8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 26, 2015

CITIZENS FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-36636	05-0412693
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

One Citizens Plaza Providence, RI	02903
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: (401) 456-7000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On January 26, 2015, Citizens Financial Group, Inc. issued a press release reporting fourth quarter and full year 2014 earnings and posted on its website the press release, an earnings release presentation, and a financial supplement. Copies of the press release, earnings release presentation, and financial supplement are being furnished as Exhibits 99.1, 99.2 and 99.3, respectively.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibit 99.1	Citizens Financial Group, Inc. press release dated January 26, 2015
	Exhibit 99.2	Citizens Financial Group, Inc. earnings release presentation issued January 26, 2015
	Exhibit 99.3	Citizens Financial Group, Inc. financial supplement for fourth quarter and full year 2014

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CITIZENS FINANCIAL GROUP, INC.
By:	/s/ John Fawcett
	John Fawcett
	Chief Financial Officer

Date: January 26, 2015

EXHIBIT INDEX

Exhibit Number	Description
99.1	Citizens Financial Group, Inc. press release dated January 26, 2015
99.2	Citizens Financial Group, Inc. earnings release presentation issued January 26, 2015
99.3	Citizens Financial Group, Inc. financial supplement for fourth quarter and full year 2014

EX-99.1

Exhibit 99.1

Citizens Financial Group, Inc., Reports Fourth Quarter Net Income of $197 Million, or $0.36 Diluted EPS

2014 Net Income of $865 Million, or $1.55 Diluted EPS

Fourth quarter 2014 Adjusted net income, excluding net restructuring charges and special items,

of $217 million, or $0.39 diluted EPS*

Full-year 2014 Adjusted net income* of $790 million, up 18% from 2013

Fourth quarter diluted EPS up 33% from fourth quarter 2013, and up 30% on an Adjusted basis*

Adjusted ROTCE* of 6.8% in the fourth quarter 2014 compared with 5.2% in the fourth quarter 2013

PROVIDENCE, RI (January 26, 2015) Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reports fourth quarter net income of $197 million, or $0.36 per diluted common share, compared with $189 million, or $0.34 per diluted common share, for the third quarter 2014, and $152 million, or $0.27 per diluted common share, for the fourth quarter 2013. Fourth quarter 2014 results were reduced by $0.03 per diluted common share related to net restructuring charges and special items, versus $0.02 in the third quarter 2014 as detailed in the Discussion of Results portion of this release. Fourth quarter Adjusted diluted EPS* of $0.39 compares with $0.36 in the third quarter 2014, and $0.30 in the fourth quarter 2013.

2014 net income of $865 million, or $1.55 per diluted common share, increased from a loss of $3.4 billion, or ($6.12) per diluted common share in 2013, which included a $4.1 billion after-tax goodwill impairment charge. 2014 Adjusted net income* of $790 million, or $1.42 per diluted share, increased 18% from the prior year. 2014 Adjusted total revenue* of $4.7 billion was in line with 2013.

Citizens also announced that its board of directors declared a quarterly cash dividend of $0.10 per common share. The dividend is payable on February 19, 2015 to shareholders of record at the close of business on February 5, 2015.

“2014 was a pivotal year for Citizens as we took decisive steps to enhance our business model, grow our balance sheet and improve our financial performance,” said Bruce Van Saun, Chairman and Chief Executive Officer. “I am proud of all we’ve accomplished in a very short period of time. Following our successful initial public offering in the third quarter, we are laser-focused on the execution of our plan to drive continued improvement in profitability and deliver the best possible banking experience for our customers. Our ability to robustly grow loans and deposits in 2014 reflects the strength of our offerings and customer relationships, and our improving efficiency ratio shows that we are pursuing growth opportunities while maintaining good expense discipline.”

Return on Average Tangible Common Equity* (“ROTCE”) was 6.12% in the fourth quarter 2014 compared to 5.81% in the third quarter 2014 and 4.71% in the fourth quarter 2013. Adjusted ROTCE* for the fourth quarter 2014 was 6.76% compared to 6.22% for the third quarter 2014 and 5.24% in the fourth quarter 2013, driven by improvement in underlying pre-provision profit and the benefit of the continued re-alignment of our capital structure which lowered average tangible common equity.

* These are non-GAAP financial measures. Please see Non-GAAP Reconciliation Tables at the end of this release for an explanation of our use of non-GAAP financial measures and their reconciliation to GAAP. All references to “Adjusted” results exclude restructuring charges and special items.

Citizens Financial Group, Inc.

Key Highlights

Fourth Quarter 2014 vs. Third Quarter 2014

• Fourth quarter highlights include 3% average loan growth, continued overall strong credit quality and good expense discipline.

Results

• Total revenue of $1.2 billion, up 2%.

• Net interest income of $840 million increased by $20 million, reflecting an increase in average interest-earning assets and improved yields as the net interest margin improved three basis points to 2.80%.

• Noninterest income of $339 million was up $5 million excluding the impact of a change in mortgage servicing-rights valuation.

• Adjusted noninterest expense* of $791 million remained broadly flat.

• Adjusted efficiency ratio* of 67% improved 91 basis points.

• Pre-provision profit of $355 million; adjusted pre-provision profit* of $388 million increased by $16 million, driven by higher net interest income.

• Provision for credit losses of $72 million decreased $5 million, reflecting continued disciplined underwriting and overall improvement in credit quality.

Balance Sheet

• Average loans and leases increased $2.4 billion, or 3%, on strength in both retail and commercial loans.

• Average deposits increased $3.1 billion, or 3%, driven by strength across all product categories.

• Nonperforming loans and leases to total loans and leases remained relatively stable at 1.18%. Allowance coverage of NPLs was stable at 109% in fourth quarter 2014 relative to 111% in the third quarter 2014.

• Capital strength remained robust with a Tier 1 common equity ratio of 12.4%.

• Successfully issued $1.5 billion of senior notes during the quarter, further diversifying our funding base and enhancing contingent liquidity.

2

Citizens Financial Group, Inc.

Full Year 2014 vs. Full Year 2013

• Adjusted total revenue* of $4.7 billion remained consistent with 2013 levels despite a $116 million reduction in securities gains.

• Adjusted noninterest expense* of $3.2 billion remained broadly flat.

• Adjusted net income* of $790 million increased by $119 million, or 18%.

• Adjusted ROTCE* of 6.13% was up 105 basis points.

• Total assets increased 9% compared to year end 2013, driven by loan growth of 9%.

• Achieved well against major annual initiatives:

– Completed largest traditional bank IPO in U.S. history; operationally separated from The Royal Bank of Scotland Group plc and delivered public-company readiness.

– Sold Chicago-area branch network for a 6% deposit premium.

– Executed $1.0 billion of capital conversion transactions.

Update on Plan Execution

• Continued execution on initiatives intended to drive growth and enhance efficiency:

– Progress in recruiting mortgage loan officers: 412 at year end, up 62 net for 2014 with 41 net in the fourth quarter as attrition has slowed.

– Period-end loan growth of $7.6 billion broadly on target with $3.8 billion in commercial, $3.3 billion in auto, and a net $0.5 billion across other portfolios.

– Expense initiatives delivering against milestones with 28% of targeted efficiency initiative savings in 2014; remain on track to reach our savings target of $200 million by 2016.

