• Citizens Financial reports total deposits of $176.43 billion in 1Q, meeting estimates despite a decrease of 0.5% q/q.
• Average deposits observed also stand at $176.1 billion, showing a decrease of 0.6% q/q which is in alignment with the estimate of $177.27 billion.
• Total loans and leases for the quarter revealed a drop of 1.9% q/q to a value of $143.19 billion, slightly less than the estimated value of $144.97 billion.
• Provision for credit losses is reported at $171 million which is lower than the predicted value of $182.4 million.
• Underlying EPS for the quarter stands at 79c, surpassing the estimate of 75c.
• Revenue reported remains consistent with estimates at $1.96 billion.
• Net interest income FTE matches the estimate of $1.44 billion, with net interest income also standing at $1.44 billion, despite a decrease of 12% y/y.
• FTE net interest margin stands at 2.91%, which is less than the 3.3% from the previous year but slightly higher than the estimated 2.87%.
• Non-interest income is reported at $514 million, slightly below the forecasted $521.4 million.
• Net charge-offs for the period have increased by 36% y/y to $181 million, which is considerably lower than the expected $189.9 million.
• Efficiency ratio for Citizens Financial stands at 69.3%, higher than the previous year’s 60.9% and above the estimated 66.4%.
• The company remains comfortable with their full-year guidance.
• The company is well positioned to deliver 16-18% Rotce Medium-Term.
• Net interest income is expected to decrease about 2% q/q.
• Downwards trend anticipated with 2Q Net Interest Income, foreseeing to decrease about 2% q/q.
• The firm’s stock ratings stands at 13 buys, 10 holds, and 1 sell.
A look at Citizens Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Citizens Financial‘s long-term outlook using their unique Smart Scores methodology. With a top rating of 5 for Value, the company is deemed to be financially sound and potentially undervalued in the market. Coupled with strong scores of 4 in both Dividend and Growth categories, Citizens Financial shows promise for investors seeking both income and capital appreciation over time. Additionally, its Momentum score of 4 indicates a positive trend in the company’s stock performance, further enhancing its attractiveness to potential stakeholders. While the Resilience score of 3 suggests some room for improvement in managing risks, overall, Citizens Financial appears well-positioned for sustainable growth in the banking sector.
Citizens Financial Group Inc. stands out as a comprehensive provider of commercial banking services for both retail and institutional clients. Offering a wide array of financial products including consumer loans, commercial loans, mortgage loans, deposit products, internet banking, and trust services, the company caters to diverse customer needs. With a stellar Value score of 5 reflecting its financial strength and attractive valuation, combined with solid scores in Dividend, Growth, and Momentum, Citizens Financial demonstrates robust potential for long-term success in the competitive banking industry. While there is room for enhancement in Resilience, the company’s strategic positioning and strong performance across key factors bode well for its future sustainability and growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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