Citigroup reported mixed fourth quarter results, delivering earnings per share that exceeded consensus estimates while recording 2.1% revenue growth year-over-year, slightly below analysts’ expectations. The bank attributed the shortfall to continued margin pressure in its global consumer banking division and lower trading revenues in fixed income markets. Despite the revenue miss, Citigroup’s operating leverage improved sequentially, reflecting initial benefits from ongoing cost-reduction initiatives targeting $8 billion in annual expense savings by mid-2026.

Following the Q4 release, several sell-side analysts raised their EPS forecasts for 2026 to $10, representing a 25% increase from the projected 2025 level. Citigroup reiterated its plan to drive return on tangible common equity (ROTCE) above 10% by the end of 2026, up from roughly 8.5% reported in Q4. Management highlighted efficiency gains from technology investments and streamlined regional operations as key drivers in narrowing the profitability gap with peer banks, which currently average ROTCE near 12%.

Citigroup demonstrated continued commitment to returning capital to shareholders, repurchasing $12 billion of common stock and distributing $5.5 billion in dividends over the course of 2025. The bank exited the year with a fully phased-in common equity Tier 1 (CET1) capital ratio of 13.2%, comfortably above regulatory requirements and providing ample headroom for further buybacks. With excess capital projected to remain above $15 billion annually, Citigroup signaled its intention to maintain sizable repurchase programs through at least 2026, subject to board approval and market conditions.