Good morning. Citi’s fourth-quarter 2025 outcomes marked a worthwhile near 2025 and a turning level in its management, as longtime CFO Mark Mason prepares handy the reins to his successor amid strong earnings and an ongoing restructuring.
The financial institution reported This fall internet earnings of $2.5 billion, or $1.19 per diluted share, on $19.9 billion of income, down from $2.9 billion, or $1.34 per share, on $19.5 billion a 12 months earlier. On a reported foundation (together with a Russia-related notable merchandise), EPS of $1.19 and income of $19.9 billion topped FactSet estimates of $1.02 and $19.6 billion. On an adjusted foundation (excluding the notable merchandise), EPS was $1.81 on $21.0 billion of income, forward of consensus EPS of $1.65 and income of $20.9 billion.
“We ended the 12 months ready of energy, having executed in opposition to our strategic priorities,” Citi CFO Mark Mason mentioned on Wednesday morning in his closing quarterly media name as finance chief. The financial institution introduced in November that he’ll step down in early March. Mason, who joined Citi in 2001 and have become CFO in 2019, takes over as govt vice chairman and senior govt advisor to chairwoman and CEO Jane Fraser, whereas Gonzalo Luchetti, head of U.S. private banking, will succeed him as CFO. I beforehand reported that his long-term ambition is to grow to be a CEO, in line with individuals acquainted with the matter.
Mason mentioned Luchetti has pushed 13 consecutive quarters of optimistic working leverage in U.S. private banking, together with returns of greater than 14% within the fourth quarter and greater than 13% for the complete 12 months. “I believe he’s effectively outfitted and armed to come back in as our newly appointed CFO and proceed the momentum,” he mentioned.
Citi mentioned late final 12 months it will transfer its retail financial institution into the wealth enterprise, with the 2 card companies run collectively underneath Pam Habner. Over the steadiness of 2026, Mason mentioned he’ll assist with Citi’s Could 7 investor day and different strategic initiatives.
Citi is working towards a beforehand mentioned discount of about 20,000 roles. “We’ve made progress on that since 2022 and 2023, touchdown ultimately of 2025 at 226,000 staff,” Mason mentioned, including he expects headcount to proceed to pattern down as productiveness improves and instruments like AI are carried out. It has been reported that Citi is poised to remove about 1,000 positions this week, following earlier rounds of layoffs.
On the economic system, Mason mentioned the well being of the patron, total, has remained resilient. Citi’s largely prime (about 85%) card buyer base is displaying strong monetary self-discipline, with spending up 5% 12 months over 12 months, however decrease‑FICO shoppers are feeling extra strain from inflation and better costs, he defined.
As large banks report earnings, President Donald Trump’s proposal to cap bank card rates of interest at 10% has surfaced as a key subject. Mason mentioned there may be not but sufficient element to invest, however he referred to as affordability an vital challenge and mentioned Citi seems ahead to working with the administration on a constructive resolution.
“I additionally say that an rate of interest cap is just not one thing that we might or might assist,” he mentioned, arguing it will limit entry to credit score for many who want it most and have “a deleterious affect on the economic system.”
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Fortune 500 Energy Strikes
Dennis Okay. Cinelli was appointed CFO of Paramount, a Skydance Company (No. 147), efficient Jan. 15, and as such has resigned his board of administrators seat. Cinelli will succeed Andrew C. Warren, who has served as EVP and interim CFO since June 2025. Most not too long ago, Cinelli served as CFO of Scale AI. He beforehand held senior finance and operational roles at Uber, together with international head of strategic finance, and later operating the U.S. and Canada Mobility (Rides) enterprise. Earlier than Uber, Cinelli was with G.E. Ventures as CFO.
Each Friday morning, the weekly Fortune 500 Energy Strikes column tracks Fortune 500 firm C-suite shifts—see the newest version.
Extra notable strikes:
Deborah Ricci was appointed EVP and CFO of Acentra Well being, a expertise and well being options firm. Ricci joins Acentra Well being from Guidehouse Inc., the place she most not too long ago served as accomplice and chief monetary and administrative officer. Earlier in her profession, Ricci held a number of senior finance management roles, together with CFO positions at Constellis, Centerra Group, and A-T Options, and started her profession as a licensed public accountant with KPMG.
Rohan Ranadive was appointed managing director and CFO of GTCR, a non-public fairness agency. Ranadive succeeds Anna Could Trala, who’s retiring. Trala will stay affiliated with the agency, serving as a senior advisor going ahead. Ranadive brings greater than 20 years of expertise. He joins GTCR from Vista Fairness Companions, the place he was a managing director of finance operations. Earlier than that, he was the CFO of Aviditi Advisors and spent 12 years at TPG Capital in varied finance and accounting management roles.
Large Deal
BCG’s AI Radar 2026 international survey, launched this morning, finds that CEOs are recognizing that AI is greater than a expertise; it may well essentially change how organizations are run.
For instance, 94% of CEOs surveyed mentioned they’ll proceed to take a position even when AI doesn’t repay in 2026. CEOs additionally mentioned they’re more and more hands-on in AI-driven company transformation, with 72% saying they’re the primary choice maker on AI of their group. Three CEO archetypes emerge, with “trailblazer CEOs” main end-to-end AI transformation; 60% of trailblazers’ AI budgets might be spent on agentic AI.
“With AI spending set to ramp up additional this 12 months, the main target is shifting from ‘how a lot will we make investments?’ to ‘how will we flip larger AI budgets into actual enterprise affect?’” mentioned Vlad Lukic, international chief for AI at Scale at BCG. “The stakes are rising for management, as capital alone is just not sufficient with no clear technique and disciplined execution.”
The findings are based mostly on a worldwide survey of two,360 executives, together with 640 CEOs, throughout industries at firms incomes between at the least $100 million and greater than $5 billion in annual income.
Going deeper
“Can Saks’ new CEO restore the harm completed to the posh retailer by years of being handled as a ‘monetary plaything’?” is a Fortune article by Phil Wahba.
Wahba writes: “For the second time in his profession, luxurious govt Geoffroy van Raemdonck has been tasked with fixing an iconic division retailer firm introduced low by monetary engineering. In 2018, he was employed to repair Neiman Marcus Group, which was struggling to to maintain up with shifting client tendencies and unprofitable underneath the load of heavy debt from years of personal fairness possession. This time, the job is twice as large. On Tuesday, Van Raemdonck was appointed CEO of Saks World, the identical day as the posh division retailer large, which incorporates Neiman Marcus Group (and its Bergdorf Goodman division) and Saks Fifth Avenue, filed for Chapter 11 chapter safety.” Learn the whole article right here.
Overheard
“I’m optimistic that AI gained’t hole out the commercial workforce. Actually, incorporating AI at scale to assist a youthful workforce will be the solely solution to maintain it.”
—Kriti Sharma, CEO of IFS Nexus Black, writes in a Fortune opinion piece titled, “AI will infiltrate the commercial workforce in 2026—let’s apply it to coaching the following era, not changing them.”
