Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 190

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 190
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 the Private Bank and Private Wealth build-out, as well as a broader increase in salaries and benefits.

For more information regarding CBNA’s special assessment, see “Regulation and Supervision - Deposit Insurance” in our 2024 Form 10-K.

Provision for Credit Losses

The provision for credit losses is the result of a detailed analysis performed to estimate our ACL. The total provision for credit losses includes the provision for loan and lease losses and the provision for unfunded commitments. Refer to “Analysis of Financial Condition — Credit Quality” for more information.

Provision expense of $164 million and $317 million for the three and six months ended June 30, 2025, respectively, compared with a provision of $182 million and $353 million for the same periods in 2024, reflecting Non-Core portfolio runoff and improving loan mix.

Income Tax Expense

Income tax expense of $118 million and $213 million increased $30 million and $29 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024. The effective income tax rate of 21.4% and 20.9% for the three and six months ended June 30, 2025 increased from 18.5% and 20.3%, respectively, compared to the same periods in 2024. These increases are primarily driven by higher pre-tax income and the impact of certain tax matters. Provision for income taxes is calculated by applying the estimated annual effective tax rate to year-to-date pre-tax income, adjusting for discrete items that occurred during the period.

Citizens Financial Group, Inc. | 13

ANALYSIS OF FINANCIAL CONDITION

Securities

Table 4: Amortized Cost and Fair Value of SecuritiesJune 30, 2025December 31, 2024(dollars in millions)Amortized Cost(1)Fair Value Amortized Cost(1)Fair ValueU.S. Treasury and other$4,462 $4,401 $3,631 $3,525 State and political subdivisions1 1 1 1 Mortgage-backed securities:Federal agencies and U.S. government sponsored entities31,477 29,869 30,897 28,795 Other/non-agency271 263 273 260 Total mortgage-backed securities31,748 30,132 31,170 29,055 Collateralized loan obligations124 124