Citizens Financial (CFG) Q3 2026 Earnings Report
MX:CFG Q3 2026 EPS Results
- Actual EPS
- MXN 26.50
- Consensus EPS
- MXN 26.10
- Beat/Miss
- Beat by +MXN 0.39
- One Year Ago EPS
- MXN 19.73
MX:CFG Q3 2026 Revenue Results
- Actual Revenue
- MXN 61.90B
- Expected Revenue
- MXN 43.96B
- Beat/Miss
- Beat by +MXN 17.94B
- YoY Revenue Growth
- +8.18%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/16/2026
- Time
- Before Open
- Conference Call
- Friday, October 16, 2026
MX:CFG Upcoming Earnings
Citizens Financial's next earnings date is estimated for January 20, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CFG Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Highlights significantly outweighed the challenges, with record revenue, accelerating EPS and ROTCE, expanding NIM, strong capital-markets and private-bank momentum, resilient credit, and favorable fourth-quarter and medium-term targets. The main cautions were fee softness, rate-driven deposit-cost pressure, AOCI-related capital volatility, commercial-loan reductions, macroeconomic uncertainty, and ongoing one-time program costs.
Company Guidance
For the fourth quarter, assuming the Fed raises its target rate by 25 basis points in December, Citizens expects net interest income to be up about 2.5% to 3%, driven by net interest margin of 3.23% to 3.26%, noninterest income to be up approximately 4% to 5%, expenses to be up about 1%, charge offs to be stable to down slightly, and year-end CET1 to be 10.6% to 10.7%, including expected share repurchases of $200 million; this would put the company on track for over 600-basis-points of positive operating leverage for the full year. Citizens projects 4Q 2027 NIM in the range of 3.30% to 3.50% and continues to see a clear path to achieving its 16% to 18% ROTCE target by the end of 27; Reimagine the Bank is expected to deliver about $100 million of annualized pretax benefit exiting 2026, $225 million by the end of 27, and at least $450 million as it exits 2028.
- Strong Earnings and Profitability GrowthThird-quarter EPS was $1.41, up $0.11 or 8.5% sequentially and 34% year over year. ROTCE improved to 15.1% from 13.9% in the second quarter, while PPNR increased 4.5% linked quarter and approximately 19% year over year.
- Record Revenue and Positive Operating LeverageTotal revenue reached a record in Q3. Expense discipline and record revenue produced more than 500 basis points of positive operating leverage year over year, with operating leverage of 1.8% sequentially and 5.3% year over year. The efficiency ratio improved to 60%, and year-to-date operating leverage was 6.3%.
- Net Interest Income and Margin ExpansionNet interest income increased 2.7% linked quarter and 13% year over year, supported by a 1% increase in interest-earning assets and higher net interest margin. NIM rose 2 basis points sequentially to 3.19%, a 19-basis-point increase from the same quarter last year, positioning the company for expected fourth-quarter NIM expansion.
- Positive Fourth-Quarter Financial OutlookFourth-quarter guidance calls for net interest income growth of approximately 2.5% to 3%, NIM of 3.23% to 3.26%, noninterest income growth of approximately 4% to 5%, and expenses up about 1%. The company expects more than 600 basis points of positive operating leverage for the full year, stable-to-slightly-lower charge-offs, and a year-end CET1 ratio of 10.6% to 10.7% including expected share repurchases.
- Strong Capital Return ProgramThe Board increased the quarterly dividend by 13% to $0.52 per share and raised common share repurchase capacity by $1.3 billion to $1.95 billion. The company returned approximately $322 million to shareholders in Q3 and $1.24 billion through the first nine months of the year, including $125 million of share repurchases in Q3.
- Capital, Liquidity, and Funding StrengthCET1 ended the quarter at 10.5%, described as healthy and at the top end of the medium-term target operating range. The company reported robust capital, strong liquidity and funding positions, and a healthy credit reserve. Management expects to continue repurchasing shares, including at least $200 million in Q4.
- Private Bank Growth and ReturnsPrivate bank deposits reached $18.5 billion, up $6 billion year over year, while private bank loans increased $2 billion linked quarter to $11.7 billion. Client assets increased $1.2 billion to $12.4 billion, and the loan portfolio maintained a spread of approximately 4% over deposit costs. Management said the business remains within a 20% to 25% return range and described the private bank as contributing to higher company ROTCE.
