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Citizens Financial Group CEO on q2 earnings beat, loan growth and impact of tariffs on consumers
CNBC Television • 3:13 minutes • Published 2025-07-17 • YouTube
📝 Transcript (105 entries):
Peacock. >> Welcome back. Take a look at Citizens Financial Group higher this morning. After a beat on the top and bottom lines, with net interest income in line with expectations, forecasting a constructive environment heading into the second half. Joining us now in a CNBC exclusive
interview is Citizens Financial Group CEO Bruce Benson. You know, Bruce, if we told you, you know, in early April that all regional banks, big banks are going to report healthy numbers, improving outlooks and confidence, it would have been hard to believe, given the concern around tariffs. What are you seeing?
>> Yeah. It's come around very nicely from a bit of concerning outlook early in the quarter. But I would say once the worst case outcomes were off the table and the Liberation Day tariffs got extended out and it became clearer that Trump was negotiating for fairer trade.
But kind of those worst case outcomes were likely off the table. Then some of that pent up demand to start doing business for private equity, to put money to work and start exiting some of their investments, all started to kick in. So I'd say as the quarter went on, things really started to pick up. And now we're looking at a second
half that could be quite positive. Notwithstanding the fact that tariffs are back in vogue again for the current month.
>> What does that mean for both consumer and commercial loan growth? >> Well, I'd say one highlight of the quarter is that we saw loan growth across all three of our big segments. So we had some loan growth in consumer taste by home equity line of credit and mortgage, the private bank as it grows its market position has some nice loan growth. And then even in commercial we had growth across not only the sponsor side of who we cover but also in the corporate bank. So line utilization is picking up. So I do think, you know, folks are now a little cautious again, but
not to the same degree they were back in April. So I think things will continue here in the second half. >> Yeah. Bruce that's we keep talking about this sort of behavioral economic question of why the market's more comfortable now. Is it because they don't think the tariffs will get any worse or because they or and or they believe they can deal with sort of the baselines that are creeping into consensus.
>> Yeah, I'd say if one thing is very clear, over the last five years, we've had huge amount of disruption across first the pandemic, then inflation kicking in the fed moving higher. Now tariffs. I think all market participants have have haven't to become more adaptable more resilient. And so you can see that now that companies have done their situational planning they've looked at their supply chains. If they're in the manufacturing space how do if this happens and what's my next move. And so I think people are just sharper. They're proving to be resilient and proving to be adaptive. And then individuals also I think they still have a desire. The economy still seems good. Unemployment hasn't gone up too high, but people are still willing, willi