Core Viewpoint - The article compares Wells Fargo and Citigroup in terms of dividends, buybacks, and interest rate exposure, highlighting Wells Fargo's recent performance improvements following the removal of its Federal Reserve asset cap, while Citigroup faces challenges with declining net income and rising expenses. Group 1: Financial Performance - Wells Fargo reported Q4 2025 revenue of $21.29 billion and EPS of $1.76, exceeding earnings expectations but missing on revenue [1] - Citigroup's Q4 2025 revenue was $19.90 billion with an EPS of $1.19, falling short of estimates, and net income decreased by 13.8% to $2.5 billion due to a 6% rise in operating expenses [1] - Wells Fargo's net interest income grew by 4% year-over-year, driven by higher loan balances and fixed-rate asset repricing [1] Group 2: Strategic Outlook - Wells Fargo's asset cap removal allows for unrestricted growth in deposits and loans, with management raising its medium-term return on tangible common equity target to 17-18% from 15% [1] - Citigroup focuses on institutional banking and cross-border services, with a market cap of $208 billion, reflecting a lower valuation compared to Wells Fargo's $278 billion [1] Group 3: Dividends and Buybacks - Wells Fargo increased its quarterly dividend by 13% to $0.45 and repurchased $5.0 billion in stock during Q4 2025 [1] - Citigroup's dividend yield stands at 2.06%, slightly higher than Wells Fargo's 1.95%, but its declining net income raises concerns [1] Group 4: Market Position and Risks - Wells Fargo's domestic focus provides insulation from geopolitical risks, while Citigroup's global presence exposes it to such volatility [1] - Both banks face potential risks from proposed credit card interest rate caps, but Wells Fargo's diversified consumer banking portfolio may better absorb these impacts compared to Citigroup's card-heavy segment [1]