Open the filing on EDGARCitizens Financial Group, Inc. Reports Second Quarter 2026 Net Income of
$587 million, up 35% YoY, and EPS of $1.30, up 41% YoY and 15% QoQ
Sequential NII Growth of 4% and Fee Growth of 8%
Positive Operating Leverage of 6.4% YoY
| | Key Financial Data | | 2Q26 | 1Q26 | 2Q25 | Second Quarter 2026 Highlights |
|---|
| Income Statement | | ($s in millions) | | | | | ■EPS of $1.30; ROTCE of 13.9% - Continued strong Private Bank progress, contributing $0.15 to EPS, up from $0.11 in 1Q26■PPNR of $889 million, up 13% QoQ, up 24% YoY - NII up 4.4% QoQ, with NIM up 3 bps to 3.17%; YoY NII up 14%, with NIM up 22 bps - Fees up 8% QoQ, up 9% YoY driven by Capital Markets and Wealth - Positive operating leverage of 4.1% QoQ and 6.4% YoY ■Loans up 3% on a spot basis and 2% on an average basis QoQ, with growth led by Commercial and Private Bank■Continuing favorable credit trends; net charge-offs of 37 bps, down 2 bps QoQ■Strong ACL coverage of 1.48%■Average deposits up $2.3 billion, or 1% QoQ, driven by growth in Private Bank and retail low-cost categories - Private Bank spot deposits of $17.8 billion - Total deposit costs well controlled, up 3 bps QoQ■Strong liquidity profile; spot LDR of 79.5% ■Strong CET1 ratio of 10.4% ■TBV/share of $38.29, up 1% QoQ |
| Total revenue | | $2,283 | $2,168 | $2,037 | | |
| Pre-provision profit | | 889 | 790 | 718 | | |
| Provision for credit losses | | 134 | 140 | 164 | | |
| Net income | | 587 | 517 | 436 | | |
| Balance Sheet & Credit Quality | | ($s in billions) | | | | | |
| Period-end loans and leases | | $147.5 | $143.7 | $139.3 | | |
| Average loans and leases | | 146.1 | 143.4 | 138.8 | | |
| Period-end deposits | | 185.6 | 184.0 | 175.1 | | |
| Average deposits | | 183.6 | 181.3 | 174.1 | | |
| Loan-to-deposit ratio (spot) | | 79.5% | 78.1% | 79.6% | | |
| NCO ratio | | 0.37% | 0.39% | 0.48% | | |
| Financial Metrics | | Diluted EPS | | $1.30 | $1.13 | $0.92 | |
| ROTCE | | 13.9% | 12.2% | 11.0% | | |
| Net interest margin, FTE | | 3.17 | 3.14 | 2.95 | | |
| Efficiency ratio | | 61.1 | 63.6 | 64.8 | | |
| CET1 | | 10.4% | 10.5% | 10.6% | | |
| TBV/Share | | $38.29 | $37.94 | $35.23 | | |
Comments from Chairman and CEO Bruce Van Saun
“We delivered an outstanding second quarter, led by strong revenue growth, significant positive operating leverage and favorable credit performance,” said Chairman and CEO Bruce Van Saun. “We are executing well on our strategic initiatives, with continued strong growth in the Private Bank, record Wealth fees and record second quarter fees in Capital Markets, meaningful progress on Reimagine the Bank, and the successful launch of a new Consumer mobile platform. We were pleased about the DFAST stress loss results and anticipate further improvement under the new Fed models. We remain confident in our momentum and outlook through the remainder of 2026 and for 2027.”
Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.46 per share. The dividend is payable on August 13, 2026 to shareholders of record at the close of business on July 30, 2026.
