Why Citizens Financial Shares Are Sliding Today

Citizens Financial Group Inc CFG shares are trading lower by around 3% after the company missed Q3 FY23 earnings estimates.

The company reported a revenue decline of 7% Y/Y to $2.01 billion, missing the analyst consensus of $2.04 billion.

Net interest income fell 9% Y/Y to $1.52 billion due to lower net interest margin and a 2% decline in average interest-earning assets.

Adjusted net income for the quarter decreased 33% Y/Y to $448 million. Adjusted EPS of $0.89 missed the analyst consensus of $0.92.

Adjusted efficiency ratio for the quarter was 63.1% compared to a ratio of 54.9% last year.

Capital Equity Tier 1 ratio improved to 10.4%, vs. 9.8% a year ago.

Period-end loans to deposit ratio was 84.0% compared to 87.4% last year.

Provision for credit losses rose to $172 million vs. $123 million a year ago.

Dividend: The board of directors declared a quarterly common stock dividend of $0.42 per share, payable on November 15, 2023, to shareholders of record as on business on November 1, 2023.

"We continue to post solid results through a dynamic environment. Our spot deposit levels were up slightly relative to Q2 and broadly stable with a year ago, and our NII and NIM were in line with expectations. We increased our CET1 ratio to 10.4% while continuing to repurchase a modest amount of stock. The ramp of the Citizens Private Bank is making good progress, with several launch events over the next few weeks, and the Non-Core rundown is on track. Successful execution of these initiatives will meaningfully bolster EPS and returns. We will continue to play strong defense given the external environment, while advancing important strategic initiatives," commented Bruce Van Saun, Chairman and CEO.

Price Action: CFG shares are down 3.10% at $26.26 premarket on the last check Wednesday.