2023-06-07 11:12:13 ET
- Citizens Financial Group ( NYSE: CFG ) said Wednesday it will no longer originate indirect auto loans as of July 1, 2023, as part of its plan to optimize its balance sheet and focus on relationship-based lending.
- The bank will retain and continue to service existing auto loans on its balance sheet.
- "As Citizens ( CFG ) continues to optimize its balance sheet, this decision further enables us to lend in areas that provide better risk adjusted returns and improved opportunities to deepen relationships with our customers," said Eric Schuppenhauer, head of Consumer Lending at Citizens.
- In Q3 2022, CFG started to reduce the number of active dealer relationships and de-emphasize its auto loan origination volume. At March 31, 2023, the company had $11.5B of auto loans outstanding, down 6.5% from Dec. 31, 2022 and down 20.1% from March 31, 2022.
- Citizens Financial ( CFG ) stock gained 0.4% in Wednesday morning trading.
- In the bank's Q1 earnings call, management spoke about why offering loans through dealer partnerships aren't core to its strategy.
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Citizens Financial Group to stop originating auto loans through dealerships