Citizens Financial Group

Methodology

Citizens Financial's regional bank operations serving New England and Mid-Atlantic markets create cyclical earnings tied to interest rates and credit quality. The company's consumer and commercial banking mix provides diversification within traditional lending. This calculation requires normalized assumptions about credit cycles—Citizens' earnings fluctuate meaningfully with economic conditions and rate environments, making mid-cycle assumptions more reliable than peak or trough results.

Methodology

Citizens' PEG ratio typically ranges from 0.8-1.5, often appearing attractive for a regional bank, though growth rates swing with credit and rate cycles. The company's deposit franchise and loan growth provide some differentiation, but regional banks face structural challenges from rate compression and fintech competition. Compare to other super-regional banks to assess whether Citizens' market positioning justifies its multiples relative to peers.

Methodology

Citizens Financial's dividend yield (typically 3.0-5.0%) provides meaningful return for investors in this regional banking franchise. The company's capital generation supports both dividends and share buybacks subject to regulatory approval and credit cycle positioning. PEGY is relevant for Citizens investors seeking total returns from regional banking, though dividend sustainability and growth depend on maintaining solid credit performance and navigating interest rate volatility.