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Stock of the day
Citigroup
Citigroup has delivered a resilient quarterly result, exceeding profit expectations despite higher costs and heightened political uncertainty.
(AI video summary)
This video was created on 15 January 2026 for IG audiences by ausbiz.
NYSE code: C
Earnings strength tempered by expenses
In its latest quarterly report, Citigroup exceeded profit estimates, although profits fell by 13% in the fourth quarter (Q4) of 2025 due to higher expenses and the sale of its Russian branch. Yet, investment banking fees rose 35% to nearly $1.3 billion, highlighting strong mergers and acquisitions (M&A) performance.
The chief executive officer (CEO) signalled potential headcount reductions for efficiency. Despite solid financials, market reaction remained subdued due to political pressures, such as proposed credit card rate caps by President Trump.
Political uncertainty weighs on sentiment
The debate over a temporary 10% credit card rate cap, coincided with Citigroup's earnings. While the stock nearly doubled from April's lows, some investors remain wary. Federal Reserve (Fed) Chair Jerome Powell's resistance to policy changes is a focal point.
Investment outlook
Considered a high-risk option compared to peers like JPMorgan and Bank of America (BoA), Citigroup’s success hinges on M&A advancements and risk management. Up to $3 trillion in initial public offerings (IPOs) could change the landscape, yet stable returns may lie with BoAor JPMorgan.
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