Citigroup (C) Q4 2025 earnings summary

Executive summary

• Adjusted net income for 2025 rose 27% year-over-year to $16.1B, with reported net income at $14.3B and adjusted EPS at $7.97; all five business segments delivered record revenues and improved returns, with positive operating leverage for the second consecutive year.

• Over $17.5B was returned to shareholders, including $13.25B in share repurchases and a higher common dividend, marking the highest capital return since the pandemic.

• Transformation progress accelerated, with over 80% of programs at or near target state, significant automation and regulatory remediation, and OCC removing Article 17 of the consent order.

• Excluding a $1.2B Russia-related loss, Q4 net income was $3.6B ($1.81 EPS); full year adjusted ROTCE was 8.8%.

• Focus remains on achieving 10%-11% ROTCE and further positive operating leverage in 2026.

Financial highlights

• Full-year adjusted net income was $16.1B, up 27% year-over-year; reported net income was $14.3B, up 13% year-over-year, on $85.2B revenue.

• Adjusted revenues rose 7% to $86.6B, the strongest growth in over a decade; NII for 2025 was $59.8B, up 11% year-over-year.

• Expenses (excluding notable items) were $54.4B, up due to compensation, technology, and Banamex goodwill impairment; reported expenses were $55.1B.

• Efficiency ratio improved to 63% on an adjusted basis; reported efficiency ratio was 65%.

• Book value per share at year-end was $110.01; tangible book value per share $97.06.

Outlook and guidance

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

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

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

• Card net credit losses expected to remain within 2025 guided ranges; Branded Cards NCL guidance for 2026: 3.50%-4.00%; Retail Services NCL: 5.75%-6.25%.

• Continued capital return through buybacks, aiming for a 100 bps CET1 management buffer.