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

Q2 2026

Q1 2026

Q4 2025

Q3 2025

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Q1 2025

Q4 2024

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

legacy

Citigroup

citigroup

Hello, and welcome to Citi's Fourth Quarter 2025 earnings call. Today's call will be hosted by Jen 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 Fourth 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 filings. With that, I'll turn it over to Jane.

Thank you, Jen, and good morning to everyone. This morning, we reported another strong quarter to close out what was a very good year of progress, indeed. We got a tremendous amount accomplished in 2025, and I am proud of our team. That said, and we've always been clear about this, we are on a multi-year journey, and we remain focused on executing our strategy and transformation, and I'm excited to update you on our progress in greater detail and to outline the next phase of our journey at our Investor Day on May the 7th. In terms of the quarter, excluding the impact of a notable item, our adjusted EPS was $1.81, and our adjusted ROTCE was 7.7%. For the full year, our returns improved to 8.8%, a 180 basis points improvement after adjusting for Banamex and Russia, and adjusted net income surpassed $16 billion.

With adjusted revenues up 7%, we delivered positive operating leverage in every one of our five businesses, as well as the firm overall for the second straight year. Each business had record revenues and improved their returns by between 250 and 800 basis points. Services continued to deliver, with revenues up 8% and an ROTCE of over 28% for the year. Fee revenue grew by 6% and cross-border transaction value by 10% as we deepened client relationships and supported them across our global Securities Services assets under custody and administration grew 24% as a result of existing client growth and the onboarding of new client assets. We continue to innovate to provide our clients with always-on cross-border multi-bank solutions. In 2025, we integrated Citi Token Services with 24/7 US Dollar clearing, launched in Hong Kong and Dublin, and added Euro as a transaction currency.

We also expanded our industry-leading Citi Payments Express to 22 Markets, and it processed 40% of TTS's payments during the fourth quarter. In October, we began a journey to a unified custody infrastructure and enabling near real-time asset servicing by launching single event processing. All the investments we have made translated to growth and robust market share gains. Markets delivered record revenues, even surpassing our 2020 performance. Combined with better capital efficiency, ROTCE increased to 11.6%. Fixed income was up 10% despite a challenging year for us in commodities. Equities revenues of $5.7 billion was also a record, with an over 50% increase in prime balances as that business continues to gain share.

Banking had a record year, including the best quarter and year for M&A revenues in Citi's history as we gained share in our target sectors as well as in leverage finance and with sponsors, resulting in an 11.3% ROTCE. Citi had a role in 15 out of the 25 largest investment banking transactions of the year and advised Boeing, Pfizer, Nippon Steel, Mars, Johnson & Johnson, Blackstone, and TPG. This all drove a 30 basis point year-over-year increase in our investment banking wallet share. Overall, revenues were up 32% while keeping expenses flat, showing the discipline we are applying to this business. Wealth delivered another year of strong performance in 2025, including 14% revenue growth, 8% organic NNIA growth, and an ROTCE of over 12%.

It's a direct result of the strategy we've executed over the past two years, attracting and retaining industry-leading talent and driving better operating efficiency that's allowed us to invest in key growth areas. And that includes notable partnerships with industry leaders such as BlackRock that have enhanced our open architecture platform and are elevating the client experience. The integration of the retail bank into Wealth makes it easier to deepen share with existing clients and unifies our U.S. deposit franchise. USPB's returns more than doubled for the year, reaching mid-teens driven by continued product innovation, solid customer engagement, and our high-quality card portfolio. Branded Cards revenue grew 8%, driven by robust engagement from customers in spend, borrowing, and new account acquisitions across our proprietary offerings and our American Airlines and Costco partnerships. While Retail Services showed some revenue softness, the business's returns remained solid.

In terms of capital, we repurchased over $13 billion in common shares during the year, including $4.5 billion in the fourth quarter as part of our $20 billion plan. Increasing our dividend resulted in a total capital return of over $17.5 billion, the most since the pandemic. We entered the year with a CET1 ratio of 13.2%, which is 160 basis points above our regulatory capital requirement. So we have ample capital to support our growth, and we will continue to return excess capital to our shareholders. We reached some significant milestones in terms of our simplification as we near the end of our international divestitures. We signed an agreement to sell our consumer business in Poland, and we are receiving final approvals to sell our remaining operations in Russia.

