Citizens Financial Q2 profit rises 20% on higher interest income

Overview

• U.S. community bank's Q2 net income rose 20% yr/yr on higher net interest income

• Q2 basic EPS increased to $2.12 from $1.76 a year ago

• Non-performing assets rose, mainly from commercial and construction real estate loans

Outlook

• Company did not provide specific guidance or forecasts for future quarters or full yr

Result Drivers

• NET INTEREST INCOME - Higher net interest income, driven by increased investment income and lower interest expense, supported Q2 results

• LOAN AND INVESTMENT GROWTH - Growth in average loans and investment securities contributed to higher interest income

• CREDIT LOSS PROVISION - Provision for credit losses reflected updated loss driver analysis, economic impact of Iran conflict, and higher reserves for non-performing loans

Company press release: ID:nPn4g0mMya

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Citizens Financial Services Inc is $71.00, about 8.1% below its July 29 closing price of $77.26

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 29 - Citizens Holding Q2 net income rises 70% on higher net interest income

• July 30 - Ottawa Bancorp Q2 net income doubles on higher interest income

• July 29 - Provident Financial Services Q2 profit rises on record interest income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)