Latest news with #CitizensFinancialGroup
CNBC
4 days ago
- Business
- CNBC
Many families feel confident about paying for college — until tuition bills arrive. Here's how they're covering costs
With the start of fall semester just weeks away, sky-high college costs are an extreme pain point for most students and their parents. A recent report by Citizens Financial Group found a growing "confidence gap." While 59% of parents said they were confident about managing college expenses when their child was accepted, just 21% said they felt prepared for the actual cost once tuition bills arrived. "We know the cost of attendance continues to grow, and a lot of forms of federal lending and grants and aid have not kept pace," said Chris Ebeling, head of student lending at Citizens. "Families felt like they were going to be OK, but once those tuition bills arrived, that number plummeted," Ebeling said. In April and May, Citizens polled more than 1,000 parents of children aged 13 to 29 who are either planning on attending or have some experience with college. More from Personal Finance:These college majors have the best job prospectsStudent loan forgiveness may soon be taxed againStudent loan borrowers — how will the end of the SAVE plan impact you? Tell us College costs have risen significantly in recent decades, with tuition increasing 5.6% a year, on average, since 1983 — outpacing inflation and other household expenses, according to a recent report by J.P. Morgan Asset Management. A growing share of schools are now crossing the $100,000 threshold for total annual cost to attend, and tuition is still rising roughly 5% a year. To be sure, few families pay a school's sticker price. As of the 2024-25 academic year, the amount families actually spent on education costs was closer to $31,000, on average, according to Sallie Mae's annual How America Pays for College report — but that figure is still up nearly 10% from a year earlier. Sallie Mae polled 1,000 parents of undergraduate students between the ages of 18 and 24, as well as 1,000 undergraduate students. In most cases, parent income and savings cover about half of college costs. Free money from scholarships and grants accounts for more than a quarter of the costs and student loans make up most of the rest, the education lender found. Scholarships are a key source of funding, yet only about 60% of families use them, according to Sallie Mae. Those who do receive about $8,000, on average. "Every dollar counts when it comes to paying for college," said Rick Castellano, a spokesperson for Sallie Mae. "The last thing you want to do is leave free money on the table." There are other "stubborn statistics," too, Castellano said, which are at odds with the growing cost-consciousness among families. For example, only 71% of families submitted the Free Application for Federal Student Aid, or FAFSA, which serves as the gateway to all federal aid money, including loans, work study and grants. That's down from 74% in the previous academic year. And although most advisors say 529 college savings plans are a "no-brainer" when it comes to financial planning for college — largely because of the tax advantages — fewer than one-third of families utilize them, according to Sallie Mae. "I think there is generally a lack of awareness around 529 plans," Castellano said. Recent data from Credit Karma paints an even starker picture: Fewer than one-quarter of the parents polled said they had a 529 account for their children and 43% said they've never heard of a 529 at all. Roughly 18% said they aren't contributing because they didn't realize the funds could be used for education expenses beyond college, such as K-12 private school tuition or trade and vocational programs — not to mention that Donald Trump's massive tax and spending package expanded 529 qualified education expenses even further to include educational therapies and tutoring, among other costs, for students starting in kindergarten. Most experts say 529 plans are often misunderstood and overlooked. But even among families that do have a college plan, and have saved for years, few have enough stashed away to cover the entire cost. "Even those families that are really well prepared, most families are going to have a financial gap," Ebeling said. Another point of contention is the growing share of young adults rethinking their education altogether. The rising cost of attendance and ballooning student loan balances have played a large role in changing views about the higher education system, with students increasingly deciding to opt out. "The last thing you want, as parents or students, is to feel like higher education is the ultimate goal and you get ready to pay and it's just not possible," Castellano said.
Yahoo
30-07-2025
- Business
- Yahoo
Citizens Financial (CFG) Draws Upgrades as Fee Growth Boosts Outlook
Citizens Financial Group, Inc. (NYSE:CFG) is one of the best bank stocks to buy trading under book value. Citizens Financial Group, Inc. (NYSE:CFG) is attracting renewed optimism from Wall Street after Citi raised its price target to $60 from $57 on July 21, while maintaining a Buy rating. With shares currently trading around $49.20, that implies a potential upside of over 20%, signaling confidence in the bank's near-term prospects. The upward revision follows the company's solid second-quarter performance and encouraging guidance for Q3, particularly in non-interest income areas like fees. Ffooter / In its Q2 earnings report, Citizens reported earnings of $0.65 per share, beating analysts' expectations by a few cents. Although net interest income showed some compression, a common theme across regional banks, strong fee-based revenue and solid expense management helped the bank deliver steady results. Citi noted that Q3 guidance came in stronger than anticipated, especially in fee income, which includes services like wealth management and card-related fees. That improvement could be a sign that Citizens is successfully diversifying its revenue base at a time when interest-rate pressure is hitting lending margins across the sector. As the broader banking sector regains its footing, Citizens' combination of better-than-expected guidance and strong capital positioning makes it a stock to watch. The valuation still leaves room for upside, particularly if fee growth continues into the second half of the year. While we acknowledge the potential of CFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
22-07-2025
- Business
- Yahoo
DA Davidson Lifts PT for Citizens Financial (CFG), Keeps Buy Rating
Citizens Financial Group, Inc. (NYSE:CFG) is one of the 10 Best Financial Stocks on Wall Street's Radar. On July 18, DA Davidson increased its price target for Citizens Financial Group, Inc. (NYSE:CFG) from $49 to $55 while keeping a 'Buy' rating. The research firm noted that the company reported 'strong 2Q results' and gave a 'positive update for 3Q.' This prompted DA Davidson to increase its earnings per share estimates for Citizens Financial Group, Inc. (NYSE:CFG). A financial advisor examining a client's portfolio at a modern office workspace. DA Davidson noted that the banking company has reiterated its guidance for 2025 and still believes it can achieve an improvement of 150 basis points in pre-provision operating leverage in 2025. The research firm also highlighted several strengths for Citizens Financial Group, Inc. (NYSE:CFG), including potential improvements in the net interest margin, the company's private bank buildout, and its metro New York expansion efforts. Citizens Financial Group, Inc. (NYSE:CFG) is an American bank holding company that offers a wide range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions. While we acknowledge the potential of CFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
18-07-2025
- Business
- Yahoo
Citizens Financial Group Inc (CFG) Q2 2025 Earnings Call Highlights: Strong Financial ...
