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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)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$53.00
â–²(5.39% Upside)
Citizens Financial's overall score is driven by strong earnings call performance and fair valuation. However, technical analysis indicates bearish trends, and financial performance shows areas needing improvement, particularly in revenue growth and cash conversion.
Positive Factors
EPS Growth
The strong EPS growth reflects effective cost management and revenue generation, indicating robust financial health and potential for continued profitability.
Net Interest Income Growth
Growth in net interest income and margin expansion suggest effective interest rate management and a strong lending portfolio, supporting future earnings.
Capital Markets Performance
Strong Capital Markets performance indicates a diversified revenue stream and enhances the company's competitive position in financial services.
Negative Factors
Negative Revenue Growth
Declining revenue growth could signal challenges in market expansion or product competitiveness, potentially impacting long-term financial stability.
Commercial Loan Pricing Spreads
Tightening loan pricing spreads may pressure net interest margins, affecting profitability and limiting growth in the commercial lending segment.
Non-Core Loan Runoff
The runoff of non-core loans reduces asset base and could limit growth opportunities, impacting overall revenue and strategic flexibility.

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

Citizens Financial Business Overview & Revenue Model

Company DescriptionCitizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and commercial non-branch offices in national markets; and approximately 3,300 automated teller machines. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.
How the Company Makes MoneyCitizens Financial generates revenue through several key streams. A significant portion of its income comes from net interest income, which is derived from the interest earned on loans and securities minus the interest paid on deposits and borrowings. The bank issues various types of loans, including personal loans, mortgages, and commercial loans, which contribute substantially to its revenue. Additionally, Citizens Financial earns non-interest income through service fees, transaction fees, and commissions related to wealth management and investment advisory services. The company has established partnerships with fintech firms and other financial institutions to enhance its service offerings, improve customer experience, and drive growth. These collaborations can lead to new revenue opportunities, particularly in the digital banking space.

Citizens Financial Earnings Call Summary

Earnings Call Date:Oct 15, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 21, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance, with significant growth in EPS, NII, and deposits. Capital markets and fee income showed robust improvement, and credit trends remained favorable. However, challenges in commercial loan pricing and non-core runoff presented some headwinds. Overall, the highlights significantly outweigh the lowlights, suggesting a positive outlook.
Q3-2025 Updates
Positive Updates
EPS Growth
EPS increased by $0.13 or 14% sequentially, showing strong financial performance.
Net Interest Income (NII) and Net Interest Margin (NIM) Expansion
NII grew by 3.5% sequentially, with NIM expanding by five basis points to 3%.
Deposit and Loan Growth
The private bank deposits reached $12.5 billion, up $3.8 billion, with loans also growing by approximately $1 billion.
Capital Markets Performance
Record third quarter for Capital Markets, with strong M&A results and increased activity in debt underwriting.
Fee Income Growth
Fees increased by 5% sequentially and 18% year over year, driven by strong Capital Markets and Wealth business performance.
Dividend Increase
Board declared a quarterly dividend of $0.46, a $0.04 or 9.5% increase.
Credit Trends
Favorable credit trends with net charge-offs decreasing to 46 basis points.
Capital Management
CET1 ratio increased by 10 basis points to 10.7%, with $75 million in stock buybacks executed.
Negative Updates
Commercial Loan Pricing Spreads
Commercial loan pricing spreads have tightened, impacting the NIM outlook.
Interest Rate Sensitivity
Lower back-end curve has impacted the front book back book benefit, adjusting NIM expectations.
Non-Core Loan Runoff
Non-core portfolio runoff of approximately $600 million in the quarter.
Company Guidance
During the Citizens Financial Group Third Quarter 2025 Earnings Conference Call, the company reported strong financial metrics, highlighted by a 14% sequential increase in EPS to $1.50, driven by a 3.5% growth in net interest income (NII) and net interest margin (NIM) expansion of five basis points to 3%. Loan growth was noted across consumer, private bank, and commercial segments. The company achieved a 5% increase in fee growth, significantly supported by a strong performance in Capital Markets, marking the second-highest quarter ever, alongside growth in wealth fees. Citizens Financial Group maintained a robust balance sheet, reflected in a CET1 ratio increase of 10 basis points to 10.7% and an LDR of 78.3%. The private bank showed impressive progress, with deposit growth of $3.8 billion to $12.5 billion, surpassing the year-end target. The bank continues to focus on strategic initiatives and aims for organic EPS growth and improved returns, while remaining well-positioned to sustain momentum into 2026. The company also declared a quarterly dividend increase of $0.04, reaching $0.46, and executed $75 million in stock buybacks. Overall, Citizens Financial Group is focused on executing its strategic agenda to deliver superior results amid a favorable macro environment.

