Citigroup (C) Q4 2025 earnings summary

Executive summary

• Reported strong 2025 performance with full-year revenues of $85.2B (reported), $86.6B (adjusted), and net income of $14.3B (reported), $16.1B (adjusted), with significant progress on multi-year transformation and strategy execution, including major milestones in divestitures and operational improvements.

• All five business segments achieved record revenues and improved returns, with positive operating leverage for the second consecutive year.

• Over $17.5B returned to shareholders through buybacks and dividends, including $13.25B in share repurchases, with CET1 ratio at 13.2%, well above regulatory requirements.

• Transformation programs are over 80% complete, with OCC's removal of Article 17 of the consent order and significant progress in automation, data, and regulatory remediation.

• Excluding a $1.2B Russia-related loss, Q4 net income was $3.6B ($1.81 EPS); full year net income was $16.1B ($7.97 EPS).

Financial highlights

• Fourth quarter net income was $2.5B (reported), $3.6B (adjusted); EPS $1.19 (reported), $1.81 (adjusted); ROTCE 5.1% (reported), 7.7% (adjusted).

• Full-year net income was $14.3B (reported), $16.1B (adjusted); ROTCE 7.7% (reported), 8.8% (adjusted); book value per share $110.01, tangible book value per share $97.06.

• Full-year revenues reached $85.2B (reported), $86.6B (adjusted), up 6-7% year-over-year, the strongest growth in over a decade.

• Expenses for the year were $55.1B (reported), $54.4B (adjusted), with increases driven by compensation, technology, and legal costs.

• Efficiency ratio improved to 63% (adjusted), with reported efficiency ratio at 65%.

Outlook and guidance

• 2026 NII ex-Markets expected to grow 5%-6%, driven by higher loan and deposit volumes, especially in Cards, Wealth, and Services.

• Targeting an efficiency ratio around 60% for 2026, with continued positive operating leverage and disciplined expense management.

• Aiming for a 10-11% ROTCE in 2026, supported by revenue growth, cost discipline, and continued RWA optimization.

• Card NCLs expected to remain within 2025/2026 guided ranges; continued capital return through buybacks planned.

• Markets revenues expected to be flat year-over-year in 2026, with NII in Markets likely to increase.