Core Viewpoint - Citizens Financial Group Inc. achieved a new all-time high stock price of $64.27, reflecting strong earnings performance for the fourth quarter and full year 2025 [1][3]. Financial Performance - Net income available to shareholders increased by 23% to $1.688 billion in 2025, up from $1.372 billion in 2024 [2]. - For the fourth quarter, net income available to shareholders surged by 33% to $489 million, compared to $367 million in the same quarter of the previous year [4]. - Total revenues for the full year rose by 5.6% to $8.247 billion, with net interest income contributing significantly at $5.853 billion, an increase of 3.9% from $5.633 billion year-on-year [3]. - In the fourth quarter alone, total revenues jumped by 39% to $2.157 billion from $1.986 billion, with net interest income rising by 8.85% to $1.537 billion [4]. Management Commentary - The company expressed satisfaction with its fourth quarter and full year results, attributing success to effective execution of growth initiatives and improvements in net interest margin [5]. Dividend Announcement - Citizens Financial Group declared a dividend of $0.46 per share for common shareholders, with a record date of February 4, 2026, and payment scheduled for February 18, 2026 [6].

Core Viewpoint - Citizens Financial Group (CFG) has demonstrated strong financial performance, leading to an optimistic outlook from Jefferies, which has maintained a "Buy" rating and increased the price target from $70 to $80 [1][5]. Financial Performance - CFG reported earnings per share (EPS) of $1.13 for the fourth quarter of 2025, exceeding the Zacks Consensus Estimate of $1.11, representing a 32.9% year-over-year increase [2][5]. - The company achieved a net income of $528 million, reflecting a 31.6% increase from the prior-year quarter, showcasing strong operational execution and strategic growth initiatives [4]. Revenue Growth - The growth in CFG's net interest income and non-interest income significantly contributed to its impressive results, supported by higher loan and deposit balances [3][5]. - CFG's stock price rose by nearly 2.8% in early trading following the earnings announcement, indicating positive market reception to its financial performance [2][5]. Credit Quality and Expenses - The company experienced improvements in credit quality, with declines in provisions, charge-offs, and non-accrual loans compared to the previous year [3]. - Despite the positive financial results, CFG faced challenges with rising expenses [3].

Core Insights - Citizens Financial Group (CFG) reported a revenue of $2.16 billion for Q4 2025, marking an 8.6% year-over-year increase and a surprise of +0.39% over the Zacks Consensus Estimate of $2.15 billion [1] - The earnings per share (EPS) for the same quarter was $1.13, compared to $0.85 a year ago, resulting in an EPS surprise of +2.03% against the consensus estimate of $1.11 [1] Financial Performance Metrics - Net charge-offs as a percentage of average loans and leases remained stable at 0.4%, matching the average estimate from six analysts [4] - The efficiency ratio was reported at 62.2%, consistent with the six-analyst average estimate [4] - Net interest margin stood at 3.1%, aligning with the average estimate from six analysts [4] - Return on average total assets was 1%, exceeding the average estimate of 0.9% from six analysts [4] - Tangible book value per common share was $38.07, surpassing the estimated $37.44 from five analysts [4] - Book value per common share reached $56.39, compared to the average estimate of $55.70 from five analysts [4] - Return on average common equity was reported at 8.2%, above the average estimate of 7.9% from five analysts [4] - Average balances of total interest-earning assets were $199.17 billion, slightly below the average estimate of $199.89 billion from five analysts [4] - Net charge-offs totaled $155 million, slightly above the estimated $152.71 million from five analysts [4] - Tier 1 leverage ratio was 9.4%, matching the average estimate from four analysts [4] - Common Equity Tier 1 Capital Ratio (CET1) was reported at 10.6%, slightly below the average estimate of 10.7% from four analysts [4] - Nonaccrual loans and leases amounted to $1.5 billion, better than the average estimate of $1.57 billion from three analysts [4] Stock Performance - Citizens Financial Group's shares returned +0.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

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]

Core Insights - Citizens Financial Group reported strong fourth-quarter results, with EPS of $1.13, reflecting an 8% increase from the prior quarter and a 36% increase year-over-year, alongside a return on tangible common equity (ROTC) of 12.2% [2][5][13] - The company experienced a sequential decline in non-interest income by 2%, but a year-over-year increase of 10%, driven by record wealth management performance and capital markets activity [1][3] - Management provided a positive outlook for 2026, projecting net interest income (NII) growth of 10-12% and net interest margin (NIM) expansion of approximately 4-5 basis points per quarter [4][18] Financial Performance - Net interest income increased by 3% quarter-over-quarter, supported by a NIM of 3.07%, which rose by seven basis points [2][5] - Citizens reported a 1% increase in average and period-end loans, with a 2% increase when excluding non-core runoff [7][10] - The efficiency ratio improved by about 79 basis points to 62%, reflecting better cost management [6] Wealth and Capital Markets - Wealth management fees increased by 5% sequentially and 31% year-over-year, contributing to the overall growth in non-interest income [1][3] - Capital markets had its "third-best quarter ever," with a 16% year-over-year increase, although it was down 16% from an unusually strong prior quarter [1][3] Credit and Capital Trends - Credit quality improved, with net charge-offs easing to 43 basis points, down from 46 basis points in the previous quarter [11][13] - The Common Equity Tier 1 (CET1) ratio stood at 10.6%, with the company returning $326 million to shareholders in Q4 and $1.4 billion in 2025 [5][13] Strategic Initiatives - The "Reimagine the Bank" initiative aims to enhance customer experience and productivity through technology, targeting $450 million in run-rate benefits by the end of 2028 [16][20] - The private bank segment showed significant growth, ending the year with $14.5 billion in deposits and contributing positively to EPS [14][15] 2026 Outlook - Citizens expects NII growth of 10-12% and NIM expansion towards approximately 3.25% by 2026, assuming two 25-basis-point Fed cuts [4][18] - The company is focusing on organic growth rather than acquisitions, emphasizing ongoing initiatives like the private bank expansion [19][20]

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 ...