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 EPS at $6.99; Q4 net income was $2.5B ($1.19 EPS), or $3.6B ($1.81 EPS) excluding Russia-related loss.

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

• Over $17.5B was returned to shareholders in 2025, including $13.25B in share repurchases and a higher common dividend.

• Transformation initiatives progressed, with over 80% of programs at or near target state and OCC removing Article 17 of the consent order.

• Significant events included a $1.2B pre-tax loss on Russia held-for-sale accounting and the sale of a 25% Banamex stake, resulting in a $0.6B net loss but a $1.7B increase in stockholders' equity.

Financial highlights

• Full-year adjusted net income was $16.1B, up 27% year-over-year, with adjusted ROTCE of 8.8%; reported net income was $14.3B, up 13% year-over-year.

• Revenues grew 6% to $85.2B, with adjusted revenues up 7% to $86.6B; NII for 2025 was $59.8B, up 11% year-over-year.

• Expenses were $55.1B, up due to compensation, technology, legal costs, and Banamex goodwill impairment, partially offset by productivity savings.

• Efficiency ratio improved to 63% on an adjusted basis, 65% reported; Q4 efficiency ratio worsened to 69.6%.

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

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 a ~60% efficiency ratio and continued positive operating leverage in 2026.

• 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 2025/2026 guided ranges: Branded Cards NCL 3.50%-4.00%, Retail Services NCL 5.75%-6.25%.

• Continued capital return through buybacks, targeting a 100 basis point CET1 management buffer.