Citizens reports revenue, profit growth in 3Q

PROVIDENCE – Citizens Financial Group Inc. on Friday reported both revenue and profit growth in the third quarter, as net income increased 16.4 percent to $220 million, or 40 cents per diluted share, compared with the same period last year.
The parent company of Providence-based Citizens Bank reports total interest and noninterest revenue growing 5.8 percent to $1.3 billion for the quarter that ended Sept. 30.
Bruce Van Saun, chairman and CEO, said the “solid financial results” reflect good execution of the bank’s growth and efficiency initiatives.
“During the quarter we continued to add strong leadership to our management team,” Van Saun said.
The bank in March named Donald H. McCree to head commercial banking, John Bahnken to lead wealth management in September and this week named Chris Nard as president of its mortgage business.

“We’re making significant strides in improving our overall performance and delivering for our stakeholders,” Van Saun added.
Total assets grew 3.1 percent to $135.4 billion. Deposits increased 9 percent to $101.9 billion and total loans and leases grew 8 percent to $97.8 billion compared with the same period last year. Loan and leases growth was partially offset by a 6 percent decrease in the bank’s investment portfolio, according to Citizens.
Average interest-earning assets grew 5 percent to $123 billion.
Allowance for loan and lease losses stayed even at $1.2 billion compared with the same period last year, as total nonperforming loans and leases as a percentage of total loans and leases fell to 1.06 percent compared with 1.19 percent last year.
Provision for credit losses fell 1.3 percent to $76 million, which the bank says largely reflects the “benefit of improvement in credit quality offset by the effect of continued loan growth.”
In August, Citizens completed a issuance of $250 million in subordinated debt due 2025, which funded a 9.6 million common stock share repurchase, further reducing the Royal Bank of Scotland Group PLC’s ownership interest to 20.9 percent, according to the bank.
Citizens net increase margin was 2.76 percent, reflecting a 0.01 percent fall from the same period last year.

Citizens board of directors announced a quarterly chase dividend of 10 cents per common share payable on Nov. 19 to shareholders of record at close of business on Nov. 5.

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