This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Citigroup offers financial products and services globally to retail customers, businesses, governments, and investors through five business lines: services, markets, banking and international, wealth, and U.S. personal banking. In 2026, it is the third-largest bank by revenue in the U.S. behind Bank of America and JPMorgan Chase.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are banks, insurance, and real estate companies.

Fortune Sector Leaders: Financials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

GLOBAL-500-2023-Citi-Group

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Citigroup

Citigroup’s board boasts an impressive array of finance executives, and it scores high on gender diversity. Seven of the 13 directors are women, making it one of the most gender-inclusive boards in finance. Some of the accomplished and influential women on the board include Ellen Costello, the former CEO of BMO Financial; Grace Dailey, former deputy comptroller for Bank Supervision Policy and chief national bank examiner; former Citibank CEO Barbara Desoer; and current CEO Jane Fraser. At least two-thirds of the board is independent. Citigroup has seen solid growth this year. Its first-quarter revenue from its Asia Wealth division grew 20% because of its investment gains and new regional clients. The bank’s stock is up 20% year to date.

Fortune Modern Board 25

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-036.-Citigroup

The third-largest commercial bank in the U.S. jumped eight spots on this year’s list as the company posted impressive revenue growth even with rising interest rates rattling the banking sector. 
<ul> 
 	<li>The bank posted an eye-popping $101 billion in revenue this year, up 27% from the year prior.</li> 
 	<li>The company reported a profit of $14.8 billion for 2022, down 32% from the year prior largely because of rising interest rates.</li> 
 	<li>In 2023, the bank’s first-quarter revenue from its Asia Wealth division grew 20%, boosted by investment gains and new regional clients.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Modern Boards 2022 Citigroup

Citigroup is the third-largest banking institution in the U.S., with over 200 million customer accounts in more than 160 countries. Its directors include five former and two current CEOs—including its own, Jane Fraser; and Renee James, the founder, chairman, and CEO of Ampere Computing. 
 
On the ESG front, in March 2021 Citigroup combined three of its investment-banking groups as part of a broader push to reduce carbon emissions. Fraser has vowed to achieve net-zero greenhouse gas emissions in Citigroup’s financing activities by 2050.  
 
Citigroup’s board lineup scored high on gender equality, board independence, and board expertise. Other notable names on its board include Ernesto Zedillo, former president of Mexico, and S. Leslie Ireland, the former assistant secretary for intelligence and analysis at the Treasury Department.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Citigroup

As of February 2022, Citigroup was the fourth-largest bank in the United States, with assets of $1.7 trillion. Under Jane Fraser, who became the first woman to run a major U.S. bank when she became CEO in March 2021, Citigroup has been reorganizing and refocusing. Revenue dropped 10% in 2021 as the bank began implementing a plan to exit banking and other services in 13 international markets. One of those markets is Russia—but Citi was still doing business there when Russia invaded Ukraine. In April 2022, Citigroup said it could face losses of as much as $3 billion related to its Russia exposure. At the time, Fraser also said the bank had 200 employees continuing to work in Ukraine, assisting clients with payroll, supply chains, and obtaining food.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-082-Citigroup

Citigroup made history in 2020 when it named the head of its consumer banking division, Jane Fraser, as successor to then-CEO Michael Corbat. In doing so, Citigroup became the first bulge bracket U.S. bank to be led by a woman. And so far, Fraser is signaling her willingness to go big and reorganize: Citigroup announced plans to shutter its consumer banking operations in 13 markets and has reshuffled leadership since the executive officially assumed her role. One mess that is still frustrating investors: In mid-2020 loan operators at Citi accidentally wired roughly $900 million to lenders of makeup company Revlon. While some recipients returned the funds, Citi has been unable to recoup hundreds of millions of dollars in the ongoing saga.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-33-Citigroup

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-070-Citigroup

Citigroup shareholders were richly rewarded in 2019 as shares soared a stellar 53%. Those returns come as Citi has rejiggered its business, eliminating hundreds of positions in its trading division as it has invested more deeply in providing banking services to corporations. Long considered second fiddle to the likes of Morgan Stanley and Goldman Sachs in the realm of investment banking, the consumer-facing giant also beefed up its roster of well-connected bankers in that space, as it vies for a top-three spot in the league tables. Under the hood, Citi reshuffled its executive team in 2019, elevating Jane Fraser to the No. 2 spot in management and the leader of its consumer banking business—and positioning her as a strong contender to be the first woman to eventually run a major Wall Street bank.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-031-Citigroup

Citigroup shareholders were richly rewarded in 2019 as shares soared a stellar 53%. Those returns come as Citi has rejiggered its business, eliminating hundreds of positions in its trading division while investing more deeply in providing banking services to corporations. Long considered second-fiddle to the likes of Morgan Stanley and Goldman Sachs in the realm of investment banking, the consumer-facing giant also beefed up its roster of well-connected bankers in that space, as it vies for a top-three spot in the league tables. Under the hood, Citi reshuffled its executive team in 2019, elevating Jane Fraser to the No. 2 spot in management and the leader of its consumer banking business—and positioning her as a strong contender to be the first woman to eventually run a major Wall Street bank.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Citigroup offers financial products and services globally to retail customers, businesses, governments, and investors through five business lines: services, markets, banking and international, wealth, and U.S. consumer cards.

Q3 2026

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Q4 2025

Q3 2025

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Q1 2025

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Citigroup (C): Company Profile, Stock Price, News, Rankings

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Citigroup

citigroup

Hello, and welcome to Citi's third quarter 2025 earnings call. Today's call will be hosted by Jenn Landis, Head of Citi Investor Relations. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Ms. Landis, you may begin.

