C Citigroup 10-Q 2026-09-30 section summaries

Cover page

Citigroup Inc. (NYSE: C), a Delaware corporation, filed a Form 10-Q for the quarter ended September 30, 2026.

The filing’s contents indicate that it covers quarterly results and analysis for five reportable business segments, transformation updates, capital and risk disclosures, and unaudited consolidated financial statements.

Reporting structure and presentation changes

Effective January 1, 2026, Citi reorganized its consumer businesses: Retail Banking moved from U.S. Personal Banking (USPB) to Wealth, while the remaining USPB businesses became the new U.S. Consumer Cards segment. Retail Banking’s financial results and balance sheet moved with it. These were presentation reclassifications and did not change consolidated results for any period presented.

Citi also revised how it allocates tangible common equity (TCE) among Services, Markets and Banking to better reflect capital usage and the shared economic benefits of corporate lending. The change eliminated a corporate-lending revenue-sharing arrangement previously reported in the segments’ “All other” revenue. As a result, reported revenue increased for Services and Markets and decreased for Banking, without affecting consolidated revenue. Citi also reassigned certain Markets interest-rate risk-management activities to All Other—Corporate/Other or among Markets businesses, affecting reported results for both Markets and All Other. An enhanced TCE allocation methodology affects each segment’s allocation beginning in Q1 2026.

Businesses and other developments

Citi reports five businesses—Services, Markets, Banking, Wealth and U.S. Consumer Cards—with unassigned activities reported in All Other. Mexico is included in International/LATAM.

Citi completed the sale of AO Citibank in Russia on February 18, 2026. Russia had previously been included in the Middle East and Africa cluster.

Non-GAAP measures

Citi presents selected non-GAAP measures to help explain underlying performance, capital use and non-Markets operating trends. They include results excluding the Q3 2025 Banamex goodwill impairment charge; All Other on a managed basis excluding divestiture-related impacts; Banking and Corporate Lending revenue excluding loan-hedge gains and losses; TCE, return on TCE and tangible book value per share; and non-Markets net interest income and non-interest revenue. The Banamex impairment is reported in All Other—Legacy Franchises. Citi cautions that these measures are not substitutes for GAAP results and may not be comparable with similarly named measures at other companies.

Q3 2026 results

Higher revenue, lower expenses and a lower effective tax rate drove earnings growth, partly offset by higher credit-loss provisions. Reported net income growth was 40%; excluding the prior-year Banamex-related goodwill impairment, growth was 17%. The Q3 2025 impairment was $726M pretax ($714M after tax), and adjusted prior-year EPS was $2.24. Citi generated positive operating leverage: expenses fell 2% as revenue rose 8%; excluding that impairment, expenses increased 3%.

Revenue drivers

Non-Markets NII increased 7%, while Non-Markets NIR increased 12%. Revenue growth in Services, Wealth, Markets and Banking was partly offset by a decline in All Other (managed basis). Average loans were $809B, up 12%, with growth across Markets, Services, USCC, Wealth and Banking. Average deposits were approximately $1.5T, up 11%, driven by Services.

Lower consulting expenses were offset by higher transactional and product-servicing costs—including costs associated with Markets volumes, USCC customer engagement and Services volumes—as well as higher deposit-insurance costs, severance and a Citi Foundation contribution.

Credit costs

Q3 2026 provisions included $2.2B of net credit losses, largely unchanged year over year, and a $369M net reserve build, compared with $236M in Q3 2025. The current-quarter build reflected changes in the macroeconomic outlook and portfolio growth; the prior-year build reflected portfolio growth and transfer risk, partly offset by macroeconomic outlook changes.

Capital, shareholder returns and strategic developments

Citi’s Basel III Standardized CET1 ratio was 12.8% at September 30, 2026, versus 13.3% at September 30, 2025—approximately 120 basis points above the regulatory requirement. The decline reflected common-share repurchases, common and preferred dividends, and higher risk-weighted assets, partly offset by net income and favorable AOCI movements. Citi returned $4.1B to common shareholders during the quarter: $3.0B in repurchases and $1.1B in dividends.

Citi completed the sale of a 1.4% Banamex equity stake and retained 51% of Banamex voting stock. Its multiyear transformation, including remediation of the 2020 FRB and OCC Consent Orders, remains ongoing and is described as nonlinear.

Risks and outlook

Citi noted that higher interest rates, elevated inflation, escalating Middle East conflicts and AI-related risks could contribute to market volatility and disruption, weaken economic growth and employment, and adversely affect clients, businesses, funding costs, provisions, results and financial condition during the remainder of 2026.

Citigroup — Q3 and first nine months of 2026

Consolidated results

Q3 revenue grew 8%, compared with 12% growth for the first nine months. In Q3, net interest income rose 14%, while non-interest revenue declined 4%; for the nine-month period, the respective increases were 13% and 10%. Q3 operating expenses fell 2%, but the prior-year quarter included a $726 million pretax ($714 million after-tax) Banamex goodwill impairment. Nine-month expenses increased 3%. Provisions rose 6% in Q3 and declined 2% for the first nine months.

Q3 Citigroup net income increased 40% year over year, and diluted EPS rose 53%; for the nine months, net income increased 42% and diluted EPS rose 57%. Net income attributable to noncontrolling interests (NCI) was $175 million in Q3 2026 versus $38 million, and $521 million for the first nine months versus $95 million. The increase primarily reflects Banamex equity sales completed in December 2025, April 2026 and August 2026, which shifted a portion of Banamex earnings to noncontrolling shareholders.

Capital returns

Balance sheet and staffing

At September 30, direct staff totaled 217,000, down from 227,000 a year earlier. Average assets were $3.002T in Q3 2026 versus $2.689T in Q3 2025, and $2.918T for the first nine months versus $2.618T.

Returns, efficiency and capital ratios

The improvement in operating leverage reflects revenue growth substantially exceeding expense growth. At September 30, 2026 versus September 30, 2025, CET1 was 12.77% versus 13.27%, Tier 1 capital was 14.56% versus 14.97%, total capital was 15.63% versus 15.31%, and the supplementary leverage ratio was 4.99% versus 5.52%. Book value per common share was $115.61 versus $108.41; tangible book value per share was $101.59 versus $95.72.

Citigroup — Q3 and nine months ended September 30, 2026

Consolidated results

Q3 net revenues increased 8%; income from continuing operations rose 43% and net income rose 40%. For 9M, revenue increased 12%, income from continuing operations 46%, and net income 42%. The difference between continuing-operations income and Citigroup net income reflects deductions for noncontrolling interests (NCI): $0.175B in Q3 2026 versus $0.038B in Q3 2025, and $0.521B for 9M 2026 versus $0.095B for 9M 2025.

Q3 segment results

Wealth and Banking led Q3 segment income growth, up 93% and 42%, respectively. USCC income declined 8% despite nearly flat revenue. The All Other divestiture-related reconciliation shifted from a loss to income.

For segment results where 9M growth differed from Q3 growth by at least 3 percentage points, the 9M values were: Services income $7.487B from $5.675B; Markets revenue $20.366B from $17.800B and income $6.794B from $5.409B; Banking revenue $5.430B from $4.611B and income $1.033B from $0.580B; Wealth income $1.600B from $0.879B; and USCC income $2.435B from $2.525B. All Other—managed basis revenue was $4.851B from $4.650B, with an income loss of $1.958B versus $2.164B. Divestiture-related reconciling items had revenue of $0.045B versus a loss of $0.175B and an income loss of $0.008B versus $0.972B.

Balance sheet

Assets expanded 11%, driven in part by higher Markets client activity and financing needs, loan growth, and Services deposit inflows. Resale agreements and trading assets rose 15% and 18%, respectively. Investments increased 6%: available-for-sale debt securities rose $60B (24%) on net purchases of U.S. Treasuries and mortgage-backed securities, while held-to-maturity debt securities fell $32B (17%) as Treasuries matured and mortgage- and asset-backed securities paid down. Loans grew 9%, supported by Markets spread-product financing, North American Banking, Wealth lending, Services trade loans, and the American Airlines co-branded card portfolio acquired in Q2 2026.

Deposits grew 7%, primarily from Services operational deposits. Repurchase financing increased 18%, while trading liabilities rose 31% with higher Equity Markets and Rates and Currencies activity. Short-term borrowings increased 19%, reflecting greater commercial paper issuance, client-related funding, and Federal Home Loan Bank (FHLB) advances. Long-term debt rose 9%, driven by FHLB advances and non-bank customer-related debt, partly offset by lower non-bank benchmark debt.

Common equity was $191.359B versus $192.241B. Net income of $16.9B, $1.6B from Banamex equity sales, and $1.9B of lower accumulated other comprehensive income (AOCI) losses were more than offset by $13.3B of common share repurchases and $4.2B of dividends ($3.2B common and $1.0B preferred). Preferred stock declined to $18.050B from $20.050B after $3.8B of redemptions and $1.8B of issuances. Noncontrolling-interest equity rose to $2.374B from $1.531B, primarily due to the April 2026 Banamex equity sale.

Citi Services (TTS and Securities Services)

Citi Services generates revenue primarily from deposit spreads and interest, transaction and clearing fees, and custody and administration fees. It operates in more than 90 countries and jurisdictions. In 3Q26, revenue growth was driven by higher net interest income and fees; management cited operating-deposit growth, particularly in North America, and deposit spreads as drivers of net interest income.

Revenue and results

$ in millions, except efficiency ratio

3Q26 revenue increased 15%, while operating expenses rose 10%; net income grew 27% and the efficiency ratio improved. The credit provision was a $26 million benefit, reflecting a $29 million net reserve release following refinements to loss assumptions, partly offset by $3 million of net credit losses. In 3Q25, Citi recorded a $50 million reserve build and $11 million of net credit losses. For 9M26, the $126 million provision included a $115 million net reserve build and $11 million of net credit losses; the build reflected a changed macroeconomic outlook and portfolio growth. The prior-year provision included a $428 million reserve build, primarily related to transfer risk, and $37 million of net credit losses.

Business-line revenue

$ in millions

TTS revenue grew 16% in the quarter, and Securities Services revenue grew 13%. Higher transaction-related costs and compensation, including severance and performance-related pay, contributed to expense growth.

Revenue by managed geography

$ in millions; 9M columns shown where the 9M growth rate differed from the quarter by at least 3 percentage points.

North America was the fastest-growing major geography in 3Q26, up 25%; International revenue grew 11%. TTS revenue also benefited from a more favorable impact of currency devaluation in Argentina.

Operating metrics

AUC/AUA growth reflected newly onboarded assets and market valuations, partly offset by a prior-year mark-to-market gain. TTS cross-border transaction value rose 10%, U.S. dollar clearing volume 5%, and commercial card spend 10%. The allowance for credit losses on loans was 0.43% of period-end loans, versus 0.35%; annualized net credit losses were 0.01% of average loans, versus 0.05%.

Period-end segment assets were $672 billion, up from $627 billion; 3Q average assets were $689 billion, versus $616 billion. Overall, revenue growth outpaced expense growth, with low credit losses, while the 9M reserve build underscores sensitivity to macroeconomic assumptions and portfolio growth.

Citi Markets

Citi Markets provides sales and trading, market-making, risk management, financing and prime brokerage across asset classes, supported by trading floors in nearly 80 countries and a proprietary network spanning more than 90 countries and jurisdictions. Citi evaluates the business on total revenue because hedged inventory can generate offsetting gains and losses across revenue lines; market-making gains and losses are largely recorded in principal transactions.

Consolidated results

Q3 revenue increased 6% as net interest income growth more than offset lower non-interest revenue, particularly principal transactions. For 9M, revenue rose 14%: net interest income increased 45%, while non-interest revenue declined 5%. Fee revenue grew in both periods, led by brokerage and fees. Higher transaction-related costs, compensation, performance-related compensation and severance contributed to the 7% Q3 expense increase; 9M expenses rose 9%, primarily on higher performance-related compensation and volume-related costs.

Markets businesses

Fixed Income Markets rose 4% in Q3, as 13% growth in Spread Products and Other Fixed Income—led by spread-products financing—offset essentially flat Rates and Currencies, where FX growth and higher client-driven volumes were offset by lower rates revenue. For 9M, Fixed Income revenue increased 8%, led by 22% growth in Spread Products, including commodities and financing. Equity Markets grew 14% in Q3 and 33% for 9M, driven by prime services; Q3 prime balances increased more than 40%, reflecting new onboarded balances and market valuations. Higher 9M equity-derivatives revenue also reflected increased client activity, although lower equity-derivatives revenue partly offset Q3 growth.

