Citizens Financial Group Inc Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : My first question is for John. John, there has been a lot of feedback from investors on uncertainty over the NII trajectory for '24 in the environment of higher for longer. And I think you know where I'm going here. I think that investors are trying to sort of square the $11 billion, $12 billion increase in notional swaps, right? At a received fixed rate of [3.10%] in the second half of next year, and trying to square that in a higher for longer environment with some of the balance sheet optimization. So if you could just sort of take us through a little bit of the moving pieces and perhaps simplify it for the investors listening in terms of how that impacts your NII trough timing, what happens after you hit trough and are you still confident in what you said, I guess, a month ago and that you could exit 4Q '24 with a 3% NIM?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : And just to clarify, are you still confident that you could exit taking all out to account exit 4Q '24 have a NIM of about 3%. And based on sort of what you're telling us, it sounds like the -- if the Fed doesn't cut as the forward curve indicated, that would be the risk to that 3%.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Got it. And I'm going to step back after this because I think I'm taking up too much time. I just want to clarify I'm asking about 4Q '24. Are you talking about 4Q '23? I just wanted to make sure we were on the same page.