Citizens Financial Group, Inc. (CFG), headquartered in Providence, Rhode Island, is a significant player in the U.S. banking sector with $217.5 billion in assets as of December 31, 2024. The bank provides a range of retail and commercial banking services, including lending, deposit-taking, and wealth management.

In its fourth quarter of 2024, Citizens Financial reported underlying net income of $412 million, translating to an EPS of $0.85, up 5% sequentially but down 3% compared to the previous year’s fourth quarter. The bank’s return on tangible common equity (ROTCE) was recorded at 10.7%, climbing from 9.7% the prior quarter but decreasing from 11.8% year-over-year.

Total net interest income (NII) for the quarter was $1.4 billion, reflecting a 3% increase from the prior quarter, driven by a 10 basis points improvement in the net interest margin (NIM) to 2.87%. Year-over-year, however, NII declined by 5%. Citizens experienced a 5.6% growth in noninterest income, amounting to $574 million, primarily due to increased Capital Markets fees. In contrast, total revenue for Q4 declined by 1% year-over-year to $1.976 billion.

Expenses rose by 4% sequentially, reaching $1.292 billion, largely attributed to investments in the Private Bank and initiatives in the Commercial middle market, resulting in a positive operating leverage of approximately 50 basis points. Citizens maintained a strong capital position, evidenced by a Common Equity Tier 1 (CET1) capital ratio of 10.8%, up from 10.6% in the previous quarter.

For the full year of 2024, CFG recorded net income of $1.5 billion and EPS of $3.03, down from $3.13 in 2023. Adjusted earnings per share were $3.24 for the year, compared to $3.88 the previous year. The firm reported total revenue of $7.8 billion, marking a 5% decrease year-over-year, while the net interest margin averaged 2.85%. CFG has recognized a year-over-year reduction of 10% in net interest income for the full year, primarily due to lower volume and strategic portfolio runoffs.

In Q4, Citizens Financial saw a 1.7% decline in period-end loans, impacted by Non-Core portfolio runoffs and reduced commercial loan demand. However, Private Bank lending rose by $1.1 billion, totaling $3.1 billion by year-end. Average deposits were relatively stable, totaling $174.3 billion, despite challenges in higher-cost Treasury deposits.

Citizens Financial is poised for a steady outlook as it anticipates continued growth in net interest income and an improvement in credit trends, following a provision for credit losses of $162 million in Q4. The bank emphasizes a focus on maintaining strong capital ratios and operational efficiency as it moves into 2025.