Citigroup’s fourth-quarter earnings showed improving momentum in parts of its business, but headline results were weighed down by a large one-off charge linked to its exit from Russia.
Fixed income, currencies, and commodities sales and trading revenue came in above expectations, benefiting from stronger client activity late in the quarter.
Key Takeaways
Citigroup’s Q4 profit was dragged down by a one-off loss from its Russia exit, despite stronger performance in parts of the business.
FICC trading beat expectations, while equities trading fell short, showing uneven market conditions.
The bank expects net interest income excluding markets to grow 5–6% in 2026, supporting its push toward higher returns.
This strength was partly offset by softer equities trading, with equities sales and trading revenue of $1.08 billion missing estimates of $1.16 billion. Investment banking revenue reached $1.27 billion, supported by a late-year rebound in mergers and acquisitions and steadier underwriting activity across Wall Street.
Russia exit weighs on headline profit
Overall profit declined sharply despite higher revenue in some areas. Citigroup reported earnings of $2.47 billion, or $1.19 per share, down 13% from a year earlier. The main drag was a $1.2 billion pre-tax loss tied to the sale of its Russian unit, AO Citibank, to Renaissance Capital, with currency translation accounting for most of the impact.
The one-off loss pushed Citigroup’s return on tangible common equity down to 5.1% in the fourth quarter, well below management’s medium-term goal. Excluding the Russia-related charge, the return improved to 7.7%, highlighting progress but also the remaining gap to the bank’s 10% to 11% target.
2026 outlook turns more constructive
Looking ahead, management struck a more optimistic tone. Citigroup expects net interest income excluding markets to grow by 5% to 6% year over year in 2026 and sees a lower level of severance expenses, suggesting that much of its restructuring phase is nearing completion.
Chief executive Jane Fraser reiterated the bank’s commitment to delivering returns within its targeted range through continued simplification and tighter cost discipline.
The results landed against a more supportive industry environment, as Wall Street banks benefited from a pickup in dealmaking in the second half of the year after earlier disruptions from tariffs and a U.S. government shutdown. Even so, investors reacted cautiously, with Citigroup shares edging lower in premarket trading following the earnings release.
