Citigroup's (C) strongest revenue quarter in a decade, driven by record markets performance and continued strength in services, backs management's confidence in reaching a 10% to 11% return on tangible common equity in 2026, RBC Capital Markets said Tuesday in a report.
The bank reported Q1 earnings of $3.06 per diluted share, up from $1.96 a year earlier, as revenue rose 14% to $24.6 billion with all major business lines contributing to growth, the report said.
Citigroup's services segment generated $6.1 billion in revenue in Q1, up 17% from a year earlier, as the bank's "crown jewel," RBC said. Markets revenue surpassed $7 billion for the first time, rising 19% to $7.2 billion on broad strength across fixed income and equities, the report said.
Management reiterated confidence in its medium-term financial goals, supported by modest revenue growth and expense discipline, the report said.
RBC raised its price target on Citigroup stock to $139 from $121 and maintained its outperform rating.
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