Citizens Financial Group Inc (CFG) Reports Q3 2023 Earnings: Net Income of $430 Million and EPS ...
Citizens Financial Group Inc (NYSE:CFG) reported a net income of $430 million and EPS of $0.85 for Q3 2023.
The underlying net income stood at $448 million and EPS at $0.89, including $(0.05) for Private Bank start-up investment and $(0.14) for the Non-Core portfolio.
The CET1 ratio was reported at 10.4%, and the company repurchased $250 million in common shares.
The company declared a quarterly common stock dividend of $0.42 per share, payable on November 15, 2023.
On October 18, 2023, Citizens Financial Group Inc (NYSE:CFG) released its third-quarter earnings report for the year 2023. The company reported a net income of $430 million and earnings per share (EPS) of $0.85. The underlying net income, which includes $(0.05) for Private Bank start-up investment and $(0.14) for the Non-Core portfolio, stood at $448 million and EPS at $0.89.
Financial Performance
The company's total revenue for the quarter was $2,014 million, a decrease from $2,094 million in Q2 2023 and $2,177 million in Q3 2022. The provision for credit losses was $172 million, slightly down from $176 million in the previous quarter. The net income decreased from $478 million in Q2 2023 and $636 million in Q3 2022.
The period-end loans and leases were $149.7 billion, a decrease from $151.3 billion in Q2 2023. The period-end deposits increased slightly to $178.2 billion from $177.7 billion in the previous quarter. The CET1 ratio improved to 10.4%, and the company repurchased $250 million in common shares.
CEO's Commentary
We continue to post solid results through a dynamic environment said Chairman and CEO Bruce Van Saun. Our spot deposit levels were up slightly relative to Q2 and broadly stable with a year ago, and our NII and NIM were in line with expectations. We increased our CET1 ratio to 10.4% while continuing to repurchase a modest amount of stock. The ramp of the Citizens Private Bank is making good progress, with several launch events over the next few weeks, and the Non-Core rundown is on track. Successful execution of these initiatives will meaningfully bolster EPS and returns. We will continue to play strong defense given the external environment, while advancing important strategic initiatives.
Dividend Announcement
Citizens Financial Group Inc also announced that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on November 15, 2023, to shareholders of record at the close of business on November 1, 2023.
Conclusion
Despite the challenging environment, Citizens Financial Group Inc has managed to post solid results for Q3 2023. The company's strategic initiatives, including the ramp-up of the Citizens Private Bank and the rundown of the Non-Core portfolio, are on track and expected to significantly boost EPS and returns in the future.
This article first appeared on GuruFocus.
