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 8.00% to 7.75%, effective November 8, 2024. The bank, headquartered in Providence, Rhode Island, manages assets worth $219.7 billion as of September 30, 2024. Citizens operates approximately 1,000 branches and 3,100 ATMs across 14 states and D.C., offering comprehensive retail and commercial banking services including mobile banking, lending, savings, wealth management, treasury management, and corporate finance solutions.

Positive

• Reduction in prime lending rate by 25 basis points to 7.75%
• Strong asset base of $219.7 billion
• Extensive network of 3,100 ATMs and 1,000 branches across 14 states

Negative

• Lower prime rate may potentially reduce interest income and net interest margin

Insights

Financial Analyst

The 25 basis point reduction in Citizens Financial Group's prime lending rate to 7.75% aligns with the Federal Reserve's recent rate cut and reflects broader monetary policy shifts. This adjustment will impact both the bank's lending income and borrower costs. The lower rate could stimulate loan demand, particularly in mortgage and commercial sectors, but may compress net interest margins. With $219.7 billion in assets, CFG's rate decisions significantly influence its revenue stream, as interest income typically comprises a substantial portion of bank earnings. This change signals potential margin pressure in upcoming quarters, though increased loan volume could partially offset the impact. The timing and magnitude of the cut suggests CFG expects sustained lower rates, potentially indicating a strategic shift in their lending approach.

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 7.75 percent from 8.00 percent, effective Friday, November 8, 2024.

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $219.7 billion in assets as of September 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 3,100 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 X (formerly Twitter), LinkedIn or Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107455853/en/

Media: Courtney Robinson

Corporate Communications Director

Courtney.A.Robinson@citizensbank.com

Source: Citizens Financial Group, Inc.

FAQ

What is Citizens Financial Group's (CFG) new prime lending rate?

Citizens Financial Group's new prime lending rate is 7.75%, decreased from 8.00%, effective November 8, 2024.

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

Citizens Financial Group operates approximately 1,000 branches and 3,100 ATMs across 14 states and the District of Columbia.

What is Citizens Financial Group's (CFG) total asset value as of September 2024?

Citizens Financial Group's total assets were $219.7 billion as of September 30, 2024.