Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.

Citigroup looks like a large and profitable bank with a strong asset base, but without a clear catalyst for aggressive revaluation. Revenue, net income, and operating profit are growing year over year, which supports the valuation and indicates an improvement in business quality. At the same time, ROE of 7.7%, ROA of 0.6%, and ROI of 3.09% remain noticeably below industry medians, so capital and asset efficiency are still weaker than those of a typical competitor. Net profit margin of 8.57% and operating margin of 12.76% are also below the sector median, although the year-over-year trend is improving, which softens the negative. The multiples picture is mixed: P/E is above the industry median, which limits upside in the valuation, while P/S and P/B are below the median and look like an argument for moderate undervaluation. P/FCF is zero, making this metric largely uninformative and providing no additional support for the model. The debt burden looks sensitive: debt/equity is significantly above the industry median, and long-term debt remains large, so the risk profile is not ideal. Liquidity on the current ratio is slightly better than the median, but the quick ratio is zero, which for a bank reflects the specifics of the balance sheet and does not fully eliminate concerns about the quality of the liquidity cushion. Dividend yield has declined from previous periods, so the dividend factor is now more neutral-to-negative than supportive. Equity and assets are large, and the balance sheet remains one of the company’s main strengths in terms of scale and resilience. Overall, the fundamentals support the current valuation more than they justify a meaningful increase in the target price. Given moderately weak profitability, elevated leverage, and a not particularly cheap P/E, any adjustment should be cautious and limited in size. For an investor, this is a story of a high-quality large bank with improving earnings, but still without enough efficiency to justify a more optimistic re-rating.

Citigroup, Inc.

Сильный индекс, значительно вырос. Быки резко укрепили уверенность в своих позициях.

Strong index, significantly up. Bulls sharply strengthened confidence in their positions.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Сильный индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Strong index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

Citigroup is growing in earnings and revenue, but profitability and efficiency are below the industry average, while leverage and the P/E ratio limit the potential for a revaluation.

Key Points
Last week, the odds of a rate hike stood close to 50%.
The chances of a rate hike spiked sharply after August inflation data was released.
Something strange is currently happening with interest rates and inflation.
The United States Federal Funds Rate -- essentially the price banks charge each other to borrow money overnight -- currently sits at 3.75%. The rate has remained at 3.75% throughout 2026.
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For much of 2023 and 2024, the Fed Funds Rate was pegged at 5.5% to battle stubbornly high inflation. As inflation fears eased, the rate was gradually lowered to today's 3.75% level.
Despite a low and stable Fed Funds Rate, however, mortgage interest rates have begun to climb. According to the Wall Street Journal, average U.S. mortgage rates have climbed to a 15-month high of nearly 7%. Treasury yields, meanwhile, are approaching multi-year highs.
On Sept. 11, we also learned that August inflation numbers continued to rise. The Consumer Price Index (CPI) rose by 0.4% for the month, an annual rate of 3.4%. That figure doesn't even include fuel or gas price inflation, both of which have recently outpaced the top-line CPI figure.
"America still has an inflation problem," the chief economist at Navy Federal Credit Union warns.
Will the Federal Reserve raise rates next week to combat the uptick in inflation? Right now, there seems to be a mismatch between what inflation, mortgage rates, and treasury yields are telling us versus the Fed Funds Rate.
Here's what analysts and betting markets are predicting.
The odds of a rate hike have spiked sharply
Wall Street experts are attributing a lot of importance to August's inflation numbers. "The fate of the September meeting lies with August CPI," Citigroup (NYSE:C) economists stressed. Even before August figures were released, the bank cautioned clients that "there's a bit more risk of a September rate hike than markets are accounting for."
Citigroup had previously called for rate cuts in October and December, followed by another rate cut in January of next year. Last week, the bank abandoned those predictions. Betting markets were a little slower to react.
Image source: Getty Images
On Sept. 10, certain betting markets were pricing in a roughly 50-50 chance of either a rate hike or no action. After August's inflation report went public, the odds of a rate hike spiked above 80%. No change in rates garners an 18% probability, with a rate cut projected to have less than 1% odds.
"The upside surprise to core CPI in August means the Fed looks set to hike next week," concludes Stephen Brown, an economist at Capital Economics.
How should investors react? Citigroup stresses that a rate hike "wouldn't be the worst thing" for stocks. The bank doesn't believe a rate hike would indicate a structural environment where rate hikes become the norm. A rate hike could even deliver a "bullish shock" to markets, the bank says, as it could anchor long-term yields and ease market uncertainty over the uptick in inflation.
Regardless of what happens, the vast majority of investors are likely best off maintaining a long-term investment horizon. Over the decades, interest rates have risen and fallen dramatically many times. Inflation, too, has ebbed and flowed. Patient investors who held through these periods of volatility have largely come out as victors versus traders attempting to continually time the market.
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Inflation Stays Stubbornly High in August. Here's How Likely a Fed Rate Hike Is Next Week

