July 16 (Reuters) – Citizens Financial Group posted a higher second-quarter profit on Thursday, helped by higher net interest income and fee growth in wealth and capital markets businesses.
Despite inflationary pressures and the prospect of further rate hikes weighing on household finances — particularly for lower-income borrowers — loan demand in the U.S. has remained resilient.
Here are some more details:
• The lender’s net interest income — the difference between what banks pay customers on deposits and earn as interest on loans — rose 14% from a year earlier to $1.63 billion.
• Average loans and leases grew to $146.1 billion from $138.8 billion a year ago.
• Regional lenders such as Citizens have expanded their capital markets divisions in recent years to capitalize on the surge in deal making under a lighter regulatory regime under President Donald Trump.
• The value of global mergers and acquisitions announced so far this year has surpassed $3 trillion, according to Dealogic data.
• Citizens’ capital markets fees surged 45.7% to $153 million, while wealth fees jumped about 16% to $102 million from the year earlier.
• For the reported quarter, the bank’s provisions for credit losses fell to $134 million from $164 million a year earlier.
• The Providence, Rhode Island-based bank reported a quarterly net profit of $587 million, or $1.30 per share, compared with $436 million, or 92 cents, a year earlier.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Vijay Kishore)
