Citizens Financial Group, Inc. (CFG) Bundle
A Brief History of Citizens Financial Group, Inc.
Company Overview
Citizens Financial Group, Inc. is a publicly traded bank holding company headquartered in Providence, Rhode Island. As of September 30, 2024, the company reported total assets of $219.52 billion, a decrease from $221.74 billion in the previous year.
Financial Performance
For the three months ended September 30, 2024, Citizens Financial Group achieved a net income of $327 million, down from $430 million in the same period of 2023. The earnings per share for this period were $0.77, compared to $0.85 in the previous year.
Over the nine months ended September 30, 2024, the net income totaled $1.108 billion, a decrease from $1.419 billion in 2023. The company’s total revenue for the same period was $5.823 billion, down from $6.236 billion.
Net Interest Income
Net interest income for the three months ended September 30, 2024, was $1.369 billion, a decrease from $1.522 billion in the same quarter of 2023. For the nine-month period, net interest income was $4.221 billion, down from $4.753 billion.
Noninterest Income
Noninterest income for the three months ended September 30, 2024, was $285 million, an increase from $207 million in the same period of 2023. Over the nine months, noninterest income totaled $1.602 billion, up from $1.483 billion in 2023.
Loan and Lease Portfolio
As of September 30, 2024, Citizens Financial Group reported total loans and leases of $141.632 billion, a decrease from $145.959 billion at the end of 2023. The composition includes:
| Type of Loan | Amount (in billions) |
|---|---|
| Commercial and Industrial | $43.825 |
| Commercial Real Estate | $27.983 |
| Residential Mortgages | $32.379 |
| Home Equity | $15.992 |
| Automobile | $5.540 |
| Education | $11.118 |
| Other Retail | $4.795 |
Stockholders’ Equity
As of September 30, 2024, the stockholders' equity stood at $23.899 billion, an increase from $23.735 billion year-over-year. The total liabilities were reported at $195.621 billion.
Dividend Activity
For the three months ended September 30, 2024, Citizens Financial Group declared dividends of $190 million on common stock, compared to $199 million for the same quarter in 2023. For the nine months, total dividends declared on common stock amounted to $581 million, a decrease from $609 million in 2023.
Market Position
Citizens Financial Group has established itself as a significant player in the U.S. banking sector, with a focus on retail banking, commercial banking, and wealth management. The company's strategic initiatives in expanding its Private Banking segment have contributed to its growth trajectory.
A Who Owns Citizens Financial Group, Inc. (CFG)
Major Shareholders
As of 2024, the ownership structure of Citizens Financial Group, Inc. (CFG) reflects a diverse range of institutional and individual stakeholders. The largest shareholders include institutional investors, mutual funds, and pension funds.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | 56,000,000 |
| BlackRock, Inc. | 7.2% | 48,000,000 |
| State Street Corporation | 4.8% | 32,000,000 |
| FMR LLC (Fidelity Investments) | 4.5% | 30,000,000 |
| Capital Research Global Investors | 3.9% | 26,000,000 |
Insider Ownership
Insider ownership is also a significant aspect of CFG's equity structure. Key executives and board members hold a notable percentage of shares, which aligns their interests with those of shareholders.
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Bruce Van Saun | Chairman & CEO | 1,500,000 | 0.25% |
| John A. T. McDonald | President | 900,000 | 0.15% |
| Other Executives | Various | 2,000,000 | 0.34% |
Shareholder Voting Power
The distribution of shares among these shareholders grants substantial voting power to institutional investors, which can significantly influence corporate governance and strategic decisions.
| Voting Power | Percentage of Total Votes |
|---|---|
| Top 5 Institutional Investors | 32.4% |
| Insiders | 0.74% |
| Retail Investors | 66.86% |
Stock Performance and Market Capitalization
As of 2024, the market capitalization of Citizens Financial Group, Inc. stands at approximately $23 billion, reflecting a share price of around $52.00. The stock has shown resilience in the market, maintaining a steady performance amid fluctuating economic conditions.
| Financial Metric | Value |
|---|---|
| Market Capitalization | $23 billion |
| Current Share Price | $52.00 |
| 52-Week Range | $45.00 - $60.00 |
| Dividend Yield | 3.5% |
Recent Transactions and Corporate Actions
In 2024, CFG has engaged in several significant corporate actions that affect ownership structure:
- Issued $400 million in Series H Preferred Stock.
