⚠ Advisory Fell in the Best QuarterLow threat

Citigroup (C) — threat to the moat

Citi's deal boom came from underwriting, while its advisers earned less.

1. ReportedCiti said investment banking growth came from debt and equity capital markets, "partially offset by a decline in Advisory".
   Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - Services, Markets and Banking results and key metrics. — Q2 2026 · publ. 14 July 2026 · source ↗
2. ReportedAdvisory revenue was $390 million in the second quarter of 2026.
   Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - Services, Markets and Banking results and key metrics. — Q2 2026 · publ. 14 July 2026 · source ↗
3. ReportedFrom the second quarter of 2026 Citi reports investment banking revenues rather than fees.
   Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - Services, Markets and Banking results and key metrics. — Q2 2026 · publ. 14 July 2026 · source ↗
4. ReportedAdvisory was about 41% of investment banking fees in 2025 and about 25% of investment banking revenue in the second quarter of 2026.
   Citigroup Historical Quarterly Financial Data Supplement 2021-2025 recast to the first-quarter 2026 segments - Markets and Banking: revenue by product and region, investment banking fees, income, capital and returns. — FY2021-FY2025 · publ. 3 April 2026 · source ↗
5. Moat Explorer calcAdvisory was about 41% of investment banking fees in 2025 and about 25% of investment banking revenue in the second quarter of 2026.
   Moat Explorer calculation from Citigroup segment figures ($ millions unless stated; calendar years; segments as restated in the 8-K of 3 April 2026). Services: cross-border transaction value 416.4 / 279.5 - 1 = 49.0%, about half; U.S. dollar clearing 177.1 / 146.2 - 1 = 21.1%; fee revenue 6,385 / 4,967 - 1 = 28.5%, about 29%; net interest income 15,001 / 6,866 = 2.18 times, about 2.2; NII share 15,001 / 22,636 = 66.3%, about 66%; revenue 22,636 / 12,539 - 1 = 80.5%, about 81%; TTS 16,646 / 9,187 - 1 = 81.2%; Securities Services 5,990 / 3,352 - 1 = 78.7%, about 79%; Securities Services revenue over assets under custody 5,990 / 31,400,000 = 0.019%, about 1.9 hundredths of a percent; international share 15,729 / 22,636 = 69.5%, about 69%; share of Citi revenue 22,636 / 85,225 = 26.6%, about 27% (2025), 12,539 / 71,574 = 17.5%, about 18% (2021). Deposits: year-end 1,308,681 / 1,365,954 - 1 = -4.2%, about 4%. U.S. Consumer Cards: revenue 18,258 / 13,209 - 1 = 38.2%, about 38%; net interest income over average loans 20,169 / 170,000 = 11.9%, about 12 cents per dollar; Q2 2026 net credit losses over net interest income 1,850 / 5,180 = 35.7%, about 36%, more than a third; share of Citi revenue 18,258 / 85,225 = 21.4%, about 21%. Markets: rates and currencies 11,749 / 22,409 = 52.4%, about 52%; fixed income 16,745 / 22,409 = 74.7%, about 75%; international 14,020 / 22,409 = 62.6%, about 63%; revenue 18,888 / 20,401 - 1 = -7.4%, about 7%; net income 4,059 / 6,148 - 1 = -34.0%, about a third; revenue 22,409 / 19,108 - 1 = 17.3%, about 17%; share of Citi revenue 22,409 / 85,225 = 26.3%, about 26%. Allocated average TCE 2025 ($bn): Services 33.0 + Markets 53.5 + Banking 9.2 + Wealth 15.4 + U.S. Consumer Cards 20.3 + All Other 39.2 = 170.6; Markets 53.5 / 170.6 = 31.4%, about 31%; All Other 39.2 / 170.6 = 23.0%, about 23%, nearly a quarter. Banking: corporate lending and other 6,384 - 4,618 = 1,766, about $1,766 million; share of Citi revenue 6,384 / 85,225 = 7.5%. Wealth: Citigold and Retail Banking 7,666 / 11,272 = 68.0%, about 68%; Wealth at Work 930 / 11,272 = 8.3%, about 8%; revenue 11,272 / 9,871 - 1 = 14.2%, about 14%; 11,272 / 9,733 - 1 = 15.8%, about 16%; share of Citi revenue 11,272 / 85,225 = 13.2%, about 13%. All Other: revenue on the chart basis 4,442 managed + (176) reconciling items = 4,266 (2025); 9,491 - 670 = 8,821 (2021); 8,841 + 854 = 9,695 (2022); 9,389 + 1,346 = 10,735 (2023); 7,521 + 26 = 7,547 (2024); Corporate/Other 4,442 - 5,512 Legacy Franchises = -1,070, about minus $1,070 million. Further: All Other chart basis 4,266 / 8,821 = 0.48, about half; Banking 2025 income new basis 935 / old basis 2,324 = 0.40, so 60% less, about three-fifths; Mexico consumer and small business 6,500 / 4,539 - 1 = 43.2%, about 43%; U.S. card loans 170 / 409 consumer loans = 41.6%, about two-fifths; card loans excluding the American Airlines purchase (177 - 168 - 6.6) / 168 = 1.4%; Q1 2026 card net credit losses over net interest income 1,742 / 5,116 = 34.0%, about 34%; Q2 2026 equities over fixed income 2,301 / 4,706 = 0.49, about half; investment banking fees 4,618 / 2,713 - 1 = 70.2%, about 70%; Citigold (old basis) 4,953 / 3,803 - 1 = 30.2%, about 30%; net new investment assets first half 2026 15 + 16 = 31 billion; Wealth Q2 2026 efficiency 2,377 / 3,177 = 74.8%, about 75%; Securities Services 5,990 / 5,165 - 1 = 16.0%, about 16%. More: commercial card spend 71.2 / 38.6 - 1 = 84.5%, about 84%; advisory share of investment banking fees 1,908 / 4,618 = 41.3%, about 41%; advisory share of Q2 2026 investment banking revenue 390 / 1,548 = 25.2%, about 25%; BlackRock mandate 80 / 670 investment assets = 11.9%, roughly 12%; rewards and partner payments over interchange 12,075 / 9,718 = 1.24 times; new card accounts 5,376 / 2,942 - 1 = 82.7%, about 83%. Five-business income from continuing operations 2025: 8,187 + 6,265 + 935 + 1,178 + 3,409 = 19,974; Services 8,187 / 19,974 = 41.0%, about 41%, more than two-fifths. — FY2021-Q2 2026 · publ. September 2026 · source ↗
   Method: Arithmetic on figures reported in Citigroup's recast historical supplement, Forms 10-K and 10-Q and its Q2 2026 earnings release; operands shown in the source line.
6. ReportedAdvisory was about 41% of investment banking fees in 2025 and about 25% of investment banking revenue in the second quarter of 2026.
   Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - Services, Markets and Banking results and key metrics. — Q2 2026 · publ. 14 July 2026 · source ↗
7. Moat Explorer calcAdvisory was about 41% of investment banking fees in 2025 and about 25% of investment banking revenue in the second quarter of 2026.
   Moat Explorer calculation from Citigroup segment figures ($ millions unless stated; calendar years; segments as restated in the 8-K of 3 April 2026). Services: cross-border transaction value 416.4 / 279.5 - 1 = 49.0%, about half; U.S. dollar clearing 177.1 / 146.2 - 1 = 21.1%; fee revenue 6,385 / 4,967 - 1 = 28.5%, about 29%; net interest income 15,001 / 6,866 = 2.18 times, about 2.2; NII share 15,001 / 22,636 = 66.3%, about 66%; revenue 22,636 / 12,539 - 1 = 80.5%, about 81%; TTS 16,646 / 9,187 - 1 = 81.2%; Securities Services 5,990 / 3,352 - 1 = 78.7%, about 79%; Securities Services revenue over assets under custody 5,990 / 31,400,000 = 0.019%, about 1.9 hundredths of a percent; international share 15,729 / 22,636 = 69.5%, about 69%; share of Citi revenue 22,636 / 85,225 = 26.6%, about 27% (2025), 12,539 / 71,574 = 17.5%, about 18% (2021). Deposits: year-end 1,308,681 / 1,365,954 - 1 = -4.2%, about 4%. U.S. Consumer Cards: revenue 18,258 / 13,209 - 1 = 38.2%, about 38%; net interest income over average loans 20,169 / 170,000 = 11.9%, about 12 cents per dollar; Q2 2026 net credit losses over net interest income 1,850 / 5,180 = 35.7%, about 36%, more