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 ...

Core Viewpoint - Citizens Financial Group (CFG) reported strong second-quarter 2025 adjusted earnings per share of 92 cents, exceeding estimates and reflecting a 12.2% year-over-year increase, driven by higher non-interest income and net interest income (NII) [1][9] Financial Performance - Net income on a GAAP basis was $436 million, marking an 11.2% increase from the prior-year quarter [2] - Total revenues for the quarter reached $2.04 billion, surpassing estimates by 1.5% and showing a 3.8% year-over-year growth [3][9] - NII increased by 2% year over year to $1.44 billion, supported by a higher net interest margin and an increase in average interest-earning assets [3] - The net interest margin (NIM) expanded by 5 basis points year over year to 2.95%, attributed to lower deposit costs and favorable fixed-rate asset repricing [4] - Non-interest income rose 8% year over year to $600 million, driven by increased capital markets fees, wealth fees, card fees, and mortgage banking income [4] Expense Management - Non-interest expenses increased by 1% year over year to $1.32 billion, primarily due to higher operating expenses and technology-related costs [5] - The efficiency ratio improved to 64.8%, down from 66.3% in the year-ago quarter, indicating enhanced profitability [5] Loan and Deposit Trends - As of June 30, 2025, total loans and leases were $139.3 billion, up 1.2% from the prior-year quarter, while total deposits declined by 1.4% to $175.1 billion [6][9] Credit Quality - The provision for credit losses was $164 million, a decline of 9.9% from the year-ago quarter, with net charge-offs decreasing by 9% to $167 million [7] - The allowance for credit losses decreased by 4% year over year to $2.21 billion, and non-accrual loans and leases slightly declined to $1.52 billion [7] Capital Position - As of June 30, 2025, the tier 1 leverage ratio remained stable at 9.4%, while the common equity tier 1 capital ratio decreased to 10.6% from 10.7% in the prior-year quarter [8][10] Shareholder Returns - In Q2 2025, CFG repurchased $200 million of common shares and distributed $185 million in common dividends [11]

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 ...

Core Viewpoint - Citizens Financial Group, Inc. (CFG) is expected to report an increase in second-quarter 2025 earnings and revenues compared to the same quarter last year, with various factors influencing this performance [1][18]. Financial Performance Expectations - CFG's net interest income (NII) is projected to rise by 3% in Q2 2025 from the previous quarter, supported by stable interest rates maintained by the Federal Reserve [3][11]. - The Zacks Consensus Estimate for NII is $1.44 billion, reflecting a 3.2% increase from the prior quarter [4]. - The consensus estimate for second-quarter revenues is $2.01 billion, indicating a 2.2% rise from the year-ago figure [18]. Loan and Asset Quality Insights - Despite macroeconomic uncertainties, demand for commercial and industrial loans and consumer loans is expected to have improved, leading to a modest rise in CFG's lending activities [5]. - The Zacks Consensus Estimate for average interest-earning assets is $196.2 billion, showing a slight increase from the previous quarter [6]. - Non-accrual loans are estimated to rise to $1.62 billion, a 2.4% increase sequentially, indicating potential concerns regarding asset quality [15]. Non-Interest Income and Fee Growth - Mortgage banking fees are expected to increase to $63 million, a 6.6% rise from the prior quarter, driven by improved refinancing activities [8]. - Trust and investment services fees are projected to reach $84 million, reflecting a 3.7% increase from the previous quarter [9]. - Capital markets fees are estimated at $108.4 million, indicating an 8.4% sequential rise, supported by improved deal-making activities in the latter part of the quarter [12][10]. Expense Management - CFG anticipates that adjusted non-interest expenses will remain stable compared to the first quarter, despite increased costs from new banking offices and technology investments [14].

Analysts on Wall Street project that Citizens Financial Group (CFG) will announce quarterly earnings of $0.88 per share in its forthcoming report, representing an increase of 12.8% year over year. Revenues are projected to reach $2.01 billion, increasing 2.2% from the same quarter last year. Over the last 30 days, there has been an upward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their ini ...

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].