Citizens Financial Group Reports $436 Million Net Income for Q2 2025

Citizens Financial Group, Inc. reported a net income of $436 million for the second quarter of 2025, reflecting an increase of $44 million compared to the same period in 2024. For the first half of 2025, the company achieved a net income of $809 million, up $83 million year-over-year. Earnings per diluted share rose to $0.92 for the second quarter and $1.69 for the first half, marking increases of $0.14 and $0.25, respectively, from the prior year. The bank's net interest income for the second quarter was $1.4 billion, a slight increase of $27 million from the previous year, while it decreased by $24 million to $2.8 billion for the first half, primarily due to a decline in average interest-earning assets.

In terms of operational developments, Citizens Financial Group has made strategic moves, including the sale of $1.9 billion in Non-Core education loans, which were reclassified to loans held for sale (LHFS). This transaction is expected to settle throughout 2025, with approximately $800 million already settled. Additionally, the company announced an increase in its common share repurchase program to $1.5 billion, allowing for more aggressive capital management. During the first half of 2025, Citizens repurchased $400 million of its common stock.

The bank's efficiency ratio improved to 64.76% for the second quarter, down from 66.27% in the same period last year, indicating better cost management. Citizens Financial Group's return on average tangible common equity (ROTCE) also increased to 11.05% for the second quarter, compared to 10.61% in the prior year. The tangible book value per common share rose to $35.23, a 9% increase from the end of 2024, driven by a reduction in common shares outstanding and an increase in tangible common equity.

As of June 30, 2025, Citizens Financial Group reported total assets of $218.3 billion, with total loans and leases slightly increasing to $139.3 billion. The bank's total deposits grew to $175.1 billion, reflecting a stable deposit base despite a decline in time deposits. The company continues to focus on enhancing its consumer banking segment, which saw a net interest income increase of $98 million for the second quarter, driven by higher net interest margins and growth in average interest-earning assets.

Looking ahead, Citizens Financial Group anticipates navigating a challenging economic environment characterized by potential interest rate fluctuations and geopolitical uncertainties. The bank's management remains committed to executing its strategic initiatives, including the continued expansion of its Private Bank and Private Wealth services, while maintaining a strong focus on credit quality and operational efficiency.