PROVIDENCE – Citizens Financial Group Inc. on Thursday reported first-quarter profit grew 6.7 percent to $223 million, or 41 cents per diluted share, compared with $209 million, or 38 cents per diluted share, in the first quarter of last year.
Bruce Van Saun, chairman and CEO, lauded the bank’s performance in a statement, pointing to Citizens’ positive operating leverage, which grew 3 percent on a year-over-year basis.
“Our first quarter results reflect solid momentum,” Van Saun said.
Total revenue for the first quarter ending March 31 grew 4.7 percent to $1.34 billion compared with $1.29 billion during the same period last year. Although, noninterest income fell 4.9 percent to $330 million largely because of a drop in mortgage banking fees, card fees, foreign exchange and letter of credit fees along with a reduction in bank-owned life insurance and other income, according to results. Total interest income grew 8.2 percent to $1 billion, fueled largely by interest and fees on loans and leases and loans held for sale.
The Providence-based bank realized strong growth in loans and leases, which increased 6.9 percent to $101 billion. The growth was fueled largely by a 9.1 percent increase in commercial loans and leases which totaled $47 billion compared with $44 billion in the same period last year.
At the same time, nonperforming loans and leases fell 5 percent to $1.1 billion while net charge-offs grew to $83 million compared with $54 million in 2015, representing a 10 basis point increase to 0.33 percent of total loans and leases. Allowance for loan and leases losses grew 1.8 percent to $1.2 billion, or 113.4 percent of nonperforming loans and leases.
The bank’s net-interest margin grew to 2.86 percent compared with 2.77 percent in the same period last year. Total assets grew 2.6 percent to $140.1 billion while return on average total assets remained flat at 0.6 percent.
Deposits grew 3.6 percent to $102.6 billion.
The bank’s board of directors declared a quarterly common stock dividend of 12 cents per common share for shareholders of record at close of business on May 4.
“As we look forward, we remain focused on delivering a differentiated customer experience and on executing our strategic initiatives to further enhance shareholder value,” Van Saun said.
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