How did Citizens perform in the third quarter of 2025?

Citizens reported net income of $494 million and diluted EPS of $1.05, compared with $0.92 in the prior quarter and $0.77 a year earlier. Revenue rose 4% sequentially to $2.12 billion, and pre-provision profit increased 9% to $783 million. There were no notable items in 3Q25 or 2Q25, so reported and underlying results were the same for the quarter.

What is management's outlook for the fourth quarter of 2025?

Management expects net interest income to rise 2.5% to 3% from $1.49 billion, with NIM up about 5 bps and earning assets up slightly. Noninterest income is expected to be stable, noninterest expense stable to up slightly, and net charge-offs to continue trending favorably in the low 40 bps range. The effective tax rate is projected at about 22.5%.

Are the capital markets fee gains sustainable?

Capital markets fees jumped to $166 million, but part of the increase reflects M&A deals that slipped from the second quarter and a one-time pickup in activity. Management cited strong pipelines across M&A, debt and equity underwriting, and loan syndications, which supports continued growth. However, investors should view the 3Q25 level as elevated relative to the prior quarter and not necessarily a run rate.

What are the medium-term financial targets?

Management targets a net interest margin of about 3.25% to 3.50% over the medium term, up from 3.00% in 3Q25, and ROTCE of roughly 16% to 18%. The NIM path is supported by swap maturities, Non-Core runoff, and fixed-rate asset repricing. The Private Bank is expected to earn a 20% to 25% return on equity in 2025 and beyond. These are forward-looking goals that depend on rate and execution assumptions.

How strong is Citizens' capital and liquidity position?

The CET1 ratio was 10.7%, up from 10.6% in the prior quarter, and the total capital ratio was 13.9%. Adjusted for the removal of the AOCI opt-out, CET1 was 9.4%, a more conservative measure of capital. The spot loan-to-deposit ratio was 78.3%, and pro forma LCR was well above the 100% requirement for Category I banks. Management expects an accretion of roughly $350 million in unrealized securities and pension losses by year-end 2027, which would add about 21 bps to adjusted CET1.

CFG 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 15, 2025. Cited figures are marked; the original filing is the authoritative source.

Citizens Financial Group (CFG) reported third quarter 2025 net income of $494 million^a and diluted EPS of $1.05, up from $0.92 in the second quarter and $0.77 in the year-ago quarter (underlying EPS of $0.79 in 3Q24).

Pre-provision profit rose 9% quarter over quarter to $783 million^b, with positive operating leverage of 3%. Net interest income grew 3.5% sequentially to $1.49 billion as net interest margin expanded 5 basis points to 3.00%, and fee income rose 5% to $630 million, led by a 58% sequential jump in capital markets fees to $166 million. Credit trends improved, with net charge-offs falling to 0.46% of average loans from 0.48% and the provision declining to $154 million.

Tangible book value per share rose 4% to $36.73^c, and CET1 was 10.7%. Management guided to a 2.5% to 3% rise in 4Q25 net interest income, a stable to slightly higher expense base, and net charge-offs in the low 40 basis point range. The board raised the quarterly common dividend 9.5% to $0.46 per share.

The company also reiterated a medium-term NIM target of 3.25%^d to 3.50% and a medium-term ROTCE target of roughly 16% to 18%, supported by the Private Bank build-out, Non-Core runoff, and the multi-year 'Reimagine the Bank' transformation program. Investors should note that the quarter benefited from a cyclical rebound in capital markets and from M&A fees that management said were partly pulled forward from the second quarter, so fee growth may not be fully repeatable.

Deposit growth was driven by the Private Bank and Commercial, while higher-cost Treasury brokered deposits continued to decline. The company also reported that CET1 adjusted for the removal of the AOCI opt-out was 9.4%, which is a relevant reference point for capital strength.

02—Key points

Key Highlights

Diluted EPS of $1.05 versus $0.92 in 2Q25 and $0.77 in 3Q24 (underlying $0.79); ROTCE improved to 11.7%.
Pre-provision profit of $783 million, up 9% QoQ and 22% YoY, with positive operating leverage of 3% QoQ and efficiency ratio improved about 170 bps to 63.0%.
Net interest margin rose 5 bps to 3.00% and net interest income increased 3.5% QoQ to $1.49 billion, driven by Non-Core runoff and lower terminated swap drag.
Capital markets fees jumped 58% QoQ to $166 million, the strongest Capital Markets quarter since 4Q21; total noninterest income rose 5% to $630 million.
Credit improved: net charge-offs fell to 0.46% from 0.48%, provision dropped to $154 million, and the ACL ratio was 1.56% with nonaccrual loans down slightly to $1.52 billion.
Quarterly dividend raised 9.5% to $0.46 per share; $75 million of buybacks in the quarter, with about $125 million planned for 4Q25.
Period-end deposits grew 3% to $180.0 billion, led by the Private Bank (+$6.9 billion YoY), while CET1 stood at 10.7% and TBV per share rose 4% to $36.73.

03—Questions

Frequently Asked Questions

How did Citizens perform in the third quarter of 2025?
Citizens reported net income of $494 million and diluted EPS of $1.05, compared with $0.92 in the prior quarter and $0.77 a year earlier. Revenue rose 4% sequentially to $2.12 billion, and pre-provision profit increased 9% to $783 million. There were no notable items in 3Q25 or 2Q25, so reported and underlying results were the same for the quarter.
What is management's outlook for the fourth quarter of 2025?
Management expects net interest income to rise 2.5% to 3% from $1.49 billion, with NIM up about 5 bps and earning assets up slightly. Noninterest income is expected to be stable, noninterest expense stable to up slightly, and net charge-offs to continue trending favorably in the low 40 bps range. The effective tax rate is projected at about 22.5%.
Are the capital markets fee gains sustainable?
Capital markets fees jumped to $166 million, but part of the increase reflects M&A deals that slipped from the second quarter and a one-time pickup in activity. Management cited strong pipelines across M&A, debt and equity underwriting, and loan syndications, which supports continued growth. However, investors should view the 3Q25 level as elevated relative to the prior quarter and not necessarily a run rate.
What are the medium-term financial targets?
Management targets a net interest margin of about 3.25% to 3.50% over the medium term, up from 3.00% in 3Q25, and ROTCE of roughly 16% to 18%. The NIM path is supported by swap maturities, Non-Core runoff, and fixed-rate asset repricing. The Private Bank is expected to earn a 20% to 25% return on equity in 2025 and beyond. These are forward-looking goals that depend on rate and execution assumptions.
How strong is Citizens' capital and liquidity position?
The CET1 ratio was 10.7%, up from 10.6% in the prior quarter, and the total capital ratio was 13.9%. Adjusted for the removal of the AOCI opt-out, CET1 was 9.4%, a more conservative measure of capital. The spot loan-to-deposit ratio was 78.3%, and pro forma LCR was well above the 100% requirement for Category I banks. Management expects an accretion of roughly $350 million in unrealized securities and pension losses by year-end 2027, which would add about 21 bps to adjusted CET1.

04—Continue

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