Just three months after announcing it, we closed the sale of a 25% stake of Banamex to one of Mexico's most prominent investors. We have made significant progress in terms of our transformation. Over 80% of our programs are now at or nearly at our target state. While there is more work to do, I'm very pleased with how far we've come, as evidenced by the OCC's removal of Article 17 of the consent order in December. When combined with how we're deploying AI, this bank is being truly transformed in terms of its operational capabilities, its controls, and its tech infrastructure compared to five years ago. We're also building AI into the processes that move money, manage risk, and serve clients. Colleagues in 84 countries have now interacted with our proprietary tools over 21 million times, and we continue to see adoption increase.

It's now above 70%. With much of our transformation behind us, we are shifting our focus to how we can use AI tools and automation to further innovate, re-engineer, and simplify our processes beyond risk and controls to improve client experience while reducing expenses. We have started with just over 50 of the largest and most complex processes in the firm, ranging from KYC to loan underwriting, and we're moving with speed to systematically implement modern and efficient solutions. Turning to the macro, the global economy has powered through many shocks over the past few years, creating optimism and confidence that economic growth is poised to continue. With inflation now at normal levels globally, almost every central bank is becoming more accommodating. And while the labor market in the U.S. has softened, capital investment remains strong, especially in tech.

And it's the combination of that CapEx, the health of the consumer, the tax bill benefits, and anticipated rate cuts that should be enough to sustain growth. China's relying on exports to grow and compensate for slower domestic consumer demand, and Europe has taken some steps to accelerate its anemic growth, and we're hopeful that Germany can create a meaningful stimulus. We have shown that our strategy can deliver results in different environments. Our corporate clients are in great financial shape, and as you know, are predominantly investment-grade in terms of credit quality. We are very well positioned to continue to help them navigate, whether through our balance sheet or expertise developed from being on the ground in almost 100 countries. So we enter 2026 with visible momentum across the firm.

You see it quarter after quarter in the business performance, the improvement in our risk and control environment, the investments in innovation, our ability to attract top talent, and the pace of capital return. As I told our people at a town hall in December, this was the year we changed the conversation around Citi. We are now decidedly on the front foot, but we aren't taking any victory laps. We are intensely focused on completing our transformation and maintaining our trajectory to deliver the 10%-11% ROTCE we have spoken to you about, as well as another year of positive operating leverage. Those are our top priorities for this year, and we are really looking forward to hosting you for Investor Day, where we will lay out how we will take our strategy forward and our path for improving our returns in a sustainable manner.

As you'll see, we are just getting started in capturing the upside in front of us. Now, before I turn over to Mark, I want to say a few things about him. As you know, this is Mark's last call as CFO, and he has done a fantastic job for us, as I know you would all agree. He helped guide the bank through the pandemic, provided continuity during my transition to CEO, and has driven a significant part of the remediation work for the consent orders. Through it all, he has been a level source of strength and wisdom. There are a few people who are responsible for where Citi stands today, especially in terms of its financial performance, Mark. I wanted to take a moment to thank him for all he has done for our firm. Gonzalo has big shoes to fill indeed.

With that, I will turn it over to Mark, and then we will both be happy to take your questions.

Thanks, Jane, and good morning, everyone. I'm going to start with the firm-wide fourth quarter and full-year financial results, focusing on year-over-year comparisons, unless I indicate otherwise, then review the performance of our businesses in greater detail, and close with our current expectations for 2026. On slide seven, we show financial results for the full firm. This quarter, we reported net income of $2.5 billion, EPS of $1.19, and an ROTCE of 5.1% on $19.9 billion of revenues, generating positive operating leverage for the majority of our five businesses. On an adjusted basis, which excludes the notable item consisting of the impact of the held-for-sale accounting treatment of Citi's remaining operations in Russia, we reported net income of $3.6 billion, EPS of $1.81, and an ROTCE of 7.7%.

Total revenues were up 2%, driven by growth in banking, services, USPB, and Wealth, primarily offset by a decline in All Other. Adjusted for the Russia notable item, revenues were up 8%. Net interest income, excluding Markets, which you can see on the bottom left side of the slide, was also up 8%, driven by services, USPB, Legacy Franchises, Wealth, and banking, partially offset by a decline in Corporate/Other. Non-interest revenues, excluding Markets, were down 17%. However, adjusted for the Russia notable item, non-interest revenues, excluding Markets, were up 23%, driven by better results in banking and all other, partially offset by declines in services, USPB, and Wealth, and total Markets revenues were down 1%. Expenses of $13.8 billion were up 6%, driven by increases in compensation and benefits, tax charges, legal expenses, as well as technology, partially offset by productivity savings and lower deposit insurance expenses.