Geographic revenue

North America revenue increased 1% and International 10% in Q3; regional results varied, with declines in LATAM and Europe. For 9M, North America increased 13% and International 15%, with growth across all listed International regions.

Credit and other operating measures

Q3 provision was $77M, versus $32M a year earlier. The current period included a $79M net reserve build, driven by portfolio growth and changes in the macroeconomic outlook, and $2M of net credit recoveries. The prior-year period included $68M of net credit losses and a $36M net reserve release, including releases related to Spread Products charge-offs. For 9M, provision declined 50% to $171M from $341M: a $186M net reserve build and $15M in net credit recoveries in 2026 compared with $218M in net credit losses and a $123M reserve build in 2025. The current build reflected portfolio growth and macroeconomic changes, partly offset by refinements to loss assumptions. Average loans grew alongside financing activity, while higher compensation and transaction- and volume-related costs constrained operating leverage.

Banking — Q3 and 9M 2026

Banking’s Q3 revenue growth was modest excluding loan-hedge effects, while net income rose 40%, supported by a much lower credit-loss provision than a year earlier. For 9M, revenue and net income increased more strongly. Investment Banking was the main revenue-growth engine; Corporate Lending remained pressured by lower loan spreads and, year to date, loan-hedge mark-to-market losses.

Consolidated results

Reported revenue increased 6% in Q3 and 18% in 9M; excluding loan-hedge effects, it rose 2% and 15%, respectively. Loan hedges produced Q3 gains of $9 million versus losses of $44 million, and 9M gains of $27 million versus losses of $92 million. These are mark-to-market effects from economic hedges. Higher compensation, including performance-related pay and business investment, contributed to expense growth; 9M expenses also reflected higher transaction-volume and legal expenses.

Revenue components and business lines

Investment Banking revenue grew 9% in Q3 and 23% in 9M. Its activity-level drivers were:

ECM growth reflected broad fee growth across products. Advisory declined in Q3 against strong prior-year performance, but increased for 9M, supported by a strong first quarter. DCM’s Q3 investment-grade weakness was mostly offset by leveraged-finance growth; 9M benefited from increased activity in both leveraged finance and investment grade. Corporate Lending revenue excluding hedges fell 16% in Q3 and 8% in 9M, pressured by lower loan spreads. Including hedge effects, management reported Corporate Lending revenue down 4% in Q3 and up 2% in 9M; 9M ex-hedge results also reflected mark-to-market losses on certain assets, partly offset by higher average loan balances and commitments in Q3.

Geography

International revenue was nearly flat in Q3 despite sharp differences among markets: JANA rose to $312 million from $150 million, while the UK fell to $163 million from $246 million and LATAM to $75 million from $134 million. For 9M, JANA increased to $572 million from $451 million; UK and LATAM declined to $642 million from $663 million and $315 million from $350 million, respectively. Banking serves clients in more than 90 countries and jurisdictions.

Credit and balance-sheet indicators

Q3 provision for credit losses was $23 million, comprising $43 million of net credit losses (versus $9 million) and a $20 million net reserve release (versus a $148 million build). The release reflected improved credit quality and transfer-risk changes, largely offset by portfolio growth. In 9M, the $397 million provision included $187 million of net credit losses (versus $59 million) and a $210 million net reserve build (versus $485 million). Loan losses primarily related to sales of previously reserved loans; the reserve build reflected portfolio growth and macroeconomic outlook changes, partly offset by loan-sale releases, assumption refinements and improved credit quality. Period-end assets were $158 billion, up 12% from $141 billion; ACLL was 1.89% of period-end loans excluding fair-value loans, versus 1.83%.

Citi Wealth — Q3 and first nine months of 2026

Citi Wealth revenue grew faster than expenses in both periods, lifting pretax and net income. Higher deposit spreads and balances supported net interest income, while investment fees contributed to fee growth. Results also reflect higher market valuations and strong net new investment assets; management notes that those flows can vary with economic conditions, volatility, sentiment, seasonality, client activity and product mix.

Financial results

Revenue rose 15% in Q3 and 13% for the first nine months. Net interest income increased 20% and 17%, respectively, primarily from higher deposit spreads and average deposit balances, partly offset by lower mortgage spreads. Non-interest revenue grew 5% in both periods. Higher investment fees supported fee growth; nine-month results also faced the absence of an approximately $80 million gain on sale of an alternative-investments fund platform in Q2 2025 and lower trust-business fees following its sale in Q3 2025.

Expenses increased 3% in Q3, reflecting compensation—including performance-related compensation and severance—and 2% for the first nine months, also reflecting higher technology costs. Q3 provisions rose as a $32 million reserve build, reflecting portfolio growth and macroeconomic outlook changes, more than offset the decline in net credit losses; losses were driven by Citigold and Retail Banking. The nine-month reserve build reflected macroeconomic outlook changes, partly offset by credit-quality changes.

Revenue by business line

Q3 growth was broad-based. Over the first nine months, growth came from Citigold and Retail Banking and the Private Bank, while Wealth at Work was essentially flat. No separate profit measure is reported for these business lines.

Revenue by managed geography

Client balances, flows and credit

Management cited more than $75 billion of NNIA over the last 12 months, equivalent to 11% organic growth. Higher market valuations also contributed to investment-asset growth. Beginning in Q1 2026, reported client investment assets included approximately $10 billion of client insurance-policy value not previously reported, affecting comparability. Average deposit growth reflected Private Bank balances, partly offset by declines in Citigold and Retail Banking; loan growth reflected securities-based lending and mortgages.

Citi Wealth provides banking, investment, lending, insurance and custody services across approximately 20 countries and jurisdictions. U.S. branches are concentrated in six major metropolitan areas, with international wealth centers in Singapore, Hong Kong, London and the UAE. Results remain sensitive to deposit and mortgage spreads, investment activity and market valuations.

U.S. Consumer Cards (USCC)

USCC provides unsecured general-purpose and private-label credit cards and installment lending. Net interest income is its primary revenue source; interchange and other card fees are substantially offset by rewards and partner payments. 2026 results include the American Airlines co-branded card portfolio acquired in Q2.

Results

Quarterly revenue was essentially flat, while nine-month revenue grew 2%. Higher interest-earning balances supported net interest income growth; nine-month growth also reflected higher loan spreads. However, rewards and partner payments grew faster than interchange, driving the larger non-interest revenue loss. Higher co-brand partner payment accruals and rewards costs pressured fee revenue despite interchange and annual fee growth. Customer-engagement transaction costs and marketing contributed to expense growth; severance also contributed year to date. Lower compensation partly offset quarterly expense increases, and lower legal expense partly offset year-to-date costs.

Credit costs and portfolio risk

Lower net losses mainly reflected improved private-label (PLCC) credit performance. The provision also included reserve builds: the table reports $207 million for 3Q26 and $323 million for 9M26, while the narrative cites $208 million and $326 million, respectively. The comparable 3Q25 build was $58 million; for 9M25, the table shows a $124 million reserve release, versus a $117 million release in the narrative. The 2026 reserve build reflected a changed macroeconomic outlook, the American Airlines portfolio acquisition and portfolio quality, partly offset by lower volume and refinements to loss assumptions.

Portfolio and card-business indicators

GPCC acquisitions declined 2% in 3Q but rose to 7.743 million for 9M26 from 5.272 million in 9M25 (up 47%). PLCC acquisitions fell 9% year to date, to 3.656 million from 4.034 million. GPCC’s larger average loan balance and spend volume contrasted with contraction in PLCC loans, spend and active accounts. Both portfolios showed improved quarterly loss and delinquency rates year over year.

Citi All Other—Managed Basis (Q3 and nine months ended September 30, 2026)

Consolidated results

Q3 revenue declined 3%, as lower net interest income more than offset higher non-interest revenue; 9M revenue increased 4% on the same broad mix shift. Expense reductions—reflecting lower transformation and closed-exit costs, and lower legal expenses for 9M—were partly offset by peso appreciation, severance, technology investment and compensation costs. Despite lower expenses, losses widened, with higher credit provisions contributing.

Revenue by business

Mexico Consumer/SBMM revenue rose 18% in Q3 and 29% for 9M, supported by higher retail banking and card loans, and fees from insurance, retirement and cards, as well as Mexican peso appreciation. The 9M comparison also benefited from an investment-sale gain and episodic items. Asia Consumer revenue fell amid exits and wind-downs. Corporate/Other was pressured by lower net interest income from asset/liability management impacts, partly offset by valuation adjustments and episodic non-interest revenue; Q3 episodic impacts were offset in LHA.

Credit and Mexico operating indicators

Higher Mexico Consumer loan volume and portfolio seasoning drove increased credit losses; reserve builds also reflected policyholder benefits and claims.

At September 30, 2026, the managed business had 1,268 branches, approximately $45B in deposits, $17B in retail banking loans, $10B in outstanding card balances and $8B in corporate loans. Managed-basis balance and average figures were:

All Other period-end assets were $198B, down from $211B. Asia Consumer period-end loans were $2B versus $3B, and LHA loans were $1B versus $2B. Managed results include managerial allocations and may differ significantly from Banamex as a standalone legal entity.

Banamex divestiture and strategic developments

On August 11, 2026, Citi completed the sale of a further 1.4% of Banamex common stock, fulfilling its previously announced commitment to sell 24% to investors; Citi retained 51% of the voting stock. Citi reported approximately $9B of unrealized cumulative translation adjustment (CTA) losses, net of hedges and taxes and including amounts already reclassified to noncontrolling interests (NCI) from 49% stake sales. It expects to recognize CTA losses in earnings when Banamex qualifies as held for sale and currently expects deconsolidation in early 2027, subject to change.

Deconsolidation requires Citi to own less than 50% of voting stock and lack substantive participating rights. It would remove Banamex assets and liabilities, including deferred tax assets, and related goodwill, CTA, accumulated other comprehensive income and NCI balances from Citi’s consolidated balance sheet. Citi expects the CTA impact associated with 2025 and 2026 stake sales and future deconsolidation to be regulatory-capital neutral; held-for-sale classification and deconsolidation are expected to be slightly accretive to CET1. Timing and structure of future transactions, including additional sales or a proposed IPO, depend on financial considerations, market conditions and regulatory approvals. Citi has largely completed exits from the 14 international consumer markets identified in its strategic refresh.

All Other: divestiture-related impacts and reconciliation

Citi’s All Other managed-basis results exclude divestiture-related impacts from the Banamex and Asia Consumer exits and are non-GAAP measures. Figures are in $ millions.

Managed-basis results

Quarterly managed revenue declined as lower net interest income outweighed higher non-interest revenue. For the first nine months, revenue increased despite lower net interest income, as non-interest revenue rose substantially. Managed operating expenses declined in both periods, while provisions increased. Pretax losses improved in both comparisons, but net losses widened.

U.S. GAAP results

The prior-year Q3 GAAP operating expenses included a $726 Banamex goodwill impairment (approximately $714 after tax) and Mexico separation costs. In Q3 2026, reconciling items included $7 of operating expenses, largely Mexico separation costs.

For 9M 2026, reconciling items included $45 of revenue and $63 of operating expenses, largely related to Mexico separation costs. For 9M 2025, reconciling items included a $186 loss related to the announced Poland consumer-banking sale and $837 of operating expenses, including the Banamex goodwill impairment and Mexico/Asia-exit separation and severance costs.

Noncontrolling interests

The increase primarily reflects Banamex equity sales completed in December 2025 and April 2026, which left a portion of Banamex earnings attributable to noncontrolling shareholders.

Capital, leverage and regulatory requirements

Citigroup and Citibank remained above regulatory minimums and were classified as “well capitalized” at September 30, 2026. Citigroup’s CET1 capital increased modestly from year-end; net income and favorable AOCI movements were largely offset by common share repurchases and common and preferred dividends. Its Standardized capital ratios declined, while Advanced Approaches CET1 and Tier 1 ratios were slightly higher. Citigroup’s binding CET1 measure was Standardized in both periods; binding Tier 1 was Standardized in September 2026 versus Advanced at year-end, and binding Total Capital was Advanced in both periods.

