Upcoming AWS Coverage on BankUnited Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 27, 2017 / Active Wall St. announces its post-earnings coverage on Citizens Financial Group, Inc. (NYSE: CFG). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on January 20, 2017. The Providence, Rhode Island-based company's quarterly GAAP and non-GAAP total revenues and diluted EPS increased 10.63% and 31% y-o-y, respectively; both results outperforming market consensus estimates. Register with us now for your free membership at:

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One of Citizens Financial Group's competitors within the Regional - Mid-Atlantic Banks space, BankUnited, Inc. (NYSE: BKU), reported its financial results for the quarter and fiscal year ended December 31, 2016 on Wednesday, January 25, 2017 prior to the market opening. AWS will be initiating a research report on BankUnited in the coming days.

Today, AWS is promoting its earnings coverage on CFG; touching on BKU. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CFG

http://www.activewallst.com/registration-3/?symbol=BKU

Earnings Reviewed

In the quarter ended December 31, 2016, Citizens Financial Group's GAAP and non-GAAP total revenue was $1.36 billion compared to $1.23 billion in Q4 FY15. Total revenues for the reported quarter beat market consensus estimates of $1.33 billion. The Company's net interest income rose 13% to $986 million in Q4 FY16 from $870 million in the prior year's comparable quarter. Meanwhile, total noninterest income for Q4 FY16 stood at $377 million compared to $362 million in Q4 FY15.

The bank reported GAAP and non-GAAP net income applicable to common shareholders of $282 million, or $0.55 per diluted share, in Q4 FY16, compared to $221 million, or $0.42 per diluted share, in Q4 FY15. Wall Street had expected the Company to report net income applicable to common shareholders of $0.53 per diluted share.

In full year FY16, Citizens Financial Group's GAAP and non-GAAP total revenues were up by 7.55% to $5.19 billion from $4.82 billion in FY15. The bank's GAAP net income applicable to common shareholders for FY16 came in at $1.03 billion, or $1.97 per diluted share, compared to $833 million, or $1.55 per diluted share, in the previous year. Furthermore, the bank's non-GAAP net income applicable to common shareholders stood at $1.01 billion, or $1.93 per diluted share FY16, versus $864 million, or $1.61 per diluted share, in the year ago corresponding quarter.

Earnings Metrics

During the reported quarter, return on average common equity was 5.70% compared to 4.51% reported in the year ago same period. The return on average tangible common equity came in at 8.43% in Q4 FY16 compared to 6.75% in Q4 FY15. Net interest margin improved 13 basis points in the reported quarter to 2.90% from 2.77% in Q4 FY15.

As on December 31, 2016, the Company's preliminary CET1 capital ratio was 11.2% compared to 11.7% as on December 31, 2015. The Company had an efficiency ratio of 62.18% in Q4 FY16 compared to 65.76% in Q4 FY15. Furthermore, Tier 1 leverage ratio stood at 9.9% as on December 31, 2016, versus 10.5% as on December 31, 2015.

Balance Sheet Analyzed

In Q4 FY16, average interest-earning assets grew to $134.76 billion in Q4 FY16 from $124.20 billion in the previous year's comparable quarter. The bank's yield on average interest-earning assets for Q4 FY16 was 3.30% compared to 3.15% the year ago same quarter. Citizens Financial Group's average total loans and leases were $106.53 billion during quarter ended December 31, 2016, versus $98.20 billion in Q4 FY15. Furthermore, the bank's average total assets were $147.32 billion in Q4 FY16 compared to $136.30 billion recorded in Q4 FY15.

The bank's total nonperforming assets (NPA) stood at $1.09 billion as on December 31, 2016, compared to $1.11 billion as on December 31, 2015. Nonperforming assets to total assets ratio improved to 0.73% at as on December 31, 2016, from 0.80% as on December 31, 2015.

Segment Performance

Citizens Financial Group's Consumer Banking segment's total revenue grew 9% to $866 million in Q4 FY16 from $791 million in Q4 FY15. Furthermore, the segment reported net income of $92 million in Q4 FY16 compared to $67 million in the prior year's comparable quarter.

For Q4 FY16, Commercial Banking segment's total revenue came in at $469 million compared to $408 million in Q4 FY15. Additionally, the segment's net income rose to $172 million in Q4 FY16 from $152 million in the past year's same quarter.

Dividend and Share Repurchase

In its earnings press release, Citizens Financial Group's Board of Directors declared a quarterly cash dividend of $0.14 per common share, an increase of $0.02 per share. The dividend is payable on February 16, 2017, to shareholders of record at the close of business on February 02, 2017.

During Q4 FY16, the Company repurchased 6.3 million shares of common stock at an average price of $28.71 per share as a part of the CFG's 2016 Capital Plan. The Plan included share repurchases up to $690 million of outstanding common stock beginning in Q3 FY16 through Q2 FY17. The Company still has $260 million remaining under its CFG's 2016 Capital Plan as of December 31, 2016.

Stock Performance

On Thursday, January 26, 2017, the stock closed the trading session at $37.54, rising slightly by 0.05% from its previous closing price of $37.52. A total volume of 4.80 million shares have exchanged hands. Citizens Financial Group's stock price advanced 42.52% in the last three months, 67.92% in the past six months, and 80.58% in the previous twelve months. The stock is trading at a PE ratio of 20.41 and has a dividend yield of 1.28%.

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SOURCE: Active Wall Street