10-QPeriod: Q1 FY2026

CITIZENS FINANCIAL GROUP INC/RI Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 4, 2026For Securities:CFGCFG-PHCFG-PECFG-PI

Summary

Citizens Financial Group, Inc. (CFG) reported a strong first quarter for 2026, with net income reaching $517 million, a significant increase from the prior year, translating to $1.13 in diluted earnings per share. This performance was driven by robust growth in net interest income, up 12% to $1.6 billion, reflecting an improved net interest margin of 3.14%. The bank also saw an 11% rise in noninterest income, largely fueled by strong capital markets and wealth management fees, indicating successful execution of strategic initiatives in these areas. Despite a modest 5% increase in noninterest expense, primarily due to investments in its Private Bank and Private Wealth divisions, the company improved its efficiency ratio to 63.6% and saw a notable increase in Return on Tangible Common Equity (ROTCE) to 12.2%. The company also completed the strategic acquisition of Matrix Capital Markets Group, Inc. to enhance its sector-focused advisory capabilities. Capital management remained a focus, with $300 million in share repurchases during the quarter, underscoring a commitment to shareholder returns.

Financial Highlights

36 data points
Beta

Revenue

$2.17B

Net Income

$517.00M

23.8% Net Margin

EPS (Diluted)

$1.13

Total Assets

$227.92B

Cash & Equivalents

$12.33B

Free Cash Flow

$237.00M

Financial Statements
Beta
Revenue$2.17B
Net Income$517.00M
EPS (Basic)$1.14
EPS (Diluted)$1.13
Shares Outstanding (Basic)425.34M
Shares Outstanding (Diluted)429.89M

Key Highlights

  • 1Net income increased to $517 million, with diluted EPS at $1.13, up from $0.77 in the prior year.
  • 2Net interest income grew by 12% to $1.6 billion, supported by a 25 basis point expansion in net interest margin to 3.14%.
  • 3Noninterest income rose 11% to $606 million, driven by strong performance in capital markets and wealth management fees.
  • 4Noninterest expense increased by 5% to $1.4 billion, largely attributed to investments in the Private Bank and Private Wealth build-out.
  • 5The efficiency ratio improved to 63.6% from 67.9% in the prior year.
  • 6Return on Tangible Common Equity (ROTCE) increased to 12.2% from 9.6% year-over-year.
  • 7Completed the acquisition of Matrix Capital Markets Group, Inc. to bolster advisory capabilities.

Frequently Asked Questions

The increase in net interest income was primarily driven by a higher net interest margin, which improved due to better funding costs. This was a result of the runoff of the auto loan portfolio, terminated swap impacts, and fixed-rate asset repricing benefits, partially offset by lower asset yields.

The increase in noninterest expense, particularly in salaries and employee benefits, is largely attributed to strategic hiring for the expansion of the Private Bank and Private Wealth divisions, as well as strong capital markets fee performance. The company aims to manage these investments while continuing to improve efficiency, as evidenced by the reduced efficiency ratio.

The provision for credit losses decreased slightly, reflecting the runoff of certain retail portfolios and improving credit trends. The allowance for credit losses (ACL) saw a modest increase, reflecting consideration for economic uncertainty and targeted risk concerns, partially offset by an improved loan mix and lower general office reserves. The company's economic forecast for ACL calculations anticipates a mild recession, with peak unemployment projected at approximately 5.3%.

Citizens Financial Group, Inc. continues to focus on returning capital to shareholders. During the quarter, the company repurchased $300 million of its common stock, with $1.0 billion in repurchase capacity remaining. Dividend payments are also a key component of its capital return strategy, subject to Board approval and market conditions.