citi group (NYSE: C) had a great first quarter in 2026. Revenue was up 14% year over year, and earnings went from $1.96 per share a year ago to $3.06 in 2026. Given the performance of the business, it shouldn’t be too surprising to find that the stock is up more than 60% over the past year. Competitors like it JPMorgan Chase (NYSE: JPM) and bank of america (NYSE: BAC) They recorded advances of “only” 14% and 13%, respectively, during the same period. Have investors missed the opportunity with Citigroup or are there more upsides to come?
Citigroup is not as attractive as it was
In 2022, Citigroup’s price-to-book ratio was about 0.5 times. Today, the P/B ratio is 1.1x. The price-earnings ratio has increased from 6x to 15x. The value proposition is no longer as attractive as it once was.
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That said, Citigroup’s P/B ratio is still lower than some of its closest peers. For example, Bank of America’s P/B ratio is almost 1.3x, Wells Fargo‘s (NYSE: WFC) is almost 1.4x, and JPMorgan’s is 2.3x. Given this comparison, Citigroup looks relatively cheap.
But Citigroup’s return on average common equity (ROTCE) in the first quarter of 2026 was 13.1%. This figure was below Bank of America’s 16% and JPMorgan’s 23%. To be fair, Citigroup’s Q1 2026 ROTCE was materially higher than the prior year’s 9.1%. The share price advance is likely a reflection of that clearly positive news.
It also doesn’t hurt that Citigroup has been buying back shares. The bank bought back $6.3 billion in stock in the first quarter alone. That helps boost profits, but it doesn’t address the underlying business opportunity.
Citigroup may have a little more ahead of it
Given the price-to-book discount relative to peers, there could be a little more room for recovery for Citigroup stock. However, the company noted in its first quarter earnings report that “We have entered the final phase of our divestitures and 90% of our Transformation programs are now at or near our target state.”
That statement suggests that the change the company has been working on could be very close to completion. And if that’s the case, it seems likely that the opportunity for a share price recovery has largely remained in the rearview mirror. While there is an opportunity for Citigroup to close the book value gap with its peers, which is an interesting investment thesis, investors probably shouldn’t expect a repeat of last year’s huge price rally.