Citigroup CEO Jane Fraser has spent years overhauling and simplifying one of Wall Street’s most complex global banks. On its Oct. 13 earnings call, Citi reported $23.8 billion in third-quarter revenue, $5.2 billion in net income, and an 11.5 percent return on tangible common equity (RoTCE). Fraser told analysts on the call that the institution delivered its best third-quarter revenue in a decade as investors assess her multiyear transformation across the bank’s five core businesses.
Fraser became the first woman to lead a major U.S. bank in 2021 following a difficult period that included a $400 million fine from the Office of the Comptroller of the Currency for deficiencies in risk management and internal controls. In 2020, Citi reported a 43 percent decline in net income driven by massive credit loss provisions set aside for the COVID-19 pandemic, followed by a 5 percent revenue decline in 2021. On her first Investor Day in March 2022, Fraser introduced ambitious performance targets for Services, Markets, Banking, Wealth, and U.S. Personal Banking, alongside heavy divestitures. In September 2023, she announced the biggest reorganization of the bank in 20 years to reduce management levels from 13 to eight during a severe dealmaking drought. By January 2024, the bank announced plans to cut 20,000 jobs over several years.
Services emerged as a standout performer in the latest quarter, with revenue rising 15 percent year over year and an RoTCE reaching 31.2 percent, exceeding its mid-20s economic cycle target. Citi’s capital strategy included buying back $13.3 billion of shares through September, including $3 billion in the quarter, alongside a new $30 billion multiyear program. Markets also delivered encouraging figures with 6 percent revenue growth and a 12.3 percent RoTCE, though management cautioned that fourth-quarter revenue could face typical seasonality and a potential sequential decline larger than last year’s roughly 20 percent drop. Chief Financial Officer Gonzalo Luchetti noted the drop could be possibly a bit more given the strong performance so far this year. On Oct. 23, Chinese regulators approved Citi’s plan to establish a wholly owned onshore securities company, providing a new avenue for future growth.
Banking revenue grew 6 percent year over year with an RoTCE of 19.2 percent, up from 11.6 percent a year earlier. Wealth revenue climbed 15 percent, but its 14.3 percent RoTCE remained below the 15 to 20 percent target for 2027 through 2028, though it improved from 7.8 percent in the third quarter of 2025. The Wealth division’s growth follows scrutiny over a January sexual harassment lawsuit filed by former executive Julia Carreon against the bank involving wealth chief Andy Sieg. Carreon alleged Sieg subjected her to unrelenting sexual harassment and manipulation, while Citi denies the allegations.
U.S. Consumer Cards lagged as the weakest performer on revenue growth, remaining flat year over year at $4.7 billion. The card business achieved an RoTCE of 21.8 percent even as net income fell 8 percent, aided by a lower allocation of equity following structural changes that moved U.S. retail banking into Wealth and established consumer cards as a standalone franchise.
Technology and artificial intelligence remain central to the bank’s strategy. During the 2026 Investor Day, Fraser outlined investments in artificial intelligence for Wealth and Cards, focusing on customer acquisition, underwriting, servicing, and engagement. Fraser reported a 30 to 40 percent increase in the speed of product launches and noted that around 100 manual processes have been reengineered end-to-end using automation. The bank plans to invest about $5 billion between 2026 and 2028 across technology, marketing, front-office talent, and branch renovations. Citi Ventures previously invested in development platform Anaconda in 2018 and has since exited the portfolio holding.
Regulatory and operational risks persist alongside the financial turnaround. In 2024, U.S. regulators fined Citi $136 million for making insufficient progress on data management issues identified in 2020. Fraser stated on the earnings call that the bank has focused on hardening systems and running challenging stress tests. While the latest quarterly figures show Fraser’s restructuring is gaining traction across Services, Markets, and Banking, flat card growth, below-target wealth returns, and unresolved operational risks indicate the turnaround remains a work in progress.
