Hi, I’m Ando Money. Let’s dive into the Citizens Financial Group net worth and uncover key financial highlights for 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Citizens Financial Group |
| Full Name | Citizens Financial Group, Inc. |
| Traded as | NYSE: CFG |
| ISIN | US1746101054 |
| Founded | 1828 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Providence, Rhode Island, USA |
| Chief Executive Officer | Bruce Van Saun |
| Number of Employees | Approximately 17,000 |
| Market Cap | $15.45 billion |
| Total Assets | $222 billion |
| Total Equity | $23.761 billion |
| Revenue | $1.959 billion (Q1 2024) |
| Net Income | $334 million (Q1 2024) |
What is the Net Worth/Market Cap of Citizens Financial Group in 2024?
Citizens Financial Group has a market capitalization of $15.45 billion as of 2024. This positions it as a significant player in the banking sector, although smaller compared to some of its peers.
For instance, Capital One boasts a market cap of $49.94 billion, and The Bank of New York Mellon stands at $40.03 billion.
Despite being smaller, Citizens Financial Group remains a robust entity with a strong financial foundation, demonstrated by its total assets of $222 billion.
Citizens Financial Group Financial Performance Overview
Citizens has shown resilience and stability in its financial performance.
In the first quarter of 2024, it reported a net income of $334 million, translating to earnings per share (EPS) of $0.65. The underlying net income was $395 million, with an EPS of $0.79.
This stability is also reflected in its net interest margin (NIM), which held steady at 2.91%.
Detailed Analysis of Revenue Streams
Net Interest Income and Its Impact
Net interest income is a critical component of Citizens revenue.
In Q1 2024, it generated $1.442 billion in net interest income, a slight decrease from the previous quarter due to a 2% decline in average interest-earning assets.
However, the net interest margin remained stable at 2.91%, indicating effective management of interest expenses despite market challenges.
Non-Interest Income Sources
Citizens also benefits from various non-interest income sources, which showed significant growth in Q1 2024:
- Capital Markets Fees: Increased by 36% QoQ, driven by higher M&A advisory and bond underwriting fees.
- Card Fees: Rose by 23% QoQ, reflecting higher credit card usage and favorable vendor contract negotiations.
- Trust and Investment Services Fees: Stable, contributing to a diversified income stream.
Examination of Expenses and Cost Management
Managing expenses efficiently is crucial for maintaining profitability. Citizens non-interest expenses in Q1 2024 totaled $1.358 billion, a 16% decrease QoQ.
This reduction was largely due to lower other operating expenses and a significant decrease in outside services and occupancy costs.
Salaries and Employee Benefits
Salaries and benefits increased by 4% QoQ to $691 million, primarily due to seasonal payroll tax increases and compensation-related costs.
Equipment and Software Investments
Investment in technology continued with equipment and software expenses reaching $192 million, supporting digital banking enhancements and operational efficiency.
Asset and Liability Management
Loans and Leases
Period-end loans and leases stood at $143.2 billion, a 2% decrease QoQ.
This decline is attributed to strategic balance sheet optimization, including the run-off of the Non-Core portfolio and reduced commercial loan demand.
Deposit Trends and Management
Deposits are a critical funding source. Period-end deposits increased by $4.2 billion YoY to $176.4 billion.
Despite a slight QoQ decline due to seasonal commercial outflows, retail and Private Bank deposits showed robust growth.
Capital and Liquidity Position
Maintaining a strong capital and liquidity position is vital. Citizens reported a CET1 ratio of 10.6%, reflecting solid capital adequacy.
The loan-to-deposit ratio improved to 81%, indicating efficient liquidity management and reduced reliance on short-term borrowings.
Impact of Strategic Initiatives
Citizens continues to execute strategic initiatives aimed at long-term growth:
- Private Bank Start-Up Investment: Enhancing high-net-worth customer services.
- Expansion in NYC Metro Area: Increasing market presence and customer base.
- TOP 9 and Servicing Private Capital: Focused on optimizing operations and expanding service offerings.
Risk Management and Credit Quality
Effective risk management is essential for financial stability. In Q1 2024, the provision for credit losses was $171 million, unchanged from the previous quarter.
Nonaccrual loans increased to 1.02% of total loans, primarily due to challenges in the commercial real estate sector.
Shareholder Returns and Market Performance
Citizens remains committed to delivering shareholder value. It declared a quarterly dividend of $0.42 per share and repurchased $300 million worth of common shares in Q1 2024.
The tangible book value per common share stood at $30.19, reflecting strong shareholder equity.
Future Prospects and Guidance
Looking ahead, Citizens Financial Groups CEO, Bruce Van Saun, expressed confidence in the companys strategic direction.
The focus remains on executing key initiatives, managing expenses, and optimizing the balance sheet.
The outlook for the full year remains positive, supported by strong capital and liquidity positions and ongoing investments in growth areas.
FAQs about Citizens Financial Group
What is Citizens Financial Group?
Citizens Financial Group is one of the oldest and largest financial services firms in the U.S., founded in 1828 and headquartered in Providence, Rhode Island.
It offers retail and commercial banking services, operating around 1,200 branches and 3,200 ATMs across 11 states.
What services does Citizens offer?
Citizens provides various financial services, including deposit products, mortgage and home equity lending, student loans, auto financing, credit cards, and wealth management.
It also offers commercial services like treasury management, foreign exchange, and capital markets.
How does Citizens Financial Group support sustainability?
Citizens targets $50 billion in sustainable finance initiatives and holds favorable ESG ratings, reflecting strong environmental, social, and governance practices.
Where is Citizens headquartered?
The headquarters is in Providence, Rhode Island, where it was founded in 1828.
How many employees does Citizens Financial Group have?
Citizens employs over 10,000 people.
What is the historical significance of Citizens?
Citizens, established in 1828, is one of the oldest financial institutions in the U.S., showing significant growth over its long history.
How extensive is Citizens Financial Group’s branch network?
Citizens operates about 1,200 branches and 3,200 ATMs in 11 states.
What are the main business segments of Citizens?
The main segments are Consumer Banking, offering products like mortgages and credit cards, and Commercial Banking, providing services such as treasury management and debt syndication.
What is the mission of Citizens?
Citizens aims to deliver excellent financial services through innovative solutions, robust digital platforms, and personalized customer service, helping customers achieve their financial goals.
How does Citizens perform in terms of ESG (Environmental, Social, and Governance) criteria?
Citizens holds good ESG ratings, reflecting its strong performance in environmental stewardship, social responsibility, and corporate governance.
Conclusion
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