{"schemaVersion":1,"research":true,"symbol":"c","name":"Citigroup","topic":"moat","path":"/stock/c/moat","status":"published","version":4,"updatedAt":"2026-10-18T12:37:25.020Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"uncertain","summary":"Citi demonstrates growing institutional demand, a substantial international operating network and an exclusive card partnership. The passages do not establish durable switching barriers, superior costs or network effects sufficient for a moat verdict. Pricing outcomes remain mixed across businesses. Improving earnings and completed simplification steps strengthen the operating assessment, while declining capital headroom, elevated distributions and unfinished control remediation warrant caution.","advantages":[{"mechanism":"switching_costs","claim":"Operating-deposit growth and increased transaction activity suggest embedded institutional relationships. However, disclosed activity and network reach do not establish the costs or difficulty of switching providers.","durability":"Current demand is demonstrated across reporting periods; durable customer dependency remains unproven.","risks":"Technology competition, service failures and regulatory constraints could weaken relationships. Deposit growth includes new clients and cannot be treated as a retention rate.","invalidation":"Persistent declines in operating deposits and clearing or cross-border activity, accompanied by client departures or sustained spread concessions, would undermine the embedded-relationship hypothesis.","competitors":[],"evidenceIds":["e1","e2","e3","e4"],"counterEvidenceIds":["e5","e6","e7"]},{"mechanism":"intangible_assets","claim":"The exclusive American Airlines issuing partnership provides current privileged distribution. Its duration and economic protection are not established by the supplied passages.","durability":"Exclusivity is disclosed, but renewal terms, termination protections and returns on the acquired portfolio are missing.","risks":"Partner payments and acquisition costs already burden card fee revenue. Termination and non-renewal are disclosed possibilities rather than demonstrated losses of this partnership.","invalidation":"Loss of exclusivity, non-renewal, or sustained deterioration in card economics after partner payments and credit losses would undermine the partnership's economic advantage.","competitors":[],"evidenceIds":["e8","e9"],"counterEvidenceIds":["e10","e11","e12"]}],"evidence":[{"id":"e1","sourceId":"filing-6","location":"Markets—international operating network","excerpt":"Markets maintains an international presence supported by trading floors in nearly 80 countries and Citi’s proprietary network in over 90 countries and jurisdictions."},{"id":"e2","sourceId":"filing-2","location":"Services—net interest income and average deposits","excerpt":"Net interest income increased 18%, primarily driven by a 19% increase in average deposit balances, driven by growth in both TTS and Securities Services, with growth across both North America and International."},{"id":"e3","sourceId":"filing-2","location":"Services—operating deposits and client relationships","excerpt":"The increase in average deposits was largely driven by higher operating deposits, as Citi continues to deepen relationships with existing clients and onboard new clients."},{"id":"e4","sourceId":"filing-2","location":"TTS—cross-border transaction activity","excerpt":"The increase in non-interest revenue was driven by a smaller impact from currency devaluation in Argentina and growth in underlying drivers, including an increase in cross-border transaction value of 13% and an increase in U.S."},{"id":"e5","sourceId":"filing-2","location":"Securities Services—deposit balances and spreads","excerpt":"The increase in net interest income was driven by higher average deposit balances, which grew 15%, partially offset by lower deposit spreads."},{"id":"e6","sourceId":"filing-1","location":"Risk Factors—AI competition","excerpt":"Citi also faces competition risks to the extent that competitors may be faster and more successful in developing and deploying AI technologies to improve processes, productivity, efficiency, products and services, and thereby gain competitive advantages over Citi (see the competition risk factor above)."},{"id":"e7","sourceId":"filing-1","location":"Risk Factors—competitive regulatory differences","excerpt":"Certain competitors may be subject to different and, in some cases, less stringent legal, regulatory and supervisory requirements, whether due to size, jurisdiction, entity type or other factors, placing Citi at a competitive disadvantage."},{"id":"e8","sourceId":"filing-2","location":"USCC—completed American Airlines portfolio acquisition","excerpt":"In April 2026, Citi completed the acquisition of the additional American Airlines co-branded card portfolio, including approximately $6.6 billion in loans from more than 2 million accounts."},{"id":"e9","sourceId":"filing-2","location":"USCC—exclusive issuing partnership","excerpt":"Citi is American Airlines’ exclusive credit card issuing partner."