Cost of credit was $2.2 billion, primarily consisting of net credit losses in US cards. And for the full year, we generated positive operating leverage for the firm and each of our five businesses, with $14.3 billion of net income up 13%, with an ROTCE of 7.7% on a reported basis. And adjusted for the Russia notable item this quarter, as well as the goodwill impairment related to Banamex in the third quarter, we delivered $16.1 billion of net income up 27% versus the prior year, with an ROTCE of 8.8%. On slide eight, we show the full-year revenue trend by business from 2021 to 2025. This year, we reported revenue of $85.2 billion. Adjusted for the Russia notable item and excluding divestiture-related impacts, revenues of $86.6 billion were up 7%, our strongest growth in over a decade.

With each of our businesses achieving record revenues, 2025 demonstrates another year of our investments in the franchise driving solid top-line growth. It's worth noting that since 2021, we have generated a compound annual revenue growth rate of 4% on a reported basis, 5% adjusted for the Russia notable item this year and excluding divestiture-related impacts, and 6% excluding legacy franchises, which has declined by over $2 billion over that period. On slide nine, we show the full-year expense trend from 2021 to 2025. This year, we reported expenses of $55.1 billion. Excluding the Banamex goodwill impairment in the third quarter, expenses were $54.4 billion. The increase in reported expenses was driven by higher compensation and benefits, the Banamex goodwill impairment, technology and communications, and transactional and product servicing expenses, partially offset by lower deposit insurance expenses and restructuring charges.

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, which totaled approximately $800 million for the year, and investments in technology, with productivity and stranded cost reduction partially offsetting continued investments in the businesses. And as you can see on the bottom left side of the slide, we have been reducing headcount, and we expect that trend to continue. As we take a step back and look at the trajectory of our expense base, over the past five years, we've invested significantly in the transformation and technology to modernize our infrastructure, simplify and automate our processes, and enhance and streamline our data. At the same time, we've incurred restructuring and severance charges to simplify our organizational structure and invested in the businesses to drive top-line revenue growth in a disciplined way.

We continue to see the benefits of these investments play through this year, with continued productivity saved, as well as revenue growth, both contributing to an improvement in our firm-wide efficiency ratio to 63% on an adjusted basis. On slide 10, we show consumer and corporate credit metrics. As I mentioned, the firm's cost of credit was $2.2 billion, primarily consisting of net credit losses in U.S. cards. 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 over $21 billion in total reserves, with a reserve-to-funded loan ratio of 2.6%. 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 7.7%.

It's 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 in the quarter, corporate non-accrual loans, as well as corporate net credit losses, remained low. 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 in the balance sheet on slide 11, where I will speak to sequential variances. Our $2.7 trillion balance sheet increased 1%, driven by growth in loans, partially offset by a decline in investments. Net end-of-period loans increased 3%, driven by growth in USPB and Markets.

Our $1.4 trillion deposit base remains well-diversified and increased 1%, driven by growth in services, partially offset by a decline in Corporate/Other. We reported a 115% average LCR and maintained over a trillion dollars of available liquidity resources. We ended the quarter with a preliminary 13.2% standardized CET1 capital ratio, approximately 160 basis points above our 11.6% regulatory capital requirement, which reflects a 3.6% stress capital buffer. As we've said in the past, we remain very focused on the efficient utilization of both standardized and advanced RWA while providing the businesses with the capital needed to pursue accretive returns. And we will continue to prioritize returning capital to shareholders through buybacks, as evidenced by the $4.5 billion of buybacks in the fourth quarter and over $13 billion for the year against our $20 billion buyback program.

Turning to the businesses on slide 12, we show the results for services in the fourth quarter and full year. Reported revenues were up 15% and 8% adjusted for the Russia notable item, driven by growth across both TTS Securities Services. nii increased 18%, primarily driven by higher average deposit balances and deposit spreads. NIR increased 10% on a reported basis and declined 11% adjusted for the Russia notable item, as higher lending revenue share outpaced total fee growth of 13%, which you can see on the bottom left side of the slide. We continue to see strong activity and engagement with corporate and commercial clients and momentum across underlying fee drivers.

Cross-border transaction value increased 14%, U.S. dollar clearing volume increased 3%, and assets under custody and administration increased 24%, which includes the impact of market valuations as we continue to deepen with existing clients and onboard new clients and assets. Expenses increased 9%, primarily driven by higher technology expenses, compensation and benefits, as well as volume-related expenses. Average loans increased 10%, driven by continued demand for trade loans, in particular export agency finance and working capital loans. Average deposits increased 11%, with growth across both international and North America, largely driven by an increase in operating deposits. Services delivered net income of $2.2 billion, with an ROTCE of 36.1% in the quarter and 28.6% for the full year. Turning to Markets on slide 13, revenues were down 1% against the best fourth quarter in a decade last year.

