Citizens Financial Group increases share repurchase program to $1.5 billion

PROVIDENCE, R.I. - Citizens Financial Group, Inc. (NYSE:CFG), currently trading at a P/E ratio of 13.01 with a market capitalization of $17.85 billion, announced Friday that its board of directors has approved an increase to the company’s common share repurchase program to $1.5 billion, representing a $1.2 billion expansion from the $300 million remaining under the previous June 2024 authorization. According to InvestingPro analysis, the company maintains a high shareholder yield and has consistently paid dividends for 12 consecutive years.

The banking institution, which reported $220.1 billion in assets as of March 31, 2025, will execute the repurchases through open market transactions or privately negotiated agreements, including potential Rule 10b5-1 plans and accelerated share repurchase structures. The company currently offers an attractive dividend yield of 4.08%, and InvestingPro analysis suggests the stock is trading below its Fair Value, presenting a potential opportunity for investors. For detailed valuation metrics and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

"The authorization reflects confidence in our ability to deliver strong financial performance, support our customers, invest across our businesses and drive forward our organic growth initiatives while delivering attractive capital returns to shareholders," said John F. Woods, Vice Chair and Chief Financial Officer, according to the press release.

The timing and exact amount of share repurchases will depend on various factors including the company’s capital position, financial performance, and market conditions, the bank stated.

Citizens Financial Group, headquartered in Providence, Rhode Island, operates approximately 1,000 branches and 3,100 ATMs across 14 states and the District of Columbia. The company offers retail and commercial banking services to individuals, small businesses, middle-market companies, and large corporations. With a Financial Health Score rated as FAIR by InvestingPro, the institution maintains stable operations while delivering consistent shareholder returns.

The announcement comes as part of the company’s ongoing capital management strategy. All repurchases remain subject to consideration and approval by Citizens’ Board of Directors and regulatory considerations.

In other recent news, Citizens Financial Group has seen a series of updates from various financial analysts and internal developments. UBS has raised its price target for Citizens Financial to $53, maintaining a Buy rating, citing attractive valuations and increased earnings estimates for 2025 and 2026. Evercore ISI also adjusted its price target upward to $43, reflecting a strong earnings trajectory and stable credit trends, while maintaining an In Line rating. Meanwhile, Jefferies initiated coverage on Citizens Financial with a Buy rating and a $50 target, pointing to the bank’s potential for above-average growth and diverse fee income streams.

Additionally, Citizens Financial announced a significant executive change with Brendan Coughlin being promoted to President, while CFO John Woods is set to depart in August 2025. This leadership transition is seen as pivotal, with Coughlin credited for driving growth in the Private Bank segment. RBC Capital, on the other hand, lowered its price target to $44 but kept an Outperform rating, noting the company’s progress in strategic goals and expansion of the Private Bank.

The recent first-quarter earnings report for 2025 revealed a return on common tangible equity of 9.6% and a return on equity of 6.2%, indicating substantial progress toward medium-term goals. Citizens Financial’s Common Equity Tier 1 ratio was reported at 10.6%, showcasing its financial resilience despite a slight drop when accounting for negative AOCI. These developments reflect a dynamic period for Citizens Financial, with analysts and the company itself adjusting to evolving market conditions and strategic priorities.

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