Citizens Financial misses profit estimates as it secures more money for rainy days


April 19 (Reuters) – Citizens Financial Group (CFG.N) reported first-quarter profit on Wednesday, but fell short of Wall Street expectations. Fear of impending recession.

The bank’s shares, which have fallen nearly 23% so far this year, are down about 1.5% to $30 in premarket trading.

In recent weeks, lenders in the region have been shaken after bank runs against two medium-sized competitors undermined confidence in the stability of the banking industry and spilled over into global markets.

The banking crisis also undermined public confidence in the health of the economy, fueling fears of an upcoming recession, and Citizens Financial set aside $168 million in case customers default on loan payments. I came to

Average deposits declined 2.6% to $174.4 billion in the three months ended March 31, compared to $179 billion at the end of the previous quarter.

Disturbed by the banking sector’s turmoil, customers are looking to move money from local banks to Wall Street’s big banks, which regulators and policymakers consider systemically important.

Earlier this week, State Street (STT.N) and Charles Schwab (SCHW.N) deposits fell in the first quarter amid a flight of funds, with customers looking for better returns elsewhere. .

The bank reported potential earnings of $1.10 per share. On average, analysts expected him to report $1.13 per share, according to Refinitiv IBES data.

The bank reported net income of $511 million in the first quarter, up from $420 million in the same period last year, according to the bank.

Reported by Manya Saini, Bengaluru.Edited by Pooja Desai

Our Standards: Thomson Reuters Trust Principles.

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