Citizens Financial Group (CFG) Up 10.6% Since Last Earnings Report: Can It Continue?

Zacks11-16

It has been about a month since the last earnings report for Citizens Financial Group (CFG). Shares have added about 10.6% in that time frame, outperforming the S&P 500. Will the recent positive trend...

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Shares have added about 10.6% in that time frame, outperforming the S&P 500.\nWill the recent positive trend...</p>\n\n<a href=\"https://finance.yahoo.com/news/citizens-financial-group-cfg-10-163016821.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Citizens Financial Group (CFG) Up 10.6% Since Last Earnings Report: Can It Continue?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCitizens Financial Group (CFG) Up 10.6% Since Last Earnings Report: Can It Continue?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-16 00:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/citizens-financial-group-cfg-10-163016821.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It has been about a month since the last earnings report for Citizens Financial Group (CFG). Shares have added about 10.6% in that time frame, outperforming the S&P 500.\nWill the recent positive trend...</p>\n\n<a href=\"https://finance.yahoo.com/news/citizens-financial-group-cfg-10-163016821.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CFG","symbol_name":"Citizens Financial Group","start_time":0,"source_url":"https://finance.yahoo.com/news/citizens-financial-group-cfg-10-163016821.html","article_id":"2483588036","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/apbC75v0joJeGGZArvqIvw--~B/aD02NzU7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/105b2acef7bf0873f24b78932b1fdc3c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483588036","pubTimestamp":1731688216,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"It has been about a month since the last earnings report for Citizens Financial Group . Shares have added about 10.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Citizens Financial Group due for a pullback?Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Citizens Financial Q3 Earnings Match Estimates, Revenues Fall Y/Y. Citizens Financial has reported a third-quarter 2024 adjusted earnings per share  of 79 cents, which matched the Zacks Consensus Estimate. The bottom line declined from 85 cents reported in the year-ago quarter.Capital market fees of $94 million surged 40.3% year over year, driven by growth in bond underwriting and merger and acquisition advisory fees, partially offset by lower loan syndication fees.Citizens Financial’s NII decreased 10.1% year o","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CFG":"Citizens Financial Group"},"translate_title":"公民金融集团(CFG)自上次收益报告以来上涨10.6%：还能继续吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CFG":1},"content_text":"It has been about a month since the last earnings report for Citizens Financial Group (CFG). Shares have added about 10.6% in that time frame, outperforming the S&P 500.\nWill the recent positive trend continue leading up to its next earnings release, or is Citizens Financial Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. \nCitizens Financial Q3 Earnings Match Estimates, Revenues Fall Y/Y\nCitizens Financial has reported a third-quarter 2024 adjusted earnings per share (EPS) of 79 cents, which matched the Zacks Consensus Estimate. The bottom line declined from 85 cents reported in the year-ago quarter.\nCapital market fees of $94 million surged 40.3% year over year, driven by growth in bond underwriting and merger and acquisition advisory fees, partially offset by lower loan syndication fees. \nResults benefited from a rise in non-interest income, along with reduced expenses.  Additionally, a strong capital position was a positive factor. However, lower net interest income (NII) and declining loan and deposit balances were major headwinds. \nNet income (GAAP basis) was $382 million, down 11.2% from the prior-year quarter.\nCFG’s Revenues and Expenses Fall\nTotal revenues in the second quarter were $1.9 billion, which missed the Zacks Consensus Estimate of $1.94 billion. Also, the top line declined 5.6% year over year.\nCitizens Financial’s NII decreased 10.1% year over year to $1.37 billion due to a lower net interest margin and a decline in average interest-earning assets.\nThe net interest margin (NIM) shrunk 27 basis points to 2.76% on the back of increased funding and swap costs and the impact of building liquidity, partially offset by higher yields on interest-earning assets and the benefit of non-core runoff.\nThe non-interest income increased 8.1% to $532 million. The improvement resulted from increased service charges and fees, capital market fees, card fees and wealth fees, securities gain and other income.\nNon-interest expenses decreased 2.6% to $1.26 billion. The decline was due to a fall in salaries and employee benefits costs, outside services costs and lower other operating expenses.\nThe efficiency ratio of 66.2% in the third quarter increased from 64.2% in the year-ago quarter. A rise in the efficiency ratio reflects lower profitability.\nCFG’s Loan & Deposit Balances Decline\nAs of Sept. 30, 2024, period-end total loans and leases were $141.6 billion, down marginally from the prior-year quarter. Total deposits decreased marginally to $175.2 billion. Our estimates for total loans and deposits were $150.8 billion and $184.6 billion, respectively.\nCFG’s Credit Quality Deteriorates\nAs of Sept. 30, 2024, CFG’s provision for credit losses was $172 million, which remained stable from the year-ago quarter.\nFurther, net charge-offs jumped 25.5% to $192 million.\nNon-accrual loans and leases were up 28.2% to $1.69 billion.\nCFG’s Capital Position Improves\nAs of Sept.30, 2024, the tier 1 leverage ratio was 9.4%, which remained unchanged from the prior-year quarter.\nThe common equity tier 1 capital ratio was 10.6% compared with 10.4% at the end of the prior-year quarter. Further, the total capital ratio was 13.9%, up from 13.4% reported in the prior-year quarter.\nCFG’s Share Repurchase Update\nIn the third quarter of 2024, CFG repurchased $325 million of common shares and paid $191 million in common dividends.\nOutlook\nFourth- Quarter 2024 (Underlying Basis)Management expects NII to be up 1.5-2.5% compared with the third quarter’s reported figure of $1.37 million.Non-interest income is anticipated to be up mid to high single digit compared with $534 million in the third quarter.Adjusted non-interest expenses are projected to be up 2% compared with the third-quarter 2024 level of $1.25 billion.Net charge-offs are targeted to be broadly stable, compared to $192 million in the previous quarter.The CET1 ratio is envisioned to be broadly stable compared to 10.6% in the third quarter of 2024.\nThe tax rate is expected to be around 20% compared with the third-quarter 2024 tax rate of 18.7%.\n2024 Outlook (Underlying Basis)\nManagement expects NII to be down 6-9% from $6.2 billion in 2023.NIM is expected in the range of 2.80-2.85%, down from 3.10% recorded in 2023.Period-end loans are expected to be up 3-5%. Average loans are projected to be down 2-3%.Average earnings assets are forecasted to be slightly up.Non-interest income is anticipated to be up 6-9% from $1.9 billion reported in 2023.Adjusted non-interest expenses are projected to be up 1-1.5% from $5 billion in 2023.Net charge-offs are suggested to be around 50 bps, indicating a rise from 40 bps recorded in the prior year.The CET1 ratio is envisioned to be around 10.5%.The tax rate is expected to be around 21-22%.Medium-Term TargetManagement expects the CET1 ratio to converge to the 10.0-10.5% range.The company targets NIM in the range of 3.25-3.40%.The efficiency ratio is projected to be around the mid-50’s.The company is expected to reach a dividend payout ratio of approximately 35-40%.Management expects a return on average tangible common shareholders’ equity to be around 16-18%. The execution of the target will be supported by the company’s strategic initiatives as well as the NII tailwinds expected from 2025 to 2027.\nHow Have Estimates Been Moving Since Then?\nIn the past month, investors have witnessed a downward trend in estimates revision.\nVGM Scores\nCurrently, Citizens Financial Group has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.\nOverall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.\nOutlook\nEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Citizens Financial Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nCitizens Financial Group, Inc. (CFG) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483588036"}