Citizens Financial Group third-quarter profit rises 29% to $636 million as dividend rises 13%

Citizens Financial Group, Inc. (CFG) reported third-quarter 2026 net income of $636 million, up 29% from $494 million a year earlier, the company said in a filing on Friday.

Diluted earnings per share were $1.41, up 34% from $1.05 a year earlier and up 8% from $1.30 in the second quarter.

Total revenue rose 10% from a year earlier to $2,322 million, while pre-provision profit climbed 19% to $929 million.

Here's how the company did:

• Diluted earnings per share: $1.41 vs. $1.05 a year earlier
• Total revenue: $2,322 million vs. $2,118 million a year earlier
• Net income: $636 million vs. $494 million a year earlier
• Pre-provision profit: $929 million vs. $783 million a year earlier

Net income rose 8% from the second quarter, when it was $587 million. Return on average tangible common equity was 15.1%, compared with 11.7% a year earlier.

Net interest income increased 13% to $1,675 million from $1,488 million a year earlier. The company said its net interest margin on a fully taxable-equivalent basis was 3.19%, up from 3.00%, reflecting lower terminated swap impacts, Non-Core runoff, fixed-rate asset repricing and improved funding costs.

Noninterest income was $647 million, up 3% from $630 million a year earlier but down 1% from the second quarter. Wealth fees rose to $109 million from $93 million, a new record.

Capital markets fees fell to $149 million from $166 million, reflecting lower M&A compared with particularly strong results in the third quarter of 2025. Mortgage banking fees fell to $35 million from $49 million, reflecting lower net mortgage servicing rights valuation results and lower production fees.

Noninterest expense rose 4% to $1,393 million from $1,335 million a year earlier. Outside services increased $13 million, primarily reflecting costs to implement the Reimagine the Bank program. Implementation costs were about $15 million in the quarter, according to the earnings presentation.

The efficiency ratio improved to 60.0% from 63.0%. The effective tax rate was 20.9%, against 21.4% a year earlier. The company said the rate was lower than in the second quarter because of discrete tax benefits.

The provision for credit losses was $125 million, down from $154 million a year earlier. Net charge-offs were 37 basis points of average loans and leases, compared with 46 basis points in the third quarter of 2025. Nonaccrual loans were $1.5 billion, down 4% from a year earlier.

“We continued to deliver attractive revenue and earnings growth in the third quarter, notwithstanding significant volatility in the external environment,” said Chairman and CEO Bruce Van Saun. “We remain focused on executing our strategic initiatives, advancing our AI, technology and cybersecurity agenda, and attracting great talent. We remain confident in our positioning and outlook for Q4 and for 2027.”

The board declared a quarterly common dividend of $0.52 per share, a $0.06, or 13%, increase from the prior quarter. The dividend is payable Nov. 13 to holders of record at the close of business on Oct. 30.

The board also raised the capacity of the common share repurchase program to $1.95 billion, an increase of $1.3 billion above the $650 million remaining under the June 2025 authorization. The company repurchased $125 million of common shares in the quarter, compared with $225 million in the second quarter and $75 million a year earlier. Total capital returned to shareholders was $322 million.

Period-end loans and leases were $148.2 billion, up from $140.9 billion a year earlier. Period-end deposits rose to $185.2 billion from $180.0 billion, and total assets were $234.5 billion at the end of the quarter.

The common equity tier 1 ratio was 10.5%, down from 10.7% a year earlier. Tangible book value per common share was $35.78, compared with $36.73 a year earlier. The company said the decline reflected higher long-term rates affecting its securities and swap portfolios.

The Private Bank & Wealth business contributed $0.16 to third-quarter earnings per share, or 11% of the total, the company said. Private Bank spot deposits were $18.5 billion, up 4% from the second quarter, and total Private Bank client assets were $12.4 billion.

For the fourth quarter, the company's outlook calls for net interest income up about 2.5% to 3% from the third quarter's $1,675 million. Noninterest income is expected to rise about 4% to 5% from $647 million, and noninterest expense is expected to rise about 1% from $1,393 million.

The company expects net charge-offs to be stable to down slightly from 37 basis points and an effective tax rate of about 22%. It also expects a common equity tier 1 ratio of about 10.6% to 10.7% and about $200 million in share repurchases in the fourth quarter.

The company projects net interest margin of 3.30% to 3.50% by the fourth quarter of 2027, assuming a 10-year Treasury rate of about 5.00% through the end of 2027. It said it is well positioned to achieve a return on average tangible common equity of 16% to 18% by the end of 2027.

Reimagine the Bank, a multi-year transformation program, is targeting a pre-tax run-rate benefit of about $100 million by year-end 2026, about $225 million by year-end 2027 and $450 million or more by year-end 2028. The company expects minimal earnings-per-share impact in 2026 as start-up costs offset in-year benefits.

Full-time equivalent colleagues totaled 17,609 at period-end, up from 17,496 a year earlier. The company said its Non-Core portfolio has been reduced to about $1.3 billion and is expected to decline to about $1.0 billion by the end of 2026.

The company furnished its earnings press release, financial supplement and earnings release presentation as exhibits to the filing.