Citizens Financial Group Q2 2026 Earnings Call Transcript

On Thursday, Citizens Financial Group (NYSE: CFG ) discussed second-quarter financial results during its earnings call.

The full transcript is provided below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Citizens Financial Group Inc reported a strong second quarter with a 15% sequential EPS growth and a 41% year-on-year increase, driven by significant revenue growth and disciplined expense management.

Net Interest Income (NII) grew 4.4% sequentially and 14% year-on-year, supported by net interest margin (NIM) expansion and loan growth across all business segments.

The company maintained a positive operating leverage of 4% sequentially and 6.4% year-on-year and reported favorable credit trends with strong balance sheet metrics.

Strategic initiatives are progressing well, particularly the private bank, which contributed 11.5% of pre-tax income with a 25% ROE, and the ongoing development of AI technology to enhance operations and customer service.

Future outlook is optimistic with expected net interest income growth of 2.5% to 3.5% for the third quarter and continued NIM expansion, aiming for a 16-18% ROTCE target by 2027.

Management highlighted the successful execution of their strategic initiatives, particularly in expanding the private bank and capital markets, and plans to optimize their branch network as part of the NEXT program.

The company executed $225 million in stock buybacks during the quarter and maintains a strong capital position with CET1 at 10.4%.

Full Transcript OPERATOR Good morning everyone and welcome to the Citizens Financial Group second quarter 2026 earnings conference call.

My name is Ivy and I will be your operator today.

Currently, all participants are in a listen-only mode.

Following the presentation, we will conduct a brief question and answer session.

As a reminder, this event is being recorded.

I will now turn the call over to Kristin Silverberg, Head of Investor Relations.

Kristin, you may begin.

Kristin Silverberg, Head of Investor Relations Thank you, Ivy.

Good morning everyone and thank you for joining us.

First this morning, our Chairman and CEO Bruce Van Sorn and CFO Anoi Banerjee will provide an overview of our second quarter results.

Brendan Coughlin, our President, and Ted Swimmer, Head of Commercial Banking, are also here to provide additional color.

We will be referencing our second quarter presentation located on our Investor Relations website.

After the presentation, we will be happy to take your questions.

Our comments today will include forward-looking statements which are subject to risks and uncertainties that may cause our results to differ materially from expectations.

These are outlined for your review in the presentation.

We also reference non-GAAP financial measures, so it's important to review our GAAP results in the presentation and the reconciliations in the appendix.

And with that, I'll hand it over to Bruce.

Bruce Van Sorn, Chairman and CEO Thanks, Kristin, and good morning everyone.

Thanks for joining our call.

Today, we announced outstanding results for the quarter as our strong momentum continues.

EPS growth was 15% sequential quarter, 41% year on year, and our ROTCE improved to 13.9%.

Our performance was powered by significant revenue growth.

NII was up 4.4% sequentially and 14% versus a year ago, which was paced by continued NIM expansion and accelerating loan growth across each of our businesses.

Fee revenues were up 8% sequentially, 9% year on year, as our capital markets hit a second quarter record.

Wealth hit an all-time high and various payment-related revenues had a nice seasonal bounce.

We maintained strong expense discipline which resulted in positive operating leverage of 4% sequentially and 6.4% year on year.