Six major U.S. banks are set to report annual profits reaching $157 billion, their second-highest ever, driven by increased trading and dealmaking activity.
Citigroup stock has risen almost 60% in the last 52 weeks. This week, the bank will eliminate 1,000 positions.
The cuts are part of a plan to reduce 20,000 roles by the end of 2026. CEO and Chair Jane Fraser stated the objective is to lower costs, improve returns, and build a more efficient organization.
With strong earnings anticipated, the job reductions are not expected to cause panic. They are projected to support margins from 2026 onward.
Another rate cut is anticipated in the first quarter of 2026. Expansionary monetary policies are likely to spur credit growth, bolstering Citigroup's core business. Increased financial system liquidity may also support positive price movements across asset classes.
For the fourth quarter of 2025, Citigroup reported revenue of $19.9 billion and net income of $2.5 billion. Its CET1 Capital Ratio stood at 13.2%, 160 basis points above the regulatory minimum.
Citigroup's stock has gained nearly 28% over the past six months. The bank today reported full-year 2025 revenue of $85.2 billion, a record, with positive operating leverage across all five business segments.
For the current financial year, Citigroup expects net interest income, excluding Markets, to grow 5% to 6%, supported by loan growth in cards and wealth, and deposit growth in services and wealth. The bank aims for a 60% efficiency ratio and another year of positive operating leverage.
Citigroup has exited 14 international consumer markets. It is investing in new products, digital assets, and AI to drive innovation and efficiency.
For 2026, the bank anticipates strong dealmaking activity in the Asia Pacific region, particularly mergers and acquisitions in China and India.
Among 25 analysts covering the stock, 14 rate it a Strong Buy, four a Moderate Buy, and seven a Hold, resulting in a consensus Moderate Buy rating. The mean price target is $128.50, implying 16% upside, with a most bullish target of $150 suggesting 35% potential gain.
Citigroup stock trades at a forward price-earnings ratio of 11.99 and a price-earnings-to-growth ratio of 0.47. It offers a dividend yield of 1.98%.