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Citizens Financial (CFG)
NYSE:CFG
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Citizens Financial (CFG) AI Stock Analysis

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CFG

Citizens Financial

(NYSE:CFG)

Rating:77Outperform
Price Target:
$56.00
▲(14.08%Upside)
Citizens Financial demonstrates strong financial performance with robust profitability and efficient operations. Technical indicators show bullish momentum, while a reasonable P/E ratio and solid dividend yield enhance its valuation appeal. Recent earnings call and corporate events reflect strategic growth and confidence, despite macroeconomic uncertainties.
Positive Factors
Earnings Performance
Stock outperformed peers after beating consensus with a stronger fee revenue-driven EPS of $0.92.
Loan Growth
Commentary on loan growth is decidedly bullish, supported by continued expansion of the private bank.
Negative Factors
Capital Markets
EPS risk skews to the downside due to weaker capital markets and rapid Fed rate-cuts.
Macro Uncertainty
Macro uncertainty may continue to suppress customer activity, affecting revenue growth.

Citizens Financial (CFG) vs. SPDR S&P 500 ETF (SPY)

Citizens Financial Business Overview & Revenue Model

Company DescriptionCitizens Financial Group, Inc. (CFG) is a prominent regional bank headquartered in Providence, Rhode Island. It operates primarily in the retail and commercial banking sectors, offering a wide range of financial products and services. These include traditional banking services such as checking and savings accounts, personal and business loans, mortgages, credit cards, and wealth management solutions. Citizens Financial serves individuals, small businesses, middle-market companies, and large corporations across its extensive branch network in the United States.
How the Company Makes MoneyCitizens Financial generates revenue primarily through interest income and non-interest income. Interest income is derived from the interest charged on loans and mortgages provided to individuals and businesses. The company also earns interest on securities it owns. Non-interest income includes fees and service charges from banking services, asset management, and investment services. Additionally, Citizens Financial benefits from its commercial banking division through treasury and cash management services. Strategic partnerships and collaborations with fintech companies and other financial institutions also play a role in enhancing its service offerings and expanding its customer base, contributing to its overall earnings.

Citizens Financial Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: 4.51%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter with significant growth in NII, fees, and favorable credit trends. The strategic initiatives, particularly in the Private Bank and capital markets, show positive momentum. However, macroeconomic uncertainties and noncore portfolio runoff present ongoing challenges.
Q2-2025 Updates
Positive Updates
Strong Net Interest Income (NII) Growth
NII grew by 3.3% sequentially, driven by a 5 basis point expansion in net interest margin (NIM).
Favorable Credit Trends and Operating Leverage
Credit trends remained favorable with a 500 basis points of operating leverage achieved.
Record Fee Growth
Fees grew by 10% quarter-over-quarter, led by wealth, card, and mortgage segments.
Capital Markets Resilience
Despite macro uncertainties, capital markets showed strength, particularly in equity underwriting and loan syndications.
Private Bank Growth
Private Bank loans grew by $1.2 billion, with a strong contribution to EPS and ROE targets on track.
Positive Loan Growth Across Segments
Net loan growth resumed across consumer, private bank, and commercial segments, surpassing noncore runoff.
Negative Updates
Macro Uncertainty and Tariff Impacts
Uncertainty in macro conditions and tariffs continue to present challenges, affecting debt capital markets and M&A deals.
Noncore Portfolio Runoff
Approximately $700 million in noncore portfolio runoff, which still poses a headwind to overall growth.
Commercial Real Estate (CRE) Portfolio Reduction
Ongoing reduction in the CRE portfolio, with expected further $0.5 billion quarterly reduction.
Company Guidance
In the second quarter of 2025, Citizens Financial Group reported strong financial results that exceeded expectations despite macroeconomic uncertainties. Key performance metrics included a 3.3% sequential growth in net interest income (NII) driven by a 5 basis point expansion in net interest margin (NIM) and a 10% increase in fee income, particularly from wealth, card, and mortgage services. The firm maintained flat expenses, resulting in 500 basis points of positive operating leverage, while credit trends remained favorable. The capital markets division saw growth despite delays in some M&A deals, with $30 million in fees expected in July. Citizens also executed $200 million in share buybacks, ending the quarter with a Common Equity Tier 1 (CET1) ratio of 10.6%. The Private Bank reported strong loan growth, adding $1.2 billion in loans, contributing six cents to earnings per share (EPS) in the quarter. The company reaffirmed its full-year guidance for 2025, anticipating a 3-4% growth in net interest income for the third quarter, along with positive operating leverage and improved credit trends.

