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Citizens Financial Stock Reaches 52-Week High: Is It Worth Betting On?
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Key Takeaways
CFG stock reached a 52-week high of $50.77, up 18.8% over the past year.
Optimism grew after Powell's remarks signaled possible Fed rate cuts.
CFG expands in wealth management, boosts deposits, and grows fee-based revenues.
Citizens Financial Group (CFG - Free Report) shares touched a 52-week high of $50.77 in Friday’s trading session.
Over the past year, the stock has gained 18.8%, outperforming the industry, and its close peers, Regions Financial (RF - Free Report) and Fifth Third Bancorp (FITB - Free Report) .
One-Year Price Performance
Image Source: Zacks Investment Research
The recent rally in the CFG share price reflects investor optimism following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium. It was highlighted that a shifting balance of risks in inflation and employment may warrant a policy rate adjustment in September 2025. Thus, lower interest rates are expected to ease funding costs and support loan demand further, improving net interest income (NII) for banks like Citizens Financial, FITB and RF.
Other Factors Supporting CFG Momentum
Strategic Expansion in Wealth Management: Citizens Financial is executing a multi-pronged strategy to strengthen its presence in key markets and enhance its wealth management capabilities. In October 2023, the company launched Citizens Private Bank to serve high-net-worth clients, which became profitable by the fourth quarter of 2024 and raised $7 billion in deposits through the year.
The bank is also expanding its New York Metro franchise and deepening its middle-market coverage in Florida and California. These efforts are supported by the addition of coverage bankers and targeted investments in commercial banking infrastructure.
Meanwhile, CFG is also investing in its payments platform and reinforcing its commercial middle-market operations, which complement the success of its private banking business. These moves are expected to improve client acquisition and support long-term revenue growth.
Revenue Mix to Aid Organic Growth: CFG continues to demonstrate steady organic growth, supported by a balanced revenue mix. Over the past four years (2020–2024), total revenues grew at a compound annual growth rate (CAGR) of 3%, driven primarily by NII, which rose at a 5.3% CAGR. Non-interest income declined at a CAGR of 1.8% during the same period, but rebounded in the first half of 2025, offsetting a modest decline in NII. This recovery was led by strength in fee-based businesses such as capital markets, wealth management, and card services.
Management expects NII to grow 3–5% in 2025, supported by a projected net interest margin (NIM) of 3%, up from 2.85% in 2024. Modestly higher interest-earning assets and repricing initiatives are expected to contribute to this improvement.
Further, non-interest income is also anticipated to rise 8–10% in 2025, reflecting momentum in advisory and transaction-based services. The company’s Balance Sheet Optimization (BSO) plan, together with an anticipated Fed rate cut, is expected to support top-line growth in the coming period.
For 2025 and 2026, sales are expected to rise 5.1% and 8% year over year, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Stability in Loan and Deposit Base: CFG maintains a solid foundation in its loan and deposit base. From 2020 to 2024, loans and leases registered a CAGR of 3.1%, while its diversified deposits rose at 4.4% CAGR. In the first half of 2025, both metrics declined year over year, but the company continues to enhance its deposit-gathering capabilities. The acquisitions of HSBC branches and Investors Bancorp added low-cost deposits and expanded the branch network, supporting long-term funding stability.
Management remains focused on relationship-based lending and attractive risk-adjusted returns to support loan pipelines. As part of its BSO plan, CFG aims to reduce its non-core loan portfolio from $11.1 billion at 2023-end to $4.7 billion by the end of 2025.
Inorganic Growth and Franchise Expansion: The bank has actively pursued acquisitions to strengthen its geographic footprint and product capabilities. In 2022, the company acquired College Raptor Inc., DH Capital LLC, and 80 East Coast branches from HSBC, along with Investors Bancorp. This further added 234 branches and expanded its presence in New York City, Philadelphia Metro, and New Jersey.
The acquisitions have enhanced CFG’s balance sheet and created a solid foundation for revenue growth. They also improved fee-generation capabilities and broadened the bank’s reach across key markets.
Solid Liquidity Aid Distribution Strategy: CFG maintains a solid liquidity position, with $9.2 billion in available liquidity and $249 million in short-term debt as of June 30, 2025.
