10-QPeriod: Q3 FY2025

CITIZENS FINANCIAL GROUP INC/RI Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 3, 2025For Securities:CFGCFG-PHCFG-PECFG-PI

Summary

Citizens Financial Group, Inc. (CFG) reported solid financial results for the nine months ended September 30, 2025. Net income increased to $1.3 billion, or $2.74 per diluted share, up from $1.1 billion, or $2.20 per diluted share, in the same period last year. This growth was primarily driven by an increase in net interest income, which rose to $4.3 billion, supported by a higher net interest margin of 2.95%. Noninterest income also showed robust growth, increasing by 11% to $1.8 billion, fueled by stronger performance in wealth management, mortgage banking, and capital markets fees. The company managed its expenses effectively, with noninterest expense increasing by a modest 1%, leading to an improved efficiency ratio of 65.16%. The company also demonstrated a commitment to shareholder returns through a common stock dividend increase and a significant expansion of its share repurchase program. Overall, CFG's financial performance indicates a positive trend, with improvements across key profitability and efficiency metrics.

Financial Highlights

36 data points
Beta

Revenue

$2.12B

Net Income

$494.00M

23.3% Net Margin

EPS (Diluted)

$1.05

Total Assets

$222.75B

Cash & Equivalents

$11.65B

Free Cash Flow

$1.70B

Financial Statements
Beta
Revenue$2.12B
Net Income$494.00M
EPS (Basic)$1.06
EPS (Diluted)$1.05
Shares Outstanding (Basic)431.37M
Shares Outstanding (Diluted)435.47M

Key Highlights

  • 1Net income grew to $1.3 billion for the first nine months of 2025, a significant increase from $1.1 billion in the prior year period.
  • 2Diluted earnings per share (EPS) increased to $2.74, up from $2.20 year-over-year.
  • 3Net interest income rose to $4.3 billion, driven by a higher net interest margin (NIM) of 2.95% (FTE basis).
  • 4Noninterest income increased by 11% to $1.8 billion, with notable growth in wealth, mortgage banking, and capital markets fees.
  • 5The efficiency ratio improved to 65.16% from 67.28% in the prior year period, indicating better cost management.
  • 6Tangible book value per common share increased by 14% to $36.73.
  • 7The company increased its quarterly common stock dividend to $0.46 per share and expanded its share repurchase program capacity to $1.5 billion.

Frequently Asked Questions

The increase in net income was primarily driven by higher net interest income, benefiting from improved net interest margin, and strong growth in noninterest income, particularly from wealth management, mortgage banking, and capital markets fees.

The company managed its expenses effectively, with noninterest expense increasing by only 1% year-over-year. This was achieved despite increased salaries and employee benefits related to strategic hiring, largely due to lower FDIC deposit insurance costs and other operating expense reductions, leading to an improved efficiency ratio.

The company reported a decrease in the allowance for credit losses by $58 million. Nonaccrual loans and leases decreased by 9% compared to the prior year-end, primarily driven by a decrease in commercial and retail segments. The net charge-off ratio also saw a slight decrease. The company's economic forecast for ACL considers potential economic contractions but overall, the credit quality indicators appear stable.

The company has actively managed its capital by increasing its share repurchase program capacity to $1.5 billion and increasing its quarterly common stock dividend. It also issued $400 million of Series I Preferred Stock and redeemed its Series F Preferred Stock.