Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Q1 2025 Earnings Presentation
40 slides from Citizens Financial's earnings presentation, Apr 16, 2025
Slide 1: 1Q25 Financial Results
1Q25 Financial Results April 16, 2025
Slide 2: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward- looking statement. These stat
Slide 3: 1Q25 GAAP summary
1Q25 GAAP summary Q/Q Y/Y $s in millions 1Q25 4Q24 1Q24 $/bps % $/bps % Net interest income $ 1,391 $ 1,412 $ 1,442 $ (21) (1) % $ (51) (4) % Noninterest income 544 574 517 (30) (5) 27 5 Total revenue 1,935 1,986 1,959 (51) (3) (24) (1) Noninterest Expense 1,314 1,316 1,358 (2) — (44) (3) Pre-provis
Slide 4: 1Q25 Underlying financial summary
1Q25 Underlying financial summary(1) Q/Q Y/Y $s in millions 1Q25 $/bps % $/bps % Net interest income $ 1,391 $ (21) (1)% $ (51) (4)% Noninterest income 544 (20) (4) 30 6 Total revenue 1,935 (41) (2) (21) (1) Noninterest expense 1,314 22 2 41 3 Pre-provision profit 621 (63) (9) (62) (9) Provision for
Slide 5: 1Q25 financial performance detail
1Q25 financial performance detail (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(1) Private Bank Core Non-Core(2) Total CFG Net interest income $1,336 $70.5 $1,406 $(15) $1,391 Noninterest income 530 13.6 544 — 544 Total revenue 1,866 84.1 1,950 (15) 1,935 Noninterest Expense
Slide 6: 1Q25 Overview
1Q25 Overview(1) Underlying PPNR drivers ■ EPS of $0.77; ROTCE of 9.6%; PPNR of $621 million, down 9% $s in millions QoQ on an Underlying basis; no notable items in 1Q25 1Q25 results 1Q25 QoQ – NII down 1.5%, driven by day count; NIM of 2.90%, up 3 bps in line with our NII $1,391 (1.5)% expectations
Slide 7: Net interest income
Net interest income NII and NIM Linked Quarter $s in millions, except earning assets ■ NII down 1.5%, reflects day count impact of $28MM, slightly lower interest-earning assets, partially offset by higher NIM $200.1B $198.5B $197.2B $196.6B – NIM of 2.90%, up 3 bps QoQ, given the benefit of lower $1
Slide 8: Noninterest income
Noninterest income(1) Noninterest income details Linked Quarter $ ■ Underlying noninterest income decreased 3.5%, reflecting the $s in millions 1Q25 4Q24 1Q24 Q/Q Y/Y following key business drivers: Service charges and fees $ 109 $ 109 $ 96 $ — $ 13 – Capital markets fees decreased $21 million, prim
Slide 9: Noninterest expense
Noninterest expense(1) Noninterest expense details Linked Quarter $ $s in millions 1Q25 4Q24 1Q24 Q/Q Y/Y ■ Underlying noninterest expense of $1.3 billion, up 1.7% Salaries & employee benefits $ 696 $ 657 $ 674 $ 39 $ 22 – Salaries and benefits increased $39 million, primarily reflecting a seasonal
Slide 10: Loans and leases
Loans and leases Period-end loans and leases Linked Quarter $s in billions ■ Period-end loans down 1.1%; Core loans up 1% – Private Bank growth of $0.5 billion $143.2 $141.8 $141.6 $139.2 $137.6 – Commercial* up $0.4 billion, reflecting higher C&I line utilization – Retail* up $0.2 billion, driven b
Slide 11: Deposit performance and cost of funds
Deposit performance and cost of funds Period-end deposits Linked Quarter $s in billions ■ Period-end deposits up 2%, driven by Private Bank and Consumer, partially offset by a decrease in Commercial given $176.4 $176.4 $175.2 $174.8 $177.6 seasonality – Private Bank deposits of $8.7 billion increase
Slide 12: Highly diversified and retail-oriented deposit base
Highly diversified and retail-oriented deposit base $177.6B Period-end deposits Business mix As of 3/31/25 Product mix Private Bank/ Private Wealth 6% Business Citizens Banking Time Access 12% 13% NIB 6% 21% Commercial Savings 24% 10% Citizens Access Savings 5% Money Market Checking 32% Branch Treas
Slide 13: Credit quality overview
Credit quality overview Credit provision expense; Nonaccrual loans $s in millions net charge-offs $s in millions 0.58% 157% 151% 140% 0.52% 0.54% 0.53% 136% 136% 0.50% 0.51% $192 $189 $200 $171 $181 $182 $184 $172 $162 $1,687 $1,664 $153 $1,527 $1,582 $1,469 $175 $616 $647 $588 $599 $578 1Q24 2Q24 3
Slide 14: Allowance for credit losses