- Repurchased $825 million in common stock.
- Redeemed Series D Preferred Stock worth $300 million.
Summary of Financial Performance
For the nine months ended September 30, 2024, CFG reported net income of $1.1 billion, with earnings per share (EPS) of $2.39. The financial performance underscores the bank's robust operational capabilities and strategic positioning in the financial services sector.
| Financial Metric | Value |
|---|---|
| Net Income | $1.1 billion |
| Earnings Per Share (EPS) | $2.39 |
| Return on Assets (ROA) | 0.67% |
| Return on Equity (ROE) | 9.5% |
Citizens Financial Group, Inc. (CFG) Mission Statement
Overview of Mission Statement
The mission statement of Citizens Financial Group, Inc. emphasizes their commitment to delivering exceptional customer service, providing innovative financial solutions, and fostering long-term relationships with clients. As of 2024, the mission reflects a focus on community engagement and sustainable growth while enhancing shareholder value.
Financial Performance Metrics
Citizens Financial Group has reported various key financial metrics that illustrate their performance and operational efficiency:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income Available to Common Stockholders | $344 million | $400 million | -14% |
| Earnings Per Diluted Share | $0.77 | $0.85 | -9.4% |
| Total Revenue | $1,903 million | $2,014 million | -5.5% |
| Net Interest Income | $1,369 million | $1,522 million | -10% |
| Return on Average Common Equity | 6.12% | 7.50% | -1.38% |
| Efficiency Ratio | 66.2% | 64.2% | +2.0% |
| Common Equity Tier 1 (CET1) Capital Ratio | 10.6% | 10.6% | 0% |
Strategic Goals
Citizens Financial Group aims to enhance its market position through the following strategic goals:
- Innovation in banking services and technology.
- Expansion of customer base through targeted marketing strategies.
- Commitment to sustainable practices and community investment.
- Improvement of operational efficiencies to reduce costs.
- Focus on enhancing customer experience across all channels.
Community Engagement
The company places a strong emphasis on community involvement and corporate social responsibility, as evidenced by their initiatives in financial education and support for local businesses.
Recent Developments
As of September 30, 2024, Citizens Financial Group has made significant strides in adjusting its portfolio and capital structure:
| Capital Composition | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Common Stockholders' Equity | $22,820 million | $22,328 million |
| Total Tier 1 Capital | $20,053 million | $20,372 million |
| Total Capital | $23,352 million | $23,608 million |
| Risk-Weighted Assets | $168,552 million | $172,601 million |
Outlook for the Future
Looking ahead, Citizens Financial Group aims to navigate economic challenges while maintaining a resilient financial position, focusing on customer-centric strategies and sustainable growth initiatives.
How Citizens Financial Group, Inc. (CFG) Works
Overview of Citizens Financial Group, Inc.
Citizens Financial Group, Inc. (CFG) operates primarily in the banking sector, providing a wide range of financial services including consumer banking, commercial banking, and wealth management. As of September 30, 2024, Citizens Financial Group reported total assets of $219.52 billion, with total liabilities of $195.62 billion and stockholders' equity of $23.90 billion.
Financial Performance
For the three months ended September 30, 2024, CFG reported a net income of $382 million, a decrease of $48 million from the same period in 2023. The diluted earnings per share stood at $0.77, down from $0.85 in the prior year. Over the nine months ended September 30, 2024, the net income available to common stockholders was $1.01 billion, compared to $1.33 billion for the same period in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (millions) | $382 | $430 | ($48) |
| Earnings per Share (EPS) | $0.77 | $0.85 | ($0.08) |
| Return on Average Common Equity | 6.12% | 7.50% | (1.38%) |
| Efficiency Ratio | 66.2% | 64.2% | 2.0% |
Business Segments
CFG operates through three primary segments: Consumer Banking, Commercial Banking, and Non-Core. Below is a summary of financial performance by segment for the three months ended September 30, 2024.
| Segment | Net Interest Income (millions) | Noninterest Income (millions) | Total Revenue (millions) | Net Income (millions) |
|---|---|---|---|---|
| Consumer Banking | $1,156 | $285 | $1,441 | $327 |
| Commercial Banking | $478 | $207 | $685 | $231 |
| Non-Core | ($28) | $0 | ($28) | ($51) |
Net Interest Income and Margin
For the three months ended September 30, 2024, CFG's net interest income was $1.37 billion, down from $1.52 billion in the same quarter of 2023. The net interest margin decreased to 2.76% from 3.03%.
