Good morning. Citi’s fourth-quarter 2025 results marked a profitable close to 2025 and a turning point in its leadership, as longtime CFO Mark Mason prepares to hand the reins to his successor amid solid earnings and an ongoing restructuring.
The bank reported Q4 net income of $2.5 billion, or $1.19 per diluted share, on $19.9 billion of revenue, down from $2.9 billion, or $1.34 per share, on $19.5 billion a year earlier. On a reported basis (including a Russia-related notable item), EPS of $1.19 and revenue of $19.9 billion topped FactSet estimates of $1.02 and $19.6 billion. On an adjusted basis (excluding the notable item), EPS was $1.81 on $21.0 billion of revenue, ahead of consensus EPS of $1.65 and revenue of $20.9 billion.
“We ended the year in a position of strength, having executed against our strategic priorities,” Citi CFO Mark Mason said Wednesday morning in his final quarterly media call as finance chief. The bank announced in November that he would step down in early March. Mason, who joined Citi in 2001 and became CFO in 2019, takes over as executive vice chairman and senior executive advisor to chairwoman and CEO Jane Fraser, while Gonzalo Luchetti, head of U.S. personal banking, will succeed him as CFO. I previously reported that his long-term ambition is to become a CEO, according to people familiar with the matter.
Mason said Luchetti has driven 13 consecutive quarters of positive operating leverage in U.S. personal banking, including returns of more than 14% in the fourth quarter and more than 13% for the full year. “I think he is well equipped and armed to come in as our newly appointed CFO and continue the momentum,” he said.
Citi said late last year it would move its retail bank into the wealth business, with the two card businesses run together under Pam Habner. Over the balance of 2026, Mason said he will help with Citi’s May 7 investor day and other strategic initiatives.
Citi is working toward a previously discussed reduction of about 20,000 roles. “We’ve made progress on that since 2022 and 2023, landing at the end of 2025 at 226,000 employees,” Mason said, adding he expects headcount to continue to trend down as productivity improves and tools like AI are implemented. It has been reported that Citi is poised to eliminate about 1,000 positions this week, following earlier rounds of layoffs.
On the economy, Mason said the health of the consumer, overall, has remained resilient. Citi’s largely prime (about 85%) card customer base is showing solid financial discipline, with spending up 5% year over year, but lower‑FICO consumers are feeling more pressure from inflation and higher prices, he explained.
As big banks report earnings, President Donald Trump’s proposal to cap credit card interest rates at 10% has surfaced as a key topic. Mason said there is not yet enough detail to speculate, but he called affordability an important issue and said Citi looks forward to working with the administration on a constructive solution.
“I also say that an interest rate cap is not something that we would or could support,” he said, arguing it would restrict access to credit for those who need it most and have “a deleterious impact on the economy.”
Sheryl Estrada
sheryl.estrada@fortune.com
