Citigroup shares surge 5.59% after-hours as regulatory compliance on consent orders nears completion, unlocking growth potential.

Citigroup surged 5.59% in after-hours trading amid news that it is nearing completion of regulatory compliance work on consent orders, which could ease restrictions on growth and profitability. Executives indicated the bank expects to finalize these efforts later this year, allowing a shift in focus toward profit expansion and strategic initiatives such as mergers and acquisitions. The resolution of long-standing regulatory constraints is seen as a catalyst for improved capital returns and operational flexibility. Additionally, the bank’s capital restructuring, including the redemption of $2.3 billion in preferred shares and the issuance of new capital instruments, reinforced investor confidence in its financial positioning. These developments align with a broader narrative of undervaluation, as reflected in a fair value estimate of $116 and a recent 90-day price rebound of 14.83%, suggesting optimism about future earnings and risk-mitigated growth.