Q1 24 EPS

$0.79

BEAT +6.76%

Est. $0.74

Q1 24 Revenue

$1.96B

MISS 0.19%

Est. $1.96B

Did CFG Beat Earnings? Q1 2024 Results

Citizens Financial Group delivered a mixed but resilient first quarter, posting underlying diluted EPS of $0.79 on revenue of $1.96 billion, as the bank navigated a challenging rate environment and deliberate balance sheet restructuring. GAAP net inc… Read more Citizens Financial Group delivered a mixed but resilient first quarter, posting underlying diluted EPS of $0.79 on revenue of $1.96 billion, as the bank navigated a challenging rate environment and deliberate balance sheet restructuring. GAAP net income fell 35% year-over-year to $334 million, weighed down by $82 million in pre-tax notable items, including a $35 million FDIC special assessment and $44 million in restructuring costs tied to its TOP efficiency program. The clearest pressure point was net interest income, which declined 12% year-over-year to $1.44 billion as higher funding costs outpaced asset yield improvements, though net interest margin held steady sequentially at 2.91%. A notable offset came from capital markets fees, which climbed 42% year-over-year to $118 million on stronger M&A advisory and underwriting activity. Credit quality continued to normalize, with net charge-offs rising to 50 basis points from 34 basis points a year ago. Management reaffirmed full-year guidance and pointed to ongoing strategic initiatives, including its Private Bank build-out and NYC Metro expansion, as drivers of medium-term growth.

Key Takeaways

  • Strong recovery in capital markets fees, up 42% YoY
  • Card fees increased 19% YoY driven by higher credit card fees and favorable vendor contract negotiations
  • Stable net interest margin at 2.91% QoQ
  • Tight expense management with underlying noninterest expense broadly stable QoQ
  • Loan-to-deposit ratio improved to 81.2%
  • Non-Core portfolio run-off reducing funding costs
  • FHLB advances reduced by 83% YoY to $2.0 billion
  • Commercial Banking efficiency ratio of 42.80% significantly better than Consumer Banking at 66.87%
24/7 Wall St

CFG YoY Financials

Q1 2024 vs Q1 2023, source: SEC Filings

24/7 Wall St

CFG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“We are pleased to start the year with a solid first quarter, featuring a bounce back in capital markets fees, stable NIM, further improvement in our LDR, tight expense management and a strong capital and credit reserve position”

— Bruce Van Saun, Q1 2024 Earnings Press Release