Citizens Financial Group announced a 0.25‑percentage‑point reduction in its prime lending rate, lowering it to 6.75% from 7.00% effective December 11, 2025. The move follows a broader trend of rate cuts in the banking sector and is intended to keep the bank competitive in a rising‑rate environment while supporting demand for consumer and commercial loans.
The bank’s Q3 2025 earnings, released on the same day, showed earnings per share of $1.05 and revenue of $2.12 billion—both beating analyst expectations of $1.03 and $2.10 billion, respectively. The beat reflects strong loan growth and disciplined cost management, underscoring the bank’s solid financial footing as it adjusts its pricing strategy.
By lowering the prime rate, Citizens Financial Group aims to attract new borrowers and retain existing customers, potentially increasing loan origination volumes. While a lower prime rate can broaden the bank’s loan book, the impact on net interest margin will depend on the mix of new versus existing loans and the cost of funds. The decision signals management’s confidence in sustaining profitability amid competitive pressure.
The rate cut aligns with similar moves by U.S. Bank and Associated Banc‑Corp, which also reduced their prime rates to 6.75% on the same day. The coordinated action reflects a broader industry response to the Federal Reserve’s policy stance and the recent decline in the U.S. prime rate from 7.65% in December 2024 to 7.00% in November 2025.
Looking ahead, the rate reduction is expected to support loan growth in both consumer and commercial segments, potentially offsetting headwinds from higher funding costs. The bank’s strong Q3 performance provides a stable foundation for this strategy, and management’s focus on competitive pricing positions Citizens Financial Group to capture market share in a tightening credit environment.
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