Citizens Financial EPS Rises 19% in Q2 2025

Core Insights - Citizens Financial Group, Inc. reported a 19% increase in earnings per share (EPS) to $0.92 for Q2 2025, driven by a 3.3% growth in net interest income (NII) and a 10% increase in fee income quarter-over-quarter [1][2] - The company executed $200 million in share repurchases and achieved record private bank loan growth of $1.2 billion, maintaining strong credit metrics while reaffirming its full-year and medium-term targets [2][3] Financial Performance - The private bank segment reached a quarterly high, adding $1.2 billion in loans, resulting in period-end balances of $4.9 billion and average deposits growing by $966 million, contributing $0.06 to EPS [3][4] - Net interest margin (NIM) expanded by five basis points to 2.95%, supported by lower funding costs and optimization in deposit pricing [8][10] Strategic Initiatives - The company launched a multiyear "reimagining the bank" initiative aimed at overhauling operating models and customer engagement through the adoption of AI and organizational redesign [5][6] - Successful execution of this initiative could significantly alter long-term expense trajectories and enhance the bank's competitive position in the digital transformation landscape [7] Guidance and Outlook - Management guided for a 3% to 4% increase in net interest income for Q3, with NIM expected to rise by approximately five basis points [11] - Full-year guidance for 2025 remains unchanged, with a projected ROTCE of 16%-18% and targeted NIM of 3.05%-3.10% for Q4 2025 [12]