Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Q2 2025 Earnings Presentation
41 slides from Citizens Financial's earnings presentation, Jul 17, 2025
Slide 1: 2Q25 Financial Results
2Q25 Financial Results July 17, 2025
Slide 2: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward- looking statement. These stat
Slide 3: 2Q25 GAAP summary
2Q25 GAAP summary Q/Q Y/Y $s in millions 2Q25 1Q25 2Q24 $/bps % $/bps % Net interest income $ 1,437 $ 1,391 $ 1,410 $ 46 3 % $ 27 2 % Noninterest income 600 544 553 56 10 47 8 Total revenue 2,037 1,935 1,963 102 5 74 4 Noninterest Expense 1,319 1,314 1,301 5 — 18 1 Pre-provision profit 718 621 662 9
Slide 4: 2Q25 Underlying financial summary
2Q25 Underlying financial summary(1) Q/Q Y/Y $s in millions 2Q25 $/bps % $/bps % Net interest income $ 1,437 $ 46 3% $ 27 2% Noninterest income 600 56 10 51 9 Total revenue 2,037 102 5 78 4 Noninterest expense 1,319 5 — 54 4 Pre-provision profit 718 97 16 24 3 Provision for credit losses 164 11 7 (1
Slide 5: 2Q25 financial performance detail
2Q25 financial performance detail (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(1) Private Bank Core Non-Core(2) Total CFG Net interest income $1,362 $80.3 $1,442 $(5) $1,437 Noninterest income 582 15.2 597 3 600 Total revenue 1,944 95.4 2,039 (2) 2,037 Noninterest Expense 1
Slide 6: 2Q25 Overview
2Q25 Overview(1) Solid 2Q25 results PPNR drivers ■ EPS of $0.92 reflects strong revenue performance, positive operating leverage of ~5% QoQ $s in millions 2Q25 QoQ – Continued strong Private Bank progress, contributing $0.06 to EPS, up $0.02 QoQ NII $1,437 3.3 % ■ PPNR of $718 million, up 16% QoQ Fe
Slide 7: Net interest income
Net interest income NII and NIM Linked Quarter $s in millions, except earning assets ■ NII up 3.3%, reflects higher NIM and a 1% increase in average interest-earning assets $198.5B $197.2B $196.6B $195.1B $196.3B – NIM of 2.95%, up 5 bps QoQ, given the time-based benefits of Non-Core runoff and lowe
Slide 8: Noninterest income
Noninterest income(1) Noninterest income details Linked Quarter ■ Noninterest income increased 10%, reflecting the following key $ business drivers: $s in millions 2Q25 1Q25 2Q24 Q/Q Y/Y – Capital markets fees increased $5 million, primarily reflecting Service charges and fees $ 111 $ 109 $ 106 $ 2
Slide 9: Noninterest expense
Noninterest expense(1) Noninterest expense details Linked Quarter $ $s in millions 2Q25 1Q25 2Q24 Q/Q Y/Y ■ Noninterest expense of $1.3 billion, up 0.4% Salaries & employee benefits $ 681 $ 696 $ 637 $ (15) $ 44 – Salaries and benefits decreased $15 million, reflecting lower payroll taxes and compen
Slide 10: Loans and leases
Loans and leases Period-end loans and leases Linked Quarter $s in billions ■ Period-end loans up 1%; Core loans up 2% – Private Bank growth of $1.2 billion, driven primarily $141.8 $141.6 $139.2 $137.6 $139.3 by commercial line utilization and mortgage – Commercial* up ~$300 million, given an increa
Slide 11: Deposit performance and cost of funds
Deposit performance and cost of funds Average deposits Linked Quarter $s in billions ■ Average deposits up 1%, driven by ~$1.5 billion growth in retail $173.7 $174.1 $174.3 $172.7 $174.1 and Private Bank lower-cost categories, partially offset by the reduction in higher-cost Treasury brokered and re
Slide 12: Highly diversified and retail-oriented deposit base
Highly diversified and retail-oriented deposit base $175.1B Period-end deposits Business mix As of 6/30/25 Product mix Private Bank/ Private Wealth 6% Business Banking Time Citizens 12% 12% NIB Access 22% 6% Commercial 25% Money Market 32% Checking With Interest Branch deposits 20% 49% Citizens Trea
Slide 13: Credit quality overview
Credit quality overview Credit provision expense; Nonaccrual loans $s in millions net charge-offs $s in millions 0.58% 151% 140% 145% 0.52% 0.54% 0.53% 136% 136% 0.48% 0.51% $192 $189 $200 $182 $184 $172 $162 $164 $167 $1,687 $1,664 $153 $1,527 $1,582 $1,524 $175 $616 $647 $588 $599 $585 2Q24 3Q24 4
Slide 14: Allowance for credit losses
