Citizens Financial Q3 earnings beat, revenue misses as capital markets fees decline

Citizens Financial Group (CFG) stock slipped 2.3% in Friday premarket trading after its Q3 revenue fell short of the Wall Street consensus. Noninterest income also fell short of consensus as capital markets fees declined from the prior quarter and a year ago.

The company's board also declared a quarterly common stock dividend of $0.52 per share, a 13% increase from the previous quarter.

For the last quarter of the year, the company expects Q4 net interest income to rise ~2.5%-3% from Q3's $1.675B and noninterest income to increase ~4%-5% from Q3's $647M. Noninterest expense is seen edging up ~1% from Q3's $1.393B.

Citizens (CFG) said it sees “meaningful” net interest margin improvement through 2027, supporting its 3.30%-3.50% target.

Q3 GAAP EPS of $1.41, beating the average analyst estimate of $1.39, rose from $1.30 in Q2 and $1.05 in last year’s Q3.

Revenue of $2.32B, lagging the $2.34B consensus, rose from $2.16B in the prior quarter and $2.12B a year ago.

Net interest income of $1.68B, in line with the S&P CapIQ consensus, rose/fell 3% Q/Q and 13% Y/Y. Interest-bearing deposit costs increased 5 basis points from Q2 to 2.13%. Total deposit costs increased 3 bps to 1.66%, and total cost of funds increased 3 bps to 1.88%.

Net interest margin (FTE) of 3.19% improved from 3.17% in the previous quarter and 3.00% in the year-ago period.

Noninterest income of $647M, missing the Visible Alpha estimate of $659M, fell 1% Q/Q and rose 3% Y/Y. Capital markets fees of $149M dipped 3% Q/Q and 10% Y/Y, while service charges and fees of $120M grew 3% Q/Q and 7% Y/Y. Wealth fees, totaling $109M, grew 7% Q/Q and 17% Y/Y.

Noninterest expense of $1.39B, vs. the Visible Alpha consensus of $1.40B, was flat Q/Q and increased 4% Y/Y.

Preprovision profit grew 4% Q/Q and 19% Y/Y to $929M.

Provision for credit losses of $125M, lower than the S&P CapIQ estimate of $136M, decreased from $134M in Q2 and $154M in Q3 2025.

Period-end loans and leases increased to $143.2B from $147.5B in Q2, while period-end deposits slipped to $185.2B from $185.6B in the prior quarter.

Return on tangible common equity increased to 15.1% from 13.9% in the prior quarter and 11.7% a year ago.