The yield on Citizens Financial Group Inc.’s home-equity portfolio has skyrocketed 390 basis points over the past year. Meantime, the portfolio continued to expand.
The Providence, Rhode Island-based organization’s investment portfolio included $14.135 billion in home-equity assets as of the end of last month, the first-quarter 2023 earnings report indicated.
Citizen’s home-equity portfolio was up from $14.043 billion at the end of 2022 and expanded nearly $2 billion from $12.264 billion as of March 31, 2022.
At 765, there was no change in the average home-equity FICO score. Citizens noted that 42 percent of its home-equity assets are secured by a first lien, and 97 percent have a combined loan-to-value ratio of less than 80 percent.
The average annualized yield on the book of home-equity product was 6.92 percent in the first-quarter 2023, skyrocketing from just 3.02 percent a year earlier.
Home-equity assets accounted for 19 percent of the retail loan portfolio, the same as in the prior period.
Delinquency of at least 30 days, including nonaccrual, on home-equity loans was 2.34 percent, a little higher than 2.32 percent as of Dec. 31, 2022.
Company-wide net income during the first-three months of this year was $511 million, dropping from $653 million in the fourth-quarter 2022 but climbing from $420 million in the first quarter of last year.
“The first quarter brought unexpected challenges in the environment, but we proved adaptable and resilient, successfully navigating through them and delivering solid financial results,” Citizens Financial Group Chairman and CEO Bruce Van Saun stated in the news release.