Why Is Citizens Financial Group (CFG) Up 6.9% Since Last Earnings Report?

Core Viewpoint - Citizens Financial Group (CFG) has shown a positive performance with a 6.9% increase in shares since the last earnings report, outperforming the S&P 500 [1][2]. Earnings Performance - For Q3 2025, Citizens Financial reported adjusted earnings per share (EPS) of $1.05, exceeding the Zacks Consensus Estimate of $1.02, marking a 32.9% increase year-over-year [3]. - Net income on a GAAP basis was $494 million, reflecting a 29% rise from the previous year [4]. - Total revenues reached $2.12 billion, surpassing the Zacks Consensus Estimate by 0.9% and increasing 11% year-over-year [5]. Income and Expenses - Net interest income (NII) grew by 9% year-over-year to $1.49 billion, driven by an improved net interest margin [5]. - The net interest margin expanded by 23 basis points year-over-year to 3% due to various factors including fixed-rate asset repricing [6]. - Non-interest income increased by 18% year-over-year to $630 million, primarily from higher capital markets and wealth fees [6]. - Non-interest expenses rose by 6% year-over-year to $1.33 billion, mainly due to higher salaries and technology investments [7]. Loan and Deposit Growth - As of September 30, 2025, total loans and leases were $140.9 billion, up 1% from the prior quarter, while total deposits increased by 3% to $180 billion [8]. Credit Quality - The provision for credit losses was $154 million, down 10% from the previous year, with net charge-offs decreasing by 16% to $162 million [9]. Capital Position - The tier 1 leverage ratio remained at 9.4%, while the common equity tier 1 capital ratio increased to 10.7% from 10.6% [10]. Future Outlook - For Q4 2025, management anticipates NII to be between 2.5-3%, with non-interest income expected to remain stable at $630 million [11]. - The CET1 ratio is projected to be stable at 10.7%, with a share repurchase plan of $125 million in Q4 [12]. - For 2025, NII is expected to rise by 3-5% from $5.6 billion in 2024, while non-interest income is projected to increase by 8-10% from $2.6 billion in 2024 [13]. Medium-Term Targets - The company aims for a CET1 ratio of 10.0-10.5% and a net interest margin of 3.25-3.50% [15]. - A return on average tangible common shareholders' equity is expected to be around 16-18% [16]. Estimate Trends - There has been an upward trend in estimates revisions for Citizens Financial Group over the past month [17][20].