Q2 23 EPS
$1.04
BEAT +2.97%
Est. $1.01
Q2 23 Revenue
$2.09B
MISS 0.19%
Est. $2.10B
Did CFG Beat Earnings? Q2 2023 Results
Citizens Financial Group navigated a turbulent quarter with measured resilience, posting Q2 2023 underlying earnings per share of $1.04 on revenue of $2.09 billion, as the bank prioritized balance sheet fortification over near-term growth. The most c… Read more Citizens Financial Group navigated a turbulent quarter with measured resilience, posting Q2 2023 underlying earnings per share of $1.04 on revenue of $2.09 billion, as the bank prioritized balance sheet fortification over near-term growth. The most consequential driver of the period was a deliberate push to shore up liquidity, with period-end deposits climbing $5.50 billion, or 3% sequentially, while FHLB borrowings were slashed by nearly $7.00 billion, bringing the loan-to-deposit ratio down to a healthier 85.2%. Net interest income of $1.59 billion slipped 3% quarter-over-quarter as margin compression, tied to rising funding costs, weighed on results, while credit quality deteriorated notably, with net charge-offs climbing to $152.00 million and commercial real estate losses surging to $62.00 million. Looking ahead, management guided for NII to decline roughly 4% in Q3, with NIM expected to begin stabilizing in Q4, and the newly launched Citizens Private Bank initiative targeting $9.00 billion in loans and $11.00 billion in deposits by year-end 2025.
Key Takeaways
- • Spot deposit growth of 3% QoQ, adding $5.5 billion
- • CET1 ratio improved to 10.3%, up 30 basis points, with CET1 capital of $18.4 billion
- • FHLB borrowings reduced by ~$7 billion to ~$5 billion
- • Loan-to-deposit ratio improved to 85.2%
- • Noninterest income up 4% QoQ driven by higher card fees and transaction volumes
- • NIM compressed 13 bps to 3.17% due to higher funding costs
- • Balance sheet optimization actions reducing commercial loans
- • Planned auto run-off reducing retail loan balances
- • Repurchased $256 million in common shares
- • Commercial real estate net charge-offs surged to $62 million from $3 million in Q1, driven by General Office portfolio
- • Total net charge-offs of $152 million (40 bps annualized), up from $133 million in Q1 and $49 million in 2Q22
- • Allowance for credit losses rose to $2.299 billion with a $24 million reserve build
- • Tangible book value per share declined to $28.72 from $29.44 in Q1
- • Underlying efficiency ratio of 58.86%, up 102 bps QoQ
CFG YoY Financials
Q2 2023 vs Q2 2022, source: SEC Filings
CFG Revenue by Segment
With YoY comparisons, source: SEC Filings
“We were pleased to navigate well through a dynamic and challenging environment in the second quarter. We were very focused on further strengthening our capital, liquidity and funding position and delivered impressive results. Our CET1 ratio improved to 10.3% while also buying back over $250 million in stock, we grew deposits by $5.5 billion, and we reduced our FHLB borrowings by almost $7 billion to $5 billion. In addition, we made solid progress on our strategic initiatives, in particular the ramp up of the Citizens Private Bank and continued strong results from our NYC Metro region. As a strong bank we will continue to be well-positioned to benefit from opportunities in the current environment.”
— Bruce Van Saun, Q2 2023 Earnings Press Release
CFG Earnings Trends
CFG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CFG EPS Trend
Earnings per share: estimate vs actual
CFG Revenue Trend
Quarterly revenue: estimate vs actual
CFG Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.09 | $1.13 | +3.96% | $2.17B | +0.41% |
| Q4 25 BEAT FY | $1.11 | $1.13 | +2.24% | $2.16B | +0.50% |
| FY Full Year | $3.83 | $3.86 | +0.79% | $8.25B | +0.15% |
| Q3 25 BEAT | $1.03 | $1.05 | +2.20% | $2.12B | +0.82% |
| Q2 25 BEAT | $0.88 | $0.92 | +4.36% | $2.04B | +1.41% |
| Q1 25 BEAT | $0.75 | $0.77 | +2.68% | $1.94B | -0.07% |
| Q4 24 MISS FY | $0.83 | $0.83 | -0.19% | $1.99B | +1.35% |
| FY Full Year | $3.20 | $3.03 | -5.38% | $7.81B | +0.29% |
| Q3 24 BEAT | $0.79 | $0.79 | +0.00% | $1.90B | -1.88% |
| Q2 24 BEAT | $0.78 | $0.82 | +5.13% | $1.96B | +0.83% |
| Q1 24 BEAT | $0.74 | $0.79 | +6.76% | $1.96B | -0.19% |
| Q4 23 BEAT FY | $0.71 | $0.85 | +19.72% | $1.99B | -0.39% |
| FY Full Year | — | $3.88 | — | $8.22B | — |
| Q3 23 MISS | $0.91 | $0.89 | -2.20% | $2.01B | -1.36% |
| Q2 23 BEAT | $1.01 | $1.04 | +2.97% | $2.09B | -0.19% |