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FAIR VALUE ELECTIONS | 9 Months Ended
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Sep. 30, 2025
Fair Value, Option, Aggregate Differences [Abstract] |
FAIR VALUE ELECTIONS | FAIR VALUE ELECTIONS The Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in earnings, other than DVA (see below). The election is made upon the initial recognition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair value election may not otherwise be revoked once an election is made. The changes in fair value are recorded in current earnings. Movements in DVA are reported as a component of AOCI. The Company has elected fair value accounting for its mortgage servicing rights (MSRs). See Note 21 for additional details on Citi’s MSRs. Additional discussion regarding other applicable areas in which fair value elections were made is presented in Note 23. The following table presents the changes in fair value of those items for which the fair value option has been elected:
| Changes in fair value—gains (losses)
| Three Months Ended September 30, | Nine Months Ended September 30,
In millions of dollars | 2025 | 2024 | 2025 | 2024
Assets |  |  |  |
Securities borrowed and purchased under agreements to resell | $ | 88 |  | $ | 223 |  | $ | 210 |  | $ | 164 |
Trading account assets | 13 |  | 8 |  | 52 |  | 10 |
Investments | 4 |  | — |  | 4 |  | — |
Loans |  |  |  |
Corporate loans | 587 |  | (143) |  | 1,539 |  | 1,235 |
Consumer loans | 1 |  | 14 |  | 4 |  | 4 |
Total loans | $ | 588 |  | $ | (129) |  | $ | 1,543 |  | $ | 1,239 |
Other assets |  |  |  |
MSRs | $ | (25) |  | $ | (40) |  | $ | (28) |  | $ | (23) |
Mortgage loans HFS(1) | 21 |  | 43 |  | 51 |  | 48 |
Total other assets | $ | (4) |  | $ | 3 |  | $ | 23 |  | $ | 25 |
Total assets | $ | 689 |  | $ | 105 |  | $ | 1,832 |  | $ | 1,438 |
Liabilities |  |  |  |
Deposits | $ | (51) |  | $ | (43) |  | $ | (146) |  | $ | (106) |
Securities loaned and sold under agreements to repurchase | (90) |  | (70) |  | (78) |  | (44) |
Trading account liabilities | (70) |  | (17) |  | (223) |  | (241) |
Short-term borrowings(2) | (1,627) |  | (200) |  | (2,507) |  | (581) |
Long-term debt(2) | (4,174) |  | (6,216) |  | (9,312) |  | (8,338) |
Total liabilities | $ | (6,012) |  | $ | (6,546) |  | $ | (12,266) |  | $ | (9,310) |
(1)Includes gains (losses) associated with interest rate lock commitments for originated loans for which the Company has elected the fair value option. (2)Includes DVA that is included in AOCI. See Notes 19 and 23. Own Debt Valuation Adjustments (DVA) Own debt valuation adjustments are recognized on Citi’s liabilities for which the fair value option has been elected using Citi’s credit spreads observed in the bond market. Changes in fair value of fair value option liabilities related to changes in Citigroup’s own credit spreads (DVA) are reflected as a component of AOCI. See Note 19 for additional information. Among other variables, the fair value of liabilities for which the fair value option has been elected (other than non-recourse debt and similar liabilities) is impacted by the narrowing or widening of the Company’s credit spreads. The estimated changes in the fair value of these non-derivative liabilities due to such changes in the Company’s own credit spread (or instrument-specific credit risk) were a loss of $(1,293) million and $(201) million for the three months ended September 30, 2025 and 2024, and a loss of $(684) million and $(608) million for the nine months ended September 30, 2025 and 2024, respectively. Changes in fair value resulting from changes in instrument-specific credit risk were estimated by incorporating the Company’s current credit spreads observable in the bond market into the relevant valuation technique used to value each liability as described above. The Fair Value Option for Financial Assets and Financial Liabilities Selected Portfolios of Securities Purchased Under Agreements to Resell, Securities Borrowed, Securities Sold Under Agreements to Repurchase, Securities Loaned and Certain Uncollateralized Short-Term Borrowings The Company elected the fair value option for certain portfolios of fixed income securities purchased under agreements to resell and fixed income securities sold under agreements to repurchase, securities borrowed, securities loaned and certain uncollateralized short-term borrowings held primarily by broker-dealer entities in the U.S., the U.K. and Japan. In each case, the election was made because the related interest rate risk is managed on a portfolio basis, primarily with offsetting derivative instruments that are accounted for at fair value through earnings. Changes in fair value for transactions in these portfolios are recorded in Principal transactions. The related interest income and interest expense are measured based on the contractual rates specified in the transactions and are reported as Interest income and Interest expense in the Consolidated Statement of Income. Loans and Other Credit Products Citigroup has also elected the fair value option for certain other originated and purchased loans, including certain unfunded loan products, such as guarantees and letters of credit, executed by Citigroup’s lending and trading businesses. Significant groups of transactions include loans and unfunded loan products that are expected to be either sold or securitized in the near term, or transactions where the economic risks are hedged with derivative instruments, such as purchased credit default swaps or total return swaps where the Company pays the total return on the underlying loans to a third party. Citigroup has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications. Fair value was not elected for most lending transactions across the Company. The following table provides information about certain credit products carried at fair value:
| September 30, 2025 | December 31, 2024
In millions of dollars | Trading assets | Loans | Trading assets | Loans
Carrying amount reported on the Consolidated Balance Sheet | $ | 4,873 |  | $ | 7,896 |  | $ | 5,025 |  | $ | 8,040 |
Aggregate unpaid principal balance in excess of (less than) fair value | 143 |  | (133) |  | 137 |  | (55) |
Balance of non-accrual loans or loans more than 90 days past due | — |  | 2 |  | — |  | 2 |
Aggregate unpaid principal balance in excess of (less than) fair value for non-accrual loans or loans more than 90 days past due | — |  | 1 |  | — |  | — |
