Citizens Financial Group (CFG.N): 2Q26 Review - Fundamental Story Intact Following Solid Print, Estimates Little Changed and Raise PT to $84

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Citizens Financial Group (CFG.N): 2Q26 Review - Fundamental Story Intact Following Solid Print, Estimates Little Changed and Raise PT to $84

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20 Jul 2026 05:00:00 ET │ 15 pages

Citizens Financial Group (CFG.N)

2Q26 Review - Fundamental Story Intact Following Solid Print,

Estimates Little Changed and Raise PT to $84

CITI'S TAKE Buy

Price (17 Jul 26 16:00) US$72.39 CFG was a notable outperformer on earnings day (up ~4.6% vs BKX flat)

Target price US$84.00↑ following a ~5c top-line driven beat balanced between better NII and fees.

We note sentiment moved bearish heading into the print likely around from US$78.00

potential NII softness, which helped the reaction on the day as strong Expected share price return 16.0%

results reinforced the fundamental story. Although 3Q and full-year Expected dividend yield 2.8%

guidance were largely in-line with consensus modelling and our '26 Expected total return 18.9%

estimates little changed, we see improving visibility into sustained Market Cap US$30,612M

earnings growth. Stronger loan growth improves our NII outlook, with

some offset on more compressed NIM trajectory driven by a lower deposit

beta assumption (~46%), and marginally higher fee outlook is offset by an

elevated expense base. We raise our PT to $84 on higher normalized Benjamin GerlingerAC

ROTCE assumption of 17%. +1-212-816-3538

benjamin.gerlinger@citi.com

Estimate Changes — Our 2026E EPS unchanged at $5.30 (vs. FactSet consensus Mikhail Mrotchek

of $5.25), 2027E EPS increases 10c to $6.55 (vs. FactSet consensus of $6.46), and +1-212-816-2345

2028E EPS increases 10c to $7.45. See Figure 1 for more detail on estimate revisions. misha.mrotchek@citi.com

Kaili Wang, CFA

+1-716-730-7408

kaili.wang@citi.com

EPS (US$) Q1 Q2 Q3 Q4 FY FC Cons VA Cons