PROVIDENCE – Citizens Financial Group Inc. has authorized a stock repurchase program up to $1.3 billion, the bank organization announced Friday.
The buyback program will occur over a year, starting July 1. The buyback program is 25% larger than the previous year, the bank said. The 2018 capital program repurchased $1 billion of common shares through the second quarter of 2019. That program has been completed.
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“We are pleased to report that our board has approved a new share repurchase authorization which represents a sizeable increase over our 2018 plan,” said Bruce Van Saun, Citizens chairman and CEO. “Additionally, we continue to target a medium-term dividend payout ratio in the 35 to 40% range. The authorization and our targeted capital return plans reflect our robust capital levels relative to peers, the strength of our franchise, and confidence in our ability to deliver improving financial performance and attractive returns to shareholders, while continuing to invest across our businesses.”
In the first quarter of this year, Citizens reported a net income of $439 million, a total revenue of $2 billion and it paid dividends of 32 cents per share.
The company also said Friday that its 2019 Bank Holding Company-run credit loss rate of 4.1% on its loan portfolio improved by 50 basis points compared with 2018. The company conducted the test internally using guidelines from the Federal Reserve’s DFAST Severely Adverse Scenario – part of what is commonly known as the bank stress test.
Chris Bergenheim is the PBN web editor. you may reach him at Bergenheim@PBN.com.
