PROVIDENCE, RI—Citizens Financial Group, Inc. (NYSE:CFG) announced today that Jack Read, the Corporate Controller and Chief Accounting Officer, will resign effective August 7, 2024, to pursue an opportunity outside the banking sector. The company stated that Read's resignation is for personal reasons and not due to any disagreements over financial, accounting, operations, policies, or practices.
John F. Woods, currently serving as Vice Chair and Chief Financial Officer, will assume the role of Chief Accounting Officer on an interim basis as the company searches for Read's successor. The search will consider both internal and external candidates.
Citizens Financial Group is a state commercial bank headquartered in Providence, Rhode Island, and is incorporated in Delaware. The company's common stock and various series of preferred stock are traded on the New York Stock Exchange under the symbols CFG, CFG PrD, CFG PrE, and CFG PrH, respectively.
This transition comes at a time when the company is navigating a dynamic financial landscape. The announcement follows standard regulatory protocols, with the information derived from a recent filing with the U.S. Securities and Exchange Commission (SEC).
Investors and stakeholders have been assured that the transition will be smooth and that the company's financial operations will continue to uphold the standards of integrity and transparency that are expected in the industry. Citizens Financial Group remains committed to maintaining its strong financial position and delivering value to its shareholders.
The company's fiscal year-end is December 31, and its IRS number is 05-0412693. The details of this corporate update are based on a press release statement filed with the SEC.
In other recent news, Citizens Financial Group has seen noteworthy developments. The company has strengthened its leadership in Florida with the appointment of Jim Weiss as the new Florida market president. Weiss brings over three decades of banking experience to his new role at Citizens, where he will be based in Tampa.
Piper Sandler, a financial services firm, upgraded the stock rating of Citizens Financial Group to 'Overweight' from 'Neutral'. The firm cited the bank's solid capital base and "very attractive" valuation as driving factors for the upgrade.
Argus and Citi have also raised their price targets for Citizens Financial Group, reflecting confidence in the bank's strategic moves and financial stability. Argus increased the price target to $39.00, while Citi raised its price target to $43.00.
In the company's first quarter earnings call, Citizens Financial Group reported a net interest margin (NIM) of 2.91% and fee growth of 3%. The company also repurchased $300 million in shares and maintained a strong Common Equity Tier 1 (CET1) ratio of 10.6%. Despite an 8% rise in non-accrual loans, the company remains confident in its strategic initiatives and medium-term return target of 16% to 18%.
These recent developments highlight the company's strategic initiatives and financial stability, even as it navigates the challenges of the current economic environment.
InvestingPro Insights
As Citizens Financial Group, Inc. (CFG) prepares for a change in its accounting leadership, investors can gain additional perspective on the company's financial health through recent metrics and analysis. According to InvestingPro, CFG has maintained dividend payments for 11 consecutive years, demonstrating a commitment to returning value to shareholders even amidst executive transitions. Moreover, analysts are optimistic about CFG's profitability, predicting the company will remain profitable this year, which aligns with CFG's performance over the last twelve months.
While the company manages internal changes, it's worth noting an area of concern highlighted by InvestingPro Tips: CFG suffers from weak gross profit margins. This is a key financial metric that investors may want to monitor as the company moves forward with its new accounting leadership. For those looking to delve deeper into CFG's financials and future outlook, InvestingPro offers additional insights and tips. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 3 additional InvestingPro Tips for Citizens Financial Group.
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