2023-07-19 11:50:36 ET
Citizens Financial Group ( NYSE: CFG ) stock jumped 5.3% in Wednesday late morning trading after the regional lender posted Q2 earnings, albeit falling, above the average analyst estimate.
Highlighting the bright side its quarterly report, CEO Bruce Van Saun said CFG bought back more than $250M in stock during the quarter, improved its common equity tier 1 (CET1) ratio to 10.3% from 10.0% in Q1, grew deposits, and reduced FHLB borrowings by almost $7B to $5B.
Going forward, the Rhode Island-based bank sees noninterest income rising ~3% from $506M in Q2, and expects Q3 noninterest expense to stay "broadly stable" from $1.23B in the prior quarter.
Net interest income is expected to slide 4% to $1.59B in Q3 vs. Q2.
For Q2, underlying EPS of $1.04 , vs. $1.00 consensus, slid from $1.10 in Q1 and from $1.14 in the year-ago quarter. Revenue of $2.09B, trailing the $2.10B consensus, fell from $2.13B in Q1 and advanced from $2.0B a year before.
period-end deposits of $177.7B gained 3% Q/Q (with deposit costs rising 40 basis points); period-end loans and leases of $151.3B slipped 2% Q/Q (with loan yields up 27 bps).
Net interest income stood at $1.59B, down from $1.64B in Q1 and up from $1.51B in Q2 2022. Net interest margin of 3.16% compared with 3.29% in Q1 and 3.04% in the year-earlier quarter.
Provision for credit losses rose to $176M from $168M in Q1 and decreased from $216M in Q2 of last year.
Earlier, Citizens Financial ( CFG ) declared a quarterly dividend of $0.42 a share.
More on Citizens Financial Group:
- SA's Quant system rates CFG a Hold
- Citizens Financial cut to In Line at Evercore as Q2 headwinds ramp up
- Citizens Financial: A Value Play With 6.5% Dividend Yield
For further details see:
Citizens Financial stock gaps up as Q2 earnings feature deposit growth