CITIGROUP INC 8-K

What Happened
Citigroup Inc. announced on December 29, 2025 that its Board approved a plan to sell AO Citibank, Citi’s remaining operations in Russia. Citi will classify the Russia business as "held for sale" in the fourth quarter of 2025 and expects the sale to sign and close in the first half of 2026. Citi reported a Q4 2025 pre‑tax loss on sale of approximately $1.2 billion (about $1.1 billion after tax), recognized as a reduction of Other Revenue.

Key Details

• Sale timing: Russia operations to be reported as held for sale in Q4 2025; anticipated signing and closing in H1 2026.
• Reported loss: Approximately $1.2 billion pre‑tax loss on sale (~$1.1 billion after tax) recognized in Q4 2025 (amounts based on balances as of Sept. 30, 2025).
• Loss components: ~ $1.6 billion of currency translation adjustment (CTA) losses will remain in Accumulated Other Comprehensive Income (AOCI) until closing, partially offset by ~ $0.2 billion from derecognition of a fully reserved net investment and ~ $0.2 billion expected sale proceeds.
• Capital impact: Citi says the CTA loss recorded and the release from AOCI upon closing would be capital neutral to Common Equity Tier 1 (CET1) capital; the loss amount is subject to change (e.g., foreign exchange movements).

Why It Matters
This is a material one‑time charge that will reduce Citi’s Q4 2025 Other Revenue by roughly $1.2 billion pre‑tax, but Citi expects no net CET1 capital impact from the CTA release at closing. The move signals Citi’s exit from remaining Russia operations, which may reduce ongoing country risk and operational exposure; however, the sale depends on negotiation, a signed agreement and regulatory approvals, and the final financial impact can change with FX and other factors. For more detail on Citi’s Russia exposure, see Citi’s 10‑Q for the quarter ended Sept. 30, 2025.