Financial services stocks including Citi Group, JPMorgan Chase and Bank of America slid in premarket trading on Monday. It follows U.S. President Donald Trump's call for a one-year cap on credit card interest rates at 10%.
Citigroup is in the middle of a dramatic turnaround, with shares nearly doubling since April as the market re-rated its equity from deep value to fair value. C's P/TBV multiple expanded from 0.8x to 1.3x, reflecting improved profitability and market confidence in management's transformation strategy under Jane Fraser. Recent results show ROTCE approaching 10%, validating management's 2026 targets and supporting sustained business momentum, though the easy value opportunity has closed.
Shares of the global megabank have outperformed over the past three years, but the bar is raised.
C hits a new 52-week high as strategic exits, easing regulation and a softer-rate backdrop lift confidence, but is there more upside left? Let us find out.
The Dow reached the close at 48,977 -- a record-high level. The blue-chip index gained +594 points on the day.
Citigroup Inc.'s valuation is in line with other Money Center Banks. It is no longer cheap. Earnings forecasts appear aggressive, and out of 29 analysts covering C stock, only one rates it as a sell. It appears to be priced for perfection. AI-related productivity gains may benefit Citigroup more than other banks, and falling short-term rates should narrow the gap in its Net Interest Margin with its peers.
C clears internal hurdle to sell AO Citibank, advancing its multi-year exit from Russia with a deal set to close in the first half of 2026.
Entering the last trading week of the year, investors are certainly pondering where to put their money to work in 2026, and the financial sector may be at the forefront with the stock market near all-time highs.
Citigroup said on Monday its board has approved a plan to sell AO Citibank, its remaining business in Russia, to investment bank Renaissance Capital, a move that will result in a pre-tax loss of about $1.2 billion in the current quarter.
Wells Fargo leads a trio of big banks positioned to benefit as Fed rate cuts lift loan demand, stabilize funding costs and boost fee income.
C ramps up Japan investment banking, planning a 30% headcount boost by 2026 as a record M&A boom reshapes the corporate landscape.
Overall, the banking sector has had a decent year, with the Invesco KBW Bank ETF (KBWB) up 31.6% in 2025, while the SPDR S&P Regional Banking ETF (KRE) sports a 10.9% year-to-date gain.