CFG · Citizens Financial Group, Inc.

Citizens Financial Group delivered strong first quarter 2026 results, marked by robust earnings growth, margin expansion, and improving credit quality. Net income rose 39% YoY to $517 million, driven primarily by a 27% YoY increase in pre-provision profit ($790 million), reflecting both higher net interest income (+12% YoY) and noninterest income (+11% YoY). The net interest margin expanded 24 bps YoY to 3.14%, supported by the runoff of Non-Core assets, reduced impact from terminated swaps, fixed-rate asset repricing, and lower deposit funding costs—interest-bearing deposit costs fell 16 bps QoQ to 2.04%. Fee growth was led by Capital Markets (+34% YoY) and Wealth (+23% YoY), offset partially by mortgage banking declines. Credit metrics strengthened meaningfully: net charge-offs fell to 39 bps (down 19 bps YoY), ACL coverage remained solid at 1.52%, and nonaccrual loans declined to 1.04% of total loans. Management highlighted continued momentum in the Private Bank—which contributed $0.11 to EPS—and progress on the multi-year 'Reimagine the Bank' initiative, targeting $450 million in pre-tax run-rate benefits by end-2028. Forward guidance includes an expectation to achieve 16–18% ROTCE by end-2027 and a net interest margin of 3.30–3.50% by 4Q27. The board also declared a $0.46 quarterly dividend, maintaining capital return discipline amid ongoing share repurchases ($300 million executed in Q1). These results demonstrate execution against strategic priorities amid macro uncertainty, reinforcing confidence in medium-term targets.