Citizens Financial Group (CFG) UBS Financial Services Conference 2026 summary

Business evolution and strategic expansion

• Built out industry verticals and expanded from a regional to a national middle-market focus over the past decade, with significant growth in Florida, California, and New York City.

• Shifted from geographic to industry-focused coverage, hiring bankers to serve larger clients and entering new markets through acquisitions and talent from First Republic and JMP.

• Enhanced offerings through boutique M&A firm acquisitions, leading to dominance in sectors like gaming and digital infrastructure.

• Integrated private banking and wealth management with commercial banking, leveraging the "One Citizens" approach for cross-selling and client referrals.

• Continued investment in Treasury Solutions and merchant services, aiming for full-wallet relationships in expansion and core markets.

Private capital and capital markets strategy

• Early investment in private equity and direct lending, with expanded services post-JMP acquisition, including equity, bonds, and fund lending.

• Holistic approach to private capital clients, offering subscription lines, fund lending, and advisory for continuation vehicles and M&A.

• Flexible execution across private credit, CLOs, BDCs, and bank markets, adapting to market conditions and client needs.

• Capital markets revenue expected to over-index in 2026, with 6%-8% fee growth driven by increased mandates and activity.

• JMP acquisition enabled new fee opportunities with direct lenders and expanded expertise in equity research and capital markets.

Market outlook and growth drivers

• Anticipates a strong M&A and transactional market in 2026, with narrowing bid-ask spreads and robust deal pipelines.

• Loan growth supported by increased revolver utilization, acquisitions, and expansion market activity, especially in Florida, California, and New York.

• Balance sheet optimization continues, reallocating capital to higher-return areas and exiting less profitable relationships.

• AI and process simplification investments expected to drive efficiency and cost savings.

• CapEx cycle showing early signs of pickup, contributing to loan growth expectations.