Citizens Financial Group (CFG) Q3 2026 earnings summary

Executive summary

• Q3 diluted EPS was $1.41, up 8% QoQ and 34% YoY; net income was $636 million, up 29% YoY.

• Record revenue of $2.322 billion and PPNR of $929 million supported 15.1% ROTCE and 5.3% YoY positive operating leverage.

• Management targets 16%-18% ROTCE by year-end 2027 and expressed confidence in Q4 and 2027 momentum.

Financial highlights

• Revenue was $2.322 billion, up 2% QoQ and 10% YoY; NII was $1.675 billion, up 2.7% QoQ and 13% YoY.

• PPNR was $929 million, up 4.5% QoQ and 18.6% YoY; expenses were $1.393 billion, stable QoQ and up 4% YoY.

• Noninterest income was $647 million, down 1% QoQ and up 3% YoY; provision for credit losses was $125 million, down 19% YoY.

• Net income available to common shareholders was $599 million, up 8% QoQ and 31% YoY; average deposits were $183.7 billion, up 4% YoY.

• Wealth fees reached a record $109 million, up 7% QoQ and 17% YoY; mortgage fees included a negative $13 million MSR valuation result.

Outlook and guidance

• Q4 NII is expected to rise 2.5%-3% QoQ; noninterest income is expected up 4%-5% and noninterest expense up ~1%.

• Q4 net charge-offs are expected stable to slightly lower; CET1 outlook is 10.6%-10.7%, with $200 million of share repurchases planned.

• NIM target is 3.30%-3.50% by Q4 2027; ROTCE target is 16%-18% by year-end 2027.

• Reimagine the Bank targets $225 million of annualized pretax benefits exiting 2027 and at least $450 million exiting 2028; benefits are incremental to the ROTCE target.