	Quarterly trends															Full year
Earnings highlights										4Q14 change from												2014 Change
($s in millions, except per share data)	4Q14			3Q14			4Q13			3Q14			4Q13			2014			2013			from 2013
Net interest income	$	840		$	820		$	779		$	20		$	61		$	3,301		$	3,058		$	243
Noninterest income		339			341			379			(2	)		(40	)		1,678			1,632			46
Total revenue		1,179			1,161			1,158			18			21			4,979			4,690			289
Noninterest expense		824			810			818			14			6			3,392			7,679			(4,287	)
Profit (loss) before provision for credit losses		355			351			340			4			15			1,587			(2,989	)		4,576
Provision for credit losses		72			77			132			(5	)		(60	)		319			479			(160	)
Net income (loss)	$	197		$	189		$	152		$	8		$	45		$	865		$	(3,426	)	$	4,291
After-tax restructuring charges and special items		(20	)		(13	)		(17	)		(7	)		(3	)		75			(4,097	)		4,172
Net income, excluding restructuring charges and special items*	$	217		$	202		$	169		$	15		$	48		$	790		$	671		$	119
Average common shares outstanding
Basic (in millions)		546.8			560.0			560.0			(13	)		(13	)		556.7			560.0			(3	)
Diluted (in millions)		550.7			560.2			560.0			(10	)		(9	)		557.7			560.0			(2	)
Diluted earnings per share	$	0.36		$	0.34		$	0.27		$	0.02		$	0.09		$	1.55		$	(6.12	)	$	7.67
Diluted earnings per share, excluding restructuring charges and special items*	$	0.39		$	0.36		$	0.30		$	0.03		$	0.09		$	1.42		$	1.20		$	0.22
Financial ratios
Net interest margin		2.80	%		2.77	%		2.83	%		3	bps		(3	) bps		2.83	%		2.85	%		(2	) bps
Noninterest income as a % of total revenue		28.8			29.4			32.7			(62	) bps		(398	) bps		33.7			34.8			(110	) bps
Effective income tax rate		30.6			30.8			26.9			(25	) bps		369	bps		31.8			1.2			3,059	bps
Efficiency ratio*		70			70			71			4	bps		(74	) bps		68			164			(9,561	) bps
Efficiency ratio, excluding restructuring charges and special items*		67			68			68			(91	) bps		(124	) bps		69			69			9	bps
Return on average tangible common equity*		6.12			5.81			4.71			31	bps		141	bps		6.71			(25.91	)		3,262	bps
Return on average tangible common equity excluding restructuring charges and special items*		6.76			6.22			5.24			54	bps		152	bps		6.13			5.08			105	bps
Return on average common equity		4.06			3.87			3.12			19	bps		94	bps		4.46			(15.69	)		2,015	bps
Return on average total assets		0.60			0.58			0.50			2	bps		10	bps		0.68			(2.83	)		351	bps
Return on average total tangible assets*		0.63	%		0.61	%		0.53	%		2	bps		10	bps		0.71	%		(3.05	)%		376	bps
Capital adequacy(1),(2)
Tier 1 common equity ratio		12.4	%		12.9	%		13.5	%								12.4	%		13.5	%
Total capital ratio		15.8			16.1			16.1									15.8			16.1
Leverage ratio		10.6	%		10.9	%		11.6	%								10.6	%		11.6	%
Asset quality(2)
Total nonperforming loans and leases as a % of total loans and leases		1.18	%		1.19	%		1.65	%		(1	) bps		(47	) bps		1.18	%		1.65	%		(47	) bps
Allowance for loan and lease losses as a % of loans and leases		1.28			1.32			1.42			(4	) bps		(14	) bps		1.28			1.42			(14	) bps
Allowance for loan and lease losses as a % of nonperforming loans and leases		108.51	%		111.30	%		86.17	%		(279	) bps		2,234	bps		108.51	%		86.17	%		2,234	bps
Net charge-offs as a % of average loans and leases		0.35			0.38			0.53			(3	) bps		(18	) bps		0.36			0.59			(23	) bps

^*  These are non-GAAP financial measures. Please see Non-GAAP Reconciliation Tables at the end of this release for an explanation of our use of non-GAAP financial measures and reconciliation of those non-GAAP financial measures to GAAP. All references to Adjusted results exclude restructuring charges and special items.

¹  Current reporting period regulatory capital ratios are preliminary.

²  Capital adequacy and asset quality ratios calculated on a period-end basis, except net charge-offs.

3

Citizens Financial Group, Inc.

Discussion of Results:

Fourth quarter 2014 results were reduced by a net $20 million after-tax, or $0.03 per diluted share, of restructuring charges and special items, largely related to efforts to improve processes and enhance efficiencies, as well as rebranding and separation from The Royal Bank of Scotland Group plc (“RBS”). Third quarter 2014 results were reduced by a net $13 million after-tax, or $0.02 per share, of restructuring charges and special items. Fourth quarter 2013 results were reduced by a net $17 million after-tax, or $0.03 per share, of restructuring charges and special items.

Full-year 2014 net income benefited from a net $75 million, or $0.13 per diluted share, of after-tax restructuring charges and special items, compared with 2013 net income which was reduced by a net $4.1 billion, or $7.32 per diluted share, of after-tax restructuring charges and special items.

In addition to the restructuring charges and special items associated with the Chicago Divestiture that have been excluded from 2014 Adjusted Results*, the second quarter 2014 Chicago Divestiture also reduced fourth quarter 2014 results, as compared to the fourth quarter of 2013, by the following estimated amounts: $13 million in net interest income, $12 million in noninterest income and $21 million in noninterest expense. The full-year 2014 effect of the Chicago Divestiture as compared to 2013, reduced results by the following estimated amounts: $26 million in net interest income, $24 million in noninterest income and $42 million in noninterest expense.

Fourth quarter 2014 net income of $197 million increased $8 million, or 4%, from the third quarter 2014, and increased $45 million, or 30%, from the fourth quarter 2013. Full-year 2014 net income of $865 million increased from a loss of $3.4 billion in 2013, which included a $4.1 billion goodwill impairment charge. Results included the following restructuring charges and special items which largely related to our Chicago Divestiture and our separation from RBS, as well as efforts to improve processes and enhance efficiency.

	as of and for the three months ended												as of and for the twelve months ended
Restructuring charges and special items	December 31, 2014						September 30, 2014						December 31, 2014				December 31, 2013
($s in millions, except per share data)	pre-tax			after-tax			pre-tax			after-tax			pre-tax		after-tax		pre-tax			after-tax
Noninterest income special items:
Other income
Net Gain on Chicago Divestiture	$	—		$	—		$	—		$	—		$	288	$	180	$	—		$	—
Total noninterest income special items	$	—		$	—		$	—		$	—		$	288	$	180	$	—		$	—
Noninterest expense restructuring charges and special items:
Salaries and employee benefits
Chicago Divestiture	$	—		$	—		$	—		$	—		$	3	$	2	$	—		$	—
Efficiency initiatives		(1	)		—			—			—			39		24		5			3
Separation/IPO related		1			—			—			—			1		1		—			—
Other		1			—			—			—			1		—		—			—
Non-compensation expense
Chicago Divestiture		—			—			—			—			14		9		—			—
Efficiency initiatives		11			8			1			—			58		37		—			—
Separation/IPO related		7			3			5			3			19		10		—			—
Other		14			9			15			10			34		22		21			14
Goodwill impairment		—			—			—			—			—		—		4,435			4,080
Total noninterest expense restructuring charges and special items	$	33		$	20		$	21		$	13		$	169	$	105	$	4,461		$	4,097
Net restructuring charges and special items	$	(33	)	$	(20	)	$	(21	)	$	(13	)	$	119	$	75	$	(4,461	)	$	(4,097	)
Diluted EPS impact				$	(0.03	)				$	(0.02	)			$	0.13				$	(7.32	)

4

Citizens Financial Group, Inc.

	Quarterly trends												Full year
Adjusted results*							4Q14 change from										2014 Change
($s in millions)	4Q14		3Q14		4Q13		3Q14			4Q13			2014		2013		from 2013
Net interest income	$	840	$	820	$	779	$	20		$	61		$	3,301	$	3,058	$	243
Adjusted noninterest income *		339		341		379		(2	)		(40	)		1,390		1,632		(242	)
Adjusted total revenue*		1,179		1,161		1,158		18			21			4,691		4,690		1
Adjusted noninterest expense *		791		789		792		2			(1	)		3,223		3,218		5
Adjusted pre-provision profit*		388		372		366		16			22			1,468		1,472		(4	)
Provision for credit losses		72		77		132		(5	)		(60	)		319		479		(160	)
Adjusted pretax income*		316		295		234		21			82			1,149		993		156
Adjusted income tax expense *		99		93		65		6			34			359		322		37
Adjusted net income*	$	217	$	202	$	169	$	15		$	48		$	790	$	671	$	119

Adjusted net income* of $217 million in the fourth quarter 2014 increased $15 million, or 7%, from the third quarter 2014 driven by an $18 million increase in total revenue and a $5 million decrease in provision for credit losses. Adjusted pre-provision profit* increased $16 million from the third quarter 2014 driven by higher net interest income, reflecting an increase in average interest-earning assets.

Fourth quarter 2014 Adjusted net income* increased $48 million, or 28%, from $169 million in the fourth quarter 2013, driven by a $60 million decrease in provision expense related to continued improvement in credit quality. Adjusted pre-provision profit* increased $22 million from the fourth quarter 2013 as growth in net interest income and capital markets fees was largely offset by lower securities gains, other income, and service charges and fees.

