Citigroup's Q2 Revenues Reach Decade High: What's Fuelling Growth?

Banking was another major contributor. Its revenues advanced 34% year over year, mainly because investment-banking revenues increased 44%. Debt and equity underwriting activity strengthened considerably, although advisory revenues declined. Wealth revenues grew 13%, supported by higher deposit spreads, rising investment-fee revenues and continued inflows into client investment assets.

Five Interconnected Businesses Drive Strong Performance

Image Source: Citigroup, Inc.

C also benefited from strong net interest income. Company-wide net interest income rose 13% to $17.1 billion, driven by growth in loans and deposits across several businesses. Non-interest revenues increased 18%, reflecting stronger results in Banking, Services and Wealth. Overall, earnings before tax jumped 54%, demonstrating that revenue growth was translating effectively into profitability. 

At the same time, Citigroup has continued to make meaningful progress on its transformation strategy. The company has been simplifying its structure, exiting non-core markets and driving greater efficiency across the organization.  Cost discipline further supported the improvement. Although expenses rose 5% to $14.2 billion, they grew much more slowly than revenues. As a result, Citi’s efficiency ratio improved to 57.4%, approximately 530 basis points better than a year earlier.

To further strengthen its competitive position, the bank is also increasing its use of artificial intelligence (AI) and automation to streamline workflows and reduce costs. In addition, it is expanding in private markets and wealth management through targeted partnerships, helping diversify revenue streams and deepen client engagement.

The blockbuster second-quarter results suggest that Citigroup’s turnaround is becoming more visible in its financial performance. With continued momentum in core businesses, rising NII and fee income, and ongoing restructuring efforts, the company appears well-positioned to sustain revenue growth. Citigroup expects revenues to see a 4-5% compound annual growth rate through 2026.

How Are Other Banks Performing in Terms of Revenues?

Wells Fargo WFC: In the second quarter of 2026, Wells Fargo’s revenues rose 8.6% year over year, driven by a 5.2% rise in NII and 13.1% growth in non-interest income. 

Going forward, NII growth, driven by a favorable loan and deposit mix and continued fixed-asset repricing, along with Wells Fargo’s investments in expanding its fee-based businesses, is expected to support top-line growth.

PNC Financial PNC: In the first quarter of 2026, PNC Financial reported total revenues of $6.9 billion, up 21.4% year over year. The increase was driven by growth in non-interest income and NII.

PNC Financial expects total revenues to increase 13% year over year in 2026 (revised from the earlier mentioned 11% growth).

C’s Price Performance, Valuation & Estimates

Shares of Citigroup have soared 51.5% in the past year compared with the industry’s growth of 30.2%.

Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 11.19X, below the industry’s average of 14.12X.

Price-to-Earnings F12M

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The Zacks Consensus Estimate for C’s 2026 and 2027 earnings implies year-over-year rallies of 40.5% and 15.6%, respectively. Estimates for both years have been revised upward over the past 30 days.

Estimate Revision Trend

Image Source: Zacks Investment Research

Citigroup currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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