Citizens Financial Group in Providence, R.I., will end its indirect auto lending program on July 1.
The $222 billion-asset company said in a press release that the move is part of a strategy to optimize its balance sheet and emphasize relationship-based lending. Citizens will retain and service existing auto loans on its balance sheet.
“This decision further enables us to lend in areas that provide better risk-adjusted returns and improved opportunities to deepen relationships with our customers,” Eric J. Schuppenhauer, Citizens’ head of consumer lending, said in the release.
The company began reducing its active dealer relationships in the third quarter. Its auto loans outstanding fell by 6.5% in the first quarter from the end of 2022 and by 20.1% from a year earlier, to $11.5 billion.