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].

Market Overview - U.S. stock futures rose after a significant pullback, with S&P 500 Futures up 0.29% to 6,849.50, Nasdaq Futures up 0.30% to 25,205.25, and Dow Futures up 0.21% to 48,769.00 [1] - The previous trading session saw the S&P 500, Nasdaq, and Dow Jones drop by 2.06%, 2.39%, and 1.76% respectively [2] Political and Economic Tensions - President Trump threatened new tariffs against Europe starting at 10% on February 1, increasing to 25% by June, unless the U.S. gains control over Greenland [2] - European leaders, including French President Macron, responded by urging the EU to utilize its anti-coercion tool, potentially affecting up to €93 billion in U.S. exports [3] Global Market Reactions - Asian markets declined, with Japan's Nikkei 225 down 0.55% to 52,699.53, influenced by semiconductor and engineering stocks [3] - China's SSE Composite Index increased by 0.05% to 4,115.85, while Hong Kong's Hang Seng Index decreased by 0.02% to 26,482.24 [4] Precious Metals and Currency - Rising uncertainty led to a surge in precious metals, with gold reaching a record high of $4,843 per ounce, currently trading at $4,841, up 1.61% [4] - The spot price of silver also hit a new high of $95.87 per ounce, currently trading at $94.28, down 0.32% [4] - The U.S. Dollar Index (DXY) fell by 0.07% to 98.492, marking a third consecutive session of decline [5] Upcoming Earnings Reports - Investors are anticipating earnings releases from Johnson & Johnson, Charles Schwab Corp., and Citizens Financial Group, along with reports on Pending Home Sales and Construction Spending [5]

Core Viewpoint - Citizens Financial Group, Inc. is preparing to release its quarterly earnings on January 21, 2026, with analysts expecting an earnings per share (EPS) of $1.11 and revenue of approximately $2.15 billion, amidst challenges from higher expenses due to expansion and technology investments [1][2]. Financial Performance Expectations - Analysts have set an EPS estimate of $1.11 for the upcoming quarter, with projected revenue around $2.15 billion [2][6]. - CFG is expected to benefit from modest growth in net interest income (NII) due to lower interest rates and strong loan demand, having seen increases in both NII and non-interest income in the previous quarter [3]. Financial Metrics - CFG's price-to-earnings (P/E) ratio is approximately 15.36, indicating the market's valuation of its earnings [4]. - The price-to-sales ratio stands at about 2.17, reflecting the market's valuation relative to its revenue, while the enterprise value to sales ratio is around 2.03 [4]. - The debt-to-equity ratio is approximately 0.41, indicating a moderate level of debt relative to equity, while the current ratio is around 0.26, suggesting potential liquidity challenges [5].

Core Perspective - Citizens has launched its ninth annual Small Business Community Champion Award Contest to support small businesses and promote economic growth [1] Group 1: Program Details - The contest aims to recognize and empower business owners who contribute to strengthening neighborhoods [1] - This year, 20 small businesses will each receive $10,000 in funding [1]

Core Viewpoint - Citizens Financial Group, Inc. (CFG) is expected to report an increase in fourth-quarter and 2025 earnings and revenues compared to the previous year [1][10] Financial Performance Expectations - CFG's net interest income (NII) is projected to rise by 2.5-3% sequentially in Q4 2025, with a Zacks Consensus Estimate of $1.53 billion, reflecting a 2.7% increase from the prior quarter [4] - The average interest-earning assets are estimated at $199.9 billion, indicating a 1.2% rise from the previous quarter [5] - The consensus estimate for fourth-quarter earnings is $1.11 per share, representing a 30.6% increase year-over-year, while revenues are expected to reach $2.15 billion, an 8.2% rise from the previous year [15] Income Sources - Non-interest income is anticipated to be flat, with mortgage banking fees estimated at $51.5 million, a 5.1% decline from the prior quarter [7] - Trust and investment services fees are expected to increase to $96.3 million, a 3.5% rise from the previous quarter [8] - Service charge and fee revenues are projected at $114.9 million, reflecting a 2.6% increase from the prior quarter [9] - Card fees are estimated at $89.6 million, indicating a 2.9% rise from the previous quarter [11] Expense and Asset Quality Outlook - Adjusted non-interest expenses are expected to be stable or slightly up due to the opening of private banking offices and investments in technology [12] - The Zacks Consensus Estimate for non-accrual loans is pegged at $1.57 billion, indicating a sequential rise of 3.3% [13] 2025 Outlook - Management anticipates NII to rise by 3-5% from $5.6 billion in 2024, with a net interest margin (NIM) expected to be 3% [16] - Average loans are projected to decrease by 2-3% from $139.2 billion in 2024, while average earnings assets are forecasted to fall by 1% from $198.1 billion [16] - Non-interest income is expected to increase by 8-10% from $2.6 billion reported in 2024 [16] - Adjusted non-interest expenses are projected to grow by 4% from $5.1 billion in 2024 [17]

Core Viewpoint - Citizens Financial Group has announced a change in the date and time for its fourth quarter and full year 2026 conference call to discuss financial results [1] Group 1 - The conference call is now scheduled for 9:00 a.m. Eastern Time (ET) on Friday, January 15, 2027 [1] - A press release reporting the financial results will be issued at approximately 6:20 a.m. ET on the same day [1] - The news release will be accessible at the company's investor relations website [1]

Core Viewpoint - Citizens Financial Group, Inc. (NYSE:CFG) is experiencing significant stock performance, with a 36% increase over the past year, attracting attention from various financial firms regarding its future prospects [2]. Group 1: Stock Performance and Analyst Ratings - Citizens Financial Group's shares have risen by 36% in the last year [2]. - Truist raised the share price target for Citizens Financial from $56 to $63 while maintaining a Hold rating [2]. - Raymond James downgraded the shares from Outperform to Strong Buy but increased the price target from $62 to $66, citing strong share price performance [2]. - Barclays raised its price target for Citizens Financial from $56 to $77 and upgraded the rating to Overweight, highlighting net interest margin expansion and private bank buildout as reasons for optimism [2]. Group 2: Commentary and Market Sentiment - Jim Cramer described Barclays' upgrade as an "oddity," noting the significant increase in stock price already [3]. - The company is recognized for its effective cost management, which could benefit its performance in the long term [2].

Core Insights - The 15th annual M&A Outlook by Citizens indicates a broader U.S. dealmaking landscape anticipated for 2026 [1] - Optimism among leaders at U.S. middle market companies and private equity firms has reached a six-year high, with 58% describing the current mergers and acquisitions environment as strong [1] - This optimism is attributed to a clearer economic picture despite challenges such as rising input costs and supply chain disruptions [1]

Group 1 - The conference call will take place at 9:00 am ET with dial-in options for participants [1] - Individuals can ask questions by calling 800-369-1703, while a listen-only line is available at 800-475-8432 [1] - The live webcast of the conference call can be accessed through the company's investor relations website [1] Group 2 - A replay of the conference call will be available starting at 12:00 pm ET on January 21, 2026, until February 21, 2026 [2] - The webcast replay can also be found on the company's investor relations website under Events & Presentations [2]