Q4 2024 Citizens Financial Group Inc Earnings Call Transcript
Key Points
- Citizens Financial Group Inc (CFG) reported a strong fourth quarter with a 3% sequential growth in net interest income (NII) driven by a 10 basis point expansion in net interest margin (NIM).
- The company achieved a 6% sequential increase in fees, led by capital markets and mortgage activities.
- CFG's credit trends are favorable, with non-performing assets (NPAs) and criticized assets trending down, and no surprises in charge-offs.
- The Private Bank and Private Wealth segments showed significant progress, reaching profitability in the fourth quarter with $7 billion in deposits and $3.1 billion in loans.
- CFG repurchased $225 million in shares during the quarter, bringing the full-year total to $1.05 billion, demonstrating strong capital management.
- Loan demand remains subdued, impacting overall loan growth despite the positive NIM expansion.
- Expenses grew by 3.5% sequentially, driven by hiring in private banking and commercial middle market, which could pressure future profitability if not managed carefully.
- The noncore portfolio continues to be a drag, with a negative $0.10 impact on EPS in the fourth quarter.
- CFG's allowance for credit losses (ACL) coverage ratio increased slightly to 1.62%, indicating ongoing caution in credit risk management.
- The commercial real estate (CRE) portfolio, particularly the general office segment, remains a concern, with ongoing workout processes expected to continue into 2025.
Good morning, everyone, and welcome to the Citizens Financial Group fourth-quarter and full-year earnings conference call. My name is Ivy, and I'll be your operator today. (Operator Instructions) As a reminder, this event is being recorded.
I'll now turn the call over to Lovin Thomas, Senior Vice President, Investor Relations. Lovin, you may begin.
Thank you, Ivy. Good morning, everyone, and thank you for joining us. I'm stepping in today for Kristin, who is out sick. First, this morning, our Chairman and CEO, Bruce Van Saun; and CFO, John Woods, will provide an overview of our fourth quarter and full year 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 fourth quarter and full year 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
