The six largest U.S. banks are expected to post a massive annual profit of $157 billion, driven by increased trading and dealmaking activities. Despite Citigroup’s stock jumping nearly 60% in the past year, the bank plans to cut 1,000 jobs as part of a larger effort to eliminate 20,000 roles by 2026. While this move aims to reduce costs and enhance efficiency, it’s not expected to impact the strong earnings outlook. Furthermore, there may be another rate cut in Q1 2026, which could support Citigroup’s core business with increased credit growth and liquidity in the financial system.

Citigroup reported revenue and net income of $19.9 billion and $2.5 billion, respectively, for Q4 2025, with a healthy CET1 Capital Ratio of 13.2%. The bank has been focusing on transformation, exiting certain markets and investing in new products and technologies. Citigroup anticipates robust dealmaking activity in the Asia Pacific region in 2026, aiming for steady growth momentum. Analysts have a consensus “Moderate Buy” rating on Citigroup stock, with a mean price target of $128.50, indicating a 16% upside potential and attractive valuations.

Read more at Barchart: As Citigroup Slashes Jobs, Should You Buy, Sell, or Hold the Dividend Stock Yielding 2%?