**Cash and due from banks** was notably lower in Q3 2024 at **$979 million** due to several contributing factors. The documents indicate that the decline may primarily be attributed to **liquidity management practices**—where funds are reallocated to other interest-earning assets or to support operational needs—and a drop in total deposits, which decreased by **$1,164 million (1%)**. In addition, the reduction in short-term borrowed funds from **$505 million** as of December 31, 2023, to **$15 million** as of September 30, 2024, alongside **share repurchases** of **$325 million** and **dividend payments** of **$191 million**, also likely contributed to the reduced cash balances. However, the documents do not explicitly state the reasons for this decline, so these are inferred contributing factors.  **[0000759944-24-000170_q324financialsupplement.htm:6]** **[0000759944-24-000176_cfg-20240930.htm:46]** **[0000759944-24-000170_q324financialsupplement.htm:8]** **[0000759944-24-000170_a3q24earningsrelease.htm:9]** 

Why was Cash and due from banks so low in Q3 2024?

The decline in total assets in Q4 2024 was driven by several factors. **Loans and Leases** experienced a significant decrease of **$6,756 million** compared to Q4 2023, and both **Cash and Due from Banks** and **Interest-Bearing Cash and Due from Banks** saw reductions of **$385 million** and **$642 million** respectively. Additional declines in **Debt Securities Held to Maturity** (down **$585 million**) and **Derivative Assets** (down **$32 million**) further contributed to the overall reduction, although increases in **Other Assets** partially offset these declines. These shifts reflect strategic balance sheet adjustments and market conditions impacting the bank's liquidity and lending operations.  **[0000759944-25-000005_q424financialsupplement.htm:6]** **[0000759944-25-000005_q424financialsupplement.htm:8]** 

What contributed to the decline in Total Assets in Q4 2024?

In the first quarter of 2024, **long-term borrowed funds** dropped mainly due to a **significant decrease in FHLB advances** (down by **$9.7 billion**) combined with the **run-off of the Non-Core portfolio**. Although the company issued new debt—increasing senior debt by **$1.2 billion** and collateralized borrowings on auto loans by **$837 million**—these issuances did not fully offset the reduction in FHLB advances, leading to an overall drop in period-end borrowed funds by **$6.1 billion** compared to Q1 2023.  **[0000759944-24-000060_a1q24earningsrelease.htm:8]** **[0000759944-24-000063_a1q24earningspostearningsr.htm:8]** 

Why did Long-term borrowed funds drop in Q1 2024?

The drastic drop in **short-term borrowed funds** in **Q1 2024** was primarily driven by a combination of factors. The company issued **senior debt** and **auto-collateralized borrowings**, with increases of **$1.2 billion** and **$837 million** respectively, which provided proceeds that were used to reduce short-term borrowing. Additionally, the runoff of the **Non-Core portfolio** and the optimization of its funding mix contributed to a sharp decline in the need for short-term borrowings—a decrease of **$496 million** compared to **Q4 2023** and **$1.0 billion** compared to **Q1 2023**.  **[0000759944-24-000060_a1q24earningsrelease.htm:8]** 

What explains the drastic drop in Short-term borrowed funds in Q1 2024?

ff5184f4d0916bdb09790785b78f75142373ab3e572d6bfc2410ad48e3dc80cd

Citizens Financial Group’s operating cash flow was notably low in Q3 2024, with a net change of only **$130 million**. This was largely due to several factors: a **substantial decrease in net income** (from **$1,419 million** to **$1,108 million** over the comparable nine‐month periods), a much smaller increase in other assets (from **$732 million** to only **$14 million**), and a reversal in other liabilities (from a **$718 million increase** to a **$549 million decrease**). Additionally, a slight rise in the **provision for credit losses** (from **$516 million** to **$525 million**) also contributed to the lower cash flow generation in Q3 2024.  **[0000759944-24-000176_cfg-20240930.htm:50]** 

Why was operating cash flow so low in Q3 2024?