Citizens Financial Financial Statement Overview

Summary
Citizens Financial demonstrates stable financial performance with strong profit margins and a balanced leverage position. However, challenges in revenue growth and cash conversion efficiency are notable concerns.
Income Statement
72
Positive
Citizens Financial shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, but the company maintains healthy profit margins. The gross profit margin is strong at approximately 60%, and the net profit margin is stable at around 13%. However, the negative revenue growth rate of -0.965% in the TTM period is a concern, suggesting potential challenges in revenue generation.
Balance Sheet
68
Positive
The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.51, indicating a balanced approach to leveraging. The return on equity is reasonable at 6.41%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall asset base is substantial, supporting stability.
Cash Flow
65
Positive
Cash flow analysis reveals a stable cash position with a positive free cash flow growth rate of 4.42% in the TTM period. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is healthy at approximately 90%, indicating strong cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.00B12.35B12.19B9.07B6.99B7.68B
Gross Profit7.20B7.11B7.54B7.55B7.06B5.29B
EBITDA2.50B2.39B2.51B3.22B3.60B1.88B
Net Income1.59B1.51B1.61B2.07B2.32B1.06B
Balance Sheet
Total Assets218.31B217.52B221.96B226.73B188.41B183.35B
Cash, Cash Equivalents and Short-Term Investments43.21B43.85B41.70B34.59B34.90B35.43B
Total Debt12.78B12.40B13.97B15.89B7.01B8.59B
Total Liabilities193.08B193.27B197.62B203.04B164.99B160.68B
Stockholders Equity25.23B24.25B24.34B23.69B23.42B22.67B
Cash Flow
Free Cash Flow1.16B1.88B2.79B3.99B2.15B-7.00M
Operating Cash Flow1.29B2.00B2.96B4.12B2.27B111.00M
Investing Cash Flow-767.00M2.99B5.25B-12.64B-10.49B-6.14B
Financing Cash Flow-3.74B-6.01B-7.13B9.91B4.64B15.37B

Citizens Financial Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price50.29
Price Trends
50DMA
51.32
Negative
100DMA
48.06
Positive
200DMA
44.63
Positive
Market Momentum
MACD
-0.49
Positive
RSI
45.15
Neutral
STOCH
22.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFG, the sentiment is Neutral. The current price of 50.29 is below the 20-day moving average (MA) of 52.04, below the 50-day MA of 51.32, and above the 200-day MA of 44.63, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$22.72B10.8610.37%3.91%5.99%38.40%
73
Outperform
$21.04B10.3911.43%4.30%4.28%28.54%
70
Outperform
$28.23B11.139.61%3.07%-0.66%20.36%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
$21.27B13.836.71%3.41%-3.70%40.62%
67
Neutral
$27.06B12.2311.52%3.69%-1.74%11.62%
64
Neutral
$19.06B20.885.82%4.83%3.97%5473.29%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CFG
Citizens Financial
50.29
10.79
27.32%
FITB
Fifth Third Bancorp
41.80
-0.03
-0.07%
HBAN
Huntington Bancshares
15.84
1.15
7.83%
KEY
KeyCorp
17.38
1.07
6.56%
MTB
M&T Bank
182.07
-6.19
-3.29%
RF
Regions Financial
24.06
1.39
6.13%

Citizens Financial Corporate Events

Private Placements and FinancingRegulatory Filings and Compliance
Citizens Financial Issues New Preferred Stock Series I
Neutral
Jul 31, 2025

On July 31, 2025, Citizens Financial Group, Inc. issued a 6.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I, with a liquidation preference of $1,000 per share. The issuance imposes restrictions on the company’s ability to declare or pay dividends on junior stocks if dividends on the Series I Preferred Stock are not declared and paid. Additionally, the company filed a Certificate of Designations on July 25, 2025, to establish the rights and limitations of this stock. On July 22, 2025, Citizens Financial entered into an underwriting agreement with several financial institutions for the public offering of 16,000,000 depositary shares, each representing a 1/40th interest in a share of the Series I Preferred Stock. The agreement includes various conditions, indemnification rights, and termination provisions.

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.

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%.

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.

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: Oct 17, 2025