CFGHIGH SIGNALRISK10-K

Citizens Financial Group faces significant credit stress with provision for credit losses surging 311% to $1.6 billion while simultaneously cutting shareholder returns by 91% on dividends and 43% on buybacks.

The massive increase in credit loss provisions signals management expects substantial loan defaults ahead, which combined with dramatically reduced shareholder distributions suggests the bank is conserving capital for potential losses. This defensive posture indicates CFG anticipates a challenging credit environment that could materially impact future profitability.

Comparing 2026-02-12 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

While net income grew 21% and operating cash flow increased modestly, the underlying picture reveals significant stress with credit provisions exploding 311% and interest expenses surging 278%, suggesting compressed margins in a difficult rate environment. The bank's dramatic 91% cut to dividends and 43% reduction in share buybacks signals management is prioritizing capital preservation over shareholder returns. Despite building cash reserves (+34%), the massive provision increase and shareholder payout cuts indicate CFG is bracing for substantial credit deterioration ahead.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
+311.2%
$393.0M→$1.6B

Credit loss provisions surged 311.2% — management flagging significant deterioration in loan quality ahead.

Interest Expense
P&L
+278.1%
$1.0B→$4.0B

Interest expense surged 278.1% — significant debt increase or rising rates materially impacting earnings.

Dividends Paid
Cash Flow
-91%
$790.0M→$71.0M

Dividends cut 91% — significant signal of cash flow stress or capital reallocation priorities.

Capital Expenditure
Cash Flow
-45.7%
$232.0M→$126.0M

Capex reduced 45.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Share Buybacks
Cash Flow
-42.9%
$1.1B→$600.0M

Buyback activity reduced 42.9% — capital being redeployed elsewhere or cash conservation underway.

Cash & Equivalents
Balance Sheet
+34.4%
$3.0B→$4.1B

Cash position surged 34.4% — strong cash generation or capital raise providing significant financial cushion.

Net Income
P&L
+21.3%
$1.5B→$1.8B

Net income grew 21.3% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
+10.5%
$2.0B→$2.2B

Operating cash flow grew 10.5% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-13
ADDED
common shares of $44.75 as reported on the New York Stock Exchange).
There were 424,983,657 shares of the registrant s common stock ($0.01 par value) outstanding on February 4, 2026.
Form 10-K Summary 159 Signatures 160 Citizens Financial Group, Inc.
bps Basis Points Capital Plan Rule Federal Reserve Regulation Y Capital Plan Rule CBNA Citizens Bank, National Association CCAR Comprehensive Capital Analysis and Review CCB Capital Conservation Buffer CECL Current Expected Credit Losses CET1 Common Equity Tier 1 CEO Chief Executive Officer CET1 capital ratio Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the U.S.
Treasury Department Office of Foreign Assets Control OTC Over the Counter Parent Company Citizens Financial Group, Inc.
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REMOVED
common shares of $36.03 as reported on the New York Stock Exchange).
There were 437,136,981 shares of the registrant s common stock ($0.01 par value) outstanding on February 4, 2025.
Form 10-K Summary 161 Signatures 162 Citizens Financial Group, Inc.
bps Basis Points Capital Plan Rule Federal Reserve Regulation Y Capital Plan Rule CBNA Citizens Bank, National Association CCAR Comprehensive Capital Analysis and Review CCB Capital Conservation Buffer CECL Current Expected Credit Losses (ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) CET1 Common Equity Tier 1 CEO Chief Executive Officer CET1 capital ratio Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the U.S.
and its Subsidiaries CLTV Combined Loan-to-Value CMO Collateralized Mortgage Obligation CODM Chief Operating Decision Maker COVID Coronavirus Disease CRA Community Reinvestment Act CRE Commercial Real Estate DIF Deposit Insurance Fund Dodd-Frank Act The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 EAD Exposure at Default EEO-1 report Mandatory report on workforce demographics submitted annually to the U.S.
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