Citi(US:C)2026-02-20 22:06Financial Performance - Citigroup reported net income of $14.3 billion, or $6.99 per share, in 2025, compared to $12.7 billion, or $5.94 per share, in the prior year, reflecting a 12.6% increase in net income[37]. - Citigroup's net income for 2025 was $16.1 billion, or $7.97 per share, representing a 13% increase from the prior year[38]. - Citigroup's net income attributable to common shareholders increased to $14,306 million in 2025, compared to $12,682 million in 2024, marking a growth of 12.8%[68]. - Net income from continuing operations was $14.455 billion, reflecting a 13% increase compared to 2024, with notable growth in Banking and Wealth segments[90]. - Net income for 2025 reached $1.49 billion, representing a 49% increase compared to 2024[150]. - Net income increased by 124% to $3.1 billion[168]. - Net loss for 2025 was $4.5 billion, compared to a net loss of $2.4 billion in 2024, representing an increase of 83%[197]. Revenue Growth - Revenues for Citigroup in 2025 were $85.2 billion, a 6% increase year-over-year, driven by an 11% rise in net interest income[39]. - Total revenues, net of interest expense, rose to $85,225 million in 2025, up 5.6% from $80,722 million in 2024[68]. - Total revenues increased by 32% to $8.215 billion, driven by growth in Investment Banking and Corporate Lending[134]. - Total revenues increased by 14% to $8.56 billion, driven by growth in Citigold, the Private Bank, and Wealth at Work[151]. - Total revenues decreased by 41% to $4.4 billion in 2025, driven by lower revenues in Corporate/Other and Legacy Franchises[197]. Operational Metrics - Average loans increased by 5% to $716 billion in 2025, primarily due to growth in Markets, USPB, and Services[40]. - Average deposits rose by 4% to approximately $1.4 trillion, mainly driven by an increase in Services[41]. - Average loans across business lines increased to $93 billion, a 9% rise from the previous year, with TTS loans specifically growing by 10%[97]. - Average loans decreased to $82 billion, a 7% decline compared to 2024[130]. - Average mortgage loans increased by 14% to $49 billion[171]. Expenses and Provisions - Operating expenses were $55.1 billion, up 3% from the previous year, influenced by higher compensation and technology investments[42]. - Total operating expenses increased by 7% to $14.08 billion, primarily due to higher compensation and benefits[122]. - Provisions for credit losses were $10.3 billion, reflecting net credit losses of $9.1 billion, a 1% increase from the prior year[44]. - Provisions for credit losses were $720 million, reflecting a net ACL build of $636 million and net credit losses of $84 million[138]. - Provisions for credit losses were $1.5 billion, reflecting a 24% increase in net credit losses to $1.2 billion, driven by higher consumer lending volume[203]. Capital and Equity - The Common Equity Tier 1 (CET1) Capital ratio was 13.2% as of December 31, 2025, down from 13.6% the previous year[47]. - Citigroup's balance sheet overview indicates a strong capital position, supporting ongoing investments and strategic initiatives[14]. - Common equity increased by $1.5 billion, or 1%, to $14.3 billion, driven by $14.3 billion in net income and a $1.7 billion increase from the 25% Banamex equity interest sale[86]. - The company completed the sale of 25% of Banamex's outstanding common shares, increasing stockholders' equity by approximately $1.7 billion[182]. Strategic Initiatives - The company made significant progress on its strategic priorities in 2025 and early 2026, indicating improved business performance[37]. - Citigroup's transformation strategy aims to position the company as a leader in wealth management and a valued personal bank in the U.S.[10]. - The divestiture of Banamex remains a strategic priority, with plans for an IPO and additional private sales[180]. - The company has exited nine markets as part of its strategic refresh, including substantial wind-downs in China and Russia[194]. Market Presence - The company is focused on expanding its market presence in nearly 160 countries and jurisdictions, enhancing its global footprint[9]. - Citigroup's transformation-related expenses increased by 14% to approximately $3.3 billion in 2025, driven by investments in data and controls[56]. Efficiency Metrics - The efficiency ratio improved to 64.7% in 2025, down from 66.4% in 2024, indicating better cost management[71]. - The efficiency ratio improved to 51%, down from 54% in 2024, indicating better cost management[95]. - Efficiency ratio improved to 54%, down from 72% in the previous year[134]. - Efficiency ratio improved to 76%, down from 85% in the previous year[150].