Fixed income revenues were down 1%, with rates and currencies flat, and spread products and other fixed income down 1%. Equities revenues were also down 1%, as growth in prime services, with balances up more than 50%, which includes the impact of market valuation, as well as derivatives, was more than offset by a decline in cash against a strong prior year quarter. Expenses increased 14%, primarily driven by higher legal expenses, compensation and benefits, technology, and volume-related expenses. Cost of credit was a benefit of $104 million, primarily consisting of a net ACL release resulting from a refinement of loss assumptions for certain portfolios in spread products. Average loans increased 25%, primarily driven by financing activity in spread products. Markets delivered net income of $783 million, with an ROTCE of 6.2% in the quarter and 11.6% for the full year.

Turning to banking on slide 14, revenues were up 78%, driven by growth in corporate lending and investment banking. Investment banking fees increased 35%. M&A was up 84%, reflecting a record quarter that closed a record year, with momentum across several sectors and continued share gain. DCM was up 19%, driven by investment grade and leveraged finance debt, partially offset by lower participation in loans. And while ECM was down 16%, driven by lower participation in follow-ons, this was partially offset by a continuation of the IPO market recovery supported by favorable market conditions. Corporate lending revenues, excluding mark-to-market on loan hedges, increased significantly, driven by an increase in lending revenue share. Expenses increased 10%, driven by higher compensation and benefits, which includes recent investments we've made in the business.

Cost of credit was $176 million, which included a net ACL build, driven by changes in portfolio composition, including credit quality and exposure growth. Banking generated positive operating leverage for the eighth consecutive quarter and delivered net income of $685 million, with an ROTCE of 13.2% in the quarter and 11.3% for the full year. Turning to Wealth on slide 15, revenues were up 7%, 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 12%, driven by higher deposit spreads and average balances, partially offset by lower mortgage spreads. NIR decreased 1%.

Net new investment asset flows slowed to $7.2 billion in the quarter, consistent with typical seasonality, and we continue to see growth in client investment assets, which were up 14%, including the impact of market valuations, with net new investment assets for the full year representing approximately 8% organic growth. Expenses increased 6%, primarily driven by investments in technology and volume in other revenue-related expenses. End-of-period client balances continued to grow, up 9%. Average loans were up 1% as we continue to grow security-based lending and deploy balance sheet to support clients with a focus on shareholder returns. Average deposits were also up 1% as client transfers from USPB, as well as net new deposits, were primarily offset by operating outflows and a shift from deposits to higher-yielding investments on Citi's platform.

Wealth had a pre-tax margin of 21%, generated positive operating leverage for the seventh consecutive quarter, and delivered net income of $338 million, with an ROTCE of 10.9% in the quarter and 12.1% for the full year. Turning to U.S. Personal Banking on slide 16, revenues were up 3%, driven by growth in Branded Cards and Retail Banking, partially offset by a decline in Retail Services. Branded Cards revenues increased 5%, driven by higher loan spreads, interest-earning balances, which were up 4%, and gross interchange fees, largely offset by higher rewards costs, as customer engagement remained robust, with acquisitions up 20% and spend volume up 5%. Retail Services revenues were down 7%, primarily driven by lower interest-earning balances and lower loan spreads. While growth has been impacted by foot traffic and sales at some of our partners, we continue to see strong returns across the Retail Services portfolio.

Retail banking revenues increased 21%, driven by the impact of higher deposit spreads. Expenses increased 2%, driven by higher transactional and marketing expenses to support acquisitions and customer engagement, partially offset by a reduction in other expenses. Cost of credit was $1.7 billion, driven by net credit losses in cards. For the full year, net credit losses in each of our cards portfolios were at or below the low end of our guided ranges, with Branded Cards at 3.6% and Retail Services at 5.73%. Average deposits increased 2% as net new deposits were primarily offset by the client transfers to Wealth that I mentioned earlier. USPB generated positive operating leverage for the 13th consecutive quarter and delivered net income of $845 million, with an ROTCE of 14.3% in the quarter and 13.2% for the full year.

