Citigroup Inc Earnings - Q4 2025 Analysis & Highlights
Citigroup Inc. reported strong Q4 2025 results, with significant revenue growth across all five businesses, improved returns, and substantial capital returns to shareholders, while also providing a positive outlook and strategic priorities for 2026.
Key Financial Results
Adjusted EPS was $1.81 for the quarter.
Adjusted RoTCE was 7.7% for the quarter.
Full-year returns improved to 8.8%, a 180 basis point improvement after adjusting for Banamex and Russia.
Adjusted net income surpassed $16 billion for the full year.
Adjusted revenues were up 7% for the full year.
Total revenues were up 2% for the quarter.
Adjusted revenues were up 8% for the quarter.
Net interest income (excluding Markets) was up 8% for the quarter.
Non-interest revenues (excluding Markets) were down 17% for the quarter.
Adjusted non-interest revenues (excluding Markets) were up 23% for the quarter.
Total Markets revenues were down 1% for the quarter.
Expenses were $13.8 billion, up 6% for the quarter.
Cost of credit was $2.2 billion for the quarter.
Full-year net income was $14.3 billion, up 13%.
Full-year RoTCE was 7.7% on a reported basis.
Adjusted full-year net income was $16.1 billion, up 27%.
Adjusted full-year RoTCE was 8.8%.
Full-year revenue was $85.2 billion.
Adjusted full-year revenue was $86.6 billion, up 7%.
Full-year expenses were $55.1 billion.
Adjusted full-year expenses were $54.4 billion.
Business Segment Results
Services delivered record revenues and improved returns by 250 to 800 basis points.
Revenues were up 8% for the year.
RoTCE was over 28% for the year.
Fee revenue grew by 6%.
Cross-border transaction value grew by 10%.
Security Services assets under custody and administration grew 24%.
Net income was $2.2 billion with an RoTCE of 36.1% in the quarter and 28.6% for the full year.
Reported revenues were up 15% and 8% adjusted for the Russia notable item.
NII increased 18%.
NIR increased 10% on a reported basis and declined 11% adjusted for the Russia notable item.
Expenses increased 9%.
Average loans increased 10%.
Average deposits increased 11%.
Markets delivered record revenues, surpassing 2020 performance.
RoTCE increased to 11.6%.
Fixed income was up 10%.
Equities revenues of $5.7 billion was a record, with over 50% increase in prime balances.
Revenues were down 1% for the quarter.
Fixed Income revenues were down 1%.
Equities revenues were down 1%.
Expenses increased 14%.
Cost of credit was a benefit of $104 million.
Average loans increased 25%.
Net income was $783 million with an RoTCE of 6.2% in the quarter and 11.6% for the full year.
Banking had a record year, including the best quarter and year for M&A revenues.
RoTCE was 11.3%.
Overall revenues were up 32%.
Investment Banking wallet share increased 30 basis points year-over-year.
Revenues were up 78% for the quarter.
Investment Banking fees increased 35%.
M&A was up 84%.
DCM was up 19%.
ECM was down 16%.
Corporate Lending revenues increased significantly.
Expenses increased 10%.
Cost of credit was $176 million.
Net income was $685 million with an RoTCE of 13.2% in the quarter and 11.3% for the full year.
Wealth delivered another year of strong performance.
Revenue growth of 14%.
Organic NNIA growth of 8%.
RoTCE of over 12%.
Revenues were up 7% for the quarter.
NII increased 12%.
NIR decreased 1%.
Net new investment asset flows slowed to $7.2 billion in the quarter.
Client investment assets were up 14%.
Expenses increased 6%.
End-of-period client balances grew 9%.
Average loans were up 1%.
Average deposits were up 1%.
Net income was $338 million with an RoTCE of 10.9% in the quarter and 12.1% for the full year.
US Personal Banking (USPB) returns more than doubled for the year, reaching mid-teens.
Branded Cards revenue grew 8%.
Revenues were up 3% for the quarter.
Branded Cards revenues increased 5%.
Retail Services revenues were down 7%.
Retail Banking revenues increased 21%.
Expenses increased 2%.
Cost of credit was $1.7 billion.
Average deposits increased 2%.
Net income was $845 million with an RoTCE of 14.3% in the quarter and 13.2% for the full year.
Capital Allocation
Repurchased over $13 billion in common shares during the year, including $4.5 billion in the fourth quarter.
Increased dividend, resulting in a total capital return of over $17.5 billion.
