Citizens CEO Plots a Continued Expansion of Wealth Businesses
Since last year, Citizens has hired around 220 private-bank employees, Van Saun said Tuesday — an investment that has so far cost the Providence, Rhode Island-based bank, but will add significantly to earnings moving forward, with executives hoping the bottom line will be boosted next year, he said.
Regional lenders such as Citizens have been closely monitoring the commercial real estate market as pandemic-spurred vacancies have persisted and interest rates are remaining higher for longer, pushing up borrowing costs.
Van Saun recently likened the loan troubles to a “pig going through the python” — a slow-moving situation that is working itself out, without surprises.
“We have plenty of capital, plenty of reserves, to handle it,” he said, after warning last week that the lender’s reserves may remain high for the next few quarters. He reiterated Tuesday that the majority of the risk remains in office-linked commercial real estate, while other segments remain healthy.
(Credit: Bloomberg)
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