Citizens Financial Group · Earnings release

Citizens Financial Group, Inc. Reports Fourth Quarter 2025 Net Income of

Positive Operating Leverage of 1.3% QoQ and 5.2% YoY on an Underlying basis

on an Underlying basis, respectively

Key Financial Data*

Fourth Quarter 2025 Highlights

Income

Statement

($s in millions)

–Continued strong Private Bank progress, contributing $0.10 to EPS, up $0.02 QoQ

■PPNR of $814 million, up 4% QoQ, 19% YoY

–NII up 3.3% QoQ as NIM continues to expand, up 7 bps to 3.07%

–Strong fee performance led by Wealth, up 5% QoQ and 31% YoY, and Capital Markets, up 16% YoY

–Positive operating leverage of 1.3% QoQ; 5.2% YoY

–Efficiency ratio improved 79 bps to 62.2%

■Loans up 1% QoQ on a spot and average basis with growth led by Private Bank and Commercial

–Lower Non-Core runoff and balance sheet optimization impacts

■Continuing favorable credit trends; net charge-offs of 43 bps, down 3 bps QoQ

■Strong ACL coverage of 1.53%, down slightly QoQ, reflecting improved loan mix

■Average deposits up 2% QoQ driven by growth in Private Bank and Commercial

–Private Bank spot deposits of $14.5 billion

–Interest-bearing deposit costs down 15 bps QoQ

■Strong liquidity profile; spot LDR of 77.8%

■Strong CET1 ratio of 10.6%; 9.5% adjusted for AOCI opt-out removal

Total revenue

$

$

$

Pre-provision profit

Underlying pre-provision profit

Provision for credit losses

Net income

Underlying net income

Balance Sheet

&

Credit Quality

($s in billions)

Period-end loans and leases

$

$

$

Average loans and leases

Period-end deposits

Average deposits

Period-end loan-to-deposit ratio

%

%

%

NCO ratio

%

%

%

Financial Metrics

Diluted EPS

$

$

$

Underlying Diluted EPS

ROTCE

%

%

%

Underlying ROTCE

Net interest margin, FTE

Efficiency ratio

Underlying efficiency ratio

CET1

%

%

%

TBV/Share

$

$

$

Notable Items

($s in millions except per share data)

Pre-tax $

EPS

Pre-tax $

EPS

Pre-tax $

EPS

Integration-related

$

—

$

—

$

—

$

—

$

(2)

$

—

TOP/Other

—

—

—

—

Total

$

—

$

—

$

—

$

—

$

$

*Results presented on an Underlying basis are non-GAAP Financial Measures. See page 15 for additional information on our use of Non-GAAP Financial Measures.

Citizens Financial Group, Inc.

Comments from Chairman and CEO Bruce Van Saun

“We are pleased to report good fourth quarter and full year results that reflect strong execution of our key growth initiatives and continued improvement in our net interest margin,” said Chairman and CEO Bruce Van Saun. “Our strong fee growth was paced by Capital Markets and Wealth, we continue to achieve positive operating leverage, up 5% in Q4 vs. prior year, our credit costs are trending favorably, and we delivered an 80% return of capital to shareholders for the year. The Private Bank hit year end deposits of $14.5 billion, delivering 7% accretion to our bottom line at a 25% ROE. I would like to thank our colleague base for their fine effort and dedication in continuing to serve our customers well and in positioning us for a strong 2026 and bright future.”

Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.46 per share. The dividend is payable on February 18, 2026 to shareholders of record at the close of business on February 4, 2026.

*ROE represents Return on Regulatory Capital.

2

Citizens Financial Group, Inc.

Earnings highlights(1):

Quarterly Trends

Full Year

($s in millions, except per share data)

Earnings

$/bps/%

%

$/bps/%

%

$/bps

Net interest income

$

$

$

$

3

%

$

9

%

$

$

$

Noninterest income

(2)

8

Total revenue

2

9

Noninterest expense

8

1

2

Pre-provision profit

4

Provision for credit losses

Net income

7

Preferred dividends/other(2)

2

5

5

6

Net income available to common stockholders

$

$

$

$

7

%

$

%

$

$

$

After-tax notable Items

—

—

—

—

—

Underlying net income

$

$

$

$

7

%

$

%

$

$

$

Underlying net income available to common stockholders

7

Average common shares outstanding

Basic (in millions)

—

(3)

Diluted (in millions)

—

(2)

