New York, Feb 12, 2026, 15:22 EST — Session underway
- Citigroup shares dropped roughly 4% in afternoon trading, adding to the previous session’s decline.
- The drop mirrored a wider downturn in financials as investors prepared for Friday’s U.S. CPI report.
- Citi’s incoming CFO pointed to credit-card growth but cautioned that a proposed rate cap might restrict credit availability.
Citigroup shares dropped 4.2% to $112.45 in Thursday afternoon trading, pushing the stock farther from this week’s peak as U.S. banks fell alongside the broader market.
This shift is crucial as investors weigh two immediate challenges for lenders: adjusting interest-rate forecasts before Friday’s U.S. consumer price index release, and a revived political spotlight on credit-card fees following recent remarks from Citi’s incoming finance chief. 1
At a Bank of America financial conference on Wednesday, incoming CFO Gonzalo Luchetti said Citi anticipates continued growth in its credit card segment, focusing more on affluent customers through rewards cards. He also cautioned that a proposed cap on credit-card interest rates could trigger “massive ripple effects,” reducing credit access for lower-income borrowers. 2
On Thursday, Wall Street’s major indexes slipped over 1%, dragged down again by tech stocks, as investors eyed upcoming inflation figures that might influence the Federal Reserve’s next decision. A robust U.S. jobs report released Wednesday dampened hopes for rate cuts in the near term, Reuters reported. 3
Bank stocks mostly took a hit. JPMorgan Chase dipped 2.2%, Bank of America slid 1.9%, and Wells Fargo dropped 2.5% in late trading.
Citi’s shares dropped 3.9% on Wednesday, per MarketWatch data, setting the stage for more risk-off selling amid the market’s souring mood. 4
The benchmark U.S. 10-year yield dropped on Thursday, a shift that could pressure lenders’ net interest margins—the gap between what banks earn on loans versus what they pay on deposits—if it continues. Investors also adjusted their positions ahead of Friday’s CPI report, Reuters noted. 1
On Thursday, Citigroup revealed terms for callable fixed-rate notes maturing in 2029 in a fresh regulatory filing. This routine move highlights the bank’s ongoing reliance on wholesale funding channels. 5
Luchetti told the conference that Citi anticipates moderate growth in deposits, services, and wealth. He noted that potential rate cuts are already factored into their projections. “We continue to see U.S. consumer resilience early in the year,” he said. 2
The credit-card rate-cap debate remains the wild card. Headlines alone can sway valuations for lenders reliant on cards, even if no new laws pass. On top of that, a sharper economic downturn would increase the risk of bigger charge-offs in consumer loan portfolios.
Traders will keep an eye on financials for the remainder of the session as they wait to see if things hold steady before Friday’s CPI release. Citi investors are gearing up for the bank’s investor day on May 7, expecting a detailed update on strategy, especially around its cards business. 1
