Core Viewpoint - Citizens Financial Group (CFG) reported strong adjusted earnings per share of 77 cents for Q1 2025, exceeding estimates and reflecting an 18.4% year-over-year increase, driven by higher non-interest income and reduced expenses, despite challenges from lower net interest income and declining loan balances [1][2][10] Financial Performance - Net income on a GAAP basis was $373 million, a 12% increase from the prior year [2] - Total revenues for the quarter were $1.94 billion, slightly missing estimates by 0.3% and showing a 1.2% decline year-over-year [2] - Net interest income (NII) decreased by 4% year-over-year to $1.39 billion, attributed to a lower net interest margin and a decline in average interest-earning assets [3] - The net interest margin (NIM) shrank by 1 basis point to 2.90% [3] - Non-interest income rose by 5% year-over-year to $544 million, driven by increased service charges, wealth fees, and mortgage banking income [4] - Non-interest expenses decreased by 3% to $1.31 billion, reflecting lower costs in outside services and occupancy [5] Loan and Deposit Trends - Total loans and leases as of March 31, 2025, were $137.6 billion, down 1.1% from the prior year [6] - Total deposits increased by 1.6% to $177.6 billion [6] Credit Quality - Provision for credit losses was $153 million, down 10.5% year-over-year [7] - The allowance for credit losses decreased by 4% to $2.21 billion [7] - Net charge-offs increased by 10% to $200 million [7] - Non-accrual loans and leases rose by 8% to $1.58 billion [7] Capital Position - The tier 1 leverage ratio improved to 9.4%, up from 9.3% in the prior year [8] - The common equity tier 1 capital ratio remained stable at 10.6% [8] - The total capital ratio increased to 13.9%, compared to 13.8% in the prior year [8] Shareholder Returns - In Q1 2025, CFG repurchased $200 million of common shares and paid out $186 million in common dividends [9] Strategic Outlook - CFG's focus on strategic initiatives and efficiency improvements supports its financial performance, while a solid liquidity position allows for sustainable capital distributions [10]
Citizens Financial Q1 Earnings Top Estimates on Fee Income Growth