Standardized credit RWA rose $52.586B and Advanced credit RWA rose $38.356B, mainly reflecting higher derivatives and securities-financing activity, corporate-lending growth, and acquisition of an additional American Airlines co-branded card portfolio. Sales of the Russia and Poland consumer businesses partly offset the increases; Advanced credit RWA also declined with model updates. Market RWA fell under both approaches, primarily due to revised treatment of certain foreign-exchange exposures, downside protection in equity products, and exposure changes. Advanced operational RWA declined following methodology updates.

The Standardized buffer comprises a 3.5% GSIB surcharge and 3.6% stress capital buffer (SCB); the SCB remains 3.6% through December 31, 2027. Capital deductions included goodwill, net of related deferred tax liabilities, of $18.425B and other intangible assets, net of related deferred tax liabilities, of $3.751B.

Citi early adopted revised enhanced SLR requirements on January 1, 2026. The minimum SLR fell to 4.0% for both Citigroup and Citibank, from 5.0% and 6.0%, respectively; the revised requirement includes a 1.0% buffer. Leverage-based external TLAC and eligible long-term debt (LTD) requirements were 8.5% and 3.5%.

Citi had $345B of external TLAC and $159B of LTD. It exceeded risk-based requirements by $50B for TLAC and $34B for LTD, and leverage-based requirements by $40B and $33B, respectively. LTD as a percentage of Total Leverage Exposure was the binding requirement, with a $33B surplus. Citigroup Global Markets Inc. reported $19B of net capital against a $6B minimum; U.K. subsidiary Citigroup Global Markets Limited had $30B of total regulatory capital and exceeded its combined buffer and minimum requirements.

Regulatory developments may change future capital needs. The FRB’s September 30, 2026 final stress-testing rules generally average the stress capital decline component over the two latest annual tests, while continuing to update the dividend add-on annually; the existing 2.5% SCB floor remains. The SCB effective date shifts from October 1 to January 1, with changes first applying in 2028 and averaging beginning in 2029. A March 2026 Basel III proposal would replace the Standardized and Advanced Approaches with an expanded risk-based approach and affect leverage, TLAC and LTD calculations. A separate proposed GSIB surcharge change would revise systemic-risk measures and narrow Method 2 surcharge bands to reduce cliff effects. These proposals remained under consideration.

Tangible common equity and per-share measures

Citi defines tangible common equity (TCE) as common equity less goodwill and identifiable intangible assets other than mortgage servicing rights (MSRs).

Returns on equity

The company-defined returns improved in both the quarter and first nine months, alongside higher net income available to common shareholders. Citi cautions that other companies may calculate these measures differently.

Credit risk — average loans (3Q26)

Citi’s average loans grew 12% year over year and 3% sequentially. Growth was led by Markets and Services, with increases also in USCC and Wealth. Banking growth was more modest and reflected regional divergence. USCC’s total growth included the American Airlines co-branded card portfolio acquired in 2Q26, while PLCC balances continued to decline.

Services’ increase was driven largely by TTS working-capital lending and export and agency finance. Markets’ growth primarily reflected higher financing activity in spread products. Wealth increased with securities-based lending and mortgages. In Banking, stronger North American funded-loan demand was partly offset by a decline in Latin America. USCC’s GPCC growth was partly offset by the continued PLCC contraction.

All Other’s increase reflected Mexico Consumer/SBMM growth, including favorable Mexican peso appreciation. This was partly offset by continued Asia Consumer wind-downs and the reclassification of Legacy Franchises loans held for sale to Other assets.

Corporate credit exposure

Citi’s corporate credit exposure, gross before collateral and hedges, was $914.457B at September 30, 2026, up $97.206B (12%) from $817.251B at December 31, 2025. Growth was driven mainly by technology, media and telecom (TMT), particularly Banking, and by real estate and banks/finance companies, primarily Markets.

Direct outstandings exclude $8.5B of fair-value loans and $6.7B of held-for-sale loans at September 30, 2026; the comparable exclusions at December 31, 2025 were $6.8B and $5.2B.

Credit quality and concentrations

The portfolio remained predominantly investment grade, with a modest shift toward BBB exposure. Citi believes the portfolio was appropriately rated and classified, while noting that ratings and classifications involve management judgment and adjustments for macroeconomic and obligor-specific stress.

*The filing’s table heading does not specify the measurement period for net credit losses.

Downgrades could increase credit-loss provisions, reduce Citi’s appetite for obligors, and prompt additional hedging or exposure reductions.

Geographic mix was unchanged: North America 58% and International 42% at both dates.

TMT exposure increased about $29.8B, real estate about $23.2B, and banks/finance companies about $18.7B. Criticized non-performing exposure in real estate was $424M, down from $651M; transportation and industrials was $450M, up from $423M; and TMT was $200M, down from $345M.

Auto exposure included $20.1B of securitization financing facilities, of which $12.8B funded was 100% investment grade; at December 31, 2025, the amounts were $19.2B total and $10.6B funded, also 100% investment grade. Additional energy-related exposure across public sector and transportation/industrials was approximately $5.1B, including $2.0B funded, versus $4.4B and $1.7B funded, respectively.

Credit hedges

Economic credit-derivative and other hedges had $45.145B notional at September 30, 2026, compared with $40.602B at December 31, 2025.

Hedges are not reflected in reported direct outstandings or unfunded commitments, and Citi’s expected-credit-loss model does not include favorable effects from marked-to-market hedges. The rating mix of hedged exposure shifted toward higher ratings: AAA/AA/A was 54% versus 47%, BBB 34% versus 41%, BB/B 10% versus 11%, and CCC or below 2% versus 1%.

Consumer credit portfolio and quality — 3Q26

Consumer loans

Citi’s consumer loan portfolio, including credit-card interest and fees, was $418.4B at September 30, 2026, up 2.4% from December 31, 2025. Growth in Wealth and USCC more than offset the decline in PLCC and Legacy Holdings balances.

Wealth’s portfolio included approximately $54B of classifiably managed loans (26%); 68% of those loans were investment grade, compared with 69% at year-end 2025. USCC GPCC growth included the effect of acquiring an additional American Airlines co-branded card portfolio in 2Q26. GPCC and PLCC together made up approximately 98% of USCC loans and 97% of its 3Q26 net credit losses. Asia Consumer includes the remaining Korea portfolio.

Net credit losses

Wealth’s year-over-year NCL decline primarily reflected the absence of California-wildfire-related losses. USCC loss rates declined both sequentially, reflecting seasonality and improved performance, and year over year, reflecting improved portfolio performance. All Other losses increased primarily because of Mexico: 3Q26 included a $17M reversal of prior-period recoveries, alongside card-loan growth and seasoning. Mexico cards were approximately 40% of Mexico loans but generated approximately 60% of its 3Q26 NCLs.

Delinquencies

Wealth delinquency statistics exclude classifiably managed loans and specified government-guaranteed balances. Wealth delinquency was broadly stable sequentially and lower year over year, partly as mortgages exited wildfire-related forbearance. USCC 90+ day rates were broadly stable sequentially and lower year over year. Citi generally continues to accrue interest on credit-card loans until they are 180 days past due, unless it receives earlier bankruptcy notification. Mexico’s delinquency ratio declined sequentially but increased year over year, consistent with card growth and seasoning. Legacy Holdings had a 4.29% 90+ day delinquency ratio, up from 3.13%, on a comparatively small $0.9B loan balance.

Cardholder credit profile

At September 30, 2026, GPCC cardholders were 53% FICO 740 or higher, 34% in the 660–739 range and 13% below 660. PLCC cardholders were 36%, 40% and 24%, respectively. Both distributions were largely unchanged from June 30, 2026 and September 30, 2025.

Loans and allowance for credit losses

As of September 30, 2026, total loans net of unearned income increased to $819.705B from $752.230B at December 31, 2025. The allowance for credit losses on loans (ACLL) rose to $20.091B from $19.247B, while loans net of unearned income and ACLL increased to $799.614B from $732.983B.

Loans carried at fair value are excluded from ACLL ratio calculations.

Consumer loans

Consumer loans net of unearned income grew to $418.417B from $408.533B. Before portfolio-layer cumulative basis adjustments, balances were $420.200B and $408.190B, respectively; the unallocated adjustment changed to $(1.783)B from $343M. Growth was strongest in outside-North-America personal, small business and other loans. North American home equity declined, while credit-card balances rose modestly in North America and edged down outside North America.

Consumer loans were net of unearned income of $1.014B at September 30, 2026, versus $971M at December 31, 2025.

Corporate loans

Corporate loans net of unearned income increased to $401.288B from $343.697B. Before portfolio-layer cumulative basis adjustments, balances were $401.387B and $343.680B; the unallocated adjustment was $(99)M versus $17M. Financial institutions lending was a major growth driver in both North America and outside North America.

Corporate loans include Mexico SBMM loans and were net of unearned income of $(1.3)B at September 30, 2026, versus $(1.1)B at December 31, 2025. North America comprises the U.S., Canada and Puerto Rico; Mexico is classified outside North America.

Credit-loss experience — Q3 2026

Loan credit-loss provision

The total provision declined sequentially but was higher than a year earlier. Consumer provision increased from both comparison periods, while the corporate provision shifted to a benefit.

Net loan losses and loss rates

Sequentially lower net losses and loss rates were favorable. Total net loan losses were essentially unchanged year over year.

Gross losses, recoveries and geography

Q3 net losses comprised $1.746B in U.S. offices and $471M outside the U.S.; the corresponding Q3 2025 amounts were $1.812B and $402M.

Allowances and reserve coverage

The ACLL ratio excludes loans carried at fair value: those loans totaled $8.5B at September 30, 2026, $8.2B at June 30, 2026 and $7.9B at September 30, 2025. The allowance balance increased year over year even as ACLL coverage relative to period-end loans declined.

At September 30, 2026, ACLL was $16.721B for consumer loans and $3.370B for corporate loans, compared with $16.205B and $3.001B, respectively, at September 30, 2025. “Other—net” reduced the Q3 allowance by $69M, attributed to foreign-exchange translation. In Q2, “Other—net” increased the allowance by $126M, including approximately $78M from the acquisition of an additional American Airlines co-branded card portfolio and $48M from foreign-exchange translation.

Allowance for credit losses on loans (ACLL)

At September 30, 2026, Citi’s ACLL was $20.1B, up from $19.2B at December 31, 2025, while loans, net of unearned income, grew to $819.7B from $752.2B. The total ACLL ratio declined to 2.5% from 2.6%. That ratio excludes fair-value loans, which are not covered by ACLL: $8.5B at September 30, 2026, compared with $6.9B at December 31, 2025.

Consumer and corporate portfolios

North America cards remained the largest consumer ACLL category. Citi said card ACLL represented about 26 months of coincident net credit loss coverage, up from 24 months, based on Q3 2026 versus Q4 2025 net credit losses. Corporate loan growth was driven substantially by higher financial-institution and installment-and-other balances.

Corporate funded exposure by industry

The corporate industry table reported funded exposure of $392.810B and ACLL of $3.370B (0.9%), versus $336.893B and $3.053B (0.9%) at December 31, 2025. September 30, 2026 exposures and ACLL were:

Among larger industry exposures, power, chemicals, metals and mining had the highest coverage at 2.0%. Funded investment-grade coverage was unchanged at 0.3%; non-investment-grade coverage eased to 2.5% from 2.6%. The industry table excludes fair-value loans—$8.5B at September 30, 2026 and $6.8B at December 31, 2025—and includes $1.0B of exposure primarily related to commercial credit-card delinquency-managed loans, versus $0.7B previously.

Non-accrual loans and assets

At September 30, 2026, non-accrual loans (NAL) totaled $3.254B, down $365M (10.1%) from December 31, 2025 and $424M (11.5%) from September 30, 2025. Corporate NAL of $1.732B declined $269M from year-end and $339M year over year; consumer NAL of $1.522B declined $96M from year-end and $85M from the prior-year quarter. Corporate NAL equaled 0.43% of total corporate loans. About 60% of corporate NAL was current on interest and principal, versus 70% at year-end.

Corporate NAL declined mainly because of Markets upgrades and repayments and Banking loan sales and net rating changes; Services partly offset the decline. Consumer NAL decreased primarily due to Wealth.

NAL by geography and business

Q3 NAL rollforward

Lower additions and charge-offs contributed to the lower year-over-year ending NAL.

Nine-month NAL rollforward

Non-accrual assets and credit coverage

Other real estate owned (OREO), at carrying value, increased to $68M from $22M at year-end, comprising $44M in North America and $24M internationally. Total non-accrual assets—NAL plus OREO—were $3.322B, down from $3.641B.

