Citizens Financial Group announced that it will redeem all of its outstanding $500 million aggregate principal amount of 3.75% senior notes due February 18, 2026, with the redemption taking place on November 28, 2025. The redemption price will be 100 % of the principal amount plus any accrued and unpaid interest up to, but not including, the redemption date, after which the notes will no longer be outstanding and interest will cease to accrue.
The $500 million redemption eliminates a $18.75 million annual interest expense (3.75% of $500 million) and frees the same amount of capital that was previously tied up in debt servicing. By reducing its debt load, the bank is expected to improve its leverage ratios and enhance its ability to deploy capital toward growth initiatives or shareholder returns.
Citizens has a long‑standing debt‑management strategy that includes opportunistic redemptions when market conditions are favorable. The bank’s recent decision follows a November 3, 2025 redemption of $750 million of senior notes maturing in February 2025 and a November 3, 2025 redemption of 4.300% fixed‑rate subordinated notes due December 3, 2025. These actions reflect a disciplined approach to optimizing the capital structure amid a low‑interest‑rate environment.
CEO Bruce Van Saun highlighted the bank’s strong financial footing, noting that the third‑quarter 2025 results were driven by robust net interest income and fee growth. He added that the redemption aligns with the bank’s “Reimagine the Bank” initiative, which seeks to strengthen capital ratios and support strategic investments.
As of September 30, 2025, Citizens reported $222.7 billion in assets and net income of $494 million for Q3 2025, exceeding analyst expectations. The redemption is part of a broader effort to maintain a solid capital base while positioning the bank for future opportunities in a competitive banking landscape.
The freed capital can be allocated to a range of strategic priorities, including potential acquisitions, technology investments, or returning value to shareholders through dividends or share repurchases. The redemption also signals confidence in the bank’s ability to manage debt efficiently in a low‑rate environment, reinforcing its long‑term financial resilience.
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