Citigroup on Wednesday posted fourth quarter results that topped expectations as the lender set aside less money for troubled loans than analysts had expected.
Here’s what the company reported:
- Adjusted earnings: $1.81 a share vs. $1.67 LSEG estimate
- Adjusted revenue: $21.0 billion vs. expected $20.72 billion
The company said net income fell 13% from the year earlier period to $2.47 billion, or $1.19 per share, because of a $1.1 billion after tax loss tied its plan to divest Citigroup’s Russian operations.
Excluding the charge, profit was $3.6 billion, or $1.81 per share.
Revenue excluding the Russia-related charge rose 8% to $21.0 billion on increases in banking, wealth and institutional services results.
The bank’s loan loss provision in the quarter was $2.2 billion, about $330 million below the StreetAccount estimate.
At Citigroup and rival firms including Bank of America, lower-than-expected loan loss provisions may signal optimism about the economy and the ability of borrowers to repay their debts.
“With record revenues and positive operating leverage for each of our five businesses, 2025 was a year of significant progress as we demonstrated that the investments we are making are driving strong top-line growth,” CEO Jane Fraser said in the earnings release.
“We enter 2026 with visible momentum across the firm,” Fraser said.
The company is “committed” to reaching its returns target of at least 10% for 2026 and positioning the bank for “improved returns above that level in the years ahead,” she added.
Shares of the bank climbed about 1% in premarket trading.
Under Fraser, Citigroup is in the midst of a restructuring, selling off parts of its overseas operations, while also benefiting from U.S. banking deregulation. Those are the reasons Wells Fargo banking analyst Mike Mayo calls Citigroup his top pick among bank stocks.
Analysts will be keen to hear whether Fraser sees momentum from last year carrying over into 2026.
On Tuesday, JPMorgan Chase posted results that exceeded expectations on better-than-expected trading revenue. Bank of America and Wells Fargo are also releasing Q4 results Wednesday, while Goldman Sachs and Morgan Stanley are scheduled for Thursday.
This story is developing. Please check back for updates.
