Citizens Financial (CFG) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2025, was $373 million, an increase of$39 million compared to the same period in 2024, with earnings per diluted common share rising by $0.12 to$0.77[18] - Total revenue for the same period was $1.9 billion, a decrease of$24 million year-over-year, primarily due to a 4% decline in net interest income[18] - The efficiency ratio improved to 67.91% for the three months ended March 31, 2025, compared to 69.33% for the same period in 2024[18] - Return on Average Tangible Common Equity (ROTCE) increased to 9.64% for the three months ended March 31, 2025, up from 8.86% in the prior year[18] - Tangible book value per common share rose by 5% to $33.97 from December 31, 2024[18] Income and Expenses - Net interest income decreased by$51 million, or 4%, for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to a 3% decrease in average interest-earning assets[27] - Noninterest income increased by $27 million, or 5$44 million, or 3%, for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to lower other operating expenses[33] - Provision for credit losses decreased to $153 million for the three months ended March 31, 2025, down from$171 million for the same period in 2024, reflecting Non-Core portfolio runoff and improving loan mix[37] Loans and Deposits - Total loans and leases decreased by $1.568 billion to$137.635 billion as of March 31, 2025, primarily due to a $2.3 billion decrease in retail loans[45] - Average deposits decreased by$3.4 billion, driven by lower commercial deposits and a reduction in higher-cost Treasury deposits[30] - Total deposits increased to $177,576 million as of March 31, 2025, up from$174,776 million on December 31, 2024, reflecting growth in Private Bank and consumer deposits[58] Capital and Liquidity - The company maintains cash and cash equivalents totaling $3.0 billion as of March 31, 2025, compared to$2.7 billion as of December 31, 2024[109] - Total available liquidity for CBNA was approximately $87.7 billion, including$71.0 billion in contingent liquidity[112] - Citizens Financial Group's CET1 capital ratio was 10.6%, while CBNA's was 12.3%[129] - The regulatory capital ratio, including AOCI impact (non-GAAP), was 10.8% as of March 31, 2025, compared to 9.1% in the previous period[141] Stock and Dividends - During the three months ended March 31, 2025, the Parent Company declared dividends on common stock of $186 million and on preferred stock of$33 million[110] - The Board of Directors increased the common share repurchase program capacity to $1.25 billion, an increase of$656 million from the previous authorization[136] - The company repurchased $200 million of outstanding common stock and declared quarterly common stock dividends of$0.42 per share, totaling $186 million[139] Regulatory and Compliance - The SEC's climate disclosure rule is under litigation, with the agency withdrawing from defense, which may impact future regulatory compliance[22] - The FDIC, FRB, and OCC announced intentions to rescind the Community Reinvestment Act final rule issued in October 2023, reinstating the previous framework[23] Market and Economic Outlook - The company’s economic forecast includes a mild recession with peak unemployment projected at approximately 5.1%[145] - The average effective duration of the securities portfolio was 3.6 years as of March 31, 2025, compared to 3.7 years as of December 31, 2024[43]