Earnings highlights:
| Quarterly Trends |
|---|
| | | | 2Q26 change from |
|---|
| ($s in millions, except per share data) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Earnings | | | | $/bps/% | % | $/bps/% | % |
| Net interest income | $1,631 | $1,562 | $1,437 | $69 | 4% | | $194 | 14% | |
| Noninterest income | 652 | 606 | 600 | 46 | 8 | | 52 | 9 | |
| Total revenue | 2,283 | 2,168 | 2,037 | 115 | 5 | | 246 | 12 | |
| Noninterest expense | 1,394 | 1,378 | 1,319 | 16 | 1 | | 75 | 6 | |
| Pre-provision profit | 889 | 790 | 718 | 99 | 13 | | 171 | 24 | |
| Provision for credit losses | 134 | 140 | 164 | (6) | | (4) | (30) | | (18) |
| Net income | 587 | 517 | 436 | 70 | 14 | | 151 | 35 | |
| Preferred dividends/other | 33 | 33 | 34 | - | - | | (1) | (3) | |
| Net income available to common stockholders | $554 | $484 | $402 | $70 | 14% | | $152 | 38% | |
| Average common shares outstanding | | | | | | | |
| Basic (in millions) | 422.9 | 425.3 | 433.6 | (2.5) | (1) | | (10.8) | (2) | |
| Diluted (in millions) | 426.7 | 429.9 | 436.5 | (3.2) | (1) | | (9.9) | (2) | |
| Diluted earnings per share | 1.30 | 1.13 | 0.92 | 0.17 | | 15 | 0.38 | 41 | |
| Performance metrics | | | | | | | |
| Net interest margin | 3.16% | 3.14% | 2.94% | 2bps | | 22bps | |
| Net interest margin, FTE | 3.17 | 3.14 | 2.95 | 3 | | 22 | |
| Effective income tax rate | 22.3 | 20.5 | 21.4 | 183 | | 92 | |
| Efficiency ratio | 61.1 | 63.6 | 64.8 | (247) | | (368) | |
| Return on average tangible common equity | 13.9 | 12.2 | 11.0 | 172 | | 286 | |
| Return on average total tangible assets | 1.06% | 0.97% | 0.83% | 9bps | | 23bps | |
| Capital adequacy(2,3) | | | | | | | |
| Common equity tier 1 capital ratio | 10.4% | 10.5% | 10.6% | | | | |
| Total capital ratio | 13.6 | 13.7 | 13.8 | | | | |
| Tier 1 leverage ratio | 9.2 | 9.3 | 9.4 | | | | |
| Tangible common equity ratio | 7.2 | 7.3 | 7.2 | | | | |
| Allowance for credit losses to loans and leases | 1.48% | 1.52% | 1.59% | (4)bps | | (11)bps | |
| Asset quality | | | | | | | |
| Nonaccrual loans and leases to loans and leases | 0.97% | 1.04% | 1.09% | (7)bps | | (12)bps | |
| Allowance for credit losses to nonaccrual loans and leases | 152 | 146 | 145 | 6% | | 7% | |
| Net charge-offs as a % of average loans and leases | 0.37% | 0.39% | 0.48% | (2)bps | | (11)bps | |
Unless otherwise noted, references to balance sheet items are on an average basis, loans exclude loans held for sale, earnings per share represent fully diluted per common share and references to NIM are on a FTE basis.
Current reporting-period regulatory capital ratios are preliminary.
Capital adequacy and asset-quality ratios calculated on a period-end basis, except net charge-offs.
Consolidated balance sheet summary:
| | | | 2Q26 change from |
|---|
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| | | | $/bps | % | $/bps | % |
| Total assets | $233,836 | $227,918 | $218,310 | $5,918 | 3% | $15,526 | 7% |
| Total loans and leases | 147,491 | 143,667 | 139,304 | 3,824 | 3 | 8,187 | 6 |
| Total loans held for sale | 1,458 | 1,537 | 2,093 | (79) | (5) | (635) | (30) |
| Deposits | 185,620 | 184,035 | 175,086 | 1,585 | 1 | 10,534 | 6 |
| Stockholders' equity | 26,183 | 26,172 | 25,234 | 11 | - | 949 | 4 |
| Stockholders' common equity | 24,072 | 24,061 | 23,121 | 11 | - | 951 | 4 |
| Tangible common equity | $16,185 | $16,165 | $15,246 | $20 | - % | $939 | 6% |
| Loan-to-deposit ratio (period-end) | 79.5% | 78.1% | 79.6% | 139bps | | (10)bps | |
| Loan-to-deposit ratio (average) | 79.6% | 79.1% | 79.7% | 49bps | | (14)bps | |
| (1) Represents period-end unless otherwise noted. | | | | |
| (2) Excludes loans held for sale. |
Discussion of results:
| Net interest income | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| | | | $/bps | % | $/bps | % |
| Interest income: | | | | | | | |
| Interest and fees on loans and leases and loans held for sale | $1,994 | $1,905 | $1,887 | $89 | 5% | $107 | 6% |
| Investment securities | 446 | 424 | 428 | 22 | 5 | 18 | 4 |
| Interest-bearing deposits in banks | 103 | 91 | 92 | 12 | 13 | 11 | 12 |
| Total interest income | $2,543 | $2,420 | $2,407 | $123 | 5% | $136 | 6% |
| Interest expense: | | | | | | | |
| Deposits | $747 | $715 | $802 | $32 | 4% | $(55) | (7)% |
| Short-term borrowed funds | 9 | 4 | 9 | 5 | 125 | - | - |
| Long-term borrowed funds | 156 | 139 | 159 | 17 | 12 | (3) | (2) |
| Total interest expense | $912 | $858 | $970 | $54 | 6% | $(58) | (6)% |
| Net interest income | $1,631 | $1,562 | $1,437 | $69 | 4% | $194 | 14% |
| Net interest margin, FTE | 3.17% | 3.14% | 2.95% | 3bps | | 22bps | |
| Second quarter 2026 | vs. | first quarter 2026 |
Net interest income of $1.6 billion increased 4.4%, reflecting a higher net interest margin along with a 2% increase in average interest-earning assets.
