Citi CEO Confident in India's Long-term Growth Prospects

Citi CEO Jane Fraser: Long-term Returns Expected to Remain in the 10-11 Percent Range

Citigroup Chair and Chief Executive Officer Jane Fraser has reaffirmed the bank's commitment to its long-term objectives, stating that the bank's long-term returns are expected to remain in the 10-11 percent range. This comes as Citi's first quarter delivered 13 percent returns, a figure Fraser attributed to the bank's strongest quarter, typically the March quarter.

Citi has simplified its operating structure and is focused on extracting value from scale, speed, and sharper execution as economies grow. The bank's efforts have yielded positive results, with Citi's India business remaining the most profitable foreign bank in the country. Since the divestment of its consumer business in 2023, Citi has seen 35 percent growth in net income.

Fraser highlighted India's long-term growth story, stating that the country's story is intact. This sentiment is reflected in Citi's own numbers, with the bank's India business continuing to focus on corporate and investment banking, markets, treasury, and trade services, securities services, and other institutional businesses. Citi has a significant presence in India, having been present in the country for nearly 125 years.

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Citi's India Business Performance

The bank's performance in India is a key driver of its overall growth story. In its first-quarter 2026 results, Citi reported net income of $5.8 billion on revenue of $24.6 billion. The bank said revenue rose 14 percent from a year earlier, while net income grew 42 percent.

Fraser's comments also touched on the Indian market, with the CEO stating that Indian market valuations are higher than in some other countries. She suggested that short-term headwinds could be eased through changes in debt taxation. On artificial intelligence, Fraser said that AI investment does not appear to be overdone, and that companies should actively adopt AI tools to support both growth and efficiency.

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Fraser encouraged the use of AI models to identify potential vulnerabilities and improve productivity. She also expressed her positivity on the use of AI in healthcare and identified cybersecurity as an underappreciated opportunity with relatively limited competition. Her comments came during the Citi India Conference in Mumbai, which is hosting more than 1,500 clients and investors.

Citi also announced that Fraser met Prime Minister Narendra Modi during her India visit. The discussion covered investment and capital flows into India, opportunities for Indian companies overseas, alternative energy, and artificial intelligence. Fraser also emphasized the importance of greater participation of women, stating that it could unlock significant economic potential, and that entrepreneurship opportunities are expected to expand significantly.