Thank you, operator. Good morning, and thank you all for joining our third quarter 2025 earnings call. I'm joined today by our Chief Executive Officer, Jane Fraser, and our Chief Financial Officer, Mark Mason. I'd like to remind you that today's presentation, which is available for download on our website, citigroup.com, may contain forward-looking statements, which are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials as well as in our SEC filing. With that, I'll turn it over to Jane.

Thank you, Jenn, and a very good morning to everyone. This morning, we reported another very good quarter with net income of $3.8 billion and earnings per share of $1.86, with an ROTCE of 8%. Now, excluding the goodwill impairment from the Banamex transaction, our adjusted EPS was $2.24, with an adjusted ROTCE of 9.7%. Revenues were up 9%, and every business had record third-quarter revenue and improved returns. We continue to generate positive operating leverage for the firm and in each of our five businesses. The consistently strong results that we've been delivering are a consequence of how we have fundamentally changed the bank in recent years. We're running the businesses differently and capturing the synergies between them. We've added new senior leaders to complement the excellent talent we already had.

We are disciplined stewards of our shareholders' capital, investing it where we should and returning what we don't deploy. The best part is there is much more upside ahead. Turning to the businesses, services had a record quarter with revenues growing by 7%. Pacing growth in cross-border transactions and U.S. dollar clearing reflects the sharp focus we've put on increasing fee revenue. AUCA grew 13%, reaching nearly $30 trillion. New client wins and share gains demonstrate the confidence our clients have in our ability to help them navigate a very dynamic global environment and to lead through innovation. Despite low volatility, markets had a record third quarter. Revenues were up 15% as we continue to drive momentum and traction with clients. Activity in rates was particularly high, and equities grew nicely, with continued progress in prime, where balances were up over 40%, complementing our historical strength in derivatives.

In banking, increased clarity around tariffs and record equity prices fueled CEO confidence. We capitalized on this with investment banking fees up 17%, with continued growth across all products. On the back of our investment in talent, we improved our position in tech, healthcare, consumer, and with sponsors. We continue to add talent to the team, which will help us deepen or establish relationships that will bear fruit over the next two to three years. Wealth had another good quarter, with revenue up 8%, driven by Citigold and the Private Bank. Our emphasis on growing investment assets resulted in record net new investment assets of $18.6 billion and client investment assets increasing by 14%. We announced a new partnership with BlackRock, where they will manage $80 billion of our clients' assets, fully aligning to an open architecture strategy.

USPB had record quarterly revenue of $5.3 billion, reaching 12 straight quarters of positive operating leverage and delivered an ROTCE of over 14%. We drove momentum in branded cards with the well-received launch of our Citi Strata Elite card, and this quarter, we will introduce a new mid-tier product to round out the Citi Advantage portfolio. It will elevate the travel experience for American Airlines customers and create access to premium benefits. In the retail bank, we continue to innovate, including by the launch of instant payments through FedNow and enabling digital issuance for Citibank debit cards. The retail bank continues to strengthen as a pipeline to our wealth business, with $4 billion in deposits transferred in the quarter. Wealth is capitalizing on those transfers, and we continue to see improved investment penetration and significantly higher investment-related revenue from those customers.

We returned over $6 billion in capital to our common shareholders during the third quarter. The $5 billion in share repurchases was $1 billion more than we guided, and this reflects our commitment to returning capital. Year to date, we have repurchased $8.75 billion of shares as part of our $20 billion repurchase plan. We ended the quarter at a common equity tier one capital ratio of 13.2%, over 100 bps above our regulatory requirement at quarter end. The agreement with Fernando Chico Pardo to purchase a 25% equity stake is a very significant step towards the divestiture of Banamex and progresses the overall timeline to de-consolidation and beyond. We are confident that this path is in the best interests of our stakeholders in terms of certainty and value, and we could not be more pleased to have Fernando with his proven track record for investors as our partner.

As we simplify, we continue to invest in technology to catalyze our transformation and become a more agile and modern bank. We have been relentless in our execution, and it is creating results. Over two-thirds of our transformation programs are at or are close to our target state, and we're making very good progress in the remaining areas. I'm particularly pleased with the improvement in our controls this year through standardizing, automating, and digitizing them. We continue to lead in digital payments innovation, enabling payments, clearing, and settlement capabilities to operate on an always-on basis across multiple borders and currencies. As networks evolve towards an always-on future, we are taking the next step by integrating Citi Token services with our 24/7 clearing platform.

This integration will allow Citi clients to seamlessly send funds to third-party banks real-time within our U.S. dollar clearing network, and that's delivering true interoperability across more than 250 institutions. We are committed to embedding AI into how we work. Nearly 180,000 colleagues in 83 countries now have access to our proprietary AI tools and have used them almost 7 million times this year. These tools save hours each day by automating routine work, analyzing data, and creating materials in minutes instead of hours. Our services and USPB teams are using AI to resolve client inquiries faster. In wealth, advisors are gaining real-time insights that help them deliver more personalized advice, and AI-driven automated code reviews have exceeded 1 million so far this year and are dramatically improving our developers' productivity. This innovation alone saves considerable time and creates around 100,000 hours of weekly capacity. That's a very meaningful productivity uplift. In September, we launched a pilot of Agentic AI for 5,000 colleagues.

It allows complex, multi-step tasks to be completed with a single prompt, and the early results are very promising and will expand access to this in the months ahead. Finally, we have launched a firm-wide effort to systematically embed AI in our processes end-to-end to drive further efficiencies, reduce risk, and improve client experience. Taking a step back, the macro environment reflects a global economy that's proved more resilient than many anticipated. The U.S. continues to be a pacesetter, driven by consistent consumer spending as well as tech investments in AI and data centers. That said, there are pockets of valuation frothiness in the market, so I hope discipline remains. Overall, while growth is cooling somewhat and we're keeping an eye on the labor market, America's economic engine is indeed still humming. In Asia, China's domestic spending has slowed.

