Citizens Financial (CFG) - 2024 Q4 - Annual Report

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$1.5 billion compared to $1.8 billion in 2023[215]. - The efficiency ratio was stable at 67.0$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$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].