Citi cites $1.2B loss on Russia sale

Core Viewpoint - Citi is expected to incur a pre-tax loss of approximately $1.2 billion in the fourth quarter of 2025 due to the sale of its remaining operations in Russia, which is seen as a step towards resolving legacy issues and transforming the bank [1][3]. Financial Impact - The total loss from the sale to Renaissance Capital amounts to $1.6 billion, but this will be partially offset by $200 million in expected proceeds and another $200 million from the derecognition of Citi's fully reserved net investment [2]. - As of September 30, Citi had about $1.8 billion of exposure to Russia, significantly reduced from $9.8 billion at the time of the Ukraine invasion in 2022 [5]. Strategic Moves - Citi's board approved the sale on December 29, with the expectation that the deal will close in the first half of 2026. The remaining Russia business will be reclassified as "held for sale" [3][4]. - The loss related to the sale is attributed to currency translation adjustments, which will not affect Citi's common equity tier 1 capital [6].