However, the investments they are making in technology are staggering, and the world should take notice. India's fundamentals of a young, tech-savvy labor force and robust domestic consumption continue to drive high growth there. In Europe, structural challenges still need to be dealt with for the continent to escape this low growth cycle. One certainty through all of this is our commitment and ability to serve our clients with excellence, no matter what challenge they face. As you can see, the steady and disciplined execution of our strategy is delivering better business performance quarter after quarter and improving our returns. The cumulative effect of what we have done over the past years, our transformation, our refreshed strategy, our simplification have put Citi in a materially different place in terms of our ability to compete.

We know success isn't linear, but I am so proud of the progress our people have made and how things are coming together. We intend to end the year with momentum into 2026 as we close in on our medium-term return target. In terms of what will come next, we very much look forward to sharing that with you at our next Investor Day, which will be on May 7th of next year. There is still so much upside left for us to capture, and we look forward to laying out how we are going to do it. With that, I'll turn it over to Mark, and then we'll be happy to take your questions.

Thanks, Jane, and good morning, everyone. I'm going to start with the firm-wide financial results, focusing on year-over-year comparisons, unless I indicate otherwise, and then review the performance of our businesses in greater detail. On slide six, we show financial results for the full firm. This quarter, we reported net income of $3.8 billion, EPS of $1.86, and an ROTCE of 8% on $22.1 billion of revenues, generating positive operating leverage for the firm and each of our five businesses. On an adjusted basis, excluding the impact of a notable item consisting of the goodwill impairment that Jane mentioned earlier, we reported net income of $4.5 billion, EPS of $2.24, and an ROTCE of 9.7%. Total revenues were up 9%, driven by growth in each of our businesses and legacy franchises, partially offset by a decline in corporate other.

Net interest income, excluding markets, which you can see on the bottom left side of the slide, was up 6%, driven by USPB, services, wealth, legacy franchises, and banking, partially offset by a decline in corporate other. Non-interest revenues, excluding markets, were up 12%, as better results in banking, wealth, and legacy franchises were partially offset by declines in corporate other, services, and USPB. Total markets revenues were up 15%. Expenses of $14.3 billion were up 9%, largely driven by the goodwill impairment I just mentioned. On an adjusted basis, expenses of $13.6 billion were up 3%. Cost of credit was $2.5 billion, primarily consisting of net credit losses in U.S. cards, as well as a firm-wide net ACL bill.

Looking at the firm on a year-to-date basis, total revenues were up 7%, driven by growth in each of our five businesses, along with the benefit of foreign exchange translation, partially offset by a decline in all other. Expenses, which have also been impacted by foreign exchange translation, were up 2% and flat on an adjusted basis. We've generated positive operating leverage for the full firm and each of our five businesses and reported an ROTCE of 8.6% and 9.2% on an adjusted basis. On slide seven, we show the expense and efficiency trend over the past five quarters. On an adjusted basis, this quarter, we improved our efficiency ratio by approximately 360 basis points. The increase in adjusted expenses was driven by higher compensation and benefits, along with the impact of foreign exchange translation.

As you can see on the bottom right side of the slide, the increase in compensation and benefits was driven by performance-related compensation, higher severance, and investment in transformation and technology, with productivity and stranded cost reduction partially offsetting continued growth in the businesses. Year to date, we have incurred approximately $650 million of severance, slightly above our original expectation for the full year. As we've said in the past, we are very focused on managing our expense base in a disciplined manner, reducing stranded costs and generating productivity savings to largely self-fund investments in transformation, technology, and the businesses. This discipline, combined with top-line revenue momentum, will continue to drive improvement in our operating efficiency. On slide eight, we show consumer and corporate credit metrics.

As I mentioned, the firm's cost of credit was $2.5 billion, primarily consisting of net credit losses in U.S. cards, as well as a firm-wide net ACL bill. Our reserves continue to incorporate an eight-quarter weighted average unemployment rate of 5.2%, which includes a downside scenario average unemployment rate of nearly 7%. At the end of the quarter, we had nearly $24 billion in total reserves, with a reserve-to-funded loan ratio of 2.7%. We continue to maintain a high credit quality card portfolio, with approximately 85% to consumers with FICO scores of 660 or higher and a reserve-to-funded loan ratio in our card portfolio of 8%. It is worth noting that across our U.S. cards portfolios, delinquency and NCL rates continue to perform in line with our expectations. Looking at the right-hand side of the slide, you can see that our corporate exposure is primarily investment grade, and while corporate non-accrual loans increased in the quarter, resulting from idiosyncratic downgrade, they remain low, as do corporate net credit losses.

We feel good about the high-quality nature of our portfolios, which reflect our risk appetite framework and our focus on using the balance sheet in the context of the overall client relationship. Turning to capital and the balance sheet on slide nine, where I will speak to sequential variances, our $2.6 trillion balance sheet increased 1%, driven by growth in cash and loans. End-of-period loans increased 1%, driven by markets and services. Our $1.4 trillion deposit base remains well diversified and increased 2%, driven by services and wealth. We reported a 115% average LCR and maintained over $1 trillion of available liquidity resources. We ended the quarter with a preliminary 13.2% CET1 capital ratio, which is 110 basis points above our 12.1% regulatory capital requirement during the third quarter.

