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Citizens Financial Group NYSE:CFG Stock Report

Last Price


Market Cap







11 Aug, 2022


Company Financials +
CFG fundamental analysis
Snowflake Score
Future Growth1/6
Past Performance2/6
Financial Health6/6

CFG Stock Overview

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States.

Citizens Financial Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Citizens Financial Group
Historical stock prices
Current Share PriceUS$39.38
52 Week HighUS$57.00
52 Week LowUS$34.35
1 Month Change9.21%
3 Month Change3.80%
1 Year Change-13.07%
3 Year Change25.33%
5 Year Change20.02%
Change since IPO70.62%

Recent News & Updates

Aug 08

Citizens Financial Group: Healthy Dividend, Healthy Company

Solid top-line revenue growth has driven CFG's performance over the past several years. Excellent expense management has led to healthy profit margins. Strong balance sheet and cash flow enable an above-average dividend payment. Economic headwinds may make some investors slightly cautious. It should come as no surprise that one of the largest regional banks in the country is also one of the oldest. Founded as High Street Bank in 1828 in Providence, Rhode Island, today’s Citizens Financial Group (CFG) has over $226 billion in assets and $179 billion in deposits, 1,200 branches and 3,300 ATMs with locations in 14 states. From its early days, the company grew steadily, facing much hardship during the Great Depression and World War II years. By the early 1980s, the bank surpassed $1.0 billion in assets. Later that decade, CFG became a wholly owned subsidiary of the RBS Group. Growth really began to take off following the acquisition by RBS, with the bank making many acquisitions during the great banking consolidation of the 1990s. Following the Global Financial Crisis, RBS needed to divest its U.S. assets, and Citizens Financial became a standalone, publicly traded company in 2015. While Providence will always be home for CFG, recent acquisitions have expanded the company’s footprint into the competitive New York City metropolitan area. Like many companies that have a long, successful history through various economic cycles, Citizens Financial Group is a strong performer that should be able to manage the current economic backdrop to emerge even stronger. Income Statement Beginning with net interest income in 2021, interest income actually decreased 9.4%, but interest expense decreased 56%. As a result, net interest income was down about 2% from 2020, mostly due to the lower interest rates and a difficult yield curve environment throughout the year. However, through the first half of 2022, net interest income increased 18% from the first half of 2021, mainly due to higher interest-earning assets and higher net interest margin. Management noted in the Q2 MD&A that the average interest-earning asset yields increased 15 basis points compared to a 4-basis point decrease on the average interest-bearing liabilities. The company did acquire HSBC’s East Coast Branches in February of this year, and CFG also acquired Investors Bancorp in April; these acquisitions have resulted in higher reported loans and net interest income this year, compared to the first half of 2021. The company has also seen a decline in noninterest revenues when comparing 2021 to 2020. Noninterest revenues declined about 8% compared to the full year 2020. The decline was mainly due to a 53% decrease in the company’s mortgage banking fees due to increased competition in the mortgage space. This decline in mortgage banking continued through the first half of 2022, with mortgage revenues declining 44% compared to the first half of 2021 because of lower margins and production volumes. Total noninterest revenues declined 3% in the first half of 2022 when compared to the first half of 2021. Revenues are a bit of a concern for Citizens Financial as the mortgage business is becoming a drag on total net revenues. The rest of the revenues look good, but because the mortgage business is such a large component of noninterest revenues, the whole number is showing a decline. It is also worth noting that the mortgage banking fees have averaged 5.8% of total net revenues over the past five years. For the first half of 2022, mortgage banking fees were 3.9% of total net revenues. CFG Revenue (Annual) data by YCharts The activity surrounding the provision for credit losses is interesting. For the full year 2021, the company reported a benefit of $411 million, the first benefit from loan losses since at least 2012. At the time, the company said the benefit was due to “strong credit performance and an improving macroeconomic outlook.” However, in the company’s Q2 10-Q, management reported that the macroeconomic environment had deteriorated slightly, resulting in a provision for loan losses of $219 million, most of which was reported in Q2. Also, the Q2 provision includes some cleanup of provisions from the two acquisitions this year. Excluding those, the company would still have reported a provision for the six months, albeit much smaller. The comment about the deterioration is telling, though, as the macroeconomic environment is becoming more challenging in the face of higher inflation, higher interest rates and continued supply chain impacts. On the expense side, the company has historically done a fine job managing expenses. Compensation is the largest expense category for financial firms. At CFG, the compensation expense ratio has averaged 0.31 over the past five years, with 2021 coming in at 0.32, a tick higher than average. Through