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Citizens Financial Group Inc. – Strong Q4 FY25 Highlights Growth, Asset Quality, and Strategic Momentum

By Caroline Alweyn |
Earnings Update by AlphaStreet

Q4 Earnings Metrics

Citizens Financial Group Inc (NYSE: CFG), a regional bank headquartered in Rhode Island, reported Q4 2025 net income of $528 million, up 32 % from Q4 2024 driven by improved interest income and controlled credit costs. Net interest income rose 9% to approximately $1.54 billion supported by expansion in net interest margin to about 3.07 %.

Total revenue for the quarter was up 9% to $2.16 billion. Earnings per diluted share increased 36 % to $1.13 from $0.83 in Q4 2024. Return on tangible common equity rose to 12.2 % and efficiency ratio improved to 62.2 % reflecting revenue growth outpacing expense increases.

Loans & Leases

Loans and leases were $142.7 billion, up from $139.2 billion in Q4 2024 and $140.9 billion in Q3 2025. Average loans also increased on a quarterly basis.

Deposits

Deposits grew to $183.3 billion from $174.8 billion a year earlier with average deposits up versus 3Q 2025 underpinning funding and lending capacity.

Credit Quality

Credit quality remained strong. Net charge‑offs were 0.43 % of average loans and leases versus 0.53 % in Q4 2024. The allowance for credit losses was about 1.53 % of loans and leases, slightly lower than prior year level while remaining well above net charge‑offs. Non-accrual loans as a percentage of total loans declined from a year earlier indicating fewer problem credits.

2025 Results

Year‑to‑date results for 2025 showed net income of roughly $1.83 billion and diluted earnings per share of $3.86, up from $3.03 in 2024 reflecting improved earnings power across the franchise. The efficiency ratio for the full year also trended lower indicating improved cost control relative to revenue growth.

Positive Quarterly Metrics

●  Strong execution of growth strategies.

●  Continued improvement in net interest margin.

●  Growth in diversified fee‑based businesses

●  Positive trends in credit quality and operating efficiency.

●  Continued focus on returning capital to shareholders.

Dividend

Citizens’ board declared a quarterly common stock dividend of $0.46 per share reflecting continued return of capital to shareholders.

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