Effective October 1st, our new standardized CET1 capital ratio requirement is 11.6%, which incorporates the reduction in our SCB from 4.1% to 3.6%. That said, we're still waiting for clarity from the Federal Reserve on whether the averaging of SCB results from the previous two consecutive years will become effective in the next few months. Given this uncertainty, we will be targeting a standardized CET1 ratio closer to 12.8%, which incorporates a two-year average SCB of 3.8%, as well as a 100 basis point management buffer. As we've said in the past, we remain very focused on efficient utilization of both standardized and advanced RWA while providing the businesses with the capital needed to pursue a creative growth opportunity. We will continue to prioritize returning capital to shareholders through buybacks, as evidenced by the $5 billion of buybacks in the third quarter and nearly $9 billion year to date.

Turning to the businesses, on slide 10, we show the results for services in the third quarter. Revenues were up 7%, driven by growth across both TTS and security services. NII increased 11%, primarily driven by the increase in average deposit balances, as well as higher deposit spread. While NIR was down 3% due to the impact of higher lending revenue share, total fee revenue was up 6%. We see very strong activity and engagement with corporate clients and momentum across underlying fee drivers, with cross-border transactions up 10%, U.S. dollar clearing volume up 5%, and assets under custody and administration up 13% as we continue to roll out our innovative products and services with digital capabilities into new markets. Expenses increased 5%, primarily driven by higher compensation and benefits, including severance, as well as higher volume and other revenue-related expenses.

Average loans increased 8%, driven by continued demand for trade loans, as we continue to support clients as they plan for potential shifts in trade corridors. Average deposits also increased 8%, with growth across both North America and international, largely driven by an increase in operating deposits. Services generated positive operating leverage for the fifth consecutive quarter and delivered net income of $1.8 billion, with an ROTCE of 28.9% in the quarter and 26.1% year to date. Turning to markets on slide 11, revenues were up 15%, driven by growth across both fixed income and equities. Fixed income revenues increased 12%, with rates and currencies up 15%, largely driven by growth in rates amid policy uncertainty and elevated client activity. Spread products and other fixed income were up 8%, largely driven by higher mortgage trading, higher financing activity, and lower commodities activity.

Equities revenues were up 24%, driven by higher client activity in derivatives and increased volumes in cash, as well as continued momentum in prime, with balances up approximately 44%. Expenses increased 5%, primarily driven by higher compensation and benefits, along with the impact of FX translation. Transactional and product servicing expenses were down as growth in transaction volumes was more than offset by efficiency action. Average loans increased 24%, primarily driven by financing activity and spread products. Markets generated positive operating leverage for the sixth consecutive quarter and delivered net income of $1.6 billion, with an ROTCE of 12.3% in the quarter and 13.5% year to date. Turning to banking on slide 12, revenues were up 34%, driven by growth in corporate lending and investment banking. Investment banking fees increased 17%, with growth across all products.

M&A was up 8%, with momentum across several sectors and with continued share gains with financial sponsors and more sell-side activity. ECM was up 35%, with growth across all products, notably in convertibles, given the favorable environment. DCM was up 19%, driven by leveraged finance. Corporate lending revenues, excluding mark-to-market on loan hedges, increased 39%, driven by an increase in lending revenue share. Expenses increased 2%, driven by higher volume-related transactional and product servicing expenses, as well as compensation and benefits, which includes recent investments we've made in the business. Cost of credit was $157 million, which included a net ACL bill of $148 million, driven by changes in portfolio composition, including exposure growth. Banking generated positive operating leverage for the seventh consecutive quarter and delivered net income of $638 million, with an ROTCE of 12.3% in the quarter and 10.7% year to date.

Turning to Wealth on slide 13, revenues were up 8%, driven by growth in Citigold and the Private Bank, partially offset by a decline in Wealth at Work. NII, which you can see on the bottom left side of the slide, increased 8%, driven by higher deposit spread, partially offset by lower mortgage spread. NIR increased 9%, driven by higher investment fee revenues as we grew client investment assets by 14%, despite a reduction of approximately $33 billion related to the sale of our trust business. We had record net new investment assets of $18.6 billion in the quarter and over $52 billion in the last 12 months, representing approximately 9% organic growth. Expenses increased 4%, driven by investments in technology and volume-related transactional and product servicing expenses, partially offset by continued productivity savings. End-of-period client balances continued to grow, up 8%.

Average loans were up 1% as we continue to be strategic in deploying the balance sheet to support growth in client investment assets. Average deposits were flat, as operating outflows and a shift from deposits to higher-yielding investments on Citi's platform were offset by net new deposits, as well as client transfers from USPB. Wealth had a pre-tax margin of 22%, generated positive operating leverage for the sixth consecutive quarter, and delivered net income of $374 million, with an ROTCE of 12.1% in the quarter and 12.5% year to date. Turning to U.S. Personal Banking on slide 14, revenues were up 7%, driven by growth in branded cards and retail banking, partially offset by a slight decline in retail services. Branded cards revenues increased 8%, driven by higher loan spread, higher interest earning balances, which were up 5%, and higher gross interchange, partially offset by higher rewards costs.

We continue to see strong customer engagement, with spend volume also up 5%. Retail banking revenues increased 30%, largely driven by the impact of higher deposit spread and balances. Retail services revenues were down 1%, largely driven by higher partner payment accrual. Expenses were flat, as lower advertising and marketing expenses, as well as compensation and benefits, were offset by higher volume-related transactional and product servicing expenses. Cost of credit was $1.8 billion, driven by net credit losses in cards. Average deposits increased 6%, as net new deposits were partially offset by the client transfers to Wealth that I mentioned earlier. USPB generated positive operating leverage for the 12th consecutive quarter and delivered net income of $858 million, with an ROTCE of 14.5% in the quarter and 12.9% year to date.

