An important milestone reached at Citizens Financial
Citizens Financial Group in Providence, R.I., says it has hit an important milestone that it had set for itself during its initial public offering three years ago.
The $151.4 billion-asset Citizens reached 10% return on tangible common equity, CEO Bruce Van Saun said in a news release Friday.
“Our leadership team has demonstrated a consistent ability to execute well through varying market conditions, delivering improved shareholder returns as we continue to run the bank better,” he said.
Citizens reported net income of $348 million in the third quarter, up 17% from a year earlier. Earnings per share were 68 cents, 4 cents better than the median of analysts' estimates compiled by FactSet Research Systems.
Total revenues increased 5% to $1.4 billion.
Total loans in Citizens’ consumer banking segment increased 6% to $58.7 billion, while loans in its commercial banking segment rose 5% to $48.7 billion.
The net interest margin expanded 21 basis points to 3.05%. Net interest income rose 12% to $1.1 billion.
Citizens' provision for loan losses fell 16% to $72 million, reflecting stronger credit quality and lower net chargeoffs. The ratio of nonperforming loans to total loans fell to 0.85% from 1.05%, and net chargeoffs as a percentage of total loans fell to 0.24% from 0.32%.
Noninterest income declined 12% to $381 million, largely because the year-earlier quarter included a net $67 million gain on the sale of a troubled debt restructuring portfolio. Citizens said noninterest income would have increased 4% had that transaction been excluded.
Noninterest expenses declined 1% from last year’s third quarter to $858 million, mainly because the comparable period last year included $36 million in expenses related to that troubled debt restructuring portfolio.
Deposits increased 6% to $113.2 billion.