Citizens Profit Rises in First Quarter; Fifth Third, KeyCorp Post Declines
April 21 2016 - 9:03AM
Dow Jones News
By Joshua Jamerson
Citizens Financial Group Inc. (CFG) on Thursday posted a
better-than-expected increase in first-quarter profit, pushing the
bank to boost its dividend, though two other regional banks posted
declines in their bottom lines.
Citizens raised its quarterly dividend by 20% to 12 cents as
revenue also beat expectations.
Citizens reported net income of $216 million, or 41 cents a
share, up from $209 million, or 38 cents a share, a year earlier.
Revenue rose to $1.23 billion from $1.18 billion a year ago.
Analysts polled by Thomson Reuters had anticipated a profit 39
cents a share on $1.23 billion in revenue.
Meanwhile, Fifth Third Bancorp (FITB) said its profit and
revenue fell--although by less than analysts had expected--despite
an increase in the value of its remaining stake in
payment-processing firm Vantiv Inc. The Cincinnati-based regional
bank said it received a $47 million positive valuation adjustment
on its remaining Vantiv warrant.
Fifth-Third reported a first-quarter profit of $327 million, or
40 cents a share, down from $361 million, or 42 cents a share, a
year earlier. Revenue, a combination of net interest income and
noninterest income, declined 26% to $1.55 billion. Analysts had
estimated earnings of 34 cents a share and $1.47 billion in
revenue, according to Thomson Reuters.
Cleveland-based KeyCorp (KEY), meanwhile, reported a
first-quarter profit that missed Wall Street views, even as revenue
rose amid what the company's chief executive called a weak
environment.
"While the operating environment remains challenging, our
results reflect continued momentum in our core businesses," said
CEO Beth Mooney.
The Cleveland bank said it earned $188 million, or 22 cents a
share, down from $233 million, or 26 cents a share, in the year-ago
quarter. Revenue rose 2.9% to $1.04 billion, though that was down
4.7% from the fourth quarter. Analysts, on average, had projected
earnings of 25 cents a share on $1.04 billion in revenue.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
April 21, 2016 08:48 ET (12:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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