Diluted earnings per share

$

$

$

$

8

%

$

%

$

$

$

Underlying diluted earnings per share

8

$

Performance metrics

Net interest margin

%

%

%

7

bps

bps

%

%

bps

Net interest margin, FTE

7

Effective income tax rate

Efficiency ratio

Underlying efficiency ratio

Return on average tangible common equity

Underlying return on average tangible common equity

Return on average total tangible assets

5

Underlying return on average total tangible assets

%

%

%

5

bps

bps

%

%

bps

Capital adequacy(3,4)

Common equity tier 1 capital ratio

%

%

%

Total capital ratio

Tier 1 leverage ratio

Tangible common equity ratio

Allowance for credit losses to loans and leases

%

%

%

(3)

bps

(9)

bps

Asset quality(4)

Nonaccrual loans and leases to loans and leases

%

%

%

(3)

bp

bps

Allowance for credit losses to nonaccrual loans and leases

—

%

9

%

Net charge-offs as a % of average loans and leases

%

%

%

(3)

bps

bps

%

%

(3)

bps

(1) Unless otherwise noted, references to balance sheet items are on an average basis, loans exclude loans held for sale, earnings per share

represent fully diluted per common share and references to NIM are on a FTE basis.

(2) 3Q25 includes preferred stock early redemption costs of $5 million.

(3) Current reporting-period regulatory capital ratios are preliminary.

(4) Capital adequacy and asset-quality ratios calculated on a period-end basis, except net charge-offs.

3

Citizens Financial Group, Inc.

The following table provides information on Underlying results which exclude the impact of notable items, recorded in 2024.

Underlying results:

Quarterly Trends

Full Year

($s in millions, except per share data)

$/bps

%

$/bps

%

%

Net interest income

$

$

$

$

3

%

$

9

%

$

$

4

%

Noninterest income

(2)

Total revenue

$

$

$

$

2

%

$

9

%

$

$

6

%

Noninterest expense

8

1

4

5

Provision for credit losses

Net income available to common stockholders

$

$

$

$

7

%

$

%

$

$

%

Performance metrics

EPS

$

$

$

$

8

%

$

%

$

$

%

Efficiency ratio

%

%

%

bps

bps

%

%

Return on average tangible common equity

%

%

%

bps

bps

%

%

bps

Consolidated balance sheet summary(1):

($s in millions)

$/bps

%

$/bps

%

Total assets

$

$

$

$

2

%

$

4

%

Total loans and leases

1

3

Total loans held for sale

Deposits

2

5

Stockholders' equity

2

9

Stockholders' common equity

2

9

Tangible common equity

$

$

$

$

3

%

$

%

Loan-to-deposit ratio (period-end)(2)

%

%

%

bps

bps

Loan-to-deposit ratio (average)(2)

%

%

%

bps

bps

(1) Represents period-end unless otherwise noted.

(2) Excludes loans held for sale.

4

Citizens Financial Group, Inc.

Notable items:

There are no notable items in 2025, as our intention going forward is to limit these to those items of greatest significance. Fourth quarter 2024 and full year 2024 results reflect notable items primarily related to integration costs associated with recent acquisitions, as well as TOP revenue and efficiency initiatives. These notable items were excluded from reported results to better reflect Underlying operating results.

Notable items - Integration-related

($s in millions, except per share data)

Pre-tax

After-tax

Pre-tax

After-tax

Pre-tax

After-tax

Pre-tax

After-tax

Pre-tax

After-tax

Salaries & benefits

$

—

$

—

$

—

$

—

$

(2)

$

(1)

$

—

$

—

$

(9)

$

(6)

Equipment and software

—

—

—

—

—

—

—

—

—

—

Outside services

—

—

—

—

—

—

—

—

(1)

(1)

Occupancy

—

—

—

—

—

—

—

—

—

—

Other expense

—

—

—

—

—

—

—

—

—

—

Noninterest expense

$

—

$

—

$

—

$

—

$

(2)

$

(1)

$

—

$

—

$

$

(7)

EPS Impact - Noninterest expense

$

—

$

—

$

—

$

—

$

Total Integration-related

$

—

$

—

$

—

$

—

$

(2)

$

(1)

$

—

$

—

$

$

(7)

EPS Impact - Total Integration-related

$

—

$

—

$

—

$

—

$

Other notable items - TOP & Other

($s in millions, except per share data)

Pre-tax

After-tax

Pre-tax

After-tax

Pre-tax

After-tax

Pre-tax

After-tax

Pre-tax

After-tax

Tax notable items

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

7

Noninterest income

—

—

—

—

8

—

—

Salaries & benefits

—

—

—

—

—

—

Equipment and software

—

—

—

—

(3)

(2)

—

—

Outside services

—

—

—

—

(4)

(3)

—

—

Occupancy

—

—

—

—

(5)

(4)

—

—

FDIC special assessment(1)

