• Key insight: Citi's fourth-quarter net income fell 13% year over year, in connection with its pending exit from Russia.
• What's at stake: Overall, the New York-based megabank reported strong results for 2025, including full-year revenue of $85.2 billion, the highest annual total since Jane Fraser was named CEO in 2021.
• Forward look: The bank reaffirmed its expectation to achieve a return on tangible common equity of 10-11% by the end of this year.

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Citi's profits fell during the fourth quarter, in connection with the megabank's exit from Russia.

Net income totaled $2.5 billion for the three-month period ending Dec. 31, down 13% year over year. Earnings per share were $1.19. Analysts polled by S&P Capital IQ had been expecting $1.34.

Citi warned last month that it would incur a $1.2 billion pre-tax loss on sale for the fourth quarter, as a result of the way the bank is accounting for the sale of its remaining Russian operations to Renaissance Capital. The divestiture is expected to close during the first half of this year.

Excluding the Russia-related item, Citi's net income was $3.6 billion for the quarter, and earnings per share were $1.81, the bank noted Wednesday in a press release.

Firmwide revenues rose 2% year over year to $19.9 billion. For all of 2025, revenues totaled $85.2 billion, continuing a steady upward march since 2021 when Jane Fraser became CEO.

"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," Fraser said in the press release. "We enter 2026 with visible momentum across the firm."

During the fourth quarter, four of Citi's five primary businesses reported year-over-year increases in net income. The markets business was the outlier, as net income in that unit fell 22% compared with the year-ago period due to higher expenses and lower revenues, partially offset by a lower provision for credit losses.

Firmwide expenses of $13.8 billion rose 6% from the year-ago quarter. The increase was due to several factors: higher compensation and benefits costs, increases in non-income tax charges, legal expenses and technology and communication expenses, the bank said.

On Wednesday, the $2.7 trillion-asset bank reaffirmed its commitment to achieving a key profitability metric by year-end. Citi expects to realize a return on tangible common equity of 10-11%. During the fourth quarter, that metric came in at 5.1%.

Citi had an eventful fourth quarter. About four weeks ago, it announced the completion of its sale of a 25% stake in Grupo Financiero Banamex, its retail banking subsidiary in Mexico.

One-quarter of Banamex is now owned by Mexican businessman Fernando Chico Pardo. Citi, which will continue to offer institutional banking in Mexico, still expects to conduct an initial public offering at some point in the future in order to sell the rest of its stake in Banamex.

Exiting retail banking in Mexico is part of Fraser's broader retreat from international retail banking. Since she became CEO in March 2021, Citi has announced plans to sell or wind down consumer franchises in 14 countries. Most of the exits have been completed.

Also last month, Citi made progress on moving beyond the regulatory consent orders that have dogged the megabank for years. The Office of the Comptroller of the Currency announced that it had terminated an amended consent order that it filed against Citi in July 2024 for allegedly violating the requirements of earlier consent orders.

Citi has been working for five years to free itself from a pair of enforcement actions that required the bank to improve its enterprisewide risk management and internal controls program. Both of those 2020 enforcement actions remain in place.

In November, Citiannounced a management shuffle and a realignment of its retail business. Mark Mason, who has been the megabank's chief financial officer since 2019, will serve in the CFO role until early March, with plans to leave the company by the end of the year. His replacement as CFO will be Gonzalo Luchetti, who has been head of Citi's U.S. personal banking business since early 2021.

The bank, which plans to host an investor day in May, is reportedly cutting approximately 1,000 jobs this week.