Citigroup (C) shares rose Tuesday after the bank reported stronger-than-expected second-quarter results, with growth across nearly every part of the business. The stock was up 1.47% at $142.78, approaching its 52-week high of $147.96.

Revenue, net of interest expense, came in at $24.77 billion, up 14% from a year ago and well above the $23.74 billion analysts had expected. Excluding currency swings, revenue grew 13%. Net income jumped 45% to $5.83 billion, and earnings per share of $3.15 topped every single one of the 20 analyst forecasts tracked by Bloomberg.

Net interest income rose 13%, helped by growth across all five of Citi's businesses and its Legacy Franchises. Non-interest revenue increased 18%, driven by gains in Banking, Services, Wealth, and All Other, though U.S. Consumer Cards and Markets saw some declines.

Operating expenses ticked up 5% to $14.2 billion, but the efficiency ratio — a measure of how much it costs to generate revenue — improved sharply, dropping about 530 basis points to 57.4% from 62.7% a year earlier. Return on average tangible common equity, a key profitability metric, rose to 13.0%.

The bank's Common Equity Tier 1 capital ratio stood at 12.8%, comfortably above the regulatory requirement of 11.6%. The cost of credit fell 12% to $2.5 billion, reflecting $2.4 billion in net credit losses and a $118 million build in the allowance for credit losses, driven by portfolio growth and changes in macroeconomic assumptions.

Segment performance was broadly strong. Services revenue rose 18% to $6.4 billion, while Markets revenue increased 17% to $7.0 billion. Banking revenue climbed 34% to $1.9 billion, with investment banking revenue surging 44% to $1.5 billion — its best quarter since 2021. Wealth revenue grew 13% to $3.2 billion, and U.S. consumer cards revenue edged up 1% to $4.5 billion. The "all other" category added $1.7 billion, up 1%.

Looking ahead, Citi reaffirmed its 2026 outlook, expecting net interest income excluding markets to rise 5% to 6%, and branded cards' net credit losses to land between 4.0% and 4.5%.

On the earnings call, CFO Gonzalo Luchetti told analysts that Citi has been late to investing in equities and still has work to do to expand that business, according to Bloomberg. He said the effort will take time, even after equities trading revenue jumped 45% to $2.3 billion, beating analyst estimates. Citi's equities growth still trails larger rivals like JPMorgan Chase and Goldman Sachs.

CEO Jane Fraser's turnaround plan is gaining traction. Citi posted a 13% return on tangible common equity in the second quarter, beating the 11.3% analysts had expected. Fraser told investors in May that the bank aims to lift that measure to about 14% to 15% by 2031. Four of Citi's five main divisions — banking, services, markets, and wealth — beat estimates, and investment bankers delivered their strongest revenue since 2021, helped by a pickup in dealmaking across the industry.