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Citizens Financial Group (NYSE:CFG) Exceeds Q2 Expectations

By: StockStory

July 17, 2025 at 06:47 AM EDT

CFG Cover Image

Regional banking company Citizens Financial Group (NYSE: CFG) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 4% year on year to $2.04 billion. Its GAAP profit of $0.92 per share was 4.2% above analysts’ consensus estimates.

Is now the time to buy Citizens Financial Group? Find out by accessing our full research report, it’s free.

Citizens Financial Group (CFG) Q2 CY2025 Highlights:

Net Interest Income: $1.44 billion vs analyst estimates of $1.44 billion (1.9% year-on-year growth, in line)
Net Interest Margin: 2.9% vs analyst estimates of 3% (7 basis point year-on-year increase, in line)
Revenue: $2.04 billion vs analyst estimates of $2.01 billion (4% year-on-year growth, 1.5% beat)
Efficiency Ratio: 64.8% vs analyst estimates of 65.3% (0.5 percentage point beat)
EPS (GAAP): $0.92 vs analyst estimates of $0.88 (4.2% beat)
Market Capitalization: $20.37 billion

Company Overview

Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income.

Unfortunately, Citizens Financial Group’s 3.3% annualized revenue growth over the last five years was mediocre. This was below our standard for the bank sector and is a poor baseline for our analysis.

Citizens Financial Group Quarterly Revenue

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Citizens Financial Group’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 4.4% annually. Citizens Financial Group Year-On-Year Revenue Growth Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Citizens Financial Group reported modest year-on-year revenue growth of 4% but beat Wall Street’s estimates by 1.5%.

Net interest income made up 71.7% of the company’s total revenue during the last five years, meaning lending operations are Citizens Financial Group’s largest source of revenue.

Citizens Financial Group Quarterly Net Interest Income as % of Revenue

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

Citizens Financial Group’s TBVPS grew at a sluggish 2.3% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 12.5% annually over the last two years from $27.82 to $35.23 per share.

Citizens Financial Group Quarterly Tangible Book Value per Share

Over the next 12 months, Consensus estimates call for Citizens Financial Group’s TBVPS to grow by 6.2% to $37.40, mediocre growth rate.

Key Takeaways from Citizens Financial Group’s Q2 Results

It was encouraging to see Citizens Financial Group beat analysts’ revenue expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $46.60 immediately after reporting.

So should you invest in Citizens Financial Group right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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