NYSE$CFG

Citizens Financial Group Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Citizens' Q2 2022 net income was reported as $364 million, and EPS as $0.67.

Citizens Financial Group reported strong results in the second quarter of 2022, with a net income of $364 million and EPS of $0.67. The acquisition of Investors Bancorp was completed on April 6, 2022. Underlying EPS was $1.14, and ROTCE was 15.5%.

  • Investors Bancorp (“ISBC”) acquisition completed on April 6, 2022
  • Underlying EPS of $1.14 and ROTCE of 15.5%
  • Underlying PPNR of $850 million, up 45% QoQ, includes ~$150 million contribution from the HSBC/ISBC transactions
  • Excellent credit performance with NCOs of 13 bps down 6 bps QoQ

Headline financials

Total Revenue

$2B

Previous: $1.61B+24.2%
EPS (adj)

$1.14

Previous: $1.46-21.9%
Efficiency Ratio

65.0%

Previous: 62.0%+4.8%
Underlying Efficiency

58.0%

Previous: 61.0%-4.9%
Return on Tangible Common Equity

9.1%

Previous: 17.5%-48.0%
Underlying ROTCE

15.5%

Previous: 17.7%-12.4%
Net Interest Margin

3.0%

No prior period
Free Cash Flow

$364M

Previous: $648M-43.8%
Net Income

$364M

Previous: $648M-43.8%
Operating Income

$1.23B

Previous: $870M+40.9%
Gross Profit

$2B

Previous: $1.4B+43.2%
Cash & Equivalents

$1.93B

Previous: $1.44B+34.1%
Total Assets

$227B

Previous: $185B+22.5%

Revenue & EPS history

Citizens · Revenue · Quarterly

$2B

Q2 2022+24.2%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

The company looks forward to continuing its momentum in the second half of the year.

Tailwinds

  • Strong results in the second quarter, which featured the completion of the Investors Bancorp acquisition
  • Navigated well through a period marked by higher than expected inflation
  • The Fed’s aggressiveness in raising short-term rates and tightening liquidity
  • Capital, liquidity and funding position remains strong - funding attractive loan growth and have raised our dividend
  • Fee businesses are proving to be diversified and resilient, and our credit metrics all remain very favorable

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 2022

Historical avgQ2 2022

+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

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