- Total deposits at Citizens Financial reached $177.6 billion, surpassing the estimated $174.04 billion.
- Total loans and leases were slightly below expectations at $137.64 billion compared to the estimate of $138.85 billion.
- The provision for credit losses was reported at $153 million, coming in lower than the estimated $159.4 million.
- Underlying earnings per share (EPS) matched the reported EPS at 77 cents, exceeding the estimate of 75 cents.
- Net interest income was on target at $1.39 billion, matching estimates.
- The full-time equivalent net interest margin is 2.9%.
- Non-interest income was recorded at $544 million.
- Net charge-offs were higher than anticipated, at $200 million against a $176.5 million estimate.
- Non-interest expenses totaled $1.31 billion, slightly better than the $1.32 billion estimate.
- The efficiency ratio was reported at 67.9%, marginally better than the 68% estimate.
- The board of directors declared a quarterly common stock dividend of $0.42 per share.
- Chairman and CEO Bruce Van Saun expressed satisfaction with the Q1 results and progress on strategic initiatives, despite potential challenges in the second quarter due to policy decisions.
- Analyst recommendations for Citizens Financial include 12 buy ratings, 9 hold ratings, and 1 sell rating.
Citizens Financial on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are providing valuable insights on Citizens Financial. In the report titled “Citizens Financial Group Upping Their Game With Game-Changing Deposit Franchise Power! – Major Drivers,” Baptista Research highlights the strong fourth-quarter performance of Citizens Financial. This performance was driven by sequential revenue growth, net interest margin (NIM) expansion, and favorable credit trends. Notably, there was a 10 basis point increase in NIM, leading to a 3% growth in net interest income (NII). The report also mentions a positive improvement in operating leverage, demonstrating a balance between revenue growth and expense management.
A look at Citizens Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
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
According to Smartkarma Smart Scores, Citizens Financial Group Inc. shows a promising long-term outlook based on its scores in various key areas. The company scores high in value, indicating it is potentially undervalued compared to its actual worth. Additionally, its strong dividend score suggests it is providing a good return to shareholders. While the growth score is moderate, the resilience and momentum scores indicate stability and consistent performance for the company.
Citizens Financial Group Inc. provides a wide range of banking services to both retail and institutional clients, including consumer loans, commercial loans, mortgage loans, deposit products, internet banking, and trust services. With high scores in value and dividend, coupled with moderate scores in growth, resilience, and momentum, Citizens Financial appears to be a sound investment choice for the long term.
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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