Citigroup Reports Fourth Quarter Earnings for 2025: A Mixed Bag Amid Economic Headwinds
New York, NY – January 15, 2026 – Citigroup Inc. (NYSE: C) disclosed its fourth-quarter earnings for 2025 today, revealing a complex picture amid fluctuating economic conditions and ongoing regulatory adjustments.
Earnings Overview
For the fourth quarter, Citigroup reported a net income of $4.5 billion, or $2.20 per share, reflecting a 2% decline from the $4.6 billion, or $2.25 per share, recorded in the same period last year. Analysts had anticipated earnings of $2.30 per share, making the quarter a slight miss relative to market expectations.
Revenue Streams
Total revenues for Q4 2025 were approximately $19.5 billion, a decrease of 3% from the previous year. The bank experienced challenges across multiple divisions, most notably in its investment banking sector, where revenues dropped due to lower deal activity and geopolitical uncertainties.
However, the consumer banking segment showed resilience, with a 5% year-over-year increase in revenues, driven by stronger credit card spending and a growing digital banking customer base. Citigroup’s emphasis on expanding its digital offerings appears to be paying off, reflecting a broader trend within the banking industry toward technological advancement.
Cost Management and Provisions
Citigroup’s operating expenses remained relatively stable at $11.5 billion but included increased investments in compliance and regulatory frameworks. The bank is continuing to address past challenges in these areas, aiming to bolster its reputation and operational sustainability.
Provisions for credit losses were another focal point, as the bank allocated $1.2 billion in anticipation of potential loan defaults, reflecting ongoing caution about economic conditions. Although this marks an increase compared to the prior year, the bank’s overall asset quality remained strong, with non-performing loans at a historic low.
Strategic Initiatives and Outlook
CEO Jane Fraser emphasized the bank’s strategic initiatives aimed at navigating the challenges of 2025, stating, “While we faced headwinds this quarter, our commitment to strengthening our core business and investing in digital transformation positions us well for the future.” Fraser reiterated the bank’s focus on enhancing customer experience and expanding services in key markets.
Looking ahead, analysts project a cautiously optimistic outlook for Citigroup. The bank is expected to benefit from a potential uptick in interest rates, which could improve net interest margins. However, investors are advised to remain vigilant regarding potential market volatility and regulatory changes.
Conclusion
In summary, while Citigroup’s fourth-quarter earnings for 2025 fell short of analysts’ expectations, certain sectors, particularly consumer banking, showed signs of growth. The bank’s ongoing investment in technology and strategic focus signals a commitment to adapt to the evolving landscape of the financial services sector. As 2026 unfolds, stakeholders will be closely monitoring Citigroup’s ability to navigate these challenges and capitalize on opportunities for growth.