Financial Data and Key Metrics Changes - The company reported EPS growth of $0.13 sequentially, or 14% [3] - Net interest income (NII) grew by 3.5% sequentially, driven by a net interest margin (NIM) expansion of 5 basis points [3][8] - The Common Equity Tier 1 (CET1) ratio increased by 10 basis points to 10.7% [3][16] - The company achieved a positive operating leverage of 3% with expense growth held to just 1% [3][8] Business Line Data and Key Metrics Changes - The private bank had significant deposit growth, with spot deposits increasing by $3.8 billion to $12.5 billion [4][17] - The private bank contributed $0.08 to EPS this quarter, up from $0.06 in the prior quarter [9] - Capital markets delivered a record third quarter, marking the second-best performance ever [8][68] - Fee income increased by 5% sequentially and 18% year-over-year, driven by strong capital markets activity [10] Market Data and Key Metrics Changes - Average loan volume was up 1%, contributing to the 3.5% NII growth [8] - Non-interest-bearing deposits increased by about $1.5 billion or 4%, maintaining a steady mix at 22% of the total deposits [14] - The company maintained a stable interest-bearing deposit cost, translating to a cumulative down beta of 53% [14] Company Strategy and Development Direction - The company is focused on executing strategic initiatives, including the buildout of the private bank and private wealth platform [4][16] - The "Reimagine the Bank" initiative aims to improve customer service and operational efficiency, with expected net benefits starting in 2027 [5][19] - The company aims to build a premier bank-owned private bank and private wealth franchise, with a target of achieving a 16% to 18% return on tangible common equity (ROTCE) over time [21][22] Management's Comments on Operating Environment and Future Outlook - The macro environment remains positive despite uncertainties in fiscal and monetary policies [6] - Management expects continued attractive earnings growth in Q4, driven by positive operating leverage and favorable credit trends [6][21] - The company is well-positioned to sustain momentum into 2026, with a focus on executing its strategic agenda [6][22] Other Important Information - The Board of Directors declared a quarterly dividend of $0.46, reflecting a 9.5% increase [7] - The company executed $75 million in stock buybacks during the quarter [8][16] - The private bank achieved cumulative breakeven, covering investments made since its launch in 2023 [9] Q&A Session Summary Question: Expected margin trajectory and outlook - Management forecasts a margin of $305 for Q4, with expectations to reach the medium-term target of $325 to $350 [25][26] - Factors affecting the margin include time-based benefits and commercial loan pricing spreads [28][29] Question: Role of M&A in the company's strategy - The company is focused on organic growth through the private bank and is open to M&A opportunities if they meet high criteria [30][32] Question: Private bank outlook and AUM targets - Management is confident in achieving deposit growth but acknowledges that AUM targets may depend on the timing of liftouts [38][41] Question: Capital markets outlook - The company sees strong pipelines in capital markets, with diverse flows across M&A, bond, and equity pipelines [68][70] Question: Credit exposure and risks - The company maintains high credit quality in its private credit pools, with no losses reported related to recent bankruptcies [72][74] Question: Use of capital and dividend policy - The company plans to facilitate loan growth, continue dividend increases, and may repurchase shares with excess capital [82]

Financial Data and Key Metrics Changes - The company reported EPS growth of $0.13 sequentially, representing a 14% increase [5] - Net Interest Income (NII) grew by 3.5% sequentially, driven by a 5 basis points expansion in Net Interest Margin (NIM) [6] - The Common Equity Tier 1 (CET1) ratio increased by 10 basis points to 10.7% [6][14] - The company achieved a positive operating leverage of 3% with expense growth limited to just 1% [6][14] Business Line Data and Key Metrics Changes - The Private Bank saw a significant deposit growth of $3.8 billion, reaching $12.5 billion, exceeding the year-end target of $12 billion [7][25] - The Private Bank contributed $0.08 to EPS this quarter, up from $0.06 in the prior quarter [14] - Capital markets delivered a record performance, marking the second-best quarterly results ever [13][17] Market Data and Key Metrics Changes - Average loan volume increased by 1%, contributing to the 3.5% NII growth [13] - Non-interest bearing deposits increased by $1.5 billion or 4%, maintaining a steady mix at 22% of total deposits [21] - The company maintained a stable retail deposit base, which constitutes 66% of total deposits, compared to a peer average of about 56% [21] Company Strategy and Development Direction - The company is