Citizens Financial Q4 2024 – $401M Net Income

By Bobby Samwell • Friday, January 17 11:00 • Permanent Link

Citizens Financial Group, Inc. has reported its fourth-quarter 2024 financial results, showcasing a net income of $401 million and earnings per share (EPS) of $0.83. The underlying net income stood at $412 million with EPS of $0.85. The Common Equity Tier 1 (CET1) ratio was reported at 10.8%, and the loan-to-deposit ratio (LDR) at 79.6%.

In terms of key financial data, the underlying pre-provision profit increased by 4% quarter-over-quarter (qoq) to $684 million, driven by a 10 basis point improvement in net interest margin (NIM) to 2.87% and a 6% increase in fees, primarily from higher capital markets fees. Expenses were up 3.5% due to investments, including in the private bank and commercial middle market, resulting in a positive operating leverage of approximately 50 basis points qoq.

The period-end loans decreased by 1.7% qoq, primarily driven by continued non-core run-off and lower commercial and industrial (C&I) and commercial real estate (CRE) loans, partially offset by growth in private bank lending, which increased by $1.1 billion. Average deposits remained broadly stable qoq, with private bank spot deposits up by $1.4 billion to $7.0 billion.

The net charge-offs remained stable qoq at 53 basis points (bps), while the CET1 ratio stood at 10.8%. However, tangible book value per share dropped by 3.6% qoq, reflecting the impact of higher long-term rates.

In comparison to the third quarter of 2024, there was a 3.1% increase in net interest income, while noninterest income increased by 5.6%. Moreover, the underlying noninterest expense also saw a 3.5% increase.

The company's Chairman and CEO, Bruce Van Saun, expressed pleasure with the solid performance in Q4, highlighting strong execution of key initiatives and a nice improvement in net interest margin. Van Saun also expressed gratitude to the employees for their dedication in positioning the company for a strong 2025.

In addition to the financial results, the company declared a quarterly common stock dividend of $0.42 per share, payable on February 14, 2025, to shareholders of record at the close of business on January 31, 2025.

Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $47.13. For the full picture, make sure to review Citizens Financial's 8-K report.

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