Citigroup's stock surged 5.02% during intraday trading on Friday, reflecting a significant positive movement for the banking giant.

The sharp rise appears to be driven by exclusive reports indicating that Citigroup executives are becoming increasingly optimistic about completing the extensive compliance work required by major regulatory consent orders later this year. The lifting of these orders, which have been in place for six years following a botched $900 million transfer and subsequent fines, would represent a monumental shift for the bank.

Analysts note that this regulatory relief would enable Citigroup to finally sharpen its focus on profit growth and potentially explore acquisitions that were previously barred. With CEO Jane Fraser having stated the work is 80% done and bank-friendly regulators under the current administration, investors are cheering the prospect of the bank exiting its prolonged regulatory penalty box.