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Oct 16, 2026, 6:34 AM ETFinancial Services

Citizens Financial Group, Inc. — Third Quarter 2026 Earnings Summary

CFGCITIZENS FINANCIAL GROUP INC
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Financial Performance

  • Net income was $636 million, up 29% year-over-year (YoY) and 8% quarter-over-quarter (QoQ); earnings per share (EPS) was $1.41, up 34% YoY and 8% QoQ.
  • Total revenue was $2,322 million, up 10% YoY and 2% QoQ.
  • Net interest income (NII) was $1,675 million, up 13% YoY and 3% QoQ; Net Interest Margin (NIM) was 3.19%, up 19 basis points (bps) YoY and 2 bps QoQ.
  • Noninterest income was $647 million, up 3% YoY and down 1% QoQ.
  • Noninterest expense was $1,393 million, up 4% YoY and stable QoQ.
  • Pre-provision net revenue (PPNR) was $929 million, up 19% YoY and 4% QoQ.
  • Provision for credit losses was $125 million, down 19% YoY and 7% QoQ.
  • Return on tangible common equity (ROTCE) was 15.1%, up 333 bps YoY and 117 bps QoQ.
  • Efficiency ratio was 60.0%, improving 305 bps YoY and 110 bps QoQ.
  • Operating leverage was positive 5.3% YoY and 1.8% QoQ.
  • Average loans and leases were $147.4 billion, up 5% YoY and 1% QoQ.
  • Period-end loans and leases were $148.2 billion, up 5% YoY and 0.5% QoQ on a spot basis.
  • Period-end deposits were $185.2 billion, up 3% YoY and stable QoQ.
  • Net charge-offs (NCO) were $137 million, or 37 bps of average loans, stable QoQ and down 9 bps YoY.
  • Allowance for credit losses (ACL) coverage ratio was 1.47%, down 9 bps YoY and 1 bps QoQ.
  • Nonaccrual loans were $1.46 billion, down 4% YoY and up 2% QoQ.
  • Total capital returned to shareholders was $322 million ($197 million in dividends, $125 million in repurchases).

Guidance and Future Outlook

  • Management expressed confidence in positioning and outlook for Q4 2026 and 2027.
  • Strategic focus remains on executing initiatives, advancing AI, technology, and cybersecurity agendas, and attracting talent.

Business Segments and Product Lines

  • Private Bank spot deposits were $18.5 billion, up approximately $750 million (4%) QoQ; Private Bank progress contributed $0.16 to EPS.
  • Wealth fees reached a record $109 million, up 17% YoY, driven by higher advisory fees and growth in assets under management (AUM).
  • Capital markets fees were $149 million, down 10% YoY, reflecting lower loan syndication and debt/equity underwriting, partially offset by higher M&A fees.
  • Mortgage banking fees were $35 million, down 29% YoY, primarily due to a $13 million decline in net MSR valuation.
  • Service charges and fees increased 7% YoY to $120 million, driven by higher overdraft fees.
  • Foreign exchange and derivative products fees increased 17% YoY to $49 million due to higher client hedging activity.
  • Loan growth was led by the Private Bank, retail, home equity, and mortgage, partially offset by commercial real estate paydowns and Non-Core portfolio runoff.

Market and Competitive Landscape

  • The external environment experienced significant volatility, yet the bank delivered attractive revenue and earnings growth.
  • Total cost of funds increased 3 bps QoQ to 1.88%; interest-bearing deposit costs increased 5 bps QoQ to 2.13%.
  • Average effective duration of the securities portfolio was 4.6 years as of September 30, 2026.

Risks and Challenges

  • Tangible book value (TBV) per share decreased 6.6% QoQ to $35.78, negatively impacted by higher long-term rates on investment securities and swap portfolios.
  • Commercial real estate balances decreased, contributing to a lower loss content profile but also impacting loan mix.
  • Non-Core portfolio runoff continues to impact asset composition.

Management Commentary and Tone

  • Chairman and CEO Bruce Van Saun stated the bank delivered attractive revenue and earnings growth despite external volatility.
  • Management highlighted continued Private Bank & Wealth buildout as a driver for increased salaries and employee benefits.
  • The tone was confident regarding the execution of strategic initiatives and future outlook.

Other Key Points

  • The Board of Directors declared a quarterly common stock dividend of $0.52 per share, a 13% increase ($0.06) from the prior quarter, payable November 13, 2026.
  • The Board increased the capacity of the common share repurchase program to $1.95 billion, an increase of $1.3 billion over the remaining $650 million capacity from the June 2025 authorization.
  • CET1 capital ratio was 10.5% as of September 30, 2026.
  • Loan-to-deposit ratio (spot) was 80.0%.
  • The effective tax rate was 20.9%, down from 22.3% in the prior quarter due to discrete tax benefits.