Net Interest Income (NII): Increased by 3.3% sequentially, driven by margin expansion and interest-earning asset growth. Net Interest Margin (NIM): Expanded by 5 basis points to 2.95%. Fee Growth: Increased by 10% linked quarter, with strong performance in wealth, card, and mortgage fees. Operating Leverage: Achieved positive operating leverage of about 5%. EPS: $0.92 for the second quarter, a 19% improvement over Q1. Expenses: Broadly flat, contributing to improved efficiency ratio below 65%. Loan Growth: Net loan growth across consumer, private bank, and commercial sectors. Capital Position: CET1 ratio at 10.6%, with $200 million in stock buybacks executed during the quarter. Private Bank Loan Growth: Added $1.2 billion in loans, ending the quarter at $4.9 billion. Deposit Growth: Average deposits up 1%, with a focus on optimizing deposit funding. Net Charge-Offs: 48 basis points, down from 51 basis points in the prior quarter. Allowance for Credit Losses: Down slightly to 1.59%. Shareholder Returns: $385 million returned to shareholders in the second quarter, including dividends and share repurchases. Warning! GuruFocus has detected 7 Warning Signs with CFG. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Citizens Financial Group Inc (NYSE:CFG) reported strong financial results for the second quarter of 2025, exceeding expectations despite macroeconomic uncertainties. Net interest income (NII) grew by 3.3% sequentially, driven by a 5 basis point expansion in net interest margin (NIM) and net loan growth across consumer, private bank, and commercial sectors. Fee income increased by 10%, with significant contributions from wealth management, card services, and mortgage operations. The company maintained good expense discipline, resulting in 500 basis points of operating leverage, and continued meaningful share repurchases. CFG's balance sheet remains robust, with strong capital, liquidity, and credit reserve positions, supporting strategic initiatives and growth targets. Negative Points The capital markets division faced challenges due to macroeconomic uncertainty, with weaker debt capital markets and delays in significant M&A deals. Spot deposits were somewhat impacted by the timing of inflows and outflows, despite average deposits showing growth. The company faces ongoing uncertainty related to tariffs, which could impact economic conditions and market trends. CFG's allowance for credit losses slightly decreased, reflecting ongoing concerns about the economic forecast, including a mild recession and macro impacts from tariffs. The company is still managing the runoff of non-core portfolios, which continues to be a headwind, although it is expected to ease in the second half of the year. Q & A Highlights Q: Bruce, you saw a nice loan growth in the quarter. Can you talk about what you're seeing in terms of growth in the private bank and other areas, and how you're feeling about sentiments from borrowers for the remainder of the year? A: Bruce Van Saun, CEO: We saw net loan growth across commercial, consumer, and private banks, which exceeded non-core rundown actions. We're optimistic about the macro environment and expect continued growth, particularly in the private bank and consumer sectors. Brendan Coughlin, Head of Consumer Banking, added that the HELOC product is performing well, and the new credit card launch is expected to drive growth. Q: Given the potential for a more dovish Fed, what steps are you taking to lock in the higher end of your net interest margin expectations? A: John Woods, CFO: We have a range of 3.25% to 3.50% for our net interest margin over the medium term. We're confident in this range and are opportunistically putting on hedges to protect against downside risks. These hedges are above where we expect the Fed to settle, providing stability. Q: How are you thinking about deposit growth versus optimizing the mix in the second half of the year? A: John Woods, CFO: We're pleased with our low-cost deposit trends and expect stable to improving mix while growing deposits to support loan growth. Brendan Coughlin added that retail core relationship deposits are growing, providing flexibility on yield management. Q: Can you elaborate on the Reimagining the Bank initiative and how it differs from previous TOP initiatives? A: Bruce Van Saun, CEO: This initiative is broader, focusing on how we serve customers and run the bank using new technologies like AI. Brendan Coughlin will lead this multi-year transformational program, aiming to simplify the business model and improve customer experience. Q: What are your thoughts on the M&A backdrop and Citizens' potential role in consolidation? A: Bruce Van Saun, CEO: Our focus is on driving organic growth and improving ROTCE. While we're open to attractive opportunities, any M&A would need to meet high financial, strategic, and cultural standards. For now, we're concentrating on executing our current growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
17-07-2025
- Business
- Forbes
The AI Revolution In Infrastructure And Database Management