the first half of 2022, the ratio is 0.35, which is quite a bit higher than the historical average. The efficiency ratio, a measure of overall expenses, has averaged 0.60 over the past five years, with 2021 finishing at 0.61. The increase in overall expenses was mainly due to higher equipment and software as the company continues to invest in its technology infrastructure. Outside services similarly increased based on ongoing growth initiatives. Through the first six months of this year, the efficiency ratio was 0.66, which is quite a bit higher than the past. The increases were across all reported categories and include integration-related expenses. This is an area that investors really need to watch. The company hasn’t seen efficiency ratio numbers of this level since 2015. I would expect management to keep these numbers in check over the second half of 2022, particularly with some top line revenue challenges. The bottom-line net income numbers have been really strong for CFG. Operating margins have averaged 33% over the past five years, with 2021 coming in at 45%. But keep in mind the loan loss benefit discussed above. Operating margin for the first half of 2022 was 28%, which is good, but well below the pre-pandemic level of 35% in 2019. Five-year net income for common stockholders has increased at 16.4% annually, with EPS increasing at a very strong 21% annually over the same period. In the first half of 2022, net income decreased to 40% to $728 million, while EPS decreased 44% to $1.58 per share. The company has been very aggressive by repurchasing almost 100 million shares, or nearly 20% of outstanding shares, over the past five years. The company is currently authorized to repurchase up to $1 billion worth of outstanding shares under its current authorization. CFG Net Income (Annual) data by YCharts Balance Sheet Looking at the balance sheet, total assets have increased 4.7% annually over the five-year period ending in 2021. Through the first half of 2022, total assets increased 20%, primarily due to the acquisitions earlier this year. More specifically, commercial loans increased 35% while retail loans increased 10%. Total liabilities have outpaced asset growth, with a 4.9% annual growth rate over the five-year period. Deposit growth has been strong, at 7% annually over this period. The trend continued in the first half of 2022 as total liabilities increased 23%, with deposits increasing 16% since the end of 2021. First half deposit growth excluding the acquisitions was a more modest 2%. Notably, long-term debt has decreased over 11% annually over the past five years. With the acquisitions earlier in 2022, however, borrowings have increased to $14.4 billion, primarily due to FHLB advances. Actual long-term debt, though, has declined from year end 2021. Finally, equity has increased 3.5% annually, primarily driven by an increased reliance on preferred stock as a source of capital. Additionally, common equity and tangible common equity have both increased 1.9% and 2.5%, respectively, over the past five years. CFG Total Assets (Annual) data by YCharts Ratios Return on equity was steady in the 8.3% range prior to the 2020 pandemic. After falling by about half in 2020, ROE rebounded to 10.1% in 2021. At the end of Q2, ROE was 8.6%, which is more in line with the historical average. Return on common equity has followed the same trend, declining from a peak of 13.5% in 2018 to 8.3% in 2021. At the end of Q2, ROCE was 6.1%, which is quite a bit lower than historical averages. Debt to equity has steadily decreased, from a high of 0.87 in 2016 to just 0.30 at the end of 2021. Similarly, debt to total assets has decreased from 0.11 in 2018 to 0.04 in 2021. Interest coverage ratios are strong, with 2021 reporting a 9.8x interest figure. First half 2022 interest coverage was a very healthy 6.4x. Credit Quality In terms of credit quality, the company maintains excellent credit. Net charge offs in 2021 were just 0.26% of loans. The allowance for loan losses did tick up slightly from the end of 2021 to the end of Q2. This metric does bear scrutiny as it has increased a fair amount from where it was three or four years ago. Stock Performance and Valuation CFG is a good, quality regional bank. Like many stocks this year, CFG is down. CFG data by YCharts At a recent price of $37.21, the stock is trading at 9.4x last twelve months earnings with a 0.8x book value ratio. Both of these valuation figures are below the stock’s five-year averages, possibly reflecting lower revenue growth, higher expenses over the past six months and a declining economic backdrop. Compared to several of its peers, CFG has a below average P/E ratio. CFG PE Ratio data by YCharts Additionally, the company's P/B ratio is also below the peer average: CFG Price to Book Value data by YCharts Using a variety of valuation methods, the fair value for this stock is about $40, so the stock is currently slightly underpriced. It does provide an above average yield of 4.27%, compared to the peer average of 3.77%.

Jul 14

Citizens Financial acquires Paladin Advisors, expands wealth management business

Citizens Financial (NYSE:CFG) announced a definitive agreement to purchase select assets and liabilities of Paladin Advisors, an independent, registered investment advisor headquartered in Kensington, New Hampshire. The acquisitions brings additional investment capabilities to the Clarfeld | Citizens Private Wealth team. The transaction is expected to close in Q3 of 2022 wherein Paladin Advisors will become part of Clarfeld | Citizens Private Wealth.

