Focus: U.S. Q4 2025 Earnings Season Core Highlights
Key financial figures are as follows: Adjusted earnings per share were $1.81, surpassing the analyst consensus of $1.67 from a Refinitiv survey. Adjusted revenue reached $21.0 billion, exceeding market expectations of $20.72 billion.
Citigroup released its fourth-quarter results on Wednesday, with overall performance beating market forecasts as its provision for bad loans came in lower than analysts had anticipated. Specific earnings data is as follows:
Adjusted EPS: $1.81, compared to the $1.67 expected by analysts surveyed by Refinitiv. Adjusted Revenue: $21.0 billion, versus the market expectation of $20.72 billion.
Citigroup stated that its fourth-quarter net profit fell 13% year-over-year to $2.47 billion, or $1.19 per share, impacted by an after-tax loss of $1.1 billion related to plans for exiting its Russian operations. Excluding this one-time loss, the company's net profit was $3.6 billion, equating to $1.81 per share. After adjusting for the Russia-related loss, revenue increased 8% year-over-year to $21.0 billion, a growth driven by improved performance in the banking, wealth management, and institutional services segments. The loan loss provision set aside by Citigroup this quarter was $2.2 billion, approximately $330 million lower than the expectation of analysts from StreetAccount, a Refinitiv data platform. The lower-than-expected loan loss provisions at Citigroup and competitors like Bank of America may signal market optimism about the economic outlook and also reflect an improving trend in borrowers' ability to repay debts. Net interest income, representing the difference between what a bank earns from lending and investing and what it pays out to depositors, grew 14% year-over-year for Citigroup this quarter to $15.67 billion, surpassing expectations by about $815 million. Citigroup CEO Jane Fraser said in the earnings statement, "2025 was a year of significant progress, with record revenues and positive operating leverage across all five of our businesses, demonstrating that our investments are effectively driving revenue growth." She added, "Entering 2026, we have clear growth momentum across our business lines." Fraser also noted that the company is "committed" to achieving its target of at least a 10% return in 2026 and is laying the groundwork for returns to exceed that level in the years ahead. Boosted by the positive earnings report, Citigroup's shares rose approximately 1% in pre-market trading. Under Fraser's leadership, Citigroup is undergoing a business restructuring, shedding some international operations while also benefiting from a more relaxed regulatory environment for U.S. banks. Based on these factors, Wells Fargo banking analyst Mike Mayo has named Citigroup his top pick for bank stock investments. Analysts are eagerly awaiting Fraser's insights on whether the growth momentum seen in 2025 can be sustained into 2026. Earlier on Tuesday, JPMorgan Chase reported strong results, buoyed by better-than-expected trading revenue. Bank of America and Wells Fargo also released their fourth-quarter results on Wednesday, while Goldman Sachs and Morgan Stanley are scheduled to report on Thursday.
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