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Citizens Financial Group CFG reported third-quarter 2025 adjusted earnings per share (EPS) of $1.05, which surpassed the Zacks Consensus Estimate of $1.02 per share. The metric rose 32.9% from the year-ago quarter.
Results benefited from a rise in non-interest income and net interest income (NII). The increase in loan and deposit balances was also encouraging. However, a rise in expenses was a major headwind.
Net income (GAAP basis) was $494 million, which rose 29% from the prior-year quarter.
Total revenues in the third quarter were $2.12 billion, which topped the Zacks Consensus Estimate by 0.9%. The top line rose 11% year over year.
Citizens Financial’s NII rose 9% year over year to $1.49 billion, driven by higher net interest margin. Our estimate for NII was the same as reported.
The net interest margin (NIM) expanded 23 basis points year over year to 3%, driven by time-based benefits of non-core runoff and terminated swap impacts, as well as fixed-rate asset repricing benefits. Our estimate for NIM was 2.9%.
Non-interest income increased 18% year over year to $630 million, led by higher capital markets fees and wealth fees. Our estimate for non-interest income was $608.4 million.
Non-interest expenses increased 6% year over year to $1.33 billion. The rise was primarily due to higher salaries and employee benefits, an increase in other operating expenses, and investment in technology. Our estimate for the metric was the same as reported. Underlying non-interest expenses increased 7% from the prior-year quarter.
The efficiency ratio of 63% in the third quarter decreased from 66.2% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
As of Sept. 30, 2025, period-end total loans and leases were $140.9 billion, up 1% from the prior quarter. Total deposits rose 3% to $180 billion. Our estimate for total loans and deposits was $136.7 billion and $174.8 billion, respectively.
As of Sept. 30, 2025, Citizens Financial’s provision for credit losses was $154 million, which declined 10% from the year-ago quarter. Our estimate for the metric was $173.3 million.
The allowance for credit losses decreased 4% year over year to $2.2 billion.
Net charge-offs decreased 16% on a year-over-year basis to $162 million. Our estimate for the metric was $166.4 million.
Non-accrual loans and leases declined 10% from the year-ago quarter to $1.52 billion. Our estimate for the metric was $1.61 billion.
As of Sept. 30, 2025, the tier 1 leverage ratio was 9.4%, unchanged from the prior-year quarter.
The common equity tier 1 capital ratio was 10.7%, up from 10.6% in the prior-year quarter. The total capital ratio was 13.9%, unchanged from the prior-year quarter.
In the third quarter of 2025, CFG repurchased $75 million of common shares and paid out $184 million in common dividends.
The company also announced a quarterly common stock dividend of 46 cents per share, marking an increase of 9.5% from the prior quarter. The dividend will be paid out on Nov. 12, 2025, to shareholders of record at the close of business on Oct. 29.
Citizens Financial’s solid third-quarter results highlight the company’s balanced growth across NII and fees, improving efficiency and stable credit quality. While expense pressure remains a concern, CFG’s solid capital base, strong liquidity and shareholder-friendly policies provide a favorable backdrop for sustainable performance ahead.
Citizens Financial Group, Inc. Price, Consensus and EPS Surprise
Citizens Financial Group, Inc. price-consensus-eps-surprise-chart | Citizens Financial Group, Inc. Quote
Currently, Citizens Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of Hawaii BOH is scheduled to announce third-quarter 2025 numbers on Oct. 27.
Over the past seven days, the Zacks Consensus Estimate for BOH’s quarterly earnings has been unchanged at $1.13 per share.
Huntington Bancshares Inc. HBAN is slated to report third-quarter 2025 results on Oct. 17.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 38 cents per share.
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This article originally published on Zacks Investment Research (zacks.com).
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