Citizens Financial Group Inc

First Quarter Financial Results: Citizens Financial Group reported an EPS of $0.77, with a return on tangible common equity (ROTCE) of 9.6%. Net interest income was better than expected, attributed to positive developments in net interest margin (NIM), which expanded by 3 basis points to 2.90%. However, core loan growth was modest at 1%, highlighting potential challenges in the current economic environment.

Guidance Reaffirmation and Full-Year Outlook: The bank reaffirmed its EPS estimate for the full year, anticipating a positive trajectory in loan demand and economic activity in the second half of 2025, driven by lower taxes and deregulation. The expectation is for NIM to reach approximately 3.05% to 3.10% by year-end, contributing to projected net interest income growth of about 3% in Q2 and 3-5% for the full year.

Capital Markets and Fee Income Uncertainty: While there is a record pipeline for M&A activity, macroeconomic uncertainty is causing delays in deal execution. Lower M&A and capital market activity could impact fee income, leading to a potential risk in achieving PPNR targets. The bank has strategies in place to offset such risks through expense management and adjusting compensation ratios.