- Citizens had a pretty mixed second quarter, with all of the earnings upside coming from reserve releases and a small fee income-driven miss on a pre-provision basis.
- Despite a lackluster quarter, there has been progress on a number of initiatives, including fee-based income, deposit costs, and future loan growth opportunities.
- Management sounds more bullish on loan growth and PPNR growth prospects for the second half, helped by its diverse loan book (including consumer lending) and high asset sensitivity.
- Citizens isn't, and likely never will be, a top-of-the-charts bank in terms of quality, but the self-help potential remains undervalued, and the shares still look attractive here.
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Leveraged To Both A Recovery And Self-Improvement, Citizens Financial Continues To Outperform