Financial Performance - Citigroup reported fourth-quarter net income of $2.5 billion, with an EPS of $1.19 and a return on tangible common equity (ROTCE) of 5.1% on revenues of $19.9 billion, impacted by a notable item related to its operations in Russia [3] - Adjusted net income for the fourth quarter was $3.6 billion, with an adjusted EPS of $1.81 and an adjusted ROTCE of 7.7%, reflecting an 8% increase in net interest income excluding markets [2][6] - For the full year 2025, Citigroup achieved a reported net income of $14.3 billion, up 13%, and an adjusted net income of $16.1 billion, up 27%, with reported ROTCE of 7.7% [7][6] Revenue Growth - Total revenues for the fourth quarter increased by 2% year-over-year on a reported basis and by 8% when adjusted for the Russia notable item [2] - Full-year reported revenue was $85.2 billion, with adjusted revenue at $86.6 billion, marking a 7% increase and the strongest growth in over a decade [8] Strategic Initiatives - Citigroup is nearing completion of its international consumer divestitures, including the sale of its consumer business in Poland and remaining operations in Russia [9] - The company is focusing on accelerating AI adoption, with over 21 million interactions with proprietary tools across 84 countries, and aims to simplify processes through automation [10] Capital Management - Citigroup returned over $17.5 billion to shareholders in 2025, including more than $13 billion in share repurchases [6][11] - The bank ended the quarter with a preliminary standardized CET1 ratio of 13.2%, significantly above its regulatory requirement, and maintained a liquidity coverage ratio of 115% [12] Future Outlook - For 2026, Citigroup targets net interest income growth of approximately 5-6% excluding markets and aims for an efficiency ratio around 60% [5][14] - The company is expected to provide more strategic details at an Investor Day scheduled for May 7, focusing on its path toward achieving a ROTCE of 10-11% [17]

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $1.81 and an adjusted ROTCE of 7.7% for Q4 2025, with full-year adjusted net income surpassing $16 billion, reflecting an 180 basis points improvement to 8.8% ROTCE [4][20] - Total revenues increased by 2%, with adjusted revenues up 8%, driven by growth in banking, services, US Personal Banking (USPB), and Wealth [19][20] - Expenses rose by 6% to $13.8 billion, influenced by higher compensation, tax charges, and technology expenses [19][22] Business Line Data and Key Metrics Changes - Services revenues increased by 15%, with net income of $2.2 billion and an ROTCE of 36.1% for Q4 [27][28] - Markets revenues were down 1%, with fixed income and equities both experiencing slight declines, but overall, the Markets business saw an 11% revenue increase for the full year [30][31] - Banking revenues surged by 78%, driven by corporate lending and investment banking, with M&A fees up 84% [31][32] - Wealth management revenues grew by 7%, with net new investment asset flows of $7.2 billion in Q4 [32][34] Market Data and Key Metrics Changes - The company reported a 24% increase in assets under custody and administration, reflecting strong client engagement and onboarding of new clients [5][28] - Cross-border transaction value increased by 14%, indicating robust activity in the services sector [28] - The corporate exposure remains primarily investment-grade, with low corporate non-accrual loans and net credit losses [25] Company Strategy and Development Direction - The company is focused on a multi-year transformation journey, emphasizing operational efficiency, technology investments, and enhancing client experience through AI [4][12] - The strategy includes maintaining a disciplined approach to expenses while investing in growth areas, aiming for a ROTCE target of 10%-11% [15][39] - The company is actively working to close the gap with best-in-class peers in investment banking and capital markets through talent acquisition and product innovation [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the global economic outlook, citing strong capital investment and a healthy consumer environment as drivers for growth [12][14] - The company is well-positioned to navigate challenges, with a focus on leveraging its balance sheet and expertise across nearly 100 countries [14] - Management highlighted the importance of continued investment in the franchise to sustain growth and improve returns [39][76] Other Important Information - The company repurchased over $13 billion in common shares during the year, with a CET1 ratio of 13.2%, significantly above regulatory requirements [10][26] - The company is nearing the end of its international divestitures, with significant progress in its transformation efforts [11][39] Q&A Session Summary Question: Insights on Markets performance and ROTCE - The fourth quarter had tough year-over-year comparisons, but the full year saw strong performance in Markets, particularly in spread products and equities [50][52] Question: Efficiency ratio target clarification - The efficiency ratio target was adjusted to around 60% to allow for continued investments in the business while maintaining expense discipline [54][55] Question: Transformation progress and remaining work - Over 80% of transformation efforts are at or near target state, with remaining work focused on compliance, risk, controls, and data [58][60] Question: Addressing the gap with peers in investment banking - The company is investing in technology and talent to close the gap with best-in-class peers, particularly in investment banking and capital markets [72][76] Question: NII outlook and drivers - The NII outlook for 2026 is expected to grow by 5%-6%, driven by loan and deposit volume growth [89][90]

