Q3 24 EPS
$0.79
BEAT +0.00%
Est. $0.79
Q3 24 Revenue
$1.90B
MISS 1.88%
Est. $1.94B
Did CFG Beat Earnings? Q3 2024 Results
Citizens Financial Group posted third-quarter 2024 earnings of $0.79 per share on revenue of $1.90 billion, results that reflected meaningful pressure from higher funding costs and the drag of forward-starting interest rate swaps that commenced in Ju… Read more Citizens Financial Group posted third-quarter 2024 earnings of $0.79 per share on revenue of $1.90 billion, results that reflected meaningful pressure from higher funding costs and the drag of forward-starting interest rate swaps that commenced in July. Those swaps alone clipped net interest margin by 9 basis points, contributing to a 10 basis point sequential decline to 2.77% and pushing net interest income down 10% year-over-year to $1.37 billion. GAAP net income of $382 million fell 11% from a year ago, though underlying noninterest income offered some offset, rising 9% year-over-year to $534 million on stronger capital markets and card fees. Credit quality deteriorated modestly, with net charge-offs climbing to 54 basis points from 40 basis points a year ago and commercial real estate nonaccruals rising 81% year-over-year to $852 million. Looking ahead, management guided fourth-quarter net interest income up 1.5-2.5% sequentially and sees a path to a net interest margin of 3.25-3.40% over the medium term as legacy swaps mature and the non-core portfolio continues its planned wind-down.
Key Takeaways
- • Forward-starting swaps dragged NIM down 9 bps in the quarter
- • Private Bank reached break-even mid-quarter with $5.6B deposits and $4.1B AUM
- • Non-Core portfolio run-off of $1.0 billion in Q3 ($3.2 billion YTD)
- • Capital markets fees up $27M YoY driven by higher bond underwriting and M&A advisory
- • Card fees up $13M YoY from favorable vendor contract renegotiations
- • Wealth fees up $13M YoY from increased sales activity and higher AUM
- • Underlying expense down 2% YoY reflecting headcount reductions and vendor efficiencies
- • Lower effective tax rate of 18.7% vs 21.7% year ago benefiting from tax-advantaged investments
- • Net charge-offs rose to 54 bps from 40 bps YoY driven by C&I and auto loans
- • CRE General Office nonaccruals surged with reserve coverage increased to 12.1%
CFG YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
CFG Revenue by Segment
With YoY comparisons, source: SEC Filings
“We continue to be pleased with the strong execution of our key initiatives during the third quarter. Our Private Bank reached $5.6 billion in deposits and $4.1 billion in AUM, our NYC Metro region continues to achieve strong growth, and we are close to launching a TOP 10 program with $100 million plus impact. Our balance sheet remains strong across capital, liquidity, funding and loan loss reserves. While Q3 was impacted by the drag from forward-starting swaps that commenced in July, as well as some fees that pushed out to Q4, we project a strong fourth quarter and launch into 2025.”
— Bruce Van Saun, Q3 2024 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% |