Citizens Financial: Shares Look Cheap On Medium-Term NIM Expansion

Mark Dockray
1.91K Followers
(10min)

Summary

  • Citizens Financial's interest margin has lagged the space these past few years, with the bank weighed down by interest rate hedges and its non-core loan portfolio.
  • These issues should be self-correcting, powering strong net interest margin expansion over the next couple of years.
  • While shares trade for a reasonable-looking 11.3x consensus 2025 EPS, earnings growth looks set to be robust through 2027, pointing to attractive returns for today's buyers.

Citizens bank sign on the building in Pittsburgh PA, USA.

JHVEPhoto

Given the recent bout of tariff-induced volatility, it would be easy to forget that regional bank stocks have performed well over the past 12 months. The largest ETF tracking the space has clocked in a circa 27% return in that time, outperforming

This article was written by

1.91K Followers
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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