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1. Company Snapshot

1.a. Company Description

Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa.The company operates in two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG).The GCB segment offers traditional banking services to retail customers through retail banking, Citi-branded cards, and Citi retail services.


It also provides various banking, credit card, lending, and investment services through a network of local branches, offices, and electronic delivery systems.The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients.As of December 31, 2020, it operated 2,303 branches primarily in the United States, Mexico, and Asia.


Citigroup Inc.was founded in 1812 and is headquartered in New York, New York.

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1.b. Last Insights on C

Breaking News: Citigroup executives are optimistic about completing compliance work on major regulatory punishments, known as consent orders, later this year. This development may alleviate some regulatory overhang on the stock. Meanwhile, a Wells Fargo analyst suggests a new era of bank consolidation is emerging, driven by pent-up demand, a push for scale, and a generational shift in regulation. Citigroup's progress on consent orders and potential consolidation opportunities may impact its outlook. Analysts at various firms have mixed views, with some recommending a buy, hold or sell on Citigroup stock.

1.c. Company Highlights

2. Citi's Strong Q4 2025 Earnings: A Closer Look

Citi reported a strong fourth quarter 2025, with adjusted EPS of $1.81, although the actual EPS came out at $1.19, missing estimates of $1.65. Adjusted ROTC was 7.7%. For the full year, returns improved to 8.8%, a 180 basis point improvement, and adjusted net income surpassed $16 billion. Adjusted revenues were up 7%, with positive operating leverage in every one of its five businesses.

Publication Date: Jan -15

📋 Highlights
  • Strong Q4 Performance:: Adjusted EPS of $1.81 and adjusted ROTC of 7.7%, with full-year returns improving to 8.8% (180 bps growth).
  • Services Segment Excellence:: Delivered 8% revenue growth and 28%+ ROTCE for the year, with Q4 ROTCE hitting 36.1%.
  • Capital Return Commitment:: $13 billion in share repurchases in 2025, including $4.5 billion in Q4, under the $20 billion buyback plan.
  • Positive Operating Leverage:: All five businesses achieved positive operating leverage, with full-year adjusted net income exceeding $16 billion.
  • 2026 Guidance:: Targeting 10–11% ROTC and continued growth in NII ex-markets (5–6% rise), alongside an efficiency ratio of ~60%.

Segment Performance

The Services segment delivered with revenues up 8% and an ROTCE of over 28% for the year. Markets had a record year with an 11.6% ROTCE. Banking had a record year with an 11.3% ROTCE. Wealth delivered another year of strong performance with 14% revenue growth and an ROTCE of over 12%. US Personal Banking revenues were up 3%, driven by growth in branded cards and retail banking.

Outlook and Guidance

For 2026, Citi expects to deliver a 10 to 11% ROTC and another year of positive operating leverage. The company expects NII ex markets to be up between 5-6%, driven by volume growth and mix. Citi targets an efficiency ratio of around 60% for the full year and expects continued fee momentum across businesses to drive growth in NIRx markets.

Valuation and Return Metrics

With a P/TBV ratio of around 0.96, it appears that Citi's valuation is reasonable. The company's ROE is 6.72%, and ROIC is 1.36%. Citi's dividend yield is 2.06%, which is attractive for income investors. Analysts estimate next year's revenue growth at 3.5%. As Mark Mason stated, "We need to grow into our targets. Progress has been made since the last investor day, with targets of 10 to 11, but we aim for returns well above our cost of equity."

Capital Return and Share Buyback

The company repurchased over $13 billion in common shares during the year, including $4.5 billion in the fourth quarter, as part of its $20 billion plan. Citi is targeting a 100 basis point management buffer and expects to return to a CET1 ratio of around 12.6%. The company will continue to buy back shares in 2026.

Regulatory Progress and Transformation

Citi has made progress on its transformation, with over 80% of progress at or near target state, and is focused on completing the remaining work, which is primarily related to data and regulatory requirements. The regulators still have a consent order in place against Citigroup six years after its implementation.

3. NewsRoom

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Citigroup Issues New 6.25% Preferred: Hold Rated

Feb -10

Source: seekingalpha.com

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Citigroup (NYSE:C) Reaches New 12-Month High After Analyst Upgrade

Feb -10

Source: defenseworld.net

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3 Must-Buy Investment Bank Behemoths After Solid Q4 Earnings

Feb -09

Source: zacks.com

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Dividend Harvesting Portfolio Week 258: $25,800 Allocated, $2,784.30 In Projected Dividends

Feb -09

Source: seekingalpha.com

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Richard Pzena's Strategic Moves: A Closer Look at PPG Industries Inc.

