Citizens Financial Group (CFG) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 EPS rose 36% year-over-year to $1.13, with net income up 32% to $528 million, and full-year EPS of $3.86, up 19% year-over-year, driven by strong pre-provision net revenue and expanding NIM.

• Positive operating leverage of 1.3% sequentially and 5.2% year-over-year in Q4, and 1.25% for the full year.

• Private Bank exceeded targets, contributing over 7% to EPS, achieving 25% ROE, and ending 2025 with $14.5 billion in deposits.

• ROTCE improved to 12.2% in Q4 2025, up 43 bps quarter-over-quarter and 152 bps year-over-year.

• Maintained a strong capital position, with CET1 ratio at 10.6% and a total shareholder payout ratio of 80% for FY2025.

Financial highlights

• Net interest income for Q4 2025 was $1,537 million, up 3% sequentially and 9% year-over-year, with NIM at 3.07%, up 20 bps year-over-year and 7 bps sequentially.

• Noninterest income for Q4 2025 was $620 million, down 2% sequentially but up 10% year-over-year; full-year noninterest income was $2,394 million, up 11%.

• Total revenue for Q4 2025 was $2,157 million, up 2% sequentially and 9% year-over-year; FY2025 total revenue was $8,247 million, up 6%.

• Expenses up 4.6% for the year, reflecting investments in private bank and wealth; Q4 2025 noninterest expense was $1,343 million, up 1% sequentially and 4% year-over-year.

• Provision for credit losses was $137 million in Q4 2025, down from $154 million in Q3 2025 and $162 million in Q4 2024; net charge-offs at 43 bps, down from 46 bps prior quarter.

Outlook and guidance

• FY2026 NII expected to grow 10%-12% with NIM expanding to 3.25% by Q4; loan growth of 3%-5%.

• Noninterest income projected to rise 6%-8%, led by Wealth and Capital Markets.

• Expenses projected to increase 4.5%, with operating leverage in excess of 500 bps; noninterest expense expected to decline 4.5% due to cost reductions.

• Net charge-offs forecasted in the mid-to-high 30s bps; CET1 ratio to remain at 10.5%-10.6%; share repurchases of $700 million-$850 million planned for 2026.

• Medium-term targets include ROTCE of 16%-18% by second half of 2027, efficiency ratio in the mid-50s, and NIM of 3.30%-3.50%.