New York, Jan 14, 2026, 11:57 a.m. EST — Regular session ongoing.
- Shares of Citigroup dropped close to 4% following the release of its quarterly earnings
- A $1.2 billion loss tied to Russia dragged on reported profits, but adjusted EPS still beat expectations
- Expense control, headcount reductions, and hitting a 2026 profit goal remain key investor concerns
Citigroup shares dropped Wednesday following the release of its fourth-quarter results, as investors balanced gains from dealmaking-driven revenue against losses linked to its planned exit from Russia. The stock slid roughly 3.8% to $111.93, trading within a range of $118.50 to $111.93.
The reaction is crucial as major U.S. banks shape early-year risk appetite, with Citi’s stock standing out as one of the sector’s more notable turnaround plays. Traders are looking for evidence that higher investment banking and services fees can balance out the challenges of managing a vast global bank during its restructuring.
It comes as Citi ramps up efforts to close the profitability gap with competitors. The bank has focused heavily on capital returns and simplifying operations; this quarter will reveal if that approach is still paying off or just driving up costs.
Citi reported fourth-quarter net income of $2.5 billion, or $1.19 per diluted share, on $19.9 billion in revenue. The results factored in a $1.2 billion loss on the sale related to its plan to offload AO Citibank in Russia. Stripping out that charge, earnings came in at $1.81 per share. Operating expenses rose 6% to $13.8 billion. (Citi)
Investment banking fees jumped 35% to $1.29 billion in the quarter, while revenue in the banking unit surged 78% to $2.2 billion, according to Reuters. David Wagner, equity head and portfolio manager at Aptus Capital Advisors, described it as a sign Citi’s turnaround is gaining steam. He added, “Citigroup could be officially shedding its laggard reputation.” (Reuters)
The selloff highlighted just how sensitive the market remains. Citi’s return on tangible common equity (RoTCE) — which excludes goodwill and other intangibles — came in at 5.1% this quarter, far short of its 10%-11% target for 2026. Meanwhile, expenses climbed higher.
Cost control is heating up. Citigroup plans to slash roughly 1,000 jobs this week, according to a source speaking to Reuters. The cuts are part of a larger effort to trim headcount. A company spokesperson said these moves are simply staffing tweaks to align with current demands. (Reuters)
The bank also pointed out it still has capacity to return cash. On Monday, Citi’s board approved a quarterly common dividend of $0.60 per share, set for payment on Feb. 27 to shareholders of record as of Feb. 2. (Citi)
Citi’s report arrived during a packed week for the sector. JPMorgan released its results Tuesday, followed by Bank of America and Wells Fargo on Wednesday. Investors are reassessing how trading, lending, and deal fees will shape 2026. (Reuters)
The path isn’t straightforward. Should the deal pipeline slow or lower interest rates compress net interest income — the gap between what banks make on loans versus what they pay on deposits — the boost from investment banking and services might dwindle, leaving Citi with less cushioning against climbing costs.
Investors are now focused on whether management will maintain the 10%-11% RoTCE goal for 2026, and how swiftly expenses and headcount begin to drop with the newest round of cuts. The next key dates for shareholders are the Feb. 2 record date and the Feb. 27 dividend payout.
