Citizens Financial (US:CFG)2025-11-03 21:02Financial Performance - Net income for the three and nine months ended September 30, 2025, was $494 million and $1.3 billion, respectively, representing increases of $112 million and $195 million year-over-year [16]. - Noninterest income reached $630 million and $1.8 billion for the three and nine months ended September 30, 2025, reflecting increases of $98 million and $172 million year-over-year [16]. - Net interest income for the same periods was $1.5 billion and $4.3 billion, up $119 million and $95 million compared to 2024, driven by a higher net interest margin [16]. - The company reported net income available to common stockholders of $457 million for the three months ended September 30, 2025, compared to $344 million for the same period in 2024, marking a 33% increase [166]. - The net income for Consumer Banking was $383 million for the three months ended September 30, 2025, compared to $327 million in the same period of 2024 [71]. Expenses and Efficiency - Noninterest expense for the three and nine months ended September 30, 2025, was $1.3 billion and $4.0 billion, up $76 million and $50 million compared to the same periods in 2024 [23]. - Noninterest expense increased by $76 million, or 6%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to higher salaries and employee benefits [39]. - The efficiency ratio improved to 63.03% and 65.16% for the three and nine months ended September 30, 2025, compared to 66.23% and 67.28% for the same periods in 2024 [23]. Credit Quality - Provision expense decreased to $154 million and $471 million for the three and nine months ended September 30, 2025, down $18 million and $54 million year-over-year [23]. - The allowance for credit losses (ACL) decreased by $58 million to $2.201 billion, with a coverage ratio of 1.56% as of September 30, 2025, down from 1.62% at the end of 2024 [51]. - Nonaccrual loans and leases decreased by $146 million, or 9%, to $1.518 billion, with the nonaccrual ratio improving to 1.08% from 1.20% [52]. - The net charge-off ratio for total loans and leases was 0.46% for the three months ended September 30, 2025, down from 0.54% in the same period of 2024 [53]. Capital and Liquidity - Total assets reached $219,117 million, an increase of $539 million from the previous year, with stockholders' equity rising to $25,541 million [31]. - Total available liquidity was approximately $88.0 billion, consisting of $73.1 billion in contingent liquidity and $14.9 billion in available discount window capacity [118]. - Citizens Financial Group's total capital as of September 30, 2025, was $23.455 billion, compared to $23.232 billion on December 31, 2024 [151]. - The consolidated loan-to-deposit ratio, excluding loans held for sale, was 78.3%, with estimated insured/secured deposits comprising 64% of the consolidated deposit base of $180.0 billion [118]. Shareholder Returns - The company announced a quarterly common stock dividend of $0.46 per share, a 9.5% increase compared to the prior quarter [22]. - During the nine months ended September 30, 2025, the Parent Company declared dividends on common stock totaling $555 million, down from $581 million in the same period of 2024 [121]. - The company repurchased $75 million and $475 million of its outstanding common stock during the three and nine months ended September 30, 2025, respectively [19]. Loan and Deposit Trends - Total loans and leases decreased to $140,011 million, with net interest income of $1,897 million, reflecting a yield decrease of 15 basis points to 5.35% [31]. - Total deposits increased to $180,011 million as of September 30, 2025, up from $174,776 million at December 31, 2024, reflecting growth in the Private Bank [65]. - The average balance of commercial and industrial loans increased to $46,351 million with an income of $581 million, while the yield decreased by 4 basis points to 4.91% [31]. Market Risk and Regulatory Capital - The total market risk regulatory capital was $61 million, an increase from $53 million in 2024 [108]. - Citizens Financial Group's CET1 capital ratio was 10.7%, down from 10.8% on December 31, 2024, while CBNA's CET1 capital ratio increased to 12.4% from 12.3% [141]. - The company has opted out of including AOCI components in regulatory capital, which may change under future regulatory considerations [150]. Economic Outlook - The economic forecast indicates a shallow two-quarter contraction with peak unemployment projected at approximately 5.2% [156].