Citizens Financial Group Inc (NYSE:CFG) on July 21, 2016 reported second quarter net income of $243 million, or $0.46 per diluted common share, up 28% and 31%, respectively, from $190 million and $0.35 per diluted common share in second quarter 2015. Compared with first quarter 2016, net income increased 9% from $223 million and diluted earnings per common share increased 12% from $0.41. Second quarter 2015 results include an after-tax restructuring charge impact of $0.05 per diluted share, largely related to efforts to improve processes and enhance efficiencies as well as rebranding and separation from RBS. Adjusting for these charges, second quarter 2015 Adjusted* EPS was $0.40 and second quarter 2016 year-on-year improvement was 15%. Return on Average Tangible Common Equity (“ROTCE”) was 7.3% in second quarter 2016 compared to 6.6% in first quarter 2016 and an Adjusted 6.7% in second quarter 2015.

Results

  • Total revenue of $1.3 billion was up $44 million, or 4%, driven by 8% noninterest income growth and 2% net interest
  • income growth.
  • Net interest income of $923 million was up $19 million, or 2%, driven by continued strong commercial and student loan growth.
  • Net interest margin of 2.84% compares with 2.86% in the prior quarter, as the benefit of higher loan growth and improved loan yields and stable deposit costs was more than offset by lower investment portfolio yields and an increase in term debt borrowing costs.
  • Noninterest income of $355 million increased $25 million, or 8%, with particular strength in capital markets fees and growth in mortgage banking fees and service charges from seasonally lower first quarter levels, partially offset by lower securities gains.
  • Headcount down 74, reflecting the benefit of our efficiency initiatives.
  • Net interest income of $923 million was up $19 million, or 2%, driven by continued strong commercial and student loan growth.
  • Net interest margin of 2.84% compares with 2.86% in the prior quarter, as the benefit of higher loan growth and improved loan yields and stable deposit costs was more than offset by lower investment portfolio yields and an increase in term debt borrowing costs.
  • Noninterest income of $355 million increased $25 million, or 8%, with particular strength in capital markets fees and growth in mortgage banking fees and service charges from seasonally lower first quarter levels, partially offset by lower securities gains.
  • Headcount down 74, reflecting the benefit of their efficiency initiatives.

Shares of Citizens Financial Group Inc (NYSE:CFG) jumped 1.69% to reach at $21.68 during the course of session. The company has experienced volume of 12.96M shares while on average the company has a capacity of trading 7.66M shares. The stock holds the market capitalization of $528.98B along with 528.98M outstanding shares. The stock traded in the price range of $21.51 – $22.50 for the last trading session. For the stock price target value has been calculated at $25.71 based on calls of 19 experts. Stock’s minimum price target estimates has been figured out at $22.00 while the maximum price target forecast is established at $32.00.

As of current trade, Citizens Financial Group Inc (NYSE:CFG) has shown weekly upbeat performance of 3.29%. Its six months performance indicated a bullish movement while its yearly performance reflected a negative trend of -18.36%. Year-to-date (YTD) performance of the stock illustrate downbeat trend of -16.38%. Shares of Citizens Financial Group Inc (NYSE:CFG) currently have an ABR of 1.61, derived from a total of 14 opinions. The company’s price sits 0.35% above from its 50-day moving average of $21.13 and -3.91% below from the stock’s 200-day moving average of $21.58. The company has Relative Strength Index (RSI 14) of 59.05 along with Average True Range (ATR 14) of 0.68. Its weekly and monthly volatility is 2.61%, 2.81% respectively.

Citizens Financial Group Inc (NYSE:CFG)’s price to sales ratio for trailing twelve months is 2.92 and price to book ratio for most recent quarter is 0.58, whereas price to cash per share for the most recent quarter is 2.60. Citizens Financial Group Inc (NYSE:CFG)’s price to free cash flow for trailing twelve months is 11.05. Total debt to equity ratio of the company for most recent quarter is 0.51 whereas long term debt to equity ratio for most recent quarter is 0.51. Citizens Financial Group Inc (NYSE:CFG) has a Return on Assets of 0.60%. The company currently has a Return on Equity of 4.30% and Return on Investment of 9.10%.