Citizens Financial Group, Inc.(CFG -0.49%) reported 2Q2025 results on July 17th, delivering earnings per share (EPS) of $0.92, up $0.15, or 19%, from the prior quarter, driven by 3.3% net interest income (NII) growth, fee income grew 10% quarter-over-quarter, and five basis points of net interest margin (NIM) expansion to 2.95%. The company executed $200 million in share repurchases, achieved record private bank loan growth of $1.2 billion, and maintained strong credit metrics, while reaffirming full-year a ...

Key Takeaways CFG posted Q2 adjusted EPS of 92 cents, topping estimates and rising 12.2% year over year. Revenues grew 3.8% to $2.04B, driven by higher NII, improved NIM and stronger fee income. Loan balances rose 1.2%, but deposits fell 1.4% and expenses moved up in the quarter.Citizens Financial Group (CFG) has reported second-quarter 2025 adjusted earnings per share of 92 cents, which surpassed the Zacks Consensus Estimate of 88 cents. The metric rose 12.2% from the year-ago quarter.Results have benefi ...

Peacock. >> Welcome back. Take a look at Citizens Financial Group higher this morning.After a beat on the top and bottom lines, with net interest income in line with expectations, forecasting a constructive environment heading into the second half. Joining us now in a CNBC exclusive interview is Citizens Financial Group CEO Bruce Benson. You know, Bruce, if we told you, you know, in early April that all regional banks, big banks are going to report healthy numbers, improving outlooks and confidence, it woul ...

Financial Data and Key Metrics Changes - The company reported a strong net interest income (NII) growth of 3.3% sequentially, driven by a net interest margin (NIM) expansion of five basis points to 2.95% [6][12][15] - Earnings per share (EPS) for the second quarter was $0.92, reflecting a $0.15 or 19% improvement over Q1 [12] - The company executed $200 million in stock buybacks during the quarter, returning a total of $385 million to shareholders [14][26] Business Line Data and Key Metrics Changes - The Private Bank experienced its strongest loan growth quarter, adding $1.2 billion in loans, contributing $0.06 to EPS, up from $0.04 in the prior quarter [14][27] - Fees increased by 10% linked quarter, with wealth and card fees reaching record levels [13][15] - The card business also delivered a record quarter driven by seasonal improvements in purchase volumes [18] Market Data and Key Metrics Changes - The company noted a favorable credit trend with net charge-offs decreasing to 48 basis points from 51 basis points in the prior quarter [22][23] - Non-accrual loans decreased by 4% linked quarter, indicating improving credit quality [23] - Average deposits were up 1%, driven by increases in lower-cost categories across consumer and the private bank [21] Company Strategy and Development Direction - The company is focused on a multi-year initiative called "Reimagining the Bank," aimed at redesigning customer service and operational efficiency through new technologies like AI [9][10][27] - The strategic emphasis includes building a transformed consumer bank, a well-positioned commercial bank, and a premier private bank and wealth franchise [26] - The company remains on track to achieve over 5% accretion to its bottom line and a return on equity (ROE) of over 20% in 2025 [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic conditions and market trends, anticipating a favorable environment for loan demand and deal activity in the second half of the year [10][11] - The company is comfortable with its full-year guidance for 2025, expecting continued momentum in its strategic initiatives [11][30] - Management highlighted the importance of maintaining a fortress balance sheet to navigate economic cycles and capitalize on opportunities [81] Other Important Information - The company is experiencing strong growth in its private banking segment, with a significant increase in assets under management (AUM) [27][28] - The company is also seeing a positive trend in its capital markets business, with a strong pipeline of deals expected to close in the upcoming quarters [7][10] Q&A Session Summary Question: Loan growth dynamics in the private bank - Management noted that all three business segments (commercial, consumer, private bank) experienced net loan growth, with a constructive outlook for the second half of the year [36][38] Question: NIM expectations in a dovish Fed environment - Management discussed strategies to lock in higher net interest margins, including opportunistic hedging to protect against downside risks [56][59] Question: Strategy for deposits and growth outlook - Management emphasized the importance of low-cost deposit trends and the ability to grow deposits to support loan growth while optimizing the mix [67][69] Question: Capital requirements and rating agency perspectives - Management indicated that while regional banks have built capital conservatively, there is potential for capital requirements to adjust as profitability improves [78][80] Question: Details on the "Reimagining the Bank" initiative - Management explained that this initiative aims to leverage new technologies to enhance customer service and operational efficiency, with a focus on long-term growth [85][89]

