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CFG Q4 Earnings Beat Estimates on NII & Fee Income Growth, Stock Up
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Key Takeaways
CFG posted Q4 EPS of $1.13, beating estimates as earnings climbed 32.9% year over year.
Net interest income and non-interest income rose, supported by higher loan and deposit balances.
Credit quality improved as provisions, charge-offs and non-accrual loans declined from last year.
Citizens Financial Group (CFG - Free Report) reported fourth-quarter 2025 earnings per share (EPS) of $1.13, which surpassed the Zacks Consensus Estimate of $1.11 per share. The metric rose 32.9% from the year-ago quarter.
Shares of the company rose nearly 2.8% in the early trading session following the release of better-than-expected results. A full day’s trading session will depict a clearer picture.
Results benefited from a rise in non-interest income and net interest income (NII). The increase in loan and deposit balances was also encouraging. However, a rise in expenses was a major headwind.
Net income (GAAP basis) was $528 million, which rose 31.6% from the prior-year quarter.
For full-year 2025, earnings of $3.86 per share surpassed the Zacks Consensus Estimate of $3.84. This compares favorably with $3.03 reported in 2024. The company reported net income (GAAP basis) of $1.8 billion, which increased 21.3% year over year.
CFG’s Revenues & Expenses Rise
Total revenues in the fourth quarter were $2.16 billion, which topped the Zacks Consensus Estimate by 0.4%. The top line rose 8.6% year over year.
Full-year revenues aggregated to $8.25 billion, which increased 5.6% year over year. The top line surpassed the Zacks Consensus Estimate of $8.24 billion.
Citizens Financial’s NII rose 8.8% year over year to $1.54 billion, driven by higher net interest margin.
The net interest margin (NIM) expanded 20 basis points year over year to 3.07%, driven by the benefits of non-core runoff and terminated swap impacts, as well as fixed-rate asset repricing benefits, partially offset by lower asset yields.
Non-interest income increased 8% year over year to $620 million. The improvement resulted from increased service charges and fees, capital markets fees, wealth fees and other income.
Non-interest expenses increased 2.1% year over year to $1.34 billion. The rise was primarily due to an increase in salaries and employee benefits, equipment and software costs, and other operating expenses. Underlying non-interest expenses increased 3.9% from the prior-year quarter.
The efficiency ratio was 62.2% in the fourth quarter compared with 66.3% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
Citizens Financial’s Loan Balance & Deposits Up Sequentially
As of Dec. 31, 2025, period-end total loans and leases were $142.7 billion, up 1.3% from the prior quarter, while total deposits rose 1.8% sequentially to $183.3 billion.
CFG’s Credit Quality Improves
As of Dec. 31, 2025, Citizens Financial’s provision for credit losses was $137 million, which declined 15.4% from the year-ago quarter.
The allowance for credit losses decreased 3.4% year over year to $2.2 billion.
Net charge-offs decreased 17.9% on a year-over-year basis to $155 million.
Non-accrual loans and leases declined 9.6% from the year-ago quarter to $1.5 billion.
CFG’s Capital Position Weak
As of Dec. 31, 2025, the tier 1 leverage ratio was 9.4%, unchanged from the prior-year quarter.
The common equity tier 1 capital ratio was 10.6%, down from 10.8% in the prior-year quarter. The total capital ratio was 13.8%, down from 14% in the prior-year quarter.
Citizens Financial’s Share Repurchase Update
In the fourth quarter of 2025, CFG repurchased $125 million of common shares and paid out $201 million in common dividends.
Our View on CFG
Citizens Financial’s solid fourth-quarter results highlight the company’s balanced growth across NII and fees, improving efficiency and stable credit quality. While expense pressure and a weaker capital position remain concerns, CFG’s strong liquidity and shareholder-friendly policies provide support for sustainable performance ahead.
Citizens Financial Group, Inc. Price, Consensus and EPS Surprise
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CFG Q4 Earnings Beat Estimates on NII & Fee Income Growth, Stock Up
Key Takeaways
Citizens Financial Group (CFG - Free Report) reported fourth-quarter 2025 earnings per share (EPS) of $1.13, which surpassed the Zacks Consensus Estimate of $1.11 per share. The metric rose 32.9% from the year-ago quarter.
