Citizens Private Banking Growth (with Matt Miller)

Citizens CEO Bruce Van Saun discusses the bank's successful build-out of a private banking business post-First Republic failure, now with $16B deposits and 25% ROE. He sees the lower-end consumer as 'adapting' not cracking, with low unemployment as key support. Private credit issues are idiosyncratic, not systemic.

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Citizens Private Banking Growth (with Matt Miller)

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I don't think they're cracking. I think they're adapting. The fundamental thing that's really important is unemployment is low and people have jobs. As long as we have that, I think the lower end customer holds in.

Bruce Van Saun

After West Coast banks failed in 2023, Citizens hired the best people from First Republic and built a private banking business with over 600 people, $16B deposits, $8B loans, $10B client wealth assets. It's now 10% of bottom line, growing to mid-teens, making 25% ROE vs First Republic's 11%.
Bruce Van Saun

The lower-end consumer is not cracking but adapting. They're more stretched because wages didn't keep up with inflation, but they're slowly gaining. The key is unemployment is low and people have jobs - as long as that holds, the lower-end customer holds in.
Bruce Van Saun

Private credit issues like First Brands and Tricolor were really fraud-related, not systemic. There will be a period of consolidation in private credit but it's here to stay. On tariffs, businesses are getting good at scenario planning - some costs can be pushed to customers or vendors.

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