Investing.com -- On Friday, Citizens Financial Group Inc. (NYSE: CFG) reported third quarter earnings that exceeded analyst expectations while revenue fell short of estimates.

Shares of the Providence-based were down 5.41% in pre-market trading following the announcement.

The bank posted adjusted earnings per share of $1.41, beating the analyst consensus of $1.39 by $0.02. However, revenue of $2.32 billion missed expectations of $2.34 billion, representing a 10% increase from $2.12 billion in the same quarter last year.

Net interest income rose 13% YoY to $1.68 billion, driven by a 19 basis point expansion in net interest margin to 3.19%. Noninterest income increased 3% YoY to $647 million, though it declined 1% from the prior quarter as lower mortgage banking and capital markets fees offset record wealth management results.

The bank’s net income climbed 29% YoY to $636 million, while return on average tangible common equity reached 15.1%, up from 11.7% a year earlier. Pre-provision profit increased 19% YoY to $929 million, with the bank achieving positive operating leverage of 5.3% YoY.

"We continued to deliver attractive revenue and earnings growth in the third quarter, notwithstanding significant volatility in the external environment," said Chairman and CEO Bruce Van Saun. "We remain focused on executing our strategic initiatives, advancing our AI, technology and cybersecurity agenda, and attracting great talent."

Average loans and leases grew 1% from the prior quarter to $147.4 billion, led by expansion in the Private Bank and retail segments. Total deposits remained broadly stable at $183.7 billion on an average basis.

Credit quality remained favorable with net charge-offs stable at 37 basis points of average loans. The allowance for credit losses stood at 1.47% of total loans.

Citizens’ board declared a quarterly dividend of $0.52 per share, a 13% increase from the prior quarter, and expanded its share repurchase authorization by $1.3 billion to $1.95 billion total capacity.

Original Article