PROVIDENCE – Citizens Bank’s holding company reported a third-quarter profit of $449 million in a filing Friday, marking a 1.3% increase from $443 million in the third quarter of last year.
Earnings per share in the third quarter were 97 cents, compared with 91 cents a share from a year earlier, according to Providence-based Citizens Financial Group Inc.
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Total revenue in the quarter was $1.64 billion, a 4.7% increase from $1.56 billion a year earlier.
Interest income totaled $1.54 billion, a 4% increase from the third quarter 2018. That consisted mainly of interest and fees on loans and leases of $1.36 billion, a 5% increase from a year earlier.
Interest income, minus interest expense, such as interest paid out on deposits was $1.14 billion, flat from a year earlier.
Noninterest income totaled $493 million in the third quarter, a 19% increase from $416 million in the third quarter last year. That consisted mainly of $128 million from service charges and fees, a 2% decrease from a year earlier, and mortgage banking fees of $117 million, a 139% increase from a year earlier.
Assets as of Sept. 30 totaled $164.4 billion, a $5.8 billion or 4% increase from a year earlier. Assets included total loans and leases valued at $117.9 billion, a 3% increase from a year prior.
Commercial loans and leases as of Sept. 30 totaled $56.7 billion, a 2% increase from a year earlier.
Retail loans as of Sept. 30 – including residential mortgages, home equity lines of credit, and auto loans – totaled $61.1 billion, a 3% increase from a year earlier.
Nonperforming loans in the third quarter totaled $793 million or 0.67% of all loans and leases. That was a decrease from $832 million or 0.73% from third quarter 2018.
Deposits as of Sept. 30 totaled $124.7 billion, a 7% increase from a year earlier.
Salaries and employee benefit expense totaled $508 million in the third quarter, a 9% increase from a year earlier.
Citizens’ net interest margin in the third quarter decreased 10 basis points to 3.10% from 3.20% a year earlier. The margin is the difference between what Citizens generated in interest income and what Citizens paid out to its lenders, relative to the amount of its assets.
“We are pleased to report a strong quarterly result in spite of a challenging rate environment,” Citizens Bank Chairman and CEO Bruce Van Saun said in a statement.
“Our mortgage business provided a good offset to the pressure on net interest margin, and we feel we did a good job on managing down deposit costs,” he said. “In addition, we are making solid progress on our ‘Top 6’ program and related strategic initiatives, which bodes well for 2020 and beyond.”
Citizens’ Top 6 program focuses on the company’s six priorities, which are: position consumer banking to deliver improved capabilities and profitability, continue the momentum in commercial banking; grow the bank’s balance sheet, tightly manage the company’s expense base, embed risk management throughout the organization, and develop a high-performing and customer-centric organization and culture.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
