Citizens Financial Group Reports Decrease in Net Income and Revenue for 2024

Citizens Financial Group, Inc. (CFG) reported a decrease in net income of $99 million for the year ended December 31, 2024, resulting in diluted earnings per share of $3.03, down $0.10 from the previous year. This decline reflects notable items totaling $98 million, net of a tax benefit, compared to $357 million in 2023. Total revenue decreased by $415 million to $7.8 billion, primarily due to a 10% drop in net interest income. The efficiency ratio remained stable at 67.0%, while the return on average tangible common equity (ROTCE) fell to 9.8% from 10.9% in 2023. Tangible book value per common share increased by 5% to $32.34.

The decrease in net interest income, totaling $608 million or 10%, stemmed from a lower net interest margin and a 2% decrease in average interest-earning assets. The net interest margin on a fully taxable equivalent (FTE) basis decreased by 25 basis points, influenced by higher funding and swap costs and liquidity building efforts, partially offset by higher asset yields and Non-Core portfolio runoff. Average interest-earning assets decreased by $3.6 billion, primarily due to a decline in loans and leases, partially offset by increases in investment securities and cash held in interest-bearing deposits. Average deposits remained relatively unchanged compared to 2023, while average total borrowed funds decreased by $2.5 billion.

Noninterest income decreased by $15 million to $2,161 million, primarily due to a decline in mortgage banking fees, offset by increases in capital markets fees, card fees, and wealth fees. Noninterest expense decreased by $273 million to $5,078 million, mainly due to lower other operating expenses, including a reduction in the FDIC special assessment. The provision for credit losses remained stable at $687 million, reflecting higher reserves against certain portfolios, partially offset by a decline in total loans and leases. Income tax expense decreased by $43 million to $379 million, resulting from a higher benefit from tax-advantaged investments.

CFG's two primary business segments, Consumer Banking and Commercial Banking, showed contrasting performances. Consumer Banking saw an increase in net interest income driven by higher margins and asset growth, while noninterest income also increased. Commercial Banking experienced a decrease in net interest income due to lower margins and asset decline, although noninterest income increased. The Non-Core segment saw an increase in net interest income due to lower funding costs. As of December 31, 2024, CFG employed 17,287 full-time equivalent employees.

CFG's outlook and future performance are subject to various risks and uncertainties, including economic conditions, interest rate changes, competition, regulatory changes, and cybersecurity threats. The company highlighted the potential impact of inflationary pressures, geopolitical instability, and the ongoing evolution of the regulatory environment. The company also noted that the actual amounts and timing of future common stock dividends or share repurchases will depend on several factors, including its capital position, financial performance, and regulatory considerations.