Citizens Financial’s stock gains after Q1 earnings overshoot highlight net interest (NYSE:CFG)

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Citizen Financial (NYSE: CFG) stocks jump 8.2% out of doors Tuesday after happy new year 2022 for the regional bank outlook and better than expected Q1 results.

See net interest income of $5.7 billion to $5.9 billion in 2022, compared to $4.51 billion in 2021, reflecting higher interest rates.

Expects average loans to grow 20% to 22% next year, from $123.6 billion in 2021.

Anticipates non-interest revenue of $2.2-2.3 billion in 2022 versus $2.13 billion the previous year.

Meanwhile, first-quarter net interest income of $1.14 billion fell from $1.12 billion in the fourth quarter of 2021 and $1.11 billion in the first quarter of 2021.

Average loans and leases in the first quarter were $129.2 million, up from $125.2 million in the fourth quarter of 2021 and $122.8 million in the first quarter of 2021. Average deposits of 155 .1 million also increased from $153.0 million in the fourth quarter of 2021 and $146.6 million in the first quarter of 2021.

Return on tangible equity of 11.4% in Q1 compared to 13.6% in Q4 2021 and 17.2% in Q1 2021.

Still, Q1 Adjusted EPS of $1.07 topped consensus of $0.91, but fell from $1.26 in Q4 2021 and $1.41 in Q1 2021.

Underlying profit before provision of $587 million in the first quarter also fell from $710 million in the fourth quarter of 2021 and from $661 million in the first quarter of 2021.

The tangible book value of $30.97 per share decreased from $34.61 in Q4 2021 and $32.79 in Q1 2021.

Conference call at 9:00 a.m. ET.

On April 11, Citi downgraded Citizens Financial to Neutral.

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