Citi Sets RoTCE Target Above 11%, Signals Stronger Capital Efficiency
Citigroup Inc. (NYSE:C) expects its return on tangible common equity (RoTCE) to exceed 11% in 2026, signaling improved capital efficiency and profitability. CFO Gonzalo Luchetti also announced plans for increased stock buybacks beyond the $13 billion repurchased in 2025. The bank is accelerating roughly $500 million of investment by year-end into areas like severance and marketing to expand its credit-card and wealth-management businesses. Citi's second-quarter RoTCE reached 13%, up from 8.7% a year earlier, with the first half of 2026 showing an average of 13.1%. The bank also expects to remove Banamex from its balance sheet in 2027, which will result in a $9 billion currency-translation loss but is part of broader restructuring efforts.
Tickers: $C
Topics: buybacks capital efficiency restructuring return on equity