PROVIDENCE – Citizens Financial Group Inc.'s annual profit fell 6.2% to $1.51 billion in 2024 compared with a year earlier.
The parent company of Citizens Bank reported on Wednesday that it posted revenue – interest income and noninterest income – of $12.36 billion for the full year, up 1.3% from $12.19 billion for 2023. Meanwhile, interest and noninterest expense climbed from $9.5 billion to $9.8 billion, a 3.3% increase.
Earnings per diluted share were $3.03 in 2024, a 4% decrease from $3.13 a year earlier, the bank said.
In the fourth quarter of 2024, the company saw a $401 million profit, up 112% from the $189 million in net income posted in the fourth quarter of 2023 – in part because the bank lowered its noninterest expense from $1.6 billion in the quarter a year ago to $1.3 billion in the fourth quarter of 2024.
Earnings per diluted share for the quarter were 83 cents, an increase from 34 cents for the same period a year earlier.
Citizens reported $3 billion in interest and noninterest revenue for the three months that ended Dec. 31, a slight decrease from $3.1 billion in the year-ago period.
Quarterly net interest increased 3.1% to $1.4 billion from the same quarter a year ago, reflecting a higher net interest margin and slightly lower interest-earning assets. Quarterly net interest margin – a key metric that indicates the difference between the interest income generated and the amount the company pays out – rose 10 basis points from the fourth quarter of 2023, to 2.87%.
Total assets as of Dec. 31 stood at $217.52 billion from $221.96 billion a year earlier, a 2% decline. The $139.2 billion in loans marked a 5% decrease.
Year-end deposits were down 1% from a year ago to $174.8 billion given a reduction in higher-cost Treasury deposits and lower commercial balances, largely offset by growth in private bank deposits of $5.8 billion.
The bank also lowered its loan-loss provision – money set aside in anticipation of loan defaults – for the fourth quarter to $162 million, down from $171 million in the same period of 2023.
“We were pleased to post solid performance in Q4 given strong execution of our key initiatives and nice improvement in our net interest margin,” said Chairman and CEO Bruce Van Saun. “I would like to thank our colleague base for their fine effort and dedication in continuing to serve our customers well and in positioning us for a strong 2025 and bright future.”
Citizens also announced Friday that its board of directors declared a quarterly common stock dividend of 42 cents per share. The dividend is payable on Feb. 14 to shareholders of record at the close of business on Jan. 31.