Citizens Financial Group Inc (NYSE:CFG) stock rose 0.56% (As on April 17, 11:28:49 AM UTC-4, Source: Google Finance) after the company beats the market’s expectations for the first quarter of FY25. The company also highlighted the company’s agreement to sell its purchased student loan portfolio of $1.9 billion, which he said would accelerate Non-Core rundown and free up capital and liquidity. $200 million settled in 1Q25, remainder to settle ratably each quarter through 2025. It acknowledged the heightened uncertainty in the second quarter due to policy decisions in Washington but expressed confidence in the bank’s ability to navigate challenges. Citizens Financial’s NII decreased 4% year over year to $1.39 billion due to a lower net interest margin and a decline in average interest-earning assets. The net interest margin (NIM) shrunk 1 basis point to 2.90% as the impacts of variable-rate asset repricing were largely offset by the benefits of lower funding costs, non-core runoff and fixed-rate asset repricing. The non-interest income increased 5% year over year to $544 million. The improvement resulted from increased service charges and fees, wealth fees, and mortgage banking income.

Moreover, Period-end loans down $5.6 billion, or 3.9%; Core loans stable, Private Bank growth of $2.6 billion. Retail up $1.6 billion, driven by home equity and mortgage. Commercial down $4.0 billion, reflecting paydowns in CRE, BSO actions and market conditions. Average loans down $5.1 billion, or 3.5%; Core loans down 1%. Average deposits down 1.9%; Period-end deposits up $1.1 billion, or 1%, reflecting growth in Private Bank and Consumer, partially offset by a reduction in higher-cost Treasury deposits and lower Commercial balances.

CFG in the first quarter of FY25 has reported the adjusted earnings per share of 77 cents, beating the analysts’ estimates for the adjusted earnings per share of 75 cents. The company had reported the adjusted revenue of $1.94 billion in the first quarter of FY25, which is inline with the analysts’ estimates for revenue of $1.94 billion.

Additionally, CFG announced a quarterly common stock dividend of $0.42 per share, payable on May 14, 2025, to shareholders of record as of April 30, 2025.

Citizens Financial Group reaffirmed its full-year EPS estimate, projecting a Net Interest Margin (NIM) increase to between 3.05% and 3.10% by year-end. Despite a revenue decline of 5.51% in the last twelve months, the company anticipates positive operating leverage of approximately $150 million and expects net interest income growth of 3-5%. Key strategic initiatives include the launch of new credit card products and further expansion of private banking services.