CITIZENS FINANCIAL GROUP INC/RICFG
CITIZENS FINANCIAL GROUP INC/RI Revenue Disclosure
NOTE 19 - NONINTEREST INCOME
Revenues from Contracts with Customers
A portion of the Company’s noninterest income relates to certain fee-based revenue earned from contracts with customers based on the amount of consideration expected to be received upon the transfer of control of a good or service. The timing of recognition is dependent on whether a performance obligation is satisfied by transferring control of the product or service to a customer over time or at a point in time. Judgments include the timing of when performance obligations are satisfied and determination of the transaction price.
The following tables present noninterest income segregated by revenue from contracts with customers and revenue from other sources, disaggregated by business segment. Revenue from other sources primarily includes income from letter of credit and loan fees, foreign exchange and derivative products, and mortgage banking fees.
See Note 1 for information regarding segment changes made during the fourth quarter of 2025.
| Year Ended December 31, 2025 | ||||||||||||||
| (dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
| Service charges and fees | $308 | $134 | $— | $442 | ||||||||||
| Capital markets fees | — | 485 | — | 485 | ||||||||||
Wealth fees | 360 | — | — | 360 | ||||||||||
| Card fees | 284 | 51 | — | 335 | ||||||||||
| Other banking fees | 3 | 10 | — | 13 | ||||||||||
| Total revenue from contracts with customers | $955 | $680 | $— | $1,635 | ||||||||||
Total revenue from other sources(1) | 297 | 315 | 147 | 759 | ||||||||||
| Total noninterest income | $1,252 | $995 | $147 | $2,394 | ||||||||||
| Year Ended December 31, 2024 | ||||||||||||||
| (dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
| Service charges and fees | $288 | $128 | $1 | $417 | ||||||||||
| Capital markets fees | — | 445 | — | 445 | ||||||||||
Wealth fees | 294 | — | — | 294 | ||||||||||
| Card fees | 284 | 54 | 24 | 362 | ||||||||||
| Other banking fees | 3 | 12 | — | 15 | ||||||||||
| Total revenue from contracts with customers | $869 | $639 | $25 | $1,533 | ||||||||||
Total revenue from other sources(1) | 262 | 269 | 112 | 643 | ||||||||||
| Total noninterest income | $1,131 | $908 | $137 | $2,176 | ||||||||||
| Year Ended December 31, 2023 | ||||||||||||||
| (dollars in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||
| Service charges and fees | $277 | $132 | $— | $409 | ||||||||||
| Capital markets fees | — | 293 | — | 293 | ||||||||||
Wealth fees | 259 | — | — | 259 | ||||||||||
| Card fees | 244 | 47 | — | 291 | ||||||||||
| Other banking fees | 3 | 11 | — | 14 | ||||||||||
| Total revenue from contracts with customers | $783 | $483 | $— | $1,266 | ||||||||||
Total revenue from other sources(1) | 284 | 301 | 132 | 717 | ||||||||||
| Total noninterest income | $1,067 | $784 | $132 | $1,983 | ||||||||||
(1) Includes bank-owned life insurance income of $115 million, $108 million, and $93 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The Company does not have any material contract assets, liabilities, or other receivables recorded on its Consolidated Balance Sheets related to revenues from contracts with customers as of December 31, 2025. The Company elected to exclude disclosure of unsatisfied performance obligations for contracts with an original expected length of one year or less and contracts under which the Company recognized revenue for services that it has the right to invoice for.
A description of the above components of revenue from contracts with customers is presented below:
Service Charges and Fees
Service charges and fees include fees earned from deposit products in lieu of compensating balances, service charges for deposit transactions performed by customers, and fees earned for cash management activities. Service charges on deposit products are recognized over the period in which the related service is provided and at a point in time upon completion of the requested service transaction. Fees on cash management products and servicing fees on loans sold without recognition of a servicing right are recognized over time as the services are provided.
Capital Markets Fees
Capital markets fees include fees received from leading or participating in loan syndications, bond and equity underwriting services, and advisory fees. Loan syndication and underwriting fees are recognized as revenue when the Company has rendered all services to, and is entitled to collect the fee from, the borrower or the issuer, and there are no significant contingencies associated with the fee. Underwriting expenses passed through from the lead underwriter are recognized within Other operating expense in the Consolidated Statements of Operations. Advisory fees for mergers and acquisitions are recognized over time, while valuation services and fairness opinions are recognized upon completion of the advisory service.
Wealth Fees
Wealth fees include fees from investment management and brokerage services. Fees from investment management services are based on asset market values and are recognized over the period in which the related service is provided. Brokerage services include custody fees, commission income, trailing commissions, and other investment services. Custody fees are recognized on a monthly basis and commission income is recognized on trade date. Trailing commissions, such as 12b-1 fees, insurance renewal income, and income based on asset or investment levels in future periods are recognized when the asset balance is known, or the renewal occurs and the income is no longer constrained. For each of the years ended December 31, 2025 and 2024, the Company recognized trailing commissions of $16 million related to previous investment sales and recognized $15 million for the year ended December 31, 2023. Fees from other investment services are recognized upon completion of the service.
Card Fees
Card fees include interchange income from credit and debit card transactions and are recognized upon settlement by the association network. Interchange rates are generally set by the association network based on purchase volume and other factors. Other card-related fees are recognized upon completion of the transaction. Costs related to card reward programs are recognized in current earnings as the rewards are earned by the customer and are recorded as a reduction to Card fees.
Other Banking Fees
Other banking fees include fees for various banking transactions such as letter of credit fees, foreign wire transfers, and other services. These fees are recognized in a manner that reflects the timing of when transactions occur and as services are provided.
Revenue from Other Sources
Letter of Credit and Loan Fees
Letter of credit and loan fees primarily include fees received from letter of credit agreements as well as loan fees received from lending activities that cannot be deferred. These fees are recognized upon execution of the contract.
Foreign Exchange and Derivative Products
Foreign exchange and derivative products primarily include fees received from foreign exchange and interest rate derivative contracts executed with customers to meet their hedging and financing needs. These fees are generally recognized upon execution of the contracts. Foreign exchange and derivative products also include mark-to-market gains and losses recognized on these customer contracts and offsetting derivative contracts executed with external counterparties to manage the market risk exposure associated with customer contracts.
Mortgage Banking Fees
Mortgage banking fees primarily include gains or losses on the sale of residential mortgages originated with the intent to sell and servicing fees on mortgages serviced by the Company. Mortgage banking fees also include valuation adjustments for mortgage LHFS that are measured at the lower of cost or fair value, as well as mortgage loans originated with the intent to sell that are measured at fair value under the fair value option. Changes in the value of MSRs are reported in Mortgage banking fees in the Consolidated Statements of Operations. For further discussion of MSRs, see Note 6.
Other Income
Bank-owned life insurance is stated at its cash surrender value. The Company is the beneficiary of life insurance policies on current and former officers of the Company. Net changes in the carrying amount of the cash surrender value represent an adjustment to premiums paid when determining the expense or income recognized under the life insurance policy for the period.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2020 | Feb 23, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.