Financial Data and Key Metrics Changes - The company reported strong financial results for the second quarter, with net interest income (NII) growth of 3.3% sequentially, driven by a net interest margin (NIM) expansion of five basis points [4][9] - Earnings per share (EPS) for the quarter was $0.92, reflecting a $0.15 or 19% improvement over the previous quarter [9] - Operating leverage improved by 500 basis points, with expenses broadly flat [4][9] Business Line Data and Key Metrics Changes - The Private Bank experienced strong loan growth, adding $1.2 billion in loans, contributing $0.06 to EPS, up from $0.04 in the prior quarter [11][25] - Wealth and card fees increased significantly, with record levels achieved in the quarter [10][13] - Mortgage revenue growth was attributed to an improvement in mortgage servicing rights (MSR) valuation and seasonal production increases [10][14] Market Data and Key Metrics Changes - The company noted a favorable credit trend, with net charge-offs decreasing to 48 basis points from 51 basis points in the prior quarter [18] - Non-accrual loans decreased by 4% linked quarter, indicating improving credit quality [19] - The company maintained a strong capital position with a CET1 ratio of 10.6% and executed $200 million in stock buybacks during the quarter [11][22] Company Strategy and Development Direction - The company is focused on a multi-year initiative called "Reimagining the Bank," aimed at redesigning customer service and operational efficiency through new technologies like AI [6][23] - The strategic focus includes transforming the consumer bank, enhancing the commercial bank's positioning, and building a premier private bank and wealth franchise [22] - The company remains on track to achieve over 5% accretion to its bottom line and a return on equity (ROE) of over 20% in 2025 [6][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about economic conditions and market trends, anticipating favorable conditions for the second half of the year despite uncertainties around tariffs [7][8] - The company expects to maintain its full-year guidance for 2025, with a clear path to achieving its ROTCE target of 16% to 18% [27] - Management highlighted the importance of executing on strategic initiatives and controlling factors within their influence [8][22] Other Important Information - The company reported a strong pipeline for capital markets, expecting to record over $30 million in fees from delayed M&A deals in July [5][13] - The company is focused on optimizing its deposit funding, with a notable increase in non-interest-bearing deposits [17][66] - The allowance for credit losses was slightly down to 1.59%, reflecting an improving portfolio mix [20] Q&A Session Summary Question: Loan growth in the quarter - Management noted that all three business segments (commercial, consumer, private bank) experienced net loan growth, with a constructive outlook for the second half of the year [34][35] Question: NIM expectations in a dovish Fed environment - Management indicated confidence in maintaining NIM expectations, with hedging strategies in place to protect against downside risks [54][56] Question: Strategy for the second half of the year - Management emphasized a focus on both growth and optimizing the deposit mix, with strong performance in low-cost deposits [64][66] Question: Capital strategy and rating agency considerations - Management discussed the importance of maintaining a conservative capital structure while being optimistic about future capital requirements [78][81] Question: Reimagining the Bank initiative - Management explained that this initiative aims to leverage new technologies and improve operational efficiency, with a dedicated team leading the effort [84][86]

Financial Performance Highlights - Net income available to common stockholders was $402 million[8], an 18% increase quarter-over-quarter and an 13% increase year-over-year[8] - Diluted earnings per share (EPS) reached $0.92[8], a 19% increase quarter-over-quarter and an 18% increase year-over-year[8] - Total revenue was $2037 million[8], a 5% increase quarter-over-quarter and a 4% increase year-over-year[8] - The efficiency ratio improved to 64.8%[8] - Return on tangible common equity (ROTCE) was 11.0%[8] Key Business Segment Performance - Private Bank contributed $0.06 to EPS[11], up $0.02 quarter-over-quarter[11], and is expected to deliver a ~20 to 24% return on equity for FY2025[11] - Net interest income (NII) was $1437 million[8], up 3% quarter-over-quarter and 2% year-over-year[8] - Noninterest income was $600 million[8], up 10% quarter-over-quarter and 8% year-over-year[8] Balance Sheet and Capital Management - Average deposits increased by 1% quarter-over-quarter to $174.1 billion[8] - The CET1 ratio remained strong at 10.6%[11] - The company repurchased $200 million of common stock at a weighted-average price of $39.00[45]

Financial Supplement Second Quarter 2025 1 | Table of Contents | Page | | --- | --- | | Consolidated Financial Highlights | 3 | | Consolidated Statements of Operations (unaudited) | 5 | | Consolidated Balance Sheets (unaudited) | 6 | | Loans and Deposits | 7 | | Average Balance Sheets, Annualized Yields and Rates | 8 | | Mortgage Banking Fees | 10 | | Segment Financial Highlights | 11 | | Credit-Related Information: | | | Nonaccrual loans and leases | 15 | | Loans and Leases 90 Days or More Past Due and Acc ...

Key Takeaways CFG expects a 3% NII rise in Q2 as stable rates helped ease funding cost pressures. Fee income is likely to have risen with gains in mortgage, card and capital markets activity. Loan demand and average interest-earning assets are likely to have seen modest sequential growth.Citizens Financial Group, Inc. (CFG) is scheduled to report second-quarter 2025 results on July 17, 2025, before the opening bell. The bank’s second-quarter 2025 earnings and revenues are expected to have increased from t ...

Core Viewpoint - Citizens Financial Group (CFG) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a positive earnings surprise history and favorable analyst estimates [1][5]. Earnings Performance - For the last reported quarter, Citizens Financial Group achieved earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, resulting in a surprise of 2.67% [2]. - In the previous quarter, the company reported earnings of $0.85 per share against an expected $0.83 per share, delivering a surprise of 2.41% [2]. Earnings Estimates - Recent estimates for Citizens Financial Group have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for the company stands at +1.55%, reflecting increased analyst optimism regarding its near-term earnings potential [8]. Zacks Rank and Predictive Power - The stock holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, suggests a high probability of beating consensus estimates, with historical data indicating nearly 70% success in such cases [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [7].

Core Viewpoint - Citizens Financial Group's share price increased by nearly 11% in June due to a significant share repurchase plan and favorable results from the Federal Reserve's banking industry stress test [1][2]. Group 1: Share Repurchase Plan - Citizens Financial announced a $1.2 billion increase to its existing stock buyback program, bringing the total to $1.5 billion, which is substantial for a company with a market cap under $21 billion [2][4]. Group 2: Stress Test Results - The Federal Reserve's annual stress tests showed that all 22 major U.S. banks, including the "big four" (Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup), passed their evaluations, indicating that mid- and large-sized banks are generally in good health [5][6]. - Citizens Financial is tested every two years and was not part of this year's stress test, but the positive results for other banks suggest resilience in the banking sector [6][8]. Group 3: Financial Performance - Despite the positive market reaction, Citizens Financial's first-quarter revenue was stagnant, with a decline in average loans and leases, although net profit increased by 12% to $374 million due to a rise in non-interest income [9].