NEW YORK, December 30, 2025, 5:35 PM ET — After-hours
- Citigroup shares fell after the bank flagged a roughly $1.2 billion pre-tax loss tied to its Russia exit.
- Citi said the hit is largely accounting-related and expects the deal to be capital neutral for its key regulatory ratio.
- The next near-term catalyst is Citi’s fourth-quarter earnings call on January 14.
Citigroup shares fell on Tuesday after the bank disclosed that selling its remaining Russia business will trigger a roughly $1.2 billion pre-tax loss.
The update lands days before the year ends and weeks ahead of Citi’s fourth-quarter results, when investors will see the impact of the accounting charge and any knock-on effects on capital and expenses.
Citi said the loss is “largely related to the currency translation adjustment,” a bookkeeping line that records gains or losses when a foreign unit’s accounts are converted into U.S. dollars. Reuters
At 5:35 p.m. ET, Citigroup stock was down about 0.8% at $117.21, after trading between $116.55 and $118.54 during the session.
A filing showed Citi’s board approved a plan to sell AO Citibank, which houses the firm’s remaining operations in Russia, and to classify the business as “held for sale” in the fourth quarter. “Held for sale” means it will be accounted for as an asset the company expects to dispose of. SEC
Citi said the sale is anticipated to sign and close in the first half of 2026.
The filing pegged the fourth-quarter loss at about $1.2 billion before tax, or roughly $1.1 billion after tax, and said it will be recognized as a reduction of “Other Revenue” through a valuation allowance. SEC
Citi said most of the loss reflects currency translation adjustment losses that will remain in accumulated other comprehensive income (AOCI) until closing. AOCI is an equity bucket that captures certain unrealized gains and losses that do not run through net income right away.
The bank added that the cumulative impact would be capital neutral to its Common Equity Tier 1 (CET1) ratio — the main measure regulators use to gauge a bank’s highest-quality capital.
“We believe investors will look past it as a non-core item,” wrote R. Scott Siefers, an analyst at Piper Sandler, pointing to progress in closing out “another legacy issue.” Reuters
Citi’s decline came in holiday-thin trading that left U.S. stocks choppy, with financials among the groups weighing on the major indexes, according to Reuters.
Investors are likely to shift quickly to Citi’s fourth-quarter earnings call on January 14, when CEO Jane Fraser and CFO Mark Mason are scheduled to discuss results and outlook, Citi’s investor calendar shows.
Before then, traders will watch for foreign-exchange moves that Citi said could change the final loss estimate, and for any developments on required approvals and closing conditions for the Russia sale.
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