Citizens Financial Group (CFG) Q4 2025 earnings summary

Executive summary

• Q4 2025 EPS rose 36% year-over-year to $1.13, with full-year EPS of $3.86, up 19% year-over-year, driven by strong pre-provision net revenue growth and expanding NIM.

• Net income for Q4 2025 was $528M, up 32% year-over-year, and full-year net income reached $1.8B.

• Positive operating leverage of 1.3% sequentially and 5.2% year-over-year in Q4, and 1.25% for the full year.

• Private Bank exceeded targets, contributing over 7% to EPS, achieving 25% ROE, and ending 2025 with $14.5B in deposits.

• Maintained a strong capital position, with CET1 ratio at 10.6% and a total shareholder payout ratio of 80% for FY2025.

Financial highlights

• Net interest income (NII) for Q4 2025 was $1,537M, up 3% sequentially and 9% year-over-year; FY2025 NII was $5,853M, up 4%.

• Noninterest income for Q4 2025 was $620M, down 2% sequentially but up 8%-10% year-over-year; FY2025 noninterest income was $2,394M, up 11%.

• Total revenue for Q4 2025 was $2,157M, up 2% sequentially and 9% year-over-year; FY2025 total revenue was $8,247M, up 6%.

• Efficiency ratio improved to 62.2% in Q4 2025, down 79 bps sequentially and 403 bps year-over-year.

• Provision for credit losses was $137M in Q4 2025, down from $154M in Q3 2025 and $162M in Q4 2024.

Outlook and guidance

• FY2026 NII expected to grow 10%-12% with NIM expanding 4-5 bps per quarter, targeting 3.25% by Q4 2026.

• Noninterest income projected to rise 6%-8%, led by Capital Markets and Wealth.

• Expenses projected to rise 4.5% or decline 4.5% depending on cost reduction initiatives; operating leverage in excess of 500 bps.

• Net charge-offs expected in the mid to high 30s bps; CET1 ratio to be managed at 10.5%-10.6%.

• Share repurchases of $700M-$850M planned for 2026; medium-term ROTCE target of 16%-18% by second half of 2027.