Market pricing now assigns a 70% probability to a Federal Reserve rate hike at next week's meeting, a shift triggered by August's producer price index climbing 0.4% and pushing the annual wholesale inflation rate to 5.4%, according to CME Group's FedWatch gauge. Traders also nudged the odds of a second increase before year-end to nearly 60% (as cited in CNBC).
As an immediate consequence of this, the current spotlight is on banking stocks and the exchange-traded funds (ETFs) that hold them, as investors recalibrate expectations for net interest margins, loan demand and credit conditions.
However, before discussing those ETFs, understanding the broader macroeconomic picture beyond the single rate decision is essential for making informed portfolio allocation decisions.
What a Rate Hike Means for Banks and the Broader Landscape
The sticky inflation dynamics in America are primarily driving the rate hike narrative.
Meanwhile, U.S. crude oil jumped past $100 a barrel amid prolonged Middle East hostilities with Iran. This, in turn, has prompted the European Central Bank to raise rates recently and revise its inflation forecast higher.
Against this backdrop, Fed chairman Kevin Warsh recently emphasized that the personal consumption expenditures (PCE) index, showing core inflation at 3.3% and headline at 3.7% in July, remains the central bank's official yardstick.
Bank of America economist Stephen Juneau estimates core PCE is tracking at a 0.26% monthly rate, which would round up to 0.3% — enough, in his view, to greenlight a hike.
For banks, the transmission mechanism is nuanced. Higher rates typically expand net interest margins as lenders charge more on loans while keeping deposit costs contained. But, they also pressure borrowers, potentially increasing loan delinquencies and slowing mortgage origination.
Prominent names likely to feel these crosscurrents include JPMorgan Chase JPM, Bank of America BAC, Wells Fargo WFC and Citigroup C, each carrying distinct sensitivities to rate movements based on their business mix.
Why Bank ETFs Are in the Spotlight
Banking ETFs provide a focused way to gain exposure to the interest-rate environment while reducing single-stock idiosyncratic risk.
After all, the sector's fortunes are directly tethered to the Fed's policy path: rate hikes can boost profitability through wider spreads, but if inflation remains entrenched and forces the central bank into aggressive tightening, the resulting economic slowdown could impair loan books. Amid this uncertainty — with Friday's consumer price index reading still pending and oil markets volatile — bank ETFs provide diversified exposure to an industry whose earnings are closely tied to the macroeconomic variables currently in flux.
Against this backdrop, for investors seeking to position around next week's decision without picking individual winners and losers may want to consider banking funds.
Bank ETFs in Spotlight
Considering the aforementioned discussion, the spotlight now turns to the following banking ETFs:
Invesco KBW Bank ETF KBWB
This fund, with a market value of $6.85 billion, offers exposure to 26 companies primarily engaged in U.S. banking activities. BAC holds the first spot in this fund, with an 8.81% weightage, while JPM holds the second spot with 8.54% weightage. WFC holds the third spot in this fund, with an 8.34% weightage, while C holds the 10th spot with 3.98% weightage.
KBWB has rallied 14.2% year to date and charges 35 bps in fees. It traded at a good volume of 1.63 million shares in the last trading session.
State Street SPDR S&P Bank ETF KBE
This fund, with AUM of $1.56 billion, offers exposure to 102 Asset Management & Custody Banks, Diversified Banks, Regional Banks, Diversified Financial Services, and Commercial & Residential Mortgage Finance companies. Jackson Financial holds the first spot in this fund, with a 1.23% weightage, while BAC holds the 10th spot with 1.09% weightage.
KBE has gained 12% year to date and charges 35 bps in fees. It traded at a good volume of 1.27 million shares in the last trading session.
State Street SPDR S&P Regional Banking ETF KRE
This fund, with AUM of $4.30 billion, offers exposure to 158 regional banks. Cullen/Frost Bankers, Inc. holds the first spot in this fund, with a 1.48% weightage.
KRE has risen 13.9% year to date and charges 35 bps in fees. It traded at a good volume of 10.24 million shares in the last trading session.
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This article originally published on Zacks Investment Research (zacks.com).

