Citi Group Fourth-quarter results beat expectations on Wednesday as the lender raked in more interest income and set aside less money for troubled loans than analysts expected.
Here’s what the company reported:
- Adjusted earnings: $1.81 per share versus $1.67 expected, according to LSEG
- Adjusted income: $21.0 billion versus $20.72 billion expected
The company said its net profit fell 13% from a year earlier to $2.47 billion, or $1.19 per share, due to a $1.1 billion after-tax loss related to its planned sale of Citigroup’s Russian operations.
Excluding charges, profit was $3.6 billion, or $1.81 per share.
Revenue excluding Russia-related charges increased 8% to $21.0 billion, driven by higher results in banking, wealth management and institutional services.
Net interest income, which is the difference between what a bank earns on its loans and investments and what it pays to depositors, rose 14% to $15.67 billion, about $815 million more than StreetAccount’s estimate.
The bank’s provision for loan losses in the quarter was $2.2 billion, about $330 million less than expected.
At Citigroup and at competing companies, including Bank of AmericaLower-than-expected provisions for loan losses can signal optimism about the economy and borrowers’ ability to repay their debts.
“With record revenues and positive operating leverage across each of our five businesses, 2025 was a year of significant progress as we demonstrated that the investments we are making are generating strong revenue growth,” CEO Jane Fraser said in the results release.
“We enter 2026 with visible momentum across the business,” Fraser said.
The company is “committed” to achieving its 2026 return target of at least 10% and positioning itself for “improved returns above this level in the years to come”, it added.
The bank’s shares rose about 1% in premarket trading.
Under Fraser, Citigroup is in the midst of restructuring, selling off parts of its overseas operations, while also benefiting from banking deregulation in the United States. That’s why Wells Fargo banking analyst Mike Mayo considers Citigroup his top pick among banking stocks.
Analysts will be keen to know whether Fraser sees last year’s momentum continuing into 2026.
Tuesday, JPMorgan Chase reported better-than-expected results thanks to better-than-expected trading revenue. Bank of America And Wells Fargo also released fourth-quarter results on Wednesday, while Goldman Sachs And Morgan Stanley are scheduled for Thursday.
This story is developing. Please check again for updates.