Q4 23 EPS
$0.85
BEAT +19.72%
Est. $0.71
Q4 23 Revenue
$1.99B
MISS 0.39%
Est. $2.00B
Full Year 2023 Results
FY 23 EPS
$3.88
FY 23 Revenue
$8.22B
Did CFG Beat Earnings? Q4 2023 Results
Citizens Financial Group closed out 2023 on a mixed note, posting underlying earnings per share of $0.85 for the fourth quarter against revenue of $1.99 billion, though a $345 million pre-tax charge load, anchored by a $225 million industry-wide FDIC… Read more Citizens Financial Group closed out 2023 on a mixed note, posting underlying earnings per share of $0.85 for the fourth quarter against revenue of $1.99 billion, though a $345 million pre-tax charge load, anchored by a $225 million industry-wide FDIC special assessment, dragged GAAP net income down to $189 million, or $0.34 per diluted share. The underlying result itself reflected a quarter under pressure, with net interest income slipping 2% sequentially to $1.49 billion as net interest margin compressed 12 basis points to 2.91%, a deliberate consequence of management's liquidity build strategy amid rising funding costs. Credit normalization also continued, with net charge-offs climbing to $171 million, or 46 basis points annualized, compared to $88 million a year ago. On a more constructive note, the CET1 ratio firmed to 10.6% and tangible book value per share grew 11% year-over-year to $30.91. Looking ahead, management guided for full-year 2024 NII down 6-9% with a PPNR trough expected in the second quarter, before returning to sequential positive operating leverage in the second half.
Key Takeaways
- • Capital markets fees increased $20 million QoQ from stronger bond and equity underwriting
- • Trust and investment services fees up $5 million QoQ from increased sales activity
- • Non-Core portfolio run-off of $2.6 billion in 2H2023 improving NIM
- • FHLB advances reduced by $3.3 billion QoQ to $3.8 billion
- • Balance sheet optimization actions in commercial reducing loan balances
- • LDR improved from 84% to 82% QoQ
- • Consumer Banking net interest income up 2% QoQ to $1,086 million and 7% YoY
- • Commercial Banking efficiency ratio improved to 43.44% from 40.18% YoY
CFG YoY Financials
Q4 2023 vs Q4 2022, source: SEC Filings
CFG Revenue by Segment
With YoY comparisons, source: SEC Filings
“We continue to execute well and posted solid performance in Q4. Our balance sheet is very strong, as we bolstered CET1 to 10.6%, lowered our LDR to 82%, enhanced our liquidity profile, which now exceeds Category 1 bank LCR requirements, and reduced FHLB advances to $3.8 billion. We are seeing less pressure on deposit costs and NIM, fees are beginning to rebound, expenses remain well controlled, and credit costs are as expected. Key strategic initiatives like the Private Bank, NYC Metro, TOP 9 and Non-Core are all on track, positioning us well for medium-term growth and enhanced returns. I would like to thank our colleague base for their hard work and dedication in serving our customers well and building a great bank.”
— Bruce Van Saun, Q4 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% |