Financial Performance - Net income decreased by $99 million, with earnings per diluted common share down $0.10 to $3.03 compared to 2023[212]. - Total revenue decreased by $415 million to $7.8 billion compared to 2023, driven by a 10% decrease in net interest income[215]. - On an Underlying basis, net income available to common stockholders was $1.5 billion compared to $1.8 billion in 2023[215]. - The efficiency ratio was stable at 67.0% compared to 2023, with an Underlying efficiency ratio of 65.2% compared to 60.8% in 2023[215]. - Return on Tangible Common Equity (ROTCE) was 9.8% compared to 10.9% in 2023, with an Underlying ROTCE of 10.5% compared to 13.5%[215]. - Tangible book value per common share increased by 5% from 2023 to $32.34[215]. Assets and Capital - Total assets as of December 31, 2024, were $217.5 billion, total deposits were $174.8 billion, and total stockholders' equity was $24.3 billion[16]. - As of December 31, 2024, both the Parent Company and CBNA were classified as "well-capitalized" with a CET1 ratio of at least 6.5%, a tier 1 capital ratio of at least 8%, a total capital ratio of at least 10%, and a tier 1 leverage ratio of at least 5%[75]. - The company is subject to capital adequacy and liquidity standards, and failure to meet these standards could limit capital distributions and lead to supervisory actions[171]. Business Segments - The Consumer Banking segment serves consumer customers and small businesses, offering products such as deposits, mortgage lending, credit cards, and wealth management services across 1,000 branches and 3,100 ATMs[19][20]. - The Commercial Banking segment provides a wide range of financial products including lending, treasury management, and capital markets services, focusing on middle-market and corporate clients[21][22]. Strategic Initiatives - Citizens Financial Group aims to enhance its customer-centric culture and improve operational efficiency through initiatives like the Tapping our Potential (TOP) program, with TOP 9 completed in 2024 and TOP 10 launched in 2025[31]. - The company is on a multi-year digital transformation journey to modernize technology and improve customer experiences, utilizing advanced data analytics and artificial intelligence[30][33]. - Citizens Financial Group focuses on developing differentiated value propositions to serve affluent customers and small businesses, aiming to deepen relationships and enhance customer experience[28]. Regulatory Environment - The company is subject to enhanced prudential standards and associated capital and liquidity rules as a BHC with over $100 billion in total consolidated assets[57]. - The liquidity coverage ratio (LCR) is not applicable to the company as it has less than $50 billion in weighted short-term wholesale funding[67]. - The FDIC requires large depository institutions, including CBNA, to maintain enhanced deposit account recordkeeping capabilities to facilitate prompt calculation of insured deposits if taken into receivership[77]. - Regulatory compliance is critical, as failure to meet supervisory expectations could lead to restrictions on business activities and significant penalties[164][165]. - The regulatory environment is subject to significant and evolving requirements that could adversely affect the company's business and earnings[168]. Risk Management - Citizens Financial Group is subject to heightened risk governance standards due to its asset size, requiring a robust risk governance framework overseen by an independent board[114]. - The company’s risk management framework may not be effective under all conditions, potentially leading to unexpected losses[137]. - The company faces operational risks from transaction processing, compliance failures, and potential cyber-attacks, which could adversely impact its business[144]. - The company faces significant cybersecurity risks, including threats from organized crime and nation-states, which could adversely affect operations and customer data security[147]. - Cyber-attack risks are increasing, with potential loss of funds and sensitive customer data being major concerns, despite the implementation of protective measures[147]. Competition and Market Conditions - Citizens Financial Group faces competition from various financial institutions, including community banks and FinTech companies, which are increasingly leveraging technology to attract customers[35][37]. - The financial services industry is highly competitive, with potential margin declines and loss of business due to aggressive competition from both traditional and non-traditional financial institutions[158]. - Inflationary pressures may negatively impact funding costs and consumer demand, affecting the company's financial position and results of operations[121]. Sustainability and Social Responsibility - In 2023, the company announced a $50 billion Sustainable Finance Target, including $5 billion in green financing, to be achieved by 2030[50]. - The company committed to achieving operational carbon neutrality by 2035[50]. - Citizens Financial Group received an "Outstanding" rating on its most recent Community Reinvestment Act evaluation, which is significant for regulatory considerations in mergers and acquisitions[105]. Shareholder Considerations - The company repurchased 4,530,928 shares at an average price of $44.06 during October 2024, with a remaining repurchase capacity of $700 million[203]. - The ability to repurchase shares or pay dividends is dependent on federal regulatory considerations and capital requirements[183]. - Anti-takeover provisions may hinder third-party acquisition attempts, potentially affecting stockholder value[184].

