Citizens Financial Group delivered a second quarter that outpaced Wall Street’s revenue and adjusted profit expectations, leading to a significant positive market reaction. Management attributed the company’s performance to strong growth in net interest income, disciplined expense control, and a resumption of loan growth across consumer, private bank, and commercial segments. CEO Bruce Van Saun emphasized, “We announced strong financial results today that exceeded expectations, notwithstanding tremendous uncertainty in the macro environment.” The company also reported robust fee income, particularly from wealth management, card, and mortgage, while maintaining stable credit trends and executing $200 million in share repurchases.
Is now the time to buy CFG? Find out in our full research report (it’s free).
Citizens Financial Group (CFG) Q2 CY2025 Highlights:
- Revenue: $2.04 billion vs analyst estimates of $2.01 billion (3.8% year-on-year growth, 1.5% beat)
- Adjusted EPS: $0.92 vs analyst estimates of $0.88 (4.2% beat)
- Market Capitalization: $20.77 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Citizens Financial Group’s Q2 Earnings Call
- Ryan Nash (Goldman Sachs): Asked about the sustainability of loan growth across segments and borrower sentiment. CEO Bruce Van Saun described the quarter as an inflection point and noted broad-based optimism, with management expecting growth to continue if macro conditions remain stable.
- L. Erika Penala (UBS): Inquired about deposit growth strategy and funding mix. CFO John Woods explained that the company is focused on low-cost deposit growth, especially in the private bank, and expects a stable loan-to-deposit ratio as deposit trends remain favorable.
- Matthew O’Connor (Deutsche Bank): Sought details on the “reimagining the bank” initiative and its distinctiveness from prior programs. CEO Bruce Van Saun and Brendan Coughlin, Head of Consumer Banking, said the effort will span all business areas, focusing on AI implementation and process simplification, with broad opportunities for cost savings and operational improvement.
- Ken Usdin (Autonomous Research): Asked about capital markets fee pipelines and the outlook for advisory and underwriting activities. Management responded that pipelines are strong, especially in M&A and equity underwriting, with several deals delayed to Q3 but overall momentum building.
- Steven Alexopoulos (TDC): Questioned the achievability of Private Bank deposit targets. Brendan Coughlin expressed confidence in reaching the year-end goal, citing new team additions, strong demand, and ongoing market expansion.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the pace of Private Bank loan and deposit growth and whether the segment continues to deliver on its ambitious targets, (2) the impact of the “reimagining the bank” initiative as plans become more concrete and AI-driven efficiencies start to materialize, and (3) the sustainability of net interest margin expansion amid changing rate environments and competitive pressures. Execution on these fronts, alongside stable credit trends, will be key signposts for continued momentum.
Citizens Financial Group currently trades at $48.25, up from $46.95 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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