Citizens Financial Group (CFG) investor relations material

Executive summary

• EPS rose 41% year-over-year and 15% sequentially to $1.30, with net income up 35% year-over-year to $587 million, driven by strong pre-provision net revenue and record total revenue.

• ROTCE increased to 13.9%, up 172 bps sequentially and 286 bps year-over-year.

• Record revenue growth fueled by NII and fee income, with positive operating leverage of 6.4% year-over-year and 4% sequentially.

• Private Bank momentum continued, contributing $0.15 to EPS and achieving ROE above 25%.

• Strategic initiatives, including Private Bank expansion, digital transformation, and AI deployment, are progressing well.

Financial highlights

• Net interest income rose 14% year-over-year and 4% sequentially to $1.63 billion, with NIM at 3.17%, up 22 bps year-over-year and 3 bps sequentially.

• Noninterest income increased 9% year-over-year and 8% sequentially, led by Capital Markets (fees up 46% year-over-year) and Wealth (fees up 16% year-over-year).

• Total revenue reached $2.28 billion, up 12% year-over-year and 5% sequentially.

• Efficiency ratio improved to 61.1%, down 247 bps sequentially and 368 bps year-over-year.

• Returned $422 million to shareholders in Q2 via $197 million in dividends and $225 million in share repurchases.

Outlook and guidance

• Q3 2026: NII expected to rise 2.5%-3.5%, noninterest income stable to slightly down, expenses stable to slightly up, charge-offs stable to down, CET1 to end Q3 at ~10.5%.

• Full-year 2026: Revenue trending above initial guidance, on track for over 600 bps positive operating leverage.

• Clear path to 16%-18% ROTCE by end of 2027, with NIM projected at 3.22%-3.27% for Q4 2026 and 3.30%-3.50% for Q4 2027.