Fitch upgrades Citizens Financial rating on profitability

Fitch Ratings upgraded Citizens Financial Group (NYSE:CFG) and its operating subsidiary Citizens Bank to ’A-’ from ’BBB+’ today, citing long-term improvements in earnings power and profitability. The rating agency also upgraded the companies’ Viability Ratings to ’a-’ from ’bbb+’ and maintained a stable outlook. Short-term ratings of ’F1’ remained unchanged.

The upgrade recognizes sustained margin expansion through asset repricing and stable credit costs in recent years. Long-term investments in fee-generating businesses including private banking and capital markets have supported market share gains, income growth and greater revenue diversity. Fitch said Citizens Financial’s credit profile is now in line with similarly rated large regional peers.

Citizens Financial is the 22nd-largest U.S. bank holding company with significant deposit market share across the Northeast and Midwest and growing presence in Florida, California and the Mid-Atlantic. Non-interest income represented 28% of revenue in the first half of 2026, supported by investments in capital markets and wealth management. Private Bank assets under management increased 48% year-over-year in the second quarter of 2026.

The company’s operating profit rose to 1.6% of risk-weighted assets in the second quarter of 2026 from a trough of 1.1% in 2024. Wealth management revenue increased 16% year-over-year in the second quarter of 2026, while capital markets increased 52% year-over-year. These businesses accounted for nearly 40% of noninterest income.

Citizens Financial’s impaired loan ratio was stable at 1.8% in the second quarter of 2026, comprised largely of legacy commercial real estate loans at roughly two-thirds of impaired loans. The firmwide net charge-off ratio fell to 38 basis points from a first-quarter 2025 peak of 57 basis points. The company’s CET1 ratio stood at 10.4% in the second quarter of 2026, compared to its 10.0%-10.5% target range.