Given solid liquidity, the company rewards its shareholders handsomely. On June 12, 2025, the board approved an increase in the capacity of its common share repurchase program to $1.5 billion. As of June 30, 2025, $300 million in share authorization remained available under the program.
Apart from repurchase activity, the bank has been paying out its dividend consistently. The company has hiked its dividend twice in the last five years while having a 50% payout ratio. Further, its annual dividend yield stood at 3.31, surpassing the industry’s 2.69. Notably, the dividend yield of its peers, Regions Financial and Fifth Third, are 3.74 and 3.30, respectively.
Dividend Yield
Image Source: Zacks Investment Research
Few Concerns Prevail for CFG
Elevated Expense Base: The bank faces rising operating costs due to expansion efforts and technology investments. Non-interest expenses rose at a CAGR of 18.4% from 2020 to 2024. Although the trend moderated in the first half of 2025, management expects expenses to increase by 4% in 2025.
The opening of private banking offices and national franchise expansion are likely to keep the expense base elevated, potentially limiting bottom-line growth.
Expense Trend
Image Source: Zacks Investment Research
Loan Concentration Risk: Citizens Financial’s loan portfolio has a high concentration in commercial loans, which accounted for 51.4% of total loans and leases as of June 30, 2025.
The rapidly changing macroeconomic environment may put pressure on this segment, and in the event of an economic downturn, credit quality could deteriorate. The lack of diversification in the loan portfolio could negatively impact the company’s financial performance if economic conditions weaken.
Parting Thoughts on CFG
Though Citizens Financial’s efforts to expand wealth management, strengthen its loan and deposit base, and execute efficiency programs look encouraging, challenges remain. Rising operating costs and concentration in commercial lending may weigh on performance.
Also, in terms of valuation, CFG stock appears expensive relative to the industry. The stock is currently trading at a 12-month trailing price-to-earnings P/E ratio of 11.18X, higher than the industry’s 10.26X. Meanwhile, Regions Financial holds a P/E ratio of 10.89X, while Fifth Third’s P/E ratio stands at 11.64X.
Price-to-Earnings F12 M
Image Source: Zacks Investment Research
Thus, investors should not rush to buy CFG stock at current levels. Instead, they may consider waiting for a more favorable entry point. The Zacks Rank #3 (Hold) supports this cautious stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Citizens Financial Stock Reaches 52-Week High: Is It Worth Betting On?
Key Takeaways
Citizens Financial Group (CFG - Free Report) shares touched a 52-week high of $50.77 in Friday’s trading session.
Over the past year, the stock has gained 18.8%, outperforming the industry, and its close peers, Regions Financial (RF - Free Report) and Fifth Third Bancorp (FITB - Free Report) .
One-Year Price Performance
Image Source: Zacks Investment Research
The recent rally in the CFG share price reflects investor optimism following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium. It was highlighted that a shifting balance of risks in inflation and employment may warrant a policy rate adjustment in September 2025. Thus, lower interest rates are expected to ease funding costs and support loan demand further, improving net interest income (NII) for banks like Citizens Financial, FITB and RF.
Other Factors Supporting CFG Momentum
Strategic Expansion in Wealth Management: Citizens Financial is executing a multi-pronged strategy to strengthen its presence in key markets and enhance its wealth management capabilities. In October 2023, the company launched Citizens Private Bank to serve high-net-worth clients, which became profitable by the fourth quarter of 2024 and raised $7 billion in deposits through the year.
The bank is also expanding its New York Metro franchise and deepening its middle-market coverage in Florida and California. These efforts are supported by the addition of coverage bankers and targeted investments in commercial banking infrastructure.
Meanwhile, CFG is also investing in its payments platform and reinforcing its commercial middle-market operations, which complement the success of its private banking business. These moves are expected to improve client acquisition and support long-term revenue growth.
Revenue Mix to Aid Organic Growth: CFG continues to demonstrate steady organic growth, supported by a balanced revenue mix. Over the past four years (2020–2024), total revenues grew at a compound annual growth rate (CAGR) of 3%, driven primarily by NII, which rose at a 5.3% CAGR. Non-interest income declined at a CAGR of 1.8% during the same period, but rebounded in the first half of 2025, offsetting a modest decline in NII. This recovery was led by strength in fee-based businesses such as capital markets, wealth management, and card services.
