PROVIDENCE – California-based financial services firm Wedbush has increased its earnings-per-share estimates for Citizens Financial Group Inc., the parent company for Citizens Bank, according to a new report.
The report by Peter Winter, equity research analyst for Wedbush, ups the Rhode Island-based bank’s earnings per share 2 cents to $3.91 for 2020 and 6 cents to $4.17 for 2021, noting the “solid consumer loan growth” reported in Citizens’ recent earnings release.
In 2019, Citizens Financial Group’s stocks increased 37%, outperforming the regional bank index. However, it still trades at a 6% price-to-earnings ratio, which is lower than others analyzed.
In 2020, Winter predicted a 1-2% increase in the company’s net interest income (the difference between interest earned on assets such as loans, mortgages and securities and interest paid out to customer deposits), a 4-5.5% increase in fee income, and 1.75-2.75% increase in expenses.
Citizens was the only Rhode Island financial institution analyzed by Wedbush.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
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