than a third; share of Citi revenue 18,258 / 85,225 = 21.4%, about 21%. Markets: rates and currencies 11,749 / 22,409 = 52.4%, about 52%; fixed income 16,745 / 22,409 = 74.7%, about 75%; international 14,020 / 22,409 = 62.6%, about 63%; revenue 18,888 / 20,401 - 1 = -7.4%, about 7%; net income 4,059 / 6,148 - 1 = -34.0%, about a third; revenue 22,409 / 19,108 - 1 = 17.3%, about 17%; share of Citi revenue 22,409 / 85,225 = 26.3%, about 26%. Allocated average TCE 2025 ($bn): Services 33.0 + Markets 53.5 + Banking 9.2 + Wealth 15.4 + U.S. Consumer Cards 20.3 + All Other 39.2 = 170.6; Markets 53.5 / 170.6 = 31.4%, about 31%; All Other 39.2 / 170.6 = 23.0%, about 23%, nearly a quarter. Banking: corporate lending and other 6,384 - 4,618 = 1,766, about $1,766 million; share of Citi revenue 6,384 / 85,225 = 7.5%. Wealth: Citigold and Retail Banking 7,666 / 11,272 = 68.0%, about 68%; Wealth at Work 930 / 11,272 = 8.3%, about 8%; revenue 11,272 / 9,871 - 1 = 14.2%, about 14%; 11,272 / 9,733 - 1 = 15.8%, about 16%; share of Citi revenue 11,272 / 85,225 = 13.2%, about 13%. All Other: revenue on the chart basis 4,442 managed + (176) reconciling items = 4,266 (2025); 9,491 - 670 = 8,821 (2021); 8,841 + 854 = 9,695 (2022); 9,389 + 1,346 = 10,735 (2023); 7,521 + 26 = 7,547 (2024); Corporate/Other 4,442 - 5,512 Legacy Franchises = -1,070, about minus $1,070 million. Further: All Other chart basis 4,266 / 8,821 = 0.48, about half; Banking 2025 income new basis 935 / old basis 2,324 = 0.40, so 60% less, about three-fifths; Mexico consumer and small business 6,500 / 4,539 - 1 = 43.2%, about 43%; U.S. card loans 170 / 409 consumer loans = 41.6%, about two-fifths; card loans excluding the American Airlines purchase (177 - 168 - 6.6) / 168 = 1.4%; Q1 2026 card net credit losses over net interest income 1,742 / 5,116 = 34.0%, about 34%; Q2 2026 equities over fixed income 2,301 / 4,706 = 0.49, about half; investment banking fees 4,618 / 2,713 - 1 = 70.2%, about 70%; Citigold (old basis) 4,953 / 3,803 - 1 = 30.2%, about 30%; net new investment assets first half 2026 15 + 16 = 31 billion; Wealth Q2 2026 efficiency 2,377 / 3,177 = 74.8%, about 75%; Securities Services 5,990 / 5,165 - 1 = 16.0%, about 16%. More: commercial card spend 71.2 / 38.6 - 1 = 84.5%, about 84%; advisory share of investment banking fees 1,908 / 4,618 = 41.3%, about 41%; advisory share of Q2 2026 investment banking revenue 390 / 1,548 = 25.2%, about 25%; BlackRock mandate 80 / 670 investment assets = 11.9%, roughly 12%; rewards and partner payments over interchange 12,075 / 9,718 = 1.24 times; new card accounts 5,376 / 2,942 - 1 = 82.7%, about 83%. Five-business income from continuing operations 2025: 8,187 + 6,265 + 935 + 1,178 + 3,409 = 19,974; Services 8,187 / 19,974 = 41.0%, about 41%, more than two-fifths. — FY2021-Q2 2026 · publ. September 2026 · source ↗
   Method: Arithmetic on figures reported in Citigroup's recast historical supplement, Forms 10-K and 10-Q and its Q2 2026 earnings release; operands shown in the source line.
8. ReportedAdvisory fees were $649 million in the fourth quarter of 2025, $505 million in the first quarter of 2026 and $390 million in the second, about 40% lower in two quarters.
   Citigroup Historical Quarterly Financial Data Supplement 2021-2025 recast to the first-quarter 2026 segments - Markets and Banking: revenue by product and region, investment banking fees, income, capital and returns. — FY2021-FY2025 · publ. 3 April 2026 · source ↗
9. ReportedAdvisory fees were $649 million in the fourth quarter of 2025, $505 million in the first quarter of 2026 and $390 million in the second, about 40% lower in two quarters.
