Q2 2025 Citizens Financial Group Inc Earnings Call Transcript
Key Points
- Citizens Financial Group Inc (CFG) reported strong financial results for the second quarter of 2025, exceeding expectations despite macroeconomic uncertainties.
- Net interest income (NII) grew by 3.3% sequentially, driven by a 5 basis point expansion in net interest margin (NIM) and net loan growth across consumer, private bank, and commercial sectors.
- Fee income increased by 10%, with significant contributions from wealth management, card services, and mortgage operations.
- The company maintained good expense discipline, resulting in 500 basis points of operating leverage, and continued meaningful share repurchases.
- CFG's balance sheet remains robust, with strong capital, liquidity, and credit reserve positions, supporting strategic initiatives and growth targets.
- The capital markets division faced challenges due to macroeconomic uncertainty, with weaker debt capital markets and delays in significant M&A deals.
- Spot deposits were somewhat impacted by the timing of inflows and outflows, despite average deposits showing growth.
- The company faces ongoing uncertainty related to tariffs, which could impact economic conditions and market trends.
- CFG's allowance for credit losses slightly decreased, reflecting ongoing concerns about the economic forecast, including a mild recession and macro impacts from tariffs.
- The company is still managing the runoff of non-core portfolios, which continues to be a headwind, although it is expected to ease in the second half of the year.
Good morning, everyone, and welcome to the Citizens Financial Group second-quarter 2025 earnings conference call. My name is Denise, and I will be your operator today. (Operator Instructions) As a reminder, this event is being recorded.
Now I will turn the call over to Kristin Silberberg, Head of Investor Relations. Kristin, you may begin.
Thank you, Denise. Good morning, everyone, and thank you for joining us. First, this morning, our Chairman and CEO, Bruce Van Saun; and CFO, John Woods will provide an overview of our second-quarter results. Brendan Coughlin, Head of Consumer Banking; and Don McCree, Head of Commercial Banking, are also here to provide additional color.
We will be referencing our second-quarter presentation located on our Investor Relations website. After the presentation, we will be happy to take questions. Our comments today will include forward-looking statements which are subject to risks and uncertainties that may cause our results to differ
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