Turning to slide 17, we show results for all other on a managed basis, which includes Corporate/Other and legacy franchises and excludes divestiture-related items. Revenues declined across legacy franchises and Corporate/Other. The decline in legacy franchises was driven by the impact of the Russia notable item, as well as the continued reduction of revenue from our exit and wind-down Markets, partially offset by growth in Mexico. The decline in Corporate/Other was driven by lower NII due to a lower benefit from cash and securities reinvestment, driven by actions taken over the last few quarters to reduce Citi's asset sensitivity in a declining interest rate environment. Expenses were down 6%, with a decline in legacy franchises, partially offset by growth in Corporate/Other, and cost of credit was $449 million, primarily consisting of net credit losses of $341 million, driven by consumer loans in Mexico.

Turning to our current expectations for 2026, starting with net interest income excluding Markets on slide 19. Following solid growth of nearly 6% in 2025, we expect NII ex-Markets to be up between 5% and 6% in 2026. As you can see on the left-hand side of the page, we expect most of the increase to come from volume growth and mix, primarily driven by higher loan volumes in cards and Wealth and deposit volumes in services and Wealth, and we expect a continued benefit from our investment portfolio, including fixed-rate securities and derivatives rolling into higher-yielding instruments, partially offset by declining U.S. and non-U.S. short-end rates. Overall, we expect the drivers of NII ex-Markets growth in 2026 to be consistent with those in 2025. Turning to slide 20, we show our outlook for operating efficiency and the drivers of our expense base in 2026.

In terms of expenses, we will continue to invest in our businesses to support continued top-line revenue growth and expect higher volume in other revenue-related expenses, with capacity generated from productivity savings from our prior investments, reduction of transformation expenses, continued reduction in stranded costs, as well as a lower level of severance versus 2025. We expect our disciplined expense management, combined with top-line revenue momentum, will drive another year of positive operating leverage as we target an efficiency ratio of around 60% for the full year. On slide 21, we show a summary of our expectations for 2026. In addition to our outlook for NII ex-Markets and efficiency ratio, we expect continued fee momentum across the businesses to drive growth in NIR ex-Markets. In terms of credit, we expect card NCLs to remain within the ranges that we gave for 2025.

We will continue to provide the businesses with the capital needed to pursue accretive returns while we optimize our standardized and advanced RWA and capital usage, and we will, of course, continue to buy back shares against our $20 billion buyback program. Now, before we take your questions, I want to say a few words as this is my last earnings call as the CFO of Citi. I've been with Citi for nearly 25 years, and I've been the CFO for the last seven. During my career here, I've seen Citi go through many different evolutions and face some very challenging times. Yet I have shown up every day for the last 25 years wearing my One Citi jersey, surrounded by colleagues who have the same mindset.

I've always believed that what sets Citi apart is the heart and determination that it takes to drive real change and deliver for all of our stakeholders: our clients, employees, regulators, and, of course, our shareholders and analysts. As I said at our 2022 Investor Day, there was a lot to do, and there were no quick fixes, but we had a clear strategy to set the company up to have a higher quality earnings mix and higher sustainable returns. And to achieve these financial goals, we were going to do three things. First, invest in our businesses to grow our revenue. Second, become more efficient by investing in the transformation in technology and simplifying our operating model. And third, manage our capital to drive improved returns.

While there is still a lot more work to be done, as I sit here today, I could not be prouder of the progress that we've made as a firm in terms of executing on our transformation and improving the performance of our firm and each of our five businesses. Since Jane took over, she has built a truly impressive team and one that I have been incredibly proud to be part of. I want to thank Jane, my colleagues, and all 226,000 employees for the privilege of serving as your CFO over the last seven years. It has been the most exciting and rewarding time of my career, and it has been an honor to be part of one of Citi's most significant chapters.

Looking ahead, I remain fully committed to supporting Jane, Gonzalo, and the broader leadership team as the firm continues its path towards achieving its ROTCE target of 10%-11% this year and delivering higher returns over time. So I am leaving the role not at the peak for Citi, but on the upswing with nothing but upside from here. And 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. And we'll pause just a moment. Okay, your first question will come from Glenn Schorr with Evercore.

Hi, thank you. And Mark, you're the best. You deserve a sit on a beach for a little while.

Not yet, not yet, but exhale at some point.

Okay. I have a question in Markets, and I feel like Markets is one of the big pieces of the puzzle to get to improved returns. So it could be just one quarter, but I see the flattish revenues in the quarter. You talked about a tough year on year comp. Let's more focus on the interesting. PB bounces up around 50%. Allocated capital about the same. Trading assets are up like 23%. Loans are up a bunch. I'm curious on how those things are growing while allocated capital is the same, and yet the ROTCE in the quarter is like 6%.

So there's just a couple of things that make my head scratch a little bit, so I just need a little help there. Thanks.

