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The investment banks Citigroup and Bank of America open their US quarterly reports with sustained growth in the final part of 2025. But the Russian dossier weighs heavily on Citi, which will cut 1000 jobs. On a weak Wall Street, both stocks opened the session in negative territory. The revenue boom is not enough: Citi loses 1.7% and Bank of America 2.5%
The Russian dossier weighs heavily on Citi
Earnings fell to $2.47 billion, or $1.19 a share, in the three months ended Dec. 31, from $2.9 billion, or $1.34 a share, a year earlier. The bank’s board of directors approved last month thethe sale of its Russian subsidiary, AO Citibank, to Renaissance Capital, resulting in a pre-tax loss of approximately $1.2 billion, largely due to currency translation.
Citigroup’s return on tangible equity was 5.1% in the fourth quarter, well below its 10-11% target for next year. Excluding the Russian loss, the yield was 7.7%.
Business and services, on the other hand, are doing well. Citigroup’s investment banking fees rose 35%,from $951 million a year earlier to $1.29 billion.
Citi’s banking division revenue increased 78%, reaching $2.2 billion in the fourth quarter, and the bank posted record mergers and acquisitions performance in 2025.
Citi CEO Jane Fraser said: “With record revenues and positive operating leverage across each of our five businesses, 2025 was a year of meaningful progress, where we demonstrated that the investments we are making are driving strong revenue growth.”
Bank of America grows by double digits
Bank of America closed 2025 reporting net profit of $30.5 billion, up 19% year over year,with EPS of $3.81. revenues amounted to 113.1 billion, an increase compared to 105.9 billion in 2024. The bank reports this in a note.
Fourth-quarter net income was $7.6 billion versus $6.8 billion,with diluted earnings per share of $0.98 versus $0.83, an increase of 18%. Revenue, net of interest expense, amounted to $28.4 billion (+7%), reflecting an increase in net interest margin (NII), asset management fees and sales and trading revenues. Net interest margin was $15.8 billion ($15.9 billion FTE), up 10%.
“Bank of America’s fourth quarter results capped a year of excellent earnings, with a net profit of over 30 billion dollars and an EPS growth of 19% compared to 2024. Thanks to solid revenue growth, positive operating leverage and a lower efficiency ratio, we improved year-over-year returns for both the full year and the quarter. With the resilience demonstrated by consumers and businesses, and also the increased focus on the regulatory habitat and tax and trade policies, we expect further economic growth in the coming year. Although numerous risks remain, we are optimistic about the performance of the US economy in 2026,” commented President and CEO Brian Moynihan.
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date: 2026-01-14 14:01:00