Citigroup (C) Q4 2025 earnings summary

Executive summary

• Adjusted FY revenue rose 7% to $86.6B and adjusted net income rose 27% to $16.1B; all five businesses delivered positive operating leverage for a second consecutive year.

• Reported FY revenue was $85.2B, up 6%, and net income was $14.3B, up 13%.

• More than 80% of transformation programs were at or near target state; 2026 priorities include completing the transformation and reaching 10%–11% ROTCE.

Financial highlights

• Q4 reported revenue was $19.9B, net income $2.5B and EPS $1.19; excluding the Russia-related item, net income was $3.6B and EPS $1.81.

• FY adjusted net income was $16.1B, excluding the Russia item and Banamex goodwill impairment; adjusted ROTCE was 8.8%.

• FY NII was $59.8B, up 11%; NIR was $25.4B, down 4%.

• FY expenses were $55.1B, or $54.4B excluding the Banamex goodwill impairment; Q4 expenses were $13.8B, up 6% YoY.

• FY provision for credit losses was $10.3B, up 2%, mainly from U.S. cards; Q4 cost of credit was $2.2B, primarily net card losses.

Outlook and guidance

• 2026 NII excluding Markets is expected to grow 5%–6%, driven by loan and deposit growth, mix, and reinvestment of maturing securities, partly offset by lower short-term rates.

• 2026 efficiency ratio target is ~60%; management expects productivity savings and lower transformation, stranded and severance costs to offset investment and volume-related expenses.

• Management targets 10%–11% ROTCE and another year of positive operating leverage in 2026; continued buybacks are expected.

• Branded Cards 2026 NCL guidance is 3.50%–4.00%; Retail Services guidance is 5.75%–6.25%.