Core Viewpoint - Citizens Financial Group (CFG) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 85 cents, exceeding the Zacks Consensus Estimate of 83 cents, while remaining unchanged from the previous year [1] Financial Performance - For 2024, adjusted EPS was $3.25, beating the Zacks Consensus Estimate of $3.2, but down from $3.88 in the year-ago quarter [2] - Net income (GAAP basis) for the fourth quarter was $401 million, significantly up from $189 million in the prior-year quarter, while full-year net income was $1.5 billion, a decrease of 6.2% year over year [3] - Total quarterly revenues were $1.99 billion, surpassing the Zacks Consensus Estimate of $1.96 billion, but showing a slight year-over-year decline; full-year revenues totaled $7.81 billion, down 5% year over year, yet beating the Zacks Consensus Estimate of $7.79 billion [4] Income and Expenses - Net interest income (NII) decreased 5.1% year over year to $1.41 billion, attributed to a lower net interest margin and a decline in average interest-earning assets [5] - The net interest margin (NIM) shrank four basis points to 2.86% due to increased funding and swap costs, partially offset by fixed-rate asset repricing [5] - Non-interest income rose 14.8% to $574 million, driven by increased service charges, capital market fees, and mortgage banking income [6] - Non-interest expenses decreased 18.4% to $1.32 billion, reflecting a reduction in various operational costs [6] - The efficiency ratio improved to 66.3% in the fourth quarter from 81.1% in the year-ago quarter, indicating increased profitability [7] Loan and Deposit Balances - As of December 31, 2024, total loans and leases were $139.2 billion, down 1.7% from the prior-year quarter, while total deposits decreased marginally to $174.8 billion [8] Credit Quality - The provision for credit losses was $162 million, down 5.3% from the year-ago quarter, while net charge-offs increased 10.5% to $189 million [10] - Non-accrual loans and leases rose 22% to $1.67 billion [10] Capital Position - As of December 31, 2024, the tier 1 leverage ratio was 9.4%, up from 9.3% in the prior-year quarter, and the common equity tier 1 capital ratio was 10.8%, compared to 10.6% previously [11] Shareholder Returns - In the fourth quarter of 2024, CFG repurchased $225 million of common shares and paid $188 million in common dividends [12] Strategic Outlook - CFG's focus on strategic initiatives and inorganic growth is expected to support its financials, although concerns remain regarding lower NII and declining loan and deposit balances [13]
Citizens Financial Q4 Earnings Beat Estimates on Fee Income Growth