Trump Endorsement Highlights Citi’s Turnaround, but Fraser’s Real Test Lies Beyond Market Rankings

Shares of Citigroup outperformed much of the banking sector after President Donald Trump publicly praised the bank and its chief executive, Jane Fraser.

The development is believed to underline how far the lender has come in a turnaround effort that only a few years ago faced skepticism from investors and analysts.

Trump's endorsement on Truth Social briefly lifted Citigroup shares at the opening bell, with the stock rising nearly 2% intraday before broader market weakness erased most of the gains. Even so, Citi ended the session outperforming rivals, including JPMorgan Chase and Goldman Sachs, as well as the broader market.

Yet the significance of the episode extends beyond a single trading session, as it reflects growing recognition that Citigroup's multiyear restructuring is beginning to yield tangible results, even as questions remain about whether the bank can permanently close the valuation gap with larger Wall Street rivals.

A turnaround that few expected

When Fraser took over in 2021 as Citigroup's first female chief executive, she inherited a sprawling institution that had underperformed peers for years. The bank was grappling with regulatory scrutiny, operational shortcomings, and a business model that many investors viewed as overly complex. Its stock consistently traded at a discount to rivals because of concerns over profitability, efficiency, and execution.

Fraser responded with one of the most ambitious restructurings in the bank's modern history.

The strategy involved:

• Simplifying management layers.
• Exiting non-core international consumer businesses.
• Reducing costs through job cuts and operational streamlining.
• Concentrating resources on institutional banking, wealth management, and transaction services.
• Improving regulatory compliance and risk controls.

The restructuring initially faced criticism because of its scale and associated costs. However, recent performance suggests the effort is gaining traction.

Citigroup's share-price performance has become increasingly difficult for investors to ignore. The stock has now delivered gains for four consecutive years and has emerged as one of the strongest performers among major U.S. banks.

The striking figures go as follows:

• Up more than 70% in 2025.
• Up nearly 42% in 2024.
• Up roughly 19% in 2023.
• Up more than 14% so far in 2026.

That compares favorably with many of its peers.

While investors traditionally favored JPMorgan as the industry's gold standard and Goldman Sachs for investment banking exposure, Citi has been attracting attention as a turnaround story with further room for improvement. The market appears to be rewarding evidence that Fraser's restructuring is translating into stronger profitability and operational discipline.

The M&A ranking debate misses the bigger story

Trump's praise centered on Citigroup's alleged leadership in mergers-and-acquisitions advisory work. However, publicly available league tables do not support the claim that Citi is currently the leading global M&A adviser.

According to industry data cited in the report, Goldman Sachs, JPMorgan, Morgan Stanley, and Bank of America all rank ahead of Citigroup globally by deal value in 2026. Goldman alone has advised on nearly $1 trillion worth of transactions this year, substantially exceeding Citi's advisory volume. In fact, Citi's position has slipped from fourth to fifth place among global M&A advisers.

That suggests the more important story is not whether Citi tops a specific league table but whether its broader franchise is becoming more competitive across multiple business lines.

One area where Citigroup has quietly built momentum is energy and infrastructure advisory work. The bank has emerged as a leading adviser on power-sector transactions, a segment becoming increasingly important as artificial intelligence drives unprecedented demand for electricity generation, transmission infrastructure, and data-center development.

The AI boom is creating a new generation of financing opportunities involving utilities, power producers, renewable energy projects, and grid modernization. Banks with strong corporate relationships in these sectors stand to benefit from years of elevated deal activity.

Citigroup's growing presence in these markets aligns with Fraser's strategy of emphasizing businesses where the bank has a global competitive advantage.

The broader investment case for Citi is based on valuation and earnings potential rather than simple market-share gains. Unlike many technology stocks that trade at aggressive multiples, major banks remain relatively inexpensive by historical standards.

Investors are particularly focused on whether Citi can continue improving returns on tangible common equity, a key profitability measure closely watched in banking. Some analysts opine that if management continues delivering operational improvements while maintaining credit quality, Citi could continue narrowing the valuation gap with competitors.

That possibility helps explain why investors have increasingly viewed the stock as one of the more attractive opportunities in the financial sector.