Q3 2024 Citizens Financial Group Inc Earnings Call Transcript
Key Points
- Citizens Financial Group Inc (CFG) reported strong progress in its Private Bank, with deposits increasing to $5.6 billion from $4 billion in the previous quarter.
- The company achieved a breakeven point in its Private Bank by mid-third quarter and expects it to be profitable in Q4.
- CFG's commercial bank ranked number one in sponsor leveraged loan arrangements over the past 12 months.
- The company executed well on its TOP 9 initiative, achieving a Q4 run rate benefit of $135 million, and is finalizing TOP 10, expected to deliver over $100 million by the end of 2025.
- CFG maintained a strong capital position with a CET1 ratio of 10.6% and repurchased $325 million in stock during the quarter.
- Net interest income (NII) was down 2.9% quarter-over-quarter, primarily due to lower net interest margin (NIM) and slightly lower interest-earning assets.
- Capital markets fees decreased by 30% due to seasonal trends and some M&A deals being pushed into the fourth quarter.
- Nonaccrual loans increased by 10% quarter-over-quarter, primarily due to an increase in commercial real estate general office loans.
- CFG experienced a decline in commercial loans by about $580 million, reflecting paydowns and generally lower client loan demand.
- The company's P&L was impacted by the drag from forward starting swaps and some fees being pushed out to Q4.
Good morning, everyone, and welcome to the Citizens Financial Group Third 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 third 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 third quarter earnings presentation located on our Investor Relations website. After the presentation, we'll 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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