Company: CFG-PE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000759944-25-000153
Chunk: 198

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 198
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326 335 (9)(3)Other operating expense166 164 2 1 491 555 (64)(12)Noninterest expense$1,335 $1,259 $76 6%$3,968 $3,918 $50 1%

The primary drivers for the change in noninterest expense for the three and nine months ended September 30, 2025, compared to the same periods in 2024, are described below:

•Salaries and employee benefits increased reflecting hiring related to the Private Bank and Private Wealth build-out, strong Capital Markets fee performance, and increased medical benefit costs; and

•The decline in Other operating expense during the nine-month period was driven primarily by lower FDIC deposit insurance, reflecting CBNA’s special assessment of $40 million recognized in 2024, and lower fraud losses, partially offset by higher travel and marketing-related costs.

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 $154 million and $471 million for the three and nine months ended September 30, 2025, respectively, compared with a provision of $172 million and $525 million for the same periods in 2024, reflecting runoff of the Non-Core portfolio and improving loan mix.

Income Tax Expense

Income tax expense of $135 million and $348 million increased $47 million and $76 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024. The effective income tax rate of 21.4% and 21.1% for the three and nine months ended September 30, 2025, respectively, increased from 18.6% and 19.7% compared to the same periods in 2024. These increases are primarily driven by higher pre-tax income and a reduced benefit from tax-advantaged investments. 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. |