PROVIDENCE – Citizens Financial Group Inc. saw its profits increase 21% compared with a year ago, ending the first quarter with $511 million in earnings, the company reported on Wednesday.
The Rhode Island-based financial institution declared diluted earnings of $1 per share, an increase from 93 cents year-over-year.
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The results fell short of Wall Street predictions. Analysts surveyed by Zacks Investment Research Inc. had expected Citizens to produce diluted earnings of $1.11 per share.
“The first quarter brought unexpected challenges in the environment, but we proved adaptable and resilient, successfully navigating through them and delivering solid financial results,“ said CEO and Chairman Bruce Van Saun. “Our capital, liquidity and funding position remains strong, and our deposits were broadly stable over the month of March.”
The bank posted a quarterly revenue of $2.89 billion, outpacing 2022’s first-quarter results of $1.65 billion.
Total assets of $223.3 billion marked a nearly 30% increase over the $165 billion recorded during the first quarter a year ago, including a 16% jump in total loans and leases from $131.3 billion to $154.7 billion.
“We remain focused on our deposit initiatives, taking care of our customers and protecting key investments while trimming expenses where we can,” Van Saun said. “We are hopeful that market turmoil continues to subside, and we expect that we will be able to deliver attractive mid-teens ROTCE for the year.”
Quarterly deposits stood at $174.4 billion, up from $155.1 billion – or about a 12% increase – over the first quarter a year ago, the company stated.
Net interest margin, the difference between interest income generated on loans and the amount of interest the bank pays out for deposits, was 3.3%, rising 55 basis points quarter-over-quarter.
Noninterest income fell by 2.6% in the first quarter of 2023, from $498 million to $485 million. Noninterest expenses climbed slightly from $1.1 million in the first quarter of 2022 million to $1.3 million this quarter.
Citizens also announced Wednesday that its board of directors had declared a quarterly common stock dividend of 42 cents per share.
Citizens Financial Group shares have fallen 23% since the beginning of the year. The stock has dropped 26% in the past 12 months.
Citizens ranks 13th on the list of the largest banks in the U.S., according to Bankrate.
The Associated Press contributed to this report.
Contact PBN Staff writer Sam Wood at Wood@PBN.com
