Citigroup (C) reported a robust first quarter in 2026, with revenues increasing 14% year over year and earnings per share soaring from $1.96 to $3.06. This strong performance has propelled the stock up over 60% in the past year, outpacing competitors like JPMorgan Chase (JPM) and Bank of America (BAC), which saw gains of 14% and 13%, respectively. However, Citigroup’s current valuation metrics indicate a shift; its price-to-book (P/B) ratio has risen from 0.5x to 1.1x, while the price-to-earnings (P/E) ratio has jumped from 6x to 15x, making it less attractive compared to its peers.
Despite these changes, Citigroup’s P/B ratio remains lower than that of Bank of America and JPMorgan, suggesting potential for further recovery. The bank’s return on average common equity (ROTCE) has improved to 13.1%, although it still lags behind its competitors. With significant share buybacks and nearing the completion of its transformation initiatives, Citigroup may have some upside left, but investors should temper expectations for continued dramatic price increases.
Source: fool.com