Citizens Financial (US:CFG)2024-07-17 10:54Financial Performance - Total interest income for Q2 2024 was $2,575 million, a decrease of 1% from Q1 2024 and an increase of 5% from Q2 2023[4] - Net interest income decreased by 2% to $1,410 million in Q2 2024 compared to Q1 2024, and decreased by 11% from Q2 2023[4] - Noninterest income increased by 7% to $553 million in Q2 2024 compared to Q1 2024, and increased by 9% from Q2 2023[4] - Total revenue for Q2 2024 was $1,963 million, remaining stable compared to Q1 2024 but down 6% from Q2 2023[4] - Net income for Q2 2024 was $392 million, representing a 17% increase from Q1 2024, but a decrease of 18% from Q2 2023[4] - The company reported a net income available to common stockholders of $357 million in Q2 2024, a 17% increase from Q1 2024[4] - The underlying net income available to common stockholders was $373 million in Q2 2024, a 2% increase from Q1 2024[4] Asset and Liability Management - Total assets decreased to $219,222 million in Q2 2024 from $220,770 million in Q1 2024, a decrease of $1,548 million[6] - Total liabilities decreased to $195,739 million in Q2 2024 from $197,057 million in Q1 2024, a decline of $1,318 million[6] - Stockholders' equity decreased to $23,483 million in Q2 2024 from $23,713 million in Q1 2024, a decrease of $230 million[6] - Total interest-earning assets decreased to $198,465 million in Q2 2024 from $200,068 million in Q1 2024, a decline of $1,603 million[6] - Total loans and leases amounted to $143,067 million in Q2 2024, down from $144,822 million in Q1 2024, a decrease of $1,755 million[6] - Total interest-bearing deposits decreased to $137,465 million in Q2 2024 from $139,420 million in Q1 2024, a decline of $1,955 million[6] Credit Quality and Losses - Provision for credit losses increased by 6% to $182 million in Q2 2024 compared to Q1 2024[4] - Total loans and leases 90 days or more past due and accruing decreased to $228 million, down 24% from the previous quarter[21] - Total commercial nonaccrual loans reached $939 million, a 5% increase from the previous quarter and a 48% increase year-over-year[44] - The allowance for loan and lease losses increased slightly to $2.125 billion, compared to $2.086 billion in the previous quarter[13] - Total gross charge-offs for Q2 2024 were $223 million, a decrease of 3% from Q1 2024 and an increase of 18% from Q2 2023[47] Efficiency and Ratios - The efficiency ratio for Q2 2024 was 66.27%, an improvement of 306 basis points from Q2 2023[30] - Return on average common equity for Q2 2024 was 6.70%, an increase of 107 basis points from Q1 2024 but a decrease of 130 basis points from Q2 2023[30] - The effective income tax rate for Q2 2024 was 18.49%, down 379 basis points from Q2 2023[30] - Return on average total tangible assets improved to 1.61% in Q2 2024, compared to 1.49% in Q1 2024[8] Segment Performance - Net income available to common stockholders for Consumer Banking was $296 million, up from $272 million in the previous quarter, reflecting a 8.8% increase[33] - Total revenue for the consolidated entity was $1,963 million, slightly up from $1,959 million in the previous quarter, showing a marginal increase of 0.2%[33] - Net income for the commercial banking segment was a loss of $50 million, an improvement of $10 million from the previous quarter[69] - Net interest income for the commercial banking segment showed a loss of $31 million, improving by $6 million from the previous quarter[69] Dividends and Shareholder Returns - Dividend payout ratio was 53% in Q2 2024, down from 64% in Q1 2024 and significantly lower than 124% in Q4 2023[54] - Cash dividends declared and paid per common share remained stable at $0.42 in Q2 2024, consistent with previous quarters[54] - Basic earnings per share were $0.93, reflecting a 20% increase from the previous quarter[62] - Diluted earnings per share were $0.92, also a 20% increase from the prior quarter[62]