Bank ETFs in Spotlight as Next Week's Fed Rate Hike Odds Hit 70%

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Citigroup Inc (Symbol: C), where a total of 35,464 contracts have traded so far, representing approximately 3.5 million underlying shares. That amounts to about 42.5% of C's average daily trading volume over the past month of 8.3 million shares. Particularly high volume was seen for the $143 strike call option expiring September 18, 2026, with 2,895 contracts trading so far today, representing approximately 289,500 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $143 strike highlighted in orange:
Quanta Services, Inc. (Symbol: PWR) saw options trading volume of 4,247 contracts, representing approximately 424,700 underlying shares or approximately 41.4% of PWR's average daily trading volume over the past month, of 1.0 million shares. Particularly high volume was seen for the $760 strike put option expiring December 18, 2026, with 2,861 contracts trading so far today, representing approximately 286,100 underlying shares of PWR. Below is a chart showing PWR's trailing twelve month trading history, with the $760 strike highlighted in orange:
And McDonald's Corp (Symbol: MCD) options are showing a volume of 17,296 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 40.9% of MCD's average daily trading volume over the past month, of 4.2 million shares. Especially high volume was seen for the $255 strike call option expiring September 18, 2026, with 997 contracts trading so far today, representing approximately 99,700 underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $255 strike highlighted in orange:
For the various different available expirations for C options, PWR options, or MCD options, visit StockOptionsChannel.com.
Further C Research:

