Citizens Financial Group Q4 Earnings Call Highlights

2 days ago 3

MarketBeat

Wed, January 21, 2026 astatine 10:27 AM CST 9 min read

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Citizens reported Q4 EPS of $1.13 (up 36% YoY) and a nett involvement borderline of 3.07% (+7 bps sequential), driven by NII growth, beardown wealthiness and capital-markets fees, and affirmative operating leverage.
Balance-sheet and recognition trends improved with mean and period-end loans up ~1% (2% ex non‑core runoff), spot deposits +2% to $183B, nett charge-offs easing to 43 bps, an allowance astatine 1.53%, and a CET1 ratio of 10.6%; the steadfast returned $326M successful Q4 and $1.4B successful 2025 (including $600M of buybacks).
For 2026 absorption guides to NII maturation of 10–12%, NIM enlargement (~4–5 bps/quarter toward ~3.25%), non‑interest income +6–8%, loans and earning assets growth, expenses up ~4.5% but operating leverage >500 bps, and planned buybacks of $700–850M, portion pursuing the “Reimagine the Bank” programme targeting ~$450M of run‑rate benefits by end‑2028 (including AI and call‑center modernization).
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Citizens Financial Group (NYSE:CFG) executives utilized the company’s fourth-quarter net telephone to item year-end momentum, advancement connected strategical initiatives, and an upbeat outlook for 2026 driven by continued nett involvement borderline expansion, interest maturation successful superior markets and wealth, and improving recognition trends.

Chairman and CEO Bruce Van Saun said Citizens “finished the twelvemonth with different beardown quarter,” pointing to a seven-basis-point sequential enlargement successful nett involvement borderline (NIM), beardown wealthiness and superior markets fees, and “positive operating leverage of 1.3% sequential and 5.2% year-on-year.” He besides cited “favorable recognition trends” and what helium called a “robust equilibrium expanse crossed capital, liquidity, and funding.”

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CFO Anoue Banerjee, successful his archetypal net telephone successful the role, reported fourth-quarter EPS of $1.13, up 8% from the anterior 4th and 36% year-over-year, with a 12.2% instrumentality connected tangible communal equity (ROTC). Net involvement income accrued 3% quarter-over-quarter, supported by NIM of 3.07% (up 7 ground points). Banerjee said 3 ground points of the enlargement came from “time-based benefits” tied to non-core runoff and a reduced interaction from terminated swaps, with the remainder driven by fixed-rate plus repricing and little backing costs, partially offset by little plus yields.

Non-interest income declined 2% sequentially but roseate 10% year-over-year connected an underlying basis. Wealth posted different grounds quarter, expanding 5% sequentially and 31% year-over-year, supported by advisory fees and fee-based AUM growth. Capital markets produced its “third-best 4th ever,” up 16% year-over-year but down 16% from an unusually beardown 3rd quarter. Management said respective M&A and equity deals were pushed into 2026 owed to authorities shutdown impacts, and it expects astir $20 cardinal of related fees to beryllium recognized successful the archetypal quarter.