Citizens Financial Group (CFG) 2026 RBC Capital Markets Global Financial Institutions Conference summary

Macroeconomic and industry outlook

• Economic environment seen as broadly resilient, with mixed signals but no major credit or liquidity risks identified.

• Consumer confidence remains low, with inflation and unemployment concerns, but overall conditions are stable.

• Top-tier consumers retain excess liquidity, while lower-income segments face more pressure, though not a significant risk.

• Corporate clients show positive sentiment and strong loan demand, expecting continued constructive business conditions.

• Geopolitical risks, especially in the Middle East, are monitored but not currently impacting the outlook.

Strategic transformation and business model evolution

• Significant transformation since IPO, with investments in technology, customer experience, and smart acquisitions.

• Three-pronged strategy: consumer banking, private wealth/private banking, and commercial banking.

• Consumer banking now provides 65%-70% of deposits, with improved profitability and deposit transformation.

• Private Bank launched in 2023, leveraging talent from failed West Coast banks, now a key growth vector.

• Commercial banking focused on middle market, private credit, and capital markets, with further potential as markets stabilize.

Financial targets and growth drivers

• Targeting 16%-18% ROTCE by the second half of 2027, up from just over 12% in Q4.

• NIM expected to expand to 3.30%-3.50% by Q4 2027, contributing significantly to ROTCE improvement.

• Private Bank and capital markets expected to be highly accretive to returns, with positive operating leverage.

• Credit costs anticipated to decline, with over-accruals being addressed and share buybacks offsetting AOCI drag.

• Confident in meeting guidance for the current quarter, with constructive trends in balance growth and client engagement.