The documents indicate that the **Capital expenditures, net** decreased from **$(52) million** in Q1 2023  **[0000759944-23-000084_cfg-20230331.htm:43]**  to **$(10) million** in Q1 2024.  **[0000759944-24-000090_cfg-20240331.htm:45]**  However, they do not provide a detailed explanation for this marked reduction—it could be due to lower investments in property, equipment, or technology, but no specific drivers are identified in the available information.  **[0000759944-24-000090_cfg-20240331.htm:45]** 

What drove the markedly lower capital expenditures in Q1 2024?

d4481fb09b2573d00936f197804d4658c33a3072f1684f309d68ffad365ecd23

In Q1 2024, Citizens Financial’s Basic EPS dropped to approximately **$0.65** compared to **$1.00** in Q1 2023 due to several factors. A **12% decrease** in net interest income—stemming from a lower net interest margin and a 1% decline in average interest-earning assets—played a major role.  **[0000759944-24-000060_a1q24earningsrelease.htm:4]**  Additionally, the provision for credit losses increased slightly (from **$168 million** to **$171 million**), and noninterest expenses rose by **3%**, further denting net income.  **[0000759944-24-000060_a1q24earningsrelease.htm:0]** **[0000759944-24-000060_a1q24earningsrelease.htm:2]**  Notably, integration-related costs, TOP items, and an FDIC special assessment collectively reduced EPS by **$0.14**.  **[0000759944-24-000060_a1q24earningspresentatio.htm:18]** 

Why was Basic EPS so low in Q1 2024?

The drop in net income in Q1 2024 was primarily driven by several factors. **Total revenue decreased by $169 million due to a 12% decline in net interest income, attributed to a lower net interest margin and a 1% drop in average interest-earning assets**.  **[0000759944-24-000090_cfg-20240331.htm:7]** **[0000759944-24-000090_cfg-20240331.htm:12]**  Additionally, **noninterest expense increased by $62 million (a 5% rise), largely due to higher salaries, employee benefits, and increased equipment and software expenses**.  **[0000759944-24-000090_cfg-20240331.htm:12]**  There were also **notable items amounting to $82 million pre-tax, including integration-related costs, TOP and other items, and an FDIC special assessment** that contributed negatively to the net income.  **[0000759944-24-000060_a1q24earningsrelease.htm:0]**  Overall, these factors combined led to the significant decrease in net income compared to the same period in 2023.

What caused the drop in net income in Q1 2024?

The surge in **pre-tax income** in Q4 2024 was primarily driven by a combination of higher noninterest income and lower noninterest expense. **Noninterest income** increased due to higher fees from capital markets (particularly loan syndication and M&A fees), card fees, and wealth fees, while **noninterest expense** was reduced significantly by lower operating costs such as reduced fraud losses and FDIC deposit insurance costs. Additionally, the provision for credit losses remained relatively stable, contributing to the overall improvement.  **[0000759944-25-000005_a4q24earningspresentatio.htm:4]** **[0000759944-25-000005_a4q24earningsrelease.htm:7]** 

What factors contributed to the surge in pre-tax income in Q4 2024?

Citizens Financial Group's Q4 2024 Basic EPS rebounded significantly due to **multiple factors**. There was **revenue growth** driven by a **3% increase in net interest income** and a **6% increase in fee income**. Additionally, the **net interest margin expanded by 10 basis points to 2.87%**, and the company experienced **positive operating leverage of approximately 50 basis points**. Favorable credit trends, with stable net charge-offs at **53 basis points** and a slight increase in the allowance for credit losses to **1.62%**, also contributed. Moreover, the company repurchased **$225 million** in common shares, which helped boost the EPS by reducing the number of shares outstanding.  **[0000759944-25-000005_a4q24earningsrelease.htm:0]** **[CFG_3412798_0]** 

Why did Basic EPS significantly rebound in Q4 2024?

ce1a37261a8dbf252078ab5ea62c4b8592002a1ed88c298b33beea320ccfb319

Interest and fees on loans and leases (USD, millions)

Interest and fees on loans held for sale (USD, millions)

Investment securities (USD, millions)

Interest-bearing deposits in banks (USD, millions)

Total interest income (USD, millions)

Deposits Interest Expense (USD, millions)

Short-term borrowed funds Interest Expense (USD, millions)

Long-term borrowed funds Interest Expense (USD, millions)

Total interest expense (USD, millions)

Net interest income (USD, millions)

Provision (benefit) for credit losses (USD, millions)

Service charges and fees (USD, millions)

Capital markets fees (USD, millions)

Card fees (USD, millions)

Wealth fees (USD, millions)

Mortgage banking fees (USD, millions)

Foreign exchange and derivative products (USD, millions)

Letter of credit and loan fees (USD, millions)

Securities gains, net (USD, millions)

Other income (USD, millions)

Total noninterest income (USD, millions)

Salaries and employee benefits (USD, millions)

Equipment and software (USD, millions)

Outside services (USD, millions)

Occupancy (USD, millions)

Other operating expense (USD, millions)

