Home Economy Citizens Financial Group’s Q1 profit increases 11%

Citizens Financial Group’s Q1 profit increases 11%

04/16/2025

citizens — CITIZENS FINANCIAL Group, The parent company for Rhode Island-based Citizens Bank, reported a first-quarter profit of $373 million. / PBN FILE PHOTO

PROVIDENCE – Citizens Financial Group Inc. on Wednesday reported a net income of $373 million in the first quarter of 2025, an 11% increase from the $334 million profit it posted a year ago. The parent company for Rhode Island-based Citizens Bank declared diluted earnings of 77 cents per share, up from 11 cents from

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PROVIDENCE – Citizens Financial Group Inc. on Wednesday reported a net income of $373 million in the first quarter of 2025, an 11% increase from the $334 million profit it posted a year ago. The parent company for Rhode Island-based Citizens Bank declared diluted earnings of 77 cents per share, up from 11 cents from the first quarter of 2024. The results surpassed Wall Street's expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 75 cents per share. The bank posted quarterly revenue of $1.93 billion in the period, down 1.2% from the $1.96 billion of revenue recorded in the first quarter of 2024. At the same time, Citizens reported a total interest expense of $961 million in the first quarter, down 22% from the same period from a year ago when it posted $1.2 billion. Net interest income of $1.4 billion decreased 4% from the first quarter of 2024, primarily reflecting a 3% decline in average interest-earning assets. Net interest margin of 2.90% decreased 1 basis point, as the impact of variable-rate asset repricing was largely offset by the benefit of lower funding costs, Non-Core runoff and fixed-rate asset repricing. Citizens Financial Group Chairman and CEO Bruce Van Saun said that the bank's quarterly net income growth was driven by signing an agreement to sell off its student loan portfolio, "accelerating non-core rundown and freeing capital and liquidity." Saun expressed confidence that the bank will succeed despite noting that the second quarter of 2025 has seen "heightened uncertainty given policy decisions in Washington." "Our balance sheet remains robust," he said. "We believe we will be able to successfully navigate through the challenges given our strong business positioning and our financial and operating discipline.” Noninterest income increased $30 million, or 6%, year over year due to a $13 million increase in service fees, an $18 million decrease in capital market fees, a $13 million jump in wealth fees, mortgage banking fees increasing $10 million and foreign exchange and derivative products revenue increasing $3 million. Noninterest expenses grew 3% year over year to $1.3 billion. driven by a $22 million increase in salaries and employee benefits. Meanwhile, total assets for the first quarter of 2025 stood at $220 billion, keeping pace with the $220 billion reported in the same period last year. Quarterly deposits stood at $177.6 billion, a slight increase from the $176.4 billion reported for the first quarter a year ago, the company said. This reflected a $1.7 billion of growth in the private bank and a $1.4 billion increase in consumer deposits, partially offset by a decline in commercial given seasonality. Noninterest bearing demand deposits increased $636 million, largely reflecting growth in the Private Bank partially offset by seasonal decline in commercial. 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% this quarter, also nearly identical to the same time last year. Citizens Financial Group shares have decreased 18% since the beginning of the year. The stock has increased slightly more than 9% in the last 12 months. (Material from The Associated Press was used in this report.) Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.