Citizens reports $865M in profit in 2014

CITIZENS FINANCIAL GROUP CEO BRUCE VAN SAUN, in discussing fourth quarter earnings, said 2014 was a pivotal year for the company. Citizens reported profit of $865 million in 2014.  / PBN FILE PHOTO/TRACY JENKINS
CITIZENS FINANCIAL GROUP CEO BRUCE VAN SAUN, in discussing fourth quarter earnings, said 2014 was a pivotal year for the company. Citizens reported profit of $865 million in 2014. / PBN FILE PHOTO/TRACY JENKINS

PROVIDENCE – In what its CEO calls a “pivotal year,” Citizens Financial Group Inc. Monday reported net income of $865 million in 2014, an improvement on a $3.4 billion loss in 2013, which was fueled by a $4.1 billion after-tax goodwill impairment charge. Citizens reported earnings of $1.55 per diluted share for the year.
The bank reported fourth-quarter net income of $197 million, representing a year-over-year increase of 29 percent. The bank’s earnings per share increased to 36 cents per diluted share from 27 cents a year earlier.
“2014 was a pivotal year for Citizens as we took decisive steps to enhance our business model, grow our balance sheet and improve our financial performance,” said CEO Bruce Van Saun in a statement.
In the quarter ending in December, net interest income increased 2.4 percent to $840 million from a year earlier. Both retail and commercial loans, in large part, drove the increase, as the average loans and leases increased 3 percent, or $2.4 billion, year-over-year.
Noninterest income decreased 11 percent to $339 million, which the bank contributes to a reduction in securities gains and service charges and fees.
Total assets increased 9 percent to $132.9 billion from $122.14 billion in 2013.
Citizens first sold shares in September as it gradually spins off from its parent company, Royal Bank of Scotland Group PLC, which has said it will exit its holdings completely by the end of 2016.
“I am proud of all we’ve accomplished in a very short period of time. Following our successful initial public offering in the third quarter, we are laser-focused on the execution of our plan to drive continue improvement in profitability and deliver the best possible banking experience for our customers,” said Van Saun. “Our ability to robustly grow loans and deposits in 2014 reflects the strength of our offerings and customers relationships, and our improving efficiency ratio shows that we are pursuing growth opportunities while maintaining good expense discipline.”

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