Citizens Financial Group Inc. made a couple of additions to its risk factors in its forward-looking statements disclosure, noting the potential for negative political conditions or changes in the competitive environment.
In a Feb. 22 Form 10-K, the bank's first risk factor was "negative economic and political conditions that adversely affect the general economy." In previous regulatory filings, Citizens did not have "and political" in the wording of the risk factor. Its second listed risk factor focused on general economic growth, but the Feb. 22 filing added an additional caveat to the statement regarding "changes in the competitive environment."
Some banks have cautioned that benefits from the Tax Cuts and Jobs Act of 2017 would be competed away as banks use the savings to lower the costs of their product offerings. Citizens also made a disclosure specific to the tax legislation, citing an accounting standards update issued in February. The standard allowed companies to reclassify the difference between the new and old corporate tax rates between retained earnings and accumulated other comprehensive income, or AOCI. Citizens retrospectively adopted the standard and reclassified $145 million from AOCI to retained earnings.