- Net interest margin of 3.17% increased 3 basis points, reflecting the benefit of lower terminated swap impacts and Non-Core runoff, and fixed-rate asset repricing, partially offset by increased funding costs.
- Interest-bearing deposit costs increased 4 basis points to 2.08%; total deposit costs increased 3 basis points to 1.63%; total cost of funds increased 5 basis points to 1.85%.
| Second quarter 2026 | vs. | second quarter 2025 |
Net interest income of $1.6 billion increased 14%, primarily reflecting a higher net interest margin, as well as a 5% increase in interest-earning assets.
- Net interest margin of 3.17% increased 22 basis points, largely driven by the benefit of terminated swap impacts and Non-Core runoff, fixed-rate asset repricing and improved funding costs, partially offset by lower asset yields.
| Noninterest Income | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Service charges and fees | $117 | $112 | $111 | $5 | 4% | | $6 | 5% | |
| Capital markets fees | 153 | 134 | 105 | 19 | 14 | | 48 | 46 | |
| Wealth fees | 102 | 100 | 88 | 2 | 2 | | 14 | 16 | |
| Card fees | 89 | 83 | 90 | 6 | 7 | | (1) | (1) | |
| Mortgage banking fees | 42 | 42 | 73 | - | - | | (31) | (42) | |
| Foreign exchange and derivative products | 47 | 44 | 41 | 3 | 7 | | 6 | 15 | |
| Letter of credit and loan fees | 52 | 50 | 45 | 2 | 4 | | 7 | 16 | |
| Securities gains, net | 6 | 7 | 5 | (1) | | (14) | 1 | | 20 |
| Other income | 44 | 34 | 42 | 10 | | 29 | 2 | | 5 |
| Noninterest income | $652 | $606 | $600 | $46 | 8% | | $52 | 9% | |
| (1) Includes bank-owned life insurance income and other miscellaneous income for all periods presented. |
| Second quarter 2026 | vs. | first quarter 2026 |
Noninterest income of $652 million increased $46 million, or 8%.
- Service charges and fees increased $5 million, primarily from seasonality and growth in account and cash management fees.
- Capital markets fees increased $19 million to $153 million, a record for the second quarter, reflecting higher loan syndication and debt and equity underwriting fees.
- Wealth fees increased $2 million to $102 million, a new record, reflecting higher advisory fees.
- Card fees increased $6 million, reflecting increased seasonal spend across credit and debit cards.
- FX and derivative products increased $3 million, primarily given higher interest rate and FX hedging activity, partially offset by a decline in commodities hedging activity.
- Mortgage banking fees are stable as higher servicing revenue was offset by lower production revenue.
- Other income increased $10 million, reflecting several modest revenue items.
| Second quarter 2026 | vs. | second quarter 2025 |
Noninterest income of $652 million increased $52 million, or 9%.
- Service charges and fees increased $6 million, primarily driven by higher cash management fees.
- Capital markets fees increased $48 million, driven by higher M&A, loan syndication and debt underwriting fees.
- Wealth fees increased $14 million, primarily from growth in AUM, reflecting net inflows and market appreciation.
- Mortgage banking fees decreased $31 million, largely reflecting lower MSR valuation results, net of hedge impact.
| Noninterest Expense | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Salaries and employee benefits | $745 | $758 | $681 | $(13) | (2)% | $64 | 9% |
| Equipment and software | 195 | 197 | 193 | (2) | (1) | 2 | 1 |
| Outside services | 174 | 162 | 169 | 12 | 7 | 5 | 3 |
| Occupancy | 108 | 114 | 108 | (6) | (5) | - | - |
| Other operating expense | 172 | 147 | 168 | 25 | 17 | 4 | 2 |
| Noninterest expense | $1,394 | $1,378 | $1,319 | $16 | 1% | $75 | 6% |
| Second quarter 2026 | vs. | first quarter 2026 |
Noninterest expense of $1.4 billion increased 1%.
- Salaries and employee benefits decreased $13 million, primarily reflecting lower payroll taxes given seasonality.
- Outside services increased $12 million, largely due to higher technology-related costs.
- Occupancy decreased $6 million, largely reflecting lower branch maintenance costs.
- Other operating expense increased $25 million, reflecting higher insurance and various other modest expense items.
The effective tax rate of 22.3% in second quarter 2026 compares with 20.5% in first quarter 2026. The lower first quarter tax rate reflected the recognition of discrete tax benefits.
| Second quarter 2026 | vs. | second quarter 2025 |
Noninterest expense of $1.4 billion increased 6%.
- Salaries and employee benefits increased $64 million, reflecting hiring related to the Private Bank and Private Wealth buildout, and compensation associated with growth in Capital Markets fees.
- Outside services increased $5 million, primarily driven by costs to implement the Reimagine the Bank program.
- Other operating expense increased $4 million, reflecting the impact of various sundry items.
