We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Citizens Financial Q4 Earnings Beat Estimates on Fee Income Growth
Read MoreHide Full Article
Citizens Financial Group (CFG - Free Report) has reported fourth-quarter 2024 adjusted earnings per share (EPS) of 85 cents, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line remained unchanged from the year-ago quarter.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
For 2024, adjusted EPS was $3.25, which beat the Zacks Consensus Estimate of $3.2. However, this compares unfavorably with $3.88 reported in the year-ago quarter.
Capital market fees of $121 million rose 39.1% year over year, driven by higher loan syndication and merger and acquisition fees.
Results benefited from a rise in non-interest income, along with reduced expenses. Additionally, a strong capital position was a positive factor. However, lower net interest income (NII) and declining loan and deposit balances were major headwinds.
Net income (GAAP basis) was $401 million, which increased significantly from $189 million reported in the prior-year quarter.
For 2024, the company reported net income (GAAP basis) of $1.5 billion, which decreased 6.2% year over year.
CFG’s Revenues and Expenses Fall
Total quarterly revenues in the second quarter were $1.99 billion, which surpassed the Zacks Consensus Estimate of $1.96 billion. However, the top line declined marginally year over year.
Full-year revenues aggregated to $7.81 billion, which decreased 5% year over year. Nonetheless, the top line beat the Zacks Consensus Estimate of $7.79 billion.
Citizens Financial’s NII decreased 5.1% year over year to $1.41 billion due to a lower net interest margin and a decline in average interest-earning assets. Our estimate for NII was $1.4 billion.
The net interest margin (NIM) shrunk four basis points to 2.86% on the back of increased funding and swap costs and deposit migration, which were partially offset by the benefit of fixed-rate asset repricing and Non-Core run-off. Our estimate for NIM was 2.68%.
The non-interest income increased 14.8% to $574 million. The improvement resulted from increased service charges and fees, capital market fees, card fees and wealth fees, and mortgage banking income. Our estimate for non-interest income was $548.8 million.
Non-interest expenses decreased 18.4% to $1.32 billion. The decline was due to a fall in equipment and software costs, outside services costs, occupancy costs and lower other operating expenses. Our estimate for the metric was $1.33 billion.
Underlying non-interest expenses increased 2% to $1.29 billion from the prior-year quarter.
The efficiency ratio of 66.3% in the fourth quarter decreased from 81.1% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
CFG’s Loan & Deposit Balances Decline
As of Dec. 31, 2024, period-end total loans and leases were $139.2 billion, down 1.7% from the prior-year quarter. Total deposits decreased marginally to $174.8 billion. Our estimates for total loans and deposits were $149.1 billion and $179.4 billion, respectively.
CFG’s Credit Quality: Mixed Bag
As of Dec. 31, 2024, CFG’s provision for credit losses was $162 million, which declined 5.3% from the year-ago quarter. Our estimate for the metric was $135 million.
The allowance for credit losses decreased 2.5% to $2.26 billion.
Net charge-offs increased 10.5% to $189 million. Our estimate for the metric was $194 million.
Non-accrual loans and leases were up 22% to $1.67 billion. Our estimate for the metric was $1.61 billion.
CFG’s Capital Position Improves
As of Dec. 31, 2024, the tier 1 leverage ratio was 9.4%, which increased from 9.3% reported in the prior-year quarter.
The common equity tier 1 capital ratio was 10.8% compared with 10.6% at the end of the prior-year quarter. Further, the total capital ratio was 14%, up from 13.7% reported in the prior-year quarter.
CFG’s Share Repurchase Update
In the fourth quarter of 2024, CFG repurchased $225 million of common shares and paid $188 million in common dividends.
Our View on CFG
Citizens Financial’s focus on BSO plans, strategic and efficiency initiatives, and inorganic growth moves aid its financials. A solid liquidity position enables sustainable capital distributions. However, a lower NII, declining loan and deposit balances are concerns.
Citizens Financial Group, Inc. Price, Consensus and EPS Surprise
Wintrust Financial Corporation (WTFC - Free Report) is scheduled to release fourth-quarter 2024 earnings on Jan. 31. The company carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for WTFC’s quarterly earnings has remained unchanged at $2.52 per share over the past seven days.
Commerce Bancshares, Inc. (CBSH - Free Report) is scheduled to release fourth-quarter 2024 earnings on Jan. 22. The company carries a Zacks Rank #3 at present.