Allowance for credit losses Allowance for credit losses CRE General Office reserve $s in millions 2Q25 1Q25 Total Balance ($B) $ 2.73 $ 2.86 1.63% 1.61% 1.62% 1.61% 1.59% ACL ratio ACL ($MM; % coverage) $ 322 11.8 % $ 351 12.3 % $2,306 $2,286 $2,259 $2,212 $2,209 Cumulative NCOs* ($MM) $ 490 $ 464 1
Slide 15: Strong capital position
Strong capital position Highlights $s in billions (period-end) 2Q24 3Q24 4Q24 1Q25 2Q25 ■ 2Q25 CET1 ratio of 10.6% Basel III basis(1) – 9.1% CET1 ratio adjusted for AOCI opt-out removal Common equity tier 1 capital $ 18.1 $ 17.9 $ 17.9 $ 17.8 $ 17.8 ■ TBV/share of $35.23, up 4% QoQ, reflects higher
Slide 16: Focused on driving attractive growth and enhancing profitability over the medium term
Focused on driving attractive growth and enhancing profitability over the medium term Continuing to invest across our three core businesses... Expanding into new markets Transformed Consumer Bank ■ Strong deposit franchise grounded in primary relationships ■ Growing high-quality, deep relationship c
Slide 17: Building a premier Private Bank
Building a premier Private Bank $s in billions Deposits AUM As of 6/30/25 $8.7 $8.7 $6.5 $8.5 $5.2 $7.6 $4.0 $3.6 Avg Spot $3.1 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 ■ ~36% noninterest-bearing ■ Added 3 advisor teams during 2Q25 in NYC metro, North New ■ ~2.2% total deposit cost Jersey and Los Angeles ■ Con
Slide 18: 3Q25 outlook vs. 2Q25
3Q25 outlook vs. 2Q25 2Q25 3Q25 outlook ■ Up ~3-4% Net interest income $1,437MM ■ NIM up ~5 bps ■ Earning assets up slightly ■ Up low single digits; rebound in capital Noninterest income $600MM markets will be partially offset by reductions in mortgage and other income Noninterest expense $1,319MM ■
Slide 19: Citizens is an attractive investment opportunity
Citizens is an attractive investment opportunity Continue to have a series of unique initiatives that will lead to relative medium-term outperformance ■ Transformed Consumer Bank with further deposit growth and Wealth revenue potential; well positioned in NYC Metro to gain market share; performance
Slide 20: Appendix
Appendix ■ Medium-term NIM outlook ■ Interest Rate Risk Management ■ Non-Core assets and funding ■ AOCI accretion ■ Credit
Slide 21: Meaningful NIM improvement over the medium term
Meaningful NIM improvement over the medium term Chart not to scale Medium-term NIM target 3.25 to 3.50% Factors supporting 3.25 to 3.50% NIM ■ Swaps and Non-Core runoff Fed funds at or above 4% favor top end of ■ Stable to improving balance sheet mix 3.50% range or above ■ Fed funds terminal range o
Slide 22: Interest rate risk management
Interest rate risk management Commentary Fixed/floating-rate mix As of 6/30/25 ■ Slightly asset sensitive; approximately +/- 1% impact (1) Loans Securities to NII over the next 12 months with a gradual +/- 100 bps change in rates relative to the forward curve $139B $42B ■ Receive-fixed cash flow swa
Slide 23: Non-Core portfolio - accelerating runoff with education loan sale
Non-Core portfolio - accelerating runoff with education loan sale $s in billions Non-Core portfolio(1) Quarterly 2025 $4.2B ex. HFS $5.8 $3.6B ex. HFS $1.6 $4.6 $3.0B ex. HFS $1.0 $3.5 $0.2 $2.6 $0.2 $0.5 $2.9 $2.4 $0.2 $2.0 $0.2 $1.6 $1.1 $0.1 $0.3 $0.3 $4.0 $3.4 $2.8 $2.4 $1.0 $0.1 $0.2 1Q25 2Q25
Slide 24: AOCI accretion
AOCI accretion Projected accretion to TCE and CET1 adjusted for AOCI opt-out removal(1) $s in billions Accretes to CET1(2) TCE CET1(2) 6/30/2025 $(0.3) $(0.3) $(2.0) $(2.6) $(2.3) 12/31/2025 $(0.1) $(0.3) $(1.8) $(2.2) $(2.0) 12/31/2026 $(0.3) $(1.5) $(1.8) $(1.8) ~33% ~21% Burn-off by YE2026 (3) Sw
Slide 25: $71.6B Commercial credit portfolio
$71.6B Commercial credit portfolio Diverse and granular portfolio Commercial portfolio risk ratings(3) $s in billions $ Balances % of CFG $s in billions C&I Finance and Insurance $ 14.1 10 % $71.9 $70.5 $71.6 Capital call facilities $ 7.2 B- and lower 8% 7% 6% Private Credit Finance 3.1 B+ to B 19%
Slide 26: Commercial Real Estate - General Office portfolio well diversified
Commercial Real Estate - General Office portfolio well diversified(1) $2.7B General Office class & location Commentary As of 6/30/25 ■ General Office portfolio is well diversified geographically ■ 70% suburban, generally performing better than CBD properties CBD Class A Suburban Class B 12% ■ 91% Cl