The ACLL-to-NAL ratio includes credit-card and purchased credit-deteriorated loan allowances, while NAL generally excludes credit-card balances except for certain international portfolios. Citi generally accrues interest on credit-card loans until charge-off, typically at 180 days delinquent, so NAL does not capture all delinquent credit-card exposure. For NAL where Citi expects full or partial principal non-collection, cash receipts reduce principal rather than being recognized as interest income.

Liquidity and funding

At September 30, 2026, Citi reported approximately $1.1 trillion of available liquidity resources. This comprised $678 billion of end-of-period HQLA included in the LCR, $223 billion of additional unencumbered HQLA, and $158 billion of unused FHLB and Federal Reserve discount-window borrowing capacity. The additional HQLA includes excess bank-entity liquidity that is not transferable within Citi. HQLA securities reflect liquidity value after applicable haircuts, exclude encumbered securities, and incorporate legal-entity transfer restrictions.

Sequentially higher HQLA was primarily driven by increased deposits and other wholesale funding; the LCR increase reflected higher unsecured wholesale funding at non-bank entities. HQLA at September 30 comprised $304.6 billion of available cash, $217.7 billion of U.S. sovereign securities, $55.6 billion of U.S. agency and agency MBS, and $83.4 billion of foreign government debt. Citi also conducts internal 30-day liquidity stress tests. Its consolidated NSFR complied with the required minimum of 100% in 3Q26.

Deposits

Average deposits rose 11% year over year and 2% sequentially, driven by Services; end-of-period deposits increased 9% year over year and 1% sequentially.

Services’ 16% year-over-year growth reflected operating-deposit growth in TTS and Securities Services across North America and international markets. Wealth grew 3%, as Private Bank growth more than offset declines in Citigold and Retail Banking. All Other declined 17%, mainly due to lower corporate certificates of deposit. Of roughly $1.5 trillion in end-of-period deposits, about $1.033 trillion were institutional and spanned approximately 90 countries and jurisdictions. Around 85% of Services deposits came from clients using at least three integrated Services offerings, and about 80% came from clients with relationships longer than 15 years. Wealth deposits were approximately $419 billion at quarter-end.

Debt and other funding

Long-term debt (LTD) is stated at current balance-sheet value and includes fair-value, hedging, and unamortized discount or premium effects for certain instruments.

Total LTD increased 4% sequentially and 9% year over year. Higher FHLB funding and non-bank customer-related debt were key year-over-year drivers. Citi said 3Q26 FHLB advances supported balance-sheet growth for client activities and complemented its diversified funding base.

Nine-month 2026 maturities were $86.9 billion. Remaining maturities at September 30, 2026 were $10.9 billion for the rest of 2026, $35.9 billion in 2027, $62.2 billion in 2028, $43.1 billion in 2029, and $136.1 billion thereafter.

Secured funding was $410 billion at September 30, up 17% year over year and largely unchanged sequentially; the increase mainly supported Markets activity. Average secured funding in 3Q26 was $476 billion. Citi primarily obtains secured funding through broker-dealers, chiefly against government securities, and manages exposure with limits and daily stress tests. Short-term borrowings were $62 billion, up 12% year over year but down 11% sequentially as Citi diversified away from short-term funding. The year-over-year increase mainly reflected commercial paper and customer-related debt issued to support client activity.

Ratings and funding vulnerabilities

Citigroup’s long-term ratings were Fitch A (positive outlook), Moody’s A3 (stable), and S&P BBB+ (stable); Citibank’s were AA- (positive), Aa3 (stable), and A+ (stable), respectively. A hypothetical one-notch downgrade across all three agencies was estimated to increase derivative-triggered cash obligations and collateral requirements by approximately $0.3 billion at September 30, 2026, up $0.1 billion from June 30. The estimated impact was $0.1 billion for Citigroup Inc. (unchanged) and $0.2 billion for Citibank (up $0.1 billion). Other funding sources and margin requirements without explicit triggers could also be affected. Citibank had approximately $13 billion of liquidity commitments to ABCP conduits, compared with $11.8 billion at June 30; a downgrade could also pressure its commercial-paper rating.

Interest-rate risk and net interest income

Citi remained asset-sensitive to non-trading interest rates at September 30, 2026. Its estimated benefit to net interest income (NII) from a 12-month, instantaneous +100 bp parallel rate shock increased from the prior quarter and year-earlier periods. The same shock would reduce accumulated other comprehensive income (AOCI) after tax, with an estimated CET1 capital-ratio impact of -17 bp.

Citi expects forecast investment-portfolio interest income and paydowns could potentially offset the approximately $3.1B AOCI loss in shareholders’ equity over about 14 months.

Rate sensitivity is asymmetric. At September 30, 2026, downward shocks produced a larger modeled NII impact than comparable upward shocks:

Citi’s greater exposure to downward U.S.-dollar rate shocks reflects weaker incremental deposit benefits at higher rates and mortgage/MBS prepayments. Exposure is greater at the short end of the curve; low-rate floors and mortgage convexity also affect downside estimates. The scenarios hold deposit balances and mix constant, so customer migration from low-cost to higher-yielding deposits could reduce modeled NII benefits as rates rise. Citi also expects higher deposit betas to dampen incremental benefits at progressively higher rates.

Interest results

For the nine months ended September 30, taxable-equivalent NII was $49.932B, compared with $44.208B in 9M25. Average interest-earning assets were $2.695T, compared with $2.401T.

NII rose 14% year over year, while NIM increased 3 bp year over year but fell 11 bp sequentially, largely because of lower Markets NII, partly offset by a benefit from rates. Non-Markets NII growth reflected higher average deposit balances and spreads in Services and Wealth and higher U.S. Consumer Cards interest-earning balances. Those gains were partly offset by lower Wealth mortgage spreads and higher Asset and Liability Management impacts in All Other—Corporate/Other.

Foreign-exchange risk

A hypothetical instantaneous 5% U.S.-dollar appreciation against currencies in which Citi has invested capital was estimated to reduce tangible common equity (TCE) by approximately $1.5B, or 1.0%. The euro, Mexican peso and Singapore dollar were the primary contributors. The estimate excludes potential mitigating management actions; hedging strategies and costs, divestitures and tax effects may change actual capital impacts.

The weighted-average FX spot rate declined 0.3% in Q3 2026.

Disclosure conventions

Certain average rates reflect prevailing local interest rates, including inflation and monetary corrections in some countries; daily averages are unavailable for certain subsidiaries. Repo volumes are reported net under ASC 210-20-45, while related interest expense is not netted. For Services, Markets and Banking, interest expense on trading account liabilities is presented as a reduction of interest income. The fair-value disclosure excludes hybrid instruments and beneficial interests in consolidated VIEs classified as long-term debt; changes in fair value on those obligations are recorded in principal transactions.

Trading portfolio market risk (VaR)

VaR is measured at 99% confidence and includes general and specific risk where indicated. Average total trading VaR increased sequentially, driven by higher average interest-rate exposure in Rates and Currencies within Markets.

At September 30, 2026, quarter-end total trading VaR was $119M, down from $131M at June 30, 2026, and up from $110M at September 30, 2025. Quarter-end total trading and credit portfolio VaR was $126M, compared with $136M and $113M at those respective dates.

Markets VaR, which excludes specified CVA and loan-related exposures, averaged $129M in Q3 2026, with a high of $148M and a low of $113M.

The credit portfolio measure includes specified non-trading mark-to-market positions and related CVA positions and hedges, loan-portfolio hedges, fair-value-option loans, and leveraged-finance pipeline hedges; it excludes FVA and DVA. Trading VaR excludes specified loan and CVA-related exposures, as well as available-for-sale and accrual exposures.

Citi’s VaR calibration accounts for fat-tail effects and uses the greater of short-term volatility (approximately the most recent month) and longer-term volatility (18 months for commodities and three years for other factors). This conservative calibration added an estimated 17% to trading and credit portfolio VaR at September 30, 2026, versus 5% at June 30, 2026. There were no Regulatory VaR back-testing exceptions in the 12 months ended September 30, 2026.

Non-U.S. country and jurisdiction exposures

As of September 30, 2026 (3Q26), Citi’s 25 largest non-U.S. country and jurisdiction exposures represented 31.9% of total Citi exposure and 80.3% of non-U.S. exposure. Together with the U.S., these exposures represented 92% of exposure to all countries and jurisdictions.

Amounts are based on the obligor’s country of risk and combine funded exposures, unfunded commitments, trading activity, hedges and investment securities. Trading exposures are net of collateral and include CVA; investment securities include AFS debt at fair value and HTM debt at amortized cost.

The largest movements included increases of $16.0B in the United Kingdom and $14.3B in France, alongside declines of $13.6B in Germany and $4.9B in South Korea. Citi cautions that exposure changes may reflect client activity, market flows, foreign-exchange movements and liquidity management, and therefore do not necessarily indicate a change in underlying credit risk. Country-of-risk classification may differ from the obligor’s place of incorporation when repayment sources or parent guarantees point to another jurisdiction. Citi refers investors to its 2025 Form 10-K and prior filings for additional discussion of country, emerging-market, Argentina and Ukraine risks.

Credit-loss allowance

At September 30, 2026, Citi’s total allowance for credit losses (ACL) was $22.375B, up $224M from June 30. The quarter included a $286M net ACL build, partly offset by $62M of foreign-exchange and other reductions.

Consumer reserves

Consumer ACLL increased $271M during 3Q26, primarily due to a changed macroeconomic outlook and higher loan volume. It was 4.00% of funded consumer loans at quarter-end.

U.S. card reserves were 7.72% of funded card loans, up from 7.61% at June 30. Reserves on remaining consumer exposures were 1.24% of funded loans, compared with 1.25%.

Corporate reserves

Corporate ACLL was $3.370B, or 0.86% of funded corporate loans, after a $72M net release in 3Q26. Banking released $100M, reflecting credit-quality changes; Services released $23M following refinements to loss assumptions; and Markets built $62M, reflecting portfolio growth and the macroeconomic outlook. Legacy Franchises corporate ACLL was $123M, down $11M.

Economic assumptions and sensitivity

Citi estimates ACL using weighted base, upside and downside scenarios. U.S. unemployment and real GDP growth are among the assumptions with the greatest effect on estimates. The 3Q26 base forecast’s eight-quarter average unemployment rate was 4.2%, versus 4.3% in the 2Q26 forecast and 4.4% in the 1Q26 forecast. Base-case U.S. GDP growth was forecast at 2.1% for 2026, compared with 2.0% in the 2Q26 forecast and 1.5% in the 3Q25 forecast; forecasts were 2.0% for both 2027 and 2028.

The downside scenario assumes recession conditions, including 6.9% average unemployment over the eight-quarter reasonable-and-supportable period and a 2.1% year-over-year GDP contraction in 2027. The weighted-average unemployment rate across the three scenarios was 5.3%. Assigning 100% weight to the downside scenario would hypothetically increase ACL by approximately $4.5B for lending exposures. This sensitivity excludes individually evaluated loans, other amortized-cost financial assets, and potential changes to qualitative ACL components.

Income taxes and deferred tax assets

Citi attributed the lower 3Q26 effective tax rate largely to the absence of the prior-year Banamex goodwill impairment, for which only a limited tax benefit was recognized.

Net deferred tax assets (DTAs) were $29.2B at September 30, 2026, compared with $29.5B at December 31, 2025, and up $0.2B from June 30, 2026. They comprised $26.3B of U.S. DTAs and $2.9B of non-U.S. DTAs. Under U.S. Basel III rules, $12.3B was deducted from regulatory capital and $16.9B was risk-weighted. The deducted amount included $9.9B of tax carry-forwards and $3.1B of temporary differences above the 10% regulatory limit, less $0.7B of deferred tax liabilities, primarily associated with goodwill and certain other intangibles. Citi considers realization of the net DTAs more likely than not, based on expected future taxable income and tax-planning strategies.

Citi identifies financial-instrument valuations, credit-loss estimates, goodwill impairment, and litigation and regulatory accruals as areas requiring significant management judgment.

Disclosure Controls and Procedures

Citi’s CEO and CFO concluded that the company’s disclosure controls and procedures were effective as of September 30, 2026. Citi reported no activities, transactions, or dealings requiring disclosure under Section 219 of the Iran Threat Reduction and Syria Human Rights Act (Exchange Act Section 13(r)) for Q1, Q2, or Q3 2026. The section reports no financial results or material business developments.

