Citizens Financial Group (CFG) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We may not be able to successfully execute our business strategy78% rewritten
2. 02Inflationary pressures could have an adverse effect on our business, financial position, and results of operations59% rewritten
3. 03Our ability to meet our obligations, and the cost of funds to do so, depend on our ability to access identified sources of liquidity at a reasonable cost38% rewritten
4. 04Changes in interest rates may have an adverse effect on our liquidity and profitability37% rewritten
5. 05Similarly, a decrease in interest rates could reduce our net interest income, net interest margin, and fee income. A prolonged period of low interest rates may result in us holding lower yielding loans and securities should rates rise rapidly after such a period73% rewritten
6. 06Citizens Financial Group, Inc. | 21100% rewritten
7. 07We could fail to attract, retain, or motivate highly-skilled and qualified personnel, including our senior management, other key employees, or members of our Board, which could impair our ability to successfully execute our strategic plan and otherwise adversely affect our business21% rewritten
8. 08A reduction in our credit ratings could have a material adverse effect on our business, financial condition, and results of operations21% rewritten
9. 09Our financial performance may be adversely affected by deterioration in borrower credit quality
10. 10Our risk management framework is made up of various processes and strategies to manage our risk exposure and may not be effective under all conditions and circumstances. If our risk management framework proves ineffective, we could suffer unexpected losses and could be materially adversely affectedNew
11. 11Changes in our accounting policies or standards could materially affect how we report our financial results and condition
12. 12Our financial and accounting estimates and risk management framework rely on analytical forecasting and models
13. 13The preparation of our financial statements requires us to make subjective determinations and use estimates that may vary from actual results and materially impact our financial condition and results of operations
14. 14Operational risks are inherent in our businesses
15. 15The financial services industry, including the banking sector, continues to make technological enhancements to meet customer preferences, as well as meet legal and regulatory requirements, and we may not be able to compete effectively as a result of these changes58% rewritten
16. 16Citizens Financial Group, Inc. | 24100% rewritten
17. 17We are subject to a variety of cybersecurity risks that, if realized, could adversely affect how we conduct our business41% rewritten
18. 18Citizens Financial Group, Inc. | 2554% rewritten
19. 19We rely heavily on communications and information systems to conduct our business
20. 20We rely on third parties for the performance of a significant portion of our information technology
21. 21We are exposed to reputational risk and the risk of damage to our brands and the brands of our affiliates
22. 22Unpredictable catastrophic events could have an adverse effect on our business, financial position, and results of operations
23. 23The effects of geopolitical instability may adversely affect us and create significant risks and uncertainties for our business, with the ultimate impact dependent on future developments, which are highly uncertain and unpredictable
24. 24Any deterioration in national economic and political conditions could have a material adverse effect on our business, financial condition, and results of operations83% rewritten
25. 25Climate change manifesting as physical or transition risks could adversely affect our operations, businesses, and customers70% rewritten
26. 26Citizens Financial Group, Inc. | 27100% rewritten

Risks Related to Our Industry

1. 27We operate in an industry that is highly competitive, which could result in losing business or margin declines and have a material adverse effect on our business, financial condition, and results of operations74% rewritten
2. 28The conditions of other financial institutions or of the financial services industry could adversely affect our operations and financial condition

Risks Related to Regulations Governing Our Industry

1. 29As a financial holding company and a bank holding company, we are subject to regulation that could have a material adverse effect on our business and results of operations
2. 30Our regulators may impose restrictions or limitations on our operations
3. 31The regulatory environment in which we operate continues to be subject to evolving regulatory requirements that could have a material adverse effect on our business and earnings37% rewritten
4. 32We are subject to capital adequacy and liquidity standards, and if we fail to meet these standards our financial condition and operations would be adversely affected
5. 33The Parent Company could be required to act as a “source of strength” to CBNA, which would have a material adverse effect on our business, financial condition, and results of operations
6. 34The Parent Company depends on CBNA for substantially all of its revenue, and restrictions on dividends and other distributions by CBNA could affect its liquidity and ability to fulfill its obligations
7. 35From time-to-time, we may become or are subject to regulatory actions that may have a material impact on our business
8. 36We are and may be subject to litigation that may have a material impact on our business
9. 37Compliance with anti-money laundering and anti-terrorism financing rules involves significant cost and effort

Risks Related to our Common Stock

1. 38Our stock price may be volatile, and you could lose all or part of your investment as a result
2. 39We may not repurchase shares or pay cash dividends on our common stock
3. 40“Anti-takeover” provisions and the regulations to which we are subject may make it more difficult for a third party to acquire control of us, even if the change in control would be beneficial to stockholders