Citigroup Services reported record fourth-quarter and full-year 2025 sales. $21.3 billion (above 8% (YoY) ROTCE 28.6%powered by NII~12% Growth, growth in fees~6%deposits +7%, loans +9%, AUC/A +24%.
The company is actively investing in technology. A.I.In addition to use cases that reduce processing time (such as reviewing account opening documents), we are developing initiatives such as single-event custody processing, Citi Payment Express (present in approximately 22 markets, approximately 40% of payment flows), and 24/7 clearing used by approximately 300 banks.
Growth will come from expanding wallet share and product modernization with large institutional and commercial banking customers, while Citi is preparing for a hybrid future of tokenized and traditional rail by investing in interoperability and both traditional and blockchain infrastructure.
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Shamir Khaliq, head of services at Citigroup (NYSE:C), told conference attendees that the bank’s services business is focused on investing in technology, people and customer engagement to grow wallet share and increase profitability, while helping global customers manage complex macro and geopolitical environments.
Mr Khaliq said he will serve as head of services from 2023 following organizational changes announced by CEO Jane Fraser. He described the service as a combination of the bank’s Treasury and Trade Solutions (TTS) business (payments, liquidity and trade services) and securities services, including investor services and issuer services.
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He said the service operates in 95 markets, positioning the group as “the world’s largest trading services platform”. He said that since his time as an investor at Citi in 2022 and 2024, the organization has focused on how to invest in the platform and “drive the right customer engagement” while navigating a challenging global backdrop.
Khaliq said discussions with customers remain “robust,” citing issues such as U.S.-China relations, Russia and Ukraine, Venezuela, changes related to the U.S. administration and supply chain concerns related to tariffs.
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He outlined how priorities vary by customer segment.
Legal entity: Access to capital and finance, maintaining global financial operations, keeping supply chains ‘unimpeded’, working capital financing and free cash flow.
Banks and broker-dealers: Best execution at the lowest price point across retail, high net worth and market activities.
Public sector: It will improve efficiency in areas such as settlement and holding management of Treasury bills and securities, especially in an environment of rising fiscal deficits.
Asset management company: Transitioning to private markets, how to build intermediary and back office capabilities, and reducing costs to improve public equity performance.
Fintech: There is demand for “Banking-as-a-Service” and what he called “Bank-in-a-Box,” and Citi’s involvement given what he described as the industry’s largest set of fintech customers.
Khaliq said Citi’s ability to combine “global expertise” with local market knowledge and innovation is “mission critical” to customers and has supported growth in profitability and wallet share.
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Khaliq said the services division had a “record fourth quarter” and reported full-year 2025 earnings. $21.3 billiontop 8% Year after year. he also ROTCE 28.6%He said the amount was slightly higher than the amount set at the investor day. He attributed this performance to both net interest income and fees, noting that NII’s growth rate was approximately 50%. 12% and increased fees 6%.
He provided several operational metrics that he said supported the results, including:
Assets under custody (AUC/A) increase twenty four%
He said AUC/A growth outpaced MSCI growth by about 10 times. 17%This reflects net new inflows, he said. Khaliq also said the business had a “record number of new acquisitions” in 2025, giving it a strong start to 2026.
Khaliq said that for the 2024 Investor’s Day framework, Citi outlined low-to-mid single-digit revenue growth and mid-20s ROTCE, and characterized 2025 results as outperforming those benchmarks. He said that the service’s revenue CAGR from 2023 to 2025 is: 8% Revenue CAGR since Investor Day in 2021 is 14%.
In terms of wallet share, he said the service has more than earned its share. 200 basis points In both institutional TTS and securities services, Citi doubled its wallet share in the commercial banking sector, something he said was previously suboptimal.
Looking ahead, Khaliq said he expects growth to be driven by three key components. These include deepening penetration with large institutional customers (including Fortune 500 companies; Citi Bank accounts for more than 80%), continuing to grow share with commercial bank customers, and aligning customer strategy with product modernization and innovation investments.
He emphasized the principle that “all innovation is integration,” and argued that Citi aims to commercialize new capabilities by integrating them into existing services and connecting them with key customers. He highlighted several initiatives.
AI application Overall technology, agent support, client interaction, operations, and service. He cited the document review for opening an account as an example of a process that “used to take hours” could now be tested in “minutes” with oversight.
Single event management processing In the case of asset services, the aim is to reduce multiple ‘touches’ between sub-custodians, global custodians and asset managers. He said Citi is the only bank that can roll out the scheme globally because of its sub-custodial footprint.
City Payment Expresssaid he lives in approx. 22 markets,about 40% Number of payment flow transactions currently running on the new infrastructure.
24/7 clearinghe said about people use 300 banks.
digital assetsThis includes an internal blockchain connected to Citi’s main branches, which moves “billions of dollars” of customer funds every month, he said.
In response to a question about whether blockchain tokenization could threaten the “crown jewels” revenue streams, Khaliq said the world is “not homogeneous,” pointing to borders, exchange controls, liquidity controls, and capital controls. He said different economies are expected to modernize at different rates, and argued that the industry’s direction will center around integration and interoperability between traditional and digital rail.
Khaliq said Citi is investing in both 24/7 traditional infrastructure and blockchain-based token strategies, working with industry players and financial market infrastructures (FMIs) on interoperability. He said he expects tokens, cryptocurrencies, fiat currencies and tokenized securities to coexist, and that Citi aims to continue to evolve with its customers while helping them build the “infrastructure of the future.”
Citigroup Inc. is a global financial services company headquartered in New York City that traces its roots to the Bank of the City of New York, founded in 1812. Today, Citigroup was formed through the merger of Citicorp and Travelers Group in 1998 and since then has operated as a diversified bank holding company that provides a wide range of banking and financial products and services to consumers, businesses, governments and institutions around the world.
Citi’s principal businesses include retail and commercial banking, credit cards and consumer financial products, wealth management and private banking, and a range of institutional services.
The article “Citigroup touts technology, business brings AI to services, sets record fourth quarter at Citi conference” was originally published by MarketBeat.
