Citizens Financial Group (CFG) has redeemed all outstanding 4.300%, 3.750% and 4.350% fixed‑rate reset subordinated notes that were due February 11 2031. The redemption, executed at 100 % of principal plus accrued interest and paid through The Depository Trust Company, removes $1.2 billion of debt that had been outstanding since 2021.
The three series of notes together total $1.2 billion; while the individual principal amounts for each series were not disclosed, the redemption eliminates a significant portion of the bank’s long‑term debt. By paying off these notes, CFG reduces its interest expense and frees capital that can be deployed toward growth initiatives such as its private‑bank franchise and technology investments.
The move is part of CFG’s broader “Reimagine the Bank” strategy, which seeks to optimize the balance sheet and maintain a strong Common Equity Tier 1 (CET1) ratio. Prior to the redemption, the bank’s CET1 ratio stood at 10.6 % as of December 31 2025. Management expects the redemption to lift the ratio above 10.8 %, providing additional regulatory buffer and flexibility for future capital‑intensive projects.
CEO Bruce Van Saun highlighted that the redemption aligns with the company’s focus on “strong execution of key growth initiatives and continued improvement in net interest margin.” The action also supports the bank’s goal of maintaining a robust capital position while pursuing strategic investments in technology and customer experience.
Market reaction to the announcement was muted, reflecting the fact that the redemption was a routine balance‑sheet adjustment. The broader market sentiment at the time was driven by the bank’s strong Q4 2025 earnings, which beat expectations and included a 10‑12 % forecast for net interest income growth in 2026.
The redemption demonstrates CFG’s disciplined approach to capital management and its readiness to capitalize on favorable market conditions to strengthen its financial foundation.
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