},{"id":"e10","sourceId":"filing-2","location":"USCC—year-to-date fee revenue, partner payments and annual fees","excerpt":"Non-interest revenue decreased 18%, driven by higher partner payment accruals and new-account acquisition costs, reflecting increased investments, partially offset by higher annual fees and net interchange."},{"id":"e11","sourceId":"filing-1","location":"Risk Factors—co-brand and private-label relationship risks","excerpt":"Citi’s co-branding and private label relationships could also be negatively impacted by, among other things, the general economic environment, including the impacts stemming from potential increases in unemployment, inflation or interest rates or lower economic growth rates, as well as a risk of recession; changes in consumer sentiment, spending patterns and credit card usage behaviors; a decline in sales and revenues, partner store closures, any reduction in air and business travel, or other operational difficulties of the retailer or merchant; changes in partner business strategies, including changes in products and services offered; termination or non-renewal of partner agreements, including early termination due to a contractual breach or exercise of other early termination rights; or other factors, including bankruptcies, liquidations, restructurings, consolidations or other similar events, whether due to a challenging macroeconomic environment or otherwise."},{"id":"e12","sourceId":"filing-2","location":"USCC—earnings, expenses, credit quality and customer activity table","excerpt":"Second Quarter Six Months In millions of dollars, except as otherwise noted 2026 2025 % Change 2026 2025 % Change Net interest income $ 5,180 $ 4,918 5 % $ 10,296 $ 9,902 4 % Fee revenue Interchange fees 2,740 2,459 11 5,144 4,744 8 Card rewards and partner payments (3,563) (3,008) (18) (6,460) (5,829) (11) Other(1) 160 103 55 272 199 37 Total fee revenue $ (663) $ (446) (49) % $ (1,044) $ (886) (18) % All other(2) 4 (1) NM 26 22 18 Total non-interest revenue $ (659) $ (447) (47) % $ (1,018) $ (864) (18) % Total revenues, net of interest expense $ 4,521 $ 4,471 1 % $ 9,278 $ 9,038 3 % Total operating expenses $ 1,794 $ 1,626 10 % $ 3,505 $ 3,317 6 % Net credit losses on loans 1,850 1,856 — 3,592 3,810 (6) Credit reserve build (release) for loans 40 (5) NM 116 (179) NM Provision for credit losses on unfunded lending commitments(3) (272) — NM — — — Provisions for benefits and claims (PBC), and other assets — 1 (100) 2 4 (50) Provisions for credit losses and PBC $ 1,618 $ 1,852 (13) % $ 3,710 $ 3,635 2 % Income from continuing operations before taxes $ 1,109 $ 993 12 % $ 2,063 $ 2,086 (1) % Income taxes 257 235 9 479 490 (2) Income from continuing operations $ 852 $ 758 12 % $ 1,584 $ 1,596 (1) % NCI — — — — — — Net income $ 852 $ 758 12 % $ 1,584 $ 1,596 (1) % Efficiency ratio 40 % 36 % 38 % 37 % Balance Sheet data (in billions of dollars) EOP assets $ 182 $ 171 6 % Average assets 178 168 6 $ 175 $ 169 4 % 27 Key drivers(4)(5) (in billions of dollars, except as otherwise noted) Average loans $ 177 $ 168 5 % $ 174 $ 168 4 % ACLL as a percentage of EOP loans 7.68 % 8.08 % NCLs (annualized) as a percentage of average loans 4.19 % 4.43 % 4.16 % 4.57 % Revenue rate(6) 10.25 % 10.67 % 10.75 % 10.85 % NII(7) (annualized) as a percentage of average loans 11.74 % 11.74 % 11.93 % 11.89 % GPCC(5) Credit card spend volume $ 162 $ 145 12 % $ 304 $ 278 9 % Average active accounts(8) (in thousands of accounts) 47,446 44,761 6 46,832 44,909 4 Average loans $ 145 $ 134 8 $ 142 $ 134 6 NCLs (annualized) as a percentage of average loans 4.01 % 4.20 % 3.94 % 4.33 % Loans 90+ days past due as a percentage of EOP loans 1.21 1.30 Loans 30–89 days past due as a percentage of EOP loans 1.17 1.12 New credit cards account acquisitions(9) (in thousands of accounts) 4,004 1,704 135 5,903 3,400 74 PLCC Credit card spend volume $ 13 $ 14 (5) % $ 24 $ 25 (4) % Average active accounts(8) (in thousands of accounts) 21,718 23,660 (8) 22,092 23,944 (8) Average loans $ 28 $ 30 (6) $ 29 $ 30 (6) NCLs (annualized) as a percentage of average loans 4.79 % 5.18 % 4.92 % 5.44 % Loans 90+ days past due as a percentage of EOP loans 1.92 2.00 Loans 30–89 days past due as a percentage of EOP loans 1.84 1.89 New credit card account acquisitions(9) (in thousands of accounts) 1,372 1,551 (12) 2,415 2,695 (10) (1) Primarily related to annual fees, net of new-account acquisition costs."},{"id":"e13","sourceId":"filing-2","location":"TTS—deposit balances and realized spreads","excerpt":"The increase in net interest income was driven by higher average deposit balances, which grew 19%, and higher deposit spreads."},{"id":"e14","sourceId":"filing-2","location":"Corporate Lending—lower spreads and balances","excerpt":"Excluding the impact of gain (loss) on loan hedges, Corporate Lending revenues decreased 4%, driven by lower loan spreads and balances."