Citizens Financial's Revenues Rise in 2025: Will Growth Continue?

Core Insights - Citizens Financial Group (CFG) achieved steady revenue growth in 2025, with total revenues reaching $8.25 billion, a 5.6% increase year over year, driven by higher net interest income (NII) and non-interest income [1][10] Revenue Growth - CFG's revenue growth was supported by an expansion in net interest margin (NIM), modest loan growth, and strength in fee-based businesses [1][8] - Over the five years ending in 2025, CFG's total revenues recorded a compound annual growth rate (CAGR) of 3.6%, with loans and leases and deposits growing at CAGRs of 3.1% and 4.5%, respectively [3] Net Interest Income and Margin - In 2025, CFG reported NII of $5.25 billion, reflecting a 3.9% year-over-year increase, while NIM expanded by 13 basis points to 2.98% [4][10] - The growth in NII was supported by modest growth in interest-earning assets, improving asset yields, and favorable asset repricing [4] Non-Interest Income - CFG's non-interest income rose nearly 10% year over year to $2.39 billion in 2025, driven by growth in capital markets activities, wealth management services, and other fee-based businesses [6][10] 2026 Growth Outlook - For 2026, CFG expects NII to increase by 10-12% from the $5.8 billion reported in 2025, with average loans projected to grow by 3-5% and non-interest income expected to rise by 6-8% [7][10] - The company's NIM is anticipated to progress toward 3.25% by the fourth quarter of 2026 [7] Industry Comparison - Other regional banks, such as BOK Financial and Fifth Third Bancorp, also reported revenue improvements in 2025, with BOK Financial's revenues at $2.17 billion (7% increase) and Fifth Third's at $9.04 billion (6% increase) [2]