Citizens Financial Raises Dividend 13% To $0.52 And Lifts Buyback Capacity To $1.95 Billion
Third-quarter net income rose 29% from a year earlier, while tangible book value per share fell 6.6% from the second quarter.
Citizens Financial Group's board raised the quarterly dividend 13% to $0.52 a share and increased buyback capacity to $1.95 billion, the bank said in an 8-K filed Friday with its third-quarter results. Net income was $636 million, up 29% from a year earlier.
What the earnings release says
Diluted earnings per share were $1.41, up 34% from a year earlier and 8% from the second quarter. Total revenue was $2,322 million, up 10% from a year earlier.
Pre-provision profit, earnings before setting aside money for bad loans, reached $929 million, up 19% from a year earlier. Expenses grew 4%, which left positive operating leverage (revenue growth outpacing expense growth) of 5.3% from a year earlier.
The Private Bank, which serves wealthy clients, contributed $0.16 to earnings per share. Its spot deposits rose about $750 million, or 4%, from the second quarter to $18.5 billion.
CEO Bruce Van Saun said the bank continued to deliver "attractive revenue and earnings growth in the third quarter, notwithstanding significant volatility in the external environment."
Dividend, buyback and the book-value drop
The $0.52 dividend is up $0.06 from the prior quarter. It is payable November 13, 2026 to holders of record at the close of business on October 30, 2026.
The buyback capacity of $1.95 billion is $1.3 billion above the $650 million that remained under the June 2025 authorization. The bank repurchased $125 million of shares in the third quarter, versus $225 million in the second quarter.
Tangible book value per share fell 6.6% from the second quarter to $35.78. The company blamed higher long-term rates, which hurt its securities and swap portfolios. The common equity tier 1 capital ratio, a core measure of loss-absorbing capital, was 10.5%, versus 10.4% in the second quarter.
What the presentation guides to
Per the investor presentation, the bank expects fourth-quarter net interest income up about 2.5% to 3% from the third quarter. It also expects about $200 million in share repurchases.
It projects its net interest margin will reach 3.30% to 3.50% by the fourth quarter of 2027, versus 3.19% in the third quarter of 2026. It targets a return on tangible common equity of 16% to 18% by the end of 2027, against 15.1% this quarter.
The cost program called Reimagine the Bank is targeting about $225 million of pre-tax run-rate benefit by year-end 2027.
The next dated item is the November 13 dividend payment to holders of record on October 30.
Sources
- 8-K Filing — CITIZENS FINANCIAL GROUP INC/RI (CFG) — SEC EDGAR
- Exhibit a3q26earningsrelease.htm — CITIZENS FINANCIAL GROUP INC/RI 8-K exhibit — SEC EDGAR
- Exhibit a3q26earningspresentatio.htm — CITIZENS FINANCIAL GROUP INC/RI 8-K exhibit — SEC EDGAR
- Exhibit q326financialsupplement.htm — CITIZENS FINANCIAL GROUP INC/RI 8-K exhibit — SEC EDGAR
