Citigroup stock is soaring Wednesday after the big bank topped earnings expectations and unveiled a massive stock buyback program. Here's why that's important.

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.

The bank unveiled stronger-than-expected results for the fourth quarter, in which revenue rose across all five of its main business lines.

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.