10-KPeriod: FY2015

CITIZENS FINANCIAL GROUP INC/RI Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:CFGCFG-PHCFG-PECFG-PI

Summary

Citizens Financial Group, Inc. (CFG) reported its 2015 annual results, marking a significant milestone as it completed its full separation from its former parent, RBS, through a series of equity offerings. The company, with $138.2 billion in assets as of December 31, 2015, operates primarily through two segments: Consumer Banking and Commercial Banking. For the year, CFG reported net income of $840 million, a slight decrease from the prior year, but excluding restructuring and special items, net income grew by 10% to $871 million. This growth was driven by a 3% increase in net interest income and a 2% increase in non-interest income (excluding the impact of the Chicago Divestiture gain in 2014). The company's strategic priorities in 2015 focused on strengthening its Consumer Banking capabilities and continuing the momentum in Commercial Banking, alongside growing its balance sheet and optimizing its cost structure through initiatives like 'Project Top' which achieved significant expense savings. CFG maintained a strong capital position with a CET1 ratio of 11.7% at year-end 2015, exceeding peer averages. Asset quality remained solid with improving credit trends, as evidenced by declining net charge-offs.

Financial Highlights

38 data points
Beta

Revenue

$4.82B

Net Income

$840.00M

17.4% Net Margin

EPS (Diluted)

$1.55

Total Assets

$138.21B

Cash & Equivalents

$3.08B

Free Cash Flow

$1.23B

Financial Statements
Beta
Revenue$4.82B
Interest Expense$452.00M
Net Income$840.00M
EPS (Basic)$1.55
EPS (Diluted)$1.55
Shares Outstanding (Basic)535.60M
Shares Outstanding (Diluted)538.22M

Key Highlights

  • 1Completed full separation from RBS, a major strategic achievement.
  • 2Reported net income of $840 million, with adjusted net income increasing 10% year-over-year to $871 million, indicating operational improvement.
  • 3Net interest income grew 3% to $3.4 billion, supported by earning asset growth.
  • 4Implemented efficiency initiatives ('Project Top') achieving significant expense savings.
  • 5Maintained a strong capital position with a CET1 ratio of 11.7%, well above peer averages.
  • 6Loan portfolio grew 6% year-over-year, driven by commercial and retail segments.
  • 7Credit quality continued to improve, with net charge-offs declining by 12%.

Frequently Asked Questions

Citizens Financial Group reported a net income of $840 million for 2015, a slight decrease from $865 million in 2014. However, when excluding restructuring charges and special items, the adjusted net income increased by 10% to $871 million, indicating underlying operational improvement. The company also saw a 3% increase in net interest income and a 2% increase in non-interest income (excluding the impact of a 2014 divestiture gain).

CFG focused on several strategic initiatives, including strengthening its Consumer Banking capabilities and enhancing its Commercial Banking momentum. The company also aimed to grow its balance sheet and improve operational efficiency through programs like 'Project Top,' which generated significant expense savings. A core part of their strategy was also completing the full separation from RBS, achieved through a series of equity offerings.

Citizens Financial Group maintained a strong capital position throughout 2015, with a Common Equity Tier 1 (CET1) capital ratio of 11.7% as of December 31, 2015, which was above the peer average. The company also reported solid asset quality, with credit trends continuing to improve. This is reflected in the decline of net charge-offs by 12% and a nonperforming asset ratio of 0.80% at year-end.

The completion of the separation from RBS, achieved through a series of equity offerings and the final sale of RBS's remaining shares in November 2015, was a major strategic milestone. This fully separated CFG as an independent, publicly traded entity, allowing it to operate with its own strategic direction and capital structure, free from its former parent's influence.