Net interest income										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$			%
Interest income:
Interest and fees on loans and leases and loans held for sale	$	779		$	756		$	745		$	23			3	%	$	34			5	%
Investment securities		161			155			129			6			4			32			25
Interest-bearing deposits in banks		1			2			2			(1	)		(50	)		(1	)		(50	)
Total interest income	$	941		$	913		$	876		$	28			3	%	$	65			7	%
Interest expense:
Deposits	$	48		$	41		$	40		$	7			17	%	$	8			20	%
Federal funds purchased and securities sold under agreement to repurchase		7			9			42			(2	)		(22	)		(35	)		(83	)
Other short-term borrowed funds		19			21			1			(2	)		(10	)		18			1,800
Long-term borrowed funds		27			22			14			5			23			13			93
Total interest expense	$	101		$	93		$	97		$	8			9	%	$	4			4	%
Net interest income	$	840		$	820		$	779		$	20			2	%	$	61			8	%
Net interest margin		2.80	%		2.77	%		2.83	%		3	bps					(3	) bps

Net interest income of $840 million in the fourth quarter 2014 increased $20 million, or 2%, compared with the third quarter 2014, driven largely by a $2.4 billion increase in average loans and leases, higher investment portfolio income, and a reduction in pay-fixed swap costs, partially offset by higher subordinated debt borrowing costs and deposit costs.

Fourth quarter net interest income increased $61 million, or 8%, from the fourth quarter 2013, as the benefit of growth in average interest-earning assets, a reduction in pay-fixed swap costs and improved securities yields was partially offset by continued pressure from the relatively persistent low-rate environment on loan yields and mix, higher borrowing costs related to subordinated debt issuances, and the estimated $13 million effect of the Chicago Divestiture.

Net interest margin increased three basis points to 2.80% in the fourth quarter 2014, from 2.77% in the third quarter 2014, largely as the benefit of higher securities portfolio income and loan growth was partially offset by the impact of higher borrowing costs related to the issuance of subordinated debt, increased deposit costs, and a shift in loan mix toward variable-rate products and auto loans.

5

Citizens Financial Group, Inc.

Compared to the fourth quarter 2013, net interest margin decreased three basis points as the benefit of a reduction in pay-fixed swap costs was more than offset by a reduction in loan spreads, reflecting the impact of the relatively persistent low-rate environment on loan yields, and higher borrowing costs related to the issuance of subordinated debt and senior notes.

Noninterest Income							4Q14 change from
($s in millions)	4Q14		3Q14		4Q13		3Q14						4Q13
							$			%			$			%
Service charges and fees	$	144	$	144	$	152	$	—			—	%	$	(8	)		(5	)%
Card fees		58		58		58		—			—			—			—
Trust and investment services fees		38		39		40		(1	)		(3	)		(2	)		(5	)
Foreign exchange and trade finance fees		25		26		24		(1	)		(4	)		1			4
Capital markets fees		25		22		18		3			14			7			39
Mortgage banking fees		16		21		20		(5	)		(24	)		(4	)		(20	)
Securities gains, net		1		2		25		(1	)		(50	)		(24	)		(96	)
Other income		32		29		42		3			10			(10	)		(24	)
Noninterest income	$	339	$	341	$	379	$	(2	)		(1	)%	$	(40	)		(11	)%

Noninterest income of $339 million in the fourth quarter 2014 was up approximately $5 million relative to the third quarter of 2014 excluding a $7 million decrease in mortgage servicing rights valuation. Growth in capital markets fees and other income led the way, with all other categories relatively stable.

Noninterest income decreased $40 million from the fourth quarter 2013, largely as growth in capital markets and foreign exchange and trade finance fees was more than offset by a net $34 million reduction in securities gains and other income, and an $8 million decrease in service charges and fees, which included an estimated decrease of $11 million tied to the effect of a check posting-order change and the impact of the Chicago Divestiture. Additionally, mortgage banking and trust and investment services fees were lower.

Noninterest expense							4Q14 change from
($s in millions)	4Q14		3Q14		4Q13		3Q14						4Q13
							$			%			$			%
Salaries and employee benefits	$	397	$	409	$	391	$	(12	)		(3	)%	$	6			2	%
Outside services		106		106		101		—			—			5			5
Occupancy		81		77		83		4			5			(2	)		(2	)
Equipment expense		63		58		68		5			9			(5	)		(7	)
Amortization of software		43		38		32		5			13			11			34
Other operating expense		134		122		143		12			10			(9	)		(6	)
Total noninterest expense	$	824	$	810	$	818	$	14			2	%	$	6			1	%
Restructuring charges and special items		33		21		26		12			57			7			27
Total noninterest expense, excluding restructuring charges and special items*	$	791	$	789	$	792	$	2			—		$	(1	)		—

Noninterest expense of $824 million in the fourth quarter 2014 increased $14 million from the third quarter 2014, largely reflecting a $12 million increase in restructuring charges and special items from the third quarter 2014.

Adjusted noninterest expense* remained broadly flat with the third quarter 2014, as a number of unusual items, largely in other operating expense, broadly offset while our savings initiatives helped to fund continued investments in the businesses to drive future revenue growth.

6

Citizens Financial Group, Inc.

Noninterest expense in the fourth quarter 2014 increased $6 million from the fourth quarter 2013, largely as higher amortization of software expense, salaries and employee benefits, and outside services costs were partially offset by a reduction in other operating expense, equipment expense and occupancy expense, as well as an estimated $21 million decrease related to the Chicago Divestiture. These results reflected a $7 million increase in restructuring charges and special items from the fourth quarter 2013.

Adjusted noninterest expense* was in-line with the fourth quarter 2013 as lower outside services and other expense was more than offset by an increase in salaries and employee benefits, occupancy, and amortization of software.

The company’s effective tax rate was 30.6% in the fourth quarter 2014, compared to 30.8% in the third quarter 2014, and 26.9% in the fourth quarter 2013.

Consumer Banking Segment										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$			%
Net interest income	$	536		$	532		$	543		$	4			1	%	$	(7	)		(1	)%
Noninterest income		218			226			235			(8	)		(4	)		(17	)		(7	)
Total revenue		754			758			778			(4	)		(1	)		(24	)		(3	)
Noninterest expense		611			609			638			2			—			(27	)		(4	)
Profit before provision for credit losses		143			149			140			(6	)		(4	)		3			2
Provision for credit losses		64			66			65			(2	)		(3	)		(1	)		(2	)
Income before income tax expense		79			83			75			(4	)		(5	)		4			5
Income tax expense		27			29			25			(2	)		(7	)		2			8
Net income	$	52		$	54		$	50		$	(2	)		(4	)%	$	2			4	%
Average balances
Total loans and leases (1)	$	49,351		$	47,848		$	44,790		$	1,503			3	%	$	4,561			10	%
Total deposits		66,374			65,609			71,423			765			1	%		(5,049	)		(7	)%
Key metrics
ROTCE (2)*		4.30	%		4.57	%		4.40	%		(27	) bps					(10	) bps
Efficiency ratio*		81	%		80	%		82	%		67	bps					(75	) bps

¹ Includes held for sale.

² Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. We approximate that regulatory capital is equivalent to a sustainable target level of common equity Tier 1 and then allocate that approximation to the segments based on economic capital.

Consumer Banking net income of $52 million for the fourth quarter 2014 decreased $2 million, or 4%, compared to the third quarter 2014, as the impact of lower revenues and higher expenses was partially offset by a decrease in provision for credit losses. Net interest income increased $4 million, or 1%, from the third quarter 2014, largely as the benefit of growth in auto, mortgage and student loans, coupled with improved loan yields, was partially offset by an increase in deposit costs. Noninterest income decreased $8 million, or 4%, from the third quarter of 2014, driven by a $5 million reduction in mortgage banking fees, which included a $7 million impact of a change in mortgage servicing rights valuation reserve, as well as lower card fees and other income. Noninterest expense of $611 million increased $2 million from the third quarter 2014, driven by increased advertising expense largely related to the launch of a new education refinance product, as well as higher occupancy and equipment expense. Provision for credit losses of $64 million decreased $2 million, or 3%, reflecting continued improvement in credit quality.

Net income of $52 million for the fourth quarter 2014 was relatively stable with the fourth quarter 2013, as a reduction in expenses offset the impact of lower revenue growth. Fourth quarter 2013 results included an estimated $32 million in revenue and $20 million

7

Citizens Financial Group, Inc.

in expense associated with the Chicago Divestiture. Consumer Banking total revenue decreased $24 million from the fourth quarter 2013, largely as an estimated $37 million net impact from the Chicago Divestiture and a check posting-order change, as well as the effect of the relatively persistent low-rate environment on net interest income, were partially offset by organic growth. Noninterest expense decreased $27 million, as the impact of the Chicago Divestiture and our focus on improving efficiency was partially offset by investment in the business. Provision for credit losses of $64 million remained relatively stable with the fourth quarter 2013, largely reflecting continued improvement in credit quality.