Notable Friday Option Activity: C, PWR, MCD

HSBC Holdings plc HSBC is winding down its transaction services business in Germany, with approximately 320 positions expected to be phased out by 2028. The move is part of the bank’s broader simplification strategy to reduce exposure to lower-priority operations and redirect resources toward core franchises and higher-growth markets.
HSBC Streamlines Germany Operations to Improve Efficiency
Approximately 300 positions at HSBC Transaction Services GmbH and 20 at HSBC Service Company Germany GmbH will be affected. The transaction services business provides securities processing, administration, and custody services.
The current restructuring follows HSBC’s earlier exit from other businesses in Germany. The bank sold its German private banking business to BNP Paribas in 2024 and agreed to carve out its custody and fund administration businesses. These actions reduced the domestic processing volumes supporting the German transaction-services infrastructure.
The Germany wind-down is part of HSBC’s wider simplification program. By the first half of 2026, the bank had actioned $1.7 billion of annualized savings, with $1.4 billion of restructuring costs incurred. The company has raised its end-2026 annualized savings target to approximately $2 billion while maintaining its original $1.8 billion restructuring cost budget.
Simplification Savings & Restructuring Cost Trajectory
Image Source: HSBC Holdings plc
Over the medium term, management expects to reallocate approximately $1.8 billion of savings from non-strategic operations toward higher-returning businesses. This includes around $0.3 billion of cost synergies realized from the privatization of Hang Seng Bank.
HSBC Redirects Resources Toward Core Growth Businesses
The Germany exit does not signal a retreat from transaction banking. HSBC continues to invest in its global Wholesale Transaction Banking (WTB) franchise, which includes Global Payments Solutions, Global Trade Solutions, Securities Services and foreign exchange.
WTB fee and other income increased 4% year over year on a constant-currency basis to $6.1 billion in the first half of 2026.
WTB Fee & Other Income by Product Stream
Image Source: HSBC Holdings plc
Our Take on HSBC’s Business Simplification Plan
The Germany transaction-services wind-down is a positive step in HSBC’s portfolio optimization strategy. While the immediate financial benefit is difficult to quantify because it has not separately disclosed restructuring costs or savings from the Germany exit, the broader simplification program is already generating meaningful savings.
HSBC is combining cost discipline with investment in high-growth businesses, particularly the Asia region. The bank is expanding its Asian wealth business, targeting high- and ultra-high-net-worth clients. In China, it is growing through wealth centers, Citigroup’s retail wealth acquisition, digital upgrades and hiring. In India, HSBC is adding 20 branches and expanding Premier Banking. It has launched Global Private Banking and completed the buyout of L&T Investment Management.
These actions suggest that the resources freed through portfolio simplification are being directed toward franchises with stronger growth and return potential. HSBC continues to target annualized RoTE of at least 17% through 2026-2028 and constant-currency revenue growth of 5% by 2028.
Over the past year, shares of HSBC have soared 50%, outperforming the industry's rally of 32.5%.
One-Year Price Performance
At present, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Global Banks
Citigroup Inc. C is reshaping its China operations around institutional banking and capital markets, following the sale of its China consumer banking business to HSBC in 2024. The proposed wholly owned brokerage platform (approval likely coming later this month) would provide A-share brokerage, underwriting, research, and principal trading capabilities. This is aimed at deepening existing client relationships and capturing a larger share of domestic financial activity.
The China brokerage expansion also supports Citigroup’s OneCiti strategy of increasing wallet share across client relationships. By combining corporate banking, cash management, trade finance and securities services, the bank can offer a broader range of products to institutional clients.
The Goldman Sachs Group, Inc. GS has been restructuring its business mix toward higher-growth, capital-light businesses, with the Asset & Wealth Management division a key focus. In sync with this, earlier this week, the company announced a strategic collaboration with IG Wealth Management to expand its presence in Canada’s wealth management market.
Additionally, Goldman has expanded its investment management capabilities through the acquisition of Innovator Capital Management, while agreeing to acquire NEOS Investments and LCN Capital Partners. These moves broaden the company’s ETF, alternatives, and real estate capabilities and strengthen its ability to attract third-party assets.
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Can HSBC's Germany Pullback Support Profitability and Efficiency?