Yeah, look, I'd point to a couple of things. So first of all, you can see the top-line revenue for the full year up 11% for Markets. So very strong performance. The fourth quarter was very strong last year, so it's a tough year over year comp. But we're seeing particular momentum over the course of the year in parts of the franchise, like spread products, where we've been doing more around financing and lending activity. And that is a very optimal use of RWA. It's very high returning, low RWA for us. Similarly, that momentum in equities is supported by prime, with equities up 13% for the full year.

A lot of the action that we see in 2025 is on the heels of having spent a lot of time optimizing RWA in the prior years and ensuring that we're deploying it where we get the highest return for it. And so we come into the year with lower levels of capital. We set that once for the year. We've allocated more GSIB capacity towards the business and allocated more higher returning use of the balance sheet towards lending activity. And those things have contributed to the higher ROTCE that we see here for all of 2025. So a combination of optimization of balance sheet and deploying balance sheet in higher returning areas of the franchise.

Okay. Well, all helpful and good perspective. And then this is a small one, but on the expense and efficiency, slide 20, and correct me if I'm wrong. I thought the last look was an efficiency ratio below 60%, and now we're targeting around 60%. In the grand scheme of the Citi story, I don't think it's a big deal. I'm just curious if it changed, if it meant to change, or am I reading that wrong?

No, you're reading it right, Glenn. I think, look, I think it's a couple of things. Your last point is well taken as well. In the grand scheme of Citi, what are we talking about? But let me make the bigger point, which is in 2026, as you know, we are focused on ensuring we deliver on the 10%-11% return, right? That means top-line momentum, good expense discipline, but in that expense discipline is both creating capacity through greater productivity, bringing down our transformation costs, etc., and investing in the business, right?

That investing in the business point is a really important one because Jane has said a number of times now that 2026 is just a waypoint. In order for us to ensure we're delivering greater returns in 2027, 2028, etc., we have to continue to invest in the franchise. What you've highlighted as a less than 60, moving to an around 60, is giving us the flexibility to ensure that where we see the opportunities to invest beyond 2026, that we're taking advantage of those. Does that make sense?

Yeah, yeah. It makes sense, and I appreciate it. Yeah, thanks. Yep.

Your next question will come from Mike Mayo with Wells Fargo. Your line is now open. Please go ahead.

Hi. Jane, if you could elaborate on the new data point that over 80% of your progress with transformation is at the target state or near the target state, what remains, and out of what remains, how much of that relates to safety and soundness? Thank you.

Yeah. Thanks, Mike. Well, while we have some more work to do, let me just say I do feel really good about where we are. As you remember, the audits mainly revolved around four areas, so compliance, risk, controls, and data. And we're operating at almost at our target states. These are the Citi-defined ones for compliance, risk, and controls. And in data, we've significantly accelerated progress over the past year, and some of that's really been helped by AI as well.

And we're seeing this translate quickly into both outcomes, and that's including the detailed accuracy of our most critical regulatory reports and in the modernization of our underlying data. So we're focused on completing the work. We have a finely tuned execution machine that's delivering on time and at the appropriate quality. And I am highly confident in our ability to get the remaining work done. I think we all took it as a positive sign that our regulators are also seeing demonstrable improvement in Citi's safety and soundness, and that's publicly evidenced by the OCC's termination of the July 2024 amendment. Ultimately, the timing's up to the regulators. Getting the work completed is just the beginning of the end, as it were. And we need to get comfortable that the work's delivered the desired outcomes. It needs to get validated by an independent audit function.

And then the regulators go through their assessment and closure process. That all takes time. But from the shareholder perspective, we're beginning to see the benefits of the investments we've made in our transformation. We're becoming more efficient, as you can see, on the back of many of these investments. We're far better controlled. And as we complete each body of work, we're beginning to bring our expenses down. And to Mark's point earlier, that creates the capacity for additional investments. It creates capacity for higher returns in 2026 and beyond. And I would also say it frees up some more management mindshare for growth and innovation.

And correct me if I'm wrong. I think you were at the end stage for risk and compliance, but now you're saying it controls. You're mostly there.

That's new. So you're really left with regulatory data, which, and again, correct me. To me, that sounds like regulatory box checking, the sort of thing regulators have talked about. They're de-emphasizing. So if you've addressed the substance and what remains has nothing to do with regulatory box, anything to do with safety and soundness or customers or anything like that, I don't know why the regulators would still have the Consent Order on after six years. So I guess, are you the bottleneck in the process then? You just have to kind of validate what you've done and internal audit and then turn it over to the regulators? And if that's the case, how long does it take you to validate your internal?

