Citigroup (NYSE:C) reported first-quarter results on Tuesday that exceeded Wall Street profit expectations, supported by continued strength in dealmaking activity despite ongoing geopolitical uncertainty.
Executives across the financial sector remain optimistic about merger and acquisition activity this year, with expectations that a more relaxed regulatory environment under Donald Trump and momentum from the AI boom will help drive transactions, even as tensions in the Middle East persist.
Global investment banking revenue rose 14% year-on-year to $28.2 billion in the first quarter, marking the strongest Q1 performance since 2021, according to Dealogic data, with North America leading the gains.
“We’re off to an exceptionally strong start in 2026, with revenue up 14% and net income growing 42%. Services had an outstanding quarter with revenue up 17%, and Markets crossed $7 billion in revenue,” Citi Chair and CEO Jane Fraser said.
Citigroup’s investment banking fees increased 19% to $1.3 billion, driven by growth in advisory services and equity capital markets activity, partly offset by a decline in debt capital markets. Advisory fees also rose 19%, reflecting strong sell-side activity and solid performance with sponsor clients, the bank said.
Net income for the first quarter of 2026 came in at $5.8 billion, or $3.06 per diluted share, compared with $4.1 billion, or $1.96 per share, in the same period last year. The result was well above analyst expectations of $2.63 per share.
The increase in profit was supported by higher earnings and a reduced share count following stock buybacks.
“We remain very much on track to deliver the 10-11% RoTCE target this year. I’m excited for next month’s Investor Day where we’ll discuss our path forward and how we will realize the significant upside Citi offers,” Fraser added.