PROVIDENCE – Citizens Financial Group Inc. Wednesday posted a net income of $334 million in the first quarter of 2024, a decline of 34.6% from the same period a year ago as a higher interest expense cost the company more than in the first quarter of 2023.
The Rhode Island-based financial institution declared diluted earnings of 64 cents per share, a decrease from $1 a year ago.
The results fell short of Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 75 cents per share.
The bank posted a quarterly revenue of $1.96 billion, down 7.9% from the $2.1 billion of revenue recorded in the first quarter of 2023. Those results also missed Wall Street forecasts as seven analysts surveyed by Zacks expected $1.97 billion.
And at the same time, Citizens reported a total interest expense of $1.2 billion in the first quarter, up 54% from the same period from a year ago.
“We are pleased to start the year with a solid first quarter, featuring a bounce back in capital markets fees, stable [net interest margin], further improvement in our [loan-to-deposit ratio], tight expense management and a strong capital and credit reserve position,” said CEO and Chairman Bruce Van Saun. “We are executing well on our key strategic initiatives. We remain comfortable with our full-year guidance and are excited by our medium-term prospects.”
Total assets of $220.4 billion marked a 1.1% decrease over the $223.3 billion recorded during the first quarter a year ago, including a 7.49 loss in total loans and leases from $154.7 billion to $143.1 billion.
Quarterly deposits stood at $176.4 billion, up from $172.1 billion – or about a 2.4% increase – over the first quarter a year ago, the company said.
But net interest margin, the difference between interest income generated on loans and the amount of interest the bank pays out for deposits, was 2.9%, falling 39 basis points year-over-year.
Citizens ranks 13th on the list of the largest banks in the U.S., according to Bankrate.