Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue Q1 2024 | -8% | Q1 2024 total revenue fell by 8% YoY, driven primarily by a sharp decline in net interest income due to a 39‐basis point drop in net interest margin and a 1% decline in average interest‑earning assets, partially offset by a 6% rise in noninterest income from higher capital markets and card fees. |
Net Interest Income Q1 2024 | -12% | Net interest income dropped by 12% YoY as higher funding costs and the impact of building liquidity pressured the net interest margin, while a 1% decline in interest‑earning assets compounded the effect, reflecting both market conditions and internal balance sheet adjustments compared to Q1 2023. |
Noninterest Income Q1 2024 | +6% | Noninterest income increased by 6% YoY driven by higher capital markets fees, card fees, and trust and investment services fees, which helped cushion the overall revenue decline despite declines in mortgage banking and foreign exchange revenues compared to the previous period. |
Total Revenue Q1 2025 | -1% | Q1 2025 total revenue decreased by 1% YoY, reflecting a more moderate impact compared to Q1 2024; the smaller decline is attributable to a 4% drop in net interest income offset by a 5% increase in noninterest income, indicating a strategic shift in the revenue mix from the previous period. |
Net Interest Income Q1 2025 | -4% | Net interest income fell by 4% YoY in Q1 2025, primarily due to lower loan yields, which dropped from 5.64% to 5.26%, a factor influenced by evolving market rates and reduced swap expenses, in contrast to the broader margin pressures seen in Q1 2024. |
Noninterest Income Q1 2025 | +5% | Noninterest income increased by 5% YoY in Q1 2025, underpinned by stronger performance in service charges, wealth fees, and mortgage banking fees, which helped mitigate the revenue pressures from declining net interest income compared to Q1 2024. |
Total Revenue Q2 2025 (YoY) | +3.8% | Q2 2025 reported a 3.8% YoY increase in total revenue, rising from $1,963 million in Q2 2024 to $2,037 million, suggesting an improved business environment and effective strategic initiatives following the challenges experienced in prior quarters. |
Total Revenue Q2 2025 (Sequential) | +5.2% | Sequentially, Q2 2025 revenue increased by 5.2% over Q1 2025’s $1,935 million, reflecting a rebound and operational improvement after the modest performance in Q1 2025, driven by better overall market conditions and more favorable fee‐based revenue contributions. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Net Interest Income | Q3 2025 | no prior guidance | up approximately 3% to 4% | no prior guidance |
Noninterest Income | Q3 2025 | no prior guidance | up low single digits | no prior guidance |
Expenses | Q3 2025 | no prior guidance | up approximately 1% to 1.5% | no prior guidance |
Operating Leverage | Q3 2025 | no prior guidance | positive operating leverage for the quarter | no prior guidance |
Credit Trends | Q3 2025 | no prior guidance | modest improvement from Q2 charge-off levels | no prior guidance |
CET1 | Q3 2025 | no prior guidance | stable at quarter‑end with $75M in share repurchases | no prior guidance |
ROTCE | Q3 2025 | no prior guidance | clear path to a 16% to 18% target | no prior guidance |
Net Interest Margin | Q4 2025 | no prior guidance | 3.05% to 3.10% | no prior guidance |
Net Interest Margin | Q4 2026 | 3.15% to 3.30% | 3.15% to 3.30% | no change |
Net Interest Margin | FY 2027 | 3.25% to 3.50% | 3.25% to 3.5% | no change |
Research analysts covering CITIZENS FINANCIAL GROUP INC/RI.