Citizens closes Q4 2024 with growth in income and strategic strength

ByInvestment Club

Overview

On January 17th, Citizens Financial Group delivered a good financial performance in Q4 2024, reflecting improved net income, robust growth in noninterest income, and disciplined expense management. The bank continues to focus on its strategic priorities, including Private Banking expansion and enhanced customer services.

The company closed Q4 2024 with a net income of $401m and an EPS of $0.83, while achieving a strong full-year net income of $1.5bn and EPS of $3.03, supported by a robust CET1 ratio of 10.8% and a disciplined loan-to-deposit ratio of 79.6%.

Q4 2024 vs. Q4 2023:

Revenue and profitability

  • Total revenue remained stable at $1.99bn, with noninterest income growing to $574m (+15% vs. 2023).
  • Net income more than doubled to $401m from $189m in Q4 2023, reflecting strong operational performance and lower provisions for credit losses.
  • EPS increased to $0.83 (+144% YoY).

Segment performance

  • Net Interest Income declined to $1.41bn (-5% YoY), impacted by lower average earning assets and narrower net interest margins.
  • Noninterest Income growth driven by Capital Markets fees (+39%), Card fees (+39%), and Mortgage Banking fees (+5%).

Expense management

  • Noninterest expenses decreased to $1.32bn (-18% YoY), reflecting lower other operating expenses and cost optimization initiatives.
  • The efficiency ratio improved significantly to 66.3%, down from 81.1% vs. 2023.

Credit quality

  • Net charge-offs of $189m remained stable at 53 basis points of average loans.
  • Nonaccrual loans increased to $1.66bn (+22% YoY), primarily in the commercial real estate sector.
  • The allowance for credit losses (ACL) to loans ratio rose slightly to 1.62%.

Full-Year 2024 performance:

Important annual results

  • Total revenue for 2024 reached $7.8bn (slightly down by 5% YoY), while net income totaled $1.5bn (-6% vs. 2023).
  • EPS for the year stood at $3.03, reflecting the bank’s stable earnings capacity.

Strategic highlights

  • The Private Bank expanded significantly, with year-end deposit balances reaching $7bn (+$1.4bn) and loan balances increasing to $3.1bn.
  • Improved liquidity profile, with a loan-to-deposit ratio (LDR) of 79.6%, supporting balance sheet resilience.

President and CEO Bruce Van Saun expressed satisfaction with the company’s performance for Q4 2024 and for the Full-Year 2024, emphasizing that targets were successfully met: “We were pleased to post solid performance in Q4 given strong execution of our key initiatives and nice improvement in our net interest margin. Good sequential growth in revenues delivered a return to positive operating leverage, and our balance sheet remains strong with CET1 at 10.8%, LDR below 80% and credit metrics all trending favorably. Our Private Bank hit year end balances of $7 billion in deposits, $3.1 billion in loans, and $4.7 billion AUM, tracking very well to targets. I would like to thank our colleague base for their fine effort and dedication in continuing to serve our customers well and in positioning us for a strong 2025 and bright future.”

For 2025, Citizens Financial Group expects moderate growth in net interest income, driven by continued Private Banking expansion and steady improvements in noninterest income streams. The bank remains committed to delivering operational efficiency and sustainable returns for shareholders.

Author: Ionuț-Adrian Lazar

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