Slide 27: $67.7B Retail credit portfolio
$67.7B Retail credit portfolio Retail portfolio(1) High quality, diverse portfolio As of 6/30/25 $s in billions Other retail Super-prime/prime* Secured Homeowners Education - $4.2 ~96% ~81% ~2/3 refinance $5.4 of retail of retail of unsecured Education - portfolio > 680 portfolio retail borrowers(3)
Slide 28: Allocation of allowance for credit losses by product type
Allocation of allowance for credit losses by product type June 30, 2025 March 31, 2025 Loans and Loans and Allowance Coverage Allowance Coverage $s in millions Leases Leases Commercial and industrial(1) $ 45,412 $611 1.35 % $ 43,781 $629 1.44 % Commercial real estate 26,230 658 2.51 26,727 683 2.56
Slide 29: Delinquency by product type
Delinquency by product type June 30, 2025 (%) March 31, 2025 (%) Days Past Due and Accruing Days Past Due and Accruing Current 30-59 60-89 90+ Nonaccrual Current 30-59 60-89 90+ Nonaccrual Commercial and industrial 99.32 % 0.13 % 0.03 % 0.01 % 0.51 % 99.17 % 0.13 % 0.03 % 0.02 % 0.65 % Commercial re
Slide 30: Notable items
Notable items(1) There are no notable items in second quarter 2025 or first quarter 2025, as our intention going forward is to limit these to those items of greatest significance. Second quarter 2024 results reflect notable items primarily related to integration costs associated with recent acquisit
Slide 31: Notes
Notes Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results. Where there is
Slide 32: Notes continued
Notes continued Notes on slide 25 - $71.6B Commercial credit portfolio 1) Includes deferred fees and costs. 2) Credit tenant lease includes loans to nationally recognized tenants with high credit ratings and life sciences includes loans to provide lab and office space for tenants involved in the stu
Slide 33: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 2Q25 Change 2Q25 1Q25 2Q24 1Q25 2Q24 $ % $ % Noninterest income, Underlying: Noninterest income (GAAP) A $600 $544 $553 $56 10% $47 8% Less: Notable items — — 4 — — (4) (100) Nonin
Slide 34: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 2Q25 Change 2Q25 1Q25 2Q24 1Q25 2Q24 $/bps % $/bps % Operating leverage: Total revenue (GAAP) C $2,037 $1,935 $1,963 $102 5.35% $74 3.78% Less: Noninterest expense (GAAP) E 1,319 1
Slide 35: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations QUARTERLY TRENDS $s in millions, except share, per share and ratio data 2Q25 Change 2Q25 1Q25 2Q24 1Q25 2Q24 $/bps % $/bps % Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) Q
Slide 36: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations QUARTERLY TRENDS $s in millions, except share, per share and ratio data 2Q25 Change 2Q25 1Q25 2Q24 1Q25 2Q24 $/bps % $/bps % Net interest income and net interest margin on an FTE basis: Net interest income (annualized) (GAAP) AA $5,770 $5,637 $5,674 $1
Slide 37: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 4Q24 3Q24 Noninterest income, Underlying: Noninterest income (GAAP) A $574 $532 Less: Notable items 10 (2) Noninterest income, Underlying (non-GAAP) B $564 $534 Total revenue, Unde
Slide 38: Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal
Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal $s in millions, except share, per share and ratio data QUARTERLY TRENDS 2Q25 1Q25 CET1 Ratio adjusted for AOCI opt-out removal CET1 capital $ 17,812 $ 17,751 Less: AFS securities - AOCI 1,282 1,337 HTM securitie
Slide 39: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 2Q25 Change 2Q25 1Q25 2Q24 1Q25 2Q24 $/bps % $/bps % Total Retail loans - at period-end $67,662 $67,127 $69,908 $535 1% ($2,246) (3%) Less: Non-core retail loans - at period-end 3,
Slide 40: Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core
Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core $s in millions, except share, per share and ratio data 2Q25 Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) $402 Add: Notable items, net of income tax benefit
Slide 41: Citizens Financial Group, Inc.
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Citizens Financial Group — Q2 2025 Earnings Presentation on 6ix