Commercial Banking Segment										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$			%
Net interest income	$	283		$	270		$	260		$	13			5	%	$	23			9	%
Noninterest income		111			104			105			7			7			6			6
Total revenue		394			374			365			20			5			29			8
Noninterest expense		180			162			164			18			11			16			10
Profit before provision for credit losses		214			212			201			2			1			13			6
Provision for credit losses		1			—			14			1			—			(13	)		(93	)
Income before income tax expense		213			212			187			1			—			26			14
Income tax expense		73			73			64			—			—			9			14
Net income	$	140		$	139		$	123		$	1			1	%	$	17			14	%
Average balances
Total loans and leases (1)	$	38,926		$	37,787		$	35,684		$	1,139			3	%	$	3,242			9	%
Total deposits		22,500			20,985			17,623			1,515			7	%		4,877			28	%
Key metrics
ROTCE (2)*		12.76	%		13.10	%		12.10	%		(34	) bps					66	bps
Efficiency ratio*		45	%		43	%		45	%		213	bps					75	bps

¹ Includes held for sale.

² Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. We approximate that regulatory capital is equivalent to a sustainable target level for common equity Tier 1 and then allocate that approximation to the segments based on economic capital.

Commercial Banking net income of $140 million in the fourth quarter 2014 increased $1 million, or 1%, from the third quarter 2014 as total revenue growth of $20 million was partially offset by an $18 million increase in noninterest expense. Net interest income grew $13 million, or 5%, from the third quarter 2014, driven by a $1.1 billion increase in average loans led by the Mid-Corporate, Commercial Real Estate, Asset Finance, Healthcare, and Franchise Finance lines of businesses, as well as the benefit of robust deposit growth. Results include the purchase of a $400 million oil and gas reserve-based lending portfolio during the quarter, which increased average loans by $216 million. Noninterest income increased $7 million, or 7%, from the third quarter 2014, driven by growth in leasing, capital markets and card fees. Noninterest expense increased $18 million, or 11%, from the third quarter 2014, largely reflecting higher regulatory costs, depreciation expense on leased equipment, and incentive and recruiting expense. Provision for credit losses was $1 million for the fourth quarter 2014 as compared to zero in the prior quarter.

Fourth quarter 2014 net income increased $17 million, or 14%, compared to the fourth quarter 2013, as the benefit of a $29 million increase in total revenue and a $13 million decrease in provision for credit losses was partially offset by a $16 million increase in noninterest expense. Net interest income increased $23 million, or 9%, from the fourth quarter 2013, reflecting the benefit of a $3.2 billion increase in average loans and leases, driven by strength in Mid-Corporate, Commercial Real Estate, Asset Finance, Franchise Finance, Healthcare, Technology and Business Capital. Noninterest income increased $6 million, or 6%, from the fourth quarter

8

Citizens Financial Group, Inc.

2013, reflecting strong growth in capital markets particularly in loan syndications, as well as higher card fees and service charges, which were partially offset by lower interest rate product fees and leasing income. Noninterest expense increased $16 million, or 10%, from the fourth quarter 2013, reflecting increased salary and benefits costs, regulatory costs, and an operating lease residual write-down. Provision for credit losses decreased $13 million from the fourth quarter 2013, reflecting improvement in credit quality.

Other(1)										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$			%
Net interest income (expense)	$	21		$	18		$	(24	)	$	3			17	%	$	45			188	%
Noninterest income		10			11			39			(1	)		(9	)		(29	)		(74	)
Total revenue		31			29			15			2			7			16			107
Noninterest expense		33			39			16			(6	)		(15	)		17			106
Profit (loss) before provision for credit losses		(2	)		(10	)		(1	)		8			80			(1	)		(100	)
Provision for credit losses		7			11			53			(4	)		(36	)		(46	)		(87	)
Income (loss) before income tax expense (benefit)		(9	)		(21	)		(54	)		12			57			45			83
Income tax expense (benefit)		(14	)		(17	)		(33	)		3			18			19			58
Net income (loss)	$	5		$	(4	)	$	(21	)	$	9			225	%	$	26			124	%
Average balances
Total loans and leases (2)	$	4,001		$	4,218		$	5,578		$	(217	)		(5	)%	$	(1,577	)		(28	)%
Total deposits		5,923			5,082			4,138			841			17	%		1,785			43	%

¹ Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

² Includes held for sale.

Other recorded net income of $5 million in the fourth quarter 2014, compared to a net loss of $4 million in the third quarter 2014, reflecting the benefit of higher total revenue and lower noninterest and provision expense. Net interest income of $21 million increased $3 million from the prior quarter, driven by lower swap expense and higher investment securities interest, partially offset by increased wholesale funding. Noninterest expense of $33 million decreased $6 million from the third quarter 2014 despite a $12 million increase in restructuring charges and special items. Noninterest income of $10 million decreased $1 million from the third quarter 2014. Provision for credit losses in Other of $7 million in the fourth quarter 2014 included an $8 million reserve release, compared with $11 million of provision for credit losses in the third quarter 2014, which included an $11 million reserve release. Provision for credit losses within Other mainly represents the residual change in the consolidated allowance for credit losses after attributing the respective net charge-offs to the Consumer Banking and Commercial Banking segments, while also factoring in net charge-offs related to the non-core portfolio.

Other net income of $5 million in the fourth quarter improved from a net loss of $21 million in the fourth quarter of 2013, driven by residual funds transfer pricing, higher investment portfolio income, and lower swap costs, partially offset by higher funding costs, runoff of non-core loans, and runoff of purchased mortgages.

Consolidated balance sheet review(1)										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$			%
Total assets	$	132,857		$	131,341		$	122,154		$	1,516			1	%	$	10,703			9	%
Loans and leases and loans held for sale		93,691			90,957			87,113			2,734			3			6,578			8
Deposits and deposits held for sale		95,707			93,463			92,180			2,244			2			3,527			4
Average interest-earning assets (quarterly)		118,730			117,196			108,972			1,534			1			9,758			9
Tangible common equity*	$	12,806		$	12,900		$	12,662			(94	)		(1	)		144			1
Loan-to-deposit ratio (period-end)(2)		97.9	%		97.3	%		94.5	%		57	bps					339	bps
Tier 1 common equity ratio(3)		12.4			12.9			13.5
Total capital ratio(3)		15.8	%		16.1	%		16.1	%

¹  Represents period-end unless otherwise noted.

² Includes loans held for sale and deposits held for sale.

³  Current reporting period regulatory capital ratios are preliminary.

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Citizens Financial Group, Inc.

Total assets of $132.9 billion increased $1.5 billion, or 1%, from September 30, 2014, driven by a $2.7 billion, or 3%, increase in loans and leases. Total assets increased $10.7 billion, or 9%, from December 31, 2013, largely reflecting a 19% increase in the securities portfolio and 9% increase in loans and leases.

Average interest-earning assets of $118.7 billion in the fourth quarter 2014 increased $1.5 billion, or 1%, from the prior quarter, driven by a $1.1 billion increase in commercial loans and leases, and a $1.3 billion increase in retail loans. Commercial loan growth was driven by strength in commercial and commercial real estate. During the fourth quarter, we acquired an oil and gas reserve-based commercial loan portfolio from RBS, with a total of $400 million in outstandings which increased average loans by $216 million during the quarter. Retail loan growth was driven by higher auto, residential mortgage and student loans balances, which were partially offset by lower home equity balances and a reduction in the non-core portfolio. Average interest-earning assets increased $9.8 billion, or 9%, from the fourth quarter 2013, driven by a $3.5 billion increase in investments and interest-bearing deposits, a $2.7 billion increase in commercial loans and leases, and a $3.5 billion increase in retail loans, as growth in auto and mortgage was partially offset by lower home equity outstandings and a reduction in the non-core portfolio.

