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.

Citigroup ( NYSE: C) stock gained 5.6% in Wednesday premarket trading after the megabank posted better-than-expected Q4 results and approved a $20B stock buyback program. Furthermore, the company expects its net interest income to rise in 2025.

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.