Financial Data and Key Metrics Changes - The company reported underlying EPS of $3.24 for 2024, with a full-year ROTCE of 10.5%, which was 12% excluding non-core items [19][20] - Net interest income (NII) decreased by 9.7% year-over-year, with a full-year margin of 2.85% [20] - The company achieved a net interest margin (NIM) of 2.87% in Q4, reflecting a 10 basis point increase linked quarter [27] Business Line Data and Key Metrics Changes - The private bank reported $7 billion in deposits and $3.1 billion in loans, becoming profitable in Q4 [13][24] - Fees increased by 9% for the full year, driven by capital markets, card, and wealth fees [20] - Average loans were down slightly, with period-end loans down 1.7% linked quarter, reflecting a decline in commercial loans [31] Market Data and Key Metrics Changes - The company experienced subdued loan demand but compensated with a 10 basis point NIM expansion, leading to a 3% sequential growth in NII [7] - Period-end deposits remained stable, with growth in retail and the private bank offset by the paydown of higher-cost treasury and commercial deposits [32] - Non-interest-bearing deposits increased by about $940 million linked quarter, driven by the private bank and seasonal flows in commercial [33] Company Strategy and Development Direction - The company aims to transform into a premier bank-owned private bank and private wealth franchise, with a focus on a transformed consumer bank and a well-positioned commercial bank [17][40] - The company plans to step up investments in operating and capital expenditures to support key growth initiatives, anticipating positive operating leverage of around 1.5% for the full year [15][45] - The company is targeting a medium-term ROTCE of 16% to 18% by 2027, with expectations for NIM to reach around 3% [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in credit trends improving and projected credit costs to decrease in 2025 [9][46] - The company expects solid growth in NII and fees in 2025, driven by capital markets and wealth management [14][44] - Management noted that the deposit franchise is performing well in a competitive environment, with a focus on maintaining low-cost deposits [22][80] Other Important Information - The company repurchased $225 million in shares during the quarter, totaling $1.05 billion for the year, representing about 6% of the beginning of year outstanding shares [10][39] - The allowance for credit losses (ACL) to loan ratio increased slightly to 1.62%, reflecting a stable macroeconomic outlook and improving loan mix [26][37] Q&A Session Summary Question: Can you provide context on the medium-term margin outlook? - Management indicated that the confidence to raise the upper end of the margin range is due to the outlook on rates and performance in Q4, with expectations for NIM to potentially reach 3.50% [57][61] Question: What is the outlook for costs and investments in the private bank? - Management acknowledged higher costs due to investments in the private bank and commercial banking, but expressed confidence in maintaining firm costs moving forward [62][66] Question: How does the company view deposit growth and mix? - Management highlighted strong performance in low-cost deposits and expected continued growth in both quantity and quality, particularly in the private bank [73][80] Question: What is the company's perspective on regulatory changes with the new administration? - Management expressed hope for a more favorable regulatory environment that allows banks to operate with flexibility and supports economic growth [112][118] Question: What is the current status of the commercial real estate portfolio? - Management indicated that they are in the middle innings of working through the commercial real estate challenges, with no new inflows into the workout team and a reduction in criticized assets [122][131]

Financial Performance - Citizens Financial Group (CFG) reported revenue of $1.99 billion for the quarter ended December 2024, a decrease of 0.1% year-over-year, but a surprise of +1.29% over the Zacks Consensus Estimate of $1.96 billion [1] - Earnings per share (EPS) for the quarter was $0.85, significantly higher than $0.34 in the same quarter last year, with an EPS surprise of +2.41% compared to the consensus estimate of $0.83 [1] Key Metrics - Total interest-earning assets averaged $196.61 billion, slightly below the average estimate of $197.05 billion [4] - Net charge-offs were reported at $189 million, close to the average estimate of $190.95 million [4] - Net Interest Margin stood at 2.9%, exceeding the average estimate of 2.8% [4] - Return on average common equity was 6.6%, above the estimated 6.4% [4] - Book value per common share was $50.26, lower than the estimated $50.76 [4] - Return on average total assets was 0.7%, matching the estimated 0.7% [4] - Efficiency Ratio was reported at 66.3%, higher than the estimated 65.4% [4] - Net charge-offs as a percentage of average loans and leases were 0.5%, consistent with the average estimate [4] - Tangible book value per common share was $32.34, below the estimated $32.75 [4] - Common Equity Tier 1 Capital Ratio (CET1) was 10.8%, above the estimated 10.6% [4] - Tier 1 Leverage Ratio was 9.4%, significantly higher than the estimated 8.3% [4] - Tier 1 Capital Ratio was reported at 12.1%, above the estimated 11.9% [4] Stock Performance - Shares of Citizens Financial Group have returned +10.3% over the past month, outperforming the Zacks S&P 500 composite, which saw a -2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Citizens Financial Group (CFG) reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing a significant increase from $0.34 per share a year ago, representing an earnings surprise of 2.41% [1] - The company posted revenues of $1.99 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.29%, with year-ago revenues also at $1.99 billion [2] - Citizens Financial Group shares have increased approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] Group 2 - The earnings outlook for Citizens Financial Group is mixed, with the current consensus EPS estimate for the coming quarter at $0.79 on revenues of $1.97 billion, and $3.85 on revenues of $8.19 billion for the current fiscal year [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the top 10% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - The estimate revisions trend for Citizens Financial Group is currently reflected in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from or pay an ...