Interest-earning assets							4Q14 change from
($s in millions)	4Q14		3Q14		4Q13		3Q14						4Q13
							$			%			$			%
Period-end interest-earning assets
Investments and interest-bearing deposits	$	27,151	$	27,036	$	22,829	$	115			—	%	$	4,322			19	%
Loans and leases
Commercial loans and leases		43,226		41,470		39,395		1,756			4			3,831			10
Retail loans		50,184		49,279		46,464		905			2			3,720			8
Total loans and leases		93,410		90,749		85,859		2,661			3			7,551			9
Loans held for sale		256		205		176		51			25			80			45
Other loans held for sale		25		3		1,078		22			733			(1,053	)		(98	)
Total loans and leases and loans held for sale		93,691		90,957		87,113		2,734			3			6,578			8
Total period-end interest-earning assets	$	120,842	$	117,993	$	109,942	$	2,849			2	%	$	10,900			10	%
Average interest-earning assets
Investments and interest-bearing deposits	$	26,452	$	27,343	$	22,920		(891	)		(3	)		3,532			15
Loans and leases
Commercial loans and leases		42,263		41,191		39,536		1,072			3			2,727			7
Retail loans		49,782		48,459		46,280		1,323			3			3,502			8
Total loans and leases		92,045		89,650		85,816		2,395			3			6,229			7
Loans held for sale		213		176		224		37			21			(11	)		(5	)
Other loans held for sale		20		27		12		(7	)		(26	)		8			67
Total loans and leases and loans held for sale		92,278		89,853		86,052		2,425			3			6,226			7
Total average interest-earning assets	$	118,730	$	117,196	$	108,972	$	1,534			1	%	$	9,758			9	%

Investments and interest-bearing deposits of $27.2 billion as of December 31, 2014 increased $115 million from September 30, 2014, despite a $966 million decrease in cash held at the Federal Reserve Bank. Investments and interest-bearing deposits increased $4.3 billion, or 19%, from December 31, 2013, largely related to the addition of high-quality, fixed-rate securities. At the end of the fourth quarter 2014 the average effective duration of the securities portfolio decreased to 3.5 years, compared with 4.0 years at September 30, 2014, and 4.1 years at December 31, 2013, largely reflecting a decrease in long-term rates, which drove increased prepayment speeds.

Period-end loans and leases of $93.4 billion at December 31, 2014 increased $2.7 billion from $90.7 billion at September 30, 2014, and increased $7.6 billion from $85.9 billion at December 31, 2013. The linked quarter increase was driven by a $1.8 billion increase in commercial loans and leases and a $905 million increase in retail loans. Commercial loan and lease growth reflected commercial

10

Citizens Financial Group, Inc.

loan growth of $1.1 billion, which included the previously mentioned purchase of $400 million in commercial loans, as well as a $570 million increase in commercial real estate and higher lease outstandings. Retail loan growth was driven by a $626 million increase in auto, a $567 million increase in residential mortgage, and a $187 million increase in student, partially offset by a reduction in home equity outstandings, including continued runoff in the non-core portfolio. During the quarter we purchased $415 million of auto loans and $493 million of residential mortgages.

Period-end loans and leases, excluding loans and leases held for sale, increased $7.6 billion from December 31, 2013 reflecting a $3.8 billion increase in commercial loans and leases and a $3.7 billion increase in retail loans. Commercial loan growth reflected growth in all categories. Retail loan growth was driven by a $3.3 billion increase in auto and a $2.1 billion increase in residential mortgage, partially offset by a $1.5 billion in home equity outstandings, including continued runoff in the non-core portfolio. During 2014 we purchased $2.0 billion of mortgages, $1.7 billion of auto loans, and a net $99 million of commercial loans, and sold a net $287 million of student loans.

Average loans and leases of $92.0 billion increased $2.4 billion from the third quarter 2014, driven by higher commercial, auto, and residential mortgage balances. Results also reflected a $175 million decrease in the non-core loan portfolio. Average loans and leases increased $6.2 billion from the fourth quarter 2013, driven by commercial loan growth, and an increase in residential mortgage, and auto loans, which were partially offset by a decrease in home equity outstandings and a reduction in the non-core loan portfolio.

Deposits							4Q14 change from
($s in millions)	4Q14		3Q14		4Q13		3Q14					4Q13
							$		%			$			%
Period-end deposits
Demand deposits	$	26,086	$	25,877	$	24,931	$	209		1	%	$	1,155			5	%
Checking with interest		16,394		15,449		13,630		945		6			2,764			20
Savings		7,824		7,655		7,509		169		2			315			4
Money market accounts		33,345		32,870		31,245		475		1			2,100			7
Term deposits		12,058		11,612		9,588		446		4			2,470			26
Total deposits		95,707		93,463		86,903		2,244		2			8,804			10
Deposits held for sale		—		—		5,277		—		NM			(5,277	)		(100	)
Total deposits and deposits held for sale	$	95,707	$	93,463	$	92,180	$	2,244		2	%	$	3,527			4	%
Average deposits
Total average deposits	$	94,797	$	91,676	$	93,184	$	3,121		3	%	$	1,613			2	%

Period-end total deposits at December 31, 2014 of $95.7 billion increased $2.2 billion from September 30, 2014, reflecting growth in every category with particular strength in checking with interest, money market, and term deposits. Fourth quarter 2014 period-end total deposits increased $8.8 billion compared with December 31, 2013, driven by growth in term deposits, checking with interest, money market and demand deposits. Period-end deposits held for sale at December 31, 2014 decreased $5.3 billion from December 31, 2013, related to the Chicago Divestiture. Fourth quarter 2014 average deposits of $94.8 billion increased $3.1 billion from the third quarter 2014, and $1.6 billion from the fourth quarter 2013, with particular strength in checking with interest and term deposits.

11

Citizens Financial Group, Inc.

Borrowed funds							4Q14 change from
($s in millions)	4Q14		3Q14		4Q13		3Q14						4Q13
							$			%			$			%
Period-end borrowed funds
Federal funds purchased and securities sold under agreements to repurchase	$	4,276	$	5,184	$	4,791	$	(908	)		(18	)%	$	(515	)		(11	)%
Other short-term borrowed funds		6,253		6,715		2,251		(462	)		(7	)		4,002			178
Long-term borrowed funds		4,642		2,062		1,405		2,580			125			3,237			230
Total borrowed funds	$	15,171	$	13,961	$	8,447	$	1,210			9		$	6,724			80
Average borrowed funds	$	14,028	$	14,996	$	5,670	$	(968	)		(6	)%	$	8,358			147	%

Total borrowed funds of $15.2 billion at December 31, 2014 increased $1.2 billion from September 30, 2014, driven by a $2.6 billion increase in long-term borrowed funds reflecting the December 1, 2014 issuance of $1.5 billion in senior notes, and a $334 million increase in subordinated debt as well as $748 million in term Federal Home Loan Bank advances. These results also reflected a $1.4 billion reduction in securities sold under agreements to repurchase and other short-term borrowed funds. Total borrowed funds increased $6.7 billion from the end of the fourth quarter 2013, as we utilized borrowing capacity to fund balance sheet growth and replace deposits sold in connection with the Chicago Divestiture. Average borrowed funds of $14.0 billion decreased $968 million from the third quarter 2014, and increased $8.4 billion from the fourth quarter 2013.

Capital(1)										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$		%
Period-end capital
Common stockholder’s equity	$	19,268		$	19,383		$	19,196		$	(115	)		(1	)%	$	72		—	%
Tangible common equity*	$	12,806		$	12,900		$	12,662		$	(94	)		(1	)%	$	144		1	%
Tier 1 capital ratio		12.4	%		12.9	%		13.5	%
Total capital ratio		15.8			16.1			16.1
Leverage ratio		10.6			10.9			11.6
Tier 1 common equity ratio		12.4			12.9			13.5
Memo: pro forma Basel III common equity tier 1 capital ratio*		12.1	%		12.5	%		13.1	%

¹  Current reporting period regulatory capital ratios are preliminary.

Capital ratios at December 31, 2014 remained well in excess of applicable regulatory requirements, with a total risk-based capital ratio of 15.8%, and a Tier 1 common equity ratio of 12.4%. The Tier 1 common equity ratio decreased from 12.9% at the end of the third quarter of 2014, and 13.5% at the end of the fourth quarter 2013. The change in this ratio reflects progress against our objective to realign our capital profile to achieve a capital profile more consistent with that of peer regional banks, while maintaining a strong capital base to support our growth aspirations, strategy, and risk appetite.

On October 8, 2014, we executed a capital transaction with RBS which involved the issuance of $334 million of 10-year subordinated notes at a rate of 4.082%, and the simultaneous repurchase of 14,297,761 shares of our common stock from RBS at an average price of $23.36 per share.

12

Citizens Financial Group, Inc.