Turning to slide 15, we show results for all other on a managed basis, which includes corporate other and legacy franchises and excludes the vestige-related items. Revenues were down 16%, with a decline in corporate other, partially offset by an increase in legacy franchise. The decline in corporate other was driven by lower NII, resulting from actions that we've taken over the past few quarters to reduce the asset sensitivity of the firm in a declining rate environment, as well as lower NIR. Growth in legacy franchises was driven by Mexico, which included the impact of Mexican peso appreciation, partially offset by the impact of continued reduction from our exit and wind-down markets. Expenses increased 4%, with growth in corporate other, which included higher severance, largely offset by a decline in legacy franchises.

The cost of credit was $331 million, primarily consisting of net credit losses of $297 million, driven by consumer loans in Mexico. As you can see on the bottom right side of the slide, the vestige-related expense items in the quarter included the $726 million goodwill impairment, which is capital neutral and based on the fair value of 100% of the entity. On slide 16, we provide an overview of the agreement with Fernando Chico Pardo to purchase a 25% equity stake in Banamex. This transaction progresses the overall timeline to exit Banamex, but is subject to certain closing conditions and local regulatory approval. Before I walk through the financial impacts related to this stake at closing, I'd like to ensure you understand the net capital impact at a full exit.

The cumulative capital benefit to Citi upon full exit will be driven by two things: one, the capital release associated with the RWA reduction, and two, the cumulative impact of any potential gains and losses on sales. However, between now and then, there will be a few steps to get there, and it starts with this transaction. Looking at the right-hand side of the page, at the time of close and subject to the book value of Banamex at closing, we expect assets to increase by approximately $2.3 billion for the total consideration paid for the 25% stake, which reflects the fixed price-to-book value multiple of 0.8. Total equity will also increase by a net $2.3 billion, but it will be driven by a few factors.

First, there will be a temporary benefit to stockholders' equity due to the reclassification of the negative cumulative translation adjustment from stockholders' equity to non-controlling interest, which will be slightly offset by the loss on sale. Second, the non-controlling interest will increase by the 25% of the Banamex book value sold, but this will be largely offset by the CTA that was reclassified as part of this transaction. Net-net, a $2.3 billion increase in assets, and on the equity side, a $1.8 billion increase in stockholders' equity and a $500 million increase in non-controlling interest. At de-consolidation, there will be balance sheet impacts and P&L impacts. As it relates to the balance sheet, all of Banamex assets and liabilities will be removed from our balance sheet and be partially offset by any remaining equity stake.

In terms of the P&L, the entire amount of the cumulative translation adjustment related to Banamex, which is approximately $9 billion, will flow through the P&L as a loss and will reverse the temporary capital benefit from prior sale. Therefore, at de-consolidation, the cumulative impact of CTA is capital neutral. To wrap it up, while there are a number of accounting nuances between now and full exit, the cumulative capital impact to Citi will be the full release of RWA associated with Banamex and the cumulative impact of any potential gains and losses on sales. Turning to the full year 2025 outlook on slide 17.

Before I get into the outlook, I want to say how proud I am of the company as we execute against our strategy and drive top-line revenue growth, which continues to be fueled by our investments across the businesses and in key areas such as technology and data. We've made significant progress in terms of improving returns with an adjusted year-to-date ROTCE of 9.2%. Now, with regard to the outlook, given the very strong year-to-date top-line revenue growth of 7%, we remain confident in our ability to exceed $84 billion in revenues for the year. We now expect NII ex-markets to be up around 5.5% for the full year, incorporating stronger performance as well as the impact of FX relative to our previous expectations. For NIR ex-markets, we expect continued momentum in underlying fee drivers.

In markets, historically, we've seen revenues decline 15% to 20% from the third to fourth quarter. However, given the strong performance in the third quarter, the sequential decline could exceed that range this year. Now, turning to expenses, our year-to-date expense base incorporates both the level and mix of revenue we've seen, as well as the impact of FX. Given what I just mentioned about revenues, full-year expenses will come in higher than we previously guided. You should expect the efficiency ratio for the full year to be consistent with the revenue and expense guidance that we've provided during the course of the year, which is slightly below 64%, excluding the impact of the goodwill impairment this quarter. In terms of credit, our expectations for the year remain unchanged, and we will continue to repurchase shares in the fourth quarter under our $20 billion program.

As we take a step back, the performance in the quarter and so far this year represents significant progress towards our goal of improved firm-wide and business performance. We remain steadfast and focused on executing our transformation, achieving our ROTCE target of 10% to 11% next year, and further improving returns over time. With that, Jane and I would be happy to take your questions.

At this time, we will open the floor for questions. If you would like to ask a question, please press star five on your telephone keypad. You may remove yourself at any time by pressing star five again. Please note, you will be allowed one question and one follow-up question. Again, that is star five to ask a question. We'll pause just a moment. Our first question will come from Mike Mayo with Wells Fargo. Your line is now open. Please go ahead.

Hi. I think you said you're at least two-thirds done with a lot of the transformation, and I assume that relates to the consent order. Can you just give us an update on your actions with the consent order as it relates to risk compliance, controls, and reg data? If you can elaborate on the reg data part, because in this current regulatory environment, I don't know why so much effort needs to go to something that's more process-oriented, which they're trying to get away from, as opposed to just financial strength. Thank you.

