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CITIZENS FINANCIAL GROUP INCRI

For the period ended Sep 30, 2024. Filed Nov 4, 2024.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Nov 4, 2024

CFG$65.10+2.9%Stored close · as of Nov 9, 2026

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Business Operating Segments

We have three business operating segments: Consumer Banking, Commercial Banking, and Non-Core. See Note 16 for more information regarding our business operating segments.

The following tables present certain financial data of our business operating segments. Total business operating segment financial results differ from total consolidated financial results. These differences are reflected in Other non-segment operations.

Table 5: Selected Financial Data for Business Operating Segments
Three Months Ended September 30,
Consumer BankingCommercial BankingNon-Core
(dollars in millions)202420232024202320242023
Net interest income$1,156$1,067$478$560($28)($41)
Noninterest income285278207180——
Total revenue1,4411,345685740(28)(41)
Noninterest expense9169053003252330
Profit (loss) before credit losses525440385415(51)(71)
Net charge-offs846791671720
Income (loss) before income tax expense (benefit)441373294348(68)(91)
Income tax expense (benefit)114976388(17)(24)
Net income (loss)$327$276$231$260($51)($67)
Average Balances:
Total assets$75,392$72,964$68,092$74,997$8,389$13,113
Total loans and leases(1)69,02166,64164,97471,8988,35213,010
Deposits121,899117,97944,19047,221——
Interest-earning assets69,60867,27365,55072,2758,35213,010
Nine Months Ended September 30,
Consumer BankingCommercial BankingNon-Core
(dollars in millions)202420232024202320242023
Net interest income$3,369$3,101$1,486$1,741($96)($84)
Noninterest income820802676588——
Total revenue4,1893,9032,1622,329(96)(84)
Noninterest expense2,7342,6379289717495
Profit (loss) before credit losses1,4551,2661,2341,358(170)(179)
Net charge-offs2491982621854654
Income (loss) before income tax expense (benefit)1,2061,0689721,173(216)(233)
Income tax expense (benefit)311278223289(55)(61)
Net income (loss)$895$790$749$884($161)($172)
Average Balances:
Total assets$74,510$72,477$69,046$77,130$9,450$14,409
Total loans and leases(1)68,14666,17166,04873,9619,40814,332
Deposits120,803116,47744,76647,221——
Interest-earning assets68,74066,82366,50774,3509,40814,332

(1)Includes LHFS.

Consumer Banking

Net interest income increased $89 million and $268 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by higher net interest margin reflecting higher interest-earning asset yields and growth in average interest-earning assets. These increases were partially offset by higher funding costs.

Noninterest income increased $7 million and $18 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by wealth fees reflecting increased sales activity and higher asset management fees, higher credit card fees, and service charges and fees given higher overdraft and cash management fees. These increases were partially offset by mortgage banking fees reflecting lower production and servicing fees and a decline in MSR valuation, net of hedge impact.

Noninterest expense increased $97 million for the nine months ended September 30, 2024 compared to the same period in 2023, driven primarily by salaries and benefits reflecting our Private Bank build-out. Noninterest expense was stable for the three months ended September 30, 2024 compared to the same period in 2023.

Net charge-offs increased $17 million and $51 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven primarily by other retail and education.

Commercial Banking

Net interest income decreased $82 million and $255 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by lower net interest margin, a decline in average interest-earning assets and higher funding costs.

Noninterest income increased $27 million and $88 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by capital markets fees reflecting higher underwriting and M&A advisory fees. These increases were partially offset by foreign exchange and derivative products revenue given reduced client activity related to interest rate and commodities hedging. Higher loan syndication fees are also a driver during the nine-month period.

Noninterest expense decreased $25 million and $43 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven primarily by salaries and employee benefits reflecting lower headcount.

Net charge-offs increased $24 million and $77 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase during the three-month period was driven by the resolution of several nonperforming credits in commercial and industrial, while the increase during the nine-month period was primarily driven by the office segment of CRE, partially offset by a decline in commercial and industrial.

Non-Core

Net interest income decreased $12 million for the nine months ended September 30, 2024 compared to the same period in 2023, driven by the highest-cost implied marginal funding sources during 2024, including secured borrowings collateralized by auto loans and FHLB advances, and a decline in average interest-earning assets.

Average loans and leases decreased $4.7 billion and $4.9 billion for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by planned Non-Core portfolio runoff.

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