Citizens Financial Group - Final Results
Royal Bank of Scotland Group PLC
2 December 1999
Results of The Royal Bank of Scotland Group's U.S. Subsidiary Citizens
Financial Group, Inc. for the year ended 30 September 1999.
The Royal Bank of Scotland Group plc is pleased to attach a copy of the
results of its U.S. subsidiary, Citizens Financial Group, Inc. for the year
ended 30 September 1999.
The financial information contained in the attached has been prepared in
accordance with accounting principles generally accepted in the United States
of America ('U.S. GAAP'). Citizens' profits before taxation for the year
ended 30 September 1999 based on U.K. GAAP and U.S. GAAP were as follows:-
Quarters Ended September 30, Year Ended September 30
1999 1998 1999 1998
(in millions)
U.K. GAAP $98.3 $140.2 $395.1 $409.2
U.S. GAAP $84.9 $126.0 $343.6 $355.5
2 December 1999
Contact: Heather Campion 001 401 455 5934
PROVIDENCE, RI -- Citizens Financial Group, Inc. ('Citizens') today
reported record operating income of $238 million for its fiscal year ending
September 30, 1999. Operating income increased 14% for the year, excluding a
prior year $55.4 million pretax gain and related tax effect on the disposal of
the bankcard portfolio. Prior year profits were $244.2 million, including the
gain. For the quarters ended September 30, 1999 and 1998, Citizens reported
net income of $65.6 million and $93.7 million, respectively. Excluding the
above-mentioned fourth quarter bankcard gain from 1998 results, operating
earnings increased 12% over the prior year's fourth quarter.
Citizens' balance sheet grew to $20 billion at September 30, 1999, up from
$17.3 billion a year ago, reflecting significant growth in loans and deposits.
Citizens had strong growth in its commercial loan and lease portfolios (28%)
and consumer loan portfolios (22%). Deposits also increased, with significant
growth in checking accounts (16%), savings accounts (8%), and checking with
interest products (9%). Increasing profits generated by Citizens' expanding
balance sheet were partially offset by increases in noninterest expenses,
primarily due to Y2K costs.
On October 1, 1999 Citizens completed the purchase of State Street Bank's
commercial banking business, acquiring assets of $2.7 billion. The
acquisition of UST Corp. Inc., expected to close in January 2000, will add
assets of $5.9 billion, bringing Citizens total assets to $28 billion. To
accommodate this growth, Citizens recently announced plans to open additional
operations facilities in Cranston, Rhode Island and Medford, Massachusetts.
These facilities will eventually house approximately 900 employees.
'This has been a tremendous year for Citizens. Throughout 1999 we had
substantial growth in our commercial, consumer, and deposit businesses. This
growth, combined with our acquisition of State Street's commercial banking
business, and our expected acquisition of USTrust in the new year, has given
Citizens considerable momentum in the marketplace,' said Lawrence K. Fish,
Chairman, President, and CEO of Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is a $22 billion financial services company
(including the October 1 1999 purchase of State Street Bank's commercial
banking business) headquartered in Providence, RI. With 277 branches and 560
ATMs, it operates as Citizens Bank in Connecticut, Massachusetts, New
Hampshire and Rhode Island. Citizens is a wholly owned subsidiary of The Royal
Bank of Scotland plc.
For more information, please contact us at our website www.citizensbank.com.
CITIZENS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
THREE MONTHS ENDED YEAR ENDED
SEPTEMBER 30 SEPTEMBER 30
(In thousands) 1999 1998 1999 1998
Interest income $331,217 $298,497 $1,253,789 $1,178,516
Interest expense 156,852 140,547 582,488 557,833
-------- -------- -------- --------
Net interest income 174,365 157,950 671,301 620,683
Provision for credit losses 9,337 5,476 22,066 22,698
------- ------- ------- -------
Net interest income after
provision for credit losses 165,028 152,474 649,235 597,985
-------- ------- ------- -------
Noninterest income 70,180 102,994 233,971 256,640
Noninterest expense 150,284 129,485 539,647 499,083
-------- ------- ------- -------
Income before taxes 84,924 125,983 343,559 355,542
Income taxes 19,327 32,284 105,590 111,304
-------- ------- ------- -------
Net income $ 65,597 $ 93,699 $ 237,969 $ 244,238
======== ======== ======== ========
CITIZENS FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
SEPTEMBER 30
(In Thousands) 1999 1998
Assets
------
Cash and due from banks $464,824 $466,913
Federal funds sold and other
Short-term investments 18,960 164,983
Securities 7,237,157 5,855,144
Loans and leases: 10,867,681 9,696,225
Less: Allowance for possible 182,099 181,236
credit losses
---------- ----------
Net loans and leases 10,685,582 9,514,989
---------- ----------
Goodwill and core deposit 575,521 616,489
intangible
Other assets 1,011,727 692,938
----------- -----------
Total assets $19,993,771 $17,311,456
=========== ===========
Liabilities and Stockholder's
Equity
-------------------------------
Deposits $14,490,056 $13,757,245
Borrowed funds 3,408,538 1,484,706
Other liabilities 221,884 220,967
---------- ----------
Total liabilities 18,120,478 15,462,918
---------- ----------
Stockholder's equity 1,873,293 1,848,538
---------- ----------
Total liabilities and $19,993,771 $17,311,456
stockholder's equity
---------- ----------
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