The effective tax rate was 22.3% in second quarter 2026 compared with 21.4% in second quarter 2025.
| Interest-earning assets | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Period-end interest-earning assets | | | | $ | % | $ | % |
| Investments | $46,345 | $45,218 | $43,899 | $1,127 | 2% | $2,446 | 6% |
| Interest-bearing deposits in banks | 12,648 | 12,076 | 8,121 | 572 | 5 | 4,527 | 56 |
| Commercial loans and leases | 77,284 | 74,589 | 71,642 | 2,695 | 4 | 5,642 | 8 |
| Retail loans | 70,207 | 69,078 | 67,662 | 1,129 | 2 | 2,545 | 4 |
| Total loans and leases | 147,491 | 143,667 | 139,304 | 3,824 | 3 | 8,187 | 6 |
| Loans held for sale | 1,458 | 1,537 | 2,093 | (79) | (5) | (635) | (30) |
| Total loans and leases and loans held for sale | 148,949 | 145,204 | 141,397 | 3,745 | 3 | 7,552 | 5 |
| Total period-end interest-earning assets | $207,942 | $202,498 | $193,417 | $5,444 | 3% | $14,525 | 8% |
| Average interest-earning assets | | | | | | | |
| Investments | $48,088 | $46,929 | $46,538 | $1,159 | 2% | $1,550 | 3% |
| Interest-bearing deposits in banks | 10,839 | 10,079 | 8,217 | 760 | 8 | 2,622 | 32 |
| Commercial loans and leases | 76,548 | 74,541 | 71,423 | 2,007 | 3 | 5,125 | 7 |
| Retail loans | 69,580 | 68,869 | 67,386 | 711 | 1 | 2,194 | 3 |
| Total loans and leases | 146,128 | 143,410 | 138,809 | 2,718 | 2 | 7,319 | 5 |
| Loans held for sale | 1,715 | 1,511 | 2,754 | 204 | 14 | (1,039) | (38) |
| Total loans and leases and loans held for sale | 147,843 | 144,921 | 141,563 | 2,922 | 2 | 6,280 | 4 |
| Total average interest-earning assets | $206,770 | $201,929 | $196,318 | $4,841 | 2% | $10,452 | 5% |
| Total average interest-earning assets excludes the mark-to-market on investment securities and unsettled purchases or sales of loans and investments. |
| Second quarter 2026 | vs. | first quarter 2026 |
Period-end interest-earning assets of $207.9 billion increased $5.4 billion, or 3%, reflecting a $1.1 billion increase in investments in securities and 3% growth in loans and leases. Total loans and leases increased $3.8 billion, as growth in the Private Bank, net new money originations in corporate banking and higher commercial line utilization, as well as growth in home equity and mortgage, were partially offset by commercial real estate paydowns and the runoff of Non-Core loans.
Average interest-earning assets of $206.8 billion increased $4.8 billion, or 2%, reflecting a $2.7 billion increase in total loans and leases, as well as $1.2 billion increase in investments and $760 million increase in cash held in interest-bearing deposits.
The average effective duration of the securities portfolio was 4.1 years, compared with 4.0 years at March 31, 2026 and 3.7 years at June 30, 2025.
| Second quarter 2026 | vs. | second quarter 2025 |
Period-end interest-earning assets of $207.9 billion increased $14.5 billion, or 8%, reflecting a $2.4 billion increase in investments in securities, a $4.5 billion increase in cash held in interest-bearing deposits and a $7.6 billion increase in total loans and leases and loans held for sale. The increase in total loans and leases and loans held for sale was largely driven by $5.6 billion of growth in commercial, given net new money originations in corporate banking and higher commercial line utilization, as well as growth in the Private Bank, partially offset by commercial real estate paydowns. Retail also grew $2.5 billion, reflecting growth in home equity and mortgage, partially offset by Non-Core portfolio runoff.
Average interest-earning assets of $206.8 billion increased $10.5 billion, primarily reflecting a $6.3 billion increase in total loans and leases and loans held for sale, as well as $2.6 billion increase in cash held in interest-bearing deposits and a $1.6 billion increase in investments in securities.
| Deposits | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Period-end deposits | | | | $ | % | $ | % |
| Noninterest-bearing demand | $40,939 | $41,672 | $38,001 | $(733) | (2)% | $2,938 | 8% |
| Checking with interest | 40,258 | 37,675 | 34,918 | 2,583 | 7 | 5,340 | 15 |
| Savings | 23,570 | 24,114 | 25,400 | (544) | (2) | (1,830) | (7) |
| Money market | 60,029 | 59,611 | 55,638 | 418 | 1 | 4,391 | 8 |
| Time | 20,824 | 20,963 | 21,129 | (139) | (1) | (305) | (1) |
| Total period-end deposits | $185,620 | $184,035 | $175,086 | $1,585 | 1% | $10,534 | 6% |
| Average deposits | | | | | | | |
| Noninterest-bearing demand | $39,881 | $39,286 | $37,350 | $595 | 2% | $2,531 | 7% |
| Checking with interest | 38,632 | 37,027 | 33,847 | 1,605 | 4 | 4,785 | 14 |
| Savings | 23,780 | 24,095 | 25,536 | (315) | (1) | (1,756) | (7) |
| Money market | 60,295 | 60,141 | 54,716 | 154 | - | 5,579 | 10 |
| Time | 21,032 | 20,766 | 22,679 | 266 | 1 | (1,647) | (7) |
| Total average deposits | $183,620 | $181,315 | $174,128 | $2,305 | 1% | $9,492 | 5% |
| Second quarter 2026 | vs. | first quarter 2026 |
Total period-end deposits of $185.6 billion are up 1%, with growth in the Private Bank and Commercial. Private Bank deposits increased 7% to $17.8 billion at the end of second quarter 2026.
