Core Viewpoint - Citizens Financial Group (CFG) reported strong fourth-quarter 2025 earnings, with earnings per share (EPS) of $1.13, exceeding estimates and reflecting a 32.9% year-over-year increase [1][9] Financial Performance - Net income on a GAAP basis for Q4 2025 was $528 million, up 31.6% from the previous year [2] - Total revenues for Q4 reached $2.16 billion, surpassing estimates by 0.4% and increasing 8.6% year over year [4] - Full-year 2025 earnings per share were $3.86, exceeding the consensus estimate and up from $3.03 in 2024 [3] Income Sources - Net interest income (NII) rose 8.8% year over year to $1.54 billion, driven by an improved net interest margin [4][5] - Non-interest income increased by 8% year over year to $620 million, attributed to higher service charges, capital markets fees, and wealth fees [5] Expenses and Efficiency - Non-interest expenses rose 2.1% year over year to $1.34 billion, primarily due to increased salaries and operational costs [6] - The efficiency ratio improved to 62.2% in Q4 from 66.3% in the previous year, indicating enhanced profitability [6] Loan and Deposit Growth - Total loans and leases as of December 31, 2025, were $142.7 billion, up 1.3% from the prior quarter, while total deposits increased 1.8% to $183.3 billion [7] Credit Quality - Provision for credit losses decreased by 15.4% year over year to $137 million, with the allowance for credit losses down 3.4% to $2.2 billion [8] - Net charge-offs fell 17.9% year over year to $155 million, and non-accrual loans declined 9.6% to $1.5 billion [10] Capital Position - As of December 31, 2025, the tier 1 leverage ratio remained at 9.4%, while the common equity tier 1 capital ratio decreased to 10.6% from 10.8% [11] Shareholder Actions - In Q4 2025, CFG repurchased $125 million of common shares and distributed $201 million in common dividends [12] Overall Assessment - CFG's fourth-quarter results demonstrate balanced growth in net interest income and fees, improved efficiency, and stable credit quality, although concerns remain regarding expense pressures and capital position [13]

Group 1 - Citizens Financial Group, Inc. is one of the nation's oldest and largest financial institutions with $226.4 billion in assets as of December 31, 2025 [2] - The company offers a broad range of retail, private banking, wealth management, and commercial banking products and services to various customer segments including individuals, small businesses, middle-market companies, large corporations, and institutions [2] - Citizens provides an integrated experience in Consumer Banking, which includes mobile and online banking, a full-service customer contact center, and approximately 3,100 ATMs and 1,000 branches across 14 states and the District of Columbia [2] Group 2 - In Commercial Banking, Citizens offers a wide array of financial products and solutions such as lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities [2] - The company emphasizes understanding customer needs to provide tailored advice, ideas, and solutions [2]

Non-interest income declined 2% sequentially but rose 10% year-over-year on an underlying basis. Wealth posted another record quarter, increasing 5% sequentially and 31% year-over-year, supported by advisory fees and fee-based AUM growth. Capital markets produced its “third-best quarter ever,” up 16% year-over-year but down 16% from an unusually strong third quarter. Management said several M&A and equity deals were pushed into 2026 due to government shutdown impacts, and it expects roughly $20 million of r ...

Financial Data and Key Metrics Changes - The company reported a 19% increase in EPS for 2025, reaching $3.86, compared to the previous year [5][12] - Net interest income (NII) increased by 9% year-on-year, with a net interest margin (NIM) expansion of 20 basis points [5][12] - The company achieved a positive operating leverage of 1.3% sequentially and 5.2% year-on-year [4][5] - The return on tangible common equity (ROTC) for the fourth quarter was 12.2% [13] Business Line Data and Key Metrics Changes - The private bank contributed $0.10 to EPS in Q4, with deposits reaching $14.5 billion and loans totaling $7.2 billion [12][23] - Wealth management fees increased by 22% year-on-year, while capital markets fees rose by 9% [12][13] - The company reduced non-core assets from $6.9 billion to $2.5 billion over the year [5][12] Market Data and Key Metrics Changes - Total spot deposits increased by approximately 2% to $183 billion, with non-interest-bearing balances up 2% [18][19] - The company maintained a CET1 ratio of 10.6% and returned $1.4 billion to shareholders, representing 80% of earnings [21][22] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the "Reimagine the Bank" program aimed at enhancing customer experience and driving revenue benefits [7][24] - The outlook for 2026 includes expectations of strong revenue performance, controlled expenses, and significant positive operating leverage [9][26] - The company aims to grow private bank deposits to $18-$20 billion and loans to $11-$13 billion by 2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable macro environment for 2026, projecting GDP growth and stable unemployment [8][9] - The company anticipates two Fed rate cuts in 2026, with a stable regulatory environment [8][9] - Management highlighted the importance of organic growth over acquisitions in the near term [8] Other Important Information - The company achieved a cumulative interest-bearing deposit beta of about 48% by year-end [14] - The "Reimagine the Bank" initiative is expected to deliver approximately $450 million in pre-tax run rate benefits by the end of 2028 [25] Q&A Session Summary Question: Insights on the "Reimagine the Bank" initiative - Management indicated that the program has about 50 work streams and is expected to improve customer experience and reduce attrition [33][36] Question: Changes in deposit betas and NIM outlook - Management noted that the market has become less aggressive in pricing, leading to a beta drop to high 40s, while maintaining confidence in NIM due to strong non-interest-bearing balance growth [40][42] Question: Loan growth guidance and balance sheet optimization - Management highlighted strong growth drivers in the private bank and commercial banking, with a significant reduction in non-core assets contributing to positive sentiment on loan growth [47][50] Question: Fee growth assumptions - Management provided a conservative fee growth guidance of 6%-8% for 2026, citing strong performance in capital markets and wealth management [63][66] Question: Capital management and CET1 ratio - Management expressed optimism about potential changes in the stress test outcomes, which could allow for a reduction in the CET1 ratio towards medium-term targets [70][72]