—

—

—

—

9

6

—

—

Other expense

—

—

—

—

(4)

(3)

—

—

Noninterest expense

$

—

$

—

$

—

$

—

$

$

$

—

$

—

$

$

Total Other Notable Items

$

—

$

—

$

—

$

—

$

$

$

—

$

—

$

$

EPS Impact - Other Notable Items

$

—

$

—

$

$

—

$

Total Notable Items

$

—

$

—

$

—

$

—

$

$

$

—

$

—

$

$

Total EPS Impact

$

—

$

—

$

$

—

$

(1) The FDIC special assessment earnings per share impact is $0.01 and $(0.05) for fourth quarter 2024 and full year 2024 respectively.

5

Citizens Financial Group, Inc.

Discussion of results:

Net interest income

($s in millions)

$/bps

%

$/bps

%

Interest income:

Interest and fees on loans and leases and loans held for sale

$

$

$

$

(5)

—

%

$

(8)

—

%

Investment securities

1

—

4

Interest-bearing deposits in banks

(8)

(8)

Total interest income

$

$

$

$

—

%

$

(1)

%

Interest expense:

Deposits

$

$

$

$

(4)

%

$

%

Short-term borrowed funds

—

5

1

(5)

(1)

Long-term borrowed funds

Total interest expense

$

$

$

$

(6)

%

$

%

Net interest income

$

$

$

$

3

%

$

9

%

Net interest margin, FTE

%

%

%

7

bps

bps

vs.

Net interest income of $1.5 billion increased 3.3%, reflecting a higher net interest margin along with a 1% increase in average interest-earning assets.

•Net interest margin of 3.07% increased 7 basis points, reflecting the benefit of Non-Core runoff and lower terminated swap impacts, fixed-rate asset repricing and improved funding costs, partially offset by lower asset yields.

•Interest-bearing deposit costs decreased 15 basis points to 2.20%; total deposit costs decreased 12 basis points to 1.72%; total cost of funds decreased 15 basis points to 1.90%.

vs.

Net interest income of $1.5 billion increased 9%, primarily reflecting a higher net interest margin.

•Net interest margin of 3.07% increased 20 basis points, largely driven by the benefit of Non-Core runoff and terminated swap impacts, as well as fixed-rate asset repricing benefits, partially offset by lower asset yields.

6

Citizens Financial Group, Inc.

Noninterest Income

($s in millions)

$

%

$

%

Service charges and fees

$

$

$

$

—

—

%

$

3

3

%

Capital markets fees

Wealth fees

5

5

Card fees

(1)

(1)

Mortgage banking fees

3

6

(8)

Foreign exchange and derivative products

(8)

(1)

(3)

Letter of credit and loan fees

1

2

4

9

Securities gains, net

7

2

4

5

3

Other income(1)

Noninterest income

$

$

$

$

(2)

%

$

8

%

Underlying, as applicable

Card fees

$

$

$

$

(1)

(1)

$

—

—

Other income(1)

$

$

$

$

$

Underlying noninterest income

$

$

$

$

(2)

%

$

%

(1) Includes bank-owned life insurance income and other miscellaneous income for all periods presented.

vs.

Noninterest income of $620 million decreased $10 million, or 2%.

•Capital markets fees were strong, though decreased by $26 million relative to an exceptional third quarter. Several M&A and equity deals pushed into 2026 given impacts associated with the government shutdown in the quarter, with roughly $20 million in fees pushing into 1Q26. Loan syndication fees were higher in the quarter.

•Wealth fees increased $5 million to an all-time high, given an increase in advisory fees, primarily driven by net inflows and market appreciation.

•Mortgage banking fees increased $3 million, as higher MSR valuation results, net of hedge impact, were largely offset by lower servicing.

•FX and derivative products decreased $8 million primarily reflecting lower client interest rate hedging activity in anticipation of lower rates.

•Other income increased $11 million, reflecting favorable performance across several small revenue items.

vs.

Underlying noninterest income of $620 million increased $56 million, or 10%.

•Capital markets fees increased $19 million, driven by higher debt and equity underwriting and loan syndication fees, partially offset by lower M&A fees.

•Wealth fees increased $23 million, primarily reflecting growth in AUM, mainly driven by net inflows.

•Other income increased $13 million, reflecting favorable performance across several small revenue items.

7

Citizens Financial Group, Inc.

