NYSE$CFG

Citizens Financial Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Citizens Financial Group demonstrated strength and diversity in its business model, with a decrease in mortgage revenue partially offset by record results in Capital Markets and Wealth.

Citizens Financial Group reported a net income of $648 million and EPS of $1.44 for the second quarter of 2021. The company's underlying ROTCE was 17.7% and underlying EPS was $1.46.

  • Underlying ROTCE of 17.7% and underlying EPS of $1.46 reflects diversity of fee businesses and excellent credit results
  • Underlying PPNR of $629 million reflects lower Mortgage revenue, record results in Capital Markets and Wealth, net interest income up 1%, and well-controlled expenses.
  • Credit provision benefit of $213 million driven by macroeconomic improvement and strong credit performance
  • Strong capital position with CET1 at 10.3%

Headline financials

Total Revenue

$1.61B

Previous: $1.75B-8.1%
EPS (adj)

$1.46

Previous: $0.53+175.5%
Efficiency Ratio

62.0%

Previous: 55.9%+10.9%
Underlying Efficiency

61.0%

Previous: 54.9%+11.1%
Return on Tangible Common Equity

17.5%

No prior period
Underlying ROTCE

17.7%

No prior period
Free Cash Flow

$648M

Previous: $253M+156.1%
Net Income

$648M

Previous: $253M+156.1%
Operating Income

$870M

Previous: $632M+37.7%
Gross Profit

$1.4B

Previous: $1.29B+8.6%
Cash & Equivalents

$1.44B

Previous: $1.56B-8.1%
Total Assets

$185B

Previous: $180B+2.9%

Revenue & EPS history

Citizens · Revenue · Quarterly

$1.61B

Q2 2021-8.1%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Citizens · $1.5B total across 2 segments · Q4 2019

  • Consumer Banking
    $864M
  • Commercial Banking
    $636M

Forward guidance

The company expects loan growth to accelerate in the second half of the year as the economy continues to grow and excess liquidity is redeployed. They have commenced work on a TOP 7 program, with details to be announced later this year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.0%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+3.3%

Avg return

30 days after

69%

35 / 51 earnings

Positive

+18.1%

Q1 2020

Best reaction

-8.2%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%+0.2%-6.7%
Q4 2025+7.1%+0.2%-6.7%
Q3 2025-0.2%-2.9%-0.2%
Q2 2025+1.4%-0.3%+6.7%
Q1 2025-1.8%-4.5%+15.8%
Q3 2024-3.1%-5.6%+7.6%
Q2 2024+2.9%+4.5%+4.1%
Q1 2024+1.5%+6.6%+14.7%
Q4 2023+1.3%+6.3%+1.2%
Q3 2023-8.2%-13.0%+2.5%
Q2 2023+7.2%+10.4%-4.8%
Q1 2023-4.5%-6.0%-14.0%
Q4 2022-2.0%-1.1%+2.6%
Q3 2022-2.8%+6.6%+9.4%
Q2 2022+1.1%+0.0%+6.9%
Q1 2022+7.5%+1.5%-8.6%
Q4 2021-6.3%-8.2%-4.3%
Q3 2021+0.7%+2.5%+1.0%
Q2 2021+6.8%+5.9%+1.7%
Q1 2021-0.2%-1.4%+13.0%
Q4 2020-4.7%-6.8%+4.1%
Q3 2020-4.5%-1.3%+13.8%
Q2 2020-3.1%+0.2%+1.8%
Q1 2020+18.1%+13.9%+15.9%
Q4 2019+1.3%+1.4%-2.3%
Q3 2019+1.6%+2.8%+8.5%
Q2 2019+5.7%+8.7%-6.4%
Q1 2019+2.0%+3.1%-0.7%
Q4 2018+3.8%+3.1%+8.3%
Q3 2018+2.4%+0.3%+3.8%
Q2 2018-0.3%-1.8%+0.1%
Q1 2018+1.6%+1.6%-0.7%
Q4 2017+4.5%+3.5%+0.4%
Q3 2017+2.9%+1.6%+2.0%
Q2 2017+0.6%-0.2%-6.2%
Q1 2017+2.0%+6.5%+1.0%
Q4 2016+3.3%+8.0%+9.0%
Q3 2016+3.1%+5.2%+25.1%
Q2 2016+2.3%+5.5%+10.6%
Q1 2016+1.1%
Q4 2015-7.2%
Q3 2015+3.2%
Q2 2014+2.0%
Q2 2015-3.3%
Q1 2014+0.5%
Q1 2015+2.4%
Q4 2013+0.2%
Q4 2014+1.9%
Q3 2013+0.8%
Q4 2012+0.8%
Q3 2014+0.4%
Q2 2013
Q1 2013

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro