Citizens Financial Group: Strong Capital Position and Risk Management Strategies
2024-01-20
Citizens Financial Group recently held its Q4 2023 earnings call on January 17, 2024. The call was attended by key participants including Kristin Silberberg (EVP, IR), Bruce Van Saun (Chairman and CEO), John Woods (CFO), Brendan Coughlin (Head of Consumer Banking), and Don McCree (Head of Commercial Banking).
During the call, the company reported its earnings results for Q4 2023. They announced an EPS of $0.85, surpassing expectations by $0.01. However, their revenue for the quarter stood at $1.99B, falling short of expectations by $9.72M. Despite this, Citizens Financial Group remains in a strong capital position, boasting a CET1 ratio of 10.6%, CET1 adjusted for AOCI of approximately 9%, and a tangible common equity ratio of 6.7%.
One of the key topics discussed during the call was the company's approach to managing lending risk appetite. Citizens Financial Group emphasized their disciplined approach and their focus on cultivating deep relationships that yield stronger relative returns. Additionally, they highlighted their non-core strategy, which involves running off loans to free up capital for more lucrative opportunities.
The company also addressed their liquidity position, mentioning their investments in initiatives such as the private bank buildout and the New York City Metro initiative. The private bank team achieved $1.2 billion in deposits shortly after its launch in late October. Furthermore, Citizens Financial Group stated that their credit outlook is in line with expectations, with losses being absorbed in net charge-offs and credit quality remaining robust.
Other topics covered during the earnings call included the company's initiatives, the underlying ROTCE for the full year, actions taken in Q4 to set the stage for expense growth in 2024, the outlook for NII, and the key priorities for the company in 2024.
Overall, Citizens Financial Group's Q4 2023 earnings call provided valuable insights into the company's financial performance, capital position, risk management strategies, and future priorities.