Citizens Financial Group, Inc. Reports Third Quarter 2024 Net Income of $382 million and EPS of $0.77

Rhea-AI Summary

Citizens Financial Group (NYSE: CFG) reported Q3 2024 net income of $382 million and EPS of $0.77. Underlying net income was $392 million with EPS of $0.79. The company's CET1 ratio stood at 10.6% and loan-to-deposit ratio at 80.8%. Key highlights include:

- Private Bank reached $5.6 billion in deposits and $4.1 billion in AUM
- Strong growth in NYC Metro region
- Upcoming launch of TOP 10 program with $100 million plus impact
- Strong balance sheet across capital, liquidity, funding, and loan loss reserves
- Q3 impacted by forward-starting swaps and fee pushouts to Q4
- Projecting strong Q4 and 2025 launch
- Quarterly dividend of $0.42 per share declared

Citizens Financial Group has $219.7 billion in assets as of September 30, 2024, offering a range of retail and commercial banking products across 14 states and D.C.

Positive

• Q3 2024 net income of $382 million and EPS of $0.77
• Underlying net income of $392 million and EPS of $0.79
• Private Bank reached $5.6 billion in deposits and $4.1 billion in AUM
• Strong growth in NYC Metro region
• Upcoming launch of TOP 10 program with $100 million plus impact
• Strong balance sheet across capital, liquidity, funding, and loan loss reserves
• Projecting strong Q4 and 2025 launch
• Quarterly dividend of $0.42 per share declared

Negative

• Q3 impacted by drag from forward-starting swaps that commenced in July
• Some fees pushed out to Q4

Insights

Financial Analyst

Citizens Financial Group's Q3 2024 results show a mixed performance. Net income of $382 million and EPS of $0.77 indicate steady profitability, but the underlying figures ($392 million net income and $0.79 EPS) suggest some one-time items impacted results. The CET1 ratio of 10.6% demonstrates strong capitalization, well above regulatory requirements.

Key positives include growth in the Private Bank, with $5.6 billion in deposits and $4.1 billion in AUM and continued expansion in the NYC Metro region. The announced $0.42 quarterly dividend maintains an attractive yield for investors. However, the mention of drag from forward-starting swaps and delayed fees indicates some near-term headwinds.

The projection of a strong Q4 and positive outlook for 2025 suggests management confidence in overcoming current challenges. Investors should monitor the upcoming TOP 10 program for potential efficiency gains and the bank's ability to navigate the interest rate environment.

Banking Industry Expert

Citizens Financial's Q3 results reflect the broader challenges facing the banking sector. The loan-to-deposit ratio of 80.8% indicates a conservative lending approach, which is prudent in the current economic climate but may limit growth potential. The bank's focus on key initiatives like private banking and regional expansion demonstrates a strategic effort to diversify revenue streams.

The mention of forward-starting swaps impacting Q3 highlights the ongoing interest rate management challenges for banks. This suggests Citizens is actively hedging its interest rate risk, which could provide stability but also potentially cap upside in a falling rate environment.

The bank's strong balance sheet across capital, liquidity, funding and loan loss reserves positions it well to weather potential economic turbulence. However, investors should closely monitor net interest margin trends and fee income growth in upcoming quarters to gauge the bank's ability to maintain profitability in a challenging operating environment.

Underlying Net Income of $392 million and EPS of $0.79

CET1 ratio of 10.6%; LDR 80.8%

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reported third 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 continue to be pleased with the strong execution of our key initiatives during the third quarter,“ said Chairman and CEO Bruce Van Saun. “Our Private Bank reached $5.6 billion in deposits and $4.1 billion in AUM, our NYC Metro region continues to achieve strong growth, and we are close to launching a TOP 10 program with $100 million plus impact. Our balance sheet remains strong across capital, liquidity, funding and loan loss reserves. While Q3 was impacted by the drag from forward-starting swaps that commenced in July, as well as some fees that pushed out to Q4, we project a strong fourth quarter and launch into 2025.”

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 November 13, 2024 to shareholders of record at the close of business on October 30, 2024.

As previously announced, Citizens will host a live conference call to review its third 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) 336-4440, conference ID 4816160

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 October 16, 2024 through November 16, 2024. Please dial (866) 207-1041 and enter access code 2124050. 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 $219.7 billion in assets as of September 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 3,100 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 X (formerly 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/20241016517860/en/

Media: Peter Lucht — 781.655.2289

Investors: Kristin Silberberg — 203.900.6854

Source: Citizens Financial Group, Inc.

FAQ

What was Citizens Financial Group's (CFG) Q3 2024 net income and EPS?

Citizens Financial Group reported Q3 2024 net income of $382 million and EPS of $0.77.

What was CFG's underlying net income and EPS for Q3 2024?

Citizens Financial Group's underlying net income was $392 million with EPS of $0.79 for Q3 2024.

What is Citizens Financial Group's (CFG) CET1 ratio and loan-to-deposit ratio?

Citizens Financial Group reported a CET1 ratio of 10.6% and a loan-to-deposit ratio of 80.8%.

What dividend did Citizens Financial Group (CFG) declare for Q3 2024?

Citizens Financial Group declared a quarterly common stock dividend of $0.42 per share, payable on November 13, 2024.

How much in assets does Citizens Financial Group (CFG) have as of September 30, 2024?

Citizens Financial Group reported $219.7 billion in assets as of September 30, 2024.