Citizens Financial (US:CFG) CNBC Television·2025-10-15 15:56Financial Performance - Citizens Financials achieved a top and bottom line beat, with net loan growth across consumer, private bank, and commercial markets [1] - The private bank is on track to be 7% accretive to the bottom line and is delivering over a 20% return on equity (ROE) [3] - Citizens Financials aims to achieve a 16% to 18% return on tangible common equity, up from approximately 12% currently [7][8] - Expansion of the net interest margin is expected to contribute 300 to 400 basis points to the return on tangible common equity [8] Strategic Initiatives & Market Positioning - Citizens Financials launched a private bank initiative, hiring 150 people after First Republic failed in mid-2023, and has since grown the headcount to approximately 500 [3][4] - The company is expanding its private bank into Southern California, hiring private wealth teams [4] - Citizens Financials aims to occupy the space previously dominated by First Republic, offering a 2.0 version that is expected to be even better [4] - Citizens Financials believes its fully built-out commercial bank with 4,500 middle market relationships provides a competitive advantage by offering total solutions across business and personal needs [6] - The company is seeing increased activity levels in the commercial bank, with Q3 marking the second-highest capital markets revenue quarter since Q4 2021 [9] Mergers & Acquisitions - Citizens Financials does not feel compelled to merge, believing it has enough scale to be competitive and prefers organic growth [11][12] - Any potential acquisitions would have to meet a very high bar, given the amount of organic growth opportunity [12]