Citizens Financial Group, Inc. Reports Third Quarter 2026 Net Income of $636 million, up 29% YoY, and EPS of $1.41, up 34% YoY and 8% QoQ ROTCE of 15.1%…
CITIZENS FINANCIAL GROUP INC/RI (CFG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Citizens Financial Group, Inc. Reports Third Quarter 2026 Net Income of $636 million, up 29% YoY, and EPS of $1.41, up 34% YoY and 8% QoQ ROTCE of 15.1%; Dividend raised 13% Positive Operating Leverage of 5.3% YoY Key Financial Data 3Q26 2Q26 3Q25 Third Quarter 2026 Highlights In
How this was made
The 30-second read
Why it matters
The earnings beat and dividend hike are likely to attract income‑focused investors and support the stock price in the short term.
Market read
Strong earnings and dividend news provide a clear catalyst for CFG, with potential upside for the broader regional banking sector.
What to watch
Net charge-off rate remains at 37 bps; any deterioration could pressure margins.
Citizens Financial Group, Inc. Reports Third Quarter 2026 Net Income of $636 million, up 29% YoY, and EPS of $1.41, up 34% YoY and 8% QoQ ROTCE of 15.1%; Dividend raised 13% Positive Operating Leverage of 5.3% YoY
Total revenue increased 10% year over year, net income increased 29%, diluted EPS increased 34%, pre-provision profit increased 19%, and credit costs declined. Net interest income and margin expanded while expenses were stable sequentially, supported by positive operating leverage.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $2.32B | $39 million 2% | $204 million 10% |
| Net interest incomeGAAP | $1.68B | $44 million 3% | $187 million 13% |
| Noninterest incomeGAAP | $647M | $(5) million (1)% | $17 million 3% |
| Noninterest expenseGAAP | $1.39B | $(1) million —% | $58 million 4% |
| Pre-provision profitnon-GAAP | $929M | $40 million 4% | $146 million 19% |
| Provision for credit lossesGAAP | $125M | $(9) million (7)% | $(29) million (19)% |
| Net incomeGAAP | $636M | $49 million 8% | $142 million 29% |
| Net income available to common stockholdersGAAP | $599M | $45 million 8% | $142 million 31% |
| Diluted earnings per shareGAAP | $1.41 | $0.11 8% | $0.36 34% |
| Net interest marginGAAP | 3.18% | 2 bps | 19 bps |
| Net interest margin, FTEnon-GAAP | 3.19% | 2 bps | 19 bps |
| Efficiency rationon-GAAP | 60.0% | (110) bps | (305) bps |
| Operating leveragenon-GAAP | 5.32% | – | – |
| Effective income tax rateGAAP | 20.9% | (143) bps | (52) bps |
| Return on average common equityGAAP | 10.05% | 74 bps | 228 bps |
| Return on average tangible common equitynon-GAAP | 15.08% | 117 bps | 333 bps |
| Return on average total assetsGAAP | 1.09% | 6 bps | 19 bps |
| Return on average total tangible assetsnon-GAAP | 1.13% | 7 bps | 20 bps |
| Total assetsGAAP | $234.5B | $628 million —% | $11,717 million 5% |
| Total loans and leasesGAAP | $148.2B | $736 million —% | $7,357 million 5% |
| Total loans held for saleGAAP | $884M | $(574) million (39)% | $(450) million (34)% |
| DepositsGAAP | $185.2B | $(392) million —% | $5,217 million 3% |
| Average depositsGAAP | $183.7B | $116 million —% | $7,779 million 4% |
| Total borrowed fundsGAAP | $17.83B | $1,483 million 9% | $7,177 million 67% |
| Stockholders' equityGAAP | $25.16B | $(1,021) million (4)% | $(667) million (3)% |
| Stockholders' common equityGAAP | $22.95B | $(1,120) million (5)%ართველ | $(766) million (3)% |
| Tangible common equitynon-GAAP | $15.07B | $(1,115) million (7)% | $(778) million (5)% |
| Tangible book value per common sharenon-GAAP | $35.78 | $(2.51) (7)% | $(0.95) (3)% |
| Common equity tier 1 capital ratioother | 10.5% | – | – |
| Total capital ratioother | 13.7 | – | – |
| Tangible common equity rationon-GAAP | 6.7 | (50) bps | (70) bps |
| Loan-to-deposit ratio (period-end)other | 80.0% | 56 bps | 176 bps |
| Nonaccrual loans and leasesGAAP | $1.46B | $26 million 2% | $(57) million (4)% |
| Nonaccrual loans and leases to loans and leasesother | 0.99% | 2 bps | (9) bps |
| Net charge-offsGAAP | $137M | $2 million 1% | $(25) million (15)% |
| Net charge-offs as a % of total loans and leasesother | 0.37 | — | (9) |
| Allowance for credit lossesGAAP | $2.17B | $(12) million (1)% | $(29) million (1)% |
| Allowance for credit losses to loans and leasesother | 1.47 | (1) | (9) |
| Allowance for credit losses to nonaccrual loans and leasesother | 149% | (3)% | 4% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Service charges and feesHigher overdraft and cash management fees year over year; higher overdraft fees sequentially. | $120M | $3 million 3% | $8 million 7% |
| Capital markets feesYear-over-year decline was primarily driven by lower M&A relative to particularly strong results in third quarter 2025. Sequentially, lower loan syndication and debt and equity underwriting fees were largely offset by higher M&A fees. | $149M | $(4) million (3)% | $(17) million (10)% |
