Citizens Financial Group, Inc. Reports Second Quarter 2024 Net Income of $392 million and EPS of $0.78

Rhea-AI Summary

Citizens Financial Group (NYSE: CFG) reported Q2 2024 net income of $392 million and EPS of $0.78. Underlying net income was $408 million with EPS of $0.82. The company maintained a CET1 ratio of 10.7% and a loan-to-deposit ratio of 80.4%.

Highlights include strong fee performance across Capital Markets, Wealth, and Card segments, excellent deposit trends, and good expense discipline. The Private Bank reached $4.0 billion in deposits and $3.6 billion in assets under management.

Citizens declared a quarterly dividend of $0.42 per share, payable on August 14, 2024. The company reaffirmed its full-year guidance and medium-term targets. Total assets stood at $219.9 billion as of June 30, 2024.

Positive

• Q2 2024 net income of $392 million and EPS of $0.78
• Strong fee performance across Capital Markets, Wealth, and Card segments
• Excellent deposit trends and good expense discipline
• Private Bank reached $4.0 billion in deposits and $3.6 billion in assets under management
• Maintained CET1 ratio of 10.7% and loan-to-deposit ratio of 80.4%
• Quarterly dividend of $0.42 per share declared

Negative

• None.

Insights

Financial Analyst

Citizens Financial Group's second quarter results show a healthy net income of $392 million and earnings per share (EPS) of $0.78. The underlying net income, which excludes certain one-time items, stands at $408 million with EPS of $0.82. This indicates consistent profitability and robust operational efficiency.

The CET1 ratio, a key metric that measures a bank's core equity capital compared with its total risk-weighted assets, is at 10.7%. This is a strong figure, reflecting the bank's solid capital position and its ability to withstand financial stress. The Loan-to-Deposit Ratio (LDR) is at 80.4%, which implies a balanced approach in managing loans and deposits, minimizing liquidity risks.

Additionally, the declared quarterly dividend of $0.42 per share signifies the company’s commitment to returning value to shareholders and suggests confidence in its future earnings stability. Investors may view this as a positive signal regarding the firm's financial health and shareholder-friendly policies.

Overall, these results should bolster investor confidence in Citizens Financial Group, particularly given the solid performance across various sectors like Capital Markets, Wealth and Card services. The emphasis on strategic initiatives and the growth of their Private Bank also underscore the potential for sustained future growth.

Market Research Analyst

The strong fee performance across different segments such as Capital Markets, Wealth and Card services, indicates that Citizens is effectively diversifying its revenue streams. Fee income is important for banks as it provides a steady source of revenue that is less sensitive to interest rate fluctuations compared to traditional interest income.

Moreover, the achievement of $4.0 billion in deposits and $3.6 billion in assets under management in their Private Bank segment demonstrates the bank’s ability to attract and retain high-net-worth clients. This not only enhances its deposit base but also opens up cross-selling opportunities for other high-margin financial products and services.

The ongoing focus on expense discipline is a key factor that could drive future profitability. By managing expenses efficiently, Citizens can protect its margins even in a challenging economic environment. The reiteration of full-year guidance and medium-term targets further reassures investors about the company's strategic direction and operational robustness.

In summary, Citizens Financial Group appears to be well-positioned to navigate market uncertainties while continuing to grow its diversified revenue base. The bank’s strategic initiatives and strong operational metrics indicate a positive outlook for both short-term and long-term growth.

Underlying Net Income of $408 million and EPS of $0.82

CET1 ratio of 10.7%; LDR 80.4%

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reported second 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 delivered solid performance in the second quarter, featuring strong fee performance across Capital Markets, Wealth and Card, excellent deposit trends, good expense discipline and credit metrics in line with expectations,” said Chairman and CEO Bruce Van Saun. “We are executing well on our strategic initiatives, and highlight that our Private Bank reached $4.0 billion in deposits and $3.6 billion in assets under management. We continue to be comfortable with our full year guidance and medium-term targets.”

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 August 14, 2024 to shareholders of record at the close of business on July 31, 2024.

As previously announced, Citizens will host a live conference call to review its second 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 6961859

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 July 17, 2024 through August 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 $219.9 billion in assets as of June 30, 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/20240717714081/en/

Media: Peter Lucht - 781.655.2288

Investors: Kristin Silberberg - 203.900.6854

Source: Citizens Financial Group, Inc.

FAQ

What was Citizens Financial Group's (CFG) net income for Q2 2024?

Citizens Financial Group reported a net income of $392 million for Q2 2024.

What was Citizens Financial Group's (CFG) EPS for Q2 2024?

Citizens Financial Group's EPS for Q2 2024 was $0.78, with underlying EPS of $0.82.

What is the quarterly dividend declared by Citizens Financial Group (CFG) for Q2 2024?

Citizens Financial Group declared a quarterly dividend of $0.42 per share, payable on August 14, 2024.

What was Citizens Financial Group's (CFG) CET1 ratio in Q2 2024?

Citizens Financial Group maintained a CET1 ratio of 10.7% in Q2 2024.

How much in deposits did Citizens Financial Group's (CFG) Private Bank reach in Q2 2024?

Citizens Financial Group's Private Bank reached $4.0 billion in deposits in Q2 2024.