Citizens Financial Strengthens Advisory Platform With Matrix Deal

Citizens Financial Group CFG has entered into a definitive agreement to acquire substantially all the assets of Matrix Capital Markets Group, a market-leading advisory firm focused on the Downstream Energy & Convenience Retail sector. The transaction is part of CFG’s continued effort to strengthen its sector-focused investment banking and advisory platform.

Founded in 1988 and headquartered in Richmond, VA, Matrix advises convenience retailers and fuel distributors nationwide and completed more than 70 M&A transactions since 2021.

Under the terms of the agreement, Citizens Financial’s wholly owned subsidiary, Citizens JMP Securities, LLC ("CJMPS"), will purchase substantially all the assets of Matrix. Upon closing, Matrix will operate as a division of Citizens JMP Securities. The transaction will be funded entirely with cash and is expected to close in the first quarter of 2026, subject to regulatory approvals. However, the financial terms of the transaction were not disclosed.

Rationale Behind CFG Acquisition Deal

The planned acquisition will enhance CFG’s advisory capabilities in the Downstream Energy & Convenience Retail sector while expanding its sector-focused investment banking platform. By integrating Matrix’s experienced bankers and long-standing client relationships, the company aims to broaden its advisory coverage and strengthen its ability to deliver tailored capital markets solutions.

The move marks a significant step in CFG’s long-term strategy to diversify revenue streams beyond traditional lending activities. By expanding its advisory operations, it is positioned to generate more fee-based income while strengthening relationships across its commercial client base. In 2025, the company’s non-interest income rose 10% year over year to $2.39 billion with management projecting further growth in the range of 6-8% in 2026. Hence, the acquisition of Matrix is expected to further broaden advisory capabilities and enhance fee-based income, supporting revenue diversification and long-term growth.

The deal also reflects a broader trend among regional banks expanding their capital markets and advisory platforms to diversify revenue streams. Last month, Huntington Bancshares HBAN completed the acquisition of three strategic business units from Janney Montgomery Scott, a financial services firm majority-owned by KKR & Co. Inc. KKR. The transaction with KKR added nearly 140 employees and expanded HBAN’s capabilities across M&A advisory, fixed income, equities, and public finance, while strengthening its presence in key markets such as New York, Chicago and Atlanta. Similar to these moves, CFG’s acquisition of Matrix highlights its focus on scaling advisory operations and increasing fee-based income.

CFG’s Prior Inorganic Expansion Efforts

Over the past few years, the company has expanded its advisory business through strategic acquisitions. In 2021, it acquired JMP Group, strengthening its middle-market investment banking capabilities. Earlier, in 2019, CFG expanded its M&A advisory presence with the acquisition of Bowstring Advisors, which became part of Citizens Capital Markets. In 2020, the company further enhanced its corporate finance coverage through the acquisition of Trinity Capital.

Beyond advisory expansion, CFG has also pursued broader strategic growth initiatives. The acquisitions of Investors Bancorp and 80 East Coast branches from HSBC Holdings strengthened its footprint in key metropolitan markets. These transactions collectively expanded product capabilities, geographic reach and fee-generation capacity.

CFG’s Price Performance & Zacks Rank

Over the past six months, shares of Citizens Financial have risen 34.5%, outperforming the industry’s growth of 18.6%.

CFG currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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