NEW YORK, January 1, 2026, 13:33 ET — Market closed
- Citigroup said its planned sale of AO Citibank in Russia implies a roughly $1.2 billion pre-tax loss to be recorded in fourth-quarter 2025 results.
- Citi shares last closed at $117.21 and were last at $116.69, down 0.4% from the prior close.
- Investors are watching Citi’s Jan. 14 results and the Fed’s Jan. 27-28 meeting for the next read on bank earnings pressure from rates.
Citigroup said it expects to record a pre-tax loss of about $1.2 billion as it moves to sell AO Citibank — its remaining operations in Russia — to Renaissance Capital.
The loss matters now because it is set to land in Citi’s fourth-quarter 2025 financials, just ahead of the bank’s scheduled earnings release in mid-January, when investors typically reset expectations for capital returns and costs.
Citi said the hit is largely tied to “currency translation adjustment” (CTA) — an accounting adjustment from converting a foreign unit’s financials into U.S. dollars — and that it would be capital neutral for its Common Equity Tier 1 (CET1) ratio, a key regulatory measure of bank capital strength. SEC+1
In a Form 8-K dated Dec. 29, the bank said its board approved a plan to sell AO Citibank and to report its remaining Russia business as “held for sale” in the fourth quarter, with signing and closing anticipated in the first half of 2026. SEC+1
The held-for-sale accounting treatment will result in an estimated fourth-quarter pre-tax loss of about $1.2 billion, or about $1.1 billion after tax, recognized through a valuation allowance, the filing showed.
Citi said the loss includes roughly $1.6 billion of CTA losses that will remain in accumulated other comprehensive income (AOCI) until closing, partially offset by about $0.2 billion from derecognising a fully reserved net investment and about $0.2 billion of expected sale proceeds, based on figures as of Sept. 30.
AOCI is an equity line on the balance sheet where certain unrealized gains and losses sit outside net income until they are realized. Citi also said the overall divestiture is expected to benefit its CET1 capital over time, mainly from deconsolidating associated risk-weighted assets, while the final loss could change with foreign-exchange moves.
Citi shares fell 0.8% on Dec. 30 after the bank disclosed the Russia sale approval, in a session when financial stocks weighed on broader U.S. indexes amid thin holiday trading, Reuters reported.
“Investors will look past it as a non-core item,” R. Scott Siefers at Piper Sandler wrote, arguing the Russia step adds to Citi’s progress on winding down legacy issues. Reuters
Rate expectations remain another key driver for bank stocks. Minutes released Tuesday showed Fed officials were deeply divided at the December meeting that delivered a quarter-point cut, lowering the benchmark overnight rate to a 3.5% to 3.75% range.
U.S. stock markets are closed Thursday for New Year’s Day and are set to reopen on Friday, Jan. 2, keeping trading thin around the turn.
Before the next session, investors also have Citi’s fourth-quarter results on deck: the bank has said it plans to publish numbers at about 8 a.m. ET on Jan. 14, followed by an earnings call around 11 a.m. ET.
Citi traded between $116.39 and $117.65 in its latest session, leaving that range as a near-term marker for traders when 2026 trading begins.
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