Average deposits of $183.6 billion increased 1%, primarily reflecting growth in the Private Bank, and in retail, primarily low-cost categories.
| Second quarter 2026 | vs. | second quarter 2025 |
Total period-end deposits of $185.6 billion increased 6%, primarily reflecting growth in the Private Bank of $9.1 billion, and $1.5 billion in Commercial, partially offset by a $0.4 billion reduction in higher-cost Treasury brokered deposits.
Average deposits of $183.6 billion were up 5%.
| Borrowed Funds | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Period-end borrowed funds | | | | $ | % | $ | % |
| Short-term borrowed funds | $1,159 | $54 | $249 | $1,105 | | NM | $910 | | NM |
| Long-term borrowed funds | | | | | | | |
| FHLB advances | 5,763 | 2,513 | 1,542 | 3,250 | | 129 | 4,221 | | NM |
| Senior debt | 7,078 | 7,076 | 6,821 | 2 | - | | 257 | 4 | |
| Subordinated debt and other debt | 1,421 | 1,419 | 1,752 | 2 | - | | (331) | (19) | |
| Auto collateralized borrowings | 928 | 1,252 | 2,411 | (324) | (26) | | (1,483) | (62) | |
| Total borrowed funds | $16,349 | $12,314 | $12,775 | $4,035 | 33% | | $3,574 | 28% | |
| Average borrowed funds | | | | | | | |
| Short-term borrowed funds | $989 | $454 | $925 | $535 | | 118 % | $64 | 7% | |
| Long-term borrowed funds | | | | | | | |
| FHLB advances | 3,538 | 1,408 | 1,063 | 2,130 | | 151 % | 2,475 | | 233 |
| Senior debt | 7,078 | 6,843 | 7,042 | 235 | 3 | | 36 | 1 | |
| Subordinated debt and other debt | 1,419 | 1,415 | 1,759 | 4 | - | | (340) | (19) | |
| Auto collateralized borrowings | 1,077 | 1,409 | 2,635 | (332) | (24) | | (1,558) | (59) | |
| Total average borrowed funds | $14,101 | $11,529 | $13,424 | $2,572 | 22% | | $677 | 5% | |
| Second quarter 2026 | vs. | first quarter 2026 |
Period-end borrowed funds increased $4.0 billion, primarily reflecting an increase in FHLB advances, partially offset by a decrease in collateralized borrowings on auto loans as the associated portfolio runs down.
Average borrowed funds increased $2.6 billion, driven primarily by an increase in FHLB advances, as well as an increase in senior debt as a result of issuance in the first quarter, partially offset by a decrease in auto collateralized borrowings.
| Second quarter 2026 | vs. | second quarter 2025 |
Period-end borrowed funds were up $3.6 billion, primarily reflecting an increase in FHLB advances, partially offset by the decrease in auto collateralized borrowings, given runoff of the associated portfolio.
Average borrowed funds increased by $677 million, given the increase in FHLB advances, largely offset by the decrease in auto collateralized borrowings.
| Capital | | | | 2Q26 change from |
| ($s and shares in millions, except per share data) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| Period-end capital | | | | $ | % | $ | % |
| Stockholders' equity | $26,183 | $26,172 | $25,234 | $11 | - % | $949 | 4% |
| Stockholders' common equity | 24,072 | 24,061 | 23,121 | 11 | - | 951 | 4 |
| Tangible common equity | 16,185 | 16,165 | 15,246 | 20 | - | 939 | 6 |
| Tangible book value per common share | $38.29 | $37.94 | $35.23 | $0.35 | 1% | $3.06 | 9% |
| Common shares - at end of period | 422.7 | 426.0 | 432.8 | (3.3) | (1) | (10.1) | (2) |
| Common shares - average (diluted) | 426.7 | 429.9 | 436.5 | (3.2) | (1)% | (9.9) | (2)% |
| Common equity tier 1 capital ratio | 10.4% | 10.5% | 10.6% | | | | |
| Total capital ratio | 13.6 | 13.7 | 13.8 | | | | |
| Tangible common equity ratio | 7.2 | 7.3 | 7.2 | | | | |
| Tier 1 leverage ratio | 9.2 | 9.3 | 9.4 | | | | |
| (1) Current reporting-period regulatory capital ratios are preliminary. | |
Second quarter 2026
- The CET1 capital ratio of 10.4% as of June 30, 2026 compares with 10.5% at March 31, 2026 and 10.6% at June 30, 2025.
