Citigroup Delivers Improving Profitability and Capital Strength Entering 2026

Citigroup Inc. (NYSE: C) exited 2025 with improving profitability, solid capital strength, and visible operational momentum heading into 2026. While legacy exits and notable items continued to obscure headline numbers, the underlying earnings trend strengthened meaningfully.

Fourth Quarter 2025 Fundamental Overview

In the fourth quarter of 2025, Citigroup reported net income of $2.5 billion, or $1.19 per diluted share, on revenues of $19.9 billion. Reported net interest income rose 14%. Reported non-interest revenue decreased 27%. Compared with the same quarter in 2024, revenue increased 2% year-over-year, while net income declined modestly due primarily to higher expenses and a Russia-related notable item.

Excluding the $1.2 billion pre-tax loss related to the planned sale of AO Citibank in Russia, underlying performance was materially stronger:

• Revenues would have increased 8% year-over-year

• Net income would have been $3.6 billion

• Adjusted EPS would have reached $1.81

Fourth-quarter operating expenses increased 6% to $13.8 billion, driven by higher compensation and benefits expenses, increases in non-income tax charges, legal expenses and technology and communication expenses. These increases were partially offset by productivity savings and lower deposit insurance costs.

Citigroup’s average loans were $737 billion in the fourth quarter, up 7% versus the prior-year period, with average deposits of approximately $1.4 trillion in the fourth quarter, up 8% versus the prior-year period.

Strong 2025 Performance

Citigroup reported full-year 2025 revenue of $85.2 billion, up 6% year-over-year, while net income rose 13% to $14.3 billion. Excluding notable items, net income reached $16.1 billion, representing a 27% year-over-year increase.

Operational efficiency improved materially, with 170 bps improvement in efficiency ratio year-over-year, resulting in an adjusted efficiency ratio of 63%. Returns also strengthened, as 2025 RoTCE increased to 7.7%, or 8.8% excluding notable items, placing Citi on a credible path toward management’s 10–11% RoTCE target for 2026.

Capital Returns and Balance Sheet Strength

Capital strength remains a key support for the stock. Citi ended the year with a CET1 Capital ratio of 13.2%, approximately 160 bps above regulatory requirements, while returning $17.6 billion to shareholders in 2025 through dividends and share repurchases—the most since the pandemic. Book value per share rose to $110.01, while tangible book value per share increased to $97.06.

Business Segment Performance in Q4

Services remained the standout, with revenues up 15% to $5.9 billion in the quarter. Excluding the Russia-related notable item, revenues increased 8%, driven by growth in Treasury and Trade Solutions and Securities Services. Markets revenues of $4.5 billion decreased 1%. Banking revenues surged 78% to $2.2 billion, supported by strong advisory activity and improved corporate lending economics. Wealth posted steady growth, with revenues up 7% to $2.1 billion, driven by growth in Citigold and the Private Bank. U.S. Personal Banking more than doubled net income, with revenues of $5.3 billion increasing 3%. While All Other weighed on reported results, with revenues of $(248) million.

Technical Outlook

From a technical perspective, Citigroup stock is currently testing a significant resistance level at $129. If C can consolidate and hold above $129, the technical path clears for a run toward the $139 goal.

Failure to clear or sustain above $129 could trigger a pullback, with initial support around $103. A deeper correction could see the stock retest the $90 support zone, a level that has previously attracted long-term buyers.