10-QPeriod: Q2 FY2025

CITIZENS FINANCIAL GROUP INC/RI Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 4, 2025For Securities:CFGCFG-PHCFG-PECFG-PI

Summary

Citizens Financial Group, Inc. (CFG) reported a net income of $436 million for the three months ended June 30, 2025, a 11% increase compared to the prior year period. Diluted earnings per share rose to $0.92, up from $0.78. This improved profitability was driven by a 2% increase in net interest income, primarily due to a higher net interest margin, and a 8% rise in noninterest income, led by strong performance in mortgage banking, wealth management, and service charges. Total assets stood at $218.3 billion as of June 30, 2025. The company successfully executed a $1.9 billion sale of non-core education loans and increased its share repurchase program capacity to $1.5 billion, returning capital to shareholders. Management highlighted improved efficiency ratios and a solid return on tangible common equity (ROTCE) of 11.05% for the quarter. The company also issued $400 million of Series I Preferred Stock. Despite some macroeconomic uncertainties noted in the report, CFG demonstrated resilience and strategic execution.

Financial Highlights

36 data points
Beta

Revenue

$2.04B

Net Income

$436.00M

21.4% Net Margin

EPS (Diluted)

$0.92

Total Assets

$218.31B

Cash & Equivalents

$8.55B

Free Cash Flow

$886.00M

Financial Statements
Beta
Revenue$2.04B
Net Income$436.00M
EPS (Basic)$0.93
EPS (Diluted)$0.92
Shares Outstanding (Basic)433.64M
Shares Outstanding (Diluted)436.54M

Key Highlights

  • 1Net income of $436 million for Q2 2025 increased by 11% year-over-year, with diluted EPS rising to $0.92.
  • 2Net interest income increased by 2% to $1.4 billion, driven by an improved net interest margin.
  • 3Noninterest income grew by 8% to $600 million, boosted by mortgage banking, wealth, and service charge fees.
  • 4Completed a $1.9 billion sale of Non-Core education loans and increased the share repurchase program authorization to $1.5 billion.
  • 5Efficiency ratio improved to 64.76% for the quarter, and ROTCE increased to 11.05%.
  • 6Tangible book value per common share increased by 9% to $35.23.
  • 7Issued $400 million of Series I Preferred Stock and plans to redeem Series F Preferred Stock.

Frequently Asked Questions

The increase in net income was primarily driven by a 2% rise in net interest income, attributable to a higher net interest margin, and an 8% increase in noninterest income, notably from mortgage banking, wealth management, and service charge fees. These revenue improvements, combined with disciplined expense management and a lower provision for credit losses, contributed to the improved bottom line.

Citizens Financial Group announced an increase in its common share repurchase program capacity to $1.5 billion. During the quarter, the company repurchased $400 million of its outstanding common stock and declared common stock dividends of $0.42 per share for the quarter.

The company noted that its Allowance for Credit Losses (ACL) economic forecast anticipates a shallow economic contraction. While more severe scenarios are modeled for specific portfolios like Commercial Real Estate (CRE), particularly the general office segment, overall nonaccrual loans and leases decreased by 8% compared to the prior year. The sale of non-core education loans and a focus on improving loan mix also contributed to a more favorable credit outlook.

Noninterest expense increased slightly by 1% for the quarter, driven primarily by higher salaries and employee benefits related to hiring for the Private Bank and Private Wealth build-out. This increase was partially offset by efficiency efforts and lower FDIC deposit insurance costs.