Citigroup reported fourth‑quarter 2025 results with net income of $2.47 billion, or $1.19 per share, down 13% from the same period a year earlier. Total revenue rose 2% to $19.9 billion, while full‑year revenue increased 6% to $85.2 billion. A $1.2 billion one‑off charge related to the sale of the bank’s Russian unit, AO Citibank, reduced the quarter’s net income, but adjusted net income climbed to $3.6 billion and adjusted EPS reached $1.81. The bank also announced a $17.5 billion dividend and share‑buyback program for 2025, underscoring its commitment to returning capital to shareholders.
Investment banking fees surged 35% to $1.29 billion, driven by a 84% jump in M&A advisory revenue, while services revenue grew 15% as client demand for advisory and transaction services expanded. Markets revenue, however, slipped slightly, reflecting modest pressure on trading and market‑making income. The mix shift toward higher‑margin investment banking and services helped offset the decline in markets and the impact of the Russia exit charge.
Net interest income grew 14% YoY, supporting a net interest margin of 2.5% versus an estimated 2.4%. Operating efficiency improved, with the bank’s efficiency ratio falling to 65% from 69.6% in the prior year, approaching the 60% target for 2026. The combination of higher interest income, tighter cost control, and a favorable fee mix contributed to the margin expansion, even as the Russia charge and increased operating expenses exerted downward pressure.
Management reiterated its focus on higher‑return institutional clients and confirmed a 10‑11% Return on Tangible Common Equity (RoTCE) target for 2026, a slight adjustment from the previous goal. Jane Fraser highlighted the bank’s “record revenues and positive operating leverage” across all five business segments, noting that the simplification and cost‑cutting initiatives are delivering stronger profitability. The guidance signals confidence in sustaining growth while managing the headwinds from the Russia exit and markets volatility.
Adjusted EPS of $1.81 beat consensus estimates of $1.62‑$1.71, a margin of $0.10‑$0.19, while GAAP EPS of $1.19 fell short of the $1.34 consensus. Revenue of $19.9 billion missed the $20.55‑$21.13 consensus range, a shortfall of $0.65‑$1.23 billion. Investors reacted with a muted response, weighing the adjusted earnings beat against the revenue miss and the impact of the one‑off Russia charge.
The results reinforce Citigroup’s strategic shift toward higher‑margin segments and a leaner balance sheet. The continued growth in investment banking and services, coupled with a disciplined cost structure, positions the bank to meet its 2026 RoTCE target. The Russia exit charge and markets weakness remain short‑term headwinds, but the bank’s focus on institutional clients and operational leverage suggests a resilient trajectory for long‑term profitability.
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