Citizens Financial Group, Inc. Reports First Quarter 2024 Net Income of $334 million and EPS of $0.65

Rhea-AI Summary

Citizens Financial Group, Inc. reported a net income of $334 million and EPS of $0.65 for the first quarter of 2024. The underlying net income was $395 million with an EPS of $0.79. The company saw a strong recovery in Capital Markets fees, maintained a stable Net Interest Margin (NIM), Loan-to-Deposit Ratio (LDR) of 81%, and a Common Equity Tier 1 (CET1) ratio of 10.6%.

Positive

• Strong recovery in Capital Markets fees
• Stable Net Interest Margin
• Loan-to-Deposit Ratio of 81%
• Common Equity Tier 1 ratio of 10.6%

Negative

• None.

Insights

Financial Analyst

Reviewing the recently reported earnings by Citizens Financial Group, Inc., several key metrics stand out. The reported net income of $334 million alongside an earnings per share (EPS) of $0.65 provide a snapshot of the company's profitability this quarter. More notable, however, is the mention of an underlying net income of $395 million which is adjusted for specific non-recurring costs or revenues and an adjusted EPS of $0.79, suggesting a more robust financial performance when stripping out certain one-time events or expenses.

Additionally, the stable net interest margin (NIM) and the loan-to-deposit ratio (LDR) at 81% are indicators of the bank's interest income stability and liquidity management, respectively. The Common Equity Tier 1 (CET1) ratio of 10.6% is a important measure of financial resilience, sitting comfortably above regulatory requirements, which indicates a strong capital position that can shield the bank from potential economic downturns.

Investors might find assurance in these figures, suggesting that the institution is maintaining a balance between growth, profitability and financial health. The capital markets fees recovery could be a signal of enhanced brokerage and underwriting activities, possibly reflecting broader economic improvements or strategic gains by the bank in these areas.

Market Research Analyst

Turning towards the broader context, Citizens Financial Group's performance should be considered against the backdrop of the current banking environment. The banking sector is facing headwinds from economic uncertainty, yet Citizens' stable NIM indicates a prudent interest rate strategy amidst a fluctuating rate environment. Moreover, the capital markets fees recovery hints at a successful adaptation to market conditions, which is vital for investor confidence.

For retail investors, understanding how Citizens positions itself in the competitive landscape is key. Their financial results, including the stable NIM and LDR, suggest effective management of financial margins and asset-liability management, which speaks to the company's operational efficiency. This is especially relevant given that other financial institutions may be struggling with margin compression due to competitive pressures and rate changes.

The strength of the bank's capital ratio not only shows a robust balance sheet but also serves as a buffer that can support future growth opportunities or absorb shocks from loan losses, which can be common in uncertain economic climates. Investors should note such metrics as they can be indicative of the bank's strategic readiness to capitalize on market opportunities or weather economic volatility.

Underlying Net Income of $395 million and EPS of $0.79

Strong recovery in Capital Markets fees

Stable NIM; LDR of 81%; CET1 ratio of 10.6%

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reported first quarter 2024 financial results. The earnings press release, investor presentation, and financial supplement are available at http://investor.citizensbank.com. In addition, these materials will be furnished to the Securities and Exchange Commission (SEC) on a Form 8-K and will be available on the SEC website at www.sec.gov.

“We are pleased to start the year with a solid first quarter, featuring a bounce back in capital markets fees, stable NIM, further improvement in our LDR, tight expense management and a strong capital and credit reserve position,” said Chairman and CEO Bruce Van Saun. “We are executing well on our key strategic initiatives, including the Private Bank, NYC Metro, TOP 9 and servicing Private Capital. We remain comfortable with our full year guidance and are excited by our medium-term prospects.”

Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on May 15, 2024 to shareholders of record at the close of business on May 1, 2024.

As previously announced, Citizens will host a live conference call to review its first quarter 2024 financial results. Interested parties may access the call and related materials through the following details:

Conference Call

Time: 9:00 am ET

Dial-in: (877) 692-8955, conference ID 7141414

Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations.

Replay Information: A replay of the conference call will be available beginning at 12:00 pm ET on April 17, 2024 through May 17, 2024. Please dial (866) 207-1041 and enter access code 4035711. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $220.4 billion in assets as of March 31, 2024. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,300 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

Cautionary Statement About Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “prospects,” “outlook,” “guidance” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the United States Securities and Exchange Commission.

CFG-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20240417933381/en/

Media: Peter Lucht — 781.655.2289

Investors: Kristin Silberberg — 203.900.6854

Source: Citizens Financial Group, Inc.

FAQ

What was the net income and EPS reported by Citizens Financial Group, Inc. for the first quarter of 2024?

Citizens Financial Group, Inc. reported a net income of $334 million and EPS of $0.65 for the first quarter of 2024.

What was the underlying net income and EPS for Citizens Financial Group, Inc. in the first quarter of 2024?

The underlying net income for Citizens Financial Group, Inc. in the first quarter of 2024 was $395 million with an EPS of $0.79.

What was the Loan-to-Deposit Ratio (LDR) reported by Citizens Financial Group, Inc. for the first quarter of 2024?

Citizens Financial Group, Inc. reported a Loan-to-Deposit Ratio (LDR) of 81% for the first quarter of 2024.

What was the Common Equity Tier 1 (CET1) ratio reported by Citizens Financial Group, Inc. for the first quarter of 2024?

Citizens Financial Group, Inc. reported a Common Equity Tier 1 (CET1) ratio of 10.6% for the first quarter of 2024.