Citizens Financial Group Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.44%.
Did CFG Beat Earnings? Q4 2025 Results
Citizens Financial Group closed out 2025 on a strong note, posting fourth-quarter earnings per share of $1.13, edging past the $1.11 consensus estimate by 2.24%, as quarterly revenue of $2.16 billion narrowly topped expectations of $2.15 billion. The headline revenue figure reflected a 28.7% year-over-year decline, though the more telling story was beneath the surface: net income surged 32% from a year ago to $528 million, powered by meaningful net interest margin expansion to 3.07% on an FTE basis, up 20 basis points year-over-year, as fixed-rate assets repriced higher and the Non-Core portfolio continued to wind down. Credit quality also improved notably, with net charge-offs falling to 43 basis points from 53 basis points a year earlier. The company's stock has reflected growing investor confidence, reaching new price highs in the period following the report. Looking ahead, Citizens guided for 10-12% NII growth and 500-plus basis points of positive operating leverage in 2026, with a medium-term ROTCE target of 16-18% expected in the second half of 2027.
- Net interest margin expansion of 20 bps YoY to 3.07%
- Strong Private Bank growth with deposits reaching $14.5 billion
- Wealth fees at all-time high, up 31% YoY
- Capital markets fees up 16% YoY
- Favorable credit trends with net charge-offs declining to 43 bps from 53 bps YoY
- Positive operating leverage of 5.2% YoY on Underlying basis
- Non-Core portfolio runoff reducing drag on results
- Interest-bearing deposit costs down 35 bps YoY
- Efficiency ratio improved to 62.24% from 66.27% in Q4 2024
- ROTCE of 12.18% in Q4 2025, up 182 bps YoY
“We are pleased to report good fourth quarter and full year results that reflect strong execution of our key growth initiatives and continued improvement in our net interest margin. Our strong fee growth was paced by Capital Markets and Wealth, we continue to achieve positive operating leverage, up 5% in Q4 vs. prior year, our credit costs are trending favorably, and we delivered an 80% return of capital to shareholders for the year. The Private Bank hit year end deposits of $14.5 billion, delivering 7% accretion to our bottom line at a 25% ROE. I would like to thank our colleague base for their fine effort and dedication in continuing to serve our customers well and in positioning us for a strong 2026 and bright future.”
Citizens Financial Group CEO, on the earnings call
Forward Guidance & Outlook
For FY2026, Citizens expects NII growth of 10-12%, with NIM progressing toward ~3.25% in Q4 2026 via 4-5 bps sequential expansion per quarter. Spot loans expected up 3-5%, average loans up 2.5-3.5%. Noninterest income expected up 6-8% driven by Capital Markets and Wealth. Noninterest expense expected up ~4.5% (~1.8% from Private Bank/Wealth buildout, ~0.2% from Reimagine the Bank, ~2.5% remainder). Net charge-offs expected in mid-to-high 30s bps. CET1 ratio of 10.5-10.6% with share repurchases of $700-850 million. Tax rate ~22%. Expects 500+ bps of positive operating leverage in FY2026. Key assumptions: ~2-2.5% GDP growth, ~2.5% CPI, ~4.5% unemployment, Fed funds approaching 3.00-3.25% by YE2026. For Q1 2026: NII stable (day count impact of ~-$22M), noninterest income stable, expense up 2-2.5% reflecting seasonality, NCOs stable to slightly lower, ~$300M share repurchases. Medium-term targets: ROTCE of 16-18% (expected in 2H27), CET1 ~10.0-10.5%, efficiency ratio mid-50s%, dividend payout ratio ~35-40%, NIM of 3.30-3.50%. Reimagine the Bank targets ~$450 million pre-tax run-rate benefit by Q4 2028.
CFG YoY Financials
CFG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.