Chairman and CEO Bruce Van Saun said, “We are pleased to report strong results today that came in ahead of expectations, paced by strong NII and fee growth, disciplined expense management, and credit results that are trending favorably,” said Chairman and CEO Bruce Van Saun. “We saw some sizable M&A advisory fees push out to July, but offset that with strong performance across other fee categories. Our key strategic initiatives, paced by the Private Bank/Private Wealth build out, continue to make good progress, and we have commenced work on a broad ‘Reimagining the Bank’ initiative that will become a multi-year TOP program and drive meaningful benefits from using new technologies to serve customers in new ways and run the bank better. We are wellpositioned to have a strong second half of the year and to sustain that momentum into the medium-term.”
- Private Bank build out tracking well; adding wealth teams and opening new PBOs; confident the business will deliver a ~20 to 24% return on equity for FY2025 and maintain this over the medium term
Building a premier Private Bank
Deposits
- 36% noninterest-bearing
- 2% total deposit cost
- Continued client growth with a $966 million increase in average deposits; spot stable reflecting timing of inflows/ outflows
AUM
- Added 3 advisor teams during 2Q25 in NYC metro, North New Jersey and Los Angeles
- 8 advisor teams added since launch; all located in key markets aligned with PBO offices: New York, San Francisco, Boston, Boca Raton, Naples, Southern California
Loans
- Loan growth driven by improvement in capital call line utilization, given increasing client activity, as well as growth in retail mortgage
- portfolio yield ~7%
Financial profitability
- Tracking well towards targets for ~$12B deposits, ~$7B loans and ~$11B AUM by end of 2025
- Expect 5%+ earnings contribution to total CFG in 2025
Confident the business will deliver a ~20 to 24% return on equity for FY2025 and maintain this over the medium term