Ended the year with a CET1 ratio of 13.2%, 160 basis points above the regulatory capital requirement.
$4.5 billion of buybacks in the fourth quarter, and over $13 billion for the year against the $20 billion buyback program.
Still targeting a 100 basis point management buffer.
Industry Trends and Dynamics
Investment Banking wallet share increased 30 basis points year-over-year.
M&A was up 84%, reflecting a record quarter that closed a record year with momentum across several sectors and continued share gain.
DCM was up 19%, driven by investment-grade and leveraged finance debt.
ECM was down 16%, driven by lower participation in follow-on, partially offset by a continuation of the IPO market recovery.
US consumers spend $6 trillion on their credit cards every year.
Outstanding US credit card balances are over $1.2 trillion.
Credit card balances grow about $80 billion a year.
There is over $4 trillion in untapped capacity at risk in credit cards.
Competitive Landscape
Services is the leading firm in a number one position.
Markets is always looking at new capabilities in FX, equities, spread products, and rates.
Banking saw sponsors up 180 bps, LevFin up 100 bps, and M&A up 90 bps.
Wealth is retooling key areas of the investment product platform with open architecture as the key operating principle.
Cards is driving engagement and growth with new innovative products, commerce platform launches, and refreshing different offerings.
The goal is to be the leading player, top three or top one in all businesses.
Macroeconomic Environment
The global economy has powered through many shocks, creating optimism for continued economic growth.
Inflation is at normal levels globally, leading central banks to become more accommodating.
The labor market in the US has softened, but capital investment remains strong, especially in tech.
China is relying on exports to grow and compensate for slower domestic consumer demand.
Europe has taken steps to accelerate its anemic growth, with hopes for meaningful stimulus from Germany.
Corporate clients are in great financial shape and predominantly investment grade in terms of credit quality.
Growth Opportunities and Strategies
Investor Day on May 7 will outline the next phase of the journey.
Services continued to deliver with 8% revenue growth and an RoTCE of over 28%.
Integrated Citi Token Services with 24/7 US dollar clearing, launched in Hong Kong and Dublin, and added euro as a transaction currency.
Expanded Citi Payments Express to 22 markets, processing 40% of TTS' payments during Q4.
Began the journey to a unified custody infrastructure and enabling near real-time asset servicing by launching single event processing.
Markets delivered record revenues, surpassing 2020 performance, with RoTCE increasing to 11.6%.
Banking had a record year, including the best quarter and year for M&A revenues.
Wealth delivered 14% revenue growth, 8% organic NNIA growth, and an RoTCE of over 12%.
Integration of the Retail Bank into Wealth makes it easier to deepen share with existing clients and unifies the US deposit franchise.
USPB's returns more than doubled for the year, reaching mid-teens.
Branded Cards revenue grew 8%, driven by robust engagement from customers in spend, borrowing, and new account acquisitions.
Signed an agreement to sell the consumer business in Poland and receiving final approvals to sell remaining operations in Russia.
Closed the sale of a 25% stake of Banamex to one of Mexico's most prominent investors.
Over 80% of programs are now at or nearly at the target state for transformation.
OCC removed Article 17 of the consent order in December.
Building AI into processes that move money, manage risk, and serve clients.
Colleagues in 84 countries have interacted with proprietary AI tools over 21 million times.
Shifting focus to use AI tools and automation to further innovate, reengineer, and simplify processes beyond risk and controls.
Started with over 50 of the largest and most complex processes in the firm, ranging from KYC to loan underwriting.
Services is building out digital asset capabilities and expanding product innovations like Payments Express and real-time liquidity.
Markets is filling product capability gaps, improving capacity, reducing latency, and increasing resiliency.
Banking is continuing to bring in top talent to fill remaining gaps, notably in North America.
Wealth is retooling key areas of the investment product platform with open architecture and deploying new AI-powered capabilities.
Cards is driving engagement and growth with new innovative products and broadening marquee partner relationships.
Financial Guidance and Outlook
Expect to deliver 10% to 11% RoTCE and another year of positive operating leverage in 2026.
NII ex-Markets is expected to be up between 5% and 6% in 2026.
Expect a continued benefit from the investment portfolio, including fixed rate securities and derivatives rolling into higher-yielding instruments.
Targeting an efficiency ratio of around 60% for the full year.
Expect continued fee momentum across the businesses to drive growth in NIR ex-Markets.
Card NCLs are expected to remain within the ranges given for 2025.
Will continue to buy back shares against the **
