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. This content is powered APIs. 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.

4% sequentially and 14% year-on-year, supported by net interest margin (NIM) expansion and loan growth across all business segments. 4% year-on-year and reported favorable credit trends with strong balance sheet metrics. 5% of pre-tax income with a 25% ROE, and the ongoing development of AI technology to enhance operations and customer service. 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. 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. 9%. Our performance was powered by significant revenue growth.

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. 4% year on year.

Credit continues to trend favorably as we continue to shift originations into portfolios with deep relationships and lower credit risk while continuing to run down non-core and CRE portfolios. Our balance sheet remains robust across capital liquidity, funding, and credit allowance. We were pleased about the DFAST stress loss results and we anticipate further improvement under the new Fed models. Our key initiatives are progressing well.

2 billion. We continue to attract some really great talent and we continue to broaden out and strengthen our capabilities. 5% of Citizens' pre-tax income while maintaining an ROE of around 25%. Reimagine the bank is moving along nicely.

We are excited about how several of our early AI deployments are having real impact on how we operate and how we serve customers. We're also attracting some great talent into the commercial bank given our strong position in the market, our focused strategy, and our outstanding culture. We maintain strong deal pipelines and anticipate that higher activity levels can extend well beyond this year. We are continuing to refine a branch optimization strategy in Consumer which we have named Next for Network Evolution and Experience Transformation.

The objective will be to add specialists in select branch locations and to enhance our branch locations to achieve faster retail, household, and deposit growth over time. We are quite excited by this. We've shared a page in the slide deck that provides more details. We feel good about our outlook for the remainder of 2026 and feel we are set up for strong performance over the medium term.

We have a distinctive strategy focused on a growing consumer bank, the Commercial Bank of Choice, and the premier private bank and wealth platform. Our talented leadership team is focused on further building up these businesses, leaning into the areas where we have a right to win, and driving stro