The fourth-quarter will be "marginally profitable" after the charges.
Citigroup said it would be taking a $3.5 billion fourth-quarter charge to cover investigations and restructuring.
The bank said it is incurring the charges for investigations and restructuring. Citigroup CEO Michael Corbat said the firm's fourth-quarter will be "marginally profitable" after the charges.
Citi stock traded down 2.5 percent on the day following the announcement.
"We have made significant progress in simplifying and streamlining our company and these repositioning actions will further enhance our ability to serve our clients efficiently and focus on those areas with the greatest potential for returns," Corbat said. "Also, we believe these legal charges should cover a significant portion of our outstanding legal matters based on current information."
Citi's earnings cut will include $2.7 billion for investigations, and $800 million to close businesses abroad.
The bank said all of the investigations have been previously disclosed, and include Libor and foreign exchange.
In October, Citigroup lowered its previously reported third-quarter results because of legal costs. The firm lowered its net income to $2.8 billion from $3.4 billion-sending earnings per share to 88 cents from $1.07.
-CNBC's Kayla Tausche contributed to this report.