},{"id":"e15","sourceId":"filing-1","location":"Services—2025 average and operating deposit growth","excerpt":"Average deposits increased 7%, driven by growth in TTS and Securities Services, with growth across both International and North America, largely driven by an increase in operating deposits."},{"id":"e16","sourceId":"filing-3","location":"Financial reconciliations—returns, shares and distributions","excerpt":"2024 Change in bps 2023 Citigroup Services Markets Banking Wealth USPB Citigroup Services Markets Banking Wealth USPB Citigroup Services Markets Banking Wealth USPB Citigroup End-of-period common shares outstanding (C) 1,747,547,001 1,877,071,466 Book value per share [(A)/(C)] $110.01 $101.62 Tangible book value per share [(B)/(C)] $97.06 $89.34 Average tangible common equity during 2025 and 2024 $170,572 $24,700 $50,400 $20,600 $12,300 $23,400 $166,721 Return on tangible common equity—as reported 7.7% 28.6% 11.6% 11.3% 12.1% 13.2% 7.0% Less: Impact of notable items above (110) bps Total Citigroup RoTCE, excluding notable items 8.8% Average common equity $194,023 $190,070 Return on common equity [(reported net income less preferred dividends)/average common equity] 6.8% 6.1% Common dividends $4,340 $4,218 Common stock repurchases 13,250 2,500 Distributions to common shareholders (total payout) $17,590 $6,718 Total payout ratio [total payout/(net income less preferred dividends)] 133% 58% Table of Contents CITIGROUP INC."},{"id":"e17","sourceId":"filing-2","location":"Executive Summary—June 2026 CET1 ratio and regulatory headroom","excerpt":"•Citi’s Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach was 12.8% as of June 30, 2026, approximately 120 basis points above the regulatory requirement."},{"id":"e18","sourceId":"filing-2","location":"Consolidated Statement of Cash Flows—earnings and investments","excerpt":"and Subsidiaries (UNAUDITED) Six Months Ended June 30, In millions of dollars 2026 2025 Cash flows from operating activities of continuing operations Net income before attribution of noncontrolling interests $ 11,962 $ 8,140 Net income attributable to noncontrolling interests 346 57 Citigroup’s net income $ 11,616 $ 8,083 Income (loss) from discontinued operations, net of taxes (1) (1) Income from continuing operations—excluding noncontrolling interests $ 11,617 $ 8,084 Adjustments to reconcile net income to net cash provided by (used in) operating activities of continuing operations Net loss (gain) on sale of significant disposals(1) (3) 186 Depreciation and amortization 2,262 2,147 Deferred income taxes 189 220 Provisions for credit losses and for benefits and claims 5,327 5,595 Realized gains from sales of investments (439) (259) Impairment losses on investments and other assets 204 97 Change in trading account assets (97,290) (125,897) Change in trading account liabilities 24,395 30,106 Change in brokerage receivables net of brokerage payables 20,597 11,160 Change in loans held-for-sale (HFS) (891) (4,810) Change in other assets (12,447) (8,588) Change in other liabilities 3,342 437 Other, net (2,815) (13,765) Total adjustments $ (57,569) $ (103,371) Net cash provided by (used in) operating activities of continuing operations $ (45,952) $ (95,287) Cash flows from investing activities of continuing operations Change in securities borrowed and purchased under agreements to resell $ (48,460) $ (49,830) Change in loans (44,146) (40,293) Proceeds from divestitures(1) 377 — Purchase of portfolio of consumer loans (7,200) — Proceeds from sales and securitizations of loans 4,094 2,063 Available-for-sale (AFS) debt securities Purchases of investments (202,611) (140,047) Proceeds from sales of investments 60,306 54,554 Proceeds from maturities of investments 100,903 91,153 Held-to-maturity (HTM) debt securities Purchases of investments (1,183) (5,006) Proceeds from maturities of investments 23,143 41,335 Capital expenditures on premises and equipment and capitalized software (2,966) (3,272) Proceeds from sales of premises and equipment and repossessed assets 43 16 Other, net (914) 378 Net cash provided by (used in) investing activities of continuing operations $ (118,614) $ (48,949) Statement continues on the next page."},{"id":"e19","sourceId":"filing-2","location":"Consolidated Statement of Cash Flows—funding, distributions and cash","excerpt":"98 CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (Continued) Six Months Ended June 30, In millions of dollars 2026 2025 Cash flows from financing activities of continuing operations Dividends paid $ (2,714) $ (2,651) Issuance of preferred stock 1,785 1,995 Redemption of preferred stock (2,300) (3,500) Treasury stock acquired (10,300) (3,750) Stock tendered for payment of withholding taxes (1,226) (770) Proceeds from divestitures(2) 2,492 — Change in securities loaned and sold under agreements to repurchase 63,028 93,158 Issuance of long-term debt 84,489 67,498 Payments and redemptions of long-term debt (59,226) (46,333) Change in deposits 89,034 79,363 Change in short-term borrowings 17,100 7,055 Net cash provided by (used in) financing activities of continuing operations $ 182,162 $ 192,065 Effect of exchange rate changes on cash, due