Citizens Financial Financial Statement Overview

Summary
Citizens Financial maintains strong profitability with robust operational efficiency, evidenced by solid net profit margins and effective use of shareholders' funds. However, declining revenue and free cash flow growth present potential challenges, requiring strategic adjustments.
Income Statement
75
Positive
Citizens Financial has demonstrated stable performance in its income statement, with a consistent gross profit margin over time. The TTM shows a slight decline in total revenue compared to the previous periods, but the net profit margin remains strong at 20.12%. EBIT and EBITDA margins also indicate robust operational efficiency, although there has been a decrease in revenue compared to 2023, which may be a concern if this trend continues.
Balance Sheet
70
Positive
The balance sheet exhibits a moderate debt-to-equity ratio of 0.50 in the TTM, reflecting a balanced approach to leveraging. The equity ratio is stable, suggesting good asset management. However, the declining stockholders' equity over the past few periods may pose a risk if not addressed. Return on equity is solid at 4.73%, indicating effective use of shareholders' funds.
Cash Flow
65
Positive
Cash flow analysis reveals a decline in free cash flow growth, with a negative trend from previous periods. The operating cash flow to net income ratio is 1.23, indicating a healthy cash generation from operations. However, the free cash flow to net income ratio has decreased, pointing to potential challenges in maintaining cash reserves if this continues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.35B12.19B9.07B6.99B7.68B
Gross Profit7.11B7.54B7.55B7.06B5.29B
EBITDA2.39B2.51B3.22B3.60B1.88B
Net Income1.51B1.61B2.07B2.32B1.06B
Balance Sheet
Total Assets217.52B221.96B226.73B188.41B183.35B
Cash, Cash Equivalents and Short-Term Investments43.85B41.70B34.59B34.90B35.43B
Total Debt12.40B13.97B15.89B7.01B8.59B
Total Liabilities193.27B197.62B203.04B164.99B160.68B
Stockholders Equity24.25B24.34B23.69B23.42B22.67B
Cash Flow
Free Cash Flow1.88B2.79B3.99B2.15B-7.00M
Operating Cash Flow2.00B2.96B4.12B2.27B111.00M
Investing Cash Flow2.99B5.25B-12.64B-10.49B-6.14B
Financing Cash Flow-6.01B-7.13B9.91B4.64B15.37B

Citizens Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price49.09
Price Trends
50DMA
44.04
Positive
100DMA
41.25
Positive
200DMA
42.81
Positive
Market Momentum
MACD
1.59
Positive
RSI
66.26
Neutral
STOCH
80.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFG, the sentiment is Positive. The current price of 49.09 is above the 20-day moving average (MA) of 48.11, above the 50-day MA of 44.04, and above the 200-day MA of 42.81, indicating a bullish trend. The MACD of 1.59 indicates Positive momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 80.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFG.

Citizens Financial Risk Analysis

Citizens Financial disclosed 36 risk factors in its most recent earnings report. Citizens Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Citizens Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$26.93B11.7411.46%0.37%-21.44%
77
Outperform
$23.64B12.2811.59%3.82%2.83%20.85%
77
Outperform
$21.39B15.056.48%3.42%-4.07%25.31%
77
Outperform
$24.39B12.4210.43%3.70%5.82%28.04%
74
Outperform
$28.54B7.4210.66%2.97%18.54%28.34%
70
Outperform
$20.21B1,663.641.02%4.46%-12.21%-108.48%
58
Neutral
HK$92.81B5.77-3.20%4.92%5.50%-56.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CFG
Citizens Financial
49.09
7.68
18.55%
FCNCA
First Citizens BancShares
2,031.90
-48.11
-2.31%
HBAN
Huntington Bancshares
16.75
2.39
16.64%
KB
Kb Financial Group
79.51
14.30
21.93%
KEY
KeyCorp
18.39
3.02
19.65%
RF
Regions Financial
26.19
4.75
22.15%

Citizens Financial Corporate Events

Private Placements and FinancingFinancial Disclosures
Citizens Financial Launches New Preferred Stock Offering
Positive
Jul 22, 2025

Citizens Financial Group, Inc. announced its second quarter 2025 earnings on July 17, 2025, highlighting strong revenue performance and disciplined expense management. The company reported an EPS of $0.92, up $0.15 from the previous quarter, with significant contributions from its Private Bank. Additionally, Citizens Financial launched a proposed public offering of a new series of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I, on July 22, 2025. The proceeds from this offering, if successful, are intended to redeem some or all outstanding shares of its Series F Preferred Stock, subject to market conditions. The outcome of this offering could impact the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (CFG) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Citizens Financial stock, see the CFG Stock Forecast page.

Financial Disclosures
Citizens Financial Reports Strong Q2 2025 Earnings
Positive
Jul 17, 2025

Citizens Financial Group, Inc. reported a net income of $436 million for the second quarter of 2025, with an earnings per share (EPS) of $0.92. The company experienced a sequential net interest income (NII) growth of 3%, fee growth of 10%, and positive operating leverage of approximately 5%. The quarter also saw strong revenue performance and disciplined expense management, with notable contributions from the Private Bank. Loans and deposits both increased by 1% quarter-over-quarter, and the company maintained a strong liquidity profile with a loan-to-deposit ratio of 79.6%.

The most recent analyst rating on (CFG) stock is a Hold with a $43.00 price target. To see the full list of analyst forecasts on Citizens Financial stock, see the CFG Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Citizens Financial Expands Share Repurchase Program by $1.2B
Positive
Jun 13, 2025

On June 13, 2025, Citizens Financial Group announced an increase in its common share repurchase program to $1.5 billion, a significant rise of $1.2 billion from the previous authorization. This move reflects the company’s confidence in its financial performance and strategic growth initiatives, aiming to deliver attractive capital returns to shareholders. The repurchases will be subject to various factors, including market conditions and regulatory considerations.

The most recent analyst rating on (CFG) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Citizens Financial stock, see the CFG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025