Overview
- Citi will classify AO Citibank as held for sale in the fourth quarter of 2025 and record the after-tax loss in the current quarter.
- The bank estimates a roughly $1.2 billion pre-tax hit driven largely by $1.6 billion currency translation losses, partly offset by $200 million from derecognizing a fully reserved investment and $200 million in expected proceeds, with the combined effects expected to be CET1 capital neutral.
- The transaction is targeted to be signed and completed in the first half of 2026, subject to regulatory approvals.
- AO Citibank is being sold to Moscow-based Renaissance Capital, marking the final step in Citi’s exit from Russia.
- Russia’s post-invasion exit regime requires state approval and taxes that have made departures costly and legally complex for foreign firms.