Core Viewpoint - Citizens Financial Group (CFG) is anticipated to report a year-over-year decline in both quarterly revenues and earnings for Q2 2024, with specific estimates indicating a challenging financial environment [1][31]. Key Factors & Estimates for Q2 - **Net Interest Income (NII)**: The Federal Reserve's steady interest rates at a 23-year high of 5.25-5.5% are expected to limit significant improvements in NII. The inverted yield curve and high funding costs are also likely to negatively impact NII growth [3]. - **Fee Income**: Despite a decline in mortgage rates from over 8% to nearly 7%, mortgage origination volume remains weak due to high home prices and lower supply. This has resulted in limited improvement in mortgage demand [4]. However, robust equity market performance is expected to boost trust and investment services fees, with a consensus estimate of $70 million, reflecting a 2.9% increase from the previous quarter [5]. - **Earnings Estimates**: The consensus estimate for NII is $1.42 billion, indicating a 1.9% decrease from the prior quarter. The estimate for mortgage banking fees is $57.1 million, showing a 16.5% rise from the previous quarter [10][11]. - **Non-Interest Income**: Management expects non-interest income to increase by approximately 3-4%, with a consensus estimate of $534.9 million, suggesting a 3.5% sequential increase [13]. - **Asset Quality**: CFG is expected to set aside substantial provisions for potential bad loans due to anticipated economic slowdown [14]. - **Lending Activities**: A stabilizing macroeconomic backdrop and expectations of Federal Reserve easing interest rates later this year are likely to support lending activities, particularly in commercial and industrial loans [22]. - **Expenses**: CFG's expenses are projected to rise due to the opening of private banking offices, franchise expansion, and investments in technology [27]. Earnings Whispers - The Zacks Consensus Estimate for second-quarter earnings has been revised upward by 1.3% to 79 cents per share, indicating a 14.1% decrease from the previous year. The consensus estimate for quarterly revenues is $1.95 billion, reflecting a 6.7% decline from the prior-year quarter [31].

The market expects Citizens Financial Group (CFG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 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. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's ...

The 2024 Fed's stress test determined Citizens Financial Group, Inc.'s (CFG) preliminary Stress Capital Buffer (SCB) at 4.5%. This implied a regulatory minimum CET1 ratio of 9%, up from 8.5% in 2023. According to the Federal Reserve's stress test results released on Jun 26, 2024, CFG is among the 31 U.S. banks that successfully passed the test. As of Mar 31, 2024, the company had total borrowed funds of $13.8 billion, while total available liquidity (comprising cash and due from banks, interest-bearing cash ...

The Federal Reserve is slated to announce its annual bank health check results on Jun 26. Also known as the 'stress test,' the results will show how much capital large banks need to withstand any renewed turmoil in the sector. This annual exercise will also dictate how much banks will return to shareholders through dividend payouts and share repurchases. Last year, some notable ones announcing a hike in quarterly dividends were JPMorgan (JPM) , Goldman Sachs (GS) , Wells Fargo and Morgan Stanley (MS) . Also ...

Industry Overview - Regional bank stocks have faced significant challenges this year due to soaring borrowing costs, which have negatively impacted net interest income, and the decline in value of older bonds due to higher yields [1] - The SPDR S&P Bank ETF is down 3% this year, indicating a lack of recovery in the sector [1] Investment Opportunities - Despite the broader market showing signs of recovery, bank stocks are expected to take longer to adjust, presenting a potential opportunity for investors [2] - High-quality regional bank stocks are currently undervalued and priced below book value, offering upside potential as market conditions stabilize [8] Citizens Financial Group (CFG) - Citizens Financial Group is highlighted as a top-value regional bank stock, with a price-to-book ratio of 0.72 and a forward dividend yield close to 5%, which can exceed 10% when including buybacks [4] - The bank benefits from a strong economic recovery in Rhode Island, where the labor market has dropped below 3% unemployment for the first time since 1988, supporting its operational outlook [5][9] KeyCorp - KeyCorp is positioned as an inexpensive bank stock with a focus on middle-market commercial banking in Ohio and New York, offering a 5.9% dividend yield [11] - Morningstar estimates KeyCorp's fair per-share value to be nearly 40% higher than its current trading price, indicating strong potential for growth [11] Valley National Bancorp (VLY) - Valley National Bancorp is noted for its compelling 6.7% dividend yield and unique access to the cannabis market, trading at just 0.57 times book value [12] - Analysts have set an average price target of $9.44 for Valley National, approximately 31% above its current share price, with a significant positive shift in analyst sentiment [13]

Citizens Financial Group, Inc. (CFG) unveiled a few developments aimed at accelerating growth of its Wealth Management business to attract new high-net-worth clients. The company's CEO, Bruce Van Saun, stated that management wants to have more choices for customers in terms of wealth options. With the bank failures of 2023, it is clear that significant white space exists in the market for a new entrant to fill by delivering best-in-market customer service for Private Banking and Wealth Management clients. H ...

PM Images M&T Bank Corporation (MTB) priced an offering of $750 million worth of new series J non-cumulative preferred stock, offering a fixed dividend rate of 7.5%. The new shares were rated by all four of Moody's, S&P, Fitch, and DBRS, at Baa3, BB+, BBB- and BBB, respectively. The new shares traded temporarily on the OTC under symbol MTDJV before moving to permanent symbol MTB-J on the New York Stock Exchange. Citizens Financial Group (CFG) priced an offering of $400 million worth of new series H non-cumu ...

JHVEPhoto Citizens Financial Group (NYSE:CFG) is a regional bank that has joined its industry peers in struggling to maintain earnings and deposits in an environment of high-interest rates. Back in November, I wrote on the opportunity being presented with the bank’s Series D preferred shares (CFG PR D). These shares will begin floating at a rate of three-month SOFR plus 390 basis points with their next dividend declaration. Based on today’s market pricing, the dividend yield would be just under 8.5%. Fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of the registrant as specified in its charter) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No There were 455,019,971 shares of the registrant's common stock ($0.01 par value) outstanding on Apr ...

JHVEPhoto Citizens Financial Group, Inc. (NYSE:CFG), incorporated in 1984 and headquartered in Providence, Rhode Island, is a bank holding company that through its subsidiaries offers banking products and services to individuals and businesses in 14 states. This business has been profitable for a long time and has also been steadily growing over the years. Given its capital position and the attractive but safe dividend yield, I believe that one can practically get paid to wait until the market better ap ...