Citizens Financial Earnings Fall 40%

   By Julie Steinberg 
 

Citizens Financial Group Inc. (CFG) reported a 40% drop in third-quarter profit as the regional lender announced its first earnings results since it returned to the U.S. stock market as a publicly traded company in September.

The Providence, R.I., firm said it earned $189 million in the quarter, down from $313 million a year earlier. On a per-share basis, the bank's earnings fell to 34 cents from 54 cents a year earlier.

Per-share earnings in the quarter were brought down by two cents in restructuring costs, while prior-year earnings included a 19-cent per-share benefit.

Revenue fell 21.2% to $1.16 billion, as noninterest income fell 46.7% to $341 million.

Citizens went public on Sept. 24 and its stock rose 7.4% on its first day of trading after it was priced below expectations the day before. The lender's parent, Royal Bank of Scotland Group PLC (RBS), has reduced its stake in the firm by a quarter and has said it will exit its holdings completely by the end of 2016.

Like other regional banks, Citizens is facing stubbornly low interest rates that have limited interest income.

Write to Julie Steinberg at [e-mail]

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