Citizens Financial (NYSE:CFG) Group reported Q3 2023 revenues of $2.01 billion and an EPS of $0.85 on Wednesday, marking a year-over-year decrease of 7.5% and a negative surprise of -1.43% and -7.61% against the Zacks Consensus Estimate for revenue and EPS respectively.
The key metrics released included a 64.2% Efficiency Ratio, a Net Interest Margin of 3%, and Average Balances - Interest-earning assets that amounted to $199.59 billion. The Return on average total assets was reported at 0.8%, slightly lower than the 1.01% reported in the last twelve months according to InvestingPro Data. The Book value per common share stood at $44.75, while the Tangible book value per common share was reported as $27.73.
Further figures revealed Total net charge-offs (recoveries) of $153 million and Net charge-offs as a percentage of average loans and leases at 0.4%. The company's Tier 1 Leverage Ratio was 9.4%, with a Common Equity Tier 1 Capital Ratio of 10.4%, and Tier 1 Capital Ratio standing at 11.5%.
However, the Return on average common equity was lower than the estimated 8.1%. Over the past month, the shares of the company have seen a return of -1.3%, which is in line with the 1 Month Price Total Return of -1.09% according to InvestingPro Data.
A notable highlight from the InvestingPro Tips is that the management has been aggressively buying back shares, indicating their confidence in the company's future. Another key point is that the company has maintained dividend payments for 10 consecutive years, which is reflected in the Dividend Yield of 6.2% as reported by InvestingPro Data. This is significant for investors looking for steady income.
Despite 12 analysts revising their earnings downwards for the upcoming period, the company is trading at a low P/E ratio relative to near-term earnings growth, which is reflected in the P/E Ratio of 5.77 and PEG Ratio of 0.45 as per InvestingPro Data. This suggests that Citizens Financial Group could be undervalued.
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