10-KPeriod: FY2025

CITIZENS FINANCIAL GROUP INC/RI Annual Report, Year Ended Dec 31, 2025

Filed February 12, 2026For Securities:CFGCFG-PHCFG-PECFG-PI

Summary

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 billion, 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 billion 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%.

Financial Highlights

38 data points
Beta

Revenue

$8.25B

Net Income

$1.83B

22.2% Net Margin

EPS (Diluted)

$3.86

Total Assets

$226.35B

Cash & Equivalents

$12.73B

Free Cash Flow

$2.21B

Financial Statements
Beta
Revenue$8.25B
Net Income$1.83B
EPS (Basic)$3.90
EPS (Diluted)$3.86
Shares Outstanding (Basic)433.17M
Shares Outstanding (Diluted)436.89M

Key Highlights

  • 1Net income rose 21.3% to $1.8 billion, with diluted EPS increasing to $3.86.
  • 2Net interest income grew 4% to $5.9 billion, driven by an improved net interest margin of 2.97% due to lower funding costs.
  • 3Noninterest income increased 10% to $2.4 billion, boosted by strong performance in wealth and capital markets fees.
  • 4The company sold $1.9 billion in education loans and repurchased $600 million of its common stock in 2025.
  • 5Tangible book value per common share increased by 18% to $38.07.
  • 6The efficiency ratio improved to 64.40% from 67.03% in the prior year.
  • 7Return on Tangible Common Equity (ROTCE) increased to 11.20% from 9.81%.

Frequently Asked Questions

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.

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.

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.

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.