Citigroup is exploring the acquisition of a US regional bank or brokerage, which could significantly enhance its deposit base, branch network, and lending capacity. According to reports, the discussions include entities with approximately $500 billion in assets, along with brokerages like Stifel and Raymond James. Such an acquisition would require approval due to existing regulatory consent orders.
This move could mark a pivotal transition under the leadership of CEO Jane Fraser, reshaping Citigroup's operations to more effectively rival competitors like JPMorgan Chase and Bank of America.
The impetus for this acquisition stems from the capital Citigroup has amassed through various recent divestitures. Earlier this year, the bank finalized the sale of its subsidiary in Russia to Renaissance Capital, which brought in an estimated $4 billion in Common Equity Tier 1 capital. Following this, Citigroup also sold a 49% stake in Banamex, its Mexican consumer banking unit, for around $2.5 billion. Executives suggest that the freed capital may be redirected towards growth opportunities within the US market, minimizing any additional sales of Banamex units this year.
In terms of financial performance, Citigroup reported a striking 78% year-over-year increase in corporate banking revenues in the fourth quarter of 2025, reaching $2.2 billion. This growth has been primarily driven by the bank's focus on institutional and wholesale clients. However, despite this positive performance, Citigroup's shares were trading at $108, which is notably below the analyst consensus price target of $135.
Also noteworthy is Citigroup's initiative to develop infrastructure for Bitcoin custody and wallet services. Over the past three years, the bank has been preparing to offer services that seamlessly integrate Bitcoin with traditional financial systems. This service will utilize extensive risk controls and reporting akin to those used for conventional securities, allowing Bitcoin holdings to fit into existing workflows.
Citigroup is further exploring stablecoins and blockchain-based deposit tokens to modernize its approach to cross-border payments. This strategic initiative positions Citi at the forefront of the evolving digital asset landscape while enhancing its service offerings to clients.