Citizens Financial Group, Inc. Q1 FY2026 earnings call

• Bruce noted good financial performance in a seasonally soft quarter with year-over-year EPS growth of 47%, positive operating leverage of 7%, and NIM expansion of 24 basis points. Balance sheet is robust with CET1 at 10.5%. Credit trends favorable. Private bank and wealth business growing. Reimagine the Bank off to strong start with 450 million P&L target by 2028 and ~100 million 2026 exit run rate benefits. Positioning with private capital excellent. New York City Metro Initiative showing progress. One Citizens initiative gaining traction.
• Anoy detailed net interest income up, non-interest income details, expense management, loan and deposit details, credit trends, balance sheet strength, private bank progress, and Reimagine the Bank program details.

Net interest income was up 1.6% year-over-year, driven by expanded net interest margin and higher interest earning assets. Non-interest income was up 11% year-over-year but down 2% quarter-over-quarter. Expenses were managed tightly, up 2.6% quarter-over-quarter. Average and period end loans were up 1% quarter-over-quarter. Deposits were up 1% quarter-over-quarter. Credit trends were favorable with net charge-offs at 39 basis points. The private bank showed growth in customers, balance sheet, and profitability, accounting for roughly 10% of pre-tax income with an ROE over 25%.

• Expect net interest income to be up 3% to 4% in Q2. Non-interest income expected up 3% to 5% in Q2, led by capital markets with risk if market volatility rises. Expenses stable to up 1% in Q2. Charge-off level expected stable to down slightly. End Q2 with CET1 in 10.5% to 10.6% range. Full-year outlook broadly in line with January guide. See clear path to 16-18% RODSI target by end of 2027 with NIM range for 4Q26 322-328% and 4Q27 330-350%.

Q: Scott Seifers asked about capital markets dynamics, forward look, and private credit portfolio.

A: Bruce and Ted discussed capital markets franchise performance, pipeline, and private credit portfolio being managed selectively with good client selection and structures.

Q: Manan Gosalia asked about NII, NIM in rate stay higher for longer scenario, and capital proposals.

A: Bruce and Anoy discussed confidence in NII and NIM outlook, impact of capital proposals on risk-weighted assets.

Q: Ryan Nash asked about loan growth drivers and utilization.

A: Bruce, Brendan, and Ted discussed loan growth drivers across retail, private bank, and commercial, and utilization drivers.

Q: UBS's Erica asked about cap markets fee outlook and NIM/NII with no rate cuts.

A: Bruce confirmed no change to full-year guide, and Anoy and Brendan discussed deposit growth and cost management.

Q: Don Panperi asked about private bank loan mix and capital allocation.

A: Brendan discussed private bank loan mix and Bruce discussed capital allocation priorities.

Q: Ron Davis-Chester asked about stress tests and capital.

A: Bruce discussed stress test expectations and capital allocation.

Q: Ibrahim Poonawalla asked about New York branch strategy and capital plans.

A: Bruce and Brendan discussed New York branch strategy and capital plans.

Q: Gerard Sassidy asked about commercial banking expansion in new markets and AI impact.

A: Bruce and Ted discussed commercial banking expansion and AI impact.

Q: Chris McGready asked about ROTC target.

A: Bruce discussed factors affecting ROTC target.

Q: David Chevrini asked about loan pricing and private credit/NDFI.

A: Bruce, Anoy, and Ted discussed loan pricing discipline and private credit/NDFI management.