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Citizens Financial Group Q2 Net Income Soars to $587M

Citizens Financial Group reported second-quarter 2026 net income of $587 million, up from $517 million in the first quarter and $436 million a year earlier.

Diluted earnings per share rose to $1.30 from $1.13 in the prior quarter and $0.92 in the second quarter of 2025. Revenue increased to $2.283 billion from $2.168 billion in the first quarter and $2.037 billion a year ago.

Pre-provision profit climbed to $889 million, compared with $790 million in the first quarter and $718 million in the year-ago period. The company’s provision for credit losses fell to $134 million from $140 million in the first quarter and $164 million in the second quarter of 2025.

Net interest income increased to $1.631 billion from $1.562 billion in the first quarter and $1.437 billion a year earlier. Net interest margin widened to 3.17% from 3.14% in the first quarter and 2.95% a year ago.

Noninterest income rose to $652 million from $606 million in the prior quarter and $600 million a year earlier. Capital markets fees increased to $153 million from $134 million in the first quarter and $105 million a year ago. Wealth fees rose to $102 million from $100 million and $88 million. Service charges and fees increased to $117 million from $112 million and $111 million.

Noninterest expense was $1.394 billion, up from $1.378 billion in the first quarter and $1.319 billion a year earlier. Salaries and employee benefits declined to $745 million from $758 million in the first quarter, but were up from $681 million a year earlier. Outside services rose to $174 million from $162 million in the first quarter and $169 million a year ago.

The efficiency ratio improved to 61.1% from 63.6% in the first quarter and 64.8% in the second quarter of 2025. Return on average tangible common equity was 13.9%, up from 12.2% in the prior quarter and 11.0% a year earlier.

Loans and leases ended the quarter at $147.5 billion, up from $143.7 billion in the first quarter and $139.3 billion a year earlier. Average loans and leases rose to $146.1 billion from $143.4 billion and $138.8 billion. Period-end deposits increased to $185.6 billion from $184.0 billion in the first quarter and $175.1 billion a year earlier.

Average deposits climbed to $183.6 billion from $181.3 billion in the first quarter and $174.1 billion a year earlier. Private bank deposits reached $17.8 billion. The loan-to-deposit ratio was 79.5% at quarter-end, compared with 78.1% in the first quarter and 79.6% a year ago.

Credit quality improved. Net charge-offs were 0.37% of average loans, down from 0.39% in the first quarter and 0.48% a year earlier. Nonaccrual loans and leases fell to 0.97% from 1.04% in the first quarter and 1.09% a year ago. The allowance for credit losses to loans and leases was 1.48%, down from 1.52% in the first quarter and 1.59% a year earlier.

Citizens ended the quarter with a common equity tier 1 ratio of 10.4%, compared with 10.5% in the first quarter and 10.6% a year earlier. Tangible book value per share rose to $38.29 from $37.94 in the first quarter and $35.23 a year ago.

The company declared a quarterly common stock dividend of $0.46 per share, unchanged from the prior quarter. Today the company's shares have moved 3.81% to a price of $73.83. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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