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Citizens Financial fourth quarter profits more than doubled to $666MM, which included a tax benefit of $317MM. Net interest income and non-interest income improved 9.5% and 7.1% respectively, while non-interest expenses also were up 6%. Net interest margin improved 18 bps to 3.08%. $CFG's board declared a quarterly cash dividend of $0.22 per share.
$CFG said Citizens Bank launched Zelle which allows funds to be sent from one bank account to another using only a recipient's email address or mobile number. Customer account information stays protected as neither party can see the other’s account information. Customers can access Zelle through their mobile banking app or online banking.
$CFG said Citizens Bank has launched its digital investment and advisory platform, SpeciFi from Citizens Investment Services. The fully digital investment advisor service, offered by Citizens Investment Services and its sub-advisor, SigFig Wealth Management, LLC, provides customized investment guidance and portfolio management.
$CFG's BoD declared a semi-annual dividend of $27.50 per share on its 5.500% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series A. The dividend is payable on Oct. 6, 2017 to shareholders of record at the close of business on Sept. 21, 2017.
$CFG subsidiary Citizens Commercial Banking has appointed Laura Neenan Fogarty as head of its national healthcare banking group. Most recently, Fogarty served Citigroup as Managing Director of Healthcare Corporate Banking. Earlier, she worked as corporate banker at Bank of New York and Bank of America.
$CFG's total borrowed funds was $15.6Bil at June 30, 2017, down $48MM from March 31, 2017. This reflects rise in long-term borrowings, which was more than offset by a decline in other short-term borrowings, primarily Federal Home Loan Bank advances and fall in federal funds purchased and securities sold under agreements to repurchase.
$CFG's net interest income for 2Q17 increased 11% given 6% average loan growth and a 13 basis point improvement in net interest margin. Net interest margin of 2.97% reflects improved loan yields, driven by higher rates and balance sheet optimization initiatives, partially offset by investment portfolio growth and higher funding costs.
$CFG posted a 31% jump in 2Q17 earnings on higher net interest income, strength in mortgage banking fees, service charges and fees and capital markets fees along with continued expense management discipline. Net income grew to $318MM from $243MM in 2Q16 and EPS climbed 37% to $0.63. Revenue rose 1% to $1.4Bil.
$CFG's subsidiary Citizens Bank has hired Joseph Giampetroni as Regional Executive for the Midwest with responsibility for corporate banking in the greater Chicago area, Michigan and Ohio. Most recently at U.S. Bank, he headed up the Midwest Corporate Banking Division.
Citizens Bank, a subsidiary of $CFG, said it will partner with Bottomline Technologies to deploy a market-leading online and mobile banking platform for its Commercial and Business Banking clients. Current Citizens clients are scheduled to begin migrating to the new platform in 2H18.
$CFG announced the acquisition of Western Reserve Partners LLC, a Cleveland-based merger and acquisition advisory firm. The transaction follows the 2016 launch of Citizens Capital Markets, which added broker-dealer capabilities to the bank's capital markets platform. The transaction will be funded with cash.
$CFG said it is looking for opportunities to optimize and improve its funding on both consumer and commercial side of businesses. The company said it is seeing good control of deposit cost in the consumer side and it is looking for ways to better fund the balance sheet.
$CFG's assets of $150.3Bil as of March 31, 2017, up 7% from March 31, 2016. This is driven by $7Bil rise in loans and leases and loans held for sale, as well as a $3.9Bil rise in investment portfolio assets, partially offset by a $681MM reduction in other non-earning assets, largely derivatives tied to change in classification of margin payments.
$CFG's 1Q17 results reflect continued expense management discipline with nearly 1% positive operating leverage and a 50 point improvement in efficiency ratio to 62%. Provision expense fell by $6MM, as net charge-offs dropped to 33 points of average loans. Results also reflect 14% fall in tax expense on settlement of certain state tax matters.
$CFG reported a 43% jump in earnings for 1Q17 driven by higher net interest income, on continued loan growth and improved net interest margin. Net income rose to $320MM or $0.61 per share from $223MM or $0.41 per share last year. Revenue grew 12% to $1.38Bil. Underlying EPS increased 39% to $0.57.