Citizens Financial Group: Good 2Q, ROTCE Up; NII, Capital Markets, Private Bank Growth Key Drivers

Research evidence excerpt

Citizens Financial Group: Good 2Q, ROTCE Up; NII, Capital Markets, Private Bank Growth Key Drivers

J P M O R G A N North America Equity Research

20 July 2026

Citizens Financial Group Overweight

CFG, CFG US

Good 2Q, ROTCE Up; NII, Capital Markets, Private Price (17 Jul 26):$72.39

Bank Growth Key Drivers Price Target (Dec-26):$76.00

Citizens posted good 2Q core EPS of $1.29 with ROTCE stepping up sharply to Banks — Large-Cap

AC13.9%. Citizens is benefiting from continued improvement in net interest income Vivek Juneja

and margin which should move ROTCE up further in 2H26 and into 2027. The (1-212) 622-6465

private bank saw improved growth in deposits and loans, and Citizens plans to vivek.juneja@jpmorgan.com

expand a lot further in 2027, going from 10 to 15-16 offices. Similar to peers, Andrew J Dietrich

Citizens shifted to some FHLBB funding with pick up in loan growth - this is (1-212) 622-4244

resulting in tad pressure on net interest margin but net interest income outlook is aj.dietrich@jpmorgan.com

holding up due to the acceleration in loan growth. Citizens confirmed its Sai M Nettem

expectation for benefit from Reimagine the Bank of $100 mil by YE26, $200 mil (1-212) 622-2666

sai.nettem@jpmorgan.com

by YE27, and $450 mil by YE28 but some of this benefit is likely to be reinvested. J.P. Morgan Securities LLC

Citizens saw a large reduction in its capital requirement with the stress test, but this

will not likely result in increased share buybacks until its capital builds up further

- its proforma CET1 ratio is close to peers and it is putting capital into faster loan Quarterly Forecasts (FYE Dec)

growth currently. Adj. EPS ($)

2025A 2026E 2027E

• 2Q results were marked by: 1) strong net interest income growth qoq and Q1 0.77 1.13A