Q2 24 EPS

$0.82

BEAT +5.13%

Est. $0.78

Q2 24 Revenue

$1.96B

BEAT +0.83%

Est. $1.95B

Did CFG Beat Earnings? Q2 2024 Results

Citizens Financial Group posted a resilient second quarter, reporting underlying earnings per share of $0.82 on revenue of $1.96 billion, as a surge in fee income helped cushion persistent pressure on net interest income. GAAP net income came in at $… Read more Citizens Financial Group posted a resilient second quarter, reporting underlying earnings per share of $0.82 on revenue of $1.96 billion, as a surge in fee income helped cushion persistent pressure on net interest income. GAAP net income came in at $392 million, or $0.78 per diluted share, while the underlying figure of $408 million reflected $32 million in pre-tax charges tied to integration costs and efficiency initiatives. The headline story was a tug-of-war between NII, which fell 11% year-over-year to $1.41 billion as net interest margin compressed to 2.87%, and noninterest income, where underlying fees climbed 8% year-over-year to $549 million, lifted by a strong capital markets quarter. Credit quality remained a watchpoint, with net charge-offs at 52 basis points and commercial real estate stress pushing nonaccrual loans to 1.08% of total loans. Looking ahead, management guided for NII to dip another 1-2% in Q3 before rebounding in Q4, with the company targeting a medium-term NIM of 3.25% to 3.40% as swap tailwinds and Non-Core portfolio run-off take hold.

Key Takeaways

  • Strong fee performance with Capital Markets fees up 14% QoQ and record Card and Wealth fees
  • Expense discipline with underlying expenses down 1% QoQ
  • Private Bank deposits grew $1.6 billion to $4.0 billion
  • Balance sheet optimization including Non-Core portfolio run-off of $1.1 billion in Q2
  • Interest-bearing deposit costs declined 3 bps to 2.82% with cumulative beta improving to 51%
  • GAAP operating leverage turned positive at 4.42% in Q2 2024
  • GAAP efficiency ratio improved to 66.27% from 69.33% in Q1 2024
24/7 Wall St

CFG YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

24/7 Wall St

CFG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“We delivered solid performance in the second quarter, featuring strong fee performance across Capital Markets, Wealth and Card, excellent deposit trends, good expense discipline and credit metrics in line with expectations.”

— Bruce Van Saun, Q2 2024 Earnings Press Release