Management expects NII to grow 3–5% in 2025, supported by a projected net interest margin (NIM) of 3%, up from 2.85% in 2024. Modestly higher interest-earning assets and repricing initiatives are expected to contribute to this improvement.
Further, non-interest income is also anticipated to rise 8–10% in 2025, reflecting momentum in advisory and transaction-based services. The company’s Balance Sheet Optimization (BSO) plan, together with an anticipated Fed rate cut, is expected to support top-line growth in the coming period.
For 2025 and 2026, sales are expected to rise 5.1% and 8% year over year, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Stability in Loan and Deposit Base: CFG maintains a solid foundation in its loan and deposit base. From 2020 to 2024, loans and leases registered a CAGR of 3.1%, while its diversified deposits rose at 4.4% CAGR. In the first half of 2025, both metrics declined year over year, but the company continues to enhance its deposit-gathering capabilities. The acquisitions of HSBC branches and Investors Bancorp added low-cost deposits and expanded the branch network, supporting long-term funding stability.
Management remains focused on relationship-based lending and attractive risk-adjusted returns to support loan pipelines. As part of its BSO plan, CFG aims to reduce its non-core loan portfolio from $11.1 billion at 2023-end to $4.7 billion by the end of 2025.
Inorganic Growth and Franchise Expansion: The bank has actively pursued acquisitions to strengthen its geographic footprint and product capabilities. In 2022, the company acquired College Raptor Inc., DH Capital LLC, and 80 East Coast branches from HSBC, along with Investors Bancorp. This further added 234 branches and expanded its presence in New York City, Philadelphia Metro, and New Jersey.
The acquisitions have enhanced CFG’s balance sheet and created a solid foundation for revenue growth. They also improved fee-generation capabilities and broadened the bank’s reach across key markets.
Solid Liquidity Aid Distribution Strategy: CFG maintains a solid liquidity position, with $9.2 billion in available liquidity and $249 million in short-term debt as of June 30, 2025.
Given solid liquidity, the company rewards its shareholders handsomely. On June 12, 2025, the board approved an increase in the capacity of its common share repurchase program to $1.5 billion. As of June 30, 2025, $300 million in share authorization remained available under the program.
Apart from repurchase activity, the bank has been paying out its dividend consistently. The company has hiked its dividend twice in the last five years while having a 50% payout ratio. Further, its annual dividend yield stood at 3.31, surpassing the industry’s 2.69. Notably, the dividend yield of its peers, Regions Financial and Fifth Third, are 3.74 and 3.30, respectively.
Dividend Yield
Image Source: Zacks Investment Research
Few Concerns Prevail for CFG
Elevated Expense Base: The bank faces rising operating costs due to expansion efforts and technology investments. Non-interest expenses rose at a CAGR of 18.4% from 2020 to 2024. Although the trend moderated in the first half of 2025, management expects expenses to increase by 4% in 2025.
The opening of private banking offices and national franchise expansion are likely to keep the expense base elevated, potentially limiting bottom-line growth.
Expense Trend
Image Source: Zacks Investment Research
Loan Concentration Risk: Citizens Financial’s loan portfolio has a high concentration in commercial loans, which accounted for 51.4% of total loans and leases as of June 30, 2025.
The rapidly changing macroeconomic environment may put pressure on this segment, and in the event of an economic downturn, credit quality could deteriorate. The lack of diversification in the loan portfolio could negatively impact the company’s financial performance if economic conditions weaken.
Parting Thoughts on CFG
Though Citizens Financial’s efforts to expand wealth management, strengthen its loan and deposit base, and execute efficiency programs look encouraging, challenges remain. Rising operating costs and concentration in commercial lending may weigh on performance.
Also, in terms of valuation, CFG stock appears expensive relative to the industry. The stock is currently trading at a 12-month trailing price-to-earnings P/E ratio of 11.18X, higher than the industry’s 10.26X. Meanwhile, Regions Financial holds a P/E ratio of 10.89X, while Fifth Third’s P/E ratio stands at 11.64X.
Price-to-Earnings F12 M
Image Source: Zacks Investment Research
Thus, investors should not rush to buy CFG stock at current levels. Instead, they may consider waiting for a more favorable entry point. The Zacks Rank #3 (Hold) supports this cautious stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.