Citizens Financial Broadly Affirms FY24 Forecast Post Mixed Q1 Results: Details

Citizens Financial Group Inc CFG reported a first-quarter FY24 revenue decline of 7.9% year-on-year to $1.959 billion, slightly missing the analyst consensus estimate of $1.96 billion.

Net interest income fell 12% Y/Y to $1.44 billion and slipped 3% sequentially due to lower loans and the impact of day count.

Adjusted net income available to common stockholders for the quarter decreased 32% Y/Y to $365 million. Adjusted EPS of $0.79 beat the consensus estimate of $0.74.

The adjusted efficiency ratio for the quarter was 65.1% compared to 57.8% last year. The CET 1 ratio improved to 10.6%, compared to 10.0% a year ago. The period-end loans to deposit ratio was 81.16% compared to 89.83% last year. Provision for credit losses rose to $171 million vs. $168 million a year ago.

“We are pleased to start the year with a solid first quarter, featuring a bounce back in capital markets fees, stable NIM, further improvement in our LDR, tight expense management and a strong capital and credit reserve position,” said Chairman and CEO Bruce Van Saun.

Citizens also announced today that its board declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on May 15 to shareholders of record at the close of business on May 1.

Citizens held $1.09 billion in cash and due from banks as of March 31, 2024.

Chairman and CEO Bruce Van Saun, said, “We are executing well on our key strategic initiatives, including the Private Bank, NYC Metro, TOP 9 and servicing Private Capital. We remain comfortable with our full year guidance and are excited by our medium-term prospects.”

Outlook: For the second quarter underlying outlook, CFG expects net interest income to be down 2% and noninterest income growth of 3%- 4% versus the first quarter.

Price Action: CFG shares are trading higher by 0.28% at $32.50 in premarket on the last check Wednesday.