Citizens Financial Group (CFG): First take: PPNR beat on higher top-line; full year tracking ahead of expectations

Research evidence excerpt

Citizens Financial Group (CFG): First take: PPNR beat on higher top-line; full year tracking ahead of expectations

Equity Research

16 July 2026 | 7:39AM EDT

Citizens Financial Group (CFG): First take: PPNR beat on higher top-line;

full year tracking ahead of expectations

Bottom line on the fundamentals / stock: Overall, this was a solid quarter and Ryan M. Nash, CFA

+1(212)902-8963 | ryan.nash@gs.com

outlook, in our view. PPNR was a beat on a higher revenues, partially offset by slightly Goldman Sachs & Co. LLC

higher costs and its 3Q guide is a little higher than expected (stronger on NII, and a Lucas Haimes

touch higher on costs). While its margin came in a touch lower than expected, this +1(212)902-3305lucas.haimes@gs.com|

was well telegraphed on higher deposit costs and despite this its pointing to higher Goldman Sachs & Co. LLC

NII for 2026 which implies a higher exit run rate. Private bank results remain strong

with spot deposits up ~$1.2bn (avg. +$2.7bn) while loans grew ~$2bn. While costs

were a touch higher its likely due to revenue outperformance.

In terms of its guidance – taking it in pieces – 3Q is a little stronger (+~1% PPNR) on

higher NII offsetting higher costs and the implied 4Q PPNR (assuming NII of 13%,

fees of 8% and costs of 5%) is 1-2% above the street. So overall it was better than

expected – we think the street will probably want to better understand some of the

moving drivers and our assumption is they will address them on the call. CFG

continues to execute well and it now expects to exceed its initial goals for the year.

Additionally, while CFG had been the consensus long in the regional banks in 26,

positioning had softened a bit in recent weeks given concerns regarding higher

deposit costs and recent M&A chatter.