Q1 2025 Citizens Financial Group Inc Earnings Call Transcript
Key Points
- Citizens Financial Group Inc (CFG) reported a net interest margin (NIM) expansion of 3 basis points to 2.90%, indicating improved profitability.
- The company achieved core loan growth of 1%, demonstrating resilience in its lending operations.
- CFG maintained a strong balance sheet with a CET1 ratio of 10.6% and an LDR of 77.5%, showcasing financial stability.
- The private bank segment showed excellent growth, with deposits reaching $8.7 billion and assets under management (AUM) at $5.2 billion.
- CFG executed a strategic sale of $1.9 billion in non-core student loans, which is expected to be accretive to NIM, EPS, and ROTCE.
- Market uncertainty and economic challenges have led to a slowdown in capital markets activity, impacting fee income.
- There is increased uncertainty in the macroeconomic environment due to policy decisions and potential tariffs, which could affect loan demand and deal activity.
- CFG's non-interest income decreased by 3.5% linked quarter, reflecting seasonal impacts and market volatility.
- The company faces potential risks from a slowing economy, which could lead to higher credit provisions and slower loan growth.
- CFG's commercial real estate portfolio, particularly in the office sector, remains a concern, although it is being actively managed.
Good morning, everyone, and welcome to the Citizens Financial Group first-quarter 2025 earnings conference. My name is Ivy, and I'll be your operator today. (Operator Instructions) As a reminder, this event is being recorded.
Now, I'll turn the call over to Kristin Silberberg, Head of Investor Relations. Kristin, you may begin.
Thank you, Ivy. Good morning, everyone, and thank you for joining us. First, this morning, our Chairman and CEO, Bruce Van Saun; and CFO, John Woods, will provide an overview of our first-quarter results. Brendan Coughlin, Head of Consumer Banking; and Don McCree, Head of Commercial Banking, are also here to provide additional color.
We will be referencing our first-quarter presentation located on our Investor Relations website. After the presentation, we will be happy to take questions.
Our comments today will include forward-looking statements which are subject to risks and uncertainties that may cause our results to differ
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