Credit and Rates Income Slumps: Citi Sees Sharpest Decline

United States Global Systemically Important Banks (G-Sibs) saw aggregate trading revenue fall by 29.8% in the fourth quarter of 2025, reaching the lowest level since the fourth quarter of 2024. According to reporting from Risk Quantum on April 3, 2026, total mark-to-market and incidental revenue from trading book instruments across the eight banks totaled $22.8 billion, down from $32.5 billion recorded in the third quarter of 2025.

Citigroup experienced the most significant decline among the group, with its trading revenue slimming by $3.5 billion.

Citigroup Fourth Quarter Performance

The slump in trading revenue coincides with a broader financial miss for Citigroup in the final quarter of 2025. On January 14, 2026, the bank reported fourth-quarter revenue of $19.9 billion, which failed to meet the analyst consensus of $20.55 billion.

Reported net income for the fourth quarter fell to $2.5 billion, representing a 13.5% decrease from the prior year. The bank’s reported earnings per share (EPS) was $1.19, falling short of the $1.65 expected by Wall Street.

A primary driver of the earnings discrepancy was a $1.2 billion pre-tax loss resulting from the finalized sale of AO Citibank, the bank’s Russian subsidiary.

Operational and Regulatory Pressures

Beyond the loss from its Russian exit, Citigroup has faced compounding pressures from internal restructuring and external regulatory shifts. The bank is currently undergoing a massive transformation known as Project Bora Bora.

the financial institution is navigating a proposed federal cap on credit card interest rates. These factors contributed to a 3.4% drop in Citigroup shares during a single session on January 21, 2026, as the bank’s fourth-quarter results collided with geopolitical turbulence and regulatory changes.

Comparative Financial Metrics

Earlier in 2025, Citigroup’s financial results showed different trends. In the second quarter of 2025, the bank reported net income of $4.0 billion, an increase from $3.2 billion in the same period of the previous year. This growth was driven by higher revenues, though it was partially offset by increased expenses and a higher cost of credit.

In other segments, Citigroup’s Securities Services revenues reached $1.2 billion, a 15% increase. This growth was primarily driven by a 20% increase in non-interest revenue and a 9% increase in net interest income, which was largely attributed to higher deposit volumes.

Conversely, the bank experienced a decrease in net interest income linked to a decline in interest rates in Argentina, though this was partially offset by higher deposit volumes.