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Sep 30, 2021

Citizens Q3 2021 Earnings Report

Citizens reported strong results driven by revenue growth and expense management.

Key Takeaways

Citizens Financial Group reported a net income of $530 million and EPS of $1.18 for the third quarter of 2021. The results reflect broad-based strength across the businesses, including a rebound in mortgage, along with excellent credit results.

Underlying ROTCE was 14.2% and underlying EPS was $1.22.

Underlying PPNR was $671 million, reflecting strong results in Capital Markets, Wealth and Mortgage.

Net interest income increased 2% QoQ due to interest-earning asset growth.

Credit provision benefit of $33 million reflects strong credit performance and macroeconomic improvement.

Total Revenue
$1.66B
Previous year: $1.79B
-7.4%
EPS
$1.22
Previous year: $0.68
+79.4%
Efficiency Ratio
61%
Previous year: 55.2%
+10.5%
Gross Profit
$1.66B
Previous year: $1.79B
-7.4%
Cash and Equivalents
$12.9B
Previous year: $9.22B
+39.5%
Total Assets
$187B
Previous year: $179B
+4.3%

Citizens

Citizens

Forward Guidance

Citizens maintains a positive outlook for a gradual, strong recovery through next year.

Positive Outlook

  • Integration planning for recent acquisitions is going well.
  • Excited about the franchise and synergy benefits as we look forward to 2022.
  • Delivered strong results in the third quarter.
  • Solid revenue growth across both net interest income and fees.
  • Excellent expense discipline resulted in positive sequential operating leverage in excess of 2%.

Challenges Ahead

  • Economic growth and loan demand in the second half have been affected by the pandemic.