Citizens Financial Says Revenue, Profit Rise on Loan and Deposit Growth

By Austen Hufford

Citizens Financial Group Inc. reported revenue and profit increases for its third quarter, driven by increases in loans and deposits.

The Providence, R.I.-based regional bank, which went public at the end of 2014, said average loans increased 8.3% from a year earlier on increases in commercial and retail lending as deposits rose 6.3%.

In all, Citizens earned $290 million, or 56 cents a share, up from $213 million, or 40 cents a share, a year prior. On an adjusted basis, earnings were 52 cents. Revenue increased 14% to $1.38 billion.

Analysts polled by Thomson Reuters were expecting earnings of 48 cents a share on $1.32 billion in revenue.

Fee-based income rose 23% to $435 million primarily due to a $72 million sale of a troubled debt restructuring portfolio and also due to mortgage banking fees, service charges and fees, foreign exchange and letter of credit fees.

Citizens said expenses increased 8.5% from a year prior, driven by a reduction in restructuring charges and special items that was partially offset by an increase in salary and employee benefits largely related to a change in timing of merit increases.

The lender's provision for potential loan losses was $86 million, up from a $76 million provision in the same quarter last year, but down from the around $90 million in each of the previous three quarters, largely due to net charge offs.

Shares, up 18% in the past three months, rose 2.9% in premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

October 21, 2016 09:28 ET (13:28 GMT)

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