Shareholder Returns

CFGUS BanksUS Market

Return vs Industry: CFG exceeded the US Banks industry which returned -14.5% over the past year.

Return vs Market: CFG underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is CFG's price volatile compared to industry and market?
CFG volatility
CFG Average Weekly Movement5.0%
Banks Industry Average Movement3.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: CFG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CFG's weekly volatility (5%) has been stable over the past year.

About the Company

182817,463Bruce Van Saun

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products.

Citizens Financial Group Fundamentals Summary

How do Citizens Financial Group's earnings and revenue compare to its market cap?
CFG fundamental statistics
Market CapUS$19.52b
Earnings (TTM)US$1.73b
Revenue (TTM)US$7.04b


P/E Ratio


P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CFG income statement (TTM)
Cost of RevenueUS$0
Gross ProfitUS$7.04b
Other ExpensesUS$5.31b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 19, 2022

Earnings per share (EPS)3.49
Gross Margin100.00%
Net Profit Margin24.58%
Debt/Equity Ratio79.0%

How did CFG perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is CFG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CFG?

Other financial metrics that can be useful for relative valuation.

CFG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does CFG's PE Ratio compare to its peers?

CFG PE Ratio vs Peers
The above table shows the PE ratio for CFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.4x
KEY KeyCorp
RF Regions Financial
HBAN Huntington Bancshares
FITB Fifth Third Bancorp
CFG Citizens Financial Group

Price-To-Earnings vs Peers: CFG is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (10.4x).

Price to Earnings Ratio vs Industry

How does CFG's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: CFG is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the US Banks industry average (9.9x)

Price to Earnings Ratio vs Fair Ratio

What is CFG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: CFG is good value based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

Share Price vs Fair Value

What is the Fair Price of CFG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CFG ($39.38) is trading below our estimate of fair value ($88.24)

Significantly Below Fair Value: CFG is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Citizens Financial Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score


Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFG's forecast earnings growth (8.1% per year) is above the savings rate (1.9%).

Earnings vs Market: CFG's earnings (8.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CFG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CFG's revenue (6.6% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: CFG's revenue (6.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CFG's Return on Equity is forecast to be low in 3 years time (9.6%).

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Past Performance

How has Citizens Financial Group performed over the past 5 years?

Past Performance Score


Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CFG has high quality earnings.

Growing Profit Margin: CFG's current net profit margins (24.6%) are lower than last year (29.2%).

Past Earnings Growth Analysis

Earnings Trend: CFG's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: CFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CFG had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Banks industry average (8.8%).

Return on Equity

High ROE: CFG's Return on Equity (7.6%) is considered low.

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Financial Health

How is Citizens Financial Group's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score


Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: CFG's Assets to Equity ratio (9.3x) is low.

Allowance for Bad Loans: CFG has a sufficient allowance for bad loans (234%).

Low Risk Liabilities: 88% of CFG's liabilities are made up of primarily low risk sources of funding.

Loan Level: CFG has an appropriate level of Loans to Assets ratio (68%).

Low Risk Deposits: CFG's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: CFG has an appropriate level of bad loans (0.5%).

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What is Citizens Financial Group current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CFG's dividend (4.27%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: CFG's dividend (4.27%) is in the top 25% of dividend payers in the US market (4.05%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CFG has been paying a dividend for less than 10 years.

Growing Dividend: CFG's dividend payments have increased, but the company has only paid a dividend for 8 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.8%), CFG's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: CFG's dividends in 3 years are forecast to be well covered by earnings (35.2% payout ratio).

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How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Bruce Van Saun (65 yo)





Mr. Bruce Winfield Van Saun has been an Independent Director of Moody’s Corporation since March 1, 2016. He has been the Chairman and Chief Executive Officer of Citizens Financial Group, Inc. since October...

CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD12.43M) is about average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Bruce's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: CFG's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: CFG's board of directors are considered experienced (5.2 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.3%.

Top Shareholders

Company Information

Citizens Financial Group, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Citizens Financial Group, Inc.
  • Ticker: CFG
  • Exchange: NYSE
  • Founded: 1828
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$19.518b
  • Shares outstanding: 495.64m
  • Website:

Number of Employees


  • Citizens Financial Group, Inc.
  • One Citizens Plaza
  • Providence
  • Rhode Island
  • 2903
  • United States


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Annual Earnings2021/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.