Citizens Financial Group (CFG), the Boston-based regional bank, reported second-quarter 2026 pre-provision net revenue of $889 million, up 13% from the first quarter, as sequential net interest growth accelerated and fee income rebounded after a first-quarter dip.

Net interest income rose 4.4% sequentially to $1.631 billion, after a 1.6% sequential increase in the first quarter. The fully taxable-equivalent net interest margin expanded 3 bps to 3.17%, slower than the 7 bps sequential expansion in the first quarter. The margin gain reflected lower terminated-swap impacts, Non-Core runoff and fixed-rate asset repricing, partly offset by higher funding costs. Interest-bearing deposit costs increased 4 bps to 2.08%, and total deposit costs rose 3 bps to 1.63%, reversing the 16 bps sequential decline in interest-bearing deposit costs reported in the first quarter.

Average loans and leases grew 2% sequentially to $146.1 billion, after 1% sequential growth in the first quarter, led by Commercial and Private Bank, home equity and mortgage, offset by commercial real estate paydowns and Non-Core runoff. Average deposits increased 1% sequentially to $183.6 billion, matching the first-quarter pace, with Private Bank spot deposits up 7% to $17.8 billion. Period-end deposits were $185.6 billion, and the spot loan-to-deposit ratio was 79.5%.

Noninterest income rose 8% sequentially to $652 million, after a 2% sequential decline in the first quarter. Capital Markets fees reached a record $153 million, up $19 million, on higher loan syndication and debt and equity underwriting. Wealth fees were a record $102 million on higher advisory fees. Service charges and fees were $117 million, card fees were $89 million, mortgage banking fees were $42 million, foreign exchange and derivative products were $47 million, and letter of credit and loan fees were $52 million.

Noninterest expense was $1.394 billion, up 1% sequentially. Salaries and employee benefits fell $13 million on seasonal payroll taxes; outside services rose $12 million on technology costs; occupancy fell $6 million; other operating expense rose $25 million. The efficiency ratio improved 247 bps sequentially to 61.1%. The effective tax rate was 22.3%.

Net income was $587 million, or $1.30 a share, up 35% from a year earlier. Return on average tangible common equity was 13.9%. Private Bank contributed $0.15 to EPS, up from $0.11 in the first quarter.

Credit costs continued to ease. Net charge-offs were 37 bps of average loans, down 2 bps sequentially, after a 4 bps sequential decline to 39 bps in the first quarter, with commercial real estate and retail charge-offs lower and C&I higher. The provision for credit losses was $134 million. The allowance for credit losses to loans ratio was 1.48%, down 4 bps sequentially, reflecting an improved loan mix from Non-Core runoff and lower commercial real estate. Nonaccrual loans were $1.435 billion, or 0.97% of loans, down 7 bps sequentially. Allowance coverage of nonaccrual loans was 152%.

The CET1 ratio was 10.4% at June 30, 2026, down 10 bps sequentially. Tangible book value per share was $38.29. Total capital returned was $422 million, including $197 million of common dividends and $225 million of share repurchases. The board declared a quarterly common dividend of $0.46 a share.

Chairman and CEO Bruce Van Saun said the company was executing on Private Bank growth, record Wealth fees, record second-quarter Capital Markets fees, Reimagine the Bank progress and a new consumer mobile platform, and remained confident in its momentum and outlook through the remainder of 2026 and for 2027.