01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Citizens Financial Group, Inc. (CFG) reported a net income of $1.51 billiona for the fiscal year ended December 31, 2024, a decrease from $1.61 billion in the prior year.
This decline was attributed primarily to a 10%b decrease in net interest income, influenced by higher funding costs and balance sheet optimization efforts, despite an increase in noninterest income driven by strong performance in capital markets and card fees. The company's strategic focus remains on customer-centricity, digital transformation, and operational efficiency, evidenced by the ongoing "Tapping our Potential" (TOP) initiatives.
CFG maintained a strong capital position, with its CET1 capital ratio at 10.8% for the parent company and 12.3% for its banking subsidiary, CBNA, both well above regulatory minimums. The company also returned $1.1 billionc to shareholders through share repurchases and $769 million in common stock dividends during the year, demonstrating a commitment to shareholder value while navigating a dynamic economic and regulatory landscape.
02—Key points
Key Highlights
- Net income for the fiscal year ended December 31, 2024, was $1.51 billion, a decrease from $1.61 billion in 2023.
- Total revenue decreased by $415 million to $7.8 billion, primarily due to a 10% decline in net interest income.
- Noninterest income increased by $193 million to $2.18 billion, driven by higher capital markets fees and card fees.
- Noninterest expense decreased by $273 million to $5.23 billion, largely due to a reduction in other operating expenses, including a lower FDIC special assessment compared to the prior year.
- The company's CET1 capital ratio remained robust at 10.8% for the parent and 12.3% for CBNA, exceeding regulatory requirements.
- Citizens Financial Group repurchased $1.1 billion of its common stock and paid $769 million in common stock dividends during the year.
- The allowance for credit losses remained stable at $2.26 billion, with a slight increase in the net charge-off ratio to 0.52% due to increases in commercial real estate and other retail segments.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.81B$8.22B | −5.0% |
| Net Income | $1.51B$1.61B | −6.2% |
| EPS (Basic) | $3.05$3.14 | −2.9% |
| EPS (Diluted) | $3.03$3.13 | −3.2% |
| Shares Outstanding (Basic) | 450.68M475.09M | −5.1% |
| Shares Outstanding (Diluted) | 453.51M476.69M | −4.9% |
05—Questions
Frequently Asked Questions
What was Citizens Financial Group's net income for the fiscal year ended December 31, 2024, and how does it compare to the previous year?
Citizens Financial Group reported a net income of $1.51 billion for the fiscal year ended December 31, 2024. This represents a decrease from the $1.61 billion reported for the fiscal year ended December 31, 2023.
What are the primary drivers of the change in Citizens Financial Group's total revenue?
Total revenue decreased by $415 million to $7.8 billion. The primary driver for this decrease was a 10% decline in net interest income, influenced by higher funding costs and strategic balance sheet optimization. This was partially offset by a significant increase in noninterest income, particularly from capital markets fees and card fees.
How is Citizens Financial Group managing its capital and what are its key capital ratios?
Citizens Financial Group maintained a strong capital position. Its CET1 capital ratio was 10.8% for the parent company and 12.3% for its banking subsidiary, CBNA, both well above regulatory minimums. The company's total capital ratio was 14.0% for the parent and 14.2% for CBNA. These ratios reflect the company's commitment to capital adequacy and regulatory compliance.
What is the company's outlook on returning capital to shareholders?
Citizens Financial Group returned $1.1 billion to shareholders through common stock repurchases and paid $769 million in common stock dividends during the fiscal year 2024. All future capital distributions, including dividends and share repurchases, are subject to Board of Directors approval and consideration of capital position, financial performance, market conditions, and regulatory requirements.
06—Continue