01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Citizens Financial Group, Inc. (CFG) reported strong financial performance for the fiscal year ended December 31, 2025.
Net income increased by 21.3% to $1.8 billiona, translating to diluted earnings per share of $3.86, up from $3.03 in the prior year. This growth was driven by a 4% increase in net interest income, reaching $5.9 billion, primarily due to a higher net interest margin of 2.97%, benefiting from lower funding costs and asset repricing. Noninterest income also saw a significant rise of 10% to $2.4 billion, fueled by robust growth in wealth management and capital markets fees.
The company continued to execute on its strategic objectives, including growing high-quality deposits and deepening customer relationships, while also focusing on optimizing its balance sheet. Key initiatives in 2025 included the sale of $1.9 billionb in education loans and a $1.5 billion increase in its common share repurchase program, demonstrating a commitment to capital return to shareholders. Management expressed confidence in the company's strategic positioning and financial health, with tangible book value per common share increasing by 18%.
02—Key points
Key Highlights
- Net income rose 21.3% to $1.8 billion, with diluted EPS increasing to $3.86.
- Net interest income grew 4% to $5.9 billion, driven by an improved net interest margin of 2.97% due to lower funding costs.
- Noninterest income increased 10% to $2.4 billion, boosted by strong performance in wealth and capital markets fees.
- The company sold $1.9 billion in education loans and repurchased $600 million of its common stock in 2025.
- Tangible book value per common share increased by 18% to $38.07.
- The efficiency ratio improved to 64.40% from 67.03% in the prior year.
- Return on Tangible Common Equity (ROTCE) increased to 11.20% from 9.81%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $8.25B$7.81B | +5.6% |
| Net Income | $1.83B$1.51B | +21.3% |
| EPS (Basic) | $3.90$3.05 | +27.9% |
| EPS (Diluted) | $3.86$3.03 | +27.4% |
| Shares Outstanding (Basic) | 433.17M450.68M | −3.9% |
| Shares Outstanding (Diluted) | 436.89M453.51M | −3.7% |
05—Questions
Frequently Asked Questions
What drove the increase in net income for CFG in 2025?
The increase in net income was primarily driven by a 4% rise in net interest income to $5.9 billion, due to an improved net interest margin resulting from lower funding costs and asset repricing benefits. Additionally, noninterest income grew by 10% to $2.4 billion, supported by strong performance in wealth management and capital markets fees.
How is CFG managing its capital and returning value to shareholders?
CFG increased its common share repurchase program capacity by $1.5 billion and repurchased $600 million of its common stock in 2025. The company also declared a quarterly common stock dividend of $0.46 per share, representing a 9.5% increase from the prior quarter, and issued $400 million of Series I Preferred Stock.
What significant strategic transactions did CFG undertake in 2025?
In the first quarter of 2025, CFG entered into an agreement to sell $1.9 billion of education loans. The company also increased its share repurchase authorization and redeemed its Series F Preferred Stock, replacing it with a new Series I Preferred Stock issuance.
What is CFG's outlook regarding economic conditions and credit quality?
CFG's ACL economic forecast for the next two years anticipates a shallow, two-quarter contraction, with peak unemployment projected at 5.3% and a start-to-trough real GDP decline of 0.5%. More severe scenarios are applied to the CRE portfolio, particularly for general office properties. The company noted a decrease in nonaccrual loans and leases by 10% compared to the prior year, reflecting a sale of education loans and continued runoff of the auto portfolio.
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