- Total capital ratio of 13.6% compares with 13.7% at March 31, 2026 and 13.8% as of June 30, 2025.
- Tangible common equity ratio of 7.2% compares with 7.3% at March 31, 2026 and 7.2% as of June 30, 2025.
- Tangible book value per common share of $38.29, up 1% compared with first quarter 2026, and up 9% versus second quarter 2025.
- Total capital returned to shareholders was $422 million in second quarter 2026.
- Paid $197 million in common dividends to shareholders during second quarter 2026. This compares with $198 million in common dividends during first quarter 2026 and $185 million during second quarter 2025.
- Repurchased $225 million of common shares during second quarter 2026, compared with $300 million in first quarter 2026 and $200 million in second quarter 2025.
| Credit quality review | | | | 2Q26 change from |
| ($s in millions) | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
| | | | $/bps/% | % | $/bps/% | % |
| Nonaccrual loans and leases | $1,435 | $1,497 | $1,524 | $(62) | (4)% | $(89) | (6)% |
| 90+ days past due and accruing | 183 | 208 | 194 | (25) | (12) | (11) | (6) |
| Net charge-offs | 135 | 138 | 167 | (3) | (2) | (32) | (19) |
| Provision for credit losses | 134 | 140 | 164 | (6) | (4) | (30) | (18) |
| Allowance for credit losses | $2,184 | $2,185 | $2,209 | $(1) | - % | $(25) | (1)% |
| Nonaccrual loans and leases to loans and leases | 0.97% | 1.04% | 1.09% | (7)bps | | (12)bps | |
| Net charge-offs as a % of total loans and leases | 0.37 | 0.39 | 0.48 | (2) | | (11) | |
| Allowance for credit losses to loans and leases | 1.48 | 1.52 | 1.59 | (4) | | (11) | |
| Allowance for credit losses to nonaccrual loans and leases | 152% | 146% | 145% | 6% | | 7% | |
| (1) Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing. |
| (2) 90+ days past due and accruing includes $172 million, $179 million, and $128 million of loans fully or partially guaranteed by the FHA, VA, and USDA for June 30, 2026, March 31, 2026, and June 30, 2025, respectively. |
| Second quarter 2026 | vs. | first quarter 2026 |
- Nonaccrual loans of $1.4 billion decreased 4%, driven by a decrease in commercial real estate, as we continue to workout the General Office portfolio. The nonaccrual loans to total loans ratio of 0.97% compares with 1.04% at March 31, 2026.
- Net charge-offs of $135 million, or 37 basis points of average loans and leases, compares with 39 basis points in the prior quarter, reflecting decreases in commercial real estate and retail, partially offset by higher C&I.
- The second quarter 2026 provision for credit losses of $134 million compares with $140 million for first quarter 2026.
- The ratio of allowance for credit losses to total loans of 1.48% was down slightly compared with 1.52% as of March 31, 2026 reflecting improved loan mix given the continued reduction in the Non-Core portfolio and a decrease in commercial real estate balances, with originations primarily in C&I and retail real estate secured that have a lower loss content profile.
- The allowance for credit losses to nonaccrual loans and leases ratio of 152% increased from 146% at March 31, 2026, reflecting the decline in nonaccrual loans.
| Second quarter 2026 | vs. | second quarter 2025 |
- Nonaccrual loans decreased 6% driven largely by a 13% decrease in commercial, reflecting a decline in commercial real estate. The nonaccrual loans to total loans ratio of 0.97% compares with 1.09% at June 30, 2025.
- Net charge-offs of $135 million, or 37 basis points of average loans and leases compares with 48 basis points for second quarter 2025, reflecting a decrease in commercial real estate and retail.
- Provision for credit losses of $134 million decreased compared with a $164 million provision in second quarter 2025 reflecting the runoff of the Non-Core portfolio and improving credit trends and loan mix.
- Allowance for credit losses of $2.2 billion decreased $25 million compared with June 30, 2025 given the continued Non-Core runoff and other improvements in loan mix. Allowance for credit losses ratio of 1.48% as of June 30, 2026 compares with 1.59% as of June 30, 2025.
- The allowance for credit losses to nonaccrual loans and leases ratio of 152% compares with 145% as of June 30, 2025.
Corresponding Financial Tables and Information
Investors are encouraged to review the foregoing summary and discussion of Citizens’ earnings and financial condition in conjunction with the detailed financial tables and other information available on the Investor Relations portion of the company’s website at www.citizensbank.com/about-us.
Media: Peter Lucht - (781) 655-2289
Investors: Kristin Silberberg - (203) 900-6854
Conference Call
CFG management will host a live conference call today with details as follows:
Time: 9:00 am ET
Dial-in: (800) 369-1703, conference ID 1679767
Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations.
