Net new assets stall at Citi Wealth following Q4 drop

Core Insights - Citi's wealth division experienced a significant decline in net new investment assets in Q4 2025, with $7.2 billion reported, marking a 54% decrease year-over-year [1] - For the full year, the wealth division achieved $44 billion in net new investment assets, a modest 4% increase from 2024, following a strong prior year with a 40% increase to $42 billion [1] Wealth Division Performance - The organic growth rate for the wealth unit over the past 12 months was approximately 8%, calculated based on total net new investment assets divided by client investment assets at the end of 2024 [2] - CEO Jane Fraser attributed the performance to strategic investments over the past two years, including talent recruitment and partnerships aimed at enhancing efficiency and client experience [2][3] Revenue and Income - Companywide, Citi reported Q4 revenue of $19.9 billion, a 2% increase year-over-year, although results were impacted by a $1.2 billion loss from the sale of AO Citibank [4] - Excluding the sale, revenue increased by 8% from the previous year [4] - Within wealth management, Q4 revenue totaled $2.1 billion, a 7% year-over-year increase, with full-year revenue reaching $8.6 billion, a 14% increase from 2024 [5] Operating Expenses and Net Income - Q4 operating expenses in the wealth unit rose by 6% to $1.7 billion, driven by higher technology spending and increased transaction and product-service costs [6] - Net income for Q4 edged up 1% to $338 million, while full-year net income surged by 49% to $1.5 billion [6] Business Segments - Growth in the wealth division was primarily driven by Citi's Citigold and private bank businesses, although results in the Wealth at Work unit were weaker [7] - Citigold generated $1.3 billion in revenue for Q4, a 12% year-over-year increase, with full-year revenue reaching $5 billion, up 17% from 2024 [8] - The private bank reported $656 million in quarterly revenue, a 6% increase, and $2.7 billion for the full year, a 12% increase [8]