JPMorgan Endorses Citigroup's $1.2B Russia Divestment

Citigroup Exits Russia with $1.2B Q4 Loss

On December 30, Citigroup announced its plan to sell its remaining operations in Russia, a move that will result in a projected $1.2 billion pre-tax loss in the fourth quarter. The decision represents a strategic exit from a market that regulators classify with the highest country risk rating of seven. By divesting these assets, Citigroup is actively reducing its exposure to geopolitical and financial volatility, even at a significant short-term cost.

JPMorgan Sees Capital Ratio Lift Post-Divestment

In response to the announcement, JPMorgan maintained its "Overweight" rating on Citigroup stock. The investment bank's analysis concluded that the sale will provide a modest lift to Citi’s capital ratio. This improvement stems directly from the reduction in risk-weighted assets tied to the Russian operations. This de-risking move is bolstered by Citigroup's recent financial strength; in the third quarter of 2025, the bank reported a 9% year-over-year revenue increase and earnings of $1.86 per share, up from $1.51 in the same period of 2024.