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Citizens Financial Group

CFG Q1 2025 Earnings

Reported Apr 16, 2025 at 6:24 AM ET · SEC Source

Q1 25 EPS

$0.77

BEAT +2.68%

Est. $0.75

Q1 25 Revenue

$1.94B

MISS 0.07%

Est. $1.94B

vs S&P Since Q1 25

+67.1%

BEATING MARKET

CFG +106.8% vs S&P +39.7%

Market Reaction

Did CFG Beat Earnings? Q1 2025 Results

Citizens Financial Group posted a solid if unspectacular first quarter, with earnings per share of $0.77 edging past the $0.75 consensus estimate by 2.68%, even as revenue of $1.94 billion came in essentially flat against expectations and declined 38… Read more Citizens Financial Group posted a solid if unspectacular first quarter, with earnings per share of $0.77 edging past the $0.75 consensus estimate by 2.68%, even as revenue of $1.94 billion came in essentially flat against expectations and declined 38.1% year over year. The headline revenue drop largely reflects the ongoing rundown of the company's Non-Core portfolio, a strategic effort that accelerated meaningfully in the quarter when Citizens agreed to sell roughly $1.90 billion in Non-Core education loans, shrinking that portfolio from $6.90 billion to $4.20 billion and positioning the move as accretive to net interest margin and returns over time. Net interest margin improved 3 basis points to 2.90% on an FTE basis, aided by falling deposit costs, while the Private Bank continued scaling rapidly, with deposits reaching $8.70 billion. Management reaffirmed full-year guidance, projecting second-quarter NII up approximately 3% and net charge-offs down slightly, with a medium-term NIM target of 3.25% to 3.50% still firmly in view despite flagged macroeconomic uncertainty around tariff impacts.

Key Takeaways

  • • Net interest margin improvement of 3 bps to 2.90% driven by lower deposit costs and improved deposit mix
  • • Interest-bearing deposit costs declined 18 bps to 2.37% with cumulative down-beta of ~53%
  • • Private Bank deposits grew $1.7 billion QoQ to $8.7 billion, contributing $0.04 to EPS
  • • Wealth fees increased $6 million on higher annuity product sales
  • • FX and derivative products revenue increased $4 million on commodity hedging activity
  • • Capital markets fees declined $21 million due to seasonality and market uncertainty in M&A
  • • Noninterest expense up 1.7% primarily from seasonal payroll tax increases
  • • Provision for credit losses decreased to $153 million from $162 million reflecting improving loan mix
  • • Net charge-offs increased to $200 million (58 bps annualized), up 5 bps QoQ, driven by education loan charge-offs including Non-Core sale impact
  • • Total allowance for credit losses declined 2% QoQ to $2.21 billion
  • • GAAP efficiency ratio improved 142 bps YoY to 67.91%
  • • Tangible book value per share increased 13% YoY to $33.97
24/7 Wall St

CFG YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

CFG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“We were pleased with our execution in Q1 as we delivered financial results in line with our expectations, as well as strong progress on our strategic initiatives like the Private Bank/Private Wealth buildout.”

— Bruce Van Saun, Q1 2025 Earnings Press Release

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