Company: CFG-PE
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000759944-25-000070
Chunk: 111

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 111
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accrual loans and leases as of March 31, 2025 compared to December 31, 2024 reflects a decrease in commercial primarily driven by the general office segment of CRE and a decrease in retail driven by the sale of Non-Core education loans and continued runoff of the auto portfolio. See “Executive Summary” for more information regarding the sale of education loans.

Table 8: Ratio of Net Charge-Offs to Average Loans and LeasesThree Months Ended March 31,20252024(dollars in millions)Net Charge-OffsAverage BalanceRatioNet Charge-OffsAverage BalanceRatioCommercial and industrial$30 $43,599 0.28 %($3)$44,577 (0.03)%Commercial real estate51 27,013 0.77 88 29,265 1.22 Total commercial 81 70,612 0.47 85 73,842 0.47 Residential mortgages— 32,872 0.01 1 31,384 0.01 Home equity— 16,647 (0.01)(2)15,080 (0.06)Automobile8 4,394 0.73 14 7,758 0.73 Education51 10,690 1.92 27 11,816 0.92 Other retail60 4,495 5.46 56 4,942 4.56 Total retail119 69,098 0.70 96 70,980 0.54 Total loans and leases$200 $139,710 0.58 %$181 $144,822 0.50 %

For the three months ended March 31, 2025, net charge-offs increased $19 million and the net charge-off ratio increased 8 basis points compared to the same period in 2024. These increases include a charge-off of $25 million resulting from the sale of Non-Core education loans. Excluding this sale, net charge-offs decreased $6 million to $175 million, or 51 basis points, compared to the same period in 2024, reflecting broadly stable retail and modestly lower commercial net charge-offs. See “Executive Summary” for more information regarding the sale of education loans.

Commercial Loan Asset Quality

Our commercial portfolio consists of traditional commercial and industrial loans, commercial leases, and commercial real estate loans. As discussed