NEW YORK — Dec. 25, 2025 — Citigroup, Inc. (NYSE: C) is closing out 2025 with a very different narrative than the one investors grew used to over the past decade: momentum. Citi shares last traded around $121.56 on Wednesday’s Christmas Eve session (Dec. 24), after moving between roughly $119.40 and $122.83, putting the stock near recent highs heading into the year-end holiday break. [1]
That price action matters because 2025 has increasingly been framed on Wall Street as “the Citi comeback year,” driven by a combination of turnaround execution, improving sentiment toward large U.S. banks, and—critically—fresh signs that Citi’s long-running regulatory overhang is starting to ease.
Citi stock ends 2025 with a late-year sprint
In a Dec. 25 market recap, Trefis highlighted a six-day winning streak for Citi, estimating cumulative gains of about 9.2% over that stretch and pegging Citi’s market cap at roughly $221 billion. [2]
While different trackers calculate year-to-date performance differently depending on cut-off dates and methodologies, the underlying point is consistent across recent reports: Citi’s 2025 rally has been large enough to force analysts and investors to revisit questions that were dormant for years—especially valuation, capital returns, and whether “transformation” can finally translate into sustainably higher profitability.
The biggest Citi headline: regulatory pressure is easing (incrementally)
Two Reuters reports from mid-December help explain why sentiment shifted.
1) The Fed closed trading-risk management notices
Reuters reported on Dec. 17 that the U.S. Federal Reserve had terminated formal supervisory notices tied to trading risk management weaknesses—three “Matters Requiring Immediate Attention” (MRIAs) originally issued in late 2023, according to people familiar with the matter. [3]
The details matter for investors because MRIAs are typically confidential, and their resolution can be viewed as a meaningful signal that internal remediation work is being recognized by supervisors—even if it does not end Citi’s broader compliance obligations.
2) The OCC withdrew a 2024 amendment to Citi’s 2020 consent order
On Dec. 18, Reuters reported Citi said the Office of the Comptroller of the Currency (OCC) had withdrawn a 2024 amendment to a 2020 consent order. The underlying 2020 order remains in place, but the removed amendment had increased scrutiny and could have constrained capital distributions if Citi failed to show progress. [4]
Reuters also noted Citi was fined $400 million in 2020 and $136 million in 2024 tied to persistent operational and data governance issues. [5]
Bottom line: regulators have not declared “mission accomplished,” but December delivered two concrete data points that many investors interpret as steps in the right direction—especially for a bank whose valuation has long been capped by control and data concerns.
Citi’s turnaround plan: leadership changes and simplification ahead of Investor Day
Citi’s internal restructuring is also accelerating as it sets up for a major messaging moment in 2026.
In a Nov. 20 press release, Citi announced that CFO Mark Mason will remain in the role until early March 2026, then transition to Executive Vice Chair and Senior Executive Advisor to CEO Jane Fraser. Citi also said Gonzalo Luchetti will become CFO following the transition period. [6]
The same release laid out additional structural moves in U.S. consumer operations:
- Retail Banking and U.S. Citigold will be integrated within Wealth
- U.S. Consumer Cards will become a standalone business led by Pam Habner [7]
Citi also confirmed its next Investor Day is scheduled for May 7, 2026—a key catalyst date for investors looking for updated targets, timeline clarity, and evidence that cost and control programs are translating into returns. [8]
Banamex update: Citi completes sale of ~25% stake, IPO still on the table
Citi’s multi-year effort to exit Mexican consumer banking took another visible step forward in December.
- On Dec. 15, Citi announced it completed the sale of a ~25% equity stake in Grupo Financiero Banamex to a company wholly owned by Fernando Chico Pardo and members of his immediate family, and that Chico Pardo became chair of Grupo Financiero Banamex. [9]
- Citi reiterated that any decisions on the timing and structure of a proposed Banamex IPO remain subject to factors including market conditions and regulatory approvals. [10]
Earlier in the fall, Reuters reported Citi had said the stake sale was for around $2.3 billion, and that the bank was still planning to pursue an IPO for the remaining business (subject to conditions). [11]
Why it matters: Banamex has been central to Citi’s simplification story. Progress here can reduce complexity, free management attention, and potentially improve Citi’s capital flexibility—though IPO timing risk remains real, especially if market windows narrow.
What Citi’s latest earnings said about momentum
Citi’s most recent quarterly results (reported in October) provided the financial backdrop for the late-year optimism.
Reuters reported on Oct. 14 that Citi beat estimates for third-quarter profit, with record revenue across divisions, even after recording a loss tied to selling a stake in Banamex. Key details Reuters highlighted included:
- Adjusted EPS (excluding the Mexico loss): $2.24 vs. $1.90 consensus (per LSEG) [12]
- Banking division revenue up 34% year-over-year (as deal activity rebounded) [13]
- Markets revenue up 15% to $5.6 billion [14]
- Return on tangible common equity (ROTCE): 8.6% (9.7% excluding the Mexico loss), against Citi’s 10%–11% target for 2026 [15]
- Citi expected lower minimum capital requirements next year following regulatory revisions (including “Basel III endgame” work), with more clarity expected by Investor Day [16]
This is the crux of the bull case: if Citi can keep lifting ROTCE while shrinking its “regulatory discount,” the stock can re-rate higher even after a big 2025 run.
Investment banking outlook: CFO flagged a Q4 rebound
For forward-looking investors, the next major datapoint is fourth-quarter performance.
Reuters reported on Dec. 9 that Citi CFO Mark Mason said investment banking fees are expected to climb in the fourth quarter (Reuters characterized the expected increase as “mid-20s”). [17]
That’s closely watched because investment banking is highly cyclical—and because a sustained rebound would support the view that Citi’s global corporate and markets franchises are regaining operating leverage.
