New York, January 15, 2026, 10:14 EST — Regular session
Citigroup shares climbed roughly 3.3% to $116.11 in early Thursday trading, rallying past other major U.S. banks following a mixed initial response to its quarterly results.
Investors remain torn on Citi’s value if its overhaul delivers more consistent profits — and whether political and regulatory hurdles will curb potential gains. The stock has shifted quickly from a “fix-it” narrative to a “prove it” challenge.
The deal market’s comeback is a key draw. “We are seeing an accelerating pipeline in M&A and IPOs,” Morgan Stanley CFO Sharon Yeshaya told Reuters. Citi, for its part, is pushing hard into the upswing. 1
Citigroup posted fourth-quarter net income of $2.5 billion, or $1.19 per share, on $19.9 billion in revenue, according to an SEC filing. The results factored in a $1.2 billion loss from the planned sale of AO Citibank in Russia. Stripping out that charge, net income rose to $3.6 billion, with earnings per share hitting $1.81. The bank closed 2025 with a common equity tier 1 capital ratio of 13.2%, a key gauge of financial health. CEO Jane Fraser said, “We enter 2026 with visible momentum across the firm,” and reiterated the bank’s 10%-11% return-on-tangible-common-equity target for this year.
Fee businesses drove the beat. Investment banking fees jumped 35% to $1.29 billion, while Citi’s banking unit revenue surged 78% to $2.2 billion, Reuters reported, boosted by stronger dealmaking and corporate services demand. Still, a Russia-related loss pulled Citi’s return on tangible common equity—a key profitability metric—down to 5.1% for the quarter, well short of its target. CEO Jane Fraser said the bank remains focused on exiting Banamex and noted progress on ongoing regulatory matters. “The turnaround story for Citi continues,” said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.
Certain brokers wasted no time jumping on the opportunity. Oppenheimer’s Chris Kotowski bumped Citi’s price target to $144 from $141, holding firm on his Outperform rating. Piper Sandler also raised its target, from $130 to $135, keeping its Overweight stance intact. 2
But a policy clash could hit the sector at a delicate moment. Bank leaders have pushed back against U.S. President Donald Trump’s proposal to cap credit-card interest rates at 10%. Fraser said flatly, “A rate cap is not something that we can support,” cautioning it might restrict credit access. Citi CFO Mark Mason added it’s too early to gauge the fallout without more details. 3
Citi’s earnings came amid a choppy week for lenders as investors digested mixed results from major banks and debated the rate-cap proposal, even as consumer and corporate borrowing appeared relatively steady. 4
Citi investors are gearing up for the first-quarter earnings call on April 14, with the bank’s May 7 investor day coming shortly after. Both events will be crucial for Citi to revisit and clarify its 2026 targets. 5