Financial Data and Key Metrics Changes - The company reported a net interest margin expansion of 7 basis points, with net interest income (NII) up 9% year-on-year and earnings per share (EPS) of $3.86, reflecting a 19% increase compared to 2024 [4][6][12] - For Q4, EPS was $1.13, up 8% sequentially and 36% year-on-year, with a return on tangible common equity (ROTCE) of 12.2% [14][6] - The company achieved positive operating leverage of 1.3% sequentially and 5.2% year-on-year, with expenses up 4.6% against a guide of 4% [4][7] Business Line Data and Key Metrics Changes - The Private Bank contributed $0.10 to EPS in Q4, with deposits reaching $14.5 billion and loans at $7.2 billion, exceeding the original target of 5% contribution to pre-tax income [4][24] - Wealth management fees increased by 22% year-on-year, while capital markets fees were up 9% year-on-year, contributing to an overall fee increase of 11% [12][13] - The company reduced non-core assets from $6.9 billion to $2.5 billion, enhancing balance sheet strength [5][24] Market Data and Key Metrics Changes - Total spot deposits increased approximately 2% to $183 billion, with non-interest-bearing balances up 2% [19][20] - The company maintained a CET1 ratio of 10.6%, with expectations to manage it between 10.5% and 10.6% throughout 2026 [10][22] - Credit quality improved, with net charge-offs decreasing to 43 basis points from 46 basis points in the prior quarter [20][22] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the "Reimagine the Bank" program, which aims to enhance customer experience and drive revenue benefits [7][25] - The outlook for 2026 includes expectations for NII growth of 10%-12% and continued expansion of the net interest margin [9][27] - The company plans to maintain a disciplined approach to capital management, with share repurchases projected at $700 million-$850 million [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable macro environment for 2026, anticipating solid GDP growth and stable unemployment [8][9] - The company expects to achieve a medium-term ROTCE target of 16%-18% by the second half of 2027, supported by margin expansion and strong loan growth [30][31] - Management highlighted the importance of maintaining a strong balance sheet and credit quality as key components of their strategy [22][29] Other Important Information - The company returned $1.4 billion to shareholders in 2025, representing 80% of earnings, with a tangible book value per share increase of 18% year-over-year [22][23] - The "Reimagine the Bank" initiative is expected to deliver approximately $450 million in pre-tax run rate benefits by the end of 2028 [26] Q&A Session Summary Question: Insights on the "Reimagine the Bank" initiative - Management indicated that the program has about 50 work streams and is expected to improve customer experience and reduce attrition, with revenue benefits anticipated over time [34][36] Question: Changes in deposit betas and NIM outlook - Management noted that the market has become less aggressive in pricing actions, leading to a revised deposit beta in the high 40s, while confidence in NIM remains due to strong non-interest-bearing balance growth [40][42] Question: Loan growth guidance and balance sheet optimization - Management highlighted strong growth in the private bank and commercial banking sectors, with a focus on reducing non-core assets and optimizing the balance sheet [48][50] Question: Fee growth assumptions and capital markets outlook - Management provided a conservative fee growth guidance of 6%-8% for 2026, citing strong capital markets pipelines and record wealth management performance [64][66] Question: CET1 ratio and buyback strategy - Management expressed optimism about potential changes in the stress test outcomes, which could allow for a reduction in the CET1 ratio and increased buybacks in the latter half of the year [70][72]