from banks and deposits with banks $ (762) $ 13,112 Change in cash, due from banks and deposits with banks 16,834 60,941 Cash, due from banks and deposits with banks at beginning of period 349,579 276,532 Cash, due from banks and deposits with banks at end of period $ 366,413 $ 337,473 Cash and due from banks (including segregated cash and other deposits) $ 24,663 $ 24,991 Deposits with banks, net of allowance 341,750 312,482 Cash, due from banks and deposits with banks at end of period $ 366,413 $ 337,473 Supplemental disclosure of cash flow information for continuing operations Cash paid during the period for interest $ 39,708 $ 39,284 Non-cash investing activities(1)(3) Decrease in net loans associated with divestitures reclassified to HFS $ — $ 1,680 Transfers to loans HFS (Other assets) from loans HFI 3,744 1,942 Non-cash financing activities(1)(3) Decrease in deposits associated with divestitures reclassified to HFS $ — $ 6,088 (1) See “Significant Disposals” in Note 2."},{"id":"e20","sourceId":"filing-2","location":"Credit Risk—corporate portfolio facility ratings","excerpt":"The following table presents the corporate credit portfolio by facility risk rating as a percentage of the total corporate credit portfolio: Total exposure June 30, 2026 December 31, 2025 AAA/AA/A 47 % 49 % BBB 31 29 BB/B 20 20 CCC or below 2 2 Total 100 % 100 % Note: Total exposure includes direct outstandings and unfunded lending commitments."},{"id":"e21","sourceId":"filing-2","location":"Executive Summary—credit losses and allowance build","excerpt":"Citi’s total provisions for credit losses and for benefits and claims were $2.5 billion, reflecting net credit losses of $2.4 billion and a net allowance for credit losses (ACL) build of $118 million."},{"id":"e22","sourceId":"filing-2","location":"Executive Summary—year-over-year credit-loss increase","excerpt":"Net credit losses were up 8% from the prior-year period, driven by increases in Banking and Legacy Franchises (managed basis)."},{"id":"e23","sourceId":"filing-1","location":"Market Risk—directional interest-rate sensitivity","excerpt":"For the U.S. dollar, exposure to downward rate shocks is larger in magnitude than to upward rate shocks."},{"id":"e24","sourceId":"filing-2","location":"USCC—year-to-date credit-loss improvement","excerpt":"Net credit losses decreased 6%, driven by improved credit performance in both PLCC and GPCC."},{"id":"e25","sourceId":"filing-1","location":"Executive Summary—2025 consolidated net income","excerpt":"Citigroup reported net income of $14.3 billion, or $6.99 per share."},{"id":"e26","sourceId":"filing-1","location":"Executive Summary—prior-year consolidated net income","excerpt":"This compared to net income of $12.7 billion, or $5.94 per share in the prior year."},{"id":"e27","sourceId":"filing-1","location":"Transformation—OCC amendment termination","excerpt":"Additionally, in December 2025, the OCC terminated its July 2024 amendment to Citibank’s 2020 Consent Order (see “Citi’s Multiyear Transformation” below)."},{"id":"e28","sourceId":"filing-1","location":"Transformation—continuing consent-order remediation","excerpt":"9 CITI’S MULTIYEAR TRANSFORMATION As previously disclosed, Citi’s transformation, including the remediation of its consent orders with the FRB and OCC, is a multiyear endeavor that is not linear."},{"id":"e29","sourceId":"filing-2","location":"Executive Summary—completed divestiture milestones","excerpt":"•Citi continued to make progress on its remaining divestitures, including (i) completing the sale of the Poland consumer banking business and (ii) closing an additional Banamex equity sale."},{"id":"e30","sourceId":"filing-1","location":"Executive Summary—Banamex goodwill impairment","excerpt":"•Banamex-related notable item: expenses included a goodwill impairment of $726 million ($714 million after-tax) related to Citi’s agreement to sell a 25% equity stake in Grupo Financiero Banamex, S.A."},{"id":"e31","sourceId":"filing-3","location":"Executive Compensation—award mix, vesting and clawbacks","excerpt":"ELEMENT AWARD TYPE PORTION OF TOTAL INCENTIVE COMPENSATION PERFORMANCE LINK AND VESTING COMPENSATION TYPE Salary N/A N/A • Fixed portion of total pay at a competitive level that enables us to attract and retain talent Cash Short-Term Incentive Annual Bonus CEO: 15% Other NEOs: 40% • Performance assessment determines amount Cash Long-Term Incentives Performance Share Units CEO: 50% Other NEOs: 30% • Performance assessment and share price determine target number of units • Earned units are based on financial metrics over a three-year performance period (a description of the metrics for 2026 awards is included on pages 87 to 88) • Earned units are paid following a three-year performance period • Ultimate realizable value is based on performance achievement and TSR • Award capped at 100% of target if our TSR is negative over performance period • Subject to cancellation and clawbacks Equity-linked, performance-based and cash-settled Deferred Stock Awards CEO: 35% Other NEOs: 30% • Performance assessment and share price determine number of shares • Ultimate realizable value is based on future share price • Settled ratably over a four-year period • Subject to cancellation and clawbacks including the performance-based vesting condition described on page 93 Equity Citi 2026 Proxy Statement Table of Contents Proposal 3: Advisory Vote to Approve Our 2025 Executive Compensation 87 Performance Share Units Under the general structure of our annual executive compensation program, 50% of CEO variable pay and 30% of other NEO variable pay is awarded as PSUs."