Citigroup (NYSE:C) exceeded Wall Street’s first-quarter profit expectations Tuesday, supported by strong dealmaking activity despite ongoing geopolitical uncertainty. Shares rose more than 2% intraday.
The bank reported net income of $5.8 billion, or $3.06 per diluted share, for the first quarter of 2026, compared to $4.1 billion, or $1.96 per share, in the prior-year period. The results significantly exceeded analyst expectations of $2.63 per share.
Investment banking performance contributed to the strong results, with fees rising 19% to $1.3 billion. Growth was driven by increases in advisory and equity capital markets activity, while debt capital markets declined. Advisory fees rose 19%, reflecting strong sell-side activity and continued strength in sponsor-related business.
Industry-wide data from Dealogic showed global investment banking revenue increased 14% year over year to $28.2 billion in the first quarter, led by North America and marking the strongest first-quarter performance since 2021.
Executives across Wall Street continued to anticipate robust mergers and acquisitions activity throughout the year, supported by a more accommodative regulatory environment and ongoing momentum in artificial intelligence-related dealmaking.
