New Street analyst Joseph Abbott upgraded his outlook on Citizens Financial Group, assigning a price target of $73, representing an 11.6% potential upside from recent levels. Abbott cited CFG’s consistent net interest margin expansion and higher fee contribution from its Capital Markets and Wealth Management divisions as key drivers. He noted that CFG’s diversified revenue streams and improving credit metrics position the bank to outperform peers in a rising rate environment.

In its fourth quarter, Citizens Financial delivered earnings per share of $1.13, surpassing the consensus estimate of $1.11. Total revenue reached $2.157 billion, narrowly above expectations of $2.156 billion. Net interest income benefited from higher average loan balances, while non-interest income rose 7% year-over-year thanks to strong performance in advisory fees and wealth management fees. Operating leverage improved by 5% compared to the prior year, reflecting disciplined cost control.

CFG returned 80% of its distributable capital to shareholders over the past 12 months, including dividends and share repurchases. The Private Bank segment reported year-end deposits of $14.5 billion, contributing a 7% accretion to earnings and a 25% return on equity. Credit costs trended favorably, with provisions and net charge-offs declining sequentially, underscoring management’s cautious underwriting approach and robust reserve coverage.