New York, January 14, 2026, 17:43 EST — After-hours
Citigroup (NYSE: C) shares fell 3.3% in after-hours trading on Wednesday to $112.41, after trading between $118.50 and $110.49 earlier in the day.
The latest move hits as U.S. banks roll into results season and investors try to gauge what still works: deal fees, sticky corporate cash, and consumer credit — or just tight expense control.
Citi sits right in that crossfire. CEO Jane Fraser has pushed a multi-year overhaul, and traders have grown impatient with any sign the path to stronger returns is slipping.
Citi reported fourth-quarter net income of $2.5 billion, or $1.19 a share, on revenue of $19.9 billion, according to its earnings materials. A $1.2 billion loss tied to its plan to sell AO Citibank in Russia weighed on the quarter; excluding that item, earnings were $1.81 per share, while operating expenses rose 6% to $13.84 billion. Citi said it returned about $17.6 billion to common shareholders in 2025 and ended the year with a 13.2% CET1 (common equity tier 1) capital ratio, about 160 basis points — 1.60 percentage points — above its regulatory requirement.
Under the hood, investment banking fees rose 35% to $1.29 billion and revenue in Citi’s banking unit jumped 78% to $2.2 billion, helped by a rebound in dealmaking, Reuters reported. Wealth revenue rose 7%, while markets revenue slipped 1% in the quarter; prime brokerage — the business that lends cash and securities to hedge funds — was one of the brighter spots. “The turnaround story for Citi continues,” said David Wagner, portfolio manager at Aptus Capital Advisors. 1
Citi’s slide deck sketched out the next test: net interest income excluding its markets business is expected to grow 5%–6% in 2026, driven mainly by card and wealth loan growth and higher deposits in services and wealth. Net interest income is what a bank earns on loans minus what it pays depositors. Citi also targeted an efficiency ratio — operating expenses as a share of revenue — of about 60% and reiterated a 10%–11% return-on-tangible-common-equity goal for 2026. 2
On Monday, Citi’s board declared a quarterly common-stock dividend of $0.60 per share, payable Feb. 27 to shareholders of record Feb. 2. 3
Inside the bank, Fraser told employees in a memo titled “The bar is raised” that Citi still expects some roles to shrink as it expands automation and AI tools. The memo referred to a plan to cut as many as 20,000 jobs over three years as part of a broader cost-saving push. 4
Still, the market’s reaction shows the stock has a narrow path. Citi’s 2026 targets assume cost cuts and revenue momentum both stick, while a softer M&A pipeline or a tougher consumer credit stretch would squeeze the gains that showed up in the quarter.
The broader tape was down: the SPDR S&P 500 ETF fell 0.5% and the Financial Select Sector SPDR ETF slipped 0.2%. JPMorgan was down 0.9%, Bank of America fell 3.7% and Wells Fargo slid 4.6%.
Next up, investors will watch Citi’s first-quarter 2026 earnings call on April 14 and its Investor Day on May 7 for updates on expenses, returns and the pace of the overhaul. 5