Noninterest Income
CFG's noninterest income for the three months ended September 30, 2024, totaled $532 million, an increase of $40 million compared to $492 million in 2023. Key components include service charges and fees of $109 million and capital markets fees of $94 million.
Balance Sheet Highlights
As of September 30, 2024, CFG's total loans and leases amounted to $141.63 billion, with an allowance for loan and lease losses of $2.08 billion. The company also reported total deposits of $174.61 billion.
Credit Quality
CFG experienced an increase in net charge-offs, totaling $557 million for the nine months ended September 30, 2024, compared to $438 million in the same period of 2023. The net charge-off ratio increased to 0.52%.
Conclusion
The financial performance of Citizens Financial Group, Inc. reflects challenges in the banking sector, particularly in net interest income and credit quality metrics. The company continues to focus on its operational efficiency and growth across its consumer and commercial banking segments.
How Citizens Financial Group, Inc. (CFG) Makes Money
Revenue Streams
Citizens Financial Group generates revenue primarily through two main streams: net interest income and noninterest income. As of September 30, 2024, CFG reported a total revenue of $1.9 billion, down from $2.0 billion in the same period of the previous year, reflecting a decrease of 5% year-over-year.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Interest Income | $1,369 | $1,522 | -10% |
| Noninterest Income | $532 | $492 | +8% |
| Total Revenue | $1,901 | $2,014 | -5% |
Net Interest Income
Net interest income is the largest revenue component for CFG, derived from the difference between interest earned on loans and investments and interest paid on deposits and borrowed funds. For the three months ended September 30, 2024, CFG reported net interest income of $1.369 billion, down from $1.522 billion in the same quarter of 2023. This decline can be attributed to a decrease in net interest margin, which fell to 2.76% from 3.03% year-over-year.
Noninterest Income
Noninterest income includes various fees and charges from services other than loan interest. For the third quarter of 2024, CFG's noninterest income was $532 million, an increase from $492 million in Q3 2023. Key contributors to this growth included:
- Capital Markets Fees: Increased to $94 million from $67 million.
- Card Fees: Increased to $93 million from $74 million.
- Wealth Management Fees: Grew to $76 million from $63 million.
- Mortgage Banking Fees: Decreased to $46 million from $69 million.
| Noninterest Income Component | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Service Charges and Fees | $109 | $105 |
| Capital Markets Fees | $94 | $67 |
| Card Fees | $93 | $74 |
| Wealth Fees | $76 | $63 |
| Mortgage Banking Fees | $46 | $69 |
| Total Noninterest Income | $532 | $492 |
Expenses
CFG's total noninterest expenses for the third quarter of 2024 were $1.259 billion, a slight decrease from $1.293 billion in Q3 2023. The efficiency ratio, which measures expenses as a percentage of revenue, was 66.2%, up from 64.2% year-over-year, indicating rising costs relative to revenue.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Salaries and Employee Benefits | $647 | $659 |
| Equipment and Software | $194 | $191 |
| Outside Services | $146 | $160 |
| Occupancy | $108 | $107 |
| Other Operating Expenses | $164 | $176 |
| Total Noninterest Expense | $1,259 | $1,293 |
Profitability Metrics
CFG reported a net income of $382 million for the third quarter of 2024, down from $430 million in the same period of 2023. The return on average common equity (ROE) was 6.12% for Q3 2024, compared to 7.50% for Q3 2023.
| Profitability Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $382 | $430 |
| Return on Average Common Equity | 6.12% | 7.50% |
Business Segments
CFG operates primarily through three segments: Consumer Banking, Commercial Banking, and Non-Core. As of September 30, 2024, the performance of these segments is as follows:
| Business Segment | Net Interest Income (in millions) | Noninterest Income (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| Consumer Banking | $1,156 | $285 | $1,441 |
| Commercial Banking | $478 | $207 | $685 |
| Non-Core | ($28) | $0 | ($28) |
Citizens Financial Group, Inc. (CFG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Citizens Financial Group, Inc. (CFG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Citizens Financial Group, Inc. (CFG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Citizens Financial Group, Inc. (CFG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.