Forward-Looking Statements and Key Risks

Citi’s forward-looking statements are subject to risks that could cause actual operating results, financial condition, capital and liquidity to differ materially from expectations. The principal risks include:

• Macroeconomic, market and credit conditions: Inflation, slowing growth or recession, unemployment, geopolitical conflict, political uncertainty and market disruption could affect Citi and its clients. Higher interest rates may weigh on economic growth and reduce the fair value of available-for-sale debt securities. Credit quality could deteriorate, including in leveraged finance, vulnerable sectors and private credit, or through concentrated exposures and counterparty risk.

• Artificial intelligence and emerging technology: AI presents opportunities but also risks tied to Citi’s exposures to capital-intensive AI infrastructure and borrowers affected by technological change. An AI-related market correction, operational or cyber incidents, fraud, legal and regulatory issues, model-governance shortcomings, reliance on a limited number of vendors, infrastructure or talent constraints, or failure to develop and scale AI safely and effectively could harm Citi’s competitiveness and results. AI, digital assets and other emerging technologies may also increase cybersecurity threats.

• Capital, divestiture and execution: Repurchases and dividends depend on regulatory capital requirements, operating results, effective capital planning and the utilization of deferred tax assets (DTAs). A potential cumulative translation adjustment (CTA) recognized in earnings when Banamex meets held-for-sale criteria could affect capital; the CTA remains in stockholders’ equity until deconsolidation. The Banamex divestiture and Citi’s broader simplification, transformation and business-performance initiatives carry execution, timing, expense, savings, CTA, litigation and regulatory risks, with potential material financial or strategic consequences.

• Regulatory, legal and tax matters: Regulatory and legislative uncertainty—including possible U.S. capital-framework changes—could increase compliance costs or restrict capital distributions. The geographic mix of earnings may affect DTA utilization and regulatory capital. Tax disputes could result in additional taxes, penalties or interest. Citi must also address FRB and FDIC feedback on resolution plans. The 2020 FRB and OCC consent orders require extensive remediation, investment and timely progress reporting; inadequate progress or other compliance failures could lead to heightened oversight, restrictions, capital buffers, enforcement actions, fines or penalties.

• Operations, controls and risk management: Control, data-governance and reporting deficiencies; legacy-system or third-party failures, including cloud-provider issues; outages, human error, fraud and cyber incidents could disrupt operations and cause reputational harm, litigation, regulatory action, deposit outflows, remediation costs or financial losses. Ineffective risk-management processes and changes in accounting standards or estimates—including those for credit-loss allowances, litigation and tax reserves, DTA valuation, fair values and impairment—could also affect results. A sale or deconsolidation may trigger AOCI CTA reclassification.

• Other exposures: Ratings downgrades could affect funding, liquidity and business results. Citi also faces climate-related physical and transition risks, challenges in hiring and retaining qualified employees, deterioration in co-brand and private-label card relationships, and emerging-market risks involving foreign exchange, sovereign and political conditions, sanctions, regulation, commodities, cyber threats, asset confiscation and operations.

Forward-looking statements speak only as of their stated date, and Citi undertakes no duty to update them.

Citigroup — Q3 and nine months ended September 30, 2026

Consolidated results

Revenue grew 7.9% in Q3 and 12.1% for 9M. Q3 net interest income increased while non-interest revenue declined 4.0%. Within Q3 non-interest revenue, principal transactions fell to $2.275 billion from $2.772 billion; administration and fiduciary fees rose to $1.301 billion from $1.117 billion; and commissions were essentially flat at $2.884 billion versus $2.888 billion. Q3 loan-loss provision was $2.416 billion, compared with $2.259 billion. Lower other operating expense ($1.445 billion versus $2.000 billion) contributed to the decline in Q3 operating expenses, partly offset by higher compensation ($7.533 billion versus $7.474 billion) and transactional and product-servicing expense ($1.328 billion versus $1.110 billion). The 9M 2025 results included a $726 million goodwill impairment; there was no goodwill impairment in 9M 2026.

Shares and capital returns

Common shares outstanding were approximately 1,655.2 million at September 30, 2026, compared with 1,747.5 million at December 31, 2025. Citi acquired $13.300 billion of treasury stock in 9M 2026, versus $8.750 billion in 9M 2025. Common dividends were $1.142 billion in Q3 and $3.246 billion in 9M; the Q3 declared dividend was $0.67 per share.

Balance sheet

Intangible assets included $895 million of mortgage servicing rights. Total equity less goodwill and intangible assets implies tangible equity of approximately $187.678 billion. Held-to-maturity debt securities had a carrying amount of $157.501 billion and fair value of $143.205 billion, a $14.296 billion fair-value shortfall.

Cash flows

The operating cash outflow improved from the prior year, but included a $98.050 billion cash outflow from changes in trading assets, partly offset by a $49.837 billion inflow from trading liabilities. Investing cash flow included $75.044 billion of loan growth and $296.083 billion of AFS-security purchases. Financing included $101.749 billion from deposit growth and $130.299 billion of long-term debt issuance, partly offset by $86.970 billion of long-term debt repayments, $13.300 billion of treasury-stock purchases and $4.188 billion of dividends paid. Cash, due from banks and deposits with banks ended 9M at $354.841 billion, versus $348.060 billion a year earlier; cash interest paid was $61.270 billion versus $60.667 billion.

Comprehensive income

Q3 other comprehensive loss was $2.073 billion, compared with a $384 million loss in Q3 2025. It included $1.566 billion of after-tax AFS debt-security losses and $857 million of cash-flow-hedge losses, partly offset by a $450 million DVA gain. For 9M, other comprehensive loss was $1.878 billion, versus $3.682 billion of other comprehensive income in 9M 2025. Total comprehensive income was $3.172 billion in Q3 and $14.983 billion in 9M, compared with $3.368 billion and $15.517 billion, respectively, in the prior-year periods.

Basis of presentation and accounting updates

Citi’s unaudited consolidated financial statements cover the third quarter and nine months ended September 30, 2026. They include normal recurring adjustments. Preparing the statements requires management estimates that affect reported amounts; actual results may differ. Certain prior-period figures were reclassified or updated to conform to the current presentation.

Adopted standard

Citi early adopted ASU 2026-02, covering environmental credits, in Q3 2026, effective January 1, 2026. Citi has no regulatory obligations to hold environmental credits and acquired credits through trading. It elected fair-value measurement for all eligible classes. Previously, credits were generally carried at the lower of cost or market and were subject to fair-value hedging; credits for voluntary initiatives were expensed when acquired. The modified-retrospective adoption adjustment was immaterial because carrying values approximated fair value, in part due to Citi’s hedge program.

Upcoming standards

Citi does not expect material financial-statement impacts from:

• ASU 2026-01, on initial measurement of paid-in-kind dividends on equity-classified preferred stock, and ASU 2025-09, on hedge-accounting improvements. Both are effective for periods beginning after December 15, 2026.
• ASU 2026-03, on fair value of restricted equity securities, effective for periods beginning after December 15, 2027; it applies to Citi’s broker-dealer subsidiaries.

Citi is evaluating the impacts of ASU 2025-08 on purchased loans, ASU 2025-07 on derivative scope and share-based noncash customer consideration, and ASU 2025-06 on internal-use software costs.

ASU 2024-03 will require additional disaggregation of income-statement expenses, including employee compensation, depreciation, and intangible-asset amortization. It is effective for Citi’s FY2027 annual reporting and interim periods beginning January 1, 2028; Citi is evaluating the disclosure impact.

Significant disposals and other business

By September 30, 2026, Citi had largely completed its exits from the 14 international consumer markets identified in its strategic refresh, with Banamex the main remaining exception. Of the 13 exits discussed, Citi had sold 10 consumer businesses, exited two markets through wind-downs and loan-portfolio dispositions, and largely completed the Korea consumer-banking wind-down. The Poland consumer-banking sale closed in Q2 2026. Citi also sold a 24% interest in Banamex during Q2 and Q3.

Poland consumer banking

Citi sold the business on June 12, 2026. At sale, it had approximately $5.9B of assets: $1.2B cash and due from banks, $2.2B deposits with banks, $1.6B loans net of a $24M allowance, and $0.8B trading assets. Its approximately $5.7B of liabilities consisted primarily of deposits.

Citi recorded a cumulative pretax sale loss of approximately $153M since 2025 ($118M after tax) in Other revenue. Excluding the sale loss, pretax income was:

AO Citibank (Russia)

Citi signed and closed the sale to Renaissance Capital on February 18, 2026. At sale, AO Citibank had approximately $13.5B of assets, including $11.4B of other assets and $2.0B of cash and deposits with banks, and approximately $13.7B of liabilities, primarily deposits. The liabilities included $1.7B of intercompany deposits owed to Citi by RenCap.

The approximately $1.2B pretax sale loss ($1.1B after tax) was recorded in Other revenue, primarily in Q4 2025. Excluding the sale loss, pretax income was:

Banamex ownership-interest sale

Citi completed sales of an aggregate 24% interest in Banamex, approximately 499M shares, on April 29 and August 11, 2026. The fixed purchase price was approximately MXN 43B, with total cash consideration of approximately $2.4B. Citi retained 51% of Banamex’s voting stock.

The transactions increased Citi’s total stockholders’ equity by approximately $1.6B. This reflected reclassification of an approximately $2.1B Banamex cumulative translation adjustment loss from accumulated other comprehensive income to noncontrolling interests, partly offset by an approximately $0.6B net sale loss, recorded primarily in additional paid-in capital. The sale loss reflected consideration compared with 24% of Banamex’s U.S. GAAP book value, plus purchase-price adjustments.

As of September 30, 2026, Citi reported no remaining balance-sheet assets or liabilities related to these significant disposals.

Consolidated results

Reportable segments

Segment results are on a managed basis. The 9M columns are included for measures whose year-over-year growth differs from the Q3 rate by at least 3 percentage points.

U.S. Consumer Cards’ credit-loss provisions were $1.878B in Q3 2026 versus $1.799B in Q3 2025, and $5.588B for 9M 2026 versus $5.434B for 9M 2025. Higher provisions contributed to weaker segment income despite modest revenue growth.

Net interest income

Segment comparability and notable prior-year items

Effective January 1, 2026, Citi transferred Retail Banking from former U.S. Personal Banking to Wealth and formed U.S. Consumer Cards from the remaining U.S. Personal Banking businesses. Citi also changed its TCE methodology for allocating corporate-lending economics across Services, Markets and Banking, and moved certain Markets interest-rate-risk activities to All Other or other Markets businesses. Prior-period segment results were recast; consolidated results were unchanged. Segment results exclude divestiture-related impacts, which are separately reconciled.

Q3 2025 included $766M of divestiture-related operating expenses, including a $726M Banamex goodwill impairment; the expense impact was approximately $744M after tax. Q3 2026 included $7M of such expenses, largely Mexico separation costs. For 9M 2025, divestiture-related impacts included a $186M revenue loss on the announced sale of the Poland consumer bank and $837M of operating expenses, including the Banamex impairment and separation and severance costs. 9M 2026 included $63M of such expenses. These prior-year charges materially affect year-over-year earnings comparisons.

Commissions and fees

The nearly unchanged Q3 total masked growth in several fee streams, offset by larger card rewards and partner-payment deductions and declines in other commissions and loan-servicing fees. For 9M 2026, commissions and fees increased 13.4% year over year. Insurance premiums rose to $91M from $23M in Q3 and to $198M from $76M in 9M.

A substantial portion of commissions and fees is outside ASC 606: amounts were negative $3.5B in Q3 2026 versus negative $3.0B in Q3 2025, and negative $9.6B in 9M 2026 versus negative $8.6B in 9M 2025. These amounts primarily relate to card-related loan fees, rewards and partner payments, certain corporate finance fees, insurance premiums, and loan-servicing fees. Variable consideration primarily tied to performance obligations satisfied in prior periods was $49M versus $46M in Q3 and $155M versus $137M in 9M.

Administration and other fiduciary fees

Administration and other fiduciary fees grew 16.5% in Q3 and 12.1% in 9M. Custody fees, primarily earned by Services, were the strongest reported component, increasing 26.5% in Q3 and 21.4% in 9M. Fiduciary fees are primarily earned by Wealth and Legacy Franchises. Guarantee fees are generally outside ASC 606.

