CITIZENS FINANCIAL GROUP INCRI
For the period ended Dec 31, 2023. Filed Feb 16, 2024.
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FY2023 · Filed Feb 16, 2024
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Financial Performance
Key Highlights
Net income decreased $465 million, with earnings per diluted common share down $0.97 to $3.13 compared to 2022.
Results reflect notable items of $357 million or $0.75 per diluted common share, net of tax benefit, compared to $352 million or $0.74 per diluted common share, net of tax benefit, in 2022.
| Table 1: Notable Items | ||||||
|---|---|---|---|---|---|---|
| Year Ended December 31, 2023 | ||||||
| Less: notable items | ||||||
| (dollars in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | FDIC special assessment(3) | Provision | Underlying results (non-GAAP) |
| Noninterest expense | $5,507 | $104 | $177 | $225 | $— | $5,001 |
| Income tax expense | 422 | (28) | (63) | (58) | — | 571 |
| Year Ended December 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| Less: notable items | ||||||
| (dollars in millions) | Reported results (GAAP) | Integration related costs(1) | TOP and other(2) | FDIC special assessment | Provision(4) | Underlying results (non-GAAP) |
| Provision for credit losses | $474 | $— | $— | $— | $169 | $305 |
| Noninterest income | 2,009 | (31) | — | — | — | 2,040 |
| Noninterest expense | 4,892 | 213 | 49 | — | — | 4,630 |
| Income tax expense | 582 | (58) | (9) | — | (43) | 692 |
(1) Includes integration related costs associated with acquisitions for the years ended December 31, 2023 and 2022, and mark-to-market losses on loans acquired from Investors classified as LHFS for the year ended December 31, 2022.
(2)Includes our TOP transformational and revenue and efficiency initiatives for the years ended December 31, 2023 and 2022, a one-time deferred tax benefit for the year ended December 31, 2023 and income tax impacts related to legacy tax matters for the year ended December 31, 2022.
(3)Represents an industry-wide FDIC special assessment. For more information, see “Regulation and Supervision - Deposit Insurance” in Item 1.
(4) Includes the initial provision for credit losses tied to the HSBC transaction and Investors acquisition. As required by purchase accounting, a fair value mark for performing loans including both credit and interest rate components is recorded in addition to the provision for credit losses expense, thus the credit exposure has been “double counted.”
Net income available to common stockholders decreased $469 million to $1.5 billion compared to 2022.
On an Underlying basis, which excludes notable items, net income available to common stockholders of $1.8 billion compared to $2.3 billion in 2022.
On an Underlying basis, earnings per diluted common share of $3.88 compared to $4.84 in 2022.
Total revenue increased $203 million to $8.2 billion compared to 2022, driven by an increase of 4% in net interest income, including the impacts of the HSBC transaction and Investors acquisition.
The efficiency ratio of 67.0% compared to 61.0% in 2022.
On an Underlying basis, the efficiency ratio of 60.8% compared to 57.5% in 2022.
ROTCE of 10.9% compared to 13.9% in 2022.
On an Underlying basis, ROTCE of 13.5% compared to 16.4%.
Tangible book value per common share of $30.91 increased 11% from 2022.
For additional information regarding our financial performance, see “Results of Operations — 2023 compared with 2022” included in this report.
Citizens Financial Group, Inc. | 39
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