Investment banking revenue jumped 44% to $1.55 billion, with Citi advising on over $300 billion in deals including SpaceX's record $75 billion IPO and the $44.8 billion Unilever-McCormick merger
• Trading desks capitalized on market volatility: equities trading revenue rose 45% and fixed-income trading increased 7%, driven by oil price swings and AI-trade momentum
• Net income surged 45% to $5.8 billion ($3.15 per share) with return on tangible common equity hitting 13%, reaching the high end of the bank's 2027-2028 targets under CEO Jane Fraser's overhaul strategy

Citigroup Q2 2024 Earnings Summary

Key Financial Performance

Citigroup reported its strongest quarterly revenue in a decade at $24.8 billion, up 14% year-over-year, surpassing Wall Street expectations. Net income surged 45% to $5.8 billion ($3.15 per share). Return on tangible common equity (ROTCE) reached 13%, at the high end of the bank's 11-13% target range for 2027-2028.

Business Segment Highlights

Investment Banking & Trading: Investment banking revenue jumped 44% to $1.55 billion, with total banking revenues up 34% to $1.92 billion. Equities trading revenue soared 45%, while fixed-income trading rose 7%. Rates and currency trading increased 1%, with commodities and other fixed income up 25%. Citi ranks #5 in global investment banking revenues for H1 2026.

Notable Deals: Citi served as underwriter for SpaceX's record $75 billion IPO and advised on major M&A transactions including the $44.8 billion Unilever-McCormick combination. The bank advised on deals worth over $300 billion globally, as M&A volumes surpassed $3 trillion year-to-date.

Other Segments: Wealth management revenue grew 13% to $3.18 billion with 14.4% ROTCE. Cards division revenue increased 1% with net income up 12% to $852 million. Net interest income rose 13%.

Market Context

Performance was driven by volatile markets stemming from U.S.-Iran tensions affecting oil prices and global assets, plus lighter regulation under the Trump administration boosting M&A confidence and AI-related dealmaking activity. The results reflect CEO Jane Fraser's ongoing strategic overhaul focused on improving profitability through divestitures and operational streamlining.