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1. Company Snapshot

1.a. Company Description

Citizens Financial Group, Inc.operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States.The company operates in two segments, Consumer Banking and Commercial Banking.


The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products.This segment serves its customers through telephone service centers, as well as through its online and mobile platforms.The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services.


This segment serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries.It operates approximately 1,200 branches in 14 states and the District of Columbia; 114 retail and commercial non-branch offices in national markets; and approximately 3,300 automated teller machines.The company was formerly known as RBS Citizens Financial Group, Inc.


and changed its name to Citizens Financial Group, Inc.in April 2014.Citizens Financial Group, Inc.


was founded in 1828 and is headquartered in Providence, Rhode Island.

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1.b. Last Insights on CFG

Citizens Financial Group, Inc.'s recent performance was driven by strong Q3 results, with revenues up 11.6% year-over-year and net income rising to $457 million. The company's sequential growth in deposits and loans for the second consecutive quarter signaled a reversal of previous declines. Improved asset quality, with lower net charge-offs and a higher net interest margin, supported stronger earnings and efficiency ratios. Analysts have a consensus "Buy" rating on the stock, with 17 assigning a buy rating and 2 a strong buy rating (MarketBeat.com).

1.c. Company Highlights

2. Citizens Financial Group's Q3 2025 Earnings: A Strong Performance

Citizens Financial Group reported a robust third-quarter 2025, with EPS coming in at $1.05, beating estimates of $1.02. The EPS growth was driven by a 3.5% increase in net interest income (NII) and a 5% rise in fee income. The net interest margin expanded by 5 basis points to 3%, indicating a positive trend. Revenue growth was robust, and the company's CET1 ratio increased to 10.7%, demonstrating a strong capital position.

Publication Date: Oct -16

📋 Highlights
  • EPS Growth:: Sequential EPS increased by $0.13 (14%) driven by 3.5% net interest income growth and 5% fee growth.
  • Private Bank Performance:: Deposits rose $3.8 billion to $12.5 billion, loans grew $1 billion to $5.9 billion in Q3.
  • Strategic Initiatives:: „Reimagine the Bank“ aims for >$400 million run-rate benefits by 2027, targeting 16-18% ROTCE.
  • Dividend Increase:: Quarterly dividend raised to $0.46, a 9.5% increase, reflecting strong capital returns.

Segment Performance

The private bank had a strong quarter, with deposit growth of $3.8 billion to $12.5 billion and loan growth of $1 billion to $5.9 billion. The company expects continued earnings growth in Q4, driven by positive operating leverage, favorable credit trends, and share repurchases. The Reimagine the Bank initiative aims to drive positive net benefits in 2027, with fully phased-in run rate benefits greater than $400 million.

Outlook and Guidance

The company guides for Q4 net interest income growth of 2.5-3%, stable non-interest income, and expenses stable to up slightly. It initially aimed to exit 2025 with a net interest income (NII) range of $3.05 to $3.10 billion but now targets the lower end of that range due to changes in the yield curve and commercial loan pricing. Analysts estimate next year's revenue growth at 8.7%, indicating a positive outlook.

Valuation and Dividend

With a Price-to-Tangible Book Value (P/TBV) that can be derived from the given 'P/B Ratio' of 0.89, and a Dividend Yield of 3.25%, the stock appears to be reasonably valued. The company's return on equity (ROE) stands at 6.41%, and it has declared a quarterly dividend of $0.46, a 9.5% increase. The dividend yield, combined with the potential for long-term growth, makes the stock attractive to income investors.

Credit Profile and Mortgage Business

The company's credit profile is stable, with favorable trends in consumer credit and stable delinquencies. The mortgage business has been right-sized, with a focus on supporting good customers. While there's an affordability issue in the housing market, the company doesn't expect a significant lift in mortgage business from potential rate cuts. However, a decrease in mortgage rates could lead to some refinancing activity.

Reimagine the Bank Initiative

The Reimagine the Bank program is expected to generate over $400 million in total run-rate benefits over time. The company is confident in its ability to achieve this target, and the program's benefits will be additive to its ROTCE target. The initiative involves one-time costs, mainly severance, consulting, and technology-related expenses, with cost-saving opportunities to fund investments.

