Citizens Financial Q3 revenue slightly misses estimates
Overview
US banking group's Q3 revenue slightly missed analyst expectations
Q3 net income and EPS rose sharply yr/yr
Company raised dividend 13% and expanded share buyback program by $1.3 bln
Outlook
Company says it remains confident in its outlook for Q4 and for 2027
Result Drivers
REVENUE AND EARNINGS GROWTH - Co attributed Q3 performance to continued revenue and earnings growth despite external volatility
LOWER CREDIT PROVISION - Provision for credit losses fell to $125 mln from $154 mln yr/yr, reflecting Non-Core runoff, improving credit trends and a better loan mix
FEE-MIX PRESSURE - Lower mortgage banking and capital-markets fees weighed on noninterest income q/q, partly offset by record wealth fees
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $2.32 bln | $2.34 bln (14 Analysts) |
Q3 EPS | $1.41 | ||
Q3 Net Income | $636 mln | ||
Q3 Net Interest Income | $1.68 bln | ||
Q3 CET1 Capital Ratio | 10.50% | ||
Q3 Credit Loss Provision | $125 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Citizens Financial Group Inc is $78.00, about 23% above its October 15 closing price of $63.43
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits
Oct 13 - Citigroup Q3 revenue rises, partly on strength in services, wealth segments
Oct 15 - PNC's Q3 revenue grows slightly less than expected on tepid capital markets activity
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)