Feb -06

Source: gurufocus.com

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Mayo Says This Is a 'New Era for Bank Consolidation' (Correction)

Feb -06

Source: youtube.com

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Exclusive: Citigroup aims to complete work on consent orders this year, sources say

Feb -06

Source: reuters.com

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Citi to match federal government's $1K Trump Account contributions for employees' children

Feb -05

Source: foxbusiness.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.10%)

6. Segments

Markets

Expected Growth: 3.5%

Markets segment is likely to grow slightly above the global average due to its diversified product offerings and the increasing demand for investment products. The growth is also driven by the segment's ability to adapt to changing market conditions.

Banking

Expected Growth: 3.3%

Banking segment is expected to grow above the global average due to its broad range of services and the increasing demand for corporate and investment banking services. The growth is driven by the segment's ability to provide tailored financial solutions to its clients.

Services

Expected Growth: 3.0%

Services segment is expected to grow in line with the global average, driven by the steady demand for transaction services and the increasing need for efficient cash management and trade finance solutions.

Wealth

Expected Growth: 3.2%

Wealth segment is expected to grow slightly above the global average, driven by the increasing demand for investment products and services. The growth is also driven by the segment's ability to provide tailored solutions to its clients.

U.S. Personal Banking (USPB)

Expected Growth: 3.1%

USPB segment is expected to grow in line with the global average, driven by the steady demand for consumer banking services and the increasing need for digital banking solutions.

ALL Other

Expected Growth: 0.0%

ALL Other segment is not expected to grow, as it represents unallocated costs and miscellaneous items that are not directly related to the core business segments.

Reconciling Items

Expected Growth: 0.0%

Reconciling Items segment is not expected to grow, as it represents adjustments to reconcile segment results to consolidated results, rather than a business segment with revenue growth potential.

7. Detailed Products

Consumer Banking

Provides traditional banking services to individuals, including checking and savings accounts, credit cards, personal loans, and mortgages.

Institutional Clients Group (ICG)

Offers corporate and investment banking services to large corporations, governments, and institutional investors.

Corporate and Investment Banking

Provides advisory services, capital markets, and transaction services to corporate clients.

Markets and Securities

Offers sales, trading, and research services to institutional clients across various asset classes.

Treasury and Trade Solutions (TTS)

Provides cash management, trade finance, and securities services to corporations and financial institutions.

Commercial Banking

Offers financial solutions to mid-sized companies, including cash management, lending, and trade finance.

Citi Branded Cards

Issues credit cards and provides payment solutions to consumers and businesses.

Citi Retail Services

Provides private label and co-brand credit cards to retailers and their customers.

8. Citigroup Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Citigroup Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the switching costs for customers are relatively high, which reduces the threat of substitutes.

Bargaining Power Of Customers

Citigroup Inc. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and global presence reduce the dependence on individual customers.

Bargaining Power Of Suppliers

Citigroup Inc. is a large financial institution with a significant market presence, which reduces the bargaining power of its suppliers. The company's suppliers are often smaller entities that rely on Citigroup's business, giving the company an upper hand in negotiations.

Threat Of New Entrants

The financial services industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements and complex regulatory hurdles. This reduces the threat of new entrants for Citigroup Inc.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Citigroup Inc. faces intense competition from other large financial institutions, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 74.21%
Debt Cost 3.98%
Equity Weight 25.79%
Equity Cost 11.37%
WACC 5.88%
Leverage 287.81%

11. Quality Control: Citigroup Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
JPMorgan Chase

A-Score: 6.6/10

Value: 5.6

Growth: 5.2

Quality: 6.5

Yield: 5.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Citigroup

A-Score: 6.4/10

Value: 6.3

Growth: 4.7

Quality: 4.4

Yield: 6.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
East West Bank

A-Score: 6.3/10

Value: 4.9

Growth: 7.6

Quality: 8.1

Yield: 5.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Wells Fargo

A-Score: 6.1/10

Value: 5.6

Growth: 5.1

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Bank of America

A-Score: 6.0/10

Value: 5.4

Growth: 5.2

Quality: 4.9

Yield: 4.0

Momentum: 7.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

122.15$

Current Price

122.15$

Potential

-0.00%

Expected Cash-Flows