Financial Data and Key Metrics Changes - The company reported a 19% year-over-year increase in EPS, reaching $3.86 for 2025, with Q4 EPS up 8% sequentially and 36% year-over-year at $1.13 [4][10] - Net interest income (NII) increased by 9% year-over-year, with a net interest margin (NIM) expansion of 20 basis points [4][10] - The company achieved positive operating leverage of 1.3% sequentially and 5.2% year-over-year [3][4] - Total deposits increased to approximately $183 billion, with non-interest-bearing balances up 2% [17][18] Business Line Data and Key Metrics Changes - The private bank contributed significantly, with $14.5 billion in deposits, $10 billion in client assets, and $7.2 billion in loans, exceeding the 5% income target with a 25% ROE [3][22] - Wealth management fees rose by 22% year-over-year, while capital markets fees increased by 9% [10][11] - The company reduced non-core assets from $6.9 billion to $2.5 billion during the year [4][10] Market Data and Key Metrics Changes - The company anticipates solid GDP growth and stable unemployment in 2026, with inflation expected to decline [6][7] - The regulatory environment is projected to remain positive, with expectations of two Fed rate cuts [6][7] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the "Reimagine the Bank" program aimed at enhancing customer experience and operational efficiency [5][6] - The private bank is expected to grow deposits to $18-$20 billion and loans to $11-$13 billion by 2026, with a target ROE of 20%-25% [23][24] - The company aims to achieve a medium-term ROTC target of 16%-18% by the second half of 2027 [6][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for 2026, expecting strong revenue performance and controlled expenses [7][29] - Credit costs are projected to improve, with net charge-offs expected to be in the mid to high 30s basis points [26][27] - The company plans to return a substantial amount of capital to shareholders, with share repurchases estimated at $700-$850 million [26][27] Other Important Information - The company achieved an 80% return of capital to shareholders in 2025, with $1.4 billion returned [20][26] - The tangible book value per share increased to $38.07, reflecting an 18% year-over-year growth [20] Q&A Session Summary Question: How much of the "Reimagine the Bank" benefits will hit the bottom line versus being reinvested? - Management indicated that the program has about 50 work streams and expects revenue benefits to increase over time, with implementation costs being one-time capital costs [30][32] Question: What is driving the change in deposit betas? - Management noted that the market has become less aggressive in pricing actions, leading to a decrease in deposit betas from low to mid-50s to high 40s [34][35] Question: Can you elaborate on the loan growth guide? - Management expressed confidence in loan growth driven by the private bank's scaling, commercial banking expansion, and strong demand in consumer banking [39][40] Question: What are the underlying assumptions for fee growth? - Management expects a 6%-8% growth in fees for 2026, driven by strong capital markets and wealth management performance, despite some caution due to market uncertainties [49][50]

4Q25 Financial Results January 21, 2026 Forward-looking statements and use of non-GAAP financial measures This document, contains forward-looking statements within the nearing of the Private Securities Libration Reform Act of 1995. Any statement Ltatchical or current tractis i lobving statement. These statements often include the words "believes," "extimates, "intendes, "intends," "plans," "pans," "argets, " intitatives, " probably, "projects, "o l"guidance" or similar expressions or future conditional verb ...

Core Insights - Blockchain technology has the potential to accelerate global GDP by reducing the "friction tax" in payments, settlement, recordkeeping, and ownership verification [1] - The adoption of blockchain can lead to economic expansion through faster capital velocity, a larger investable universe, and improved infrastructure for a digital, AI-enabled world [1] Group 1: Institutional Adoption - Major institutions are increasingly implementing on-chain infrastructure, with the New York Stock Exchange planning to launch a tokenized securities platform for 24/7 trading of U.S. equities and ETFs, pending regulatory approval [2] - This integration of blockchain into core systems by market operators aims to capture new opportunities and mitigate disruption [3] Group 2: Economic Impact - The initial economic impact of blockchain will manifest through faster capital velocity, enabling around-the-clock markets and near–T+0 settlement, which can reduce trapped collateral and counterparty risk [4] - This will free up balance sheets, allowing the same pool of capital to support more real economic activity [4] Group 3: Tokenization and Asset Liquidity - Over time, tokenization can broaden the investable universe by making it feasible to issue, trade, and finance currently illiquid or complex assets, including traditional securities and new asset classes linked to the digital economy [5] - Tokenization refers to the conversion of real-world assets into blockchain-based tokens [5] Group 4: Alignment with Digital Economy - Blockchain technology is well-suited for an increasingly digital, AI-driven economy, as automation increases machine-initiated transactions [6] - The always-on, programmable nature of blockchain supports the rising demand for real-time settlement, authentication, and auditability at scale [6]

