Citigroup, Inc.

Investment Thesis

Citigroup trades at 1.32x tangible book value; JPMorgan trades at 3.27x. Both are money center banks in the same rate environment and regulatory regime. JPMorgan earns a higher return, which justifies some premium, but not one that size, and Citigroup's Q2 2026 ROTCE of 13.0% shows why. That sits at the top of management's guidance range. Jane Fraser's transformation is working, and the discount is too wide.