| Wealth feesA new record, driven sequentially by higher advisory fees and year over year by growth in AUM reflecting net inflows and market appreciation. | $109M | $7 million 7% | $16 million 17% |
| Card feesNo driver disclosed. | $90M | $1 million 1% | $3 million 3% |
| Mortgage banking feesSequential decline primarily reflected a decline in net MSR valuation of $13 million, partially offset by higher servicing revenue. Year-over-year decline reflected lower net MSR valuation results and lower production fees, partially offset by higher servicing revenue. | $35M | $(7) million (17)% | $(14) million (29)% |
| Foreign exchange and derivative productsSequential growth reflected higher FX and commodities client hedging activity. | $49M | $2 million 4% | $7 million 17% |
| Letter of credit and loan feesNo driver disclosed. | $54M | $2 million 4% | $6 million 13% |
| Securities gains, netNo driver disclosed. | $11M | $5 million 83% | $9 million NM |
| Other incomeSequential decline reflected several modest revenue items in the prior quarter. | $30M | $(14) million (32)% | $(1) million (3)% |
Capital returns
- Total capital returned to shareholders was $322 million in third quarter 2026.
- Paid $197 million in common dividends to shareholders during third quarter 2026. This compares with $197 million in common dividends during second quarter 2026 and $184 million during third quarter 2025.
- Repurchased $125 million of common shares during third quarter 2026, compared with $225 million in second quarter 2026 and $75 million in third quarter 2025.
- The board of directors declared an increase in its quarterly common dividend to $0.52 per share, up $0.06 or 13% compared with the prior quarter, payable in 4Q26.
- The board of directors increased the capacity of Citizens’ common share repurchase program to $1.95 billion, an increase of $1.3 billion above the $650 million of capacity currently remaining under the prior June 2025 authorization.
What drove it
- Net interest income increased 13% year over year, primarily reflecting a higher net interest margin and a 6% increase in interest-earning assets.
- Net interest margin of 3.19% increased 2 basis points sequentially and 19 basis points year over year, aided by lower terminated swap impacts, fixed-rate asset repricing and improved funding costs.
- Average loans and leases increased $1,226 million 1% sequentially and $7,343 million 5% year over year. Growth reflected Private Bank, home equity and mortgage, corporate banking originations and higher commercial line utilization, partly offset by commercial real estate paydowns and Non-Core runoff.
- Private Bank deposits increased 4% to $18.5 billion at the end of third quarter 2026.
- Wealth fees reached a new record of $109 million.
- Noninterest expense was stable sequentially at $1,393 million, producing operating leverage of 1.83% sequentially and 5.32% year over year.
- Provision for credit losses declined to $125 million, reflecting Non-Core runoff, improving credit trends and loan mix.
Concerns
- Tangible book value per common share was $35.78, down 6.6% compared with second quarter 2026 and 2.6% versus third quarter 2025, given the negative impact of higher long-term rates on the investment securities and swap portfolios.
- Tangible common equity ratio was 6.7, compared with 7.2 in 2Q26 and 7.4 in 3Q25.
- Nonaccrual loans and leases increased $26 million 2% sequentially to $1,461 million, driven by modest increases in C&I and residential mortgage.
- Mortgage banking fees declined $7 million 17% sequentially and $14 million 29% year over year.
- Capital markets fees declined $4 million 3% sequentially and $17 million 10% year over year.
- Period-end borrowed funds increased $7,177 million 67% year over year.
What to watch
- Whether net interest margin sustains expansion after reaching 3.19%.
- Private Bank and Wealth growth, including the reported $18.5 billion of Private Bank deposits and record $109 million of Wealth fees.
- Loan growth in Private Bank, retail and corporate banking against commercial real estate paydowns, lower commercial line utilization and Non-Core runoff.
- Deposit composition and funding costs, including the increase in FHLB advances.
- The development of nonaccrual loans, net charge-offs and the allowance for credit losses ratio.
- The impact of higher long-term rates on tangible book value per common share and tangible common equity.
Balance sheet and cash flow
- Total assets were $234,464 million as of 3Q26.
- Period-end deposits were $185,228 million, broadly stable sequentially and up $5,217 million 3% year over year.