focused on executing its strategic initiatives, particularly in the Private Bank and Private Wealth sectors, aiming for superior organic EPS growth relative to peers [11][24] - The "Reimagine the Bank" initiative is underway, aimed at improving customer service and operational efficiency, with expected net benefits starting in 2027 [8][28] - The company plans to maintain a high level of profitability with a Return on Equity (ROE) target of 20% to 25% in 2025 and beyond [26][57] Management's Comments on Operating Environment and Future Outlook - The macro environment remains positive despite uncertainties in fiscal and monetary policies, with a strong focus on execution [12] - Management expressed confidence in sustaining momentum into 2026, with expectations of continued attractive earnings growth [11][30] - Credit trends are favorable, with net charge-offs decreasing and a robust credit reserve maintained [22][85] Other Important Information - The company returned a total of $259 million to shareholders in Q3, including $184 million in common dividends and $75 million in share repurchases [24] - The company is planning to refresh its leadership team, with a new CFO set to join soon [9][10] Q&A Session Summary Question: Margin trajectory and expectations - Management expects NIM to reach around 3.05% in Q4, influenced by various factors including asset sensitivity and market conditions [34][35] Question: M&A role in the company's future - The company remains focused on organic growth through its Private Bank and is open to M&A opportunities but maintains a high bar for such actions [40][42] Question: Private Bank outlook and AUM targets - Management is confident in achieving deposit growth but acknowledges that AUM targets may depend on the timing of lift-outs [46][50] Question: Capital markets outlook - The company sees strong pipelines across various capital market segments, including M&A and syndicated lending, with a positive outlook for Q4 and beyond [79][81] Question: Credit exposure and risks - The company maintains a high-quality credit portfolio with strong protections in place, expressing confidence in its private credit exposure [83][85] Question: Expense growth and operating leverage - Management anticipates continued positive operating leverage, driven by NIM expansion and disciplined expense management [100][102]

Financial Performance - Net income available to common stockholders was $457 million, a 14% increase QoQ and a 33% increase YoY[8] - Diluted earnings per share (EPS) reached $1.05, up 14% QoQ and 36% YoY[8] - Pre-provision profit (PPNR) increased by 9% QoQ and 20% YoY, reaching $783 million[8, 13] - Total revenue was $2.118 billion, up 4% QoQ and 11% YoY[8] - Net interest income (NII) was $1.488 billion, up 4% QoQ and 9% YoY[8] - Noninterest income was $630 million, up 5% QoQ and 18% YoY[8] Key Metrics - Net interest margin (NIM) increased by 5 bps QoQ to 3.00%[8] - Efficiency ratio improved by approximately 170 bps QoQ to 63.0%[8, 14] - Return on tangible common equity (ROTCE) was 11.7%, up 70 bps QoQ[8, 14] Balance Sheet and Capital - Average deposits increased by approximately $2 billion, or 1% QoQ, to $176 billion[8, 14] - Period-end loans increased by 1% QoQ[14] - Common Equity Tier 1 (CET1) ratio was 10.7%[14]

Core Insights - Citizens Financial Group (CFG) reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.79 per share a year ago, representing an earnings surprise of +2.94% [1] - The company posted revenues of $2.12 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.93%, and compared to year-ago revenues of $1.9 billion [2] - Citizens Financial Group shares have increased approximately 18.4% year-to-date, outperforming the S&P 500's gain of 13% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $2.14 billion, and for the current fiscal year, it is $3.81 on revenues of $8.21 billion [7] - The estimate revisions trend for Citizens Financial Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Northeast industry, to which Citizens Financial Group belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) This section overviews the company's 3Q25 financial performance, highlighting increased revenue, net income, and EPS, improved efficiency, and strong capital ratios [Selected Operating Data](index=3&type=section&id=Selected%20Operating%20Data) The company achieved significant 3Q25 growth in total revenue and net income, resulting in higher diluted EPS and increased book values Selected Operating Data (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :----------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total revenue (in millions USD) | $2,118 | $2,037 | $1,901 | $81 (4%) | $217 (11%) | | Noninterest expense (in millions USD) | 1,335 | 1,319 | 1,259 | 16 (1%) | 76 (6%) | | Net income (in millions USD) | 494 | 436 | 382 | 58 (13%) | 112 (29%) | | Diluted earnings per share (USD) | $1.05 | $0.92 | $0.77 | $0.13 (14%) | $0.28 (36%) | | Book value per common share (USD) | $54.97 | $53.43 | $51.25 | $1.54 (3%) | $3.72 (7%) | | Tangible book value per common share (USD) | $36.73 | $35.23 | $33.54 | $1.50 (4%) | $3.19 (10%) | [Financial Ratios](index=4&type=section&id=Financial%20Ratios) Key financial ratios improved in 3Q25, with increased net interest margin and returns on equity, alongside a lower efficiency ratio Financial Ratios (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 (bps) | 3Q25 Change vs 3Q24 (bps) | | :-------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest margin (FTE) | 3.00% | 2.95% | 2.77% | 5 bps | 23 bps | | Return on average common equity | 7.77% | 7.18% | 6.12% | 59 bps | 165 bps | | Return on average tangible common equity | 11.75% | 11.05% | 9.45% | 70 bps | 230 bps | | Efficiency ratio | 63.03% | 64.76% | 66.23% | (173) bps | (320) bps | [Capital Ratios - Period-End](index=4&type=section&id=Capital%20Ratios%20-%20Period-End) The company maintained stable and strong capital ratios at 3Q25 period-end, with CET1, Tier 1, and Total Capital ratios consistent Capital Ratios (Period-End 3Q25) | Metric | 3Q25 | | :------------------ | :----- | | CET1 capital ratio | 10.7% | | Tier 1 capital ratio | 11.9% | | Total capital ratio | 13.9% | | Tier 1 leverage ratio | 9.4% | | Common equity ratio | 10.6% | | Tangible common equity ratio | 7.4% | [Selected Balance Sheet Data](index=4&type=section&id=Selected%20Balance%20Sheet%20Data) The loan-to-deposit ratio decreased QoQ and YoY, reflecting shifts in the balance of loans and deposits Loan-to-Deposit Ratio (Period-End) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 (bps) | 3Q25 Change vs 3Q24 (bps) | | :-------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Loan-to-deposit ratio | 78.26% | 79.56% | 80.85% | (130) bps | (259) bps | [Consolidated Statements of Operations (unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20(unaudited)) This section details 3Q25 and YTD revenues, expenses, and net income, showing growth in net interest and noninterest income, boosting net income [Quarterly Performance](index=5&type=section&id=Quarterly%20Performance) 3Q25 saw net interest income rise 4% QoQ and 9% YoY, with total noninterest income up 5% QoQ and 18% YoY, boosting net income Quarterly Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :-------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total interest income (in millions USD) | $2,458 | $2,407 | $2,539 | $51 (2%) | ($81) (3%) | | Total interest expense (in millions USD) | 970 | 970 | 1,170 | — (0%) | ($200) (17%) | | Net interest income (in millions USD) | 1,488 | 1,437 | 1,369 | 51 (4%) | 119 (9%) | | Total noninterest income (in millions USD) | 630 | 600 | 532 | 30 (5%) | 98 (18%) | | Total revenue (in millions USD) | 2,118 | 2,037 | 1,901 | 81 (4%) | 217 (11%) | | Provision for credit losses (in millions USD) | 154 | 164 | 172 | (10) (6%) | (18) (10%) | | Total noninterest expense (in millions USD) | 1,335 | 1,319 | 1,259 | 16 (1%) | 76 (6%) | | Net income (in millions USD) | $494 | $436 | $382 | $58 (13%) | $112 (29%) | [Year-to-Date Performance](index=5&type=section&id=Year-to-Date%20Performance) For 9M 2025, net interest income increased 2% YoY and noninterest income grew 11% YoY, leading to an 18% rise in net income Year-to-Date Performance (9M 2025 vs 9M 2024) | Metric | 9M 2025 | 9M 2024 | 9M 2025 Change vs 9M 2024 ($/%) | | :-------------------------------- | :------ | :------ | :------------------------------- | | Total interest income (in millions USD) | $7,217 | $7,724 | ($507) (7%) | | Total interest expense (in millions USD) | 2,901 | 3,503 | ($602) (17%) | | Net interest income (in millions USD) | 4,316 | 4,221 | 95 (2%) | | Total noninterest income (in millions USD) | 1,774 | 1,602 | 172 (11%) | | Total revenue (in millions USD) | 6,090 | 5,823 | 267 (5%) | | Provision for credit losses (in millions USD) | 471 | 525 | (54) (10%) | | Total noninterest expense (in millions USD) | 3,968 | 3,918 | 50 (1%) | | Net income (in millions USD) | $1,303 | $1,108 | $195 (18%) | [Consolidated Balance Sheets (unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(unaudited)) This section details the company's 3Q25 financial position, showing increased assets and deposits, decreased long-term borrowed funds, and shifts in funding [Period-End Balances](index=6&type=section&id=Period-End%20Balances) As of Sept 30, 2025, total assets and deposits increased QoQ and YoY, while long-term borrowed funds significantly decreased Consolidated Balance Sheet Highlights (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :-------------------------------- | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | **ASSETS** | | | | | | | Total Assets (in millions USD) | $222,747 | $218,310 | $219,706 | $4,437 (2%) | $3,041 (1%) | | Loans and leases (net) (in millions USD) | 138,898 | 137,296 | 139,553 | 1,602 (1%) | (655) (0%) | | Debt securities