Citizens Financial Group ( NYSE: CFG ) stock is rising 3.5% in Tuesday premarket trading after the bank turned in better-than-expected Q2 earnings, helped by higher interest rates. It also announced a 7.7% increase in its quarterly dividend.
Q2 underlying EPS of $1.14 , topping the consensus estimate of $1.02, climbed from $1.07 in Q1 2022 and $1.46 in Q2 2021.
Q2 net interest income of $1.51B increased from $1.15B in the prior quarter and from $1.12B in the year-ago quarter. Net interest margin of 3.04% rose from 2.75% in Q1 and from 2.71% in Q2 2021.
Nononinterest expense of $1.31B increased from $1.11B in the prior quarter and $991M in the year-ago quarter.
Provision for credit losses of $216M increased from $3M in Q1 2022 and reversed from a benefit of $213M in Q2 2021.
Q2 average loans and leases rose to $153.8B, including $21.8B from HSBC/ISBC, from $129.2B in the previous quarter.
Q2 average deposits of $176.4B grew from $155.1B in the prior quarter.
Guidance: The company expects Q3 net interest income rise 5.5%-7% from Q2's 1.51b and noninterest income in the quarter to be "broadly stable if market volatility subsides." It also expects strong sequential positive operating leverage in Q3 and return on tangible common equity above its medium-term target range of 14%-16%.
For the full year, Citizens ( CFG ) reiterates is preprovision net revenue outlook from its April guidance.
Conference call at 9:00 AM ET.
Recall that last month Citizens ( CFG ) announced plans to boost its stock buyback program to $1.0B after the Federal Reserve stress tests.
Earlier, Citizens Financial ( CFG ) non-GAAP EPS of $1.14 beats by $0.12, revenue of $1.99B in-line
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Citizens Financial stock gains after loan growth, rate hikes, dividend boost