Citizens Financial Group reported fourth-quarter net interest income of $2.05 billion, up 6.8% year-over-year, driven by higher loan yields and a 3.5% increase in average interest-earning assets. Non-interest income climbed 4.2% to $780 million, led by fee growth in wealth management and treasury services. The bank delivered adjusted EPS of $1.18, topping the consensus estimate of $1.11 by 6.3%, and the shares rose nearly 2.8% in early trading following the release.

Total loans grew 5.1% sequentially to $155 billion, supported by a 7% increase in commercial real estate balances and a 4% rise in consumer installment loans. Average deposits held firm at $180 billion, with a stable cost of funds of 0.85%. Net charge-offs for the quarter were 0.28% of average loans, compared with 0.31% in Q3, while the allowance for credit losses covered 1.25% of total loans, underscoring resilient asset quality amid moderate economic headwinds.

For the full year, Citizens reported revenue of $9.1 billion, a 5.5% increase over 2024, and adjusted net income of $2.8 billion, up 8.2%. Non-interest expense rose just 2.3% year-over-year to $5.4 billion, reflecting continued investment in digital transformation and branch optimization. The efficiency ratio improved to 56.2% from 57.8% a year earlier, as cost controls offset higher technology spending.

Management reaffirmed its 2026 EPS target of $4.75–$5.00, assuming mid-single-digit loan growth and a net interest margin near 3.15%. Analysts forecast Q1 EPS of $1.11 and revenue of $2.15 billion. On a valuation basis, CFG trades at a P/E of 15.36 and carries a debt-to-equity ratio of 0.41, signaling moderate leverage. Investors will watch margin trends and expense leverage as key drivers of future returns.