JPMorgan’s JPM move to expand corporate banking into Greece adds another leg to its broader European growth strategy. By targeting large and mid-sized companies with lending, financing, hedging and investment banking (IB) services, the bank is positioning itself to deepen client relationships and capture a larger share of the corporate wallet.
The expansion also builds on JPMorgan’s recent investment in the region, including a 25% increase in global corporate banking staff across Europe, the Middle East and Africa over the past two years, underscoring its focus on gaining scale and market share across EMEA.
The Greece expansion could strengthen JPMorgan’s revenue opportunity by widening its corporate client base and creating more scope for cross-selling. Beyond traditional lending, the bank can deepen relationships through treasury, payments, liquidity management, risk solutions and IB services. That broader product mix should help JPMorgan generate both net interest income and fee revenues from the same corporate relationships, supporting more diversified growth over time.
JPMorgan has been building its Greek franchise for several years. In 2022, it announced plans for a new Athens office and a Payments Innovation Lab, initially targeting around 50 hires focused on payments technology, distributed-ledger technology, artificial intelligence and cryptography. The bank’s presence in Greece dates back to 1968, and it already provides IB, payments and asset-management services to Greek clients. Separately, JPMorgan consolidated much of its European Union client-facing operations into J.P. Morgan SE in 2022, creating a more scalable structure for serving customers across the region.
For JPMorgan, Greece alone is unlikely to materially impact near-term results, given the bank’s enormous global scale. However, the expansion is strategically positive. Adding corporate relationships in a growing economy can support loan balances, payments activity, advisory fees and capital-markets revenues over time, while JPMorgan’s existing European infrastructure should provide operating leverage as the business scales.
Expansion Efforts by JPMorgan’s Peers
JPM’s two close peers, Citigroup C and Bank of America BAC, have also been strengthening their international corporate-banking capabilities in ways that echo JPMorgan’s broader EMEA push.
Citigroup continues to lean on its global network to deepen relationships with multinational and institutional clients. In 2025, Citigroup expanded its Token Services platform to Dublin and added euro-denominated transactions, improving 24/7 cross-border liquidity and payment capabilities for corporate clients. More recently, the bank strengthened leadership across its Middle East and Africa franchise, where it operates across 59 markets, reinforcing its focus on cross-border banking, client connectivity and regional growth.
Bank of America has likewise been investing in its global corporate-banking platform, particularly through payments and treasury services. In June 2026, the bank announced plans to launch a cross-border real-time payments solution for corporate, commercial and financial-institution clients, extending the capabilities of its CashPro platform. The effort complements Bank of America’s already strong European corporate-banking franchise and could help it capture more payment flows, deepen client engagement and support fee growth.
JPMorgan’s Price Performance, Valuation & Estimates
Over the past six months, JPM shares have gained 25% compared with the industry’s 27.2% growth.
From a valuation standpoint, JPMorgan trades at a 12-month trailing price-to-tangible book (P/TB) of 3.29X, slightly below the industry average.
The Zacks Consensus Estimate for JPMorgan's 2026 earnings suggests a 22.7% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 0.3%. In the past 30 days, earnings estimates for 2026 and 2027 have moved upward to $24.95 and $25.04, respectively.
Currently, JPMorgan carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

Can Greece Add Another Growth Lever for JPMorgan in Europe?