Credit quality review										4Q14 change from
($s in millions)	4Q14			3Q14			4Q13			3Q14						4Q13
										$			%			$			%
Nonperforming loans and leases	$	1,101		$	1,079		$	1,416		$	22			2	%	$	(315	)		(22	)%
Accruing loans past due 90 days or more		9			8			33			1			13			(24	)		(73	)
Net charge-offs		80			88			115			(8	)		(9	)		(35	)		(30	)
Provision for credit losses		72			77			132			(5	)		(6	)		(60	)		(45	)
Allowance for loan and lease losses	$	1,195		$	1,201		$	1,221		$	(6	)		—	%	$	(26	)		(2	)%
Total nonperforming loans and leases as a % of total loans and leases		1.18	%		1.19	%		1.65	%		(1	) bps					(47	) bps
Net charge-offs as % of total loans and leases		0.35			0.38			0.53			(3	) bps					(18	) bps
Allowance for loan and lease losses as a % of nonperforming loans and leases		108.51	%		111.30	%		86.17	%		(279	) bps					2,234	bps

Credit quality during the quarter remained strong with relatively low levels of charge-offs and nonperforming loans and leases. Nonperforming loans and leases of $1.1 billion at December 31, 2014 increased $22 million from September 30, 2014, as a $34 million increase in retail products was partially offset by a $12 million decrease in commercial products. Nonperforming loans and leases to total loans and leases of 1.18% at December 31, 2014 remained relatively stable compared to 1.19% at September 30, 2014, and decreased 47 basis points from 1.65% at December 31, 2013. Nonperforming loans and leases of $1.1 billion decreased $315 million, or 22%, from the fourth quarter 2013, largely driven by improvement in home equity, commercial loans, residential mortgages, and student.

Nonperforming non-core loans totaled $184 million in the fourth quarter 2014, compared with $193 million in the third quarter 2014, and $238 million in the fourth quarter 2013. Nonperforming non-core loans to total non-core loans of 6.1% at December 31, 2014, compared with 6.0% at September 30, 2014, and 6.3% at December 31, 2013. Troubled debt restructured loans of $1.4 billion included $1.2 billion of retail loans and $176 million of commercial loans, and non performing TDRs represented 39% of total nonperforming loans and leases, compared to 40% for September 30, 2014, and 42% for December 31, 2013.

Net charge-offs of $80 million, or 35 basis points of total loans and leases, in the fourth quarter 2014 decreased $8 million from $88 million, or 38 basis points, in the third quarter of 2014. Retail product net charge-offs of $78 million decreased $6 million from $84 million in the third quarter 2014, as a reduction in real estate secured loans was partially offset by an increase in auto and student net charge-offs. Commercial product net charge-offs were $2 million in the fourth quarter 2014 compared with $4 million in the third quarter 2014. These results included non-core net charge-offs of $15 million in the fourth quarter 2014 compared to $22 million in the third quarter 2014, and $35 million in the fourth quarter 2013. Annualized non-core net charge-offs to total average non-core loans and leases of 1.92% in the fourth quarter 2014, compared with 2.52% in the third quarter 2014, and 3.59% in the fourth quarter 2013.

Provision for credit losses of $72 million in the fourth quarter 2014 decreased $5 million from the third quarter 2014, as the benefit of continued improvement in asset quality and a reduction in net charge-offs was somewhat offset by the effect of loan growth. Fourth quarter 2014 results included an $8 million reserve release, compared with an $11 million reserve release in the third quarter 2014. Provision for credit losses decreased $60 million from the fourth quarter 2013, reflecting improved credit quality. The total provision for credit losses includes the provision for loan and lease losses as well as the provision for unfunded commitments.

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Citizens Financial Group, Inc.

The allowance for loan and lease losses of $1.2 billion remained relatively stable compared to the third quarter 2014, and decreased $26 million, or 2%, from the fourth quarter 2013, reflecting continued improvement in overall credit quality, including an $85 million reduction in allowance for non-core loans from the fourth quarter 2013. Allowance for loan and lease losses to non-performing loans and leases ratio was 109% as of December 31, 2014, compared with 111% as of September 30, 2014, and 86% as of December 31, 2013. Excluding non-performing loans and leases that had been written down to a net realizable value, the allowance to nonperforming loans ratio was 250% at December 31, 2014, compared with 263% at September 30, 2014, and 151% at December 31, 2013.

Corresponding Financial Tables and Information

Investors are encouraged to review the foregoing summary and discussion of Citizens’ earnings and financial condition in conjunction with the detailed financial tables and other information available on the Investor Relations portion of the company’s website at www.citizensbank.com/about-us.

Media:	Jim Hughes - 781.751.5404
Investors:	Ellen A. Taylor - 203.897.4240

Conference Call

CFG management will host a live conference call today with details as follows:

Time:	8:30 am ET
Dial-in:	Individuals may call in by dialing (800) 230-1085, conference ID 347713
Webcast/Presentation:	The live webcast will be available at http://www.citizensbank.com/investor-relations, under Events
Replay Information:	A replay of the conference call will be available beginning at 10:30 am ET on January 26 through February 26, 2015. Please dial 800-475-6701 and enter access code # 347713. The webcast replay will be available at http://www.citizensbank.com/investor-relations.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $132.9 billion in assets as of December 31, 2014. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. In

14

Citizens Financial Group, Inc.

Consumer Banking, Citizens helps its retail customers “bank better” with mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,200 ATMs and approximately 1,200 Citizens Bank and Charter One branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Citizens also provides mortgage lending, auto lending, student lending and commercial banking services in select markets nationwide. In Commercial Banking, Citizens offers corporate, institutional and not-for-profit clients a full range of wholesale banking products and services including lending and deposits, capital markets, treasury services, foreign exchange and interest hedging, leasing and asset finance, specialty finance and trade finance.

Citizens operates through its subsidiaries Citizens Bank, N.A., and Citizens Bank of Pennsylvania. Additional information about Citizens and its full line of products and services can be found at www.citizensbank.com.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures. The table below presents reconciliations of certain non-GAAP measures. These reconciliations exclude goodwill impairment, restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Special items include regulatory expenses and expenses relating to our initial public offering.

The non-GAAP measures set forth below include “total revenue”, “noninterest income”,” noninterest expense”, “pre-provision profit”, “income before income tax expense (benefit)”, “income tax expense (benefit)”, “net income (loss)”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income (loss) per average common share”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “tangible common equity (period-end)’, “pro forma Basel III common equity tier 1 capital”, “return on average tangible common equity”, “return on average total tangible assets” and “efficiency ratio” as part of our non-GAAP measures.”

We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe goodwill impairment, restructuring charges and special items in any period do not reflect the operational performance of the business in that period and, accordingly, it is useful to consider these line items with and without goodwill impairment, restructuring charges and special items. We believe this presentation also increases comparability of period-to-period results.

We also consider pro forma capital ratios defined by banking regulators but not effective at each period end to be non-GAAP financial measures. Since analysts and banking regulators may assess our capital adequacy using these pro forma ratios, we believe they are useful to provide investors the ability to assess our capital adequacy on the same basis.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under GAAP.

15

Citizens Financial Group, Inc.

Non-GAAP Reconciliation

(Excluding restructuring charges and special items)

