Citi’s Fourth-Quarter Net Income Decreases Amidst Russian Exit
The fourth quarter of 2025 saw a 13% decrease in net income for multinational investment bank and financial services corporation, Citigroup Inc. (Citi). This decrease is associated with the bank’s impending exit from Russia.
The Impact of Citi’s Exit from Russia
Citi disclosed a net income of $2.5 billion in the fourth quarter, marking a 13% drop compared to the previous year. The earnings per share were $1.19, falling short of the $1.34 that analysts polled by S&P Capital IQ had forecasted. The decrease in net income is due to a $1.2 billion pretax loss on sale for the fourth quarter, resulting from the bank’s accounting for the sale of its remaining Russian operations to Renaissance Capital. This divestiture is expected to close in the first half of 2026.
Citi’s Overall Performance in 2025
Despite the drop in fourth-quarter net income, Citi reported strong results for 2025, including a full-year revenue of $85.2 billion. This is the highest annual total since Jane Fraser assumed the position of CEO in 2021. The bank’s firmwide revenues rose 2% year over year to $19.9 billion. Excluding the Russia-related item, Citi’s net income for the quarter was $3.6 billion, and the earnings per share were $1.81.
In a press release, Fraser stated, “With record revenues and positive operating leverage for each of our five businesses, 2025 was a year of significant progress as we demonstrated that the investments we are making are driving strong top-line growth. We enter 2026 with visible momentum across the firm.”
Other Business Developments
During the fourth quarter, Citi completed the sale of a 25% stake in Grupo Financiero Banamex, its retail banking subsidiary in Mexico. The bank also made progress on moving beyond the regulatory consent orders that have dogged the megabank for years. In November, a management reshuffle and a realignment of its retail business were announced.
Looking Forward
Citi has reaffirmed its commitment to achieving a return on tangible common equity of 10% to 11% by the end of 2026. Citi’s workforce has reduced to 226,000 employees, down from 240,000 in 2022, as part of its cost-cutting measures. The bank is also reportedly cutting approximately 1,000 jobs this week.
All these changes come as part of Fraser’s broader retreat from international retail banking. Since her appointment as CEO, Citi has announced plans to sell or wind down consumer franchises in 14 countries, with most of the exits already completed.
Despite the challenges, Citi seems poised to continue its trajectory of growth and transformation in the coming years, further solidifying its position as a leading global bank.
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