Citizens Financial profit jumps on higher fee income; shares hit all- time high (updated)

Citizens Financial

21/01/2026 17:43

Updates shares in second paragraph, adds CEO quote in 6th paragraph, adds commentary on credit cards in paragraphs 12-13.

NIM expands by 20 basis points, boosting NII

Wealth fees rise 31%, capital market fees up 16%

Co shares hit all-time high

By Prakhar Srivastava

Jan 21 (Reuters) -
Citizens Financial Group CFG.N reported a 32% surge in fourth-quarter profit on Wednesday, helped by higher net interest income and fee growth in wealth and capital markets businesses.

Shares of Citizens hit an all- timehigh of $64.27, and closed at $64.06, up 7%.

A series of Federal Reserve rate cuts and easing concerns over the impact of tariffs have boosted commercial activity, encouraging companies to pursue refinancing and expansion plans, lifting demand for underwriting and loan syndication.

Citizens' net interest income — the difference between what banks pay customers on deposits and earn as interest on loans — rose 9% from a year earlier to $1.54 billion. The gain was driven by a 20-basis-point expansion in net interest margin.

Non-interest income rose 8% to $620 million, supported by robust performance in wealth management and capital markets.

After hiring bankers to serve midsize companies in the Southeast region, California, Texas and New York, "we’re ringing the cash register in the capital markets,” Citizens CEO Bruce Van Saun told Reuters in an interview. Meanwhile, "the private bank we’ve invested in at warp speed" is contributing more to profits, he added.

     Wealth fees climbed 31% during the October-to-December period, while capital markets fees jumped 16%, helped by higher debt and equity underwriting and loan syndication fees.

However, the U.S. government shutdown in October weighed on mergers and acquisitions during the quarter, delaying regulatory approvals and stalling deal timelines, prompting companies to defer transactions.

Truist analyst Brian Foran said the bank's "Reimagine" initiative is expected to lift about 2% to return on tangible common equity by 2028, noting management has "quarter-by-quarter visibility into each Reimagine workstreams and how the costs vs. benefits flow."

Revenue will start to pick up over time as the bank sees improved customer experience, reducing attrition and better product usage, with management "confident in their ability to forecast that," Foran added.

The Providence, Rhode Island-based bank reported a net profit of $528 million, or $1.13 per share, for the three months ended December 31, compared with $401 million, or 83 cents, a year earlier.

Separately, U.S. President Donald Trump reiterated his call to cap credit card interest rates at 10% on Wednesday, urging Congress to approve a one-year cap. Bank CEOs including JPMorgan Chase CEO Jamie Dimon have largely
pushed back
 against the proposal.

 Citizens' CEO echoed Dimon's opposition. "I’m in total agreement with the industry arguments," Van Saun said. "The downstream consequences of a pullback in credit will actually cause havoc. I think it will be negative for the economy and hurt the people it’s intended to help.”

(Reporting by Prakhar Srivastava in Bengaluru, additional reporting by Lananh Nguyen; Editing by Shilpi Majumdar, Shailesh Kuber and David Gregorio)

((Prakhar.srivastava2@thomsonreuters.com;))