Core Insights - Citigroup's subsidiary, Citibank N.A., reported mixed credit card performance for October 2025, with an increase in delinquency rates but a decrease in charge-off rates [1][2][10] Credit Card Performance - The delinquency rate for Citibank Credit Card Master Trust rose to 1.42% in October 2025 from 1.38% in September 2025, but decreased from 1.52% in October 2024 and 1.58% in October 2019 [1] - The charge-off rate for the Credit Card Issuance Trustnet fell to 1.95% in October 2025 from 2.50% in the previous month, and also dropped from 2.36% in October 2024 and 2.61% in October 2019 [2] Lending Activity - Citibank's principal receivables were $20.2 billion, slightly down from $20.3 billion at the beginning of September 2025, reflecting a year-over-year decline of 6.9% [2][10] Credit Losses and Provisions - Net credit losses (NCL) experienced a compounded annual growth rate (CAGR) of 4.3% over the past four years ending in 2024, with a 2.2% year-over-year increase in the first nine months of 2025 [3] - Provisions for credit losses expanded at a CAGR of 38.9% from 2022 to 2024, continuing to rise in the first nine months of 2025 [3] Future Outlook - Citigroup's profitability may face challenges due to rising credit losses in its Branded Cards portfolio, with expected NCL between 3.50% and 4% in 2025, and Retail Services NCL projected between 5.75% and 6.25% [4] - Economic conditions could further weaken, leading to accelerated losses and higher loan-loss provisions, putting pressure on earnings [5] Peer Comparison - Bank of America reported a delinquency rate of 1.38% in October 2025, down from 1.52% a year earlier, with a net charge-off rate of 2.11% [6] - JPMorgan's delinquency rate edged up to 0.88% in October 2025, while its net charge-off rate declined to 1.44% [7] Stock Performance and Valuation - Citigroup shares have increased by 36% over the past six months, outperforming the industry's growth of 18.8% [8] - The forward price-to-earnings (P/E) ratio for Citigroup is 10.35X, below the industry's average of 14.06X [12] Earnings Estimates - The Zacks Consensus Estimate for Citigroup's earnings implies year-over-year increases of 27.4% for 2025 and 31.2% for 2026, with upward revisions in estimates over the past 30 days [14]