Replay Information: A replay of the conference call will be available beginning at 12:00 pm ET on July 16, 2026 through August 16, 2026. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $233.8 billion in assets as of June 30, 2026. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail, private banking, wealth management and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. Consumer Banking includes Citizens Private Bank and Private Wealth, which integrate banking services and wealth management solutions to serve high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs and businesses. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X, LinkedIn or Facebook.
Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures:
This document contains non-GAAP financial measures that we believe provide useful information to investors to understand our results of operations or financial condition. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP financial measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP. See the following pages for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.
Non-GAAP financial measures and reconciliations
(in millions, except share, per-share and ratio data)
| | QUARTERLY TRENDS | | |
|---|
| | | | | 2Q26 Change |
|---|
| | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
|---|
| | | | | $/bps | % | $/bps | % |
|---|
| Pre-provision profit: | | | | | | | | |
| Total revenue (GAAP) | A | $2,283 | $2,168 | $2,037 | | $115 | 5% | $246 | | 12% |
| Less: Noninterest expense (GAAP) | B | 1,394 | 1,378 | 1,319 | | 16 | 1 | 75 | | 6 |
| Pre-provision profit (non-GAAP) | | $889 | $790 | $718 | | $99 | 13% | $171 | | 24% |
| Operating leverage: | | | | | | | | |
| Total revenue (GAAP) | A | $2,283 | $2,168 | $2,037 | $115 | | 5.25% | $246 | | 12.01% |
| Less: Noninterest expense (GAAP) | B | 1,394 | 1,378 | 1,319 | 16 | | 1.15 | 75 | | 5.64 |
| Operating leverage | | | | | | 4.10% | | 6.37% |
| Efficiency ratio: | | | | | | | | |
| Efficiency ratio | B/A | 61.08% | 63.55% | 64.76% | (247)bps | | | (368)bps | | |
| Book value per common share and tangible book value per common share: | | | | | | | | |
| Common shares - at period-end (GAAP) | C | 422,677,660 | 426,023,578 | 432,768,811 | (3,345,918) | | (1%) | | (10,091,151) | (2%) |
| Common stockholders' equity (GAAP) | D | $24,072 | $24,061 | $23,121 | | $11 | - | | $951 | 4 |
| Less: Goodwill (GAAP) | | 8,220 | 8,221 | 8,187 | | (1) | - | | 33 | - |
| Less: Other intangible assets (GAAP) | | 105 | 112 | 128 | | (7) | (6) | | (23) | (18) |
| Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | | 438 | 437 | 440 | | 1 | - | | (2) | - |
| Tangible common equity (non-GAAP) | E | $16,185 | $16,165 | $15,246 | | $20 | - % | | $939 | 6% |
| Book value per common share (GAAP) | D/C | $56.95 | $56.48 | $53.43 | | $0.47 | 1% | | $3.52 | 7% |
| Tangible book value per common share (non-GAAP) | E/C | 38.29 | 37.94 | 35.23 | | 0.35 | 1 | | 3.06 | 9 |
| Net interest income and net interest margin on an FTE basis: | | | | | | | | |
| Net interest income (annualized) (GAAP) | F | $6,542 | $6,337 | $5,770 | | $205 | 3% | | $772 | 13% |
| Average interest-earning assets (GAAP) | G | 206,770 | 201,929 | 196,318 | | 4,841 | 2 | | 10,452 | 5 |
| Net interest margin (GAAP) | F/G | 3.16% | 3.14% | 2.94% | 2bps | | | 22bps | | |
| Net interest income (GAAP) | | $1,631 | $1,562 | $1,437 | | $69 | 4% | | $194 | 14% |
| FTE adjustment | | 3 | 3 | 4 | | - | - | | (1) | (25) |
| Net interest income on an FTE basis (non-GAAP) | | 1,634 | 1,565 | 1,441 | | 69 | 4 | | 193 | 13 |
| Net interest income on an FTE basis (annualized) (non-GAAP) | H | 6,555 | 6,350 | 5,786 | | 204 | 3 | | 769 | 13 |
| Net interest margin on an FTE basis (non-GAAP) | H/G | 3.17% | 3.14% | 2.95% | 3bps | | | 22bps | | |
| Return on average common equity and return on average tangible common equity: | | | | | | | | |
| Net income available to common stockholders (GAAP) | I | $554 | $484 | $402 | | $70 | 14% | | $152 | 38% |
| Average common equity (GAAP) | J | $23,839 | $23,995 | $22,494 | | ($156) | (1) | | $1,345 | 6 |
| Less: Average goodwill (GAAP) | | 8,221 | 8,198 | 8,187 | | 23 | - | | 34 | - |
| Less: Average other intangibles (GAAP) | | 109 | 114 | 134 | | (5) | (4) | | (25) | (19) |
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | | 438 | 437 | 438 | | 1 | - | | - | - |
| Average tangible common equity (non-GAAP) | K | $15,947 | $16,120 | $14,611 | | ($173) | (1%) | | $1,336 | 9% |
| Return on average common equity (GAAP) | I/J | 9.31% | 8.19% | 7.18% | 112bps | | | 213bps | | |
| Return on average tangible common equity (non-GAAP) | I/K | 13.91% | 12.19% | 11.05% | 172bps | | | 286bps | | |
| Return on average total assets and return on average total tangible assets: | | | | | | | | |
