Citizens Financial Group Announces Prime Rate Change

Rhea-AI Summary

Citizens Financial Group (NYSE: CFG) has announced a decrease in its prime lending rate from 8.50% to 8.00%, effective September 19, 2024. This change, implemented by Citizens Bank, N.A., reflects an adjustment in the company's lending strategy. Citizens Financial Group, with $219.9 billion in assets as of June 30, 2024, is a major financial institution offering a wide range of retail and commercial banking services. The company operates approximately 1,000 branches and 3,300 ATMs across 14 states and Washington, D.C., providing consumer and commercial banking products, including mobile and online banking, lending, savings, wealth management, and small business offerings.

Positive

• Decrease in prime lending rate from 8.50% to 8.00%, potentially attracting more borrowers
• Strong asset base of $219.9 billion as of June 30, 2024
• Extensive network of approximately 1,000 branches and 3,300 ATMs across 14 states and D.C.

Negative

• Reduction in prime rate may lead to lower interest income for the bank

Insights

Financial Analyst

Citizens Financial Group's decision to lower its prime lending rate by 50 basis points to 8.00% reflects a significant shift in the broader economic landscape. This move, likely in response to a Federal Reserve rate cut, signals a potential easing of monetary policy. For investors, this change has several implications:

• Reduced borrowing costs for consumers and businesses, potentially stimulating economic activity
• Lower interest income for the bank on variable-rate loans tied to the prime rate
• Possible increase in loan demand, particularly in mortgage and commercial sectors
• Potential pressure on net interest margins, a key profitability metric for banks

While lower rates can boost loan volume, they may also compress profit margins. Investors should monitor how Citizens manages this balance and adjusts its loan portfolio strategy in response to the changing rate environment.

Market Research Analyst

The prime rate reduction by Citizens Financial Group is part of a broader trend that could reshape the competitive landscape in the banking sector. With $219.9 billion in assets, Citizens is a significant player and its actions may influence smaller regional banks. Key points for investors to consider:

• Potential for increased competition in loan pricing across the industry
• Shift in consumer behavior towards refinancing existing loans or taking on new debt
• Possible impact on deposit rates, affecting the bank's funding costs
• Opportunity for Citizens to capture market share in a lower rate environment

This rate change could catalyze a shift in banking products and services offered, as financial institutions adapt to maintain profitability in a lower-rate environment. Investors should watch for innovative product offerings and changes in Citizens' marketing strategies in response to this new rate landscape.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Financial Group, Inc. (NYSE: CFG) announced today that Citizens Bank, N.A. has decreased its prime lending rate to 8.00 percent from 8.50 percent, effective Thursday, September 19, 2024.

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $219.9 billion in assets as of June 30, 2024. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,300 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240918195747/en/

Media: Courtney Robinson

V.P. Corporate Communications Director

Courtney.A.Robinson@citizensbank.com

401.261.1271

Source: Citizens Financial Group, Inc.

FAQ

What is the new prime lending rate for Citizens Bank (CFG) as of September 19, 2024?

Citizens Bank, N.A., a subsidiary of Citizens Financial Group (CFG), has decreased its prime lending rate to 8.00% from 8.50%, effective September 19, 2024.

How much in assets does Citizens Financial Group (CFG) have as of June 30, 2024?

Citizens Financial Group (CFG) reported $219.9 billion in assets as of June 30, 2024.

How many branches and ATMs does Citizens Financial Group (CFG) operate?

Citizens Financial Group (CFG) operates approximately 1,000 branches and 3,300 ATMs across 14 states and the District of Columbia.

What banking services does Citizens Financial Group (CFG) offer?

Citizens Financial Group (CFG) offers a broad range of retail and commercial banking products and services, including mobile and online banking, lending, savings, wealth management, small business offerings, and various commercial banking solutions.