$s in millions, except per share data

		QUARTERLY TRENDS															FULL YEAR
		4Q14			3Q14			2Q14			1Q14			4Q13			2014			2013
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	339		$	341		$	640		$	358		$	379		$	1,678		$	1,632
Less: Special items - Chicago gain			—			—			288			—			—			288			—
Noninterest income, excluding special items (non-GAAP)	B	$	339		$	341		$	352		$	358		$	379		$	1,390		$	1,632
Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,179		$	1,161		$	1,473		$	1,166		$	1,158		$	4,979		$	4,690
Less: Special items - Chicago gain			—			—			288			—			—			288			—
Total revenue, excluding special items (non-GAAP)	D	$	1,179		$	1,161		$	1,185		$	1,166		$	1,158		$	4,691		$	4,690
Noninterest expense, excluding restructuring charges and special
Noninterest expense (GAAP)	E	$	824		$	810		$	948		$	810		$	818		$	3,392		$	7,679
Less: Restructuring charges and special expense items	JJ		33			21			115			—			26			169			4,461
Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	791		$	789		$	833		$	810		$	792		$	3,223		$	3,218
Net income (loss), excluding restructuring charges and special
Net income (loss) (GAAP)	G	$	197		$	189		$	313		$	166		$	152		$	865		($	3,426	)
Add: Restructuring charges and special items, net of income tax expense (benefit)			20			13			(108	)		—			17			(75	)		4,097
Net income (loss), excluding restructuring charges and special items (non-GAAP)	H	$	217		$	202		$	205		$	166		$	169		$	790		$	671
Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		$	19,399		$	21,834
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	H/I		4.48	%		4.14	%		4.19	%		3.48	%		3.47	%		4.07	%		3.08	%
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and
Average common equity (GAAP)	I	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		$	19,399		$	21,834
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			6,876			9,063
Less: Average other intangibles (GAAP)			6			6			7			7			8			7			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			403			384			369			351			342			377			459
Average tangible common equity (non-GAAP)	J	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		$	12,893		$	13,221
Return on average tangible common equity (non-GAAP)	G/J		6.12	%		5.81	%		9.59	%		5.24	%		4.71	%		6.71	%		(25.91	)%
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	H/J		6.76	%		6.22	%		6.28	%		5.24	%		5.24	%		6.13	%		5.08	%
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	127,624		$	120,866
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/K		0.66	%		0.62	%		0.65	%		0.54	%		0.56	%		0.62	%		0.56	%
Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	127,624		$	120,866
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			6,876			9,063
Less: Average other intangibles (GAAP)			6			6			7			7			8			7			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			403			384			369			351			342			377			459
Average tangible assets (non-GAAP)	L	$	124,192		$	122,193		$	120,634		$	117,372		$	113,851		$	121,118		$	112,253
Return on average total tangible assets (non-GAAP)	G/L		0.63	%		0.61	%		1.04	%		0.57	%		0.53	%		0.71	%		(3.05	)%
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/L		0.69	%		0.66	%		0.68	%		0.57	%		0.59	%		0.65	%		0.60	%

16

Citizens Financial Group, Inc.

Non-GAAP Reconciliation

(Excluding restructuring charges and special items)

$s in millions, except per share data

		QUARTERLY TRENDS															FULL YEAR
		4Q14			3Q14			2Q14			1Q14			4Q13			2014			2013
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	840		$	820		$	833		$	808		$	779		$	3,301		$	3,058
Add: Noninterest income (GAAP)			339			341			640			358			379			1,678			1,632
Total revenue (GAAP)	C	$	1,179		$	1,161		$	1,473		$	1,166		$	1,158		$	4,979		$	4,690
Efficiency ratio (non-GAAP)	E/C		69.88	%		69.84	%		64.33	%		69.43	%		70.62	%		68.12	%		163.73	%
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		67.11	%		68.02	%		70.23	%		69.43	%		68.35	%		68.70	%		68.61	%
Net income (loss) per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	M		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			556,674,146			559,998,324
Average common shares outstanding - diluted (GAAP)	N		550,676,298			560,243,747			559,998,324			559,998,324			559,998,324			557,724,936			559,998,324
Net income (loss) applicable to common stockholders (GAAP)	O		197			189			313			166			152			865			(3,426	)
Net income (loss) per average common share - basic (GAAP)	O/M		0.36			0.34			0.56			0.30			0.27			1.55			(6.12	)
Net income (loss) per average common share - diluted (GAAP)	O/N		0.36			0.34			0.56			0.30			0.27			1.55			(6.12	)
Net income (loss) applicable to common stockholders, excluding restructuring charges and special items (non-GAAP)	P		217			202			205			166			169			790			671
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	P/M		0.40			0.36			0.37			0.30			0.30			1.42			1.20
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	P/N		0.39			0.36			0.37			0.30			0.30			1.42			1.20
Pro forma Basel III common equity Tier 1 capital ratio:
Tier 1 common capital (regulatory)		$	13,173		$	13,330		$	13,448		$	13,460		$	13,301
Change in DTA and other threshold deductions (GAAP)			(6	)		(5	)		(7	)		(7	)		6
Basel III common equity Tier 1 (non-GAAP)	Q	$	13,179		$	13,335		$	13,455		$	13,467		$	13,295
Risk-weighted assets (regulatory general risk weight approach)			105,964			103,207			101,397			100,368			98,634
Net change in credit and other risk-weighted assets (regulatory)			2,882			3,207			2,383			2,450			2,687
Basel III standardized approach risk-weighted assets (non-GAAP)	R	$	108,846		$	106,414		$	103,780		$	102,818		$	101,321
Pro forma Basel III common equity Tier 1 capital ratio (non-GAAP)	Q/R		12.1	%		12.5	%		13.0	%		13.1	%		13.1	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	S	$	397		$	409		$	467		$	405		$	391		$	1,678		$	1,652
Less: Restructuring charges and special items			1			—			43			—			5			44			5
Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	T	$	396		$	409		$	424		$	405		$	386		$	1,634		$	1,647
Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	U	$	106		$	106		$	125		$	83		$	101		$	420		$	360
Less: Restructuring charges and special items			18			19			41			—			—			78			—
Outside services, excluding restructuring charges and special items (non-GAAP)	V	$	88		$	87		$	84		$	83		$	101		$	342		$	360
Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	W	$	81		$	77		$	87		$	81		$	83		$	326		$	327
Less: Restructuring charges and special items			5			2			9			—			11			16			11
Occupancy, excluding restructuring charges and special items (non-GAAP)	X	$	76		$	75		$	78		$	81		$	72		$	310		$	316
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	Y	$	63		$	58		$	65		$	64		$	68		$	250		$	275
Less: Restructuring charges and special items			1			—			3			—			7			4			7
Equipment expense, excluding restructuring charges and special items (non-GAAP)	Z	$	62		$	58		$	62		$	64		$	61		$	246		$	268

17

Citizens Financial Group, Inc.

Non-GAAP Reconciliation

(Excluding restructuring charges and special items)

$s in millions, except per share data

		QUARTERLY TRENDS															FULL YEAR
		4Q14			3Q14			2Q14			1Q14			4Q13			2014			2013
Amortization of software, excluding restructuring charges and special items:
Amortization of software	AA	$	43		$	38		$	33		$	31		$	32		$	145		$	102
Less: Restructuring charges and special items			6			—			—			—			—			6			—
Amortization of software, excluding restructuring charges and special items (non-GAAP)	BB	$	37		$	38		$	33		$	31		$	32		$	139		$	102
Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	CC	$	134		$	122		$	171		$	146		$	143		$	573		$	528
Less: Restructuring charges and special items			2			—			19			—			3			21			3
Other operating expense, excluding restructuring charges and special items (non-GAAP)	DD	$	132		$	122		$	152		$	146		$	140		$	552		$	525
Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,179		$	1,161		$	1,185		$	1,166		$	1,158		$	4,691		$	4,690
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		791			789			833			810			792			3,223			3,218
Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	EE	$	388		$	372		$	352		$	356		$	366		$	1,468		$	1,472
Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (benefit) (GAAP)	FF	$	283		$	274		$	476		$	235		$	208		$	1,268		($	3,468	)
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			(33	)		(21	)		173			—			(26	)		119			(4,461	)
Income before income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	GG	$	316		$	295		$	303		$	235		$	234		$	1,149		$	993
Income tax expense (benefit), excluding restructuring charges and special items:
Income tax expense (benefit) (GAAP)	HH	$	86		$	85		$	163		$	69		$	56		$	403		($	42	)
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			(13	)		(8	)		65			—			(9	)		44			(364	)
Income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	II	$	99		$	93		$	98		$	69		$	65		$	359		$	322
Restructuring charges and special expense items include:
Goodwill impairment			—			—			—			—			—			—		$	4,435
Restructuring charges			10			1			103			—			26			114			26
Special items			23			20			12			—			—			55			—
Restructuring charges and special expense items	JJ	$	33		$	21		$	115		$	0		$	26		$	169		$	4,461
Tangible Common Equity (period-end):
Stockholders’ equity		$	19,268		$	19,383		$	19,597		$	19,442		$	19,196		$	19,268		$	19,196
Less: Goodwill			(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)
Less: Other intangible assets			(6	)		(6	)		(7	)		(7	)		(8	)		(6	)		(8	)
Add: Deferred tax liabilities			420			399			384			366			350			420			350
Total tangible common equity	KK	$	12,806		$	12,900		$	13,098		$	12,925		$	12,662		$	12,806		$	12,662

18

Citizens Financial Group, Inc.

