Home Economy Economic Activity Citizens Financial Group posts $382M profit in Q3, down 11% from a...

Citizens Financial Group posts $382M profit in Q3, down 11% from a year ago

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PBN Staff

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10/16/2024

Citizenupdate-1 — CITIZENS FINANCIAL GROUP Inc. says it had a third-quarter profit of $382 million, an 11% decline from $430 million a year ago due to a drop in net interest income. / COURTESY CITIZENS FINANCIAL GROUP INC.

PROVIDENCE – Citizens Financial Group Inc. on Wednesday reported a third-quarter profit of $382 million, an 11% decline from $430 million a year ago due to a drop in net interest income. The parent company for Rhode Island-based Citizens Bank reported a net income of 77 cents per share, down from 85 cents per share

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PROVIDENCE – Citizens Financial Group Inc. on Wednesday reported a third-quarter profit of $382 million, an 11% decline from $430 million a year ago due to a drop in net interest income. The parent company for Rhode Island-based Citizens Bank reported a net income of 77 cents per share, down from 85 cents per share the year prior. The bank posted revenue of $3.07 billion in the period, compared to $2.01 billion the year prior. Its adjusted revenue was $1.9 billion, falling short of Wall Street forecasts. Five analysts surveyed by Zacks Investment Research expected $1.94 billion. “We continue to be pleased with the strong execution of our key initiatives during the third quarter,” said Citizens Chairman and CEO Bruce Van Saun. “Our private bank reached $5.6 billion in deposits and $4.1 billion in [assets under management]. Our [New York City] metro region continues to achieve strong growth, and we are close to launching a top 10 program with $100 million plus impact. Our balance sheet remains strong across capital, liquidity, funding and loan loss reserves. While Q3 was impacted by the drag from forward-starting swaps that commenced in July, as well as some fees that pushed out to Q4, we project a strong fourth quarter and launch into 2025.” Net interest income in the third quarter fell 10% year over year to $1.4 billion, reflecting lower net interest margin and a 1% decline in average interest-earning assets. Net interest margin, the difference between interest income generated and the amount the bank pays out, fell 27 basis points from 3.03% to 2.76% due to an increase in swap and funding costs, and the impact of building liquidity was partly offset by higher interest-earning-asset yields and the benefit of non-core runoff. Total assets fell 2% year over year to $219 billion. This included a 5% decline in total loans and leases to $141.6 billion. Deposits stood at $175.2 billion, down 2% from a year ago, driven by a reduction in higher-cost Treasury deposits, as well as rate-driven migration in commercial and retail, largely offset by growth in private bank deposits of $5.4 billion. Noninterest expense fell 2% to $1.2 billion. This included a decrease in salaries and employee benefits of $11 million, primarily reflecting lower headcount, partly offset by hiring related to the private bank buildout; an increase of $7 million for equipment and software and a $12 million decrease in other operating expenses, primarily related to lower marketing-related costs. Citizens Financial Group's share price has risen 31% since the beginning of the year, and it has climbed 64% in the last 12 months. Material from The Associated Press was used in this report.