Q2 2024 Citizens Financial Group Inc Earnings Call Transcript
Key Points
- Citizens Financial Group Inc (CFG) reported strong fee performance, particularly in capital markets, wealth, and card fees.
- The company maintained a robust balance sheet with a CET1 ratio of 10.7% and a loan-to-deposit ratio of 80%.
- CFG repurchased $200 million in shares over the quarter, contributing to a 4% sequential EPS increase.
- The Private Bank showed significant growth, reaching $4 billion in deposits and $3.6 billion in assets under management.
- The commercial bank hired new leaders for Florida and California, indicating strategic expansion in key markets.
- Net interest income (NII) was down 2% linked quarter, reflecting lower net interest margin and loan balances.
- The allowance for credit losses (ACL) ratio increased to 1.63%, indicating higher credit risk.
- Commercial real estate (CRE) exposure, particularly in general office properties, remains a concern with ongoing workouts expected to take several more quarters.
- The stress capital buffer (SCB) came in higher than expected, potentially impacting capital allocation strategies.
- Non-core loan portfolios continue to run down, which could affect overall loan growth and balance sheet optimization.
Good morning, everyone and welcome to the Citizens Financial Group second-quarter earnings conference call. My name is Alan, and I'll be your operator today. (Operator Instructions) As a reminder, this event is being recorded.
Now I'll turn the call over to Kristin Silberberg, Executive Vice President, Investor Relations. Kristin, you may begin.
Thank you, Alan. Good morning, everyone and thank you for joining us. First this morning our Chairman and CEO, Bruce Van Saun; and CFO, John Woods will provide an overview of our second quarter results. Brendan Coughlin, Head of Consumer Banking; and Don McCree, Head of Commercial Banking are also here to provide additional color.
We will be referencing our second quarter earnings presentation located on our Investor Relations website. After the presentation, we will be happy to take questions. Our comments today will include forward-looking statements, which are subject to risks and uncertainties that may cause our results
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