Vikas Agarwal is the Director & Head of Database Services of Citizens Financial Group, a leading bank holding company. The world of technology is undergoing a significant transformation, driven by advancements in artificial intelligence. While AI has already reshaped various industries, its impact on infrastructure and database management is only beginning to unfold. From automating routine processes to enhancing security frameworks, AI is poised to redefine how organizations handle their most critical systems. The Shifting Landscape Of Infrastructure Management Throughout our journey, we have developed automation solutions that perform specific tasks within the infrastructure domain. These automations typically operate as standalone units. However, by integrating AI into these systems, we can unify and enhance their capabilities, enabling more intelligent and efficient infrastructure management. For example, many industries already use reactive automation for scaling storage or compute resources based on predefined triggers. While effective, this approach is limited to responding after an event occurs. By incorporating AI, we can analyze logs and usage patterns to proactively scale resources up or down based on trends. This not only reduces operational costs but also improves system stability and overall productivity. When infrastructure monitoring is combined with AI, the benefits extend beyond predictive detection. AI can also recommend or even execute solutions based on historical resolutions of similar issues. AI agents can significantly reduce manual effort by quickly identifying problems across complex environments. In large organizations with thousands of servers and infrastructure components, it's impractical to manually inspect each one. Often, unused or unnecessary systems continue to consume resources and incur costs. AI-driven log analysis and monitoring can easily identify such inefficiencies and recommend corrective actions. Moreover, AI can detect anomalies and deviations in logs or monitoring data well in advance, allowing teams to address potential issues before they escalate. This proactive approach enhances operational resilience and ensures optimal use of infrastructure resources. AI's Role In Database Management One key advancement of AI-driven database management is indexing and query optimization. Conventional database systems require manual tuning to optimize query execution and indexing strategies. AI-powered algorithms can analyze query patterns, detect inefficiencies and automatically adjust configurations to maximize performance. This not only reduces the workload on database administrators (DBAs) but also improves response times for data-intensive applications. Another breakthrough is the emergence of AI-based anomaly detection for database security. Cyber threats targeting databases are becoming more sophisticated, often bypassing traditional security measures. AI can detect abnormal access patterns and flag potential threats in real time, enabling organizations to implement preemptive security actions. By continuously learning from historical data, AI-driven security solutions can adapt to new attack vectors without relying on manual rule updates. Leaders should start thinking seriously about how AI can help reduce the overhead involved in database management. A significant portion of support teams' time is spent either answering routine questions about databases or troubleshooting performance issues caused by poorly written queries. One practical solution is to introduce an AI-powered layer between users and the database. This layer can help ensure that queries are optimized before they hit the system, while also guiding users to write better queries over time. It's not just about automation—it's about making the system smarter and more user-friendly. That said, it's important to build in a validation loop. AI should assist and recommend, but not make decisions in isolation. Keeping a human-in-the-loop approach ensures accuracy, accountability and trust in the system. The Future Of AI-Driven Security Security remains one of the biggest concerns for organizations handling critical infrastructure and databases. AI is stepping in as a formidable ally in the fight against cyber threats by introducing intelligent threat detection, automated incident response and zero-trust architectures. One promising development is AI-driven identity and access management (IAM). Traditional IAM solutions rely on static credential-based authentication, which is vulnerable to breaches. AI-powered IAM systems leverage behavioral analytics and biometrics to continuously verify user identities, making it significantly harder for malicious actors to gain unauthorized access. While AI can simplify many tasks, especially in infrastructure, it also introduces new security challenges that organizations need to take seriously. When AI is given the ability to take actions within infrastructure, every step it takes should go through a feedback or approval loop. This ensures that changes are being reviewed and validated by the right people before they're applied. Another important consideration is how AI models are trained. Large language models (LLMs) should be trained using in-house data, not just general public datasets. Every organization's infrastructure is unique—how it's set up, how it's used and the challenges it faces. Relying on generic training data can lead to inaccurate or irrelevant suggestions. To get meaningful, context-aware insights, the AI needs to learn from the organization's own environment. Conclusion The integration of AI into infrastructure and database management is not just a technological evolution—it is a fundamental shift that will redefine operational efficiency, security and productivity. By automating routine tasks, optimizing performance and enhancing security frameworks, AI enables IT teams to focus on strategic initiatives rather than mundane troubleshooting. However, leaders must be vigilant in knowing when to implement it—and how. While AI will undoubtedly disrupt traditional job roles, it also presents an opportunity for professionals to upskill and embrace AI-driven methodologies. The future of infrastructure and database management lies in the synergy between human expertise and intelligent automation, ensuring organizations remain agile, secure and competitive in an increasingly data-driven world. 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