Good morning, Mike. Yes, I do feel good about the progress we've made. As you refer, over two-thirds of our programs are at or mostly at Citi's target state. Some of the biggest bodies of work are now embedded just into how we run the bank and operate it on a BAU basis. You've heard me talk about risk and the progress we've made in compliance, and those are two areas where we are largely at the target state and are running through sustainability. We're also now at the back end of the working controls. This is a big body of work this year to drive automation to implement more preventative controls. We now have preventive controls for any large and anomalous payments in 85 countries. That covers about $1.3 trillion in payments daily, covers 55 payment apps.

We also have preventive controls covering over 99% of manual payment flows in our institutional businesses. We've standardized controls to common processes across the firm. That was very much enabled by the org simplification that we did. We're now in line with peers in terms of level of automation and preventative controls. All of this work is going to help us implement AI across our processes, as I referred to in the earlier remarks. Data for reg reporting is going to take more time, but we have made significant progress in the last 12 months. Through our own testing, we're seeing really improved, dramatically improved accuracy for our most critical regulatory reports. We're also putting in tech and AI-enabled capabilities to ensure we sustain these improvements on a BAU process and basis. In terms of regulatory environment, we are clearly seeing changes in the reg environment coming from D.C.

I think, like everyone, we welcome the proposed changes, including recalibration to center on safety and soundness. For us, we're on track with what we're doing across all the programs, including data. We're focused on getting over the finishing line for our work. We're looking forward to the transformation expense coming down next year, because as we complete the different bodies of work, the associated expense comes off both as a result of the implementation, but also from the efficiencies that we're gaining.

A short follow-up, the transformation expense for 2025, maybe this is for you, Mark, you said it was going to be more than $3 billion. Was it like $3.5 billion, $4 billion, $5 billion, any kind of range for that?

Mike, I'd say it's a little bit under $3.5 billion in 2025.

As Jane mentioned, you know, a lot of work being put in place to execute on that more efficiently, which is going to help bring that number down in 2026.

Your next question will come from Betsy Graseck with Morgan Stanley. Your line is now open. Please go ahead.

Jane, I did just want to understand how you're thinking about the Banamex transaction. I heard all the prepared remarks, and we understand that you prefer to go with the IPO route in ultimate value for shareholders. I guess I wanted to understand how you're thinking about the timing between the offers that you've received versus the IPO timing that you are planning on executing?

Is there a timeframe in mind for ultimate value determination? Thank you.

Yeah. Yep. First of all, I just say, look, the 25% stake is a very significant step in our path towards de-consolidation and ultimately a full exit, which is what everyone is focused on. We firmly believe that this transaction and the subsequent IPO is going to both maximize value for our shareholders and critically has a high degree of certainty around it. Those two have been our north stars as we've been going through this process. I would also just point to the Mexican president and her government have been publicly very supportive of this investment and our path forward. That obviously gives us a higher degree of comfort around the certainty of close.

Now, when we look at this path forward, I think the investment by Fernando is a real show of support for Banamex, and we believe his partnership is going to be very valuable as we move towards an IPO, de-consolidation, and ultimately full exit. There are a couple of big reasons for that. One, he's a highly reputable business leader. He's got a 50-year track record of really driving value in his investments. He's going to be a strong partner in realizing greater value from Banamex. He also brings a lot of experience and credibility that is very attractive to other investors, and his investment alone is a strong endorsement of Banamex's relevance and potential. That's also going to be very helpful as we look at bringing other investors in either through the IPO and the like into the mix here.

In terms of the next steps, the 25% stake requires regulatory approval in Mexico. That typically takes 9 to 12 months. For obvious reasons, it makes a lot of sense to get Fernando's regulatory approval ahead of the IPO. He has filed his regulatory approval. He's already in with the government, so that will go through the process. He is not dilly-dallying and hanging around on this, I'm delighted to say. You know we will be ready to move forward once we get those approvals. We're not hanging around either in terms of getting all the work done for that.

Okay. The 9 to 12 month approval timing, when does that commence?

That's already started because his regulatory approval filing was put in this week.

Your next question will come from Glenn Schorr with Evercore.

Hello. What I want to get at with this question is evolution versus revolution in Stablecoin adoption. I've seen some press releases. I've seen you join the Euro Stablecoin Banking Coalition. I saw your announcement on Citi Payments Express. I'm assuming you're making a lot of investments towards this evolution. What I want to do is take your pulse on what is the pace of Stablecoin adoption? How important is it to your traditional banking and payments pipelines? Do you feel like you're ahead of the curve and you can make more money, not less, as this all plays out? Thank you so much.

Yeah, of course, Glenn. Look, I want to take a step back on this one because, frankly, for our client base, the institutional client base, we see tokenized deposits as delivering what the client needs. This is an area that we've invested in most heavily. What the clients are after is real-time money movement with minimal to no friction and low cost. As we talked about last earnings call, we've been driving innovation around digital assets for many years. What is it our clients want? They want interoperable, multi-bank, cross-border, always-on payment solutions. They want it provided in a safe and sound manner, and they want all the complexities solved for them: compliance, reporting, accounting, tax, AML. That, frankly, is best done by tokenized deposits. We are that one-stop shop for our clients. We're constantly linking in new capabilities, emerging technologies. We're bringing in partners.

We offer that holistic killer app for the institutional clients. You saw us this earnings call talking about linking our Citi tokenized services to the 24/7 U.S. dollar clearing network. That means we can facilitate transactions across 250 banks in 40+ markets. That allows clients to frictionlessly transfer funds 24/7 to suppliers and third parties who hold accounts within Citi's extensive 24/7 U.S. dollar clearing network. We are seeing demand and adoption increasing, but frankly, the gating factor is our clients' treasuries departments being ready for an always-on environment, and they just aren't at the moment. What does that mean for Stablecoin? We will stand ready to support our clients' needs, whatever they are. We view Stablecoin as another option in the overall digital asset toolkit. It's got more friction because of the on-off ramp.