},{"id":"e32","sourceId":"filing-3","location":"Executive Compensation—actual performance units earned","excerpt":"Performance Share Units As described on page 89, the Compensation Committee determined that 51.2% of the target number of shares subject to PSUs granted as part of our 2022 incentive compensation awards were earned for the three-year performance period from 2023 through 2025."},{"id":"e33","sourceId":"filing-3","location":"Executive Compensation—realized payout value","excerpt":"The resulting payout value was equal to 126% of initial value, including the impact of both financial performance and TSR during the performance period."},{"id":"e34","sourceId":"filing-3","location":"Board leadership—combined Chair and CEO roles","excerpt":"Regarding our Board’s leadership, after careful deliberation, we decided in October to elect our CEO, Jane Fraser, as Chair of the Board, and to elect John Dugan in the newly established role of Lead Independent Director."},{"id":"e35","sourceId":"filing-3","location":"Corporate Governance—Lead Independent Director authority","excerpt":"● The Lead Independent Director presides at all meetings of the Board at which the Chair is not present, including executive sessions of the independent directors, and has the authority to call special meetings and executive sessions of the Board and of the independent directors."},{"id":"e36","sourceId":"filing-3","location":"Corporate Governance—compensation committee independence","excerpt":"The Board has determined that in addition to being independent according to the Board’s independence standards as set out in its Corporate Governance Guidelines, each of the members of the Compensation, Performance Management and Culture Committee is independent according to the corporate governance rules of the NYSE."},{"id":"e37","sourceId":"filing-3","location":"Corporate Governance—related-party transaction recusals","excerpt":"Directors and executive officers may not participate in any discussion or approval of a related party transaction in which they or any member of their immediate family or Primary Business Affiliations is a related person, except that the Director or executive officer must provide all material information concerning the related party transaction to the Nomination, Governance and Public Affairs Committee."},{"id":"e38","sourceId":"filing-3","location":"Executive Compensation—October 2025 option grant and fair value","excerpt":"(1) One million options were granted in October 2025 with a grant date fair market value of $28.6 million."},{"id":"e39","sourceId":"filing-2","location":"Executive Summary—compensation costs and productivity savings","excerpt":"The increase in compensation and benefits expenses was driven by higher performance-related and other compensation and benefits expenses, and higher compensation associated with investments in the businesses, largely offset by productivity savings and lower transformation expenses."},{"id":"e40","sourceId":"filing-3","location":"Operational modernization—applications retired or replaced","excerpt":"Continued to optimize, modernize and simplify Citi by retiring or replacing 548 applications during 2025 (representing 9% of all applications)."},{"id":"e41","sourceId":"filing-2","location":"Executive Summary—drivers of quarterly earnings growth","excerpt":"Net income increased 45% versus the prior-year period, driven by higher revenues and a lower provision for credit losses, partially offset by higher expenses."},{"id":"e42","sourceId":"filing-3","location":"Board letter—year-end CET1 and regulatory headroom","excerpt":"since before the pandemic, and concluded the year with a CET1 capital ratio of 13.2 percent, roughly 160 basis points above its minimum"}],"changes":["The uncertain moat verdict is unchanged: network reach, institutional activity and exclusivity support franchise potential but do not establish durable economic barriers.","Added evidence-based assessments of compensation alignment, governance, regulatory capital, credit quality and capital allocation.","The expanded evidence shows improving consolidated earnings alongside a 133% common payout ratio in 2025 and lower disclosed CET1 headroom by June 2026."],"limitations":["All evidence is issuer disclosure. Reported operating results and contractual facts support numerical assessments; management praise and leadership assertions do not establish exceptional performance.","No supplied passage establishes named competitor