available for sale (in millions USD) | 35,419 | 34,658 | 32,835 | 761 (2%) | 2,584 (8%) | | **LIABILITIES** | | | | | | | Total Deposits (in millions USD) | 180,011 | 175,086 | 175,188 | 4,925 (3%) | 4,823 (3%) | | Noninterest-bearing deposits (in millions USD) | 39,472 | 38,001 | 35,978 | 1,471 (4%) | 3,494 (10%) | | Total long-term borrowed funds (in millions USD) | 10,441 | 12,526 | 13,944 | (2,085) (17%) | (3,503) (25%) | | Total Liabilities (in millions USD) | 196,918 | 193,076 | 194,774 | 3,842 (2%) | 2,144 (1%) | | **STOCKHOLDERS' EQUITY** | | | | | | | Total Stockholders' Equity (in millions USD) | 25,829 | 25,234 | 24,932 | 595 (2%) | 897 (4%) | | Total tangible common equity (in millions USD) | $15,848 | $15,246 | $14,931 | $602 (4%) | $917 (6%) | [Loans and Deposits](index=7&type=section&id=Loans%20and%20Deposits) This section details period-end loan and deposit portfolios, showing growth in commercial and residential loans, declines in auto and education loans, and overall deposit increases [Loans and Leases Breakdown](index=7&type=section&id=Loans%20and%20Leases%20Breakdown) Total loans and leases increased 1% QoQ but decreased 1% YoY, with commercial and industrial loans growing, while automobile loans declined significantly Loans and Leases (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Loan Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Commercial and industrial (in millions USD) | $46,953 | $45,412 | $43,825 | $1,541 (3%) | $3,128 (7%) | | Commercial real estate (in millions USD) | 25,540 | 26,230 | 27,983 | (690) (3%) | (2,443) (9%) | | Total commercial (in millions USD) | 72,493 | 71,642 | 71,808 | 851 (1%) | 685 (1%) | | Residential mortgages (in millions USD) | 34,477 | 33,823 | 32,379 | 654 (2%) | 2,098 (6%) | | Home equity (in millions USD) | 18,415 | 17,711 | 15,992 | 704 (4%) | 2,423 (15%) | | Automobile (in millions USD) | 2,816 | 3,407 | 5,540 | (591) (17%) | (2,724) (49%) | | Education (in millions USD) | 8,556 | 8,550 | 11,118 | 6 (0%) | (2,562) (23%) | | Total loans and leases (in millions USD) | $140,870 | $139,304 | $141,632 | $1,566 (1%) | ($762) (1%) | [Deposits Breakdown](index=7&type=section&id=Deposits%20Breakdown) Total deposits increased 3% QoQ and YoY, driven by noninterest-bearing demand and money market deposits, while time deposits decreased Deposits (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Deposit Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Noninterest-bearing demand (in millions USD) | $39,472 | $38,001 | $35,978 | $1,471 (4%) | $3,494 (10%) | | Checking with interest (in millions USD) | 35,219 | 34,918 | 33,680 | 301 (1%) | 1,539 (5%) | | Savings (in millions USD) | 24,759 | 25,400 | 26,489 | (641) (3%) | (1,730) (7%) | | Money market (in millions USD) | 59,709 | 55,638 | 54,654 | 4,071 (7%) | 5,055 (9%) | | Time (in millions USD) | 20,852 | 21,129 | 24,387 | (277) (1%) | (3,535) (14%) | | Total deposits (in millions USD) | $180,011 | $175,086 | $175,188 | $4,925 (3%) | $4,823 (3%) | [Average Balance Sheets, Annualized Yields and Rates](index=8&type=section&id=Average%20Balance%20Sheets%2C%20Annualized%20Yields%20and%20Rates) This section analyzes average balances, yields, and rates, showing increased net interest margin and spread in 3Q25, reflecting effective asset-liability management [Quarterly Trends in Yields and Rates](index=8&type=section&id=Quarterly%20Trends%20in%20Yields%20and%20Rates) 3Q25 saw net interest margin (FTE) rise 5 bps QoQ and 23 bps YoY to **3.00%**, with improved interest rate spread, indicating better profitability Quarterly Trends (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 | 3Q25 Change vs 3Q24 | | :-------------------------------- | :----- | :----- | :----- | :------------------ | :------------------ | | Total interest-earning assets (Avg Bal, in millions USD) | $197,598 | $196,318 | $197,164 | $1,280 | $434 | | Total interest-earning assets (Rate) | 4.92% | 4.89% | 5.09% | 3 bps | (17) bps | | Total interest-bearing liabilities (Avg Bal, in millions USD) | $150,119 | $150,202 | $151,655 | ($83) | ($1,536) | | Total interest-bearing liabilities (Rate) | 2.56% | 2.59% | 3.07% | (3) bps | (51) bps | | Interest Rate Spread | 2.36% | 2.30% | 2.02% | 6 bps | 34 bps | | Net Interest Income (FTE, in millions USD) | $1,492 | $1,441 | $1,373 | $51 | $119 | | Net Interest Margin (FTE) | 3.00% | 2.95% | 2.77% | 5 bps | 23 bps | [Year-to-Date Trends in Yields and Rates](index=9&type=section&id=Year-to-Date%20Trends%20in%20Yields%20and%20Rates) For 9M 2025, net interest margin (FTE) increased 10 bps YoY to **2.95%**, with improved interest rate spread despite lower interest-earning assets Year-to-Date Trends (9M 2025 vs 9M 2024) | Metric | 9M 2025 | 9M 2024 | 9M 2025 Change vs 9M 2024 | | :-------------------------------- | :------ | :------ | :-------------------------- | | Total interest-earning assets (Avg Bal, in millions USD) | $196,334 | $198,561 | ($2,227) | | Total interest-earning assets (Rate) | 4.88% | 5.15% | (27) bps | | Total interest-bearing liabilities (Avg Bal, in millions USD) | $149,941 | $152,703 | ($2,762) | | Total interest-bearing liabilities (Rate) | 2.58% | 3.06% | (48) bps | | Interest Rate Spread | 2.30% | 2.09% | 21 bps | | Net Interest Income (FTE, in millions USD) | $4,328 | $4,234 | $94 | | Net Interest Margin (FTE) | 2.95% | 2.85% | 10 bps | [Mortgage Banking Fees](index=10&type=section&id=Mortgage%20Banking%20Fees) This section details mortgage banking fees, showing a QoQ decrease but YoY increase, driven by MSR valuation changes and higher residential originations [Mortgage Banking Fees Summary](index=10&type=section&id=Mortgage%20Banking%20Fees%20Summary) Total mortgage banking fees decreased 33% QoQ to **$49 million** in 3Q25, primarily due to a **92% drop in MSR valuation changes**, but increased 7% YoY Mortgage Banking Fees (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :-------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Production revenue (in millions USD) | $18 | $19 | $15 | ($1) (5%) | $3 (20%) | | Mortgage servicing revenue (in millions USD) | 29 | 28 | 33 | 1 (4%) | (4) (12%) | | MSR valuation changes, net of hedge impact (in millions USD) | 2 | 26 | (2) | (24) (92%) | 4 (NM) | | Total mortgage banking fees (in millions USD) | $49 | $73 | $46 | ($24) (33%) | $3 (7%) | [Residential Real Estate Originations](index=10&type=section&id=Residential%20Real%20Estate%20Originations) Residential real estate originations decreased 6% QoQ but increased 19% YoY in 3Q25, with YTD originations growing 34% Residential Real Estate Originations (9M 2025 vs 9M 2024) | Metric | 9M 2025 | 9M 2024 | 9M 2025 Change vs 9M 2024 ($/%) | | :------------------------ | :------ | :------ | :------------------------------- | | Total originations (in millions USD) | $10,879 | $8,097 | $2,782 (34%) | | Originated for sale (in millions USD) | 6,781 | 5,316 | 1,465 (28%) | | Originated for investment (in millions USD) | 4,098 | 2,781 | 1,317 (47%) | [Mortgage Servicing Information (UPB)](index=10&type=section&id=Mortgage%20Servicing%20Information%20(UPB)) Total mortgage servicing UPB increased slightly YoY, driven by owned loans serviced, offsetting a decrease in loans serviced for others Mortgage Servicing Information (UPB) (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :----------------------------- | | Loans serviced for others (in millions USD) | $95,244 | $96,120 | ($876) (1%) | | Owned loans serviced (in millions USD) | 34,760 | 32,655 | 2,105 (6%) | | Total (in millions USD) | $130,004 | $128,775 | $1,229 (1%) | [Segment Financial Highlights](index=11&type=section&id=Segment%20Financial%20Highlights) This section breaks down financial performance and key metrics across Consumer, Commercial, Non-Core, and Other segments, reflecting varied market conditions [Consumer Banking](index=11&type=section&id=Consumer%20Banking) Consumer Banking reported increased net income and total revenue QoQ and YoY, driven by net interest and noninterest income growth, improving efficiency Consumer Banking Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | $1,262 | $1,218 | $1,156 | $44 (4%) | $106 (9%) | | Noninterest income (in millions USD) | 311 | 329 | 285 | (18) (5%) | 26 (9%) | | Total revenue (in millions USD) | 1,573 | 1,547 | 1,441 | 26 (2%) | 132 (9%) | | Net income (loss) (in millions USD) | $383 | $376 | $327 | $7 (2%) | $56 (17%) | Consumer Banking Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $80,729 | $75,392 | $5,337 (7%) | | Total loans and leases (in millions USD) | 74,274 | 69,021 | 5,253 (8%) | | Deposits (in millions USD) | 128,547 | 121,899 | 6,648 (5%) | Consumer Banking Key Metrics (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 | | :------------------------ | :----- | :----- | :------------------ | | Net interest margin | 6.69% | 6.60% | 9 bps | | Efficiency ratio | 62.22% | 63.53% | (131) bps | [Commercial Banking](index=12&type=section&id=Commercial%20Banking) Commercial Banking saw QoQ net income and revenue increases from noninterest income, but YoY declines in net interest income and overall net income Commercial Banking Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | $448 | $439 | $478 | $9 (2%) | ($30) (6%) | | Noninterest income (in millions USD) | 286 | 232 | 207 | 54 (23%) | 79 (38%) | | Total revenue (in millions USD) | 734 | 671 | 685 | 63 (9%) | 49 (7%) | | Net income (loss) (in millions USD) | $248 | $206 | $231 | $42 (20%) | $17 (7%) | Commercial Banking Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $66,134 | $68,092 | ($1,958) (3%) | | Total loans and leases (in millions USD) | 62,905 | 64,974 | (2,069) (3%) | | Deposits (in millions USD) | 44,482 | 44,190 | 292 (1%) | Commercial Banking Key Metrics (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 | | :------------------------ | :----- | :----- | :------------------ | | Net