Citizens Financial Group, headquartered in Providence, R.I., reported a significant drop in profit for the fourth quarter. The bank’s net interest income fell behind expectations which resulted in lower earnings compared to the previous year.
Financial Performance
- Profit for the quarter ended Dec. 31 was $189 million, or 34 cents per share, down from $621 million, or $1.25 per share, in the same period last year.
- Analysts surveyed by FactSet had predicted earnings of 60 cents per share.
- Revenue came in at $1.99 billion, a 10% decline from the anticipated $2 billion estimated by analysts.
Net Interest Income
- Citizens Financial’s net interest income dropped 12% to $1.49 billion compared to the previous year. This fall is in line with analysts’ predictions.
- The bank attributed this decline to higher funding costs and the impact of building liquidity.
Provision for Credit Losses
- The bank’s provision for credit losses amounted to $171 million in Q4, compared with $132 million in the same period last year.
Deposit Trend
- Average deposits decreased slightly from $179 million to $177.1 million compared to the previous year. However, deposits showed a sequential increase.