Company: CFG-PE
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000759944-25-000013
Chunk: 179

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-02-13
Form: 10-K
Item: Item 5
Chunk 179
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013 0.47 Total loans and leases$746 $142,704 0.52 %$609 $152,217 0.40 %

For the year ended December 31, 2024, net charge-offs increased $137 million and the net charge-off ratio increased 12 basis points compared to 2023. The increase in retail net charge-offs was driven by unsecured products in other retail, and education, partially offset by a decline in auto. The increase in commercial net charge-offs was primarily driven by the office segment of CRE, partially offset by a decline in commercial and industrial.

Commercial Loan Asset Quality

Our commercial portfolio consists of traditional commercial and industrial loans, commercial leases, and commercial real estate loans. We utilize internal risk ratings to monitor credit quality for commercial loans and leases. For more information on internal risk ratings see Note 6. 

Total commercial criticized balances of $7.1 billion at December 31, 2024 decreased $1.3 billion compared to December 31, 2023. 

Commercial and industrial criticized balances of $2.6 billion at December 31, 2024 decreased from $3.5 billion at December 31, 2023, primarily driven by declines in the healthcare and wholesale trade sectors. 

Commercial real estate criticized balances of $4.5 billion at December 31, 2024 decreased from $5.0 billion at December 31, 2023, attributable to the continued impacts of interest rates and return-to-office dynamics on the Office sector and the continued impacts of interest rates on the Multi-family sector. Approximately 96% of commercial real estate loans remain current on payments as of December 31, 2024.

For more information on the distribution of commercial loans by vintage date and regulatory classification rating, see Note 6.

Citizens Financial Group, Inc. | 52

Table 15: Commercial and Industrial Loans by Industry SectorDecember 31, 2024December 31, 2023(dollars in millions)Balance% of Total Loans and LeasesBalance% of Total Loans and LeasesIndustry sectorFinance and insuranceCapital call facilities$6,070 4 %$5,780 4 %Other finance and insurance6,446 5 6,021 4 Other manufacturing3,491 3 3,748 2 Technology2,818 2 3,351 2 Accommodation and food services2,599 2 2