Principal transactions

Principal transactions revenue, comprising realized and unrealized gains and losses, excludes net interest income from trading activities. Q3 2026 revenue declined as interest-rate results swung to a loss and credit-product losses widened; stronger foreign-exchange and equity results partly offset those pressures. For 9M 2026, stronger FX and equity gains were largely offset by sharply lower interest-rate gains and larger credit losses.

Q3 revenue fell 17.9% year over year; 9M revenue was nearly flat, down 0.2%. Principal transactions include CVA and FVA on OTC derivatives and foreign-exchange effects, including related qualifying and economic hedges. Risk categories reflect the primary risk managed by trading desks, which may be reorganized.

Pension and postretirement benefits

Citi’s net benefit expense declined in Q3 and for the first nine months of 2026, primarily because non-U.S. pension expense was lower.

For the first nine months of 2026, non-U.S. pension expense included $331 million of interest cost and $39 million of net actuarial loss, partly offset by $336 million of expected returns on plan assets. In the comparable 2025 period, those amounts were $314 million, $49 million and $278 million, respectively. A $3 million curtailment gain in 2026 related to divestiture and other wind-down activities. Service cost is recorded in compensation and benefits; other benefit-cost components are recorded in other operating expenses.

Citi did not remeasure significant pension or postretirement plans during the nine months ended September 30, 2026 or 2025.

Contributions

Citi expected to contribute $197 million to benefit plans in 2026, compared with $645 million contributed in 2025. Contributions include cash paid to plans and benefits paid directly by Citi.

The higher 2025 contributions included approximately $40 million to a Mexico pension plan, $210 million to a Mexico postretirement plan and $190 million to a Korea pension plan; the Korea contribution followed legislative updates.

Earnings per share

Earnings allocation

Weighted-average shares

For 9M 2026, weighted-average stock options of 1.1 million did not affect diluted EPS under the treasury-stock method; no weighted-average options were outstanding in 9M 2025.

Securities borrowed, loaned and subject to repurchase agreements

At September 30, 2026, Citi’s secured financing assets and liabilities were higher than at December 31, 2025. Amounts below are carrying values unless otherwise stated.

Separate securities-for-securities lending transactions, where Citi receives securities it may sell or pledge, were $4.7B, compared with $5.5B at year-end 2025. The securities received and corresponding return obligation are recorded in other assets and brokerage payables.

Netting and counterparty exposure

Remaining exposures are secured by financial collateral. Some potential offsets depend on counterparty default and enforceability, supported by a legal opinion; Citi notes it may not have sought or obtained such an opinion. Accrued interest has been excluded from these tables since January 1, 2025 and is reported in other assets or other liabilities.

Funding maturities and collateral

Gross repo and securities-lending liabilities totaled $832.61B at September 30, 2026, up from $765.23B at December 31, 2025. The large open/overnight balance represents substantial short-term rollover exposure.

Collateral securing the liabilities totaled $832.61B at September 30, 2026. The collateral mix shifted toward foreign government securities and equities, and away from U.S. Treasury and federal agency securities.

Overall, both sides of Citi’s secured financing and securities-lending activities expanded materially from year-end 2025, as did net exposures after the reported offsetting amounts.

Investment portfolio

Citi’s investment portfolio increased to $472.766B at September 30, 2026, from $444.229B at December 31, 2025. The mix shifted toward available-for-sale (AFS) securities and away from held-to-maturity (HTM) securities.

Investment income and realized gains

Interest and dividend income rose modestly in Q3 and 9M 2026. Net realized gains were lower year over year in Q3, but higher for the first nine months.

For 9M 2026, gross realized gains were $583M and gross realized losses were $80M, compared with $406M and $42M, respectively, in 9M 2025.

AFS securities: valuation exposure

At September 30, 2026, AFS debt securities had $310.035B amortized cost, including portfolio-layer basis adjustments, and $306.850B fair value, with $3.178B net unrealized losses. Gross unrealized losses increased substantially, and a larger fair value of securities was in a loss position.

The growth in AFS holdings was particularly pronounced in U.S. Treasury and mortgage-backed securities; foreign government securities were broadly unchanged.

The larger unrealized-loss position is a notable valuation exposure. AFS impairment losses recognized in earnings were $5M in Q3 2026, versus $9M in Q3 2025, and $143M in 9M 2026, versus $14M in 9M 2025. These losses related to securities Citi intended, or was more likely than not required, to sell, or securities subject to a probable issuer call. The allowance for AFS securities Citi did not intend or expect to sell was immaterial.

HTM securities: fair-value shortfall and maturities

HTM securities had $157.501B amortized cost, net of a $123M allowance for credit losses, and $143.205B fair value at September 30, 2026—a $14.296B fair-value shortfall. The shortfall and gross unrealized losses increased from year-end 2025.

HTM holdings are concentrated in longer-dated mortgage-backed securities: $59.923B amortized cost was due after 10 years, with $49.554B fair value. Delinquent or non-accrual HTM securities were immaterial at both dates.

Equity valuation changes and impairments

For measurement-alternative equity securities, Q3 2026 earnings included $27M impairment losses, $3M downward observable-price changes, and $52M upward changes; Q3 2025 amounts were $14M, $2M, and $8M, respectively. For 9M 2026, the corresponding amounts were $93M, $3M, and $125M, versus $103M, $2M, and $54M in 9M 2025. For securities still held, life-to-date amounts were $540M impairment losses, $21M downward changes, and $911M upward changes. No impairment loss was recognized on non-marketable equity carried at cost in either Q3 2026 or Q3 2025.

Loan portfolio

Corporate loans

Citi’s corporate loan balances grew across both North America and other regions. Financial-institution and installment lending were notable contributors. Balances exclude approximately $2B of accrued interest receivable at both dates.

Citi sold or reclassified corporate loans to held-for-sale of $1.8B in Q3 2026 and $4.3B in 9M 2026, compared with $1.3B and $3.2B in the corresponding 2025 periods. There were no significant purchases of corporate loans classified as held-for-investment.

Fair-value loans are excluded from delinquency columns. Non-accrual loans with specific allowances had recorded investment of $747M and an allowance of $312M, versus $953M and $323M; non-accrual loans without specific allowances declined to $985M from $1.048B.

Corporate gross credit losses were $270M in 9M 2026, down from $376M in 9M 2025. C&I losses rose to $245M from $119M, while “other” losses fell to $14M from $232M. Corporate modifications for financially troubled borrowers increased to $433M in 9M 2026 from $141M in 9M 2025, primarily C&I ($346M) and mortgage/real estate ($71M). Modified loans outstanding were $545M at September 30, 2026, all current, versus $369M at year-end, of which $350M was current and $19M past due. No modified corporate loans defaulted in either Q3 2026 or Q3 2025.

Consumer loans

Consumer balances increased overall, including growth in North American cards and first mortgages. The portfolio-layer hedge adjustment changed substantially, from a negative amount at year-end to a positive amount at September 30.

The U.S. portfolio represented in Citi’s FICO table totaled $335.316B, up from $327.748B. Within it, credit cards were $177.364B versus $173.108B, first mortgages $121.881B versus $119.389B, personal, small-business and other loans $33.820B versus $32.379B, and home-equity loans $2.251B versus $2.872B. U.S. balances with FICO below 660 were $28.491B versus $28.652B; balances at or above 740 increased to $187.395B from $181.744B. These FICO comparisons do not cover the full portfolio; Citi uses regional measures or internal risk ratings for certain loans outside the U.S. The outside-North-America mortgage balance included $18.1B of Wealth mortgages, down from $18.6B.

Citi acquired approximately $7B of an additional American Airlines co-branded card portfolio in Q2 2026. Consumer loans sold or reclassified as held-for-sale totaled $777M in 9M 2026 versus $54M in 9M 2025; Q3 amounts were $3M and $12M, respectively.

Consumer credit performance and modifications

Consumer delinquency balances improved in aggregate, while outside-North-America delinquency and loss ratios worsened. Consumer non-accrual loans declined to $1.522B from $1.618B.

Gross consumer credit losses increased to $8.305B in 9M 2026 from $7.999B in 9M 2025. Credit-card losses, including revolving balances converted to term loans, were $7.466B versus $7.264B; personal, small-business and other losses were $807M versus $663M. Mortgage losses declined to $30M from $67M, and home-equity losses to $2M from $5M.

Permanent modifications for financially distressed consumer borrowers totaled $1.710B in 9M 2026 versus $1.658B in 9M 2025. North America modifications were $1.590B versus $1.579B, and outside-North-America modifications $120M versus $79M. North American card modifications rose to $1.311B from $1.196B, while mortgage modifications declined to $256M from $355M. Mortgage loans entering trial modifications fell to $8M from $59M.

Modified consumer loans performed as follows:

The lower North America 90+ day balance was concentrated in residential first mortgages ($71M versus $224M). Modified card balances increased to $1.630B from $1.525B, while card gross credit losses were $263M versus $277M.

Defaults of modified consumer loans, defined as 60 days past due, totaled $107M in Q3 2026 versus $104M in Q3 2025; 9M defaults were $187M in both years. North America defaults were $103M versus $101M in Q3 and $165M versus $177M in 9M. Outside-North-America defaults were $4M versus $3M in Q3 and $22M versus $10M in 9M, with the nine-month increase concentrated in personal, small-business and other loans ($14M versus $4M).

Citi’s consumer allowance models incorporate historical performance and macroeconomic scenarios; modifications affect expected credit losses through modeled default likelihood. Some modified loans remain delinquent until they meet FFIEC re-aging requirements. Credit cards generally stop accruing interest at 90 days past due and are charged off at 180 days; Mexico cards follow the same 90-day accrual and 180-day charge-off thresholds. Outside-U.S. residential mortgages with loan-to-value above 100% fell to $11M from $977M, and average LTV improved to approximately 53% from 56%.

Allowance for credit losses

Citi’s total allowance for credit losses (ACL) was $22.375 billion at September 30, 2026, up $1.002 billion from year-end 2025 but below September 2025. The year-to-date increase reflected changes in the macroeconomic outlook and portfolio growth and quality, partly offset by refinements to loss assumptions. The year-over-year decrease was driven primarily by the sharp decline in the allowance on other assets, which mainly covers transfer-risk exposures outside the U.S.

Loan credit costs and reserves

Loan provisions increased year over year in both Q3 and the first nine months of 2026. Net credit losses were nearly unchanged in Q3 and slightly lower year to date; reserve builds were higher in both periods.

The 9M 2026 net reserve build comprised $348 million for corporate and $461 million for consumer portfolios.

Consumer and corporate ACLL increased $527 million and $317 million, respectively, from year-end. Citi attributed the increases to macroeconomic outlook changes and portfolio growth—including the additional American Airlines co-branded card portfolio—partly offset by refinements to loss assumptions; corporate reserves were also partly offset by credit-quality changes. Of the loan allowance, $19.705 billion was collectively evaluated, $362 million individually evaluated, and $24 million related to purchased credit-deteriorated (PCD) loans. Newly acquired PCD assets had $78 million of initial allowance in 9M 2026 against approximately $120 million par value.

Unfunded commitments and other allowances

ACLUC, recorded in Other liabilities, rose $211 million from year-end to $2.044 billion, reflecting portfolio growth and macroeconomic outlook changes partly offset by assumption refinements. The reserve for Citi’s forward purchase commitment for the additional American Airlines card portfolio was released from unfunded commitments in Q2 and re-established against acquired loans. The allowance on held-to-maturity debt securities was $123 million at September 30, 2026, compared with $131 million a year earlier.

Goodwill

Citi’s goodwill was $19.072B at September 30, 2026, down from $19.098B at December 31, 2025; foreign-currency translation was the principal movement.

In Q1 2026, Citi transferred $609M of goodwill from USCC to Wealth as it moved Retail Banking into Wealth and integrated the remaining former USPB businesses into USCC. The realignment prompted an interim impairment test, which found no impairment. A subsequent qualitative assessment through September 30 identified no further impairment indicators. Citi noted that future impairment risk could arise from weaker business performance, higher credit losses or capital requirements, adverse regulatory or legislative changes, deteriorating economic or market conditions, or circumstances related to its strategic refresh.

Intangible assets

During the nine months ended September 30, PCCR increased from $676M to $1.306B, reflecting $738M of acquisitions, renewals and divestitures, less $108M of amortization. The additional PCCR related to an acquired American Airlines co-branded card portfolio and has an approximately 17-year amortization period. Credit card contract-related intangibles ended at $2.584B, after $82M of additions and $90M of amortization.

