Citigroup Inc. (NYSE: C) saw its stock decline following a quarterly earnings report that fell short of expectations, primarily due to $320 million in losses from asset divestitures in Russia. The results mark the first earnings miss for the bank in over two years.
- Citigroup reported EPS of $1.72, missing the $1.84 consensus estimate.
- $320 million in losses stemmed from asset sales in Russia.
- Total revenue rose 5% to $21.3 billion, but net income dropped 12% to $4.5 billion.
- The bank incurred a $410 million total charge in Q4 2025, including Russia-related write-downs.
- Stock declined 3.8% in after-hours trading, closing at $84.26.
- The earnings miss marks the first since Q2 2023.
Citigroup’s stock dropped 3.8% in after-hours trading after the financial services giant reported adjusted earnings per share of $1.72 for the fourth quarter of 2025, below the $1.84 analysts had forecast. The shortfall was largely driven by $320 million in non-operational losses tied to the sale of long-held assets in Russia, a legacy exposure the bank began winding down following the 2022 geopolitical shift. The Russia-related losses were part of a broader $410 million charge in the quarter, which also included restructuring costs and provisions for legacy credit exposures. Despite a 5% year-over-year increase in total revenue—reaching $21.3 billion—the bank’s net income declined by 12% to $4.5 billion. Citi’s investment banking revenue rose 9% due to strong M&A advisory activity, but this was offset by weaker loan growth and higher credit costs in certain international markets. The earnings miss and the specific mention of Russia’s impact sent ripples through the banking sector. Regulators and investors are now re-evaluating how major financial institutions are managing lingering geopolitical exposures, especially in sanctioned markets. Other large U.S. banks, including JPMorgan Chase and Bank of America, have also disclosed dormant positions in Russia, though none reported comparable write-downs. Market participants are closely watching whether Citigroup will revise its capital return plans. The bank had previously signaled a potential increase in share buybacks and dividends, but analysts now expect caution in the near term. The stock closed the regular trading session at $84.26, marking its weakest performance since October 2024.