Allowance for credit losses Allowance for credit losses CRE General Office reserve $s in millions 4Q24 1Q25 Total Balance ($B) $ 2.93 $ 2.86 1.61% 1.63% 1.61% 1.62% 1.61% ACL ratio ACL ($MM; % coverage) $ 364 12.4 % $ 351 12.3 % $2,308 $2,306 $2,286 $2,259 $2,212 Cumulative NCOs* ($MM) $ 433 $ 464 1
Slide 15: Strong capital position
Strong capital position Highlights $s in billions (period-end) 1Q24 2Q24 3Q24 4Q24 1Q25 ■ 1Q25 CET1 ratio of 10.64% Basel III basis(1) – 9.1% CET1 ratio adjusted for AOCI opt-out removal Common equity tier 1 capital $ 18.1 $ 18.1 $ 17.9 $ 17.9 $ 17.8 ■ TBV/share of $33.97, up 5.0% QoQ, reflects the
Slide 16: Non-Core portfolio - accelerating runoff with education loan sale
Non-Core portfolio - accelerating runoff with education loan sale $s in billions Non-Core portfolio(1) Quarterly 2025 $4.2B ex. HFS $5.8 $3.6B ex. HFS $1.6 $4.6 $3.0B ex. HFS $1.0 $3.5 $0.2 $2.6 $0.2 $0.5 $2.9 $2.4 $0.2 $2.0 $0.2 $1.5 $1.5 $0.1 $0.7 $4.0 $3.4 $2.8 $2.4 $1.4 $0.3 $0.1 $0.6 1Q25 2Q25
Slide 17: Building a premier Private Bank
Building a premier Private Bank As of 3/31/25 Deposits Financial profitability $s in billions $8.7 Total deposit cost ■ Tracking well towards target for ~$12B deposits, ~$7B $7.0 ~2.2% loans and ~$11B AUM by end of 2025 ■ Expect 5%+ earnings contribution to total CFG in 2025 $2.4 ■ ~41% Noninterest-
Slide 18: 2Q25 outlook vs. 1Q25
2Q25 outlook vs. 1Q25 1Q25 2Q25 outlook ■ Up ~3% Net interest income $1,391MM ■ NIM up ~5 bps ■ Earning assets stable ■ Up mid-to-high single digits; uncertainty Noninterest income $544MM from macro environment on Capital Markets Noninterest expense $1,314MM ■ Broadly stable Net charge-offs $200MM;
Slide 19: Citizens is an attractive investment opportunity
Citizens is an attractive investment opportunity Citizens continues to have a series of unique initiatives that will lead to relative medium-term outperformance ■ Transformed Consumer Bank with further deposit growth and Wealth revenue potential; well positioned in NYC Metro to gain market share; pe
Slide 20: Appendix
Appendix ■ Medium-term NIM outlook ■ Interest Rate Risk Management ■ AOCI accretion ■ Credit
Slide 21: Meaningful NIM improvement over the medium term
Meaningful NIM improvement over the medium term Chart not to scale Medium-term NIM target 3.25 to 3.50% Factors supporting 3.25 to 3.50% NIM Fed funds at or above ■ Swaps and Non-Core runoff 4% favor top end of 3.50% range or above ■ Stable to improving balance sheet mix ■ Fed funds terminal range o
Slide 22: Interest rate risk management
Interest rate risk management Commentary Fixed/floating-rate mix As of 3/31/25 ■ Slightly asset sensitive; approximately +/- 1% impact Loans Securities to NII over the next 12 months with a gradual +/- 100 bps change in rates relative to the forward $138B $42B curve 15% ■ Receive-fixed cash flow swa
Slide 23: AOCI accretion
AOCI accretion Projected accretion to TCE and CET1 adjusted for AOCI opt-out removal(1) $s in billions Accretes to CET1(2) TCE CET1(2) 3/31/2025 $(0.6) $(0.3) $(2.1) $(2.9) $(2.4) 12/31/2025 $(0.2) $(0.3) $(1.8) $(2.3) $(2.1) 12/31/2026 $(0.3) $(1.6) $(1.9) $(1.9) ~36% ~21% Burn-off by YE2026 (3) Sw
Slide 24: $70.5B Commercial credit portfolio
$70.5B Commercial credit portfolio Diverse and granular portfolio Commercial portfolio risk ratings(3) $s in billions $s in billions % of Balances total CFG C&I $72.8 $69.8 $70.5 Finance and Insurance B- and lower 7% 7% 7% Capital call facilities $ 6.5 5% B+ to B 20% 18% 17% Other Finance and Insura
Slide 25: Commercial Real Estate - General Office portfolio well diversified
Commercial Real Estate - General Office portfolio well diversified(1) $2.9B General Office class & location Commentary As of 3/31/25 ■ General Office portfolio is well diversified geographically ■ 68% suburban, generally performing better than CBD properties CBD Class A Suburban Class B 15% 27% ■ 92
Slide 26: $67.1B Retail credit portfolio
