Stock Markets March 10, 2026

Citigroup Says Q1 Investment Banking Fees Are Up Mid-Teens as CEO Reaffirms Profit Goals

Jane Fraser reports mid-teens growth in fees and markets activity and expresses confidence in hitting 10%-11% ROTCE target by end of 2026

By Jordan Park C
Citigroup Says Q1 Investment Banking Fees Are Up Mid-Teens as CEO Reaffirms Profit Goals
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Citigroup CEO Jane Fraser told attendees at an RBC conference that the bank’s investment banking fees and markets business are tracking mid-teens percentage growth year-over-year for the first quarter. Fraser reiterated confidence in reaching a 10% to 11% return on tangible common equity by the end of 2026, described the global economy as "just fine," and downplayed recent private credit turmoil as non-systemic while noting isolated heavy losses among some hedge funds in rates. She also warned that a proposed credit card cap under the Trump administration would severely restrict access to credit.

Key Points

  • Citigroup's investment banking fees are tracking a mid-teens percentage increase year-over-year for the first quarter, indicating stronger advisory and underwriting activity in that period - sectors impacted include investment banking and corporate finance.
  • The bank's markets business is also tracking mid-teens percent growth year-over-year for the first quarter, pointing to improved performance in trading and markets services - sectors impacted include institutional markets and trading desks.
  • CEO Jane Fraser reaffirmed confidence in reaching a 10% to 11% return on tangible common equity by the end of 2026, tying current fee and markets momentum to the bank's broader profitability objective - this has implications for investor expectations and equity valuation.

Citigroup Inc reported early signs of improvement in fee-related businesses for the opening quarter, according to comments from CEO Jane Fraser at an RBC conference on Tuesday. Fraser said the bank’s investment banking fees are tracking a mid-teens percentage increase compared with the same quarter a year earlier.

Alongside investment banking, Fraser indicated that Citigroup’s markets business is also on track to record mid-teens percentage growth year-over-year for the first quarter. Those remarks suggest stronger activity in fee-generating operations across dealmaking and market services, as presented by the CEO at the industry event.

Fraser reiterated the bank’s public profitability objective, saying she feels good about Citigroup achieving a 10% to 11% return on tangible common equity (ROTCE) by the end of 2026. The statement framed the fee momentum and markets performance as consistent with progress toward that multi-year target.

On broader economic conditions, Fraser described the underlying global economy as doing "just fine." She also addressed recent stress events in specific corners of finance, noting that a few hedge funds have experienced hefty losses in rates. While acknowledging those concentrated losses, Fraser characterized recent private credit turmoil as not posing a systemic problem.

Fraser further weighed in on proposed regulatory changes affecting consumer lending, warning that a Trump administration credit card cap would "crush" access to credit. The CEO's comment framed the proposal as having materially adverse implications for credit availability.

The CEO’s remarks at the conference touched on revenue trends, balance-sheet targets and regulatory developments, while emphasizing that isolated losses in certain market participants do not, in her view, indicate a widespread threat to financial stability.


Contextual note: The statements above reflect the CEO’s descriptions of current fee pacing, markets activity, profitability targets and her assessment of selected credit market dislocations.

Risks

  • A small number of hedge funds have suffered hefty losses in rates, representing concentrated market risk within fixed-income and rates trading - this could affect counterparties and trading flow in markets.
  • Recent private credit turmoil exists, and while the CEO characterized it as not systemic, such dislocation remains an uncertainty for credit markets and lenders.
  • Proposed regulatory action in the form of a credit card cap under the Trump administration, which the CEO said would "crush" access to credit, presents policy risk that could materially affect consumer lending availability and bank credit-card businesses.

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