Financial Performance - Total revenue for Q4 2025 reached $2,157 million, a 2% increase from Q3 2025 and a 9% increase from Q4 2024[5]. - Net income for Q4 2025 was $528 million, reflecting a 7% increase from Q3 2025 and a 32% increase from Q4 2024[5]. - Basic earnings per share for Q4 2025 were $1.14, an 8% increase from Q3 2025 and a 37% increase from Q4 2024[5]. - The company reported a full-year revenue of $8,247 million, a 6% increase compared to $7,809 million in 2024[5]. - The full year 2025 net income was $1,831 million, representing a growth of $322 million or 21% compared to 2024[8]. - Total revenue for Q4 2025 reached $2,157 million, an increase of 1.86% from Q3 2025 and 8.57% year-over-year[29]. - Net income for Q4 2025 was $528 million, a 7% increase from Q3 2025 and a 28% increase compared to the same quarter last year[28]. Expenses and Efficiency - Noninterest expense for Q4 2025 was $1,343 million, a slight increase of 1% from Q3 2025[5]. - Noninterest expense for Q4 2025 was $1,343 million, reflecting a slight increase of 0.58% from Q3 2025 and 1.46% year-over-year[29]. - The efficiency ratio improved to 62.24% in Q4 2025, a decrease of 79 basis points from Q3 2025[6]. - The underlying efficiency ratio improved to 62.24% in Q4 2025, down from 63.03% in Q3 2025, indicating enhanced operational efficiency[29]. Income and Profitability Metrics - The provision for credit losses decreased to $137 million in Q4 2025, down 11% from Q3 2025 and 15% from Q4 2024[5]. - The company achieved a pre-provision profit of $814 million in Q4 2025, a 4% increase from Q3 2025[5]. - Return on average common equity reached 8.16% in Q4 2025, a 39 basis point increase compared to Q4 2024[6]. - Return on average total assets was 0.95% in Q4 2025, up from 0.90% in Q3 2025, indicating improved asset utilization[29]. - Return on average tangible common equity was 12.18% in Q4 2025, an increase of 43 basis points from Q4 2024[6]. Assets and Capital - Total assets increased to $226.351 billion as of December 31, 2025, up 2% from $222.747 billion in the previous quarter[9]. - Total stockholders' equity rose to $26.317 billion, a 2% increase from $25.829 billion in the previous quarter[9]. - CET1 capital ratio stood at 10.6% at the end of Q4 2025, consistent with Q3 2025[6]. - Total capital ratio was 13.8% at the end of Q4 2025, down from 13.9% in Q3 2025[6]. - Total tangible common equity increased to $16.341 billion, reflecting a 3% rise from $15.848 billion in the previous quarter[9]. Loans and Deposits - Total deposits reached $183.313 billion, a 2% increase from $180.011 billion in the previous quarter[10]. - Loan-to-deposit ratio at period-end was 77.84%, a decrease of 42 basis points from Q3 2025[6]. - Net loans and leases rose to $140.749 billion, reflecting a 1% increase from $138.898 billion in the prior quarter[9]. - Total loans and leases reached $141,757 million in 4Q25, an increase of $1,746 million compared to 3Q25[11]. Segment Performance - Total revenue for Consumer Banking was $1,614 million in Q4 2025, a 3% increase from Q3 2025 and a 7% increase year-over-year[14]. - Net income for Consumer Banking was $411 million in Q4 2025, representing a 7% increase from Q3 2025 and a 15% increase from Q4 2024[14]. - Total revenue for the Commercial Banking segment in Q4 2025 was $712 million, down 3% from Q4 2024, with a full-year revenue of $2,773 million, a decline of 3% from 2024[16]. - Net income for the Commercial Banking segment in Q4 2025 was $215 million, a decrease of 13% from Q4 2024, with a full-year net income of $865 million, down 11% from 2024[16]. Credit Quality - The allowance for loan and lease losses decreased to $1.943 billion, down from $1.972 billion in the prior quarter[9]. - Nonaccrual loans and leases totaled $1,504 million as of December 31, 2025, a decrease of 1% from the previous quarter and down 10% from December 31, 2024[19]. - The net charge-offs for the Commercial Banking segment were $70 million in Q4 2025, down 10% from Q3 2025, with a full-year total of $309 million, a decrease of 12% from 2024[16]. Dividends - The dividend payout ratio for Q4 2025 was 40%, consistent with Q3 2025[5]. - Cash dividends declared and paid per common share increased to $0.46, a 10% rise from $0.42 in Q3 2025[30].

U.S. stock futures rose Tuesday evening after benchmarks logged their worst pullback in months, amid President Donald Trump’s renewed threats tied to Greenland and warning that there was “no going back” following a call with NATO Secretary General Mark Rutte.The S&P 500 Futures are up 0.29%, or 20 points, trading at 6,849.50, followed by Nasdaq Futures at 25,205.25, up 0.30%, or 72.75 points and finally Dow Futures, trading at 48,769.00, up 103 points, or 0.21%, on late Tuesday evening.The move follows a st ...