Citizens Financial Group (CFG) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income was $517 million, up 39%-42% year-over-year, with EPS rising 47% to $1.13 per share and positive operating leverage of 7.2%.

• Private Bank and wealth business contributed $0.11 to EPS, with ROE above 25% and strong deposit and loan growth.

• Strategic initiatives, including Reimagine the Bank, are progressing, targeting $100M pre-tax benefit by 2026 and $450M run-rate by 2028.

• Completed acquisition of Matrix Capital Markets Group, enhancing advisory capabilities.

• Optimistic outlook for 2026, maintaining investment plans and expecting strong performance despite macro and geopolitical uncertainty.

Financial highlights

• Net interest income rose 12% year-over-year to $1.56 billion, with NIM up 24-25 bps to 3.14%.

• Noninterest income grew 11% year-over-year to $606 million, driven by record capital markets and wealth fees.

• Noninterest expense increased 5% year-over-year, mainly due to higher salaries and technology investments.

• Efficiency ratio improved to 63.6% from 67.9% a year ago.

• ROTCE was 12.2%, up from 9.6% a year ago.

Outlook and guidance

• Q2 2026 guidance: Net interest income expected to rise 3%-4%, noninterest income up 3%-5%, and expenses stable to up 1%.

• NIM projected at 3.22%-3.28% for Q4 2026 and 3.30%-3.50% for Q4 2027, supporting ROTCE of 16%-18% by end of 2027.

• Management expects continued strong performance and ongoing Private Bank and advisory growth.