interest margin | 2.78% | 2.90% | (12) bps | | Efficiency ratio | 45.15% | 43.84% | 131 bps | [Non-Core](index=13&type=section&id=Non-Core) The Non-Core segment's net loss decreased QoQ and YoY, driven by increased net interest income and lower noninterest expense, despite declining assets Non-Core Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | ($7) | ($5) | ($28) | ($2) (40%) | $21 (75%) | | Total revenue (in millions USD) | (3) | (2) | (28) | (1) (50%) | 25 (89%) | | Noninterest expense (in millions USD) | 12 | 15 | 23 | (3) (20%) | (11) (48%) | | Net income (loss) (in millions USD) | ($14) | ($14) | ($51) | $0 (0%) | $37 (73%) | Non-Core Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $4,000 | $8,389 | ($4,389) (52%) | | Total loans and leases (in millions USD) | 3,976 | 8,352 | (4,376) (52%) | [Other](index=14&type=section&id=Other) The 'Other' segment's net loss improved QoQ and YoY, primarily due to decreased noninterest expense and an improved provision for credit losses Other Segment Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | ($215) | ($215) | ($237) | $0 (0%) | $22 (9%) | | Total revenue (in millions USD) | (186) | (179) | (197) | (7) (4%) | 11 (6%) | | Noninterest expense (in millions USD) | 11 | 24 | 20 | (13) (54%) | (9) (45%) | | Provision (benefit) for credit losses (in millions USD) | (9) | (3) | (20) | (6) (200%) | 11 (55%) | | Net income (loss) (in millions USD) | ($123) | ($132) | ($125) | $9 (7%) | $2 (2%) | Other Segment Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $68,254 | $66,705 | $1,549 (2%) | | Deposits (in millions USD) | 2,928 | 7,962 | (5,034) (63%) | [Credit-Related Information](index=15&type=section&id=Credit-Related%20Information) This section overviews credit quality, showing decreasing nonaccrual loans and net charge-offs, indicating overall asset quality improvement [Nonaccrual loans and leases](index=15&type=section&id=Nonaccrual%20loans%20and%20leases) Total nonaccrual loans and leases decreased slightly QoQ and 10% YoY to **$1.518 billion**, driven by commercial real estate and retail reductions Nonaccrual Loans and Leases (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Commercial and industrial (in millions USD) | $230 | $233 | $219 | ($3) (1%) | $11 (5%) | | Commercial real estate (in millions USD) | 703 | 706 | 852 | (3) (0%) | (149) (17%) | | Total commercial (in millions USD) | 933 | 939 | 1,071 | (6) (1%) | (138) (13%) | | Total retail (in millions USD) | 585 | 585 | 616 | — (0%) | (31) (5%) | | Total nonaccrual loans and leases (in millions USD) | $1,518 | $1,524 | $1,687 | ($6) (0%) | ($169) (10%) | Asset Quality Ratios (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 | | :-------------------------------- | :------------ | :------------ | :---------------------- | | Allowance for loan and lease losses to loans and leases | 1.40% | 1.47% | (7) bps | | Nonaccrual loans and leases to loans and leases | 1.08% | 1.19% | (11) bps | [Loans and Leases 90 Days or More Past Due and Accruing](index=16&type=section&id=Loans%20and%20Leases%2090%20Days%20or%20More%20Past%20Due%20and%20Accruing) Loans and leases 90+ days past due decreased 16% QoQ and 4% YoY to **$162 million**, mainly due to an **88% QoQ reduction** in commercial real estate Loans and Leases 90 Days or More Past Due and Accruing (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Commercial and industrial (in millions USD) | $39 | $3 | $5 | $36 (NM) | $34 (NM) | | Commercial real estate (in millions USD) | 7 | 60 | 15 | (53) (88%) | (8) (53%) | | Total commercial (in millions USD) | 46 | 63 | 20 | (17) (27%) | 26 (130%) | | Residential mortgages (in millions USD) | 114 | 128 | 146 | (14) (11%) | (32) (22%) | | Total loans and leases (in millions USD) | $162 | $194 | $169 | ($32) (16%) | ($7) (4%) | [Charge-offs, Recoveries, and Related Ratios](index=17&type=section&id=Charge-offs%2C%20Recoveries%2C%20and%20Related%20Ratios) Total net charge-offs decreased 3% QoQ and 16% YoY to **$162 million**, driven by commercial and retail reductions, with an **8 bps YoY** drop in the overall rate Total Gross Charge-offs (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total commercial (in millions USD) | $91 | $93 | $106 | ($2) (2%) | ($15) (14%) | | Total retail (in millions USD) | 104 | 108 | 125 | (4) (4%) | (21) (17%) | | Total gross charge-offs (in millions USD) | $195 | $201 | $231 | ($6) (3%) | ($36) (16%) | Total Net Charge-offs (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total commercial (in millions USD) | $85 | $92 | $98 | ($7) (8%) | ($13) (13%) | | Total retail (in millions USD) | 77 | 75 | 94 | 2 (3%) | (17) (18%) | | Total net charge-offs (in millions USD) | $162 | $167 | $192 | ($5) (3%) | ($30) (16%) | Annualized Net Charge-off Rates (3Q25 vs 3Q24) | Category | 3Q25 | 3Q24 | Change (bps) | | :------------------------ | :----- | :----- | :----------- | | Commercial and industrial | 0.26% | 0.49% | (23) bps | | Commercial real estate | 0.85% | 0.62% | 23 bps | | Total commercial | 0.47% | 0.54% | (7) bps | | Automobile | 0.43% | 0.81% | (38) bps | | Education | 0.92% | 0.85% | 7 bps | | Other retail | 5.45% | 4.93% | 52 bps | | Total loans and leases | 0.46% | 0.54% | (8) bps | [Summary of Changes in the Components of the Allowance for Credit Losses](index=19&type=section&id=Summary%20of%20Changes%20in%20the%20Components%20of%20the%20Allowance%20for%20Credit%20Losses) Total allowance for credit losses decreased 0% QoQ and 4% YoY to **$2.201 billion**, driven by a reduction in allowance for loan and lease losses Allowance for Loan and Lease Losses (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :-------------------------------- | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Beginning balance (in millions USD) | $2,008 | $2,014 | $2,125 | ($6) (0%) | ($117) (6%) | | Total net charge-offs (in millions USD) | 162 | 167 | 192 | (5) (3%) | (30) (16%) | | Total provision for loan and lease losses (in millions USD) | 126 | 161 | 146 | (35) (22%) | (20) (14%) | | Ending balance (in millions USD) | $1,972 | $2,008 | $2,079 | ($36) (2%) | ($107) (5%) | Total Allowance for Credit Losses (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 ($/%) | | :-------------------------------- | :------------ | :------------ | :----------------------------- | | Ending balance (in millions USD) | $2,201 | $2,286 | ($85) (4%) | [Capital and Ratios](index=20&type=section&id=Capital%20and%20Ratios) This section details key capital ratios, including CET1, Tier 1, and Total Capital, showing strong and slightly increasing capital positions [Capital Ratios and Components](index=20&type=section&id=Capital%20Ratios%20and%20Components) As of Sept 30, 2025, CET1 capital ratio increased to **10.7%**, with Tier 1 and Total capital ratios remaining strong, indicating robust regulatory capital Capital Ratios (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 | Change vs Sept 30, 2024 | | :------------------------ | :------------ | :------------ | :------------ | :---------------------- | :---------------------- | | CET1 capital ratio | 10.7% | 10.6% | 10.6% | 0.1% | 0.1% | | Tier 1 capital ratio | 11.9% | 11.9% | 11.9% | 0.0% | 0.0% | | Total capital ratio | 13.9% | 13.8% | 13.9% | 0.1% | 0.0% | | Tier 1 leverage ratio | 9.4% | 9.4% | 9.4% | 0.0% | 0.0% | [Tangible Common Equity (Period-End)](index=20&type=section&id=Tangible%20Common%20Equity%20(Period-End)) Period-end tangible common equity increased 4% QoQ and 6% YoY to **$15.848 billion**, reflecting growth in common stockholders' equity Tangible Common Equity (Period-End) (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :----------------------------- | | Common stockholders' equity (in millions USD) | $23,718 | $22,820 | $898 (4%) | | Total tangible common equity (in millions USD) | $15,848 | $14,931 | $917 (6%) | [Non-GAAP Financial Measures and Reconciliations](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures, labeled 'Underlying,' to GAAP, providing additional insights into core operational trends [Non-GAAP Financial Measures Overview](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) The company uses 'Underlying' non-GAAP measures to exclude non-recurring items, aiding management's operational evaluation and investor insight - Non-GAAP financial measures, denoted as **'Underlying,'** exclude certain items not considered indicative of the company's ongoing financial performance. Management uses these measures to evaluate operating performance and make day-to-day operating decisions[27](index=27&type=chunk) - Investors are cautioned not to place undue reliance on non-GAAP financial measures and to consider them with the most directly comparable GAAP measures, as they have limitations as analytical tools and should not be considered in isolation[28](index=28&type=chunk) [Reconciliations of Key Non-GAAP Measures](index=22&type=section&id=Reconciliations%20of%20Key%20Non-GAAP%20Measures) This subsection provides detailed reconciliations for non-GAAP metrics like net income, efficiency ratio, and tangible book value, highlighting notable item impacts Reconciliation: Net Income, Underlying (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | Change ($/%) | | :-------------------------------- | :----- | :----- | :------------ | | Net income (GAAP, in millions USD) | $494 | $382 | $112 (29%) | | Add: Notable items, net of income tax benefit (in millions USD) | — | 10 | (10) (100%) | | Net income, Underlying (non-GAAP, in millions USD) | $494 | $392 | $102 (26%) | Reconciliation: Efficiency Ratio, Underlying (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | Change (bps) | | :-------------------------------- | :----- | :----- | :----------- | | Efficiency ratio (GAAP) | 63.03% | 66.23% | (320) bps | | Efficiency ratio, Underlying (non-GAAP) | 63.03% | 65.61% | (258) bps | Reconciliation: Tangible Book Value Per Common Share (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | Change ($/%) | | :-------------------------------- | :----- | :----- | :------------ | | Book value per common share (GAAP, USD) | $54.97 | $51.25 | $3.72 (7%) | | Tangible book value per common share (non-GAAP, USD) | $36.73 | $33.54 | $3.19 (10%) |