coverage. American Airlines is a partner; entities appearing in litigation, trustee or executive-history passages are not established competitors.","Switching costs, comparative unit costs, network effects and sustained competitive returns are not demonstrated. Insufficient moat evidence is distinct from demonstrated absence of a moat.","Pricing evidence is segment-specific and affected by interest rates, balance mix and partner economics. Aggregate fee growth does not establish higher unit prices.","Retention is assessed indirectly from deposits and customer activity; acquisition and market-valuation effects prevent treating growth as organic retention.","Actual liquidity ratios, uninsured-deposit concentration, complete current leverage ratios and quantified current interest-rate stress results are absent.","Financial grades use filings dated February 20, April 2 and August 6, 2026, all within 550 days of October 18, 2026. Dates retain their filed meaning.","The proxy's proposed additional share authorization is not treated as approved. Granted awards and disclosed payout outcomes are distinguished from future vesting.","No supplied evidence establishes September or October 2026 operating results."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":null,"rationale":"International reach and exclusive distribution are established, but their ability to sustain superior economics against competitors is not.","evidenceIds":["e1","e9"]},{"criterion":"durability","grade":null,"rationale":"Deposit growth across periods supports franchise continuity, but neither switching barriers nor the partnership's contractual duration is disclosed.","evidenceIds":["e2","e15","e9"]},{"criterion":"customer_dependency","grade":null,"rationale":"Operating deposits suggest workflow relevance; the passages do not establish customer inability or economic reluctance to switch.","evidenceIds":["e3"]},{"criterion":"erosion_resilience","grade":null,"rationale":"Business growth coexists with spread compression and competitive risks; durable protection against erosion cannot be established.","evidenceIds":["e4","e5","e6","e14"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Higher TTS deposit spreads and card annual fees contrast with lower Securities Services deposit spreads and Corporate Lending spreads. Outcomes are mixed and do not establish broad pricing power.","evidenceIds":["e13","e5","e14","e10"]},{"criterion":"retention","grade":2,"rationale":"Operating-deposit growth across periods supports repeat institutional demand indirectly. Card activity is mixed: general-purpose active accounts grew while private-label accounts declined; acquisition effects limit interpretation.","evidenceIds":["e15","e3","e12","e8"]},{"criterion":"margin_resilience","grade":2,"rationale":"Consolidated earnings improved despite higher expenses, while USCC's year-to-date efficiency ratio worsened and net income declined slightly. Lower provisioning contributed to quarterly improvement, limiting evidence of durable pricing-supported resilience.","evidenceIds":["e41","e12","e10"]},{"criterion":"contractual_freedom","grade":null,"rationale":"Exclusivity and partner-payment obligations are disclosed, but the supplied terms do not establish Citi's rights to reset customer prices or renegotiate partner economics.","evidenceIds":["e9","e10","e11"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Completed divestitures and rising earnings are constructive. Distributions exceeded common earnings in 2025, CET1 headroom subsequently declined, and Banamex incurred an impairment. Outcomes are mixed.","evidenceIds":["e29","e25","e26","e16","e17","e30"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual compensation structures include multiyear performance units, deferred equity and clawbacks. Only 51.2% of the referenced PSU target was earned, demonstrating performance contingency, although share appreciation raised payout value to 126% of initial value. Exceptional alignment is not established.","evidenceIds":["e31","e32","e33"]},{"criterion":"execution","grade":2,"rationale":"Earnings growth, completed divestitures, application retirement and termination of the OCC amendment demonstrate progress. Continuing consent-order remediation prevents treating the transformation as completed or fully validated.","evidenceIds":["e18","e29","e40","e27","e28"]},{"criterion":"governance","grade":2,"rationale":"Independent compensation oversight, recusal rules and substantive Lead Independent Director powers provide safeguards. Combining the Chair and CEO roles and continuing control remediation make the assessment mixed.","evidenceIds":["e34","e35","e36","e37","e28"]}]}],"financialAssessments":[{"category":"financial_strength","checks":[{"criterion":"capital_adequacy","grade":2,"rationale":"June 2026 Standardized CET1 was 12.8%, with approximately 120 basis points of disclosed regulatory headroom, versus roughly 160 basis points at year-end 2025. This supports current compliance but shows a reduced cushion; full current leverage and Advanced