It's got more friction because of the tax, the accounting, the AML, these other requirements that our tokenized deposit capabilities avoid. We will continue to provide the on-off ramp solutions for Stablecoin exchanges. We'll be providing and are providing custodial solutions to crypto assets to our asset manager clients. We'll be providing corporate cash management services to these Stablecoin providers. We're about to go live with a number of new capabilities in that. We're considering issuing our own true Citi Stablecoin. I think there's an overfocus on Stablecoin at the moment, whereas as a major payments player, most of this is going to get solved by the tokenized deposit capabilities.

I love it. I can't wait for May. Maybe just this is a super quick follow-up. You're fired up about tokenized deposits and what that can mean, and you're way ahead of that. Is there a potential for the tokenization of all securities?

Does that change how financial markets operate in general? I just wonder if you could expand that thought, and then I'll back up.

Absolutely. I was just talking about the payments piece. In the future, clients are going to want solutions that seamlessly offer financing, securities, issuance, and settlement in a regulated, trusted environment. You can imagine oil. You can imagine equities. This is going to go much more broader, and we will be providing that as part of our toolkit. That is definitely in the equation here. It's really terrific that the regulators are now letting us innovate in a responsible way because I think that is going to help the development of the market as we and other banks participate in this space. It will really help scale up.

Your next question will come from John McDonald with Truist. Your line is open. Please go ahead.

Thank you. I wanted to ask about the efficiency path for next year. It seems like you have some potential tailwinds to drive expenses lower next year, potentially lower severance, transformation spend, and stranded costs. Mark, I wanted to ask, is that fair that you see a path for directionally down expenses next year, even if revenues are strong? Do you still see the potential to exit next year at an efficiency ratio below 60%?

Thanks, John, and good morning. I'd point to a couple of things as we think about 2026. I'd just remind you and others that we're targeting an ROTCE of 10%-11% next year. It's important that we continue to show progress in our returns across the franchise. The second thing I'd point to is that, if I just kind of go back to where we are year to date for a second, we are demonstrating strong top-line momentum. The year-to-date revenue is up 7%. If you look at our expenses against that, leaving out the goodwill impairment, our expenses are flat. We're showing very strong top-line momentum and very strong discipline around managing our expense base. As I think about 2026, that has to continue for us to deliver on the 10%-11%. That is to say, continued top-line momentum.

I've given, obviously, it's more of what you've seen through the year-to-date performance and continued expense discipline. That expense discipline is going to consider at least two things. One, are the greater efficiencies that we've talked about in the past. You've mentioned some of those. The transformation expense coming down, the legacy/stranded costs continuing to come down, productivity from BAU activity. I've mentioned in the past a lower severance, a more normalized severance. It's also going to require investments in order to continue to fuel that top-line momentum. Investments, one, that's tied to those higher revenue levels, but also continued investments in parts of the franchise, like banking, and parts of the franchise, like services. You just heard Jane mention the investments we're making in token services. Striking that right balance so that we are not only delivering 10%-11%, but north of that, beyond 2026, is really important.

What does all of that mean? That means as I think about 2026, I lead with the 10%-11%. I follow on by productivity and the need for investments. I'm targeting the less than 60% as I come out of 2026 or in 2026, as I've said before.

Great. That's really helpful. Just a quick follow-up. Thinking a little bit longer term, what's the ultimate end state for the $3.5 billion or so in transformation spend? Does it go away? Does it morph into kind of a regular BAU investment spend at some point? How does that evolve over time?

I'm smiling here, John, because I knew as soon as I shared the number, the very next question would be what happens with it, right?

I think, as I mentioned, it's going to come down in 2026 for all the reasons we've mentioned, including making significant progress on the transformation. We'll obviously share more with you in terms of where the expense base is going and the transformation expenses are going beyond that at Investor Day. I'll ask you to kind of stay tuned as it relates to that. I don't want to miss the opportunity to state again that in order for us to get to the improved returns beyond 2026, we've got to have that right balance of squeezing out as much as we can in efficiencies and redeploying so that we can capture growth and upside as we serve our clients beyond 2026.

I'd encourage everyone just to look at the track record we've got. We've been consistently growing revenues whilst investing in the transformation, whilst investing in the businesses. At the same time, we've been keeping the expense base at a low and very disciplined level. That's a discipline you can expect to see us continuing.

Your next question will come from Jim Mitchell with Seaport Global. Your line is open. Please go ahead.

Hey, good morning. Mark, maybe just a question on NII. I think based on the guidance for this year, it seems like you're flat to up in the fourth quarter, as you guys have pointed out in your Qs. You have limited sensitivity to U.S. dollar. How is 4Q a decent jumping-off point for next year? Can you grow from that level? How should we think about the puts and takes around asset repricing and balance sheet growth and headwinds from rates?

Yeah, you know what I'd say is a couple of things. One, I do expect to see continued growth in NII as we go into 2026 at this point. We're obviously putting together our operating budgets now, but I do anticipate continued growth. I think there are a couple of drivers, many of which have played out through most of the year here. One is I expect that we'll see continued growth in deposits, operating deposits, deposits on our retail banking side, both of which have shown up quite healthily in the quarter. I expect that to continue. I expect to see continued loan momentum, particularly on the branded cards side, but also in the trade lending activity, which also showed up very nicely this quarter.

I'd expect that the investment portfolio that you've heard me talk about before will continue to roll off and mature, and we'll be able to deploy that, yet still at higher rates in cash and other securities as we go through 2026. The final piece is, obviously, I would also expect that there'd be more rate cuts and the discipline around pricing and the importance of us reminding our clients that our offering is a lot more than just holding their deposits will help to mitigate some of that pressure. When I put all of that together, I do see continued growth in NII, perhaps not at the same pace, but certainly continued growth ex-markets as I go into 2026. I hope that helps a little bit.