3. NewsRoom

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CFG Bank Turns to Jack Henry to Modernize Technology and Scale Niche Services

Dec -04

Source: prnewswire.com

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5 Banks That Outperform the S&P 500 in Volatile November

Dec -02

Source: zacks.com

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Head-To-Head Survey: Citizens Financial Group (NYSE:CFG) and Community Heritage Financial (OTCMKTS:CMHF)

Nov -30

Source: defenseworld.net

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Analysts Set Citizens Financial Group, Inc. (NYSE:CFG) PT at $56.57

Nov -18

Source: defenseworld.net

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Citizens Bank, N.A. Announces Redemption of Senior Notes

Nov -17

Source: businesswire.com

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Citizens Financial Preferreds Reviewed: I Rate The Series E As The One To Own

Nov -11

Source: seekingalpha.com

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Citizens Financial Group, Inc. (CFG) Presents at The BancAnalysts Association of Boston Conference Transcript

Nov -06

Source: seekingalpha.com

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Citizens CEO Highlights Rhode Island's Pro-Business Climate and Talent Momentum as Catalysts for Economic Growth

Nov -05

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.74%)

6. Segments

Consumer Banking

Expected Growth: 6.5%

Citizens Financial Group, Inc.'s 6.5% growth in Consumer Banking is driven by increasing deposit growth, expansion of digital banking capabilities, and strategic partnerships. Additionally, the segment benefits from a strong brand presence, diversified product offerings, and a focus on customer experience. Furthermore, the company's investments in data analytics and risk management have improved operational efficiency, contributing to the segment's growth.

Commercial Banking

Expected Growth: 7.2%

Citizens Financial Group's 7.2% commercial banking growth is driven by strategic acquisitions, expansion of treasury management services, and increased lending to middle-market businesses. Additionally, investments in digital platforms and data analytics have enhanced customer experience, leading to increased deposits and fee income. A favorable interest rate environment and strong credit quality have also contributed to the segment's growth.

Non-Core

Expected Growth: 5.8%

Citizens Financial Group's Non-Core segment growth of 5.8% is driven by strategic divestitures, improved risk management, and a favorable interest rate environment. Additionally, the segment benefits from a decline in legacy assets, reduced operating expenses, and a focus on higher-return businesses.

Other

Expected Growth: 6.0%

Citizens Financial Group's 6.0% growth in 'Other' segment is driven by increasing fee income from treasury services, commercial card, and merchant services. Additionally, growth in commercial loan balances and higher interest rates contribute to the segment's expansion. Furthermore, the company's strategic investments in digital capabilities and customer experience enhancements also support this growth.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers cash management, lending, and trade finance solutions to small businesses, middle market companies, and large corporations.

Corporate Banking

Provides treasury management, lending, and risk management solutions to large corporations and institutions.

Wealth Management

Offers investment management, brokerage, and wealth planning services to individuals, families, and institutions.

Mortgage Banking

Provides residential mortgage lending and servicing to individuals and investors.

Student Lending

Offers private student loans and refinancing options to students and families.

8. Citizens Financial Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Citizens Financial Group, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the complexity and specialization of financial services.

Bargaining Power Of Customers

Citizens Financial Group, Inc. has a large customer base, but customers have significant bargaining power due to the ease of switching to competitors.

Bargaining Power Of Suppliers

Citizens Financial Group, Inc. has a diverse supplier base, and suppliers have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The financial services industry has high barriers to entry, and new entrants face significant regulatory and capital requirements, limiting the threat of new entrants.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.47%
Debt Cost 10.71%
Equity Weight 63.53%
Equity Cost 10.71%
WACC 10.71%
Leverage 57.40%

11. Quality Control: Citizens Financial Group, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Popular

A-Score: 6.9/10

Value: 6.3

Growth: 5.9

Quality: 7.0

Yield: 6.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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First Bank

A-Score: 6.9/10

Value: 6.5

Growth: 6.6

Quality: 8.0

Yield: 7.0

Momentum: 5.5

Volatility: 7.7

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First Hawaiian

A-Score: 6.6/10

Value: 6.1

Growth: 4.4

Quality: 6.8

Yield: 8.0

Momentum: 6.0

Volatility: 8.3

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Cathay Bank

A-Score: 6.6/10

Value: 6.3

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Citizens Financial Group

A-Score: 6.5/10

Value: 5.8

Growth: 5.2

Quality: 6.4

Yield: 7.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

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Synovus

A-Score: 6.2/10

Value: 6.9

Growth: 5.4

Quality: 7.1

Yield: 6.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.46$

Current Price

55.46$

Potential

-0.00%

Expected Cash-Flows