Financial Performance - Total revenue for Q4 2024 was $1,986 million, representing a 4% increase from Q3 2024 and a slight decrease of 0.1% from Q4 2023[4] - Net income for Q4 2024 reached $401 million, up 5% from Q3 2024 and significantly higher than $189 million in Q4 2023, marking a 112% year-over-year increase[4] - Basic earnings per share for Q4 2024 were $0.83, an 8% increase from $0.77 in Q3 2024 and a 144% increase from $0.34 in Q4 2023[4] - Total revenue for Q4 2024 increased by $85 million (4%) compared to Q3 2024 but decreased by $2 million (—) from Q4 2023, totaling $1,986 million[7] - Net income for Q4 2024 was $401 million, an increase of $19 million (5%) from Q3 2024 and an increase of $212 million (112%) from Q4 2023[7] - Noninterest income (GAAP) for Q4 2024 was $574 million, an increase of 8% from Q4 2023, and total revenue (GAAP) was $1,986 million, up 4% from Q3 2024[31] - Net income (GAAP) for Q4 2024 reached $401 million, reflecting a 5% increase compared to Q3 2024, and net income available to common stockholders (GAAP) was $367 million, a 7% increase from Q3 2024[31] Expenses and Efficiency - Noninterest expense for Q4 2024 was $1,316 million, reflecting a 5% increase from Q3 2024 but a notable 18% decrease from $1,612 million in Q4 2023[4] - Noninterest expense (GAAP) decreased to $1,316 million in Q4 2024, down 18% from Q4 2023, contributing to a pre-provision profit (non-GAAP) of $684 million, a 4% increase from Q3 2024[31] - The efficiency ratio improved to 66.27% in Q4 2024, a significant decrease of 1,486 basis points from Q4 2023[5] - The underlying efficiency ratio improved to 65.36% in Q4 2024, compared to 66.27% in Q4 2023, indicating enhanced operational efficiency[32] Asset and Liability Management - Total assets decreased by $2,185 million (1%) from September 30, 2024, to $217,521 million as of December 31, 2024[8] - Total liabilities decreased by $1,507 million (1%) from September 30, 2024, totaling $193,267 million[8] - Stockholders' equity decreased by $678 million (3%) from September 30, 2024, totaling $24,254 million[8] - Total loans and leases decreased to $140,947 million in Q4 2024 from $147,969 million in Q4 2023, a reduction of $7,022 million or 4.7%[10] Credit Quality and Losses - The provision for credit losses in Q4 2024 was $162 million, a decrease of 6% from Q3 2024, indicating improved credit quality[4] - Total gross charge-offs for Q4 2024 increased to $238 million, a 16% increase compared to Q4 2023[24] - Total net charge-offs for 2024 reached $746 million, representing a 22% increase from $609 million in 2023[24] - The allowance for loan and lease losses decreased to $2,061 million in 4Q24, down 1% from $2,079 million in 3Q24 and down 2% from $2,098 million in 2023[26] Capital Ratios - CET1 capital ratio stood at 10.8% at the end of Q4 2024, showing stability compared to previous quarters[5] - Total capital ratio was 14.0% in Q4 2024, consistent with the previous quarter[5] - Common stockholders' equity decreased to $22,141 million as of December 31, 2024, a 3% decline from $22,820 million in September 2024[27] - Total tangible common equity at the end of 2024 was $14,246 million, down 5% from $14,931 million in September 2024[27] Segment Performance - Total revenue for Consumer Banking reached $1,507 million in Q4 2024, reflecting a 5% increase from Q3 2024 and a 12% increase from Q4 2023[13] - Net income for Consumer Banking in Q4 2024 was $358 million, up 9% from Q3 2024 and 33% from Q4 2023[13] - Total revenue for Commercial Banking was $696 million in Q4 2024, a 2% increase from Q3 2024 but a 7% decrease from Q4 2023[15] - Non-Core segment reported a net interest income loss of $21 million in Q4 2024, an improvement of 25% from Q3 2024[17] Tax and Regulatory - The effective income tax rate for Q4 2024 was 21.04%, an increase of 1,345 basis points compared to Q4 2023[5] - The effective income tax expense for Q4 2024 was $107 million, an increase of $19 million (22%) from Q3 2024[7]

Wall Street analysts expect Citizens Financial Group (CFG) to post quarterly earnings of $0.83 per share in its upcoming report, which indicates a year-over-year increase of 144.1%. Revenues are expected to be $1.96 billion, down 1.4% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's earnings releas ...

The market expects Citizens Financial Group (CFG) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected t ...

It has been about a month since the last earnings report for Citizens Financial Group (CFG) . Shares have added about 10.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Citizens Financial Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Citizens Financial Q3 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From (Not Applicable) Commission File Number 001- ...