10-QPeriod: Q1 FY2019

CITIZENS FINANCIAL GROUP INC/RI Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 8, 2019For Securities:CFGCFG-PHCFG-PECFG-PI

Summary

Citizens Financial Group, Inc. (CFG) reported a strong first quarter of 2019, with net income increasing by 13% year-over-year to $439 million, translating to diluted EPS of $0.92, an 18% increase. The company saw robust top-line growth with total revenue up 9% to $1.6 billion, driven by solid performance in both net interest income (up 6%) and noninterest income (up 15%). The net interest margin expanded slightly by four basis points to 3.23%. Consumer Banking and Commercial Banking segments both contributed positively to revenue growth. The company also demonstrated improved operational efficiency, with its efficiency ratio declining to 59.0% from 60.4% in the prior year, indicating better cost management relative to income. Capital ratios remained strong and well above regulatory minimums, with the CET1 ratio at 10.5% at the end of the quarter. Management highlighted strategic growth initiatives and investments in capabilities as drivers for revenue increases, particularly in capital markets and foreign exchange services.

Financial Highlights

38 data points
Beta

Revenue

$1.59B

Net Income

$439.00M

27.6% Net Margin

EPS (Diluted)

$0.92

Total Assets

$161.34B

Cash & Equivalents

$2.44B

Free Cash Flow

$472.00M

Financial Statements
Beta
Revenue$1.59B
Interest Expense$410.00M
Net Income$439.00M
EPS (Basic)$0.92
EPS (Diluted)$0.92
Shares Outstanding (Basic)460.71M
Shares Outstanding (Diluted)462.52M

Key Highlights

  • 1Net income rose 13% to $439 million ($0.92 diluted EPS), up 18% from Q1 2018.
  • 2Total revenue increased 9% to $1.6 billion, driven by strong growth in both net interest income (+6%) and non-interest income (+15%).
  • 3Net interest margin improved by 4 basis points to 3.23% due to higher asset yields and a favorable mix shift.
  • 4Non-interest income benefited from increased capital markets, foreign exchange, and mortgage banking fees.
  • 5Efficiency ratio improved to 59.0% from 60.4%, demonstrating progress in cost management.
  • 6Return on tangible common equity (ROTCE) increased by 129 basis points to 13.0%.
  • 7Total deposits grew 4% to $123.9 billion, providing a stable funding source.

Frequently Asked Questions

Citizens Financial Group reported a net income of $439 million, a 13% increase compared to $388 million in the first quarter of 2018. Earnings per diluted common share were $0.92, an 18% increase year-over-year.

Total revenue grew by 9% to $1.6 billion in the first quarter of 2019, compared to $1.46 billion in the first quarter of 2018. This growth was driven by a 6% increase in net interest income to $1.16 billion and a 15% increase in noninterest income to $428 million.

The company's efficiency ratio improved to 59.0% in Q1 2019 from 60.4% in Q1 2018, indicating improved operational efficiency. Management aims to continue focusing on top-line growth and expense management to further enhance this ratio.

Total loans and leases increased by 1% to $117.6 billion as of March 31, 2019, with growth primarily in commercial loans and leases. Total deposits increased by 4% to $123.9 billion, showing strong growth in term deposits, regular savings, and checking accounts with interest, providing a stable funding base.