Citizens Financial Group, Inc. (CFG) First Quarter 2025 Results: Net Income Surges to \(373 Million, EPS at \)0.77, Strong Capital and Liquidity
Source: Citizens Financial Group 8-K Q1 2025 Earnings Release
Citizens Financial Group, Inc. (NYSE: CFG), one of the largest and most diversified financial institutions in the United States, announced authoritative first quarter 2025 financial results. The bank reported net income of \(373 million and earnings per share (EPS) of \)0.77, demonstrating resilience amidst economic uncertainty and disciplined capital management.
Key Statistical Highlights for Q1 2025: - Net income: \(373 million (up 12% YoY) - **Diluted EPS:** \)0.77 (up 18% YoY) - Return on average tangible common equity (ROTCE): 9.6% (up 78 bps YoY) - Common Equity Tier 1 (CET1) Ratio: 10.6% (stable YoY, exceeds regulatory minimum) - Loan-to-deposit ratio (LDR): 77.5% (improved by 365 bps YoY) - Tangible book value (TBV) per share: \(33.97 (up 13% YoY) - **Total period-end assets:** \)220.1 billion - Spot deposits: \(177.6 billion (+2% QoQ) - **Net interest income (NII):** \)1.39 billion (-4% YoY) - Net interest margin (NIM): 2.90% (down 1 bp YoY) - Provision for credit losses: \(153 million (down \)18 million YoY) - Net charge-offs ratio: 0.58% (up 8 bps YoY, or 0.51% ex-Non-Core transaction)
CFG demonstrated financial discipline as pre-provision net revenue (PPNR) landed at \(621 million and the underlying efficiency ratio came in at 67.9%. Core loans increased ~1% sequentially, while the company accelerated derisking through the sale of approximately \)1.9 billion in non-core education loans, boosting capital flexibility. During Q1, $200 million of these loans settled; the remainder will settle ratably each quarter through 2025.
Commentary from CFG CEO Bruce Van Saun:
“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… Our balance sheet remains robust…we believe we will be able to successfully navigate through the challenges given our strong business positioning and our financial and operating discipline.”
CFG also increased its focus on asset quality, maintaining strong allowance for credit losses (ACL) coverage of 1.61% and improving its ratio of allowance for credit losses to nonaccrual loans to 140%. The NCO ratio of 0.58% included a 7 bps impact from the Non-Core transaction, and excluding this, it was a stable 0.51%.
Strategic Capital Actions: - Dividend: Quarterly cash dividend declared at \(0.42 per share, payable May 14, 2025 to shareholders of record as of April 30, 2025. - **Share Repurchases:** CFG repurchased \)200 million in common shares in Q1, supporting tangible book value growth. - Private Bank Growth: Private Bank deposits grew \(1.7 billion QoQ to \)8.7 billion, up $6.3 billion YoY, reinforcing CFG’s market leadership in wealth management.
Liquidity & Risk Management: CFG’s spot loan-to-deposit ratio improved to 77.5%—a sign of prudent liquidity management. The pro forma Liquidity Coverage Ratio (LCR) stood at 122%, comfortably above the regulatory 100% threshold for Category 1 banks, demonstrating strong balance sheet risk controls. “CFG’s approach positions it to thrive amid potential macroeconomic headwinds,” says PocketQuant research.
Noninterest Income and Expenses: - Noninterest income: \(544 million (+5% YoY), with service charges, wealth fees, mortgage banking, and FX revenue all rising. Capital markets fees declined (-\)18 million YoY), reflecting industry-wide M&A seasonality. - Noninterest expense: $1.31 billion (-3% YoY), as CFG executed expense management while investing in Private Bank buildout and technology.
Technical Analysis & Forward Guidance: With a CET1 ratio of 10.6%, TBV/share at a record $33.97 (+5% QoQ), and a robust liquidity buffer, CFG is exceptionally well-capitalized. Management’s ability to manage risk, sustain growth in core deposits, and sustain above-peer capital ratios positions Citizens Financial Group, Inc. as a leading banking institution heading into the rest of 2025.
CFG’s commitment to shareholder returns, reflected in \(186 million of dividends and \)200 million in share buybacks for Q1, underscores a shareholder-friendly capital strategy. CFG’s efficiency ratio improvement (down 142 bps YoY) and steady ROTCE affirm its operational strength. According to the company, “the Private Bank/Private Wealth buildout” is a strategic focus that is already driving deposit and fee income growth.
Top Industry Keywords: - Citizens Financial Group earnings - CFG Q1 2025 results - Banking sector liquidity and capital - Net interest income and net interest margin analysis - Dividend and share repurchase updates
For the full earnings release and financial tables, see Citizens Financial Group’s official 8-K report. Additional investor information is available at CFG Investor Relations.