In addition to the amounts reported above, $355 million and $280 million of unfunded commitments related to certain credit products selected for fair value accounting were outstanding as of September 30, 2025 and December 31, 2024, respectively. Changes in the fair value of funded and unfunded credit products are classified in Principal transactions in Citi’s Consolidated Statement of Income. Related interest income is measured based on the contractual interest rates and reported as Interest income on Trading account assets or loan interest depending on the balance sheet classifications of the credit products. The changes in fair value for the three months ended September 30, 2025 and 2024 due to instrument-specific credit risk were a gain of $7 million and $6 million, respectively. Changes in fair value due to instrument-specific credit risk are estimated based on changes in borrower-specific credit spreads and recovery assumptions. Certain Investments in Unallocated Precious Metals Citigroup invests in unallocated precious metals accounts (e.g., gold, silver, platinum and palladium) as part of its commodity trading activities. Under ASC 815, the investment is bifurcated into a debt host contract and a commodity derivative instrument. Citigroup elects the fair value option for the debt host contract and reports the contract within Trading account assets on the Company’s Consolidated Balance Sheet. As part of its commodity trading activities, Citi trades unallocated precious metals investments and executes forward purchase and forward sale derivative contracts with trading counterparties. When Citi sells an unallocated precious metals investment, Citi’s receivable from its depository bank is repaid and Citi derecognizes its investment in the unallocated precious metal. The forward purchase or sale contract with the trading counterparty indexed to unallocated precious metals is accounted for as a derivative, at fair value through earnings. Certain Mortgage Loans Held-for-Sale (HFS) Citigroup has elected the fair value option for certain purchased and originated prime fixed-rate and conforming adjustable-rate first mortgage loans HFS. These loans are intended for sale or securitization and are economically hedged with derivative instruments. The Company has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications. The following table provides information about certain mortgage loans HFS carried at fair value:
In millions of dollars | September 30, 2025 | December 31, 2024
Carrying amount reported on the Consolidated Balance Sheet | $ | 992 |  | $ | 692 |
Aggregate fair value in excess of (less than) unpaid principal balance | 27 |  | 4 |
Balance of non-accrual loans or loans more than 90 days past due | 1 |  | 1 |
Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due | — |  | — |
The changes in the fair values of these mortgage loans are reported in Other revenue in the Company’s Consolidated Statement of Income. There was no net change in fair value during the nine months ended September 30, 2025 and 2024 due to instrument-specific credit risk. Changes in fair value due to instrument-specific credit risk are estimated based on changes in the borrower default, prepayment and recovery forecasts in addition to instrument-specific credit spread. Related interest income continues to be measured based on the contractual interest rates and reported as Interest income in the Consolidated Statement of Income. Certain Debt Liabilities The Company has elected the fair value option for certain debt liabilities, because these exposures are considered to be trading-related positions and, therefore, are managed on a fair value basis. These positions are classified as Long-term debt or Short-term borrowings on the Company’s Consolidated Balance Sheet. The following table provides information about the carrying value of notes carried at fair value, disaggregated by type of risk:
In billions of dollars | September 30, 2025 | December 31, 2024
Interest rate linked | $ | 67.0 |  | $ | 58.0 |
Foreign exchange linked | 0.1 |  | 0.1 |
Equity linked | 49.0 |  | 41.8 |
Commodity linked | 6.6 |  | 6.9 |
Credit linked | 7.1 |  | 5.9 |
Total | $ | 129.8 |  | $ | 112.7 |
The portion of the changes in fair value attributable to changes in Citigroup’s own credit spreads (DVA) is reflected as a component of AOCI while all other changes in fair value are reported in Principal transactions. Changes in the fair value of these liabilities include accrued interest, which is also included in the change in fair value reported in Principal transactions. The following table provides information about long-term debt and short-term borrowings carried at fair value:
In millions of dollars | September 30, 2025 | December 31, 2024
Long-term debt |  |
Carrying amount reported on the Consolidated Balance Sheet | $ | 129,817 |  | $ | 112,719 |
Aggregate unpaid principal balance in excess of (less than) fair value | 882 |  | (1,943) |
Short-term borrowings |  |
Carrying amount reported on the Consolidated Balance Sheet | $ | 25,023 |  | $ | 12,484 |
Aggregate unpaid principal balance in excess of (less than) fair value | (370) |  | (87) |

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- Definition The entire disclosure for a company's election to apply the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items; (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected: (i) information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures and (ii) the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (d) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (e) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (f) for investments that would have been accounted for under the equity method if the entity had not chosen to apply the fair value option, the information required for such investments, if material either individually or in the aggregate; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) a description of how interest and dividends are measured and where they are reported in the income statement; (c) for loans and other receivables held as assets: (i) the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk and (ii) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (d) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk, (ii) qualitative information about the reasons for those changes, and (iii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 30 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-30 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 30 -Subparagraph (d)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-30 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 30 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-30 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 13 -Subparagraph (b)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-13 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 11 -Subparagraph (b)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-11 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Subparagraph (b)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-13 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-13 Reference 12: http://www.xbrl.org/2003/role/exampleRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482881/825-10-55-11 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (a) -SubTopic 10 -Topic 825 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-32 + Details
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