Citizens Financial Group Preferred D Shares Offering Yields Near 9.5%
December 3, 2023
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Citizens Financial ($NYSE:CFG) Group is a leading financial services institution that serves consumers, small businesses, and commercial customers across the United States. The company recently announced a preferred D share offering that is expected to yield near 9.5%. This is an attractive offer for those looking for reliable income without having to take on too much risk. The preferred D shares are intended to provide additional capital to the company and will be available for purchase from existing shareholders. The offering is expected to raise approximately $1 billion, which will be used for general corporate purposes.
Additionally, the shares are non-callable for the first five years, providing investors with a stable income stream for that time frame. The offering is an appealing one for investors seeking reliable income. The 9.5% yield is above the current market average and provides a great opportunity for investors to earn a steady return on their investment. Furthermore, the shares are non-callable for five years, making it an even more secure option. Overall, the Citizens Financial Group Preferred D Share offering is an attractive opportunity for investors looking for steady income without taking on excessive risk. With its expected yield of 9.5%, and non-callable status for the first five years, this offering provides an excellent opportunity for anyone looking to invest in a reliable financial institution.
Analysis
GoodWhale is the perfect tool to analyze CITIZENS FINANCIAL‘s financials. Our Star Chart gave this company a high health score of 9/10, showing that it has the capability to pay off debt and fund future operations. CITIZENS FINANCIAL is strong in dividend, and medium in growth, profitability, and asset. On top of that, it is classified as ‘cheetah’, which means that it has achieved high revenue or earnings growth but may be considered less stable due to lower profitability. In light of this information, investors who are interested in high growth potential with some risk may be interested in CITIZENS FINANCIAL. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Citizens Financial. More…
| Total Revenues | Net Income | Net Margin |
| – | 1.95k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Citizens Financial. More…
| Operations | Investing | Financing |
| 4.12k | -12.64k | 9.91k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Citizens Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 225.27k | 202.39k | – |
Key Ratios Snapshot
Some of the financial key ratios for Citizens Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Peers
In recent years, the banking industry has become increasingly competitive. This is especially true for regional banks, which are facing increased competition from larger banks as well as online-only banks. Citizens Financial Group is one of the largest regional banks in the United States, with over $150 billion in assets. The company operates in more than 20 states and has over 1,200 branches. Its main competitors are NBT Bancorp, Keiyo Bank, and Southern Missouri Bancorp. All three of these banks are smaller than Citizens, but they have been growing rapidly in recent years.
– NBT Bancorp Inc ($NASDAQ:NBTB)
NBT Bancorp Inc. is a financial holding company that operates through its subsidiaries, which include NBT Bank, NBT Insurance Agency, and Penn Square Partners. The company has a market capitalization of $1.84 billion as of 2022. NBT Bancorp is headquartered in Norwich, New York and has more than 160 branches across upstate New York, northwestern Vermont, western Massachusetts, and northeastern Pennsylvania. The company’s primary business activities include commercial banking, retail banking, and asset management.
– Keiyo Bank Ltd ($TSE:8544)
Keiyo Bank Ltd is a Japanese bank with a market cap of 62.52B as of 2022. The company has over 2,000 branches and provides banking services to individuals and businesses. Services include savings and checking accounts, loans, credit cards, and investment products.
– Southern Missouri Bancorp Inc ($NASDAQ:SMBC)
Southern Missouri Bancorp Inc is a bank holding company that operates through its subsidiary, Southern Bank. The company offers a range of banking services to clients in Missouri, Arkansas, and Tennessee. As of 2022, the company had a market cap of 499 million dollars.
Summary
Investors looking for high yield investments may be interested in the Citizens Financial Group Preferred D Shares, which are set to float at yields near 9.5%. This investment provides a high dividend yield, which is well above the average yield for similar types of investments. The dividend payment is also paid quarterly, providing investors with a reliable source of income.
Additionally, preferred share dividends are paid ahead of the common stock dividends in the event of a dividend cut or suspension, providing extra security for investors. Given the high yield and reliable payments, Citizens Financial Group Preferred D Shares are an attractive option for investors seeking a reliable source of income.