$67.1B Retail credit portfolio Retail portfolio(1) High quality, diverse portfolio As of 3/31/25 Other retail Super-prime/prime* Secured Homeowners Education - ~95% ~78% ~2/3 7% refinance of retail of retail of unsecured 8% Education - portfolio > 680 portfolio retail borrowers(3) in school 5% Resid
Slide 27: Allocation of allowance for credit losses by product type
Allocation of allowance for credit losses by product type March 31, 2025 December 31, 2024 Loans and Loans and Allowance Coverage Allowance Coverage $s in millions Leases Leases Commercial and industrial(1) $ 43,781 $629 1.44 % $ 42,551 $592 1.39 % Commercial real estate 26,727 683 2.56 27,225 703 2
Slide 28: Delinquency by product type
Delinquency by product type March 31, 2025 (%) December 31, 2024 (%) Days Past Due and Accruing Days Past Due and Accruing Current 30-59 60-89 90+ Nonaccrual Current 30-59 60-89 90+ Nonaccrual Commercial and industrial 99.17 % 0.13 % 0.03 % 0.02 % 0.65 % 99.28 % 0.08 % 0.05 % 0.02 % 0.57 % Commercia
Slide 29: Notable items
Notable items(1) There are no notable items in first quarter 2025, as our intention going forward is to limit these to those items of greatest significance. Fourth quarter 2024 and first quarter 2024 results reflect notable items primarily related to integration costs associated with recent acquisit
Slide 30: Notes
Notes Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results. Where there is
Slide 31: Notes continued
Notes continued Notes on slide 25 - Commercial Real Estate - General Office portfolio well diversified 1) See general note c). Notes on slide 26 - $67.1B Retail credit portfolio 1) See general note c). 2) Reflects period end balances. 3) Estimated based on 2024 data. Source: Citizens customer data,
Slide 32: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q25 Change 1Q25 4Q24 1Q24 4Q24 1Q24 $ % $ % Noninterest income, Underlying: Noninterest income (GAAP) A $544 $574 $517 ($30) (5%) $27 5% Less: Notable items — 10 3 (10) (100) (3)
Slide 33: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q25 Change 1Q25 4Q24 1Q24 4Q24 1Q24 $/bps % $/bps % Operating leverage: Total revenue (GAAP) C $1,935 $1,986 $1,959 ($51) (2.65%) ($24) (1.23%) Less: Noninterest expense (GAAP) E
Slide 34: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations QUARTERLY TRENDS $s in millions, except share, per share and ratio data 1Q25 Change 1Q25 4Q24 1Q24 4Q24 1Q24 $/bps % $/bps % Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) Q
Slide 35: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations QUARTERLY TRENDS $s in millions, except share, per share and ratio data 1Q25 Change 1Q25 4Q24 1Q24 4Q24 1Q24 $/bps % $/bps % Net interest income and net interest margin on an FTE basis: Net interest income (annualized) (GAAP) AA $5,637 $5,620 $5,796 $1
Slide 36: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 3Q24 2Q24 Noninterest income, Underlying: Noninterest income (GAAP) A $532 $553 Less: Notable items (2) 4 Noninterest income, Underlying (non-GAAP) B $534 $549 Total revenue, Under
Slide 37: Non-GAAP reconciliations - CET1 adjusted for AOCI opt-out removal
Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal $s in millions, except share, per share and ratio data 1Q25 4Q24 CET1 Ratio adjusted for AOCI opt-out removal CET1 capital $ 17,751 $ 17,900 Less: AFS securities - AOCI 1,337 1,613 HTM securities - AOCI(1) 737 7
Slide 38: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q25 Change 1Q25 4Q24 1Q24 4Q24 1Q24 $/bps % $/bps % Total Retail loans - at period-end $67,127 $69,427 $70,365 ($2,300) (3%) ($3,238) (5%) Less: Non-core retail loans - at period-
Slide 39: Non-GAAP reconciliations excluding Private Bank & Non-Core
Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core $s in millions, except share, per share and ratio data 1Q25 Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) $340 Add: Notable items, net of income tax benefit
Slide 40: Citizens Financial Group, Inc.
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Citizens Financial Group — Q1 2025 Earnings Presentation on 6ix