Citigroup is considering the acquisition of a US regional bank or brokerage to bolster its deposit base, expand branch networks, and strengthen its lending operations. According to Bloomberg, discussions have involved banks with about $500 billion in assets and brokerages such as Stifel and Raymond James. Regulatory approval is required due to existing consent orders.
This move, under CEO Jane Fraser, aims to improve Citigroup’s competitive position against rivals like JPMorgan and Bank of America. Capital from recent divestitures, including the sale of its Russian subsidiary and a stake in Banamex, may fund the acquisition.
Corporate banking revenues surged 78% year-over-year to $2.2 billion in Q4 2025. Citigroup shares were trading at $108, below the analyst consensus price target of $135.
Citigroup is also preparing to offer Bitcoin custody and wallet services, integrating digital assets into traditional financial systems with the same risk controls and reporting as conventional securities.