Citigroup reported fourth-quarter results on Wednesday that beat expectations as the lender earned more interest income and set aside less money for bad loans than analysts had expected.
Here’s what the company reported:
- Adjusted result: According to LSEG, $1.81 per share versus expected $1.67
- Adjusted sales: $21.0 billion versus expected $20.72 billion
Citigroup said net income fell 13% to $2.47 billion, or $1.19 per share, from the same period last year, as it incurred a $1.1 billion after-tax loss related to a plan to divest Citigroup’s Russian operations.
Excluding this charge, profit was $3.6 billion, or $1.81 per share.
Revenue excluding the Russia-related charge increased 8% to $21.0 billion, driven by higher results in banking, wealth and institutional services.
Net interest income, the difference between what a bank earns on loans and investments and what it pays its depositors, rose 14% to $15.67 billion, about $815 million more than StreetAccount’s estimate.
The bank’s loan loss provisions were $2.2 billion in the quarter, about $330 million below expectations.
At Citigroup and competing firms, including Bank of AmericaLower-than-expected provisions for loan losses could be a sign of optimism about the economy and borrowers’ ability to repay their debts.
“With record revenues and positive operating leverage for each of our five companies, 2025 was a year of significant progress as we demonstrated the investments we are making are driving strong revenue growth,” CEO Jane Fraser said in the earnings release.
“We enter 2026 with visible momentum across the company,” Fraser said.
The company is “committed” to meeting its return target of at least 10% for 2026 and positioning the bank for “better returns above this level in the coming years,” it added.
The bank’s shares fell more than 4% in afternoon trading.
Under Fraser, Citigroup is in the midst of a restructuring, selling parts of its foreign operations while benefiting from deregulation of U.S. banking. These are the reasons why Mike Mayo, banking analyst at Wells Fargo, calls Citigroup his top pick among bank stocks.
Analysts will be interested to see whether Fraser believes last year’s momentum can carry over into 2026.
On Tuesday, JPMorgan Chase achieved results that exceeded expectations as trading revenues were better than expected. Bank of America And Wells Fargo also reported fourth-quarter results on Wednesday Goldman Sachs And Morgan Stanley are scheduled for Thursday.
This story is developing. Please check back for updates.