Citigroup cut its closely watched profitability target in 2026 as it tackles rising regulatory expenses and, at the same time, announced a $20 billion share buyback program.

Citigroup said its board of directors authorized a new multiyear $20 billion stock buyback program that will begin in the first quarter of 2025, helping to trigger a surge in the share price. CFO Mark Mason said the planned buyback reflects confidence in the bank’s strategy.

Investors responded to Citigroup’s (C) quarterly earnings with enthusiasm as the stock jumped more than 7%. The mega financial company reported quarterly results that surpassed Wall Street analyst recommendations this morning.

Citigroup shares rose more than 6% on Wednesday after the bank topped Wall Street estimates for fourth-quarter profit on strong results across segments. The New York-based lender reported adjusted earnings of $1.

Citigroup on Wednesday reported stronger-than-expected fourth-quarter profit and revenue, while authorizing a $20 billion share buyback program, sending its shares by more than 2% before the bell. The bank posted a net income of $2.