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $1.81 and an adjusted ROTCE of 7.7% for Q4 2025, with full-year adjusted net income surpassing $16 billion, reflecting an 180 basis points improvement to 8.8% ROTCE [3][19] - Total revenues for the quarter were up 2%, with adjusted revenues increasing by 8% when excluding the notable item related to Russia [18][19] - Expenses increased by 6% to $13.8 billion, driven by higher compensation, tax charges, and technology expenses [18][22] Business Line Data and Key Metrics Changes - Services revenues increased by 15% in Q4, with net income of $2.2 billion and an ROTCE of 36.1% [26] - Markets revenues were down 1%, with fixed income and equities both experiencing slight declines, but overall, markets delivered a net income of $783 million [29] - Banking revenues surged by 78%, driven by corporate lending and investment banking, with M&A fees up 84% [30][31] - Wealth management revenues grew by 7%, with net income of $338 million and an ROTCE of 10.9% [33] Market Data and Key Metrics Changes - Cross-border transaction value increased by 14%, and assets under custody and administration grew by 24% [26] - The corporate lending wallet was noted to be over $100 billion, with expectations for continued share gains [76] Company Strategy and Development Direction - The company is focused on a multi-year transformation strategy, with over 80% of its programs nearing target states [10][56] - Investments in technology and innovation are prioritized to enhance operational efficiency and client experience [11][72] - The company aims to achieve a ROTCE target of 10%-11% and maintain positive operating leverage [14][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the global economic outlook, citing strong capital investment and a healthy consumer environment [12] - The company is well-positioned to support corporate clients, with a focus on maintaining high credit quality [12][24] - Management highlighted the importance of continued investment in the franchise to drive long-term growth [72] Other Important Information - The company repurchased over $13 billion in common shares during the year, with a CET1 ratio of 13.2%, significantly above regulatory requirements [9][25] - The company is nearing the end of its international divestitures, including the sale of its consumer business in Poland and operations in Russia [10] Q&A Session Summary Question: Markets performance and ROTCE - Inquiry about the flat revenues in markets and the relationship between allocated capital and ROTCE [48] - Response highlighted strong full-year performance in markets, with a focus on optimizing RWA and deploying it in high-return areas [50][51] Question: Efficiency ratio target - Clarification sought on the change in efficiency ratio target from below 60% to around 60% [52] - Response indicated that the adjustment allows for continued investment in the business while maintaining expense discipline [52] Question: Transformation progress - Inquiry about the remaining work in transformation and its relation to safety and soundness [55] - Management confirmed significant progress, with a focus on compliance, risk, controls, and data modernization [56][58] Question: Competitive positioning and investment banking - Question regarding the gap between Citi and best-in-class peers in investment banking [69] - Management acknowledged past investments and ongoing efforts to enhance capabilities and competitive positioning [70][72] Question: NII outlook - Inquiry about the improved NII outlook for 2026 [87] - Response indicated that higher loan and deposit volumes contributed to the positive outlook, with expectations for continued growth [88]

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $1.81 and an adjusted ROTCE of 7.7% for Q4 2025, with full-year adjusted net income surpassing $16 billion, reflecting an 180 basis points improvement to 8.8% ROTCE after adjustments for Banamex and Russia [3][18] - Total revenues increased by 2%, with adjusted revenues up 8%, driven by growth in banking, services, USPB, and wealth [17][18] - Expenses rose by 6% to $13.8 billion, influenced by higher compensation, tax charges, and technology expenses [17][20] Business Line Data and Key Metrics Changes - Services revenues increased by 15%, with net income of $2.2 billion and an ROTCE of 36.1% for Q4 [25] - Markets revenues were down 1%, with fixed income and equities both experiencing slight declines, but average loans increased by 25% [27] - Banking revenues surged by 78%, with M&A fees up 84%, marking a record year for investment banking [28][29] - Wealth management revenues grew by 7%, with net new investment asset flows of $7.2 billion in Q4 [30][31] Market Data and Key Metrics Changes - Cross-border transaction value increased by 14%, and assets under custody and administration grew by 24% [25] - The company maintained a diversified deposit base of $1.4 trillion, with a 1% increase driven by growth in services [24] Company Strategy and Development Direction - The company is focused on a multi-year transformation strategy, with over 80% of its programs nearing target state [10][12] - Investments in technology and operational efficiency are prioritized to enhance client experience and reduce expenses [11][39] - The company aims to achieve a ROTCE target of 10%-11% and maintain positive operating leverage [13][36] Management's Comments on Operating Environment and Future Outlook - The global economy is showing signs of optimism, with inflation normalizing and capital investment remaining strong, particularly in technology [11][12] - The company is well-positioned to support corporate clients, who are predominantly investment-grade in credit quality [12] - Management expressed confidence in the ongoing transformation and the ability to deliver higher returns in the future [39] Other Important Information - The company repurchased over $13 billion in common shares during the year, with a total capital return of over $17.5 billion [9][24] - The company is nearing the end of its international divestitures, including the sale of its consumer business in Poland and operations in Russia [9][10] Q&A Session Summary Question: Insights on market performance and ROTCE - Management noted strong top-line revenue growth for markets, with a focus on optimizing RWA and deploying it in high-return areas [41][42][43] Question: Clarification on efficiency ratio targets - Management confirmed the shift in efficiency ratio targets to around 60%, emphasizing the need for continued investment in the business [45] Question: Update on transformation progress - Management highlighted that over 80% of transformation efforts are nearing completion, with a focus on compliance, risk, controls, and data modernization [46][48] Question: Addressing competitive gaps in investment banking - Management acknowledged past gaps but emphasized ongoing investments in technology and talent to enhance competitive positioning [52][54] Question: Outlook for net interest income (NII) - Management expects NII growth of 5%-6% in 2026, driven by loan and deposit volume growth [60][61]

