Citizens Financial Group, Inc. (NYSE:CFG) has announced that it will proceed with its share repurchase plan following the stress test conducted by the Board of Governors of the Federal Reserve System. The preliminary Stress Capital Buffer (SCB) of 4.0%, effective from October 1, 2023, signals the strength of the company’s capital position and its ability to support customer needs and pursue organic growth initiatives.
The SCB also implies a regulatory minimum Common Equity Tier 1 (CET1) ratio of 8.5%, higher than the previous 7.9%. The company expects its CET1 ratio for the second quarter of 2023 to exceed the regulatory minimum by approximately 175 basis points, highlighting the robustness of its capital strength.
Citizens Financial Group, Inc. has remaining capacity under its Board of Directors’ authorization of common share repurchases, amounting to $1.344 billion as of June 30, 2023. This allows the company to continue returning capital to shareholders while maintaining its strong capital position.
John F. Woods, Vice Chairman and Chief Financial Officer of Citizens Financial Group, expressed satisfaction with the stress test results, noting the company’s resilience and the lower capital drawdown indicated in their own stress test results compared to the Federal Reserve’s models.
This news reaffirms the market’s confidence in Citizens Financial Group, Inc. and its ability to navigate challenging economic conditions while prioritizing shareholder returns. The company’s strong capital position provides a solid foundation for its ongoing growth and customer-focused initiatives.
As Citizens Financial Group, Inc. moves forward, it will continue to leverage its financial strength to meet the evolving needs of its customers and deliver value to its shareholders.
