Citigroup vs. PNC Financial: Which Stock Has a Bigger Upside?

By Riya Anand | November 27, 2025, 9:23 AM

In an environment defined by shifting interest rates and heightened competition across the banking sector, two major U.S. banking names continue to attract investor attention: Citigroup, Inc. C, a global financial institution undergoing a sweeping transformation, and PNC Financial PNC, a disciplined regional leader doubling down on domestic expansion. Both face similar kinds of challenges and opportunities influenced by economic conditions and internal strategies.

Let’s take a closer look at how each bank’s strategy, fundamentals, and earnings trajectory position them for the road ahead.

The Case for Citigroup

Under CEO Jane Fraser, Citigroup is advancing its multi-year strategy to streamline operations and focus on its core businesses. Since announcing plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA, the company has completed exits in nine countries.

This month, C announced that it will integrate the Retail Banking unit into the Wealth business and elevate U.S. Consumer Cards as a core business. Also, Citigroup gets approval to sell its Russian banking unit, marking a significant step in the bank’s long-planned withdrawal from the country. In September 2025, the company announced an agreement to sell a 25% stake in Banamex to a Mexican business leader, reaching a milestone toward full divestiture and deconsolidation of Banamex. Earlier, in May 2025, it announced an agreement to sell its consumer banking business in Poland. The bank is also progressing with the wind-down of its Korean consumer banking operations and preparations for an IPO of its Mexican consumer, small business, and middle-market banking operations. These initiatives will free up capital and enable the company to pursue investments in wealth management operations, thereby driving fee income growth.

Aligned with its goal of achieving leaner operations, Citigroup has overhauled its operating model and leadership structure, reduced bureaucracy and complexity while enhancing efficiency. This month, C announced that it will initiate the process of transitioning the role of its chief financial officer (CFO). The bank’s current CFO, Mark Mason, will step down in early March 2026, making way for Gonzalo Luchetti. In January 2024, the company announced plans to cut 20,000 jobs (about 8% of its global workforce) by 2026, having already lowered headcount by more than 10,000 employees. The strategy is showing traction. C expects revenues to top $84 billion in 2025, with an anticipated 4-5% CAGR through 2026.

Further, with the Federal Reserve’s two rate cuts this year and expectation of further easing, loan growth is improving while deposit costs gradually stabilize, setting C up for witnessing strong net interest income (NII) growth. Management has raised its 2025 guidance: NII (ex-Markets) is now projected to grow 5.5%, up from 4% previously.

The Case for PNC Financial

In contrast, PNC is taking the opposite approach, leaning into expansion, not contraction. The bank is using targeted acquisitions and partnerships to broaden capabilities and reshape its revenue mix.

In September 2025, PNC Financial entered into a definitive agreement to acquire FirstBank Holding Company, including its subsidiary FirstBank (expected to close in early 2026). The deal will expand PNC Financial’s presence in Arizona, bringing its network to more than 70 branches with the addition of 13 FirstBank branches. In May 2025, it agreed to acquire Aqueduct Capital Group, strengthening fund placement services at its global investment banking arm, Harris Williams. Together, these initiatives position PNC Financial to diversify its business mix, capture market opportunities, and drive sustainable earnings growth.

In a strategic move to strengthen its domestic presence, PNC Financial is set to expand its branch network across the United States. In November 2025, the company expanded its earlier $1.5 billion branch initiative announced in 2024, raising total investment to about $2 billion. The updated plan includes opening more than 300 branches across nearly 20 U.S. markets, renovating its entire branch network by 2029, and hiring over 2,000 new employees to support growth and customer service efforts by 2030.

Additionally, PNC’s NII is also projected to improve in the upcoming period, supported by the improving lending activity and the gradual stabilization of funding costs. Management anticipates NII to rise 6.5% year over year in 2025.

PNC & C: Price Performance, Valuation & Other Comparisons

Year to date, shares of PNC Financial and Citigroup have risen 3.2% and 49.7%, respectively, compared with the industry’s growth of 30.3%.

Price Performance