CF
CFG
CFG Citizens Financial Group (CFG) Q4 FY25 earnings call
Citizens Financial Group concluded FY25 with a strong Q4, marked by significant net interest margin expansion and robust growth in its Private Bank and fee-generating businesses. The company is strategically focused on organic growth, driven by its 'Reimagine the Bank' initiative aimed at enhancing customer experience and efficiency, while maintaining disciplined expense management and a strong capital position. Management expressed confidence in achieving medium-term ROTCE targets, supported by continued NIM expansion and improving credit trends.
Youβre reading a preview. Opening the full call uses 1 concall credit.
Sign in to use your monthly call allowance.
CFG operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | Sep 2025 Q3 FY25 | This call Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|---|
| Assets under management (AUM) Private Bank | $4.7BWe 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 | $5.2BThe Private Bank continued to see excellent growth, reaching $8.7 billion in deposits and $5.2 billion in AUM.Source: earnings call transcript | $7.6BWe 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 | β | β | β | β | +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 | β | 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 | β | β | β | 8.7%Our AOCI adjusted CET1 ratio and TCE ratio ended the quarter at 8.7% and 6.7%, respectively.Source: earnings call transcript | β |
| 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 | β | β | +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 | β | 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 | β | β | 0 pt |
| Employees Private Bank | β | β | ~500We 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 | β | <600In 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 | β | <700We're now up to almost 700 people.Source: earnings call transcript | β |
| Efficiency ratio | β | β | 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 | β | 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 | β | β |
| Branches Private Bank | β | β | β | β | β | 10We also opened a private bank office in West Palm Beach, our 10th.Source: earnings call transcript | 10We have 10 PBOs.Source: earnings call transcript | 0% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.