No, that's very helpful. Maybe just on the capital target of 12.8% and the stepped-up buybacks this quarter, is this a pace we should expect until you get to 12.8%? Just sort of curious on your thoughts on how quickly you get to 12.8%.

I'm smiling again, Jim, because the last quarter I said that we weren't going to give guidance on a quarterly basis as it relates to buybacks. I want to stick to that. I would remind you that we do have a $20 billion buyback program that's out there. We've been making good progress against that. We'll continue to make progress against that. 12.8% is what we will target from a CET1 ratio. I think you'll see that our 13.2% come down towards that over the next couple of quarters. We're going to strike the right balance between deploying capital back into the business at accretive returns in order to continue to drive growth that improves returns and returning capital to shareholders, particularly given where we're trading, right?

While we have seen good performance in the stock over the course of the year, we're still at and around kind of one times tangible book value. I think there's more upside to the stock. We want to strike that right balance between return on and return up.

Your next question will come from Erika Najarian with UBS. Your line is open. Please go ahead.

Hi, good morning. My first question, Mark, is just wanted to make sure I understand all of the technical nuances that you laid out on slide 16. The CTA impact is essentially neutral at de-consolidation. In addition, we should get the capital release from the RWA reduction. I think it was $27 billion from the Mexican financial statements and any gains and losses on sales. The CTA is separately capital neutral, but the ultimate capital benefit will be determined by that capital release and the ultimate valuation of Banamex. If I'm understanding that correctly, had to slip it in there, what is the allocated TCE to Banamex?

Sure. Let me just kind of clarify one point. I think you've largely got it, which is there's an important distinction between de-consolidation and full exit. The de-consolidation, as you point out, will trigger that CTA flowing through the P&L, and ultimately that will be capital neutral, right? That is absolutely correct. At the full exit, what we would expect in the way of the capital impact will be the capital associated with the risk-weighted assets and the gain or loss, the cumulative gain or loss on sale. The capital associated with the risk-weighted assets, the risk-weighted assets are about $37 billion, okay? You can kind of run the math of a 13.2% against the $37 billion and get a proxy for how much capital we have allocated here.

Perfect. My second question is for Jane. Jane, your reward for all the improvement that you've shown is a higher bar, right? I think that is what you're seeing. We're all looking forward to this May Investor Day. I guess this is a two-part question. As you approach the 10% to 11% return on tangible common equity goal for next year, and you think about being two-thirds of the way done with the transformation, is May the right time to address maybe more end-state capital targets the way JPMorgan has addressed? Wells also gave us an update today. If we get more regulatory certainty, you've obviously gotten a lot of volatility in the past from stress test results. Especially as we think about de-consolidating and fully exiting Banamex and the regulatory momentum, is 100 basis points still the right buffer for this company as we look forward?

Wow, there's a lot in that. Let me just try and unpick a few pieces of it. We've always been cear 10%-11% ROTCE target is a waypoint, not a destination. In May, as I talked about earlier, we see a lot of different areas of upside. Mark talked about some of the different areas earlier in the call on the revenue growth dimension. We'll lay out what do we see for the different businesses, what is the path forward, and therefore, what are the longer-term targets that we're expecting to see. In terms of the regulatory environment, I think we're very happy to see a lot of the proposals getting more clarity. We saw ESLR coming through. We would expect to see GCIP, Basel III, CCAR with much more clarity in the first quarter.

That will be good timing for being able to lay out what that means for the May Investor Day, assuming that remains at pace. Obviously, not in our hands is the timing around it. I think you will end up with much more clarity about what is the end state, if there ever is an end state. Mark, why don't you jump in?

Yeah, the only thing I'd add to that is, you know, with the progress we're making in executing on the strategy, I'm sure you've noticed that we're generating a more steady and predictable earning stream, and on top of that, growing our earnings. That, in part, has shown up in the stress capital buffer reduction that we've now seen for two years in a row. Now, we have to get clarity on kind of how that's going to be applied, whether it be averaging or not. I highlight that because we're going to continue the work in how we're running the franchise in order to improve and therefore continue to reduce what happens in a CCAR-stressed analysis. The other piece that I'd highlight is there are obviously other aspects to the regulatory environment that are still in flux, although they look like they will be favorable.

GCIP, the Basel III endgame, et cetera. By the time we get to May, we hope to have clarity on that, which can therefore inform how we think about the future. As it relates to the management buffer, you've heard me mention repeatedly that we look at that all the time. We're constantly looking at everything from the certainty we're getting in the regulatory capital requirements, and that's improving, as we mentioned before, to how we think about internal stress analysis and the volatility in RWA and the like. We'll continue to look at that and look for opportunities where it makes sense to reduce that. We'll share that if and when we get to that conclusion.

Your next question will come from Ebrahim Poonawala with Bank of America. Your line is open. Please go ahead.

I guess good afternoon at this point. Just a quick question, Mark. You talked about credit reserves and the unemployment rate that you have there. Just talk to us when we think about, and I think Jane said, like some softness in the economy, when we think about the consumer cards book, expectations, any kind of red or yellow flags that you're seeing there. If you don't mind addressing, like I'm looking at sort of the non-accrual loans, a pretty decent jump in sort of corporate non-accruals quarter over quarter. Was that a one-off? Do you expect that as some of the sort of, I guess, banking book seasons? We'd love some perspective there.

Citigroup (C) Q3 2025 Earnings Call Transcript

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