Citigroup shares closed Friday's session with a robust 6% gain, finishing at $122.69, following a report that executives are increasingly confident about completing work tied to key regulatory consent orders before the end of the year.
Regulatory Milestone in Sight
According to a Reuters report citing sources, Citi management believes it is nearing the finish line on remediation tasks required by consent orders related to past operational lapses, including a $900 million error with Revlon creditors. CEO Jane Fraser recently told analysts approximately 80% of the required work is complete, and CFO Mark Mason indicated associated compliance costs should decline this year.
The potential lifting of these orders would mark a significant shift for the bank, allowing it to focus more squarely on profit growth rather than regulatory remediation. However, final approval rests with regulators, and the timing of their sign-off remains uncertain.
Capital Management and Employee Initiatives
In a separate move, Citigroup announced plans to redeem $2.3 billion in Series X depositary shares linked to its preferred stock on February 18, describing it as part of an effort to streamline its capital structure. The bank also introduced a program to match U.S. government deposits for eligible employee "Trump Accounts," with the Citi Foundation committing $5 million to promote awareness.
Market Context and Upcoming Catalysts
The rally in Citi contributed to a broad advance in financial stocks as markets rebounded from recent losses. Investors are now looking ahead to a busy week featuring key U.S. economic data and appearances by Citi executives.
Postponed non-farm payrolls data is scheduled for release Wednesday, followed by January Consumer Price Index figures on Friday. These reports could influence Treasury yields and expectations for Federal Reserve policy. Meanwhile, Citi's Services chief Shahmir Khaliq is slated to speak at the UBS Financial Services Conference on February 10, with incoming CFO Gonzalo Luchetti appearing at a Bank of America Securities conference the following day.
