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Citizens Financial outdid Wall Street’s expectations within the second quarter, buoyed by steadily rising internet interest income.
From April by way of June 2025, earnings per share for the financial institution had been $0.92, beating analysts’ common estimate of $0.88, in accordance with S&P. Revenue got here in at $2.04 billion, barely above estimates of $2.01 billion.
The larger distinction was within the backside line: Net income reached $436 million, far outpacing estimates of $389.63, per S&P. It additionally marked an 11% enhance from the identical interval final 12 months.
Citizens CEO Bruce Van Saun credited the rising income to a variety of elements, together with strong internet interest income. NII for the Providence, Rhode Island-based financial institution reached $1.44 billion within the second quarter, up 2% year-over-year.
“We are happy to report strong results right this moment that got here in forward of expectations, paced by strong NII and price progress, disciplined expense administration, and credit score results which can be trending favorably,” Van Saun stated in an announcement. “We are well-positioned to have a strong second half of the 12 months and to maintain that momentum into the medium time period.”
Noticeably absent in that assertion was any point out of the difficult macro atmosphere, which has been rocked by uncertainty over President Trump’s on-again, off-again tariffs. In latest months, Van Saun has expressed optimism that the flux in commerce coverage would easy itself out.
“It seems like we’re slightly bit in a brand new regular,” Van Saun instructed American Banker in June. “People settle for that Trump desires to barter fairer commerce, and he will use the tariffs as a cudgel to attain that, however the worst case situation — of actually tremendous excessive tariffs sticking — is just about off the desk.”
In latest years, Citizens has been retooling its enterprise technique with a variety of new initiatives, together with the creation of a non-public financial institution. In Thursday’s earnings assertion, Van Saun stated the brand new technique has been going nicely.
“Our key strategic initiatives, paced by the non-public financial institution/non-public wealth construct out, proceed to make good progress,” Van Saun stated.
Citizens launched the non-public financial institution in October 2023, in a bid to develop its wealth administration enterprise and convey in additional high-net-worth shoppers. Brendan Coughlin, Citizens’ president, has stated the financial institution is “grounded in providing a world-class, extraordinary buyer expertise.”
Little greater than a 12 months later, Citizens Private Bank turned its first income. And earlier this month, it launched a subsidiary particularly for startup enterprise leaders, dubbed Citizens for Startups, providing “white-glove” banking companies to entrepreneurs.
Read extra about financial institution earnings:https://www.americanbanker.com/earnings
In his assertion on Thursday, Van Saun framed the non-public financial institution as a part of a wider reenvisioning of Citizens’ operations, which he stated would decide up steam over the following few years.
“We have commenced work on a broad ‘Reimagining the Bank’ initiative that may turn into a multi-year TOP program and drive significant advantages from utilizing new applied sciences to serve clients in new methods and run the financial institution higher,” he stated.
Citizens’ complete belongings stand at $218.31 billion. The financial institution operates about 1,000 branches throughout 14 states and the District of Columbia.