The Zacks Consensus Estimate for CBSH’s quarterly earnings has moved downward to 94 cents per share over the past seven days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Citizens Financial Q4 Earnings Beat Estimates on Fee Income Growth
Citizens Financial Group (CFG - Free Report) has reported fourth-quarter 2024 adjusted earnings per share (EPS) of 85 cents, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line remained unchanged from the year-ago quarter.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
For 2024, adjusted EPS was $3.25, which beat the Zacks Consensus Estimate of $3.2. However, this compares unfavorably with $3.88 reported in the year-ago quarter.
Capital market fees of $121 million rose 39.1% year over year, driven by higher loan syndication and merger and acquisition fees.
Results benefited from a rise in non-interest income, along with reduced expenses. Additionally, a strong capital position was a positive factor. However, lower net interest income (NII) and declining loan and deposit balances were major headwinds.
Net income (GAAP basis) was $401 million, which increased significantly from $189 million reported in the prior-year quarter.
For 2024, the company reported net income (GAAP basis) of $1.5 billion, which decreased 6.2% year over year.
CFG’s Revenues and Expenses Fall
Total quarterly revenues in the second quarter were $1.99 billion, which surpassed the Zacks Consensus Estimate of $1.96 billion. However, the top line declined marginally year over year.
Full-year revenues aggregated to $7.81 billion, which decreased 5% year over year. Nonetheless, the top line beat the Zacks Consensus Estimate of $7.79 billion.
Citizens Financial’s NII decreased 5.1% year over year to $1.41 billion due to a lower net interest margin and a decline in average interest-earning assets. Our estimate for NII was $1.4 billion.
The net interest margin (NIM) shrunk four basis points to 2.86% on the back of increased funding and swap costs and deposit migration, which were partially offset by the benefit of fixed-rate asset repricing and Non-Core run-off. Our estimate for NIM was 2.68%.
The non-interest income increased 14.8% to $574 million. The improvement resulted from increased service charges and fees, capital market fees, card fees and wealth fees, and mortgage banking income. Our estimate for non-interest income was $548.8 million.
Non-interest expenses decreased 18.4% to $1.32 billion. The decline was due to a fall in equipment and software costs, outside services costs, occupancy costs and lower other operating expenses. Our estimate for the metric was $1.33 billion.
Underlying non-interest expenses increased 2% to $1.29 billion from the prior-year quarter.
The efficiency ratio of 66.3% in the fourth quarter decreased from 81.1% in the year-ago quarter. A fall in the efficiency ratio reflects increased profitability.
CFG’s Loan & Deposit Balances Decline
As of Dec. 31, 2024, period-end total loans and leases were $139.2 billion, down 1.7% from the prior-year quarter. Total deposits decreased marginally to $174.8 billion. Our estimates for total loans and deposits were $149.1 billion and $179.4 billion, respectively.
CFG’s Credit Quality: Mixed Bag
As of Dec. 31, 2024, CFG’s provision for credit losses was $162 million, which declined 5.3% from the year-ago quarter. Our estimate for the metric was $135 million.
The allowance for credit losses decreased 2.5% to $2.26 billion.
Net charge-offs increased 10.5% to $189 million. Our estimate for the metric was $194 million.
Non-accrual loans and leases were up 22% to $1.67 billion. Our estimate for the metric was $1.61 billion.
CFG’s Capital Position Improves
As of Dec. 31, 2024, the tier 1 leverage ratio was 9.4%, which increased from 9.3% reported in the prior-year quarter.
The common equity tier 1 capital ratio was 10.8% compared with 10.6% at the end of the prior-year quarter. Further, the total capital ratio was 14%, up from 13.7% reported in the prior-year quarter.
CFG’s Share Repurchase Update
In the fourth quarter of 2024, CFG repurchased $225 million of common shares and paid $188 million in common dividends.
Our View on CFG
Citizens Financial’s focus on BSO plans, strategic and efficiency initiatives, and inorganic growth moves aid its financials. A solid liquidity position enables sustainable capital distributions. However, a lower NII, declining loan and deposit balances are concerns.
Citizens Financial Group, Inc. Price, Consensus and EPS Surprise
Citizens Financial Group, Inc. price-consensus-eps-surprise-chart | Citizens Financial Group, Inc. Quote
Currently, Citizens Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Bank Stocks
Wintrust Financial Corporation (WTFC - Free Report) is scheduled to release fourth-quarter 2024 earnings on Jan. 31. The company carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for WTFC’s quarterly earnings has remained unchanged at $2.52 per share over the past seven days.
Commerce Bancshares, Inc. (CBSH - Free Report) is scheduled to release fourth-quarter 2024 earnings on Jan. 22. The company carries a Zacks Rank #3 at present.
The Zacks Consensus Estimate for CBSH’s quarterly earnings has moved downward to 94 cents per share over the past seven days.