- Total loans and leases were $148,227 million, up $736 million sequentially and $7,357 million 5% year over year.
- Total borrowed funds were $17,832 million, up $1,483 million 9% sequentially and $7,177 million 67% year over year, primarily reflecting higher FHLB advances.
- The loan-to-deposit ratio (period-end) was 80.0%.
- No operating cash flow or free cash flow was reported.
Analysis
Citizens reported a strong third quarter, with GAAP total revenue of $2,322 million, up $204 million 10% from 3Q25 and $39 million 2% from 2Q26. Net interest income was $1,675 million, up $187 million 13% year over year and $44 million 3% sequentially. Net interest margin, FTE was 3.19%, up 19 basis points year over year and 2 basis points sequentially. Management attributed the expansion to lower terminated swap impacts, fixed-rate asset repricing and improved funding costs, partly offset sequentially by increased funding costs.
Earnings growth exceeded revenue growth. Pre-provision profit was $929 million, up $146 million 19% year over year, while GAAP net income was $636 million, up $142 million 29%. Diluted earnings per share were $1.41, up $0.36 34% year over year and $0.11 8% sequentially. Expenses were $1,393 million, flat sequentially but up $58 million 4% year over year, as Private Bank & Wealth buildout, Commercial investment, technology-related costs and Reimagine the Bank implementation costs were partly offset by lower other operating expense. The efficiency ratio improved to 60.0% from 63.0% a year earlier, and operating leverage was 5.32% year over year.
Balance-sheet trends show continuing loan growth but stable deposits. Total loans and leases reached $148,227 million, up $7,357 million 5% from 3Q25, while period-end deposits were $185,228 million, up $5,217 million 3%. Private Bank deposits increased 4% to $18.5 billion at quarter-end. Funding shifted toward borrowings, with total borrowed funds increasing to $17,832 million, including higher FHLB advances. Credit remained favorable: the provision was $125 million, net charge-offs were $137 million, and the net charge-off ratio was 0.37 versus 0.46 a year earlier. Nonaccrual loans increased 2% sequentially, though they declined 4% year over year.
Fee performance was mixed. Record Wealth fees of $109 million rose $16 million 17% year over year and $7 million 7% sequentially, while service charges, card fees, FX and derivative products, and letter of credit and loan fees also increased. These gains were partly offset by lower capital markets fees and mortgage banking fees. Mortgage banking fees were $35 million, down $7 million 17% sequentially, primarily due to a $13 million decline in net MSR valuation. Noninterest income was therefore down $5 million sequentially but up $17 million year over year.
Capital returns remained material, with $322 million returned during the quarter through $197 million of common dividends and $125 million of repurchases. The board raised the quarterly dividend to $0.52 per share and increased repurchase-program capacity to $1.95 billion. The principal capital and valuation offset was tangible book value per common share of $35.78, down 6.6% sequentially because higher long-term rates negatively affected the investment securities and swap portfolios. CET1 was 10.5%, compared with 10.4% in 2Q26 and 10.7% in 3Q25. No quantitative forward guidance was provided, although management stated confidence in its positioning and outlook for Q4 and 2027.
Management, verbatim
We continued to deliver attractive revenue and earnings growth in the third quarter, notwithstanding significant volatility in the external environment. We remain focused on executing our strategic initiatives, advancing our AI, technology and cybersecurity agenda, and attracting great talent. We remain confident in our positioning and outlook for Q4 and for 2027.
Bruce Van Saun, Chairman and CEO
Not in the filing
stated, not guessed- Quantitative forward revenue guidance was not provided.
- Quantitative forward expense guidance was not provided.
- Quantitative forward tax-rate guidance was not provided.
- Quantitative forward net interest income or net interest margin guidance was not provided.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash balance was not reported.
- Prior outlook was not provided, so comparison with prior guidance is unavailable.
- CFO commentary was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Citizens Financial Group (CFG) filed a Form 8‑K reporting its Q3 2026 results, including earnings growth, dividend increase, and expanded share repurchase program.
Ticker impact
Citizens Financial Group reported Q3 2026 earnings with net income up 29% YoY, EPS $1.41 up 34% YoY, and raised its quarterly dividend by 13%.
likely upward pressure as investors price in the earnings beat and higher dividend.
Revenue and net income both rose materially, ROTCE improved to 15.1%, and the board increased the dividend and share repurchase capacity, all of which are bullish signals.
Market effects
Banking sector may see modest uplift as a regional bank demonstrates earnings resilience.
U.S. regional banks could benefit from positive sentiment spillover.
Limited; impact confined to U.S. financial services investors.
Counterpoint
Higher dividend and buyback may mask underlying credit risk if loan growth slows.
Key entities
- ExecutiveBruce Van Saun
Chairman and CEO of Citizens Financial Group who commented on the results.
