Citizen Bank emerges three years ago; low-interest rates and rising compliance cost bombarded their debut, and now the bank has come a long way. Currently, the bank is looking more prominent and as Trump’s Administration’s plan on increasing the interest rates, Citizens Bank is something that is worth looking at.
The bank has been leaps and leaps since it started in 2014, it also faced an almost financial crisis as then the bank’s parent company Royal Bank of Scotland made huge mistakes after another. Now, the bank is performing more efficiently and continues to improve in all aspects; Citizen’s profitability was doubled and it recently outperformed KBW Bank Index.
CEO Van Saun on Citizens Bank
According to CEO Van Saun "When I came over to Citizens in October 2013, our goal was to benchmark our performance against peers, start playing offense, and turn the company around," and "The plan was fairly straightforward and we've executed on it well. Our performance was initially behind our peers, but now we've pretty much caught up with them. We like to say now that we're turning the corner. We're moving out of our turnaround phase."
Saun’s unequivocal attitude led the bank to greater heights last year; with long growing by 7.7% on a year-on-year period, a huge leap from its bank's group average of 5.4%. Another amazing improvement Citizen bank accomplished is its tremendous revenue growth; it manages to surge to 8.9% as opposed to the 5.4% average of its competitions. The bank finished with a 6.7% efficiency ratio, it is also creeping closer to the 60% benchmark that a handful of banks strive for.
RBS relationship Citizens Bank’s
Citizens has been owing a lot to RBS for the tremendous success they have right now; but after being unshackled from their parent company, eloquent steps were made by CEO Saun and according to him “So we went out and recruited experienced commercial bankers, many of whom have relationships with companies that are above the middle market -- ones with more than $500 million in annual revenue. To serve these companies you need industry expertise. So we set up a healthcare group, a technology group, an energy group. And we've been bringing over bankers who have strong relationships in these industries. When there's an opportunity to enter into a credit relationship with these companies, we're there to do so. Then we hopefully move over and become a more important bank for them.”
Citizen’s Week So Far
The bank started the week with a tremendous Monday, ending it with a 1.01% at $37.02, while its April performance showed 11.80% increase, and tallying a 0.65% growth in the past 6 months accompanied by a 4.70% on a year to date period. Although an unexpected decline was felt after President Trump’s statement worries investors, it joins a bunch of stocks that suffered a concussive blow. On May 1, the bank’s stock rating was upgraded from neutral to outperform by Wedbush; upgrading its target price from $39 to 41.
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