Citizens Financial Tops Q3 Earnings Estimates, Raises Dividend 13%

Citizens Financial Group, Inc. (CFG) reported third-quarter 2026 earnings per share of $1.41, up 34% from the prior-year period and exceeding analyst expectations of $1.38. Total quarterly revenue rose 10% year over year to $2.32 billion, slightly behind expectations of $2.33 billion. Net income reached $636 million, supported by higher interest and fee income alongside improved credit quality.

The positive performance was driven by a 13% increase in net interest income to $1.68 billion, alongside a 19 basis point expansion in net interest margin to 3.19%. Efficiency improved as the efficiency ratio fell to 60% from 63% a year earlier. Operating gains were partially tempered by a 4% rise in non-interest expenses to $1.39 billion and lower capital ratios, with the common equity tier 1 ratio declining to 10.5%.

Looking ahead, the board approved a 13% dividend increase to $0.52 per share and expanded the share repurchase authorization to $1.95 billion. For the fourth quarter of 2026, management projects net interest income to grow 2.5% to 3% sequentially, with net interest margin expected between 3.23% and 3.26%. The bank also targets a net interest margin between 3.30% and 3.50% by late 2027.