2023-06-12 15:20:15 ET
Citizens Financial Group ( NYSE: CFG ) stock dropped as much as 9.2% during Monday's session as net charge-offs have come in "a little bit" higher than expected, "mostly given certain valuation aspects of the book," finance chief John Woods said at an industry conference Monday.
He sees Q2 net charge-offs edging up to the "40ish-range" from 0.34% in Q1, while noting "coverage appears adequate."
For the banking industry, "the direction for deposits will be down over the near future," as the Treasury issues hundreds of billions of dollars worth of T-bills, and consequently, liquidity gets sucked out of the system, combined with the Federal Reserve's quantitative tightening program.
The regional lender saw its Q1 deposits, of which around 68% were FDIC insured, decrease to $172.2B from $180.7B at end-Q4.
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Citizens Financial stock slumps after CFO remarks disappoint