Summary
Citigroup Inc. (Citi) announced a significant strategic decision to sell its remaining operations in Russia, known as AO Citibank. The company's Board of Directors has approved this plan, with the sale anticipated to be finalized in the first half of 2026. This move will result in AO Citibank being classified as "held for sale" starting in the fourth quarter of 2025. This divestiture will lead to a pre-tax loss of approximately $1.2 billion (or $1.1 billion after-tax) in the fourth quarter of 2025, recognized as a reduction in Other Revenue via a valuation allowance. The loss is primarily driven by currency translation adjustment (CTA) losses, partially offset by the derecognition of a fully reserved net investment and anticipated sale proceeds. Importantly, Citi emphasizes that the cumulative impact of CTA, both in the reported loss and upon closing, will be capital neutral to its Common Equity Tier 1 Capital.
Key Highlights
- 1Citigroup Inc. Board of Directors has approved the sale of AO Citibank, its remaining Russian operations.
- 2The Russian operations will be classified as 'held for sale' as of Q4 2025, with the sale expected to close in the first half of 2026.
- 3A pre-tax loss on sale of approximately $1.2 billion ( $1.1 billion after-tax) is expected in Q4 2025.
- 4The loss is primarily due to currency translation adjustment (CTA) losses, partially offset by a benefit from derecognition of a reserved net investment and expected sale proceeds.
- 5The company states that the cumulative CTA impact will be capital neutral to Citi's Common Equity Tier 1 Capital.
- 6The loss on sale is subject to further changes, including foreign exchange movements and complexities of the sale process.
- 7Further details on Citi's Russia exposure can be found in its Q3 2025 Form 10-Q.