Total noninterest expense (USD, millions)

Income before income tax expense (USD, millions)

Income tax expense (USD, millions)

NET INCOME (USD, millions)

Net income available to common stockholders (USD, millions)

c9f2e9be771e1b89c08cc417c182a9350b7be29026badcc38da21aaaadb73ab7

Cash and due from banks (USD, millions)

Interest-bearing cash and due from banks (USD, millions)

Debt securities available for sale, at fair value (USD, millions)

Debt securities held to maturity (USD, millions)

Loans held for sale (USD, millions)

Loans and leases (USD, millions)

Allowance for loan and lease losses (USD, millions)

Net loans and leases (USD, millions)

Derivative assets (USD, millions)

Premises and equipment, net (USD, millions)

Bank-owned life insurance (USD, millions)

Goodwill (USD, millions)

Other intangible assets (USD, millions)

Other assets (USD, millions)

TOTAL ASSETS (USD, millions)

Noninterest-bearing deposits (USD, millions)

Interest-bearing deposits (USD, millions)

Total deposits (USD, millions)

Short-term borrowed funds (USD, millions)

Derivative liabilities (USD, millions)

Long-term borrowed funds (USD, millions)

Other liabilities (USD, millions)

TOTAL LIABILITIES (USD, millions)

Preferred Stock (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Treasury stock, at cost (USD, millions)

Accumulated other comprehensive income (loss) (USD, millions)

TOTAL STOCKHOLDERS’ EQUITY (USD, millions)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (USD, millions)

bc7d000ee37ea60f01bbbfde85f1759e10ddd54fe98941a41a477135e64edd03

Net Income (USD, millions)

Net change in loans held for sale (USD, millions)

Depreciation, amortization and accretion (USD, millions)

Deferred income tax expense (benefit) (USD, millions)

Share-based compensation (USD, millions)

Net gain on sale of assets (USD, millions)

Net (increase) decrease in other assets (USD, millions)

Net increase (decrease) in other liabilities (USD, millions)

Net change due to operating activities (USD, millions)

Purchases of debt securities available for sale (USD, millions)

Proceeds from maturities and paydowns of debt securities available for sale (USD, millions)

Proceeds from sales of debt securities available for sale (USD, millions)

Proceeds from maturities and paydowns of debt securities held to maturity (USD, millions)

Net (increase) decrease in interest-bearing deposits in banks (USD, millions)

Purchases of loans (USD, millions)

Sales of loans (USD, millions)

Net (increase) decrease in loans and leases (USD, millions)

Capital expenditures, net (USD, millions)

Other Investing Activities (USD, millions)

Net change due to investing activities (USD, millions)

Net increase (decrease) in deposits (USD, millions)

Net increase (decrease) in short-term borrowed funds (USD, millions)

Proceeds from issuance of long-term borrowed funds (USD, millions)

Repayments of long-term borrowed funds (USD, millions)

Treasury stock purchased (USD, millions)

Dividends paid to common stockholders (USD, millions)

Dividends paid to preferred stockholders (USD, millions)

Other Financing Activities (USD, millions)

Net change due to financing activities (USD, millions)

Net change in cash and cash equivalents (2) (USD, millions)

Cash and cash equivalents at beginning of period (2) (USD, millions)

Cash and cash equivalents at end of period (2) (USD, millions)

e9719d1d52a00ce280d3b1d424c37b37d5f64e11faaa1751c1476f4481332009

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

eca14ca6593a9bc2c529a6b8d71c79db2161f2fe24dd6c1c203ae03efb2f1ede

1f1a1ff54de55205ab6e9f4a8514122826417c1999b1172b551b39d71f2980ac

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

474860d64bad79d821be3e59506823fc89a2b9ef751b0eef36dcf6045c81a080

4ff4aa0770efe9f94b31946f6bab9dc4f126432e51b3506b6df920bd145e0819

Brooklyn

Manhattan

Other NYC

New York - ex. NYC

New Jersey

Pennsylvania

California

Texas

Massachusetts

Florida

Other Southeast

Other

Total Revenue

5a39067762a7affc0e311c2598b2fcd693e79137d0ecca566cfbbd0f93d6d2cd

Consumer Banking

- Net Interest Income

- Noninterest Income

- Total Revenue

Commercial Banking

Non-Core

Consolidated Total Revenue

ea09faa7587ed0993ca45e5835ce65b9ee275a9f4d2fc5620f9389d849c8b6d2

CITIZENS FINANCIAL GROUP INC/RI (CFG)

Financials