Citizens Financial Group reduced its prime lending rate to 7.00% from 7.25%, effective October 30, 2025.
The rate cut follows a series of adjustments in recent months: the bank lowered its prime rate to 7.25% from 7.50% in September 2025, to 7.75% from 8.00% in November 2024, and to 8.00% from 8.50% in September 2024, reflecting a responsive approach to the Federal Reserve’s policy stance and competitive pressures in the regional banking market.
Citizens’ Q3 2025 earnings report showed a net interest margin expansion to 3.00% and strong performance in its private banking and capital markets segments, providing a solid financial foundation for the rate adjustment.
By lowering the prime rate, Citizens aims to make its variable‑rate products—such as credit cards, home equity lines of credit, and small‑business loans—more attractive, potentially boosting loan demand and supporting overall loan growth.
Management stated that the rate cut is part of a broader strategy to enhance profitability and market share while maintaining a balanced balance sheet.
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