Deposits

Total deposits rose to $1.505322T at September 30, 2026, from $1.403573T at December 31, 2025.

The U.S. versus non-U.S. classification reflects the domicile of the booking unit, not the depositor’s domicile.

Debt

Short-term borrowings

Short-term borrowings rose $9.640B, or 18.6%, from December 31, 2025. Other borrowings include Federal Home Loan Bank (FHLB) funding.

Long-term debt

Long-term debt increased $29.958B, or 9.5%. The increase reflected higher bank and broker-dealer and other debt, partly offset by a decline in parent-company debt. Collateralized long-term FHLB advances within bank debt rose substantially.

Trust preferred securities and related debt

Long-term debt includes junior subordinated debentures associated with trust preferred securities. The debentures’ balance-sheet carrying value was $1.6B at both dates. At September 30, 2026, the securities had a $2.440B liquidation value and the related debentures had a $2.446B notional value; the difference from carrying value primarily reflects unamortized discount and issuance costs. Capital III securities have a 7.625% coupon. Capital XIII securities have a floating coupon of three-month SOFR plus 663.161 basis points, including a 26.161-basis-point tenor adjustment, exposing them to benchmark-rate changes.

¹ Included in other short-term borrowings.
² Includes certain consolidated hedging activities.
³ Included in bank debt.

Accumulated other comprehensive income (AOCI)

Citigroup’s after-tax AOCI deficit narrowed to $41.438 billion at September 30, 2026, from $44.170 billion a year earlier. The 2026 balance comprised a $48.290 billion pretax loss and a $6.852 billion tax effect; the comparable 2025 amounts were a $50.478 billion pretax loss and a $6.308 billion tax effect.

The 9M 2026 improvement was substantially smaller than in 9M 2025: gains in CTA, DVA and benefit plans were partly offset by losses in debt securities and cash flow hedges. In Q3, debt securities and cash flow hedges drove the decline, partly offset by improved DVA and benefit-plan movements.

AOCI balances and company actions

Beginning AOCI was -$41.897 billion at December 31, 2025, compared with -$47.852 billion at December 31, 2024. Banamex equity sales produced a $2.337 billion net AOCI increase in 9M 2026, including +$2.128 billion from CTA and +$237 million from benefit plans; the sale-related Q3 change was +$135 million. The AO Citibank sale, which closed in Q1 2026, released a $1.6 billion CTA loss, net of hedges, from AOCI. CTA primarily reflects foreign-currency movements, related taxes and hedges; accumulated CTA generally remains in AOCI until a foreign entity is sold or substantially liquidated.

The long-duration insurance AOCI component relates to future policyholder benefits. Its related liability was $547 million at September 30, 2026, versus $491 million a year earlier. No interim pension or postretirement plan remeasurement occurred in either Q3 2026 or Q3 2025.

Amounts reclassified from AOCI to earnings

Q3 2026 total reclassifications were +$24 million pretax, with $8 million of tax expense. For 9M 2026, they were -$70 million pretax, with a $9 million tax benefit. Noncontrolling-interest AOCI changes, excluded from the company table, were -$290 million in Q3 2026 and -$198 million in 9M 2026, compared with +$5 million and +$112 million, respectively, in the comparable 2025 periods.

Preferred stock

Citi’s preferred stock carrying value was $18.05B at September 30, 2026, down from $20.05B at December 31, 2025. The $2.00B net decrease reflects the full redemption of Series T ($1.50B) and Series X ($2.30B), partly offset by the issuance of Series II ($0.80B) and Series JJ ($1.00B).

Series X ($2.30B) was redeemed in full on February 18, 2026, and Series T ($1.50B) on August 15, 2026. Most issues consist of depositary shares representing 1/25th of a preferred share, redeemable at $1,000 per depositary share. Series II instead comprises 32 million depositary shares, each representing 1/1,000th of a preferred share and redeemable at $25.

The preferred securities are non-cumulative and perpetual. Dividends are payable quarterly only if declared by Citi’s board. Most series pay fixed-rate dividends until a specified reset date, then reset periodically to a Treasury benchmark plus a stated spread: the five-year Treasury benchmark applies to Series Y, Z, AA, BB, CC, EE, FF, GG, HH and JJ, with spreads ranging from 2.572% to 3.211%. Series DD resets every 10 years to the 10-year Treasury rate plus 2.757%. Series II pays a fixed rate.

VIE and SPE exposure

Citi’s total involvement with SPE assets increased to $833.126B at September 30, 2026, from $665.896B at December 31, 2025. The increase was concentrated in significant unconsolidated VIEs; assets in consolidated VIEs declined.

Funding commitments were loan and equity commitments; Citi had no liquidity-facility commitments in either period.

Asset-based financing accounted for most of the increase in unconsolidated VIE exposure: assets rose to $529.751B from $383.245B, and maximum exposure to loss rose to $117.159B from $81.953B.

Included third-party-sponsored private-equity-fund loans represented $165.7B of unconsolidated VIE assets and $2.0B of maximum exposure, compared with $138.7B and $1.7B, respectively. Separately, excluded third-party-sponsored fund credit facilities had maximum exposure of $9.9B, versus $9.2B.

Consolidated VIEs and balance-sheet interests

Consolidated VIE assets are ring-fenced for settling the VIEs’ obligations. Liabilities shown below are without recourse to Citi’s general credit.

Significant unconsolidated VIE interests classified on Citi’s balance sheet totaled $95.0B, versus $76.9B:

Securitization activity

Credit-card trust ownership interests in principal receivables declined to $22.6B from $28.6B. Citi issued no new credit-card securitizations in Q3 or 9M 2026. Nine-month paydowns of maturing notes were $0.9B, compared with $0.4B in 9M 2025.

Mortgage securitizations increased particularly for non-agency mortgages. Amounts below are principal securitized / proceeds from new securitizations.

Non-agency securitization gains were $91.7M in Q3 2026, versus $69.2M, and $231.1M in 9M 2026, versus $164.8M. At September 30, retained mortgage interests were $960M for agency mortgages and, for non-agency mortgages, $949M senior and $1.149B subordinated. Non-agency securitized assets were $67.8B, up from $63.1B; residential loans 90 days delinquent remained $0.3B. Nine-month residential liquidation losses increased to $2.1B from $0.1B, although Q3 produced liquidation gains of $0.1B, compared with $1.2B in Q3 2025.

Consumer-loan securitization gains were $11.9M in Q3 and $26.1M in 9M 2026, versus $2.1M and $2.7M, respectively, in 2025.

Other funding exposures and servicing

Citi-administered ABCP conduits held $23.4B of purchased assets and had $14.8B of unfunded commitments at September 30, 2026, compared with $19.2B and $17.5B at year-end 2025. Citi held $10.4B of conduit-issued commercial paper, up from $9.2B, and provided $2.3B of letters of credit, up from $2.0B. If defaulted assets exceed credit enhancements, losses are allocated first to Citi. Consolidated TOB trusts had $4.2B of putable floaters in short-term borrowings, versus $2.9B. Agency mortgage re-securitization transfers were $29.1B fair value in 9M 2026, versus $24.1B in 9M 2025; retained interests were $3.5B fair value, compared with $2.6B at year-end 2025.

Citi retained mortgage servicing rights (MSRs) and oversees a third-party subservicer. Failure to meet contractual servicing standards could result in termination of the rights and future fees. MSRs related to $60B of mortgage principal at September 30, 2026, versus $58B a year earlier. MSR fees were $37M in Q3 and $111M in 9M 2026, compared with $38M and $114M, respectively, in 2025.

Derivative positions and fair values

Derivative notionals rose between December 31, 2025 and September 30, 2026. Notionals are reference amounts—not measures of actual exposure—and do not net offsetting trades; changes can reflect client activity, market share and other normal business factors.

Gross derivative fair values increased to $563.979B of assets and $543.697B of liabilities from $489.313B and $485.251B, respectively. After enforceable netting agreements and cash collateral, amounts included on the balance sheet were $72.864B of assets and $68.244B of liabilities, versus $55.434B and $58.214B. Including additional collateral subject to enforceable master netting agreements but not offset on the balance sheet, total net receivables/payables were $63.251B of assets and $62.598B of liabilities, versus $49.024B and $53.770B. These net amounts include fair values not subject to enforceable master netting agreements—approximately $10B of derivative assets and $17B of liabilities at September 30, 2026.

Credit derivatives and contingent collateral

Credit derivative fair values were $13.091B receivable and $10.341B payable at September 30, 2026, compared with $9.723B and $11.232B at year-end. Purchased protection does not eliminate credit risk; Citi remains exposed to counterparty and market risks.

Derivatives with credit-related contingent terms in a net liability position had $14B fair value, excluding CVA, with $12B of collateral posted at September 30, 2026; at December 31, 2025, the respective amounts were $16B and $13B. A one-notch downgrade by all three major rating agencies, assuming September 30 conditions, could require an additional $0.3B of collateral or settlement.

Hedge results and basis adjustments

Fair-value hedge derivative results were substantially offset by changes in the hedged items:

Citi early adopted ASU 2026-02 on environmental credits effective January 1, 2026; the filing notes an impact on 9M 2026 commodity fair-value hedge results.

Fair-value hedge basis adjustments shifted materially to negative balances by September 30, 2026:

These adjustments affect carrying values and reverse through future earnings.

Cash-flow hedges generated a pretax AOCI loss of $1.137B in Q3 2026, versus a $44M gain in Q3 2025; for 9M, the loss was $1.816B in 2026, versus a $140M gain in 2025. Citi expected approximately $0.8B of net cash-flow-hedge losses to be reclassified from AOCI within 12 months; the maximum hedge horizon for forecasted cash flows was 12 years.

Net-investment hedge pretax CTA losses were $268M in Q3 2026 and $327M in 9M 2026, compared with a $161M gain in Q3 2025 and a $2.302B loss in 9M 2025. The 2026 figures included $35M and $564M, respectively, reclassified to noncontrolling interests.

Transferred assets with retained exposure

Citi accounted for sales of assets while retaining substantially all economic exposure through outstanding total return swaps with the same counterparties.

Although the transfers were accounted for as sales, the retained exposure and swap positions left Citi economically exposed to the transferred assets.

Recurring fair-value measurements

At September 30, 2026, Citi’s recurring fair-value assets and liabilities were higher than at December 31, 2025. Derivative netting and collateral offsets substantially reduced the gross balances reported on a net basis.

Level 2 measurements remained dominant, though their share declined year over year; Level 3 represented a small share of gross assets and liabilities.

The increase in investment fair value largely reflected U.S. Treasury and federal agency securities, which rose to $78.177B from $35.465B; foreign government securities were $163.324B, compared with $163.107B.

Valuation adjustments and Level 3 exposures

Derivative CVA/FVA adjustments were a net contra-liability (contra-asset) of $837M at September 30, 2026, versus $618M at year-end 2025. The 2026 balance comprised counterparty CVA of $(671)M, asset FVA of $(724)M, own-credit CVA of $347M, and liability FVA of $211M.

The year-over-year improvement was primarily driven by DVA and affected OCI rather than principal-transactions revenue.

Level 3 fair-value assets were $10.921B at September 30, 2026, compared with $10.529B at year-end 2025; liabilities were $35.460B versus $35.172B. Long-term debt was the largest Level 3 liability at $24.155B. Level 3 trading derivatives were presented net at $(2.981)B. Level 3 derivative rollforward gains recorded in principal transactions were $738M in Q3 2026, versus a $(78)M loss in Q3 2025; unrealized gains on derivatives still held were $216M for Q3, but $(492)M for 9M 2026. MSRs rose to $895M from $759M, with unrealized gains recorded in other revenue of $100M in Q3 and $113M in 9M 2026.

The disclosed gross Level 3 derivative valuation population at September 30, 2026 comprised interest-rate contracts of $4.912B, FX contracts of $1.194B, equity contracts of $5.239B, commodity and other contracts of $2.443B, and credit derivatives of $1.434B. These are gross category fair values, not net exposures. Significant unobservable inputs included weighted-average equity volatility of 39.15%, credit spreads of 104.44 bps, and weighted-average recovery rates of 36.11%. The $895M MSR valuation used cash-flow analysis with a weighted-average yield of 6.57%.

