RBS Citizens lost $62M in first quarter
PROVIDENCE – Citizens Financial Group Inc.’s largest division lost $61.68 million in the first quarter, an improvement over the $98.63 million loss the bank recorded in the same period last year, the bank said in a Federal Deposit Insurance Corporation filing.
But RBS Citizens N.A.’s credit portfolio continued to show signs of deterioration, as the bank wrote off $520.2 million in loans in the three months ended March 31, up from $450.6 million in loan charge-offs in last year’s first quarter.
Nevertheless, RBS Citizens reduced its quarterly loan-loss provision in anticipation of bad loans to $479.37 million, down from $608.81 million in the first quarter of 2009.
RBS Citizens is the holding company for most Citizens and Charter One banks, including Citizens Bank’s operations in Rhode Island and Massachusetts. It is one of Citizens Financial Group’s two bank subsidiaries, the other being Citizens Bank of Pennsylvania.
RBS Citizens, Rhode Island’s largest bank by deposits, posted $1.38 billion in interest and non-interest income for the first quarter, nearly 15 percent less than the $1.62 billion the bank posted in the same period a year ago.
As with most other banks, RBS Citizens has benefited from paying lower interest rates on products such as savings accounts and certificates of deposit.
The bank’s total interest expense was $361.22 million in the first quarter, down nearly a third from the $534.67 million in the same period of 2009.
Citizens Financial Group is owned by the British financial giant Royal Bank of Scotland, which has its own balance sheet problems. RBS – which is 84 percent owned by the U.K. government after a $74 billion bailout – has already warned it expects to lose money again this year.
Additional information is available at citizensbank.com.
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