Citigroup tops estimates on stronger net interest income, smaller loan loss provision

Core Viewpoint - Citigroup is undergoing a restructuring under CEO Jane Fraser, focusing on divesting parts of its international operations while benefiting from U.S. banking deregulation [1][2]. Group 1: Earnings Expectations - Citigroup is set to report its fourth-quarter earnings, with Wall Street anticipating earnings of $1.67 per share and revenue of $20.72 billion [3]. - The net interest income is expected to be $14.85 billion, with trading revenue comprising $3.31 billion from fixed income and $1.19 billion from equities [3]. Group 2: Analyst Insights - Wells Fargo analyst Mike Mayo has identified Citigroup as his top pick among bank stocks, indicating strong confidence in the company's performance [2]. - Analysts are particularly interested in whether CEO Fraser believes the momentum from the previous year will continue into 2026 [2]. Group 3: Market Context - The earnings report from Citigroup follows positive results from JPMorgan Chase, which exceeded expectations due to better-than-expected trading revenue [2]. - Other major banks, including Bank of America and Wells Fargo, are also scheduled to release their Q4 results, with Goldman Sachs and Morgan Stanley following shortly after [2].