Citi profits hit by Russia charge amid strong – Business News
Citigroup’s fourth-quarter revenue plunged 13% because the financial behemoth grappled with large prices from dumping its Russia operations amid the battle in Ukraine, however it wrapped up 2025 on a high word with beefier annual earnings as a surge in dealmaking helped increase investment banking charges.
The Jane Fraser-led New York powerhouse posted internet income, which is revenue after taxes and bills, of $2.5 billion for October via December, down from $2.9 billion a 12 months prior.
“2025 was a year of significant progress as we demonstrated that the investments we are making are driving strong top-line growth,” Fraser stated in a assertion.
Fraser, 58, is seeking to increase profits and streamline the bank’s operations as half of her years-long turnaround plan. REUTERS
Revenues, the full haul from operations, inched up 2% to $19.9 billion, whereas diluted earnings per share, a go-to metric for per-stock profitability, slid 11% to $1.19.
The lender pointed to a $1.2 billion dent in profits after reserving its Russian property as being prepped for sale as Western corporations proceed to exit the heavily-sanctioned Russian market.
Citi’s board permitted the sale of its Russian unit, AO Citibank, to Renaissance Capital final month, ensuing within the pre-tax loss that the company stated was largely associated to currency headwinds.
Strip out these one-offs, and adjusted internet income soared to $3.6 billion for the ultimate quarter of 2025, whereas internet income for the entire 12 months leaped 13% to $14.3 billion on revenues of $85.2 billion, up 6% from 2024.
But there seems to be renewed optimism on Wall Street to strike offers amid a more accommodating regulatory surroundings that’s lifting price income for lenders advising on mergers and capital raisings.
Citigroup stated its own investment banking charges rose 35% to $1.29 billion, up from $951 million a 12 months earlier.
Citi’s board permitted the sale of its Russian unit, AO Citibank, to Renaissance Capital final month, ensuing within the pre-tax loss that the company stated was largely associated to currency headwinds. AFP by way of Getty Images
Industrywide world investment banking income rose 15% from a 12 months earlier to nearly $103 billion, the second-highest after 2021, Dealogic information confirmed.
Citigroup earned the fifth-highest charges throughout banks over the identical period, in line with the identical source.
Markets remained risky within the fourth quarter as buyers speculated about a potential bubble in artificial intelligence shares, the Federal Reserve’s rate of interest path and geopolitical tensions.
Citi’s whole markets revenues fell 1% within the quarter to $4.54 billion, pushed by fixed income and equities, whereas markets income grew 11% for the total 12 months, in contrast with 2024.
Traders did effectively in 2025 as buyers seemed to regulate their portfolios and hedge towards main geopolitical dangers equivalent to Trump’s tariffs or the battle within the Middle East. John Angelillo/UPI/Shutterstock
Market swings typically increase trading income at banks as purchasers scramble to reposition their portfolios in tandem with world occasions equivalent to commerce disruptions or main wars.
The bank additionally handed shareholders $17.5 billion in dividends and stock buybacks, bumping the dividend to 60 cents a share.
Scotland-born Fraser is finishing up a sweeping revamp of the company to spice up profits and streamline operations. Citi is planning to cut 1,000 jobs this week, Reuters reported on Monday.
