CITIZENS FINANCIAL GROUP INC/RI (CFG)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look fairly priced because strong gains already assume continued earnings improvement.

At $74.73, the stock trades at about 16.2 times trailing earnings of roughly $4.60 per share and 1.95 times tangible book value of $38.29, meaning net assets after goodwill. Annualizing second-quarter earnings of $1.30 gives $5.20, lowering the multiple to 14.4 times, while the $1.84 annual dividend yields 2.5%. Those are not bargain levels for a regional bank, but profitability reached 13.9% on tangible common equity. The valuation appears fair only if recent earnings strength broadly holds.

Big pictureEarnings have recovered, but bank cash generation still depends heavily on rates and credit.

Net income fell from $2.32 billion in 2021 to $1.51 billion in 2024, then recovered to $1.83 billion in 2025. First-half 2026 income reached $1.10 billion, up 36% from $809 million a year earlier. Second-quarter net interest income—the difference between interest earned and paid—rose 14%, while fees rose 9% and expected credit-loss expense fell 18%. Reported operating cash flow improved to $2.21 billion in 2025, but bank cash flows swing with deposits and lending, making earnings, credit quality, and capital more informative durability measures.

Business strengthCapital and credit measures are solid, and buybacks have meaningfully reduced the share count.

At June 30, deposits of $185.6 billion funded $147.5 billion of loans, a conservative 79.5% ratio. Core common capital equaled 10.4% of risk-weighted assets, while loan charge-offs fell to 0.37% from 0.48% a year earlier; reserves covered 1.48% of loans. Citizens returned $921 million through $525 million of buybacks and $396 million of dividends during first-half 2026, against $1.10 billion of net income. Shares fell from 440.5 million at 2024 year-end to 422.7 million, so repurchases more than offset $82 million of stock-based pay.

What could change the storyContinued profit growth supports the price, while weaker lending or credit would challenge it.

The bull case requires quarterly earnings near $1.30, a net interest margin around 3.17%, and returns on tangible common equity near 14%; sustained wealth, private-bank, and deal fees would make that more credible. The bear case is concrete: higher deposit costs, weaker loan demand, or charge-offs rising above roughly 0.5% would reverse recent gains and raise credit-loss expense. The price already values annualized second-quarter earnings at 14.4 times, leaving limited protection if profits retreat toward 2025’s $3.86 per share. Capital staying above 10% would preserve buyback flexibility.

$74.73 price considered

AI: News

Second-quarter earnings jumpSecond-quarter profit jumped as lending income, wealth fees, and deal work all improved.

On July 16, Citizens reported $587 million of net income and $1.30 per share, increases of 35% and 41% from a year earlier. Net interest income rose 14% to $1.63 billion, capital-markets fees increased 46% to $153 million, and wealth fees gained 16% to $102 million. Shares closed at $74.40, up 4.61% from the prior close. That same-day move indicates a favorable reception, although timing alone cannot prove the report caused the entire gain.

Stress test passesThe Federal Reserve found Citizens could remain above minimum capital levels in a severe recession.

On June 24, the Federal Reserve projected Citizens’ core common capital ratio falling from 10.6% to a minimum 8.6% under a hypothetical recession featuring 10% unemployment, a 39% commercial-property decline, and a 30% house-price drop. The two-point decline was close to the 1.8-point median and remained above required minimums. This supports the bank’s loss-absorbing capacity. However, the Federal Reserve said the 2026 results would not change current capital requirements, limiting their immediate effect on dividends or buybacks.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2016	2015	2014	2013	2012
Revenue	$1.64B	$1.53B	$1.27B	$1.30B	$1.32B	$1.08B	$1.17B	$1.12B	$5.25B	$4.82B	$4.98B	$4.69B	$4.89B
Operating expenses	$5.31B	$5.23B	$5.51B	$4.89B	$4.08B	$3.99B	$3.85B	$3.62B	$3.35B	$3.26B	$3.39B	$7.68B	$3.46B
Net income	$1.83B	$1.51B	$1.61B	$2.07B	$2.32B	$1.06B	$1.79B	$1.72B	$1.04B	$840.0M	$865.0M	−$3.43B	$643.0M
Basic EPSper diluted share	$3.90	$3.05	$3.14	$4.12	$5.18	$2.22	$3.82	$3.54	$1.97	$1.55	$1.55	-$6.12	$1.15
Diluted EPSper diluted share	$3.86	$3.03	$3.13	$4.10	$5.16	$2.22	$3.81	$3.52	$1.97	$1.55	$1.55	-$6.12	$1.15

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)4$1.48M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 12, 2026Form 4	Moosally MichelleChief Legal Officer	SellCommon Stock	6.0K	$62.16	$376.1K	22.6K
Mar 11, 2026Form 4	LaMonica SusanChief Human Resources Officer	SellCommon Stock	13.3K	$58.04	$769.5K	166.0K
Jul 25, 2024Form 4	Read Craig JackController	SellCommon Stock	3.9K	$43.26	$170.4K	33.6K
Dec 30, 2022Form 4	Cummings KevinDirector	SellCommon Stock · indirect	4.3K	$39.32	$167.3K	0

Review ownership filings at SEC.gov ↗

CITIZENS FINANCIAL GROUP INC/RI (CFG)

Financial charts

Financial statements

Insider buys & sells