CFG Q2 results benefit from higher net interest and fee income despite rising costs and falling deposits.
CFG's Q2 earnings are likely to rise on higher NII and fee income, with stable expenses and improved loan demand adding support.
Citizens Financial's interest margin has lagged the space these past few years, with the bank weighed down by interest rate hedges and its non-core loan portfolio. These issues should be self-correcting, powering strong net interest margin expansion over the next couple of years. While shares trade for a reasonable-looking 11.3x consensus 2025 EPS, earnings growth looks set to be robust through 2027, pointing to attractive returns for today's buyers.
CFG boosts its buyback plan to $1.5B, underscoring confidence in its capital strength and long-term strategy.
The bank's ten-year median net interest margin is steady at 3.5%, reflecting the bank's diversification and consistent loan quality. The historical loan-to-deposit ratio implies a solid funding profile. The bank has strong ROE compared to their competition.
CFG's first-quarter 2025 results benefit from a rise in fee income and a decline in expenses. Yet, a dip in NII acts as a spoilsport.
Citizens Financial Group, Inc. shows mixed performance with stable asset quality but declining loans and deposits, leading us to rate it as a sector perform. Q1 revenues fell to $1.94 billion, with net income narrowing to $373 million, though EPS beat expectations at $0.77. Deposits slightly increased to $177.6 billion, but loans continued to decline, signaling potential income challenges despite tighter lending standards.
CFG's first-quarter 2025 results are likely to reflect a decline in NII and non-interest income, along with a rise in expenses.
CFG's organic growth efforts, along with rising loans and deposits balances, look encouraging. Yet, rising costs remain a concern.
Citizens (CIA) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
First Citizens Bancshares (FCNCA) faces challenges due to its commercial focus and rate sensitivity, with weaker loan demand and lower rates both threatening 2025/26 expectations. First Citizens has seen above-average spread compression, but fee-based income has been growing well and credit costs appear to be under control. Economic uncertainty and potential recession risks lead me to more conservative estimates for 2025-2027, including likely year-over-year contraction in pre-provision profits in 2025.
Citizens (CIA) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.21 per share a year ago.