CITIZENS FINANCIAL'S QUARTERLY PROFIT RISES ON HIGHER INTEREST AND FEE INCOME

(Reuters) -Citizens Financial's third-quarter profit rose more than 29% on Wednesday, driven by higher interest income, while strong capital markets boosted fees from advisory and underwriting.

An interest rate cut last month eased deposit costs amid labor market challenges and persistent inflation, while AI-driven investment has helped mitigate uncertainty surrounding tariffs, which led to a 20-year low in dealmaking in April.

Citizens' net interest income — the difference between what banks pay customers on deposits and earn as interest on loans — rose to $1.49 billion for the three months ended September 30 from $1.37 billion a year ago.

Its net interest margin expanded 23 bps over the period, signaling strength in a key measure of banks' profitability.

The lender's results mirror those of larger rivals JPMorgan Chase, Wells Fargo and Goldman Sachs, which also reported higher profits on Tuesday, benefiting from a dealmaking resurgence.

"A pick-up in market activity drove our highest Capital Markets revenues since the fourth quarter of 2021, with pipelines remaining strong," Chairman and CEO Bruce Van Saun said.

Citizens reported total non-interest income of $630 million for the period, up 18% from a year ago, on higher fees from advising on M&A, loan syndication and equity underwriting.

The bank's provisions for credit losses fell 10% to $154 million in the quarter. Peer PNC Bank also reported lower rainy day funds.

It reported quarterly profit of $494 million, or $1.05 per share, up from $382 million, or 77 cents, a year earlier.

Its shares have risen nearly 18.4% in 2025, as of last close, compared with a 16.6% gain in the KBW Bank index.

Shares of the bank fell 1.4% premarket after the results.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Vijay Kishore)

2025-10-15T11:37:55Z