Shares of the company rose nearly 2.8% in the early trading session following the release of better-than-expected results. A full day’s trading session will depict a clearer picture.
Results benefited from a rise in non-interest income and net interest income (NII). The increase in loan and deposit balances was also encouraging. However, a rise in expenses was a major headwind.
Net income (GAAP basis) was $528 million, which rose 31.6% from the prior-year quarter.
For full-year 2025, earnings of $3.86 per share surpassed the Zacks Consensus Estimate of $3.84. This compares favorably with $3.03 reported in 2024. The company reported net income (GAAP basis) of $1.8 billion, which increased 21.3% year over year.
CFG’s Revenues & Expenses Rise
Total revenues in the fourth quarter were $2.16 billion, which topped the Zacks Consensus Estimate by 0.4%. The top line rose 8.6% year over year.
Full-year revenues aggregated to $8.25 billion, which increased 5.6% year over year. The top line surpassed the Zacks Consensus Estimate of $8.24 billion.
Citizens Financial’s NII rose 8.8% year over year to $1.54 billion, driven by higher net interest margin.
The net interest margin (NIM) expanded 20 basis points year over year to 3.07%, driven by the benefits of non-core runoff and terminated swap impacts, as well as fixed-rate asset repricing benefits, partially offset by lower asset yields.
Non-interest income increased 8% year over year to $620 million. The improvement resulted from increased service charges and fees, capital markets fees, wealth fees and other income.
Non-interest expenses increased 2.1% year over year to $1.34 billion. The rise was primarily due to an increase in salaries and employee benefits, equipment and software costs, and other operating expenses. Underlying non-interest expenses increased 3.9% from the prior-year quarter.
The efficiency ratio was 62.2% in the fourth quarter compared with 66.3% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
Citizens Financial’s Loan Balance & Deposits Up Sequentially
As of Dec. 31, 2025, period-end total loans and leases were $142.7 billion, up 1.3% from the prior quarter, while total deposits rose 1.8% sequentially to $183.3 billion.
CFG’s Credit Quality Improves
As of Dec. 31, 2025, Citizens Financial’s provision for credit losses was $137 million, which declined 15.4% from the year-ago quarter.
The allowance for credit losses decreased 3.4% year over year to $2.2 billion.
Net charge-offs decreased 17.9% on a year-over-year basis to $155 million.
Non-accrual loans and leases declined 9.6% from the year-ago quarter to $1.5 billion.
CFG’s Capital Position Weak
As of Dec. 31, 2025, the tier 1 leverage ratio was 9.4%, unchanged from the prior-year quarter.
The common equity tier 1 capital ratio was 10.6%, down from 10.8% in the prior-year quarter. The total capital ratio was 13.8%, down from 14% in the prior-year quarter.
Citizens Financial’s Share Repurchase Update
In the fourth quarter of 2025, CFG repurchased $125 million of common shares and paid out $201 million in common dividends.
Our View on CFG
Citizens Financial’s solid fourth-quarter results highlight the company’s balanced growth across NII and fees, improving efficiency and stable credit quality. While expense pressure and a weaker capital position remain concerns, CFG’s strong liquidity and shareholder-friendly policies provide support for sustainable performance ahead.
Citizens Financial Group, Inc. Price, Consensus and EPS Surprise
Citizens Financial Group, Inc. price-consensus-eps-surprise-chart | Citizens Financial Group, Inc. Quote
Currently, Citizens Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Bank Stocks
Huntington Bancshares Inc. (HBAN - Free Report) is slated to report fourth-quarter 2025 results on Jan. 22.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share.
Bank of Hawaii (BOH - Free Report) is scheduled to announce fourth-quarter 2025 numbers on Jan. 26.
Over the past seven days, the Zacks Consensus Estimate for BOH’s quarterly earnings has been unchanged at $1.25 per share.