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Jun 30, 2022

Citizens Q2 2022 Earnings Report

Citizens' Q2 2022 net income was reported as $364 million, and EPS as $0.67.

Key Takeaways

Citizens Financial Group reported strong results in the second quarter of 2022, with a net income of $364 million and EPS of $0.67. The acquisition of Investors Bancorp was completed on April 6, 2022. Underlying EPS was $1.14, and ROTCE was 15.5%.

Investors Bancorp (“ISBC”) acquisition completed on April 6, 2022

Underlying EPS of $1.14 and ROTCE of 15.5%

Underlying PPNR of $850 million, up 45% QoQ, includes ~$150 million contribution from the HSBC/ISBC transactions

Excellent credit performance with NCOs of 13 bps down 6 bps QoQ

Total Revenue
$2B
Previous year: $1.61B
+24.2%
EPS
$1.14
Previous year: $1.46
-21.9%
Efficiency Ratio
65%
Previous year: 62%
+4.8%
Underlying Efficiency Ratio
58%
Previous year: 61%
-4.9%
Return on Tangible Common Equity
9.1%
Previous year: 17.5%
-48.0%
Gross Profit
$1.97B
Previous year: $1.61B
+22.3%
Cash and Equivalents
$6.51B
Previous year: $12.6B
-48.5%
Total Assets
$227B
Previous year: $185B
+22.5%

Citizens

Citizens

Forward Guidance

The company looks forward to continuing its momentum in the second half of the year.

Positive Outlook

  • Strong results in the second quarter, which featured the completion of the Investors Bancorp acquisition
  • Navigated well through a period marked by higher than expected inflation
  • The Fed’s aggressiveness in raising short-term rates and tightening liquidity
  • Capital, liquidity and funding position remains strong - funding attractive loan growth and have raised our dividend
  • Fee businesses are proving to be diversified and resilient, and our credit metrics all remain very favorable