Noninterest Expense

($s in millions)

$

%

$

%

Salaries and employee benefits

$

$

$

$

2

%

$

6

%

Equipment and software

2

1

6

3

Outside services

(8)

Occupancy

3

3

(3)

(3)

Other operating expense

5

3

4

2

Noninterest expense

$

$

$

$

8

1

%

$

2

%

Notable items

$

—

$

—

$

$

—

—

%

$

Underlying, as applicable

Salaries and employee benefits

$

$

$

$

2

%

$

9

%

Equipment and software

2

1

9

5

Outside services

(8)

Occupancy

3

3

2

2

Other operating expense

5

3

(1)

(1)

Underlying noninterest expense

$

$

$

$

8

1

%

$

4

%

vs.

Noninterest expense of $1.3 billion increased 0.6%.

•Salaries and employee benefits increased $11 million, reflecting hiring related to the Private Bank and Private Wealth buildout, higher incentive compensation and medical benefit costs.

•Outside services decreased $13 million, primarily driven by lower technology costs.

•Other operating expense increased $5 million, reflecting seasonal factors.

The effective tax rate was 22.0% in fourth quarter 2025 compared with 21.4% in third quarter 2025.

vs.

Underlying noninterest expense of $1.3 billion increased 4%.

•Salaries and employee benefits increased $59 million, reflecting hiring related to the Private Bank and Private Wealth buildout, strong Capital Markets fee performance, and increased medical benefit costs.

•Equipment and software increased $9 million, reflecting technology investments.

•Outside services decreased $18 million, largely driven by lower vendor-related costs.

The effective tax rate was 22.0% in fourth quarter 2025 compared with 21.2% on an Underlying basis in fourth quarter 2024, primarily reflecting less benefit from tax-advantaged investments given higher income and higher state taxes.

8

Citizens Financial Group, Inc.

Interest-earning assets

($s in millions)

Period-end interest-earning assets

$

%

$

%

Investments

$

$

$

$

—

%

$

6

%

Interest-bearing deposits in banks

Commercial loans and leases

2

6

Retail loans

1

(1)

Total loans and leases

1

3

Loans held for sale

Total loans and leases and loans held for sale

1

3

Total period-end interest-earning assets

$

$

$

$

2

%

$

5

%

Average interest-earning assets(1)

Investments

$

$

$

$

1

%

$

4

%

Interest-bearing deposits in banks

2

(3)

Commercial loans and leases

1

3

Retail loans

1

(1)

Total loans and leases

1

1

Loans held for sale

Total loans and leases and loans held for sale

1

1

Total average interest-earning assets

$

$

$

$

1

%

$

1

%

(1) Total average interest-earning assets excludes the mark-to-market on investment securities and unsettled purchases or sales of loans and investments.

vs.

Period-end interest-earning assets of $200.8 billion increased $3.0 billion, or 2%, reflecting a $1.1 billion increase in cash held in interest-bearing deposits and a $194 million increase in investments in securities. Total loans and leases increased $1.8 billion, as growth in the Private Bank, net new money originations in corporate banking and higher commercial line utilization, as well as growth in home equity and mortgage, were partially offset by commercial real estate paydowns and the runoff of Non-Core loans.

Average interest-earning assets of $199.2 billion increased $1.6 billion, or 1%, reflecting a $1.7 billion increase in total loans and leases and a $141 million increase in cash held in interest-bearing deposits, partially offset by a $596 million decrease in loans held for sale related to the final settlement of the Non-Core education loans sold.

The average effective duration of the securities portfolio was 3.8 years, compared with 3.6 years at September 30, 2025 and 3.7 years at December 31, 2024.

vs.

Period-end interest-earning assets of $200.8 billion increased $8.7 billion, or 5%, reflecting a $2.4 billion increase in investments in securities, a $2.4 billion increase in cash held in interest-bearing deposits and a $3.8 billion increase in total loans and leases and loans held for sale. The increase in total loans and leases and loans held for sale was driven by $4.0 billion growth in commercial given net new money originations in corporate banking and higher commercial line utilization, as well as growth in the Private Bank, partially offset by commercial real estate paydowns. This was partially offset by a decline in retail of $547 million, as $4.9 billion of growth in home equity and mortgage was more than offset by Non-Core portfolio runoff.

Average interest-earning assets of $199.2 billion increased $2.6 billion, primarily reflecting a $1.9 billion increase in investments in securities and a $949 million increase in total loans and leases and loans held for sale.

9

Citizens Financial Group, Inc.

Deposits

($s in millions)

Period-end deposits

$

%

$

%

Non-interest bearing demand

$

$

$

$

2

%

$

9

%

Checking with interest

6

Savings

(2)

(6)

Money market

1

9

Time

1

Total period-end deposits

$

$

$

$

2

%

$

5

%

Average deposits

Non-interest bearing demand

$

$

$

$

2

%

$

6

%

Checking with interest