Wealth strategy: Citi and BlackRock expand a major partnership
Citi’s wealth and investment platform remains another pillar of its strategy narrative.
On Dec. 15, Reuters reported that the head of Citi’s investment management arm moved to BlackRock to help run a new initiative expected to oversee about $80 billion of Citi wealth-management client portfolios under the banner “Citi Portfolio Solutions Powered by BlackRock.” Reuters also noted Citi will use BlackRock’s Aladdin Wealth platform for its private bankers and investment staff. [18]
For Citi, partnerships like this are often pitched as a way to sharpen focus on advice and planning, leverage scale, and reduce the burden of running every strategy fully in-house.
Analyst forecasts on Dec. 25: “Moderate Buy,” but price targets lag the rally
As of Dec. 25, MarketBeat’s analyst roundup characterized Citi’s consensus as:
- “Moderate Buy” based on 19 analysts (13 buys, 6 holds)
- Average 12‑month price target: $114.50
- Recent target changes cited included KBW to $131, Barclays to $115, and Bank of America to $120 (among others) [19]
The interesting tension: with Citi last trading around $121–$122, the average target (per MarketBeat) sits below the market price—suggesting Citi’s rally has outrun portions of the Street’s published target framework, at least temporarily. [20]
J.P. Morgan’s upgrade: Citi remains a “top pick” heading into 2026
On Dec. 12, Reuters reported J.P. Morgan upgraded Citi to “overweight” from “neutral,” citing improving profitability drivers and internal fixes. Reuters also noted Citi shares were up about 59% at that point in the year, and that Citi traded at 11.2x forward earnings versus higher multiples for peers like JPMorgan and Bank of America (per LSEG). [21]
Reuters further quoted Wells Fargo’s Mike Mayo welcoming the upgrade and reiterating Citi as a top pick for 2026. [22]
Citi’s own market outlooks are feeding the narrative
Beyond company-specific execution, Citi’s research output itself has been making headlines—useful context for a bank that wants to be seen as a premier global markets and institutional partner.
- Reuters reported on Dec. 15 that Citi set a 2026 year-end S&P 500 target of 7,700, with bull- and bear-case scenarios of 8,300 and 5,700, respectively. [23]
- In a separate Reuters report about rate-cut forecasts, Citi was among brokerages expecting the Fed’s next cut earlier than some peers (Reuters reported Citi expected cuts in January and March, citing labor market weakness as a key factor). [24]
These calls don’t directly change Citi’s earnings, but they shape the macro conversation around risk appetite, capital markets activity, and rates—all variables that influence large-bank profitability.
Capital and funding moves: preferred redemption and base-rate shift
Citi also made routine—but investor-relevant—capital structure and pricing updates in December:
- On Dec. 3, Citi announced it would fully redeem its $1.5 billion aggregate liquidation preference of Series W depositary shares, with a redemption date of Dec. 10, 2025. [25]
- On Dec. 10, Citi said Citibank, N.A. lowered its base lending rate to 6.75% from 7.00%, effective Dec. 11, 2025. [26]
These are not “turnaround-defining” events, but they fit into the broader picture of managing funding efficiency and navigating a shifting rate environment.
What to watch next for Citigroup in 2026
With markets closed on Christmas Day, investors are already looking ahead. Here are the catalysts that are likely to dominate Citi headlines early next year:
- Regulatory milestones: further progress toward lifting consent orders, and whether December’s Fed/OCC steps continue into 2026 [27]
- CFO transition (March 2026): how Gonzalo Luchetti’s appointment and the U.S. consumer reshuffle affect execution and accountability [28]
- Banamex IPO planning: updates on structure and timing, which Citi says remain dependent on conditions and approvals [29]
- Investor Day (May 7, 2026): new targets, updated ROTCE trajectory, and clarity on capital rules and distributions [30]
- Capital markets cycle: whether the investment banking rebound and trading performance can hold into 2026 [31]
The risk checklist: what could derail the bull case
Even after a strong 2025, Citi still carries risks that bulls and bears both acknowledge:
- Execution risk on data and controls: Reuters noted Citi’s long-running issues include data inconsistency and the need to meet regulatory expectations across multiple systems and entities. [32]
- Regulatory orders still remain: the OCC amendment was withdrawn, but the core 2020 consent order stays in force. [33]
- Banamex uncertainty: IPO windows can open and shut quickly; timing remains dependent on market conditions and approvals. [34]
- Cyclicality: investment banking and markets revenues can swing sharply if volatility, geopolitics, or recession fears hit risk appetite. [35]
The takeaway on Dec. 25
As of Dec. 25, 2025, Citigroup’s story is no longer just “a turnaround in progress.” It is increasingly a debate about how far the turnaround can go—and how much of that future improvement is already priced into the stock after a powerful year.
If the next several quarters bring continued regulatory normalization, steady ROTCE improvement toward Citi’s 2026 targets, and clean execution on simplification (including Banamex), Citi could keep narrowing the valuation gap that has long separated it from top-tier peers. If not, the rally risks stalling as investors demand proof, not promises.
This article is for informational purposes only and does not constitute investment advice.
References
1. www.marketbeat.com, 2. www.trefis.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.citigroup.com, 7. www.citigroup.com, 8. www.citigroup.com, 9. www.citigroup.com, 10. www.citigroup.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.marketbeat.com, 20. www.marketbeat.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.reuters.com, 24. www.reuters.com, 25. www.citigroup.com, 26. www.citigroup.com, 27. www.reuters.com, 28. www.citigroup.com, 29. www.citigroup.com, 30. www.citigroup.com, 31. www.reuters.com, 32. www.reuters.com, 33. www.reuters.com, 34. www.citigroup.com, 35. www.reuters.com