U.S. Bancorp USB announced a quarterly cash dividend of 54 cents per share, reflecting a 3.8% increase from the previous payout. The dividend will be paid on Oct. 15, 2026, to shareholders of record as of Sept. 30.
The latest increase follows the successful completion of the Federal Reserve’s 2026 stress test. Previously, USB raised its dividend by 4% to 52 cents per share in September 2025. The latest hike marks the company’s sixth dividend increase in the past five years, representing an annualized growth rate of 2.8% and highlighting its consistent track record of returning capital to shareholders.
Based on yesterday’s closing price of $62.11, USB’s dividend yield stands at 3.4%, above the industry average of 2.6%.
Dividend Yield
Beyond dividends, U.S. Bancorp continues to return capital through share repurchases. In September 2024, the company’s board authorized a $5 billion share repurchase plan. As of June 30, 2026, nearly $3.9 billion remained available under the authorization.
The company’s solid capital position supports its ability to balance these shareholder returns with investments in business growth. Its common equity Tier 1 (CET1) capital ratio stood at 10.8% at the end of the second quarter, above management’s pro forma target of around 10%.
USB is also deploying capital toward businesses that can diversify its revenue base. In June 2026, It completed the acquisition of BTIG, adding institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory capabilities. The transaction strengthens its capital-markets platform and expands its sources of fee-based revenue beyond core banking.
USB’s decent liquidity position further supports its financial flexibility. As of June 30, 2026, cash and due from banks totaled $66.5 billion, while short-term borrowings and long-term debt stood at $37.3 billion and $58.7 billion, respectively. This provides the company with additional capacity to meet funding needs while maintaining its capital allocation priorities.
Looking ahead, management expects to increase share repurchases and gradually move toward a 70%-75% payout ratio. The pace of buybacks will depend on capital needs, loan growth and strategic opportunities, allowing USB to balance shareholder distributions with investments in business growth.
Overall, U.S. Bancorp’s dividend growth, share repurchases and strong capital position reflect a balanced approach to capital allocation. Meanwhile, the BTIG acquisition adds to its growth prospects, supporting the company’s ability to invest in its business while continuing to return capital to shareholders.
How Do Other Banks Compare in Terms of Dividend Payouts?
Similar to USB, other banks, such as Citigroup C and Wells Fargo WFC, also announced dividend hikes after successfully completing the Fed’s 2026 stress test.
Citigroup raised its quarterly common stock dividend by 12% to 67 cents per share and launched a $30-billion share repurchase program. As of June 30, 2026, Citigroup had $26 billion remaining under its share repurchase authorization. Its CET1 ratio stood at 12.8%, about 120 basis points above the regulatory requirement, supporting its ability to continue returning capital to shareholders.
Moreover, Wells Fargo increased its third-quarter 2026 common stock dividend by 11% to 50 cents per share. In April 2025, its board authorized an additional $40 billion share repurchase program, with approximately $22.7 billion remaining under the authorization as of June 30, 2026. Further, Wells Fargo’s CET1 ratio stood at 10.3%, within management’s target range and well above regulatory requirements, supporting its capacity to return capital to shareholders.
USB’s Price Performance and Zacks Rank
Over the past six months, shares of US Bancorp have rallied 18.9% compared with the industry’s growth of 23.9%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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U.S. Bancorp (USB) : Free Stock Analysis Report

U.S. Bancorp Lifts Quarterly Dividend by 3.8%: Can It Keep Up the Pace?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Financials ETF (Symbol: VFH) where we have detected an approximate $279.6 million dollar outflow -- that's a 2.0% decrease week over week (from 97,846,953 to 95,878,424). Among the largest underlying components of VFH, in trading today JPMorgan Chase & Co (Symbol: JPM) is off about 1.3%, Wells Fargo & Co (Symbol: WFC) is down about 1.5%, and Citigroup Inc (Symbol: C) is lower by about 0.8%. For a complete list of holdings, visit the VFH Holdings page » The chart below shows the one year price performance of VFH, versus its 200 day moving average:
Looking at the chart above, VFH's low point in its 52 week range is $116.67 per share, with $143.20 as the 52 week high point — that compares with a last trade of $140.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further VFH Research:

Noteworthy ETF Outflows: VFH, JPM, WFC, C

Citigroup Inc. C is moving closer to establishing a wholly owned brokerage business in China, with final regulatory approval potentially coming in September 2026, according to a Reuters report published on MSN. C applied for the brokerage license in 2021, and in May 2026, the China Securities Regulatory Commission (“CSRC”) completed its review, clearing a major regulatory hurdle. The bank also plans to roughly double the unit’s headcount to about 100 employees by 2026-end through internal transfers and external hiring.
The proposed brokerage platform would expand C’s capabilities in China beyond its existing investment-banking operations, which primarily help Chinese companies access overseas capital markets. Once approved, the securities unit is expected to offer A-share brokerage, underwriting, research and principal trading. These services would give the company greater access to domestic equity and mergers and acquisitions (M&As) activity, creating additional fee opportunities and strengthening its onshore capital markets franchise.
The bank enters this expansion with an established corporate and commercial banking franchise in China. The bank already serves onshore clients through foreign exchange, cash management and trade finance, giving it existing relationships that can be leveraged to introduce securities and capital-markets services. This creates an opportunity to deepen client relationships and capture a larger share of their overall financial activity as domestic markets become a bigger part of C’s China offering.
The expansion also fits Citigroup’s OneCiti strategy of connecting businesses and products to increase wallet share across client relationships. By combining its existing banking capabilities with domestic brokerage and capital-markets services, C could pursue more opportunities across the client lifecycle, from financing and cash management to equity issuance, M&A and securities trading. This could support its broader objective of increasing investment-banking wallet share from 4.7% in 2025 to more than 6% in the near term, a key target outlined at its 2026 Investor Day.
The brokerage push is also consistent with C’s broader repositioning of its China business toward institutional banking and capital markets. The bank sold its China consumer banking business to HSBC Holdings plc HSBC in 2024, allowing it to concentrate resources on institutional clients. Rather than rebuilding its former consumer franchise, the proposed securities platform would deepen C’s institutional presence by adding domestic-market capabilities to its existing corporate and investment-banking relationships. Overall, the China brokerage license could enable Citigroup to deepen existing client relationships, capture a larger share of domestic capital markets activity and unlock new fee opportunities.
How Are Other Firms Positioned in China?
Not only Citigroup, but also other global players like JPMorgan JPM and Goldman Sachs GS have strengthened their presence in China’s securities market through wholly owned onshore platforms.
JPMorgan has built a strong securities presence in China, receiving CSRC approval in August 2021 to fully own J.P. Morgan Securities (China), making it the first foreign bank to fully own a securities venture in the country. JPMorgan’s broader China franchise includes a wholly owned futures business and China International Fund Management, while its strong global investment-banking position is reflected in a 9.3% wallet share in the first half of 2026.
Goldman Sachs has similarly strengthened its China franchise, receiving approval in October 2021 to fully own Goldman Sachs Gao Hua Securities and consolidate its onshore businesses under one entity. The strong global investment-banking franchise of Goldman Sachs further supports this positioning, with investment-banking fees rising 52% year over year to $6.2 billion in the first half of 2026, while its backlog reached a five-year high.
C’s Price Performance & Zacks Rank
Over the past six months, shares of Citigroup have gained 29.2% compared with the industry’s growth of 24.9%.
Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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C Nears China Brokerage License: Can Onshore Expansion Boost Growth?

Key Points
Solana will likely benefit tremendously from the ongoing push toward asset tokenization.
Its bases of stablecoins and tokenized bonds still pale in comparison to Ethereum's.
Other competitors could be problematic too.
Solana (CRYPTO: SOL) will probably be a much bigger network in five years, and it might be a better investment than Ethereum (CRYPTO: ETH), too. However, it'll still need to make major changes to remain competitive by late 2031.
Here's what's likely to happen between now and then.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Tokenization could be the whole ball game
For the uninitiated, tokenization is simply a technical term for recording a real asset's ownership data as a blockchain token, allowing the asset to be managed and traded on a crypto network.
According to a report by the Citi Institute, by 2030, that organization's base case calls for 3% of all U.S. public equities to be tokenized. Citi puts that at $2.6 trillion in tokenized U.S. stocks by 2030. Today, there are only $2.6 billion in tradeable tokenized stocks, so there's very likely to be a tremendous amount of capital onboarding to various blockchains via tokenization over the next handful of years, and capturing only a sliver could be enough to make a coin grow by multiples.
And Solana is currently positioned to capture a lot of that growth, not just a sliver.
As of Sept. 3, the network held $503.1 million in tokenized equities, up from $56.9 million a year prior, and currently has a market share of 19.3% in the segment, up slightly from 18.2% at the same point in 2025. It's a natural home for tokenized trading activity thanks to its rapid transaction settlement times, often on the order of a fraction of a second, and its low transaction costs, typically under a penny.
There's more than one domain of competition
If Solana can continue to onboard more tokenized capital as well as be one of the leading places where tokenized stocks change hands -- its decentralized exchanges saw around 95% of the trading volume of the entire asset class in Q2 of this year, though that proportion has since decreased significantly -- its price will probably be dramatically higher in just a few years.
To become worth more than Ethereum, however, it'll also need to chip away at that network's lead in terms of its base of other tokenized assets as well as its base of parked stablecoins, not to mention fending off other competitors vying for the same pie. Of the $38.6 billion in tokenized assets, on Sept. 3, Ethereum held a 45% share and Solana 10.5%, so there's still a large gap to close.
But a slew of major financial institutions and fintechs, including JPMorgan Chase, Franklin Templeton, VanEck, State Street, PayPal, and Visa, have already launched tokenization initiatives on the chain, and more are likely to follow. So keep an eye on how Solana continues to forge new partnerships with those institutions while expanding its base of tokenized assets, especially stocks.
If Solana can continue to retain even a slightly smaller share of the tokenization market than it has now, by the end of 2031, the coin will be worth a few times what it is today. That's my base case for its future performance. And the upside will be larger if more challenges work out in Solana's favor.
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Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Alex Carchidi has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum, JPMorgan Chase, PayPal, Solana, and Visa. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Where Will Solana Be in 5 Years?