Financial Performance Highlights - Citigroup reported revenues of $216 billion, up 3% year-over-year[6] - Net income reached $41 billion, a 21% increase compared to the previous year[7] - The Return on Tangible Common Equity (RoTCE) improved to 91%, up approximately 150 basis points year-over-year[6] - The CET1 Capital Ratio stands at 134%, about 130 basis points above the current regulatory minimum[6] Business Segment Performance - Markets experienced a revenue increase of 12% year-over-year, driven by growth in both Fixed Income and Equity markets[7] - Banking revenues also increased by 12% year-over-year, primarily due to growth in Investment Banking[7] - Wealth revenues increased by 24% year-over-year, driven by growth across Citigold, the Private Bank, and Wealth at Work[7] - US Personal Banking (USPB) revenues increased by 2% year-over-year, driven by higher Net Interest Income (NII) in Branded Cards and Retail Banking[7] Expense Management - Expenses decreased by 5% year-over-year, driven by a smaller FDIC special assessment, the absence of a restructuring charge, and lower compensation[13] - Excluding the impact of the FDIC special assessment and divestitures, expenses were down 3% year-over-year[16]

Financial Data and Key Metrics Changes - For Q4 2024, net income was $2,900,000,000 with an EPS of $1.34 and a ROTCE of 6.1% on revenues of $19,600,000,000, reflecting a 12% increase in total revenues driven by growth across all businesses [21][20] - Full year net income increased nearly 40% to $12,700,000,000, with revenues up 5% excluding divestitures [6][23] - The tangible book value per share grew by 4%, and the CET1 ratio ended at 13.6%, approximately 150 bps above the regulatory capital requirement [11][28] Business Line Data and Key Metrics Changes - Services revenue increased by 9% to $19,600,000,000, benefiting from fee growth and higher deposit volumes [23][28] - Markets revenue rose by 6% to $19,800,000, primarily driven by equity growth, which had its highest annual revenue in a decade [23][24] - Banking revenues surged by 32% to $6,200,000,000, largely due to a 42% increase in investment banking fees [24][33] - Wealth revenues increased by 7% to $7,500,000,000, driven by a 15% rise in non-interest revenue [24][36] - U.S. Personal Banking revenues grew by 6%, driven by card growth and lower partner payments [38] Market Data and Key Metrics Changes - The U.S. remains central to the macroeconomic picture, with growth driven by both high-end consumers and a strong corporate sector [5][4] - Emerging markets have reemerged as bright spots, benefiting the company due to its global network [6] Company Strategy and Development Direction - The company is focused on executing its strategy with a commitment to returning capital to shareholders, including a $20,000,000,000 share repurchase program [11][47] - A significant simplification of the organization has been undertaken to enhance decision-making and client partnership [12][13] - The company aims to improve its ROTCE to between 10% and 11% by 2026, viewing this as a waypoint rather than a destination [18][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macroeconomic environment, with expectations for continued revenue growth in 2025 [41][42] - The company anticipates a slight decrease in total expenses for 2025, with a focus on driving efficiencies while investing in transformation and technology [44][45] - Management acknowledged the need for ongoing investments in data and regulatory reporting to meet regulatory expectations [15][54] Other Important Information - The company has exited consumer businesses in nine countries and is on track to complete wind-downs in three others, including Banamex [12] - Investments in technology and transformation totaled $11,800,000,000, focusing on digital innovation and client experience [26][14] Q&A Session Summary Question: Regarding the reduction in the ROTCE target for 2026 - Management clarified that the reduction is linked to higher investments in transformation but emphasized that the strategy is working and they are generating more fee-based revenues [51][52] Question: On the buyback program and its timing - Management expressed confidence in the buyback program, indicating that it reflects the growing earnings power and the need to manage capital effectively [60][88] Question: Expectations for card net charge-offs - Management expects net credit losses to be at the high end of the previously provided range, with seasonal variations anticipated throughout the year [67][68] Question: Clarification on expense guidance and revenue growth - Management confirmed expectations for three consecutive years of lower expenses alongside higher revenues, indicating a focus on operational efficiency [73][74] Question: Competitive positioning in wealth management - Management highlighted the potential for growth in wealth management, emphasizing the global reach and client relationships that can be leveraged for investment opportunities [94][96]