| Net income (GAAP) | L | $587 | $517 | $436 | | $70 | 14% | | $151 | 35% |
| Average total assets (GAAP) | M | $229,263 | $224,224 | $217,661 | | $5,039 | 2 | | $11,602 | 5 |
| Less: Average goodwill (GAAP) | | 8,221 | 8,198 | 8,187 | | 23 | - | | 34 | - |
| Less: Average other intangibles (GAAP) | | 109 | 114 | 134 | | (5) | (4) | | (25) | (19) |
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | | 438 | 437 | 438 | | 1 | - | | - | - |
| Average tangible assets (non-GAAP) | N | $221,371 | $216,349 | $209,778 | | $5,022 | 2% | | $11,593 | 6% |
| Return on average total assets (GAAP) | L/M | 1.03% | 0.94% | 0.80% | 9bps | | | 23bps | | |
| Return on average total tangible assets (non-GAAP) | L/N | 1.06% | 0.97% | 0.83% | 9bps | | | 23bps | | |
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
| | QUARTERLY TRENDS | | |
|---|
| | | | | 2Q26 Change |
|---|
| | 2Q26 | 1Q26 | 2Q25 | 1Q26 | 2Q25 |
|---|
| | | | | $/bps | % | $/bps | % |
|---|
| Common equity ratio and tangible common equity ratio: | | | | | | | | |
| Total assets (GAAP) | O | $233,836 | $227,918 | $218,310 | $5,918 | 3% | $15,526 | 7% |
| Less: Goodwill (GAAP) | | 8,220 | 8,221 | 8,187 | (1) | - | 33 | - |
| Less: Other intangible assets (GAAP) | | 105 | 112 | 128 | (7) | (6) | (23) | (18) |
| Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | | 438 | 437 | 440 | 1 | - | (2) | - |
| Tangible assets (non-GAAP) | P | $225,949 | $220,022 | $210,435 | $5,927 | 3% | $15,514 | 7% |
| Common equity ratio (GAAP) | D/O | 10.3% | 10.6% | 10.6% | (27) bps | | (30) bps | |
| Tangible common equity ratio (non-GAAP) | E/P | 7.2 | 7.3 | 7.2 | (10) bps | | (4) bps | |
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "goals," "targets," "initiatives," "potentially," "probably," "projects," "outlook," and "guidance", or similar expressions or future conditional verbs such as "may," "will," "likely," "should," "would," and "could."
Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:
- Negative economic, business, and political conditions, including as a result of the interest rate environment, supply chain disruptions, tariffs, inflationary pressures, and labor shortages that adversely affect the general economy, housing prices, the job market, consumer confidence, and spending habits;
- The general state of the economy and employment, as well as general business and economic conditions, and changes in the competitive environment;
- Our capital and liquidity requirements under regulatory standards and our ability to generate capital and liquidity on favorable terms;
- The effect of changes in our credit ratings on our cost of funding, access to capital markets, ability to market our securities, and overall liquidity position;
- The effect of changes in the level of commercial and consumer deposits on our funding costs and net interest margin;
- Our ability to achieve our financial performance goals and execute on our strategic business initiatives, including the continued expansion of Private Bank and Private Wealth, and our aim to position us as a more innovative, modern, and customer-centric bank;
- The effects of geopolitical instability, including the war in Ukraine and the conflict in the Middle East, on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks;
- Our ability to comply with supervisory requirements and expectations as well as new or amended regulations;
- Liabilities and business restrictions resulting from litigation and regulatory investigations;
- The impact of changes in interest rates on our net interest income, net interest margin, mortgage originations, and mortgage servicing rights, as well as on market liquidity, which could affect our funding sources and ability to originate and distribute financial products in the primary and secondary markets;
- Financial services reform and other current, pending, or future legislation or regulation that could have a negative effect on our revenue and businesses;
- Environmental risks, such as physical or transition risks associated with climate change, and social and governance risks that could adversely affect our reputation, operations, business, and customers;
- A failure in, or breach of, our compliance with laws, as well as operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyberattacks; and
- Management’s ability to identify and manage these and other risks.
In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, balance sheet growth, market conditions, and regulatory considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from, or pay any dividends to, holders of our common stock, or as to the amount of any such repurchases or dividends.
More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 as filed with the Securities and Exchange Commission.
Note: Per share amounts and ratios presented in this document are calculated using whole dollars.
CFG-IR