Citizens Financial Group, Inc. has reported strong financial results for the fourth quarter of 2025, with notable increases in net income and earnings per share (EPS). The company's net income for the quarter was $528 million, marking a significant 32% year-over-year (YoY) increase, while EPS stood at $1.13, reflecting a substantial 36% YoY growth.
The positive performance was also evident in the underlying basis metrics, with a 5.2% YoY increase in net income and a 19% YoY increase in EPS. Notably, the private bank made a significant contribution to the EPS, reflecting a 7% accretion to the bottom line at a 25% return on equity (ROE).
Total revenue for the quarter reached $2,157 million, representing a 9% YoY increase. Net interest income saw a 9% YoY increase, reaching $1.5 billion, driven primarily by a higher net interest margin. The net interest margin expanded by 20 basis points to 3.07%, largely due to the benefit of non-core runoff and terminated swap impacts, as well as fixed-rate asset repricing benefits, partially offset by lower asset yields.
Noninterest income for the quarter was $620 million, reflecting an 8% YoY increase. Capital markets fees and wealth fees were strong contributors to this growth, reaching an all-time high. Underlying noninterest income increased by 10% YoY, driven by higher debt and equity underwriting, loan syndication fees, and growth in assets under management (AUM).
The positive financial performance was supported by effective cost management, as evidenced by a 2% YoY increase in noninterest expense, reaching $1.3 billion. The company achieved positive operating leverage of 1.3% quarter-over-quarter (QoQ) and 5% YoY. Salaries and employee benefits, which increased by 9% YoY, were primarily attributed to hiring related to the private bank and private wealth buildout, as well as strong capital markets fee performance.
Moreover, the company's credit quality remained favorable, with net charge-offs decreasing by 3 basis points QoQ. The average deposit increased by 2% QoQ, driven by growth in the private bank and commercial sectors. The strong liquidity profile was reflected in the spot loan-to-deposit ratio of 77.8%.
As a result of these announcements, the company's shares have moved 0.35% on the market, and are now trading at a price of $60.82. If you want to know more, read the company's complete 8-K report here.
