Citi(US:C) ZACKS·2026-01-14 19:25Core Insights - Citigroup Inc. reported a fourth-quarter 2025 adjusted net income per share of $1.81, reflecting a 35.1% increase year-over-year and exceeding the Zacks Consensus Estimate by 9.7% [1][9] Financial Performance - The increase in adjusted net income was driven by higher net interest income (NII) and lower provisions, alongside a 38% rise in investment banking revenues [2][9] - Citigroup's total revenues for Q4 2025 were $19.9 billion, a 2.1% increase year-over-year, but fell short of the Zacks Consensus Estimate by 4.9% [5] - Full-year revenues reached $85.2 billion, up 5.6% year-over-year, but also missed the consensus estimate of $86.4 billion [5] - NII rose 14.1% year-over-year to $15.7 billion, while non-interest revenues declined 26.6% to $4.2 billion [5] Expenses and Provisions - Operating expenses increased by 5.9% year-over-year to $13.8 billion, primarily due to higher compensation, legal expenses, and technology costs [6] - Provisions for credit losses were $2.5 billion, down 14.4% from the previous year [12] Segment Performance - The Services segment reported revenues of $5.9 billion, up 14.8% year-over-year, driven by growth in Treasury and Trade Solutions [7] - Banking revenues surged 78.1% year-over-year to $2.2 billion, mainly due to growth in investment banking and corporate lending [8] - Wealth segment revenues increased by 6.5% year-over-year to $2.1 billion, while the All Other segment recorded a loss of $248 million [10] Balance Sheet and Capital Position - Citigroup's deposits rose 1.4% quarter-over-quarter to $1.4 trillion, and loans increased by 2.4% to $752 billion [11] - The Common Equity Tier 1 capital ratio decreased to 13.2% from 13.6% year-over-year, indicating a weaker capital position [13] Shareholder Returns - The company returned $5.6 billion to shareholders through dividends and share repurchases in the reported quarter [14] Future Outlook - Management anticipates a 5-6% increase in NII (excluding Markets) for 2026 and targets a return on tangible common equity (RoTCE) of 10-11% [15]