citygroup The company reported fourth-quarter results Wednesday that beat expectations as it earned more interest income than analysts expected and had less money set aside for troubled loans.
Here’s what the company reported:
Adjusted earnings: $1.81 per share vs. $1.67 expected, according to LSEG Adjusted earnings: $21 billion vs. $20.72 billion expected
Citigroup announced that net income decreased 13% year over year to $2.47 billion, or $1.19 per share, due to a $1.1 billion after-tax loss related to Citigroup’s planned sale of its Russian business.
Earnings excluding costs were $3.6 billion, or $1.81 per share.
Excluding Russia-related costs, sales increased 8% to $21 billion due to higher results in Banking, Assets and Institutional Services.
Net interest income, the difference between what banks earn on loans and investments and what they pay out to depositors, rose 14% to $15.67 billion, about $815 million more than Street accounts expected.
Reserves for loan losses for the quarter were $2.2 billion, about $330 million less than expected.
At Citigroup and its competitors, bank of americalower-than-expected loan loss reserves may indicate optimism about the economy and borrowers’ ability to service their debts.
“2025 was a year of significant progress as we achieved record revenues and positive operating leverage in each of our five businesses, proving that the investments we are making are driving strong top-line growth,” Chief Executive Officer Jane Fraser said in the earnings call.
“We enter 2026 with tangible momentum across the company,” Fraser said.
He added that the company is “fully committed” to achieving its revenue target of at least 10% in 2026, positioning the bank for “profitability improvement beyond that level in the coming years.”
The bank’s stock price fell more than 4% in afternoon trading.
Under Fraser, Citigroup is in the midst of a restructuring to sell off some of its overseas operations, while also benefiting from U.S. banking deregulation. That’s why Wells Fargo banking analyst Mike Mayo calls Citigroup a top choice among bank stocks.
Analysts will be watching to see whether Fraser sees last year’s momentum continuing into 2026.
on tuesday, JP Morgan Chase The company announced higher-than-expected results due to higher-than-expected trading profits. bank of america and wells fargo Fourth quarter results were also announced on Wednesday. goldman sachs and morgan stanley is scheduled for Thursday.
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