Citi To Sell AO Citibank, Take $1.2 Billion Loss In Russia Exit

by | Dec 30, 2025 | General

Citigroup Inc. (NYSE:C) said Monday its board has approved a plan to sell AO Citibank, marking the final step in exiting the bank’s remaining operations in Russia.

AO Citibank is currently reported within Citi’s Services, Markets, Banking, and All Other—Legacy Franchises segments.

Beginning in the fourth quarter of 2025, Citi will classify the business as held for sale, with the transaction expected to be signed and completed in the first half of 2026.

Also Read: Citi’s Push For Efficiency: Bank Inks Strategic Data Deal With LSEG

Expected Fourth-Quarter Loss

Citi expects to record an estimated pre-tax loss of about $1.2 billion, or $1.1 billion after tax, in the fourth quarter of 2025.

The loss primarily reflects roughly $1.6 billion in cumulative currency translation adjustment losses.

This impact is partially offset by approximately $200 million tied to the anticipated derecognition of a fully reserved net investment and $200 million in expected sale proceeds, based on figures as of September 30, 2025.

The combined effect of recognizing the CTA loss in the fourth quarter and releasing amounts from Accumulated Other Comprehensive Income at closing is expected to be capital neutral for Common Equity Tier 1.

The final loss may change, including due to fluctuations in foreign exchange rates.

Management Commentary And Outlook

Earlier this month, CFO Mark Mason said fourth-quarter Markets revenue is expected to decline in the low- to mid-single digits year over year, while investment banking fees are projected to rise in the mid-20% range.

Management projects that severance costs will increase in the fourth quarter but decline next year, alongside lower transformation expenses, with the bank maintaining its target efficiency ratio of below 60% in 2026.

Mason said the transition to incoming CFO Gonzalo Luchetti is structured to ensure continuity, while Luchetti expressed confidence in improving returns.

C Price Action: Citigroup shares were up 0.29% at $118.46 during premarket trading on Tuesday. The stock is approaching its 52-week high of $122.84, according to Benzinga Pro data.

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