Dj Citizens Financial Group Sells $400M Of 5.299% Fixed-Reset Subordinated Notes Due 2036

Citizens Financial Group’s fourth quarter results were greeted by a positive market response, as revenue and adjusted earnings per share both surpassed Wall Street expectations. Management pointed to net interest margin expansion, increased wealth and capital markets fees, and disciplined expense control as the principal drivers behind performance. CEO Bruce Van Saun emphasized that the private bank franchise ended the year with $14.5 billion in deposits and $10 billion in client assets, contributing meaningfully to pre-tax income. Van Saun also highlighted the accelerated reduction of non-core assets and steady improvements in credit quality, stating, “We managed this business to a 25% ROE for the year.”

Citizens Financial Group (CFG) Q4 CY2025 Highlights:

• Revenue: $2.16 billion vs analyst estimates of $2.14 billion (9.2% year-on-year growth, 0.7% beat)
• Adjusted EPS: $1.13 vs analyst estimates of $1.11 (2.2% beat)
• Adjusted Operating Income: $677 million vs analyst estimates of $810 million (31.4% margin, 16.4% miss)
• Market Capitalization: $27.22 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Citizens Financial Group’s Q4 Earnings Call

• Ryan Nash (Goldman Sachs) asked about the bottom-line impact of the ‘Reimagine the Bank’ program. CEO Bruce Van Saun explained benefits would flow through as the program matures, with a focus on balancing reinvestment and expense discipline.
• Erika Najarian (UBS) inquired about loan growth drivers and the reduced drag from non-core runoff. Van Saun and President Brendan Coughlin outlined the private bank’s idiosyncratic growth and improved commercial loan demand, highlighting reduced non-core asset headwinds.
• Manan Gosalia (Morgan Stanley) questioned the conservatism in fee income guidance given strong pipelines. Management explained the cautious approach reflected uncertainty around deal timing and external factors like tariffs, despite strong capital markets and wealth momentum.
• Gerard Cassidy (RBC) sought details on private bank loan categories and long-term loan-to-deposit ratio trends. Coughlin cited balanced growth across C&I, residential, and multifamily lending, with expectations for the loan-to-deposit ratio to remain stable.
• David Shibarini (Jefferies) probed the efficiency ratio outlook and AI investments. Van Saun and Coughlin said swap terminations and technology upgrades would drive efficiency, with targeted AI use cases in call centers, credit analytics, and fraud prevention.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be monitoring (1) the pace of deposit and loan growth in the private bank and commercial segments, (2) progress on the ‘Reimagine the Bank’ technology initiatives and their impact on efficiency, and (3) sustained improvements in credit quality, particularly within the commercial real estate portfolio. Execution on new product rollouts and continued expansion in core metropolitan markets will also be key for tracking Citizens Financial Group’s strategic progress.

Citizens Financial Group currently trades at $63.38, up from $59.81 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).