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Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score focuses on companies with strong financial health and growth potential [4] - Momentum Score identifies stocks benefiting from current price trends [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Citizens Financial Group - Citizens Financial Group, headquartered in Providence, RI, offers a range of banking products and services [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - Citizens Financial has a Value Style Score of B, supported by a forward P/E ratio of 13.19, making it attractive to value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 at $3.81 per share, reflecting a +2.4% average earnings surprise [12]

Earnings Report - Citizens Financial Group, Inc. is set to release its third-quarter earnings results on October 15, with analysts expecting earnings of $1.03 per share, an increase from 79 cents per share in the same period last year [1] - The company projects quarterly revenue of $2.1 billion, compared to $1.9 billion a year earlier [1] Recent Performance - On July 17, Citizens Financial reported better-than-expected second-quarter financial results, leading to a 2% increase in share price, closing at $50.25 [2] Analyst Ratings - B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $52 to $65 [4] - UBS maintained a Buy rating and increased the price target from $57 to $62 [4] - Evercore ISI Group maintained an Outperform rating and raised the price target from $57 to $61 [4] - Morgan Stanley upgraded the stock from Equal-Weight to Overweight, increasing the price target from $53 to $71 [4] - Citigroup maintained a Buy rating and raised the price target from $60 to $65 [4]

Core Insights - Citizens Financial Group, Inc. is set to release its third-quarter earnings results on October 15, with analysts expecting earnings of $1.03 per share, an increase from $0.79 per share in the same period last year [1] - The company projects quarterly revenue of $2.1 billion, up from $1.9 billion a year earlier [1] Recent Performance - On July 17, Citizens Financial reported better-than-expected second-quarter results, leading to a 2% increase in share price, closing at $50.25 [2] Analyst Ratings - B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $52 to $65 [4] - UBS maintained a Buy rating and increased the price target from $57 to $62 [4] - Evercore ISI Group maintained an Outperform rating, raising the price target from $57 to $61 [4] - Morgan Stanley upgraded the stock from Equal-Weight to Overweight, increasing the price target from $53 to $71 [4] - Citigroup maintained a Buy rating and raised the price target from $60 to $65 [4]

Core Insights - Analysts expect Citizens Financial Group (CFG) to report quarterly earnings of $1.02 per share, reflecting a year-over-year increase of 29.1% and revenues of $2.1 billion, up 10.2% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised down by 0.9% in the last 30 days, indicating a reassessment by covering analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Key Financial Metrics - Analysts project an 'Efficiency Ratio' of 63.5%, improved from 66.2% in the same quarter last year [5] - The 'Book value per common share' is expected to reach $54.03, up from $51.25 a year ago [5] - The 'Return on average common equity' is estimated at 7.5%, compared to 6.1% in the same quarter last year [5] Charge-offs and Asset Balances - 'Net charge-offs' are expected to be $161.88 million, down from $192.00 million in the same quarter last year [6] - 'Average Balances - Total interest-earning assets' are projected at $197.27 billion, slightly up from $197.16 billion a year ago [6] Capital Ratios - 'Tangible book value per common share' is forecasted at $36.03, compared to $33.54 last year [7] - The 'Tier 1 Leverage Ratio' is expected to remain at 9.4%, consistent with the previous year [7] - The 'Tier 1 Capital Ratio' is projected at 11.9%, unchanged from the year-ago figure [7] Additional Metrics - Analysts forecast the 'Total Capital Ratio' to be 13.8%, slightly down from 13.9% last year [8] - 'Nonaccrual loans and leases' are estimated at $1.57 billion, down from $1.69 billion a year ago [8] - The 'Common Equity Tier 1 Capital Ratio (CET1 Capital Ratio)' is expected to remain at 10.6%, consistent with the previous year [8] - 'Total Noninterest Income' is projected to reach $608.73 million, up from $532.00 million last year [9] Stock Performance - Over the past month, shares of Citizens Financial Group have returned +0.2%, compared to a +3.5% change in the Zacks S&P 500 composite [9]