Approaches ratios are unavailable.","evidenceIds":["e17","e42"]},{"criterion":"liquidity_funding","grade":2,"rationale":"Higher operating deposits and $366.4 billion of cash, due from banks and deposits with banks support funding capacity. Borrowing also increased. Missing funding-concentration and actual liquidity-ratio disclosures limit conclusions about stress resilience.","evidenceIds":["e2","e3","e19"]},{"criterion":"asset_liability_risk","grade":2,"rationale":"Corporate exposures were predominantly internally rated investment grade and year-to-date card losses improved. Consolidated quarterly credit losses nevertheless increased 8%, and disclosed rate sensitivity is greater for downward dollar-rate shocks. Quantified current stress magnitudes are missing.","evidenceIds":["e20","e24","e21","e22","e23"]},{"criterion":"earnings_resilience","grade":3,"rationale":"Consolidated net income increased from $12.7 billion to $14.3 billion in 2025; first-half 2026 net income reached $11.616 billion versus $8.083 billion. This demonstrates strong recent earnings, with lower quarterly provisioning contributing to growth and no exceptional through-cycle durability established.","evidenceIds":["e25","e26","e18","e41"]}]},{"category":"capital_allocation","checks":[{"criterion":"capital_efficiency","grade":2,"rationale":"Reported consolidated RoTCE improved to 7.7% from 7.0%, while common ROE improved to 6.8% from 6.1%. Services' 28.6% RoTCE was substantially higher than the group result. These accounting-scope differences show uneven capital productivity; no cost-of-equity comparison is established.","evidenceIds":["e16"]},{"criterion":"distributions_and_buffers","grade":2,"rationale":"Actual 2025 common distributions of $17.59 billion represented 133% of common earnings. First-half 2026 treasury-stock purchases and dividends remained substantial, while June CET1 remained above its disclosed requirement with a smaller cushion. Returns are demonstrated, but their pace warrants caution.","evidenceIds":["e16","e19","e17","e42"]},{"criterion":"dilution_and_cost","grade":2,"rationale":"Year-end common shares declined from approximately 1.877 billion to 1.748 billion in 2025. Offset against that reduction are an actual option grant with $28.6 million grant-date fair value and higher compensation expenses in 2026. Total compensation-related dilution and funding costs are not fully isolated.","evidenceIds":["e16","e38","e39","e19"]},{"criterion":"investment_discipline","grade":2,"rationale":"Completed divestitures and application retirement demonstrate implemented simplification. The card acquisition added loans and accounts, but subsequent returns are not isolated, partner costs rose, and Banamex incurred an impairment. Spending and actions are evidenced; consistently attractive investment outcomes are not.","evidenceIds":["e29","e40","e8","e18","e10","e30"]}]}],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","financialAssessmentPolicy":"financial-industry-1","financialSector":"bank","basisHash":"124127c919786686e00e5ddd9bba1d0e71893cfe2b506461d4ec60dd284111b8","updatedAt":"2026-10-18T12:37:25.020Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100126000011/c-20251231.htm","publishedAt":"2026-02-20","sha256":"a8047ff7615505e22085f07af63edf7090bda7c27cc9148713b9a838b693ea90","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100126000045/c-20260630.htm","publishedAt":"2026-08-06","sha256":"99d05330f061855ae07d1d59510e02ecac40e42f618fcf08f4a0dc80c00324ef","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/831001/000120677426000185/citi4583461-def14a.htm","publishedAt":"2026-04-02","sha256":"81eedb2a996bab77bc259e3a6266585488bcec511fc967c13fc251eedec5b0ac","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100125000067/c-20241231.htm","publishedAt":"2025-02-21","sha256":"de309c73400672f033ad41645e7f1c15dcf07e7b3e306ba2b1a77480de78c9db","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100124000033/c-20231231.htm","publishedAt":"2024-02-23","sha256":"227be4b1ed6798dc1bf8d3d597af03d439e61c6ec653bd7b7098947317ec5231","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100125000154/c-20250930.htm","publishedAt":"2025-11-06","sha256":"e098adcb0cb03f4df236f787418b65ef4c5640392b6d9a0ec44459854fc1ce5a","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:b15fadb3eb2e0486294e80c94ecf8382c35f1327fbe91cc86041d7ecbebe6cd2","usage":{"input_tokens":95742,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":4412,"reasoning_output_tokens":154},"basisSupplement":{"previousHash":"9938d59430035bf2f4c1d0c1bfb3c49a1f627c9bd75b4b4469d503558ed7fe84","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":79.47526570585944,"sbc_revenue":null},"issues":{"pfcf_growth":"Prior-year TTM FCF per diluted share is zero or negative; a growth-adjusted multiple is undefined.