Yeah. I wouldn't go quite as far as you've jumped to. We still do have some work to do. We're very focused around it, and we're making good accelerated progress with it. But yes, so we have to get the work done, validate it, and then hand it over to the regulators in the process we talked about. So all of those things have to happen. And I'm confident that we'll get there in good shape.

And one little attempt, when you hand it over to the regulators, are we talking months, years? What do you think?

That's up to them. They have to answer that one. That very much lies in their hands.

Your next question will come from Ebrahim Poonawala with Bank of America.

I just maybe two questions. One, Jane, just following up beyond the regulatory piece, what would you say? I think one of the concerns investors have is Citi was behind the curve in terms of franchise investments. You've done a tremendous job over the last five years. How would you respond to that there is a gap between Citi and best-in-class peers? When we think about investment banking, capital Markets, etc., how would you size that gap, and what is needed, and how long to narrow that gap, or if in fact eliminate that?

You're right. Over the past five years, not only have we been investing in technology and the transformation, but also in innovations and making sure that we are positioned to drive our growth and our returns and our competitive position. In terms of Services, we are the leading firm in a number one position. We've been building out digital asset capabilities, expanding product innovations, as you've heard us talk about, Payments Express, real-time liquidity, and other always-on digital solutions, and we're investing in scaling Securities Services platform and broadening capabilities there.

And you saw the huge growth in the assets under custody and management this year that we've achieved as a result. So services in a very strong position. Markets where we've been investing as we continue filling product capability gaps. We're improving capacity. We're reducing latency, increasing resiliency to support the 11% growth that you saw this year, and in particular areas like prime, which had huge growth of 50%. But we're always looking at where are the new capabilities that can get added on in FX and equities, spread products, rates across the board. Now, in banking, you saw our prior talent investments driving share gains. So we saw sponsors, an area of focus, up 180 basis points, Levfin up 100, M&A up 90 basis points. And we're going to continue to bring in top talent to fill remaining gaps that we have, notably in North America.

We're retooling key areas of investment product platform with the open architecture as the key operating principle. So you've seen us retool the research product. We've been investing in deploying new AI-powered capabilities to drive continued momentum in client investment assets and investment fee revenues. And then finally, in cards, we're driving engagement and growth with new innovative products, our commerce platform launches, and various refreshing of different offerings so that we can complement the suite of proprietary cards. We can broaden out our marquee partner relationships. So all of this investment is making us feel that we're in a very good place to compete. Our goals, as we talked about, is to be the leading player, top three or top one in all of the businesses that we're engaged in.

It's very important for us that we invest for the long term and not just looking at this on a year-by-year basis. So that's the mindset we have, if that helps you. And you can see we're making progress.

No, that's helpful. And maybe, Mark, I appreciate you're moving away from revenue guidance, but maybe help us fill in the blanks a little bit around when we think about fee growth, maybe there's about 6% ex-Markets when we look at 2025, just how we should think about fee revenue growth embedded in your expectations around that 60% efficiency ratio and any color on Markets and IB, or at least what the puts and takes should be in terms of delta versus the $10 billion-ish that we saw in 2025. Thanks.

Yeah, sure. So first thing is we did have good fee growth this year. We'd expect that to continue as we think about 2026. Now, keep in mind the 2026 banking wallet was north of $100 billion, and so we expect a constructive wallet. We'll see what that looks like, but we also expect continued share gains against that constructive wallet. We've got a rich pipeline as we go into the beginning of the year, and as Jane mentioned, we've been investing in key parts of the franchise that will continue to pay dividends for us in 2026 and beyond, so that'll be a positive contributor to fees as we think about 2026. Similarly, we're expecting continued momentum on the investment revenue side of Wealth, as well as on deposits but in investment revenues, specifically as it relates to your fee point. We saw good growth in client assets of about 14%, good growth in NNIA of about 8%.

That momentum is expected to continue in 2026 as well. That'll be a contributor to fees. You've seen throughout the year good KPIs in our services business and in Securities Services as well as in TTS with U.S. dollar clearing volumes and cross-border transaction value, but also on the security side with growth in assets under custody and assets under administration. We'd expect that momentum to continue, particularly with some of the big wins we've seen Securities Services side and North America in particular. The combination of those things, I think, will be positive contributors to NIR as we think about 2026. I've been pretty consistent in stressing the importance of thinking of the Markets business from a total revenue perspective. I would stick to that point.

