PROVIDENCE – Citizens Financial Group Inc. on Wednesday reported a third-quarter profit of $494 million, an increase of 29% from a year ago driven by stronger net interest income and overall improved financial performance.
The parent company of Rhode Island-based Citizens Bank reported earnings of $1.05 per share, compared to 77 cents per share in the same quarter last year.
Citizens posted revenue of $3.09 billion in the period, up slightly from $3.07 billion a year earlier. Its revenue net of interest expense was $2.12 billion, topping Wall Street expectations. Four analysts surveyed by Zacks Investment Research had forecast $2.1 billion.
“We are pleased to report very strong results for the third quarter, paced by excellent [net interest income] and fee growth, 3% sequential positive operating leverage, and credit results that continue to trend favorably,” said Citizens CEO and Chairman Bruce Van Saun. “Loan and deposit growth was solid, as the Private Bank delivered strong performance. A pick-up in market activity drove our highest Capital Markets revenues since fourth quarter of 2021, with pipelines remaining strong. Our 'Reimagine the Bank' initiative continues to take shape and will positively contribute to delivery of our medium-term targets. All in all, we feel we have good momentum and are very well-positioned for the medium-term.”
Net interest income climbed to $1.49 billion from $1.4 billion a year earlier, fueled by benefits from non-core runoff, terminated swaps and fixed-rate asset repricing.
The net interest margin – a key metric that assesses what the company earns on interest charged on loans minus the interest it pays for deposits – increased to 2.99% from 2.76%.
Meanwhile, total assets rose to $222 billion in the third quarter, up from $219 billion a year earlier.
Deposits this quarter were $180 billion compared to $175.2 billion in 2024, primarily reflecting growth in the private bank of $6.9 billion, partially offset by a $4.2 billion reduction in higher-cost Treasury brokered deposits.
Noninterest expense rose 7% year over year to $1.3 billion. The increase was driven by $62 million in higher salaries and employee benefits tied to private bank hiring, capital markets strength, and medical costs; a $5 million rise in equipment and software from tech investments; and a $17 million increase in outside services due to enterprise-wide initiatives, partially offset by lower deposit insurance.
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.
