Citizens Financial Group (CFG) investor relations material

Executive summary

• Net income for Q2 2026 was $587 million, up 35% year-over-year and 14% sequentially, with EPS of $1.30, up 41% year-over-year and 15% quarter-over-quarter.

• ROTCE increased to 13.9%, up from 11.0% a year ago and 12.2% in Q1.

• Record revenue growth driven by NII and fee income, with positive operating leverage and strong cost discipline.

• Private Bank and Capital Markets momentum continued, with Private Bank contributing $0.15 to EPS and ROE above 25%.

• Strategic initiatives, including Private Bank expansion, digital transformation, and AI deployment, are progressing well.

Financial highlights

• Net interest income rose 14% year-over-year and 4% sequentially to $1.63 billion, with NIM at 3.17%, up 22 bps year-over-year and 3 bps sequentially.

• Noninterest income increased 9% year-over-year and 8% sequentially to $652 million, led by Capital Markets and Wealth fees.

• Efficiency ratio improved to 61.1%, down from 64.8% a year ago; expenses up 1% sequentially.

• Net income available to common stockholders was $554 million, up 14% sequentially and 38% year-over-year.

• Returned $422 million to shareholders in Q2 via $197 million in dividends and $225 million in share repurchases.

Outlook and guidance

• Q3 2026: NII expected to rise 2.5%-3.5%, noninterest income up ~1% or slightly down, expenses stable to slightly up, charge-offs stable to down, CET1 to end Q3 at ~10.5%.

• Full-year 2026: Revenue trending above initial guidance, on track for over 600 bps positive operating leverage.

• Clear path to 16%-18% ROTCE by end of 2027, with NIM projected at 3.22%-3.27% for Q4 2026 and 3.30%-3.50% for Q4 2027.

• Management expects continued growth in Private Bank and Private Wealth, with ongoing investments in technology and customer experience.

• Regulatory capital proposals and deposit insurance changes are being monitored for potential impacts.