Long-term debt transfers reflected changes in the significance of unobservable inputs. In Q3 2026, $0.8B transferred from Level 3 to Level 2 and $0.3B in the opposite direction; for 9M 2026, the respective transfers were $2.7B and $2.0B. Citi cautions that Level 3 positions may be hedged with instruments in other hierarchy levels, so Level 3 rollforward gains and losses do not necessarily include the effects of those offsets. Reliance on unobservable inputs also makes valuations subject to estimation uncertainty.

Nonrecurring fair values and instruments not carried at fair value

Nonrecurring fair-value assets increased to $2.236B at September 30, 2026, from $1.263B at December 31, 2025.

September 2026 loans held for sale included $1.159B of Level 2 and $485M of Level 3 assets; collateral-dependent loans and non-marketable equity securities were Level 3. Loans held for sale are net of mark-to-market amounts on unfunded loan portions.

Q3 2026 included $(28)M on loans held for sale, $(12)M on collateral-dependent loans, and $22M of gains on non-marketable equity securities. The quarter’s improvement was partly due to the equity-security swing from an $8M loss in Q3 2025 to a $22M gain.

Estimated fair values of selected instruments not carried at fair value showed sizable valuation gaps:

HTM securities’ estimated fair value was $14.2B below carrying value, versus a $10.2B discount at year-end 2025. Loans’ estimated fair value was $18.3B above carrying value; loan carrying values were net of allowances of $20.0B and $19.2B, respectively. Corporate unfunded lending commitments had an estimated fair-value liability of $9.9B, down from $10.8B; substantially all was Level 3. Citi does not estimate fair value for consumer unfunded commitments, which are generally cancelable on notice.

Citi fair value elections

Citi elects fair value accounting instrument by instrument for eligible financial instruments; elections generally cannot be revoked. Fair value changes are recorded in current earnings, except own-debt valuation adjustments (DVA), which are recorded in accumulated other comprehensive income (AOCI). Citi has elected fair value accounting for mortgage servicing rights (MSRs), and also uses it for certain structured deposits and trading-related debt positions.

Fair value election gains/(losses)

$ millions; gains/(losses)

Debt-liability fair value changes include DVA; DVA is excluded from earnings and recorded in AOCI, while other fair value changes are reported in earnings. Own-credit DVA on fair-value-option liabilities was a $604 million gain in Q3 2026, versus a $1,293 million loss in Q3 2025; for 9M, it was a $1,033 million gain in 2026, versus a $684 million loss in 2025. Citi estimates DVA using its market-observed credit spreads.

Fair-valued credit products and mortgage loans

Instrument-specific credit-risk fair value gains on these products were $2 million in Q3 2026 versus $7 million in Q3 2025, and $12 million in 9M 2026 versus $24 million in 9M 2025.

Citi recorded no instrument-specific credit-risk fair value change on mortgage loans HFS in the three- or nine-month periods ended September 30, 2026 or 2025. Mortgage-loan fair value changes are reported in Other revenue.

Fair-valued notes and borrowings

Fair-valued notes totaled $148.6 billion at September 30, 2026, compared with $130.7 billion at December 31, 2025.

All non-DVA changes on these notes, including accrued interest, are reported in Principal transactions.

Guarantees and commitments

At September 30, 2026, Citi’s guarantees had maximum potential future payments of $646.3B, down from $649.7B at December 31, 2025; their carrying value was $1.258B, up from $1.213B. Maximum potential payments are based on guarantee notionals, without deducting recoveries or collateral, and are not estimates of expected losses. Citi says the maximum exposures for merchant processing and partner credit-card arrangements, in particular, do not represent likely losses based on historical and expected performance.

For the rated subset of guarantees—standby letters of credit, recourse loans and “other”—maximum potential payments were $94.3B, versus $92.3B. This comprised investment-grade exposure of $70.1B versus $70.0B, non-investment-grade exposure of $23.4B versus $21.4B, and not-rated exposure of $0.8B versus $0.9B. This subset does not cover all guarantee categories.

Most collateral supports securities-lending indemnifications. Other property may also be available, but its value is undetermined. Citi also has an indemnification agreement entered into in Q4 2024 covering specified matters, including existing and potential future legal proceedings and tax matters, connected with businesses operated through other subsidiaries. Some obligations have no stated expiration or maximum-payment limit; Citi cannot estimate maximum payments because the triggering events are unpredictable.

Credit commitments rose to $1,172.556B from $1,097.216B:

The total included $972.567B of U.S. commitments and $199.989B outside the U.S. Other commitments include commitments to purchase certain debt and equity securities. Citi’s Federal Reserve District Bank shares had a carrying value of $4.5B at both dates; the remaining half of the required subscription is subject to call. Unsettled reverse-repurchase and securities-borrowing agreements increased to approximately $290.9B from $189.3B, while unsettled repurchase and securities-lending agreements increased to $246.4B from $186.9B; these amounts are excluded from the credit-commitments table.

Restricted cash and leases

Operating leases primarily cover real estate, including offices and branches, and equipment; their weighted-average remaining term was approximately seven years. Fixed lease costs are recognized straight-line over the lease term, while variable costs are recognized when incurred.

Contingencies

As of September 30, 2026, Citigroup estimated aggregate reasonably possible losses not accrued for disclosed contingency matters of up to approximately $1.1 billion. Under ASC 450, Citi accrues losses when they are probable and reasonably estimable. Actual losses may be substantially higher or lower than accrued amounts and disclosed estimates, which are particularly uncertain.

Based on its current knowledge and existing accruals, management does not believe these matters are likely to materially adversely affect consolidated financial condition. However, adverse outcomes could materially affect results of operations or cash flows in particular quarterly or annual periods.

Significant legal developments

• Greek pension claims: On September 2, 2026, an Athens court dismissed some claims and allowed others to proceed.
• Madoff-related litigation: On October 5, 2026, the U.S. Supreme Court denied the Fairfield liquidators’ petition for certiorari.
• Variable-rate demand obligation litigation: On July 16, 2026, the New Jersey Supreme Court reversed a decision granting defendants summary judgment and remanded the case for further proceedings.

Payments required under the settlement agreements described in the note have been made or are covered by existing litigation or other accruals.

Subsidiary guarantees

Citigroup Inc. fully and unconditionally guarantees payments on debt securities issued by its wholly owned subsidiary, Citigroup Global Markets Holdings Inc. (CGMHI). It also effectively fully and unconditionally guarantees amounts due on trust preferred securities issued by Citigroup Capital III and XIII, subject to the stated available-funds mechanism. No other Citigroup subsidiary guarantees these securities.

Nine months ended September 30, 2026

Balance sheet

CGMHI assets increased 16.7%, while parent assets were essentially flat. CGMHI’s principal balance-sheet movements included:

At the parent, long-term debt declined to $173.867B from $177.855B, while advances to subsidiaries rose to $169.119B from $160.188B.

Q3 2026 equity distributions

Citi spent $3.0 billion on Q3 repurchases under its previously approved $30 billion multiyear share repurchase program. The program had $23.0 billion remaining at September 30, 2026. Cumulative shares purchased under the publicly announced program increased from 31.656 million at July-end to 51.275 million at September-end.

Citi paid a $0.67 per share common dividend in Q3. On October 19, 2026, it declared a $0.67 per share Q4 common dividend and approximately $306 million of preferred stock dividends. Common dividend payments are subject to Citi’s obligations on outstanding preferred stock.

Capital distributions, including repurchases and common dividends, are subject to regulatory capital-buffer limits, including the Stress Capital Buffer; restrictions depend on the extent of any buffer breach. Citi reported no unregistered equity sales during Q3, and no director or executive officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter.

Citi glossary: key definitions and context

The glossary establishes how Citi defines measures used elsewhere in the filing, including the bases for comparing managed and GAAP results, credit quality, capital, liquidity, and business activity.

Reporting basis and performance measures

• Managed basis excludes divestiture-related impacts; Reconciling Items captures those excluded impacts that remain in GAAP results. Divestiture-related impacts include items arising from selling, disposing of, or winding down businesses in Citi’s announced 14 exit markets. Banamex refers to Grupo Financiero Banamex, the legal entity Citi is divesting.
• Net interest income (NII) is interest income less interest expense; net interest revenue (NIR) is total revenue less NII. Revenue on a taxable-equivalent basis adjusts for tax credits and tax-exempt securities to improve comparability with taxable investments. Taxable-equivalent measures and metrics derived from them are non-GAAP; the adjustment is called TEGU.
• The efficiency ratio is operating expenses divided by net revenues. Operating leverage is revenue growth less expense growth. Return on tangible common equity (RoTCE) is net income less preferred dividends divided by average tangible common equity.
• Tangible common equity (TCE) is common stockholders’ equity less goodwill and identifiable intangible assets other than mortgage servicing rights (MSRs). Tangible book value per share (TBVPS) is TCE divided by period-end common shares. Book value per share uses period-end common equity and shares. The total payout ratio is common dividends declared plus common share repurchases as a percentage of net income available to common shareholders.

Credit, capital, liquidity, and risk measures

• Allowance for credit losses (ACL) includes reserves for loans, unfunded lending commitments, held-to-maturity securities, and other assets. The provision for credit losses covers these categories. An ACL “build” is a net increase in the allowance; a “release” is a net decrease.
• Net credit losses (NCL) are gross losses less recoveries. The NCL ratio annualizes net losses and divides by average loans; delinquency measures include loans 90 or more days past due as a share of period-end loans. “Criticized” exposures include special mention, substandard, or doubtful classifications. Non-accrual assets include non-accrual loans and other real estate owned (OREO).
• The Common Equity Tier 1 (CET1) ratio is period-end CET1 capital divided by total risk-weighted assets (RWA). Citi calculates RWA under Basel III Standardized and Advanced Approaches. The stress capital buffer (SCB) is a capital requirement; the supplementary leverage ratio (SLR) is Tier 1 capital divided by total leverage exposure. Total loss-absorbing capacity (TLAC) refers to loss-absorbing resources.
• The liquidity coverage ratio (LCR) is high-quality liquid assets (HQLA) divided by net cash outflows over the prescribed period. Citi’s available liquidity resources include HQLA, additional unencumbered securities, and other assets supporting Federal Home Loan Bank and Federal Reserve discount-window borrowing. This measure also includes excess liquidity at bank entities that cannot be transferred within Citigroup.
• Value at risk (VaR) estimates potential dollar losses from adverse market movements in an ordinary market environment. Basel III’s Standardized Approach applies differentiated risk weights and broader recognition of credit-risk mitigation, with the stated aim of aligning regulatory capital ratios more closely with banks’ economic risks.

Business and operating terminology

• Card spend volume represents gross customer purchases; commercial card spend is net of refunds and returns. Interchange fees are presented net of certain processing fees paid on merchants’ behalf.
• Wealth client investment assets include assets under management and trust and custody assets. Organic growth is based on net new investment assets and excludes market growth.
• Cross-border transaction value covers foreign-exchange payments processed through Citi’s Worldlink and Cross-Border Funds Transfer platforms. U.S. dollar clearing volume counts payment instructions Citi processes for U.S. and foreign entities, primarily financial institutions.
• Wallet estimates Citi’s share of industry investment-banking fees across mergers and acquisitions, equity and debt underwriting, and loan syndications. Transactional and product-servicing costs are primarily variable, volume- or account-driven expenses, including brokerage, exchange and clearance costs, customer-related expenses, and certain indirect non-income-tax payments.
• The glossary defines generative AI, agentic AI, and frontier AI models, as well as digital assets such as tokenized deposits, cryptocurrencies, and stablecoins. These definitions provide terminology but do not themselves describe a specific deployment or investment.

Regulatory and organizational context

Citi and Citibank have been subject to Federal Reserve and OCC consent orders since October 2020 requiring improvements in enterprise-wide risk management, compliance, data-quality governance, and internal controls. In July 2024, the regulators issued civil-money-penalty consent orders addressing shortcomings in remediation efforts, underscoring ongoing execution and regulatory risk.

Citi describes its multiyear transformation as intended to change its business and operating models, strengthen risk management and controls, and improve value for customers, clients, and shareholders. The glossary also defines TTS as Treasury and Trade Solutions, USCC as U.S. Consumer Cards, and SPEs and VIEs as special purpose entities and variable interest entities. It notes that exposures to dependent territories and Special Administrative Regions, including Hong Kong SAR, may be reported separately from associated sovereign states.