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","sbc_fcf":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","sbc_ocf":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc_revenue":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","cash":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":25.79972922031379,"sbc_revenue":null},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","sbc_fcf":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","sbc_ocf":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc_revenue":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","cash":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":-101.95891004562718,"sbc_revenue":null},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pocf":"Trailing operating cash flow is zero or negative, so this ratio is undefined.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","sbc_fcf":"Free cash flow before SBC deduction is zero or negative, so this ratio is undefined.","sbc_ocf":"Operating cash flow is zero or negative, so this ratio is undefined.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc_revenue":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","cash":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","debt_fcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2024","end":"2024-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":-32.25206127756073,"sbc_revenue":null},"issues":{"pfcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","pfcf_growth":"Prior-year TTM FCF per diluted share is zero or negative; a growth-adjusted multiple is undefined.","pocf":"Trailing operating cash flow is zero or negative, so this ratio is undefined.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","sbc_fcf":"Free cash flow before SBC deduction is zero or negative, so this ratio is undefined.","sbc_ocf":"Operating cash flow is zero or negative, so this ratio is undefined.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc_revenue":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","cash":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","debt_fcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":null,"operating_margin":null,"roic":null,"fcf_margin":-87.00733352889411,"sbc_revenue":null},"issues":{"pfcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","pfcf_growth":"Prior-year TTM FCF per diluted share is zero or negative; a growth-adjusted multiple is undefined.","pocf":"Trailing operating cash flow is zero or negative, so this ratio is undefined.","ev_sales":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","ev_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","sbc_fcf":"Free cash flow before SBC deduction is zero or negative, so this ratio is undefined.","sbc_ocf":"Operating cash flow is zero or negative, so this ratio is undefined.","gross_margin":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","operating_margin":"Operating income is unavailable in the extracted statements for this period.","ebitda_margin":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","sbc_revenue":"The reported inputs required for this metric are unavailable in the extracted statements for this period.","roic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roce":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roiic":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","roic_wacc":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","cash":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt":"Cash and cash equivalents is unavailable in the extracted statements for this period.","net_debt_ebitda":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","debt_fcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","interest_coverage":"Not applicable to banks and insurers: these ratios use an industrial-company capital model.","current_ratio":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100126000011/c-20251231.htm","publishedAt":"2026-02-20","sha256":"a8047ff7615505e22085f07af63edf7090bda7c27cc9148713b9a838b693ea90","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100126000045/c-20260630.htm","publishedAt":"2026-08-06","sha256":"99d05330f061855ae07d1d59510e02ecac40e42f618fcf08f4a0dc80c00324ef","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/831001/000120677426000185/citi4583461-def14a.htm","publishedAt":"2026-04-02","sha256":"81eedb2a996bab77bc259e3a6266585488bcec511fc967c13fc251eedec5b0ac","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100125000067/c-20241231.htm","publishedAt":"2025-02-21","sha256":"de309c73400672f033ad41645e7f1c15dcf07e7b3e306ba2b1a77480de78c9db","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100124000033/c-20231231.htm","publishedAt":"2024-02-23","sha256":"227be4b1ed6798dc1bf8d3d597af03d439e61c6ec653bd7b7098947317ec5231","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/831001/000083100125000154/c-20250930.htm","publishedAt":"2025-11-06","sha256":"e098adcb0cb03f4df236f787418b65ef4c5640392b6d9a0ec44459854fc1ce5a","dateKind":"filed"}],"history":[{"version":4,"updatedAt":"2026-10-18T16:49:32.080Z","verdict":"uncertain","value":null},{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"uncertain","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"uncertain","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}