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Citizens Financial Group Reports Strong Q2 Earnings

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 same period last year.

Pre-provision profit climbed to $889 million, a 13% increase from $790 million in the first quarter and up 24% from $718 million a year ago. Revenue increased to $2.283 billion from $2.168 billion in the prior quarter and $2.037 billion in the second quarter of 2025.

Net interest income rose to $1.631 billion, up 4% quarter over quarter and 14% year over year. Net interest margin improved to 3.17% from 3.14% in the first quarter and 2.95% a year earlier.

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

Noninterest expense increased to $1.394 billion from $1.378 billion in the first quarter and $1.319 billion a year earlier. Salaries and employee benefits fell to $745 million from $758 million, but were up from $681 million a year ago. Outside services rose to $174 million from $162 million in the prior quarter and $169 million a year earlier. Other operating expense increased to $172 million from $147 million in the first quarter.

The efficiency ratio improved to 61.1% from 63.6% in the first quarter and 64.8% a year earlier. Return on tangible common equity rose to 13.9% from 12.2% and 11.0%.

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 increased to $146.1 billion from $143.4 billion and $138.8 billion. Commercial loans and leases rose to $77.3 billion from $74.6 billion, while retail loans increased to $70.2 billion from $69.1 billion.

Deposits ended the quarter at $185.6 billion, up 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 and $174.1 billion. Checking with interest deposits increased to $40.3 billion from $37.7 billion in the prior quarter and $34.9 billion a year earlier, while noninterest-bearing demand deposits declined to $40.9 billion from $41.7 billion but were up from $38.0 billion a year ago.

Private bank deposits reached $17.8 billion, and the company said private bank progress contributed $0.15 to earnings per share, up from $0.11 in the first quarter.

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

Capital remained steady. CET1 was 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 and $35.23.

The board declared a quarterly dividend of $0.46 per share. Today the company's shares have moved 0.14% to a price of $71.60. For more information, read 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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