Citizens Financial Group, Inc. Reports First Quarter 2025 Net Income of $373 million and EPS of $0.77  CET1 ratio of 10.6%; LDR 77.5%

Rhea-AI Summary

Citizens Financial Group (NYSE: CFG) has reported its Q1 2025 financial results with net income of $373 million and earnings per share of $0.77. The company maintained strong financial metrics with a CET1 ratio of 10.6% and a loan-to-deposit ratio of 77.5%.

The company announced an agreement to sell its purchased student loan portfolio, which will accelerate Non-Core rundown and free up capital and liquidity. Citizens' board declared a quarterly dividend of $0.42 per share, payable on May 14, 2025.

As of March 31, 2025, Citizens reported total assets of $220.1 billion. The bank maintains approximately 3,100 ATMs and 1,000 branches across 14 states and the District of Columbia.

Positive

• Net income of $373 million in Q1 2025
• Strong CET1 ratio of 10.6% indicating solid capital position
• Strategic sale of student loan portfolio to free up capital
• Maintained quarterly dividend of $0.42 per share

Negative

• Heightened uncertainty noted for Q2 due to policy decisions

Insights

Financial Analyst

Citizens Financial's Q1 results reveal a bank executing its strategic priorities while maintaining solid fundamentals. The $373 million net income and $0.77 EPS align with management expectations, though without year-over-year comparisons or analyst estimates for context. The 10.6% CET1 ratio indicates robust capitalization well above regulatory minimums, while the 77.5% loan-to-deposit ratio shows disciplined balance sheet management with ample liquidity.

The planned divestiture of the purchased student loan portfolio represents a strategic capital optimization move. By accelerating the Non-Core rundown, management is streamlining operations and freeing capital that can potentially be redeployed toward higher-return opportunities or returned to shareholders. This move aligns with industry trends of focusing on relationship-driven core banking while shedding lower-margin, capital-intensive assets.

The $0.42 quarterly dividend maintenance signals confidence in sustained earnings power, representing an annualized yield of approximately 4.7% at current share price. The continued investment in Private Banking highlights a strategic shift toward fee-based revenue streams that are less vulnerable to interest rate fluctuations.

CEO Van Saun's cautious commentary about "heightened uncertainty given policy decisions" likely references the challenging interest rate environment and potential regulatory changes that could impact the banking sector. However, the emphasis on "strong business positioning" suggests management believes their diversified business model and conservative balance sheet management provide adequate buffers against these headwinds.

Banking Strategy Expert

CFG's strategic execution deserves attention, particularly the simultaneous moves to divest non-core assets while building higher-margin capabilities. The student loan portfolio sale accomplishes multiple objectives: it simplifies the balance sheet, potentially improves regulatory ratios, creates liquidity optionality, and removes assets that typically carry relatively thin margins compared to relationship-based lending.

The Private Bank/Private Wealth buildout represents a calculated pivot toward higher-value client relationships that generate recurring fee income and cross-selling opportunities. This strategy typically yields 15-25% higher returns on capital than mass-market retail banking and aligns with demographic trends favoring wealth management services.

With $220.1 billion in assets, Citizens occupies a strategically important middle ground in the banking ecosystem—large enough to achieve economies of scale in technology and operations, yet nimble enough to adapt to regional market conditions across its 14-state footprint. The approximately 1,000 branches provide valuable distribution channels while the digital banking emphasis acknowledges evolving consumer preferences.

Management's reference to "heightened uncertainty given policy decisions in Washington" likely signals concerns about potential regulatory shifts affecting regional banks, possible changes to capital requirements, or fiscal policy impacts on interest rate pathways. The emphasis on "financial and operating discipline" suggests a conservative approach to growth and risk management in this environment.

Citizens' balanced approach—maintaining strong capital levels while pursuing targeted growth initiatives—positions the bank to weather near-term economic uncertainty while laying groundwork for longer-term competitive advantages in its chosen segments.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reported first quarter financial results. The earnings press release, investor presentation, and financial supplement are available at http://investor.citizensbank.com. In addition, these materials will be furnished to the Securities and Exchange Commission (SEC) on a Form 8-K and will be available on the SEC website at www.sec.gov.

“We were pleased with our execution in Q1 as we delivered financial results in line with our expectations, as well as strong progress on our strategic initiatives like the Private Bank/Private Wealth buildout,” said Chairman and CEO Bruce Van Saun. “We struck an agreement to sell our purchased student loan portfolio, accelerating Non-Core rundown and freeing capital and liquidity. Our balance sheet remains robust. While the second quarter has seen heightened uncertainty given policy decisions in Washington, we believe we will be able to successfully navigate through the challenges given our strong business positioning and our financial and operating discipline.”

Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on May 14, 2025 to shareholders of record at the close of business on April 30, 2025.

As previously announced, Citizens will host a live conference call to review its first quarter 2025 financial results. Interested parties may access the call and related materials through the following details:

Conference Call

Time: 8:00 am ET

Dial-in: (800) 369-1703, conference ID 1679767

Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations.

Replay Information: A replay of the conference call will be available beginning at 12:00 pm ET on April 16, 2025 through May 16, 2025. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $220.1 billion in assets as of March 31, 2025. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,100 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X, LinkedIn or Facebook.

Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “prospects,” “outlook,” “guidance” or similar expressions or future or conditional verbs such as “may,” “will,” “likely,” ”should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the United States Securities and Exchange Commission.

CFG-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20250416089036/en/

Media: Peter Lucht — 781.655.2289

Investors: Kristin Silberberg — 203.900.6854

Source: Citizens Financial Group, Inc.

FAQ

What is Citizens Financial Group's (CFG) Q1 2025 earnings per share?

Citizens Financial Group reported earnings per share (EPS) of $0.77 for Q1 2025.

When will CFG pay its next quarterly dividend?

CFG will pay a quarterly dividend of $0.42 per share on May 14, 2025 to shareholders of record as of April 30, 2025.

What is Citizens Financial Group's (CFG) total asset value as of Q1 2025?

Citizens Financial Group reported total assets of $220.1 billion as of March 31, 2025.

What strategic moves did CFG announce in Q1 2025?

CFG announced an agreement to sell its purchased student loan portfolio to accelerate Non-Core rundown and free up capital and liquidity.

What are CFG's key financial metrics for Q1 2025?

CFG reported a CET1 ratio of 10.6% and a loan-to-deposit ratio of 77.5% in Q1 2025.