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Dec 31, 2023
Citizens Q4 2023 Earnings Report
Citizens reported mixed results with a decrease in net income but demonstrated strength in capital ratios and liquidity.
Key Takeaways
Citizens Financial Group reported a net income of $189 million and EPS of $0.34 for Q4 2023. Underlying net income was $426 million and EPS was $0.85. The CET1 ratio stood at 10.6%.
Underlying EPS was $0.85 and ROTCE was 11.8%.
Underlying PPNR was $721 million with NII down 2% QoQ, fees up 2% QoQ, and expenses stable QoQ.
The provision for credit losses was $171 million and the ACL/loans ratio increased to 1.59%.
The CET1 ratio was strong at 10.6% and the period-end LDR improved to 82%.
Citizens
Citizens
Forward Guidance
Citizens Financial Group has not provided specific forward guidance in this earnings report. However, comments from the Chairman and CEO suggest optimism for medium-term growth and enhanced returns, driven by key strategic initiatives and a strong balance sheet.
Positive Outlook
- Strong balance sheet with CET1 at 10.6% and LDR at 82%.
- Enhanced liquidity profile exceeding Category 1 bank LCR requirements.
- Reduced pressure on deposit costs and NIM.
- Fees beginning to rebound.
- Expenses remain well controlled.
Challenges Ahead
- There are no explicit negatives in the forward guidance. The report focuses on the positives and strategic initiatives.
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