   Citigroup second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - Services, Markets and Banking results and key metrics. — Q2 2026 · publ. 14 July 2026 · source ↗
10. Moat Explorer calcAdvisory fees were $649 million in the fourth quarter of 2025, $505 million in the first quarter of 2026 and $390 million in the second, about 40% lower in two quarters.
    Moat Explorer calculation from Citigroup segment and Investor Day figures ($ millions unless stated). Firm: PPNR 30.1 / 24.0 - 1 = 25.4%, about 25% ($bn). Services: operating expenses 10,813 / 7,682 - 1 = 40.8%, about 41%; revenue 22,636 / 12,539 - 1 = 80.5%, about 81%; TTS net interest income 12,238 / 5,963 = 2.05 times; TTS non-interest revenue 4,408 / 3,224 - 1 = 36.7%, about 37%; quarterly Services net interest income 4,050 / 3,317 - 1 = 22.1%, about 22%; Securities Services net interest income 2,763 / 903 = 3.06 times, about three times; Securities Services non-interest revenue 3,227 / 2,449 - 1 = 31.8%, about 32%; interest share 2,763 / 5,990 = 46.1%, about 46%; North America 6,907 / 3,744 - 1 = 84.5%, about 84%; international 15,729 / 8,795 - 1 = 78.8%, about 79%; international share 8,795 / 12,539 = 70.1% (2021) and 15,729 / 22,636 = 69.5% (2025); TTS non-interest revenue quarterly 1,182 / 1,049 - 1 = 12.7%, about 13%; cross-border value quarterly 115.2 / 90.7 - 1 = 27.0%, about 27%; share of Citi average deposits Q2 2026 1,017 / 1,504 = 67.6%, about 68%; assets under custody 31.4 / 24.0 - 1 = 30.8%, about 31%; quarterly Securities Services revenue 1,787 / 1,271 - 1 = 40.6%, about 41%; average Services deposits 935 / 808 - 1 = 15.7%, about 16%. Markets: net interest income share 6,072 / 19,108 = 31.8%, about 32% (2021), 9,687 / 22,409 = 43.2%, about 43% (2025); average loans 141 / 111 - 1 = 27.0%, about 27%; average assets 1,203 / 941 - 1 = 27.8%, about 28%; average trading assets 533 / 340 - 1 = 56.8%, about 57%; rates and currencies 11,749 / 11,735 - 1 = 0.1%; equities 5,664 / 3,969 - 1 = 42.7%, about 43%; spread products 4,996 / 5,386 - 1 = -7.2%, about 7% below; Q4 2025 revenue 4,609 / 6,075 - 1 = -24.1%, about 24% below. Banking: international share 2,977 / 6,384 = 46.6%, about 47%; equity underwriting 699 / 2,152 - 1 = -67.5%, about two-thirds less; loan hedges -140 + 307 - 443 - 180 - 118 = -574; advisory 390 / 649 - 1 = -39.9%, about 40%. Wealth: net interest income share 7,582 / 11,272 = 67.3%, about 67%; international 4,243 / 3,382 - 1 = 25.5%, about 25%; North America 7,029 / 5,949 - 1 = 18.2%, about 18%; North America 7,029 / 5,878 - 1 = 19.6%, about 20%; operating expenses 9,455 / 9,374 - 1 = 0.9%, about 1%; revenue 11,272 / 9,733 - 1 = 15.8%, about 16%; international share 4,243 / 11,272 = 37.6%, about 38%; Private Bank 2,676 / 2,970 - 1 = -9.9%, about 10% below; Private Bank Q2 2025 excluding the gain 731 - 80 = 651, 769 / 651 - 1 = 18.1%, about 18%; Citigold and Retail Banking quarterly 2,010 / 1,502 - 1 = 33.8%, about 34%; Wealth at Work 930 / 691 - 1 = 34.6%, about 35%; average loans 199 / 182 - 1 = 9.3%, about 9%; client deposits 413 / 438 - 1 = -5.7%, about 6% lower. U.S. Consumer Cards: average loans 170 / 125 - 1 = 36.0%, about 36%; operating expenses 6,755 / 5,693 - 1 = 18.7%, about 19%; revenue 18,258 / 13,209 - 1 = 38.2%, about 38%; general-purpose spend 152.4 / 125.6 - 1 = 21.3%, about 21%; private-label spend 13.9 / 16.7 - 1 = -16.8%, about 