Citizens Financial Group, Inc. reported its second quarter 2024 financial results, revealing a net income of $392 million and earnings per share (EPS) of $0.78. The underlying net income, excluding notable items, was $408 million with an EPS of $0.82. The Common Equity Tier 1 (CET1) ratio stood at 10.7%, and the bank's Total Revenue was $1.96 billion.
In terms of income statement highlights, the underlying pre-provision profit grew by 2% quarter over quarter (qoq) to $694 million. Notably, the fee performance was strong, with a 7% qoq increase in fees, primarily driven by higher capital markets and record wealth and card fees. However, net interest income (NII) decreased by 2% qoq, mainly due to a 4 basis point decline in net interest margin (NIM) related to swaps impact.
On the balance sheet front, period-end and average loans decreased by 1% qoq, and period-end deposits remained stable qoq. The liquidity profile was described as strong, with the spot loan-to-deposit ratio improving to 80.4%, and Federal Home Loan Bank (FHLB) advances further reduced to just $553 million.
In terms of financial metrics, the underlying return on average tangible common equity (ROTCE) was 11.1%, up from 10.6% in the first quarter of 2024. The efficiency ratio improved to 64.6% from 65.1% in the first quarter.
Looking at specific changes from the previous periods, the net interest margin stood at 2.87%, down 4 basis points from the first quarter of 2024 and down 30 basis points from the second quarter of 2023. The efficiency ratio improved by 46 basis points from the first quarter of 2024 to 64.6%. Additionally, the bank's total assets decreased by 1% from the first quarter of 2024 to $220.4 billion.
Citizens Financial Group, Inc. also declared a quarterly common stock dividend of $0.42 per share, payable on August 14, 2024, to shareholders of record at the close of business on July 31, 2024.
Today the company's shares have moved 2.4% to a price of $39.6. If you want to know more, read the company's complete 8-K report here.
