Citi’s Wealth Division Sees Steep Drop in Net New Investment Assets
Citi’s wealth division experienced a significant decline in net new investment assets in the fourth quarter of 2025, impacting the unit’s overall growth for the year. According to a report by Financial Planning, the wealth unit reported $7.2 billion in net new investment assets for the quarter, marking a 54% decrease from the same period in the previous year. Despite this slowdown, the division managed to bring in $44 billion in NNIA for the full year, representing a modest 4% increase from 2024.
Factors Influencing Performance
CEO Jane Fraser attributed the wealth unit’s performance to strategic investments made over the past two years. These investments included talent recruitment and partnerships aimed at enhancing efficiency and improving the client experience. Fraser highlighted the importance of partnerships with firms like BlackRock in strengthening Citi’s open-architecture platform.
Companywide, Citi reported fourth-quarter revenue of $19.9 billion, up 2% year over year. However, results were impacted by the sale of AO Citi bank, resulting in a $1.2 billion loss. Excluding this sale, revenue saw an 8% increase from the previous year.
Revenue and Expenses Analysis
Within the wealth management sector, revenue for the quarter totaled $2.1 billion, a 7% year-over-year increase. Commission and other fee revenue also saw a 5% growth, reaching $376 million. For the full year, the wealth division reported $8.6 billion in revenue, a substantial 14% increase from 2024.
Operating expenses in the wealth unit rose by 6% to $1.7 billion in the fourth quarter, primarily driven by higher technology spending and increased transaction and product-service costs. Despite this, net income for the quarter saw a slight 1% increase to $338 million, with full-year net income surging by 49% to $1.5 billion.
Citigold and Private Bank Performance
The growth in Citi’s wealth division was primarily fueled by the Citigold and private bank businesses, offsetting weaker results in its Wealth at Work unit. Citigold, catering to clients with at least $200,000 in assets, generated $1.3 billion in revenue for the quarter, a 12% year-over-year increase. Similarly, the private bank, serving high net worth clients, reported $656 million in quarterly revenue, up by 6%.
However, the private bank witnessed significant leadership turnover in 2025, with key executives departing the firm. Despite these challenges, the business is now structured with four regional heads reporting directly to Andy Sieg, overseeing Citi’s wealth operations.
On the other hand, the Wealth at Work unit, catering to professional clients, reported a decrease in revenue for the quarter. Fraser acknowledged that while progress has been made in improving the platform and client experience, there is still room for further growth in profitability and revenues.
Conclusion
In conclusion, Citi’s wealth division faced challenges in net new investment assets growth in the fourth quarter of 2025. However, strategic investments and partnerships have laid the foundation for future growth. With a clear roadmap outlined by CEO Jane Fraser, the focus remains on driving profitability and revenue growth in the coming years.
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