Investing.com -- Citigroup beat Wall Street’s first-quarter profit estimates on Tuesday, buoyed by strong dealmaking despite geopolitical uncertainty.

Wall Street executives expect strong M&A activity this year despite Middle East uncertainty, as a softer regulatory stance under President Donald Trump and the AI boom are likely to drive deals.

Global investment banking revenue rose 14% year-over-year to $28.2 billion in Q1, led by North America, the highest Q1 since 2021, Dealogic data showed.

“We’re off to an exceptionally strong start in 2026, with revenue up 14% and net income growing 42%. Services had an outstanding quarter with revenue up 17%, and Markets crossed $7 billion in revenue,” Citi Chair and CEO Jane Fraser said.

Citigroup's investment banking fees rose 19% to $1.3 billion. The increase in investment banking fees reflects growth in Advisory and Equity Capital Markets (ECM), partially offset by a decline in Debt Capital Markets (DCM). Advisory fees increased 19%, reflecting continued growth in sell-side fees and strong performance with sponsors, the firm said.

Citigroup reported net income for the first quarter 2026 of $5.8 billion, or $3.06 per diluted share, compared to $4.1 billion or $1.96 per diluted share in the prior-year period. The profit was well above the analysts’ estimate of $2.63.

The rise in net income reflects higher net income and a lower share count due to share repurchases.

“We remain very much on track to deliver the 10-11% RoTCE target this year. I’m excited for next month’s Investor Day where we’ll discuss our path forward and how we will realize the significant upside Citi offers,” Fraser added.