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Citibank vs JP Morgan

Side-by-side credit pricing comparison from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Verdict:

On a representative BBB+ EUR 25M 5-year term loan, JP Morgan is the cheaper lender by 18bp in minimum spread. For a EUR 25M facility, that's EUR 45,297 per year.

Bank profiles compared

Metric Citibank
United States		 JP Morgan
United States
IRB approachA-IRBA-IRB
Cost-to-income65.0%52.0%
Effective tax rate24.0%21.4%
Avg corporate PD1.21%1.20%
Avg LGD unsecured36.6%35.0%
Avg LGD secured20.0%15.0%
Funding spread (bp)15bp10bp
Corporate EADEUR 1301bnEUR 1333bn

Sample RAROC: BBB+ EUR 25M 5Y term loan

Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.

Component Citibank JP Morgan
Annual revenueEUR 385,000EUR 385,000
Operating costEUR 154,000EUR 154,000
Expected lossEUR 28,750EUR 28,750
Capital required (FPE)EUR 2,451,320EUR 2,451,320
RAROC (after tax)7.40%8.12%
Min spread for 12% RAROC249bp231bp
This is just one sample deal.

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Citibank full profile JP Morgan full profile All banks RAROC methodology

FAQ: Citibank vs JP Morgan

Which bank is cheaper on corporate credit: Citibank or JP Morgan?
On a BBB+ EUR 25M 5-year term loan, JP Morgan requires a minimum spread of 231bp to reach a 12% RAROC hurdle, versus 249bp at the other bank — a difference of 18bp on the same deal.
How do Citibank and JP Morgan compare on corporate PD?
Citibank reports an EAD-weighted corporate PD of 1.21%, while JP Morgan reports 1.20%. The gap reflects differences in obligor mix and geography rather than underwriting quality.
How do the two banks differ on IRB approach?
Citibank uses A-IRB and JP Morgan uses A-IRB. The IRB approach determines whether internal LGD models or supervisory LGDs apply, which materially affects capital required on every corporate facility.
What deal is used in this comparison?
A single standardised facility: BBB+ rated, EUR 25M drawn on a EUR 30M commitment, 5-year tenor, 150bp spread, 20bp commitment fee. Both banks are priced on this exact deal using their own disclosed Pillar 3 parameters.