17% less; rewards and partner payments 12,075 / 9,096 - 1 = 32.7%, about 33%; interchange 9,718 / 7,521 - 1 = 29.2%, about 29%; other fees 427 / 229 = 1.86 times, nearly double; Q4 over Q1 2025 rewards 3,215 / 2,821 - 1 = 14.0%, about 14%, interchange 2,526 / 2,285 - 1 = 10.5%, about 11%; 2025 acquisitions general-purpose 1,696 + 1,704 + 1,872 + 2,115 = 7,387 thousand, private-label 1,144 + 1,551 + 1,339 + 1,572 = 5,606 thousand; general-purpose average loans 138.6 / 95.2 - 1 = 45.6%, about 46%; private-label 29.8 / 27.3 - 1 = 9.2%, about 9%; net credit losses over net interest income 2,856 / 14,518 = 19.7%, about a fifth (2021), 7,457 / 19,243 = 38.8%, about 39% (2024), 7,290 / 20,169 = 36.1%, about 36% (2025). All Other: Asia consumer 812 / 3,871 = 21.0%, about a fifth; operating expenses 8,698 / 9,628 - 1 = -9.7%, about 10% less; managed revenue 4,442 / 9,491 = 0.47, down more than half; allocated tangible equity 39.2 / 27.7 - 1 = 41.5%, about 42%. Expenses ($bn): five businesses and Corporate/Other 49.1 / 43.2 - 1 = 13.7%, about 14%. Latest-quarter pass: Markets first-half revenue 7,246 + 7,007 = 14,253 against 6,075 + 5,980 = 12,055, up 18.2%, about 18%; Markets first-half net income 2,595 + 2,387 = 4,982; Banking 304 + 350 = 654; equities 2,080 + 2,301 = 4,381, and 4,381 / 5,664 = 77.3%, about 77%; investment banking 1,326 + 1,548 = 2,874, and 2,874 / 4,781 = 60.1%, about 60%; fixed income 16,745 / 14,115 - 1 = 18.6%, about 19%; equities 5,664 / 4,993 - 1 = 13.4%, about 13%; Markets expenses 13,253 / 12,450 - 1 = 6.4%, about 6%; Services North America share 1,339 / 5,043 = 26.6%, about 27% (1Q24), 1,939 / 6,272 = 30.9%, about 31% (4Q25); year-end deposits 1,403,573 / 1,284,458 - 1 = 9.3%, about 9%; Services average deposits 1,017 / 961 - 1 = 5.8%, about 6%; Cards first-half revenue 4,757 + 4,521 = 9,278 against 4,567 + 4,471 = 9,038, up 2.7%, about 3%; general-purpose loans 143.2 / 139.0 - 1 = 3.0%, about 3%; American Airlines 6.6 / 177 = 3.7%, about 4%; private-label 29.8 / (138.6 + 29.8 + 3.9) = 29.8 / 172.3 = 17.3%, about 17%; Wealth expenses 9,721 / 8,061 - 1 = 20.6%, about 21%; Wealth first-half net income 432 + 583 = 1,015 against 191 + 385 = 576, nearly double, and 639 + 511 = 1,150 in the first half of 2021; Citigold 2,181 / 3,177 = 68.6%, about 69%; Private Bank 757 / 664 - 1 = 14.0%, about 14%; Wealth at Work 246 / 268 - 1 = -8.2%, about 8% lower; U.S. non-interest-bearing deposits 121,610 / 734,662 = 16.6%, about 17%; tangible book value per share 100.89 / 97.06 - 1 = 3.9%, about 4%; JPMorgan, Bank of America and Wells Fargo 911.91 + 396.48 + 250.90 = 1,559.29, and 1,559.29 / 225.24 = 6.9, nearly seven times; Wealth expenses over revenue 2,377 / 3,177 = 74.8%, about 75% (Q2 2026). — FY2021-Q2 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Citigroup's recast historical supplement, its Q2 2026 earnings release and its 2026 Investor Day presentation; operands shown in the source line.
11. ReportedThe fall came after advisory's best year: fees of $1,908 million in 2025 against $1,785 million in 2021 and $1,017 million in 2023.
    Citigroup Historical Quarterly Financial Data Supplement 2021-2025 recast to the first-quarter 2026 segments - Markets and Banking: revenue by product and region, investment banking fees, income, capital and returns. — FY2021-FY2025 · publ. 3 April 2026 · source ↗

• Citigroup Form 10-K, FY2025