With that said, I think that one way to think about Markets is probably relatively flat year over year, subject to what the wallet is. Revenues should be somewhat flat year over year. But again, off of strong momentum that we've seen in 2025, and obviously, mix will matter there. What I will point out is that we have seen meaningful growth in the spread products and financing side of the business. And that obviously does show up in part through NII inside of Markets. And so hopefully that gives you some sense. But again, feel good about the NII ex Markets outlook, 5%-6%. That'll be both volume and mix.

And on the volume side, I'd expect to see loan growth in cards and Wealth, probably in the mid-single digits in terms of loans and deposit growth in services and Wealth, probably in the mid-single digits in the way of volume there as well.

That's great, color. Thank you, Mark. And all the best. And with the next adventure. Bye.

Your next question will come from Betsy Graseck with Morgan Stanley.

So, Mark, I had a question for you on the NII outlook. Coming into this print, I think you were looking for a slowdown in NII growth from 2025 levels of 5.5%, but you actually increased the NII outlook to 5%-6%. And I know you mentioned also that you took some actions to reduce asset sensitivity. So maybe we could wrap this all up into what drove that better NII outlook.

Yeah. Look, it was the NII guidance that we gave last year. We came in a lot better than that in 2025. And that was in part due to the higher loan volumes that we saw, the higher deposit volumes that we saw throughout the year. And in fact, that is what is informing the 5%-6% ex-market NII guidance that I've given for 2026. We'd expect the loan volume to continue. And as I mentioned, I'll correct what I said earlier. I expect loan volumes to probably be up mid-single digits for total ex-Markets loans. And that'll be, again, a combination of growth that we see in cards. We saw good volume growth in cards this year, particularly on the branded side.

We had good purchase sale activity up 5% in the quarter. All signs are that we should see that continue, and good loan growth on the Wealth side, particularly in security-based lending type activity, which is tied to some of the investment momentum, and then really impressive growth in deposits, average deposits for TTS for the year. We're up 6%, and good operating deposit growth. They are a nice healthy balance between North America as well as internationally, and so the moment we're way positive saying the momentum that we've seen in cards, in loans, we expect to continue into 2026, and that's a big driver, big factor in that NII momentum we're showing on the page, and then, as you mentioned, I've been mentioning it pretty consistently quarter over quarter.

The way we've been managing the investment portfolio that we have is such that we have, in this case, in 2026, about 30% of those securities maturing. They're maturing at lower rates than we're able to redeploy them at, including in loans and cash and securities and other instruments. And so that's going to give us a bit of a lift as well. So it's the combination of those things that give me confidence around the 5%-6%.

Okay, great. And then just on the actions to reduce asset sensitivity, did that play into this at all, or what actions did you take?

We took some. You can look at our IRE analysis. And if you look at it, it's been pretty consistent in that we've been managing the portfolio in a very dynamic way. If you look at it as of the third quarter, our U.S. dollar IRE for 100 basis point drop is $300 million, right? And so we've taken a number of actions as it relates to the nature of securities that we hold and exiting those in some instances to make sure that we're reducing the asset sensitivity, given that we know that rates are likely to go down. And so most of that sensitivity is in the non-U.S. dollar part of the portfolio, which, as you know, represents more than 65 currencies or so. So it's active management of the balance sheet things you'd expect that we would be doing in order to manage the direction of things that we expect.

Awesome. Okay, thank you so much, Mark. And congratulations from me as well. And enjoy your 2026 into 2027. Thank you.

Your next question will come from Jim Mitchell with Seaport Global.

Good morning. Maybe just good morning. And Mark, I think everyone appreciates your efforts over the years. So definitely good luck with your next chapter.

Yeah. Yeah, you're welcome. Just maybe on the capital return side, you're 160 basis points above your minimum CET1. I guess number one, are you still targeting a buffer around 100 basis points? And if so, how quickly are you looking to get there? Just trying to get a sense of the pace of buybacks from here over the next few quarters in the year.

Yeah, no, thanks for the question. We are, as you say, about 160 basis points above. We are still targeting a 100 basis point management buffer. What that would obviously equate to is us getting closer to a 12.6, as I think I said in my prepared remarks, where over the course of the next number of quarters, we'll be working our way down towards kind of a 12.6, which would represent that 100 basis points. We're not giving guidance on buybacks quarter to quarter, as you know. As you look at what we've done in the year at $13 billion or so, I think you can expect that we would look to do more in 2026 in the way of buybacks.

Okay. That's helpful. Just maybe on just the deposit growth and services, it has been very strong. It sounds like you're pretty confident in the outlook there. Can you maybe kind of just dive into a little bit more on the drivers and why you think that should be sustainable going forward?

Citigroup (C) Q4 2025 Earnings Call Transcript

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