Profits up after Citizens Bank’s market flotation

Tim Wallace
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CITIZENS bank reported healthy profit growth yesterday in its first set of quarterly results since RBS sold off a 25 per cent stake in the US retail lender.

Net income came in at $189m (£117m) for the three-month period, up 31 per cent on the $144m in the same quarter of 2013.

Revenues were up one per cent on the year to $1.61bn, while non-interest expenses climbed three per cent to $810m.

Provisions for credit losses dived 47 per cent on the year to $77m.

The commercial banking arm performed well with profits rising nine per cent on the year to $139m.

The consumer banking unit saw net income grow by four per cent to $54m.

The improvement also pushed up return on average tangible common equity to 5.81 per cent, compared with 4.34 per cent a year earlier.

“We continue to make solid progress in key growth areas like auto and student lending, and in capital markets where we moved to a top five ranking in middle market loan syndications,” said chairman and chief executive – and former RBS chief finance officer – Bruce Van Saun.

“The initial public offering was a significant milestone for us as we work towards our aspiration of becoming a top-performing regional bank.”

The group’s shares slid 1.47 per cent to $22.85, though they remain firmly above the $21.50 flotation price last month.