Citizens (CFG) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 16, 2026 astatine 11:23 AM CDT 62 min read

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Thursday, April 16, 2026 astatine 9 a.m. ET

• Chairman and Chief Executive Officer — Bruce Van Saun

• Chief Financial Officer — Aunoy Banerjee

• Head of Consumer Banking — Brendan Coughlin

• Head of Commercial Banking — Theodore Swimmer

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Bruce Van Saun: Okay. Thanks, Kristin, and bully morning, everyone. Thanks for joining our telephone today. We're pleased to commencement the twelvemonth disconnected strong, notwithstanding geopolitical tensions and uncertainty successful the macro environment. We delivered bully fiscal show successful a seasonally brushed 4th with year-over-year EPS maturation of 47%, affirmative operating leverage of 7% and NIM enlargement of 24 ground points. Our equilibrium expanse presumption continues to beryllium robust with CET1 astatine 10.5% and our allowance for indebtedness losses astatine 1.52%. Credit trends proceed to beryllium favorable crossed our portfolios, and we proceed our indebtedness premix displacement towards deeper relationships with little recognition risk. Execution connected our strategical initiatives continues to way well.

The Private Bank and Wealth concern showed further maturation successful customers, equilibrium expanse and profitability, present accounting for astir 10% of our pretax income portion delivering an ROE successful excess of 25%. During the quarter, we opened 3 much PBOs, bringing the full to 9. Reimagine the slope is disconnected to a coagulated start, and we reaffirm our $450 cardinal P&L people by the extremity of 2028. We estimation astir $100 cardinal successful 2026 exit tally complaint benefits astatine this point. Our positioning with backstage superior continues to beryllium excellent. We expect a beardown twelvemonth for backstage equity sponsor activity, which should supply a equilibrium expanse and interest opportunities for us.

We've reviewed each of our lending to backstage recognition vehicles astatine a granular level and we consciousness bully astir our recognition exposure. The New York City Metro inaugural besides continues to amusement further progress. We are increasing crossed retail, tiny concern and mediate market. We are successful the process of analyzing Citizens' existing subdivision footprint for nett caller concern and optimization with New York City apt to spot maturation successful branches successful coming years. We should person much details to stock with you connected this midyear. We're besides focused connected an inaugural we telephone One Citizens, which is systematically uncovering ways to enactment crossed the endeavor to present invaluable solutions to our customers.

Now that we person stood up the backstage slope and continued the build-out of our firm bank, we person the capableness to supply some idiosyncratic and firm services to palmy concern owners investors and entrepreneurs. We volition study much connected this arsenic the twelvemonth progresses, but we're already gaining existent traction. As we look up to the 2nd 4th and the afloat year, we stay cautiously optimistic that we'll beryllium capable to navigate done outer challenges and inactive present the beardown results we projected coming into this year. So far, markets person behaved rationally contempt the warfare with equity markets holding successful and recognition spreads lone somewhat wider.