US bank Citi has announced its Q1 26 results, in which it saw cross-border transaction volume increase 12% YoY, supporting an increase of 14% YoY for total revenues to $24.6bn.
Citi’s cross-border transaction flows reached $106.3bn in Q1 26, with the bank identifying this as a key driver of non-interest revenue within its Treasury and Trade Solutions (TTS) unit, which makes up part of its Services division.
Overall, Services saw revenues increase by 17% YoY to $6.1bn, accounting for 25% of overall revenues – representing a slight increase from 24% in Q1 25. This rise, which is Citi’s best first quarter for Services in a decade, was largely driven by growth in Citi’s TTS and Securities Services and came despite a 14% increase in Services-related operating expenses caused by higher volumes, compensations and technology costs.
TTS overall revenue also increased 17% to $4.6bn, with non-interest income, which comprises the majority of Payments revenue, rising 12% YoY. This increase was driven by higher average deposit balances, with average TTS deposits rising 4% QoQ and 18% YoY to $812bn in Q1 26.
During Citi’s latest earnings call, CEO Jane Fraser noted that while ongoing conflict in the Middle East has so far had more of an impact on Asia and Europe than the US, inflation is now “a greater risk to growth” and could cause central banks to implement more restrictive monetary policies.
Fraser also explained that Citi is currently deploying AI at scale to “drive revenues and process improvements, enhance client experiences and strengthen defensive capabilities”, focusing on four key areas the technology could impact. These include how AI could change its overall business model and strategy; how it can simplify complex and “manually-intensive” processes to improve Citi’s operating efficiency; using it to support AML, cybersecurity and general risk management; and exploring potential long-term implications for its talent and workforce.
The bank will now turn its attention to its Investor Day next month, where it plans to share more details about this strategy, as well as its vision for growing its five businesses, alongside other strategic breakdowns.