Northern Trust Corporation’s NTRS net interest income (NII) maintained solid momentum in the second quarter of 2026, aided by margin expansion and favorable balance-sheet trends.
On a fully taxable equivalent (FTE) basis, NII increased 11% year over year. FTE net interest margin (NIM) expanded to 1.81% from 1.69% in the year-ago quarter. On a GAAP basis, NII was $675.5 million, while NIM was 1.79%.
Balance-sheet trends also remained supportive. Average earning assets totaled approximately $151 billion in the second quarter, up 4% year over year, although down 2% sequentially. Within the earning-asset mix, average debt securities increased 17% year over year to $61 billion, while average loans rose 1% to $42 billion. Other earning assets increased 15% to $10 billion. These gains were partly offset by a 12% decline in Federal Reserve and other central bank deposits to $38 billion.
Deposit trends were also relatively healthy across Northern Trust’s major businesses. Wealth Management average deposits were $27 billion, up 6% year over year and 1% sequentially. Asset Servicing average deposits totaled $101 billion, increasing 6% year over year despite a 1% sequential decline.
NII growth has been robust on a year-to-date basis as well. Northern Trust’s NII growth improved from 6% in 2023 to 8% in 2024 and 10% in 2025, before reaching 13% in the first six months of 2026.
Will NTRS’ NII Momentum Continue in 2026?
Northern Trust’s improving margin and earning-asset mix indicate that NII momentum could continue through the remainder of 2026. The increase in debt securities and modest loan growth should remain supportive, while the reduction in lower-yielding central bank deposits suggests a more productive deployment of the balance sheet.
Moreover, the company entered the second half of the year from a position of considerable financial strength. Excluding notable items, first-half 2026 revenues increased 13% year over year, while expenses rose just 5%. Earnings per share jumped 40%, resulting in more than 700 basis points of positive operating leverage. Management also highlighted double-digit NII growth as one of the key achievements of its strategy during the first half.
Nevertheless, the trajectory of interest rates, deposit pricing and balance-sheet growth will remain important determinants of NII performance.
Overall, Northern Trust’s 11% year-over-year NII growth, expanding NIM and 13% first-half NII increase provide a solid foundation for continued momentum in 2026.
How Other Banks Expect Their NII to Fare
Wells Fargo WFC and Citigroup C also anticipate their NII to grow in 2026.
Wells Fargo expects NII to be $50 billion. NII, excluding Markets, is projected to be $48 billion, driven by balance-sheet growth, a favorable loan and deposit mix and continued fixed-asset repricing, partially offset by the impacts of expected rate cuts.
Citigroup expects NII (excluding Markets) to increase 5-6% on a year-over-year basis in 2026, supported by stabilizing deposit costs and disciplined balance-sheet management. The outlook reflects the bank’s efforts to benefit from a more favorable rate and funding environment while continuing to reshape its business toward higher-quality growth.
NTRS Price Performance & Zacks Rank
Shares of Northern Trust have jumped 47.3% over the past year compared with the industry’s growth of 32.6%.
Currently, NTRS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Citigroup, Inc.

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