Updated May 26 at 6:26pm

Sign up to receive Providence Business News' newsletters
and breaking news alerts.  

banking

Citizens back in black for 2011

Posted:

PROVIDENCE – Citizens Financial Group Inc.’s largest division, RBS Citizens N.A., the holding company for most Citizens and Charter One banks, posted a $345.13 million profit in 2011. The figure is a stark contrast to the $39.17 million in losses it reported in 2010 and the $600.40 million loss in 2009.

According to figures provided by the Federal Deposit Insurance Corp., Citizens’ assets stabilized in 2011. RBS Citizens’ total assets stood at $106.94 billion at the end of the year, as opposed to $107.84 billion a year earlier and $116.92 billion at the end of 2009.

The bank said it had $4.71 billion in interest and non-interest income for 2011, a 5.6 percent reduction from $4.99 billion the year before. Total deposits, however, increased 8 percent to $75.69 billion in 2011, compared with the $69.81 billion reported in 2010.

Helping to offset that drop in revenue in past years and build back the bank’s foundation was a reduction in money set aside to help absorb bad loans. Citizens put $1.47 billion into its loan-loss provision in 2010 but reduced that allotment to $815 million last year, an indicator of the improving credit quality in the bank’s loan portfolio.

Charge-offs, loans and leases that the bank has deemed uncollectable totaled $1.26 billion in 2011, a 32 percent improvement from the $1.85 billion reported in 2010. The bank recovered $193.75 million of these funds last year, a figure less than the $209.89 million it recovered in 2010.

Citizens Financial Group is owned by the British financial giant Royal Bank of Scotland Plc – which is 84 percent owned by the United Kingdom government. On Thursday, the bank reported a bigger-than-expected loss of $3.2 billion for 2011, partly because of its exposure to Greek government bonds.

citizens financial group, rbs citizens, citizens bank, fdic, federal deposit insurance corp., royal bank of scotland, rbs, net income, profit, decline in loan loss provision

Comments

No comments on this story | Please log in to comment by clicking here
Please log in or register to add your comment
Latest News