Citizens Financial Group (CFG) Q2 FY26 earnings call

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 16, 2026

Source: earnings call transcript

Citizens Financial Group delivered a robust second quarter, marked by record revenue performance and significant operating leverage. The company's strategic initiatives, including the Private Bank expansion and 'Reimagine the Bank' program, are progressing well, positioning it for continued strong performance and a clear path to its medium-term ROTCE target.

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CFG operating KPIs by quarter

CFG operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Assets under management (AUM) Private Bank	$4.7B We reached $7 billion in deposits, $3.1 billion in loans and $4.7 billion in AUM and we were profitable in the quarter. Source: earnings call transcript	$5.2B The Private Bank continued to see excellent growth, reaching $8.7 billion in deposits and $5.2 billion in AUM. Source: earnings call transcript	$7.6B We ended the quarter with $7.6 billion in AUM, up $1.1 billion linked quarter, reflecting the continued strong conversion rates of the wealth lift-outs. Source: earnings call transcript	—	—	—	—	+46.2%
Common equity tier 1 ratio (CET1)	10.8% We ended the year in a very strong balance sheet position with CET1 at 10.8% or 9.1% adjusted for the AOCI opt-out removal, a pro forma Category 1 LCR of 119% and an ACL coverage ratio of 1.62%, up from 1.61% in the prior quarter. Source: earnings call transcript	—	10.7% Our CET1 increased 10 basis points to 10.7%. Source: earnings call transcript	10.6% Our CET1 ratio is 10.6%, and adjusting for the AOCI opt-out removal, our CET1 ratio increased to 9.5%. Source: earnings call transcript	10.5% Our balance sheet position continues to be robust with CET1 at 10.5% and our allowance for loan losses at 1.52%. Source: earnings call transcript	10.4% We ended the second quarter with CET1 at 10.4%, while executing $225 million in stock buybacks during the quarter. Source: earnings call transcript	10.5% We maintained excellent balance sheet strength, ending the quarter with CET1 at a healthy 10.5% at the top end of our medium-term target operating range. Source: earnings call transcript	+0.1 pt
Common equity tier 1 ratio (CET1) Adjusted for AOCI opt-out removal	9.1% We ended the year in a very strong balance sheet position with CET1 at 10.8% or 9.1% adjusted for the AOCI opt-out removal, a pro forma Category 1 LCR of 119% and an ACL coverage ratio of 1.62%, up from 1.61% in the prior quarter. Source: earnings call transcript	9.1% We ended the quarter in a very strong balance sheet position with CET1 at 10.64% or 9.1% adjusted for the AOCI opt-out removal. Source: earnings call transcript	9.4% And adjusting for the AOCI opt-out removal, our CET1 ratio is 9.4%. Source: earnings call transcript	—	—	—	8.7% Our AOCI adjusted CET1 ratio and TCE ratio ended the quarter at 8.7% and 6.7%, respectively. Source: earnings call transcript	—
Net interest margin	2.87% As you can see from the NIM walk at the bottom of the slide, our margin was up 10 basis points to 2.87%, reflecting the benefit of non-core runoff, fixed rate asset repricing and better deposit and loan betas partially offset by our net asset-sensitive position as rates declined. Source: earnings call transcript	2.9% Highlights include NIM expansion of 3 basis points to 2.90%; core loan growth of 1%; resilience in our fee categories despite some softness in capital markets, given market uncertainty; and credit trends remaining favorable along with continued share repurchases. Source: earnings call transcript	3% Net interest margin continues to steadily expand, up 5 basis points to 3% and average loan volume was up 1%, which combined, delivered 3.5% NII growth. Source: earnings call transcript	3.07% Our net interest margin continues to steadily expand, up 7 basis points this quarter to 3.07%. Source: earnings call transcript	3.14% As you see from the NIM back at the bottom of the slide, our margin improved 7 basis points to 3.14%, driven primarily by the benefits of the reduced drag from terminated swaps and noncore runoff with a 5 basis point of combined impact. Source: earnings call transcript	—	—	+0.1 pt
Return on tangible common equity (ROTCE)	10.7% We generated underlying net income of $412 million, EPS of $0.85 and ROTCE of 10.7%. Source: earnings call transcript	9.6% Referencing Slides 5 and 6, we delivered EPS of $0.77 for the first quarter with ROTCE of 9.6%. Source: earnings call transcript	—	12.2% For the fourth quarter, we generated EPS of $1.13, up 8% linked quarter and 36% year-on-year, and delivered a 12.2% ROTCE. Source: earnings call transcript	12.2% Referencing Slides 3 and 4, we delivered EPS of $1.13 for the first quarter with ROTCE of 12.2%. Source: earnings call transcript	—	—	0 pt
Employees Private Bank	—	—	~500 We continue to build out our Private Bank team with additional hires in Southern California, and we now have around 500 people in the business, quite the ramp from a start-up in 2023. Source: earnings call transcript	—	<600 In terms of talent, the main needs we've taken the business from about 150 people at launch up to close to 600 today, including all the support dedicated support people. Source: earnings call transcript	—	<700 We're now up to almost 700 people. Source: earnings call transcript	—
Efficiency ratio	—	—	63% Disciplined expense management and strong revenues resulted in approximately 170 basis points of improvements in our efficiency ratio to 63%. Source: earnings call transcript	62% Disciplined expense management and strong revenues resulted in approximately 79 basis points of improvement in our efficiency ratio to 62%. Source: earnings call transcript	—	61% On Slide 7, expenses were managed tightly, up about 1% linked quarter, and we improved our efficiency ratio to 61%. Source: earnings call transcript	—	—
Branches Private Bank	—	—	—	—	—	10 We also opened a private bank office in West Palm Beach, our 10th. Source: earnings call transcript	10 We have 10 PBOs. Source: earnings call transcript	0%

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