- Wealth Management MomentumWealth delivered another record quarter, with fees up 7% linked quarter and 17% year over year, driven by higher advisory fees and asset growth in the private bank and retail network. Retail wealth-management sales were up 30% to 35% year over year, and approximately 65% of wealth-management revenue came from the retail-connected business.
- Strong Capital Markets PipelineManagement reported record-level M&A pipelines, strong deal quality, higher fees per average transaction, and a large backlog extending into the fourth quarter and 2027. Capital markets fees were supported by significantly higher M&A fees, while the company maintained strong market share and ranked as the number 2 middle-market sponsor book runner over the last 12 months.
- Reimagine the Bank ProgressThe Reimagine the Bank program is progressing across technology, business-model simplification, customer experience, productivity, and efficiency. Management expects approximately $100 million of annualized pretax benefit exiting 2026, $225 million by the end of 2027, and at least $450 million exiting 2028, with the 2027 target ahead of the original $200 million plan.
- Healthy Credit PerformanceNet charge-offs were stable at 37 basis points versus the prior quarter. Management described overall credit as broadly favorable, reported no broad-based credit issues, and said retail delinquencies were flat with no signs of stress. The company expects charge-offs to decline as the remaining general-office exposure runs off.
- Improving Portfolio MixThe company continued reducing general-office and multifamily balances while originating lower-loss-content commercial and industrial, residential real-estate-secured, and high-quality private-bank loans. Management said the portfolio mix is improving and that the credit outlook remains positive.
- Deposit Franchise ResilienceAverage deposits were stable linked quarter, average demand deposits increased 2%, and the mix of total interest-bearing and low-cost deposits remained stable at 42% of total deposits. Consumer deposits represented 63% of total deposits versus a peer average of approximately 57%. Management said deposit costs increased only 3 basis points in Q3 and expects strong fourth-quarter spot deposit growth across commercial, private banking, and consumer.
- Commercial and AI Infrastructure OpportunitiesManagement said loan demand had started to pick up entering the fourth quarter and that customers had not materially changed their desire to borrow. The AI ecosystem build-out was described as a strong, relatively price-insensitive demand driver. Citizens is participating through construction lending, financing transactions, bond-market takeouts, and fee-generating advisory work, with most exposure tied to committed power, committed buildings, regulatory approvals, and investment-grade hyperscale lessees.
- Strategic Franchise Investments and ExpansionThe company reported continued progress in its private-bank and wealth build-out, Reimagine the Bank, the consumer next branch project, commercial-bank talent recruitment, New York Metro expansion, AI capabilities, cybersecurity, and additional private-bank teams in Tampa and Philadelphia. The private bank grew from 150 employees in 2023 to nearly 700 and has expanded into Southern California, Northern California, Boston, New York, Florida, and Philadelphia.
- Longer-Term ROTCE Target MaintainedManagement reiterated a clear path to achieving a 16% to 18% ROTCE target by the end of 2027, supported by projected NIM expansion, private-bank growth, diversified capital-markets businesses, normalizing credit, and disciplined expense management.
MX:CFG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 20, 2027 | 2026 (Q4) | 27.79- | 21.24 | ― | ― |
| Oct 16, 2026 | 2026 (Q3) | 26.1026.50 | 19.73 | 34.29% (+6.77) | |
| Jul 16, 2026 | 2026 (Q2) | 23.3224.43 | 17.29 | 41.30% (+7.14) | |
| Apr 16, 2026 | 2026 (Q1) | 20.5021.24 | 14.47 | 46.75% (+6.77) | |
| Jan 21, 2026 | 2025 (Q4) | 20.7121.24 | 15.6 | 36.14% (+5.64) | |
| Oct 15, 2025 | 2025 (Q3) | 19.3219.73 | 14.47 | 36.36% (+5.26) | |
| Jul 17, 2025 | 2025 (Q2) | 16.5917.29 | 14.66 | 17.95% (+2.63) | |
| Apr 16, 2025 | 2025 (Q1) | 14.0814.47 | 12.21 | 18.46% (+2.26) | |
| Jan 17, 2025 | 2024 (Q4) | 15.4815.60 | 6.39 | 144.12% (+9.21) | |
| Oct 16, 2024 | 2024 (Q3) | 14.8614.47 | 15.97 | -9.41% (-1.50) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