NON-GAAP MEASURES - SEGMENTS

(dollars in millions)

		Three Months Ended December 31, 2014												Three Months Ended September 30, 2014
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	52		$	140		$	5		$	197		$	54		$	139		($	4	)	$	189
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,756		$	4,334		$	10,119		$	19,209		$	4,685		$	4,205		$	10,521		$	19,411
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6			6			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403			403			—			—			384			384
Average tangible common equity (non-GAAP)	C	$	4,756		$	4,334		$	3,640		$	12,730		$	4,685		$	4,205		$	4,023		$	12,913
Return on average tangible common equity (non-GAAP)	A/C		4.30	%		12.76	%		NM			6.12	%		4.57	%		13.10	%		NM			5.81	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	50,546		$	40,061		$	40,064		$	130,671		$	49,012		$	38,854		$	40,825		$	128,691
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6			6			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403			403			—			—			384			384
Average tangible assets (non-GAAP)	E	$	50,546		$	40,061		$	33,585		$	124,192		$	49,012		$	38,854		$	34,327		$	122,193
Return on average total tangible assets (non-GAAP)	A/E		0.40	%		1.38	%		NM			0.63	%		0.44	%		1.42	%		NM			0.61	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	611		$	180		$	33		$	824		$	609		$	162		$	39		$	810
Net interest income (GAAP)			536			283			21			840			532			270			18			820
Noninterest income (GAAP)			218			111			10			339			226			104			11			341
Total revenue	G	$	754		$	394		$	31		$	1,179		$	758		$	374		$	29		$	1,161
Efficiency ratio (non-GAAP)	F/G		81.09	%		45.48	%		NM			69.88	%		80.42	%		43.35	%		NM			69.84	%
		Three Months Ended June 30, 2014												Three Months Ended March 31, 2014
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	44		$	141		$	128		$	313		$	32		$	141		($	7	)	$	166
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,640		$	4,129		$	10,838		$	19,607		$	4,568		$	4,023		$	10,779		$	19,370
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			7			7			—			—			7			7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			369			369			—			—			351			351
Average tangible common equity (non-GAAP)	C	$	4,640		$	4,129		$	4,324		$	13,093		$	4,568		$	4,023		$	4,247		$	12,838
Return on average tangible common equity (non-GAAP)	A/C		3.87	%		13.78	%		NM			9.59	%		2.81	%		14.17	%		NM			5.24	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	48,556		$	38,022		$	40,570		$	127,148		$	47,610		$	36,955		$	39,339		$	123,904
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			7			7			—			—			7			7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			369			369			—			—			351			351
Average tangible assets (non-GAAP)	E	$	48,556		$	38,022		$	34,056		$	120,634		$	47,610		$	36,955		$	32,807		$	117,372
Return on average total tangible assets (non-GAAP)	A/E		0.37	%		1.50	%		NM			1.04	%		0.27	%		1.54	%		NM			0.57	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	655		$	157		$	136		$	948		$	638		$	153		$	19		$	810
Net interest income (GAAP)			546			264			23			833			537			256			15			808
Noninterest income (GAAP)			236			107			297			640			219			107			32			358
Total revenue	G	$	782		$	371		$	320		$	1,473		$	756		$	363		$	47		$	1,166
Efficiency ratio (non-GAAP)	F/G		83.61	%		42.36	%		NM			64.33	%		84.39	%		42.13	%		NM			69.43	%
		Three Months Ended December 31, 2013
		Consumer			Commercial
		Banking			Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	50		$	123		($	21	)	$	152
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,448		$	3,978		$	10,938		$	19,364
Less: Average goodwill (GAAP)			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			8			8
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			342			342
Average tangible common equity (non-GAAP)	C	$	4,448		$	3,978		$	4,396		$	12,822
Return on average tangible common equity (non-GAAP)	A/C		4.40	%		12.10	%		NM			4.71	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	46,225		$	36,094		$	38,074		$	120,393
Less: Average goodwill (GAAP)			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			8			8
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			342			342
Average tangible assets (non-GAAP)	E	$	46,225		$	36,094		$	31,532		$	113,851
Return on average total tangible assets (non-GAAP)	A/E		0.42	%		1.33	%		NM			0.53	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	638		$	164		$	16		$	818
Net interest income (GAAP)			543			260			(24	)		779
Noninterest income (GAAP)			235			105			39			379
Total revenue	G	$	778		$	365		$	15		$	1,158
Efficiency ratio (non-GAAP)	F/G		81.84	%		44.73	%		NM			70.62	%

19

Citizens Financial Group, Inc.

Forward-Looking Statements

This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.”

Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

• negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense;

• the rate of growth in the economy and employment levels, as well as general business and economic conditions;

• our ability to implement our strategic plan, including the cost savings and efficiency components, and achieve our indicative performance targets;

• our ability to remedy regulatory deficiencies and meet supervisory requirements and expectations;

• liabilities resulting from litigation and regulatory investigations;

• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

• the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

• changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;

• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

• a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

• management’s ability to identify and manage these and other risks; and

20

Citizens Financial Group, Inc.

• any failure by us to successfully replicate or replace certain functions, systems and infrastructure provided by RBS.

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends will depend on our financial condition, earnings, cash needs, regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends. In addition, the timing and manner of the sale of RBS’s remaining ownership of our common stock remains uncertain, and we have no control over the manner in which RBS may seek to divest such remaining shares. Any such sale would impact the price of our shares of common stock.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission and declared effective on September 23, 2014.

Note: Percentage changes, per share amounts, and ratios presented in this document are calculated using whole dollars.

CFG-IR

21

EX-99.2

4Q14 and FY 2014 Financial Results

January 26, 2015

Exhibit 99.2

Forward-looking statements

1

This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future

dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the

words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future

conditional verbs such as “may,” “will,” “should,” “would,” and “could.”

Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of

the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in

light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor

guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual

results to differ materially from those in the forward-looking statements include the following, without limitation:

•

negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect,

among other things, the level of nonperforming assets, charge-offs and provision expense;

•

the rate of growth in the economy and employment levels, as well as general business and economic conditions;

•

our ability to implement our strategic plan, including the cost savings and efficiency components, and achieve our indicative performance targets;

•

our ability to remedy regulatory deficiencies and meet supervisory requirements and expectations;

•

liabilities resulting from litigation and regulatory investigations;

•

our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or

raise capital on favorable terms;

•

the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage

servicing rights and mortgages held for sale;

•

changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to

originate and distribute financial products in the primary and secondary markets;

•

the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

•

financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-

Frank Act and other legislation and regulation relating to bank products and services;

•

a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber

attacks;

•

management’s ability to identify and manage these and other risks; and

•

any failure by us to successfully replicate or replace certain functions, systems and infrastructure provided by The Royal Bank of Scotland Group plc (RBS).

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends will depend on our financial condition, earnings, cash needs,

regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our Board of Directors deems relevant in making such a

determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends. In addition, the timing

and manner of the sale of RBS's remaining ownership of our common stock remains uncertain, and we have no control over the manner in which RBS may seek to divest such remaining

shares. Any such sale would impact the price of our shares of common stock.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our

Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission and declared effective on September 23, 2014.

Note: Percentage changes, per share amounts, and ratios presented in this document are calculated using whole dollars.

4Q14 highlights

2

Improving

profitability and

returns

GAAP diluted EPS of $0.36; Adjusted diluted EPS  of $0.39, up 30% from 4Q13

Adjusted ROTCE  of 6.8% vs. 5.2% in 4Q13

YoY period-end loan growth of 9% with 8% growth in net interest income 

Benefit

of

growth

and

efficiency

initiatives

driving

continued

positive

operating

leverage

Strong capital,

liquidity, and

funding

Excellent credit

quality and

progress on risk

management

Strong progress

on strategic

growth and

efficiency

initiatives

Robust capital levels with a Tier 1 Common Equity Ratio of 12.4%. 2% growth from 3Q14 in tangible book

value/share to $23.46

Period-end deposits grew $8.8 billion, or 10% vs. 4Q13; Loan-to-deposit ratio of 98% remained relatively

stable

Issued $1.5 billion of senior notes in December

Strong balance sheet supports targeted future loan growth

Continued strong credit quality with net charge-off ratio of 0.35%, down 3 bps from 3Q14 and 18 bps from

4Q13

NPLs broadly stable with 3Q14 and strong NPL coverage of 109%

Allowance for loan and lease losses of 1.28% of total loans and leases

Expense initiatives on track; achieved 28% in 2014 of targeted $200 million goal by 2016

Progress in recruiting mortgage loan officers: 412 at year end, up 62 net for 2014, with 41 net in 4Q14 as

attrition has slowed

YoY Period-end loan growth of $7.6 billion broadly on target with $3.8 billion in commercial, $3.3 billion in

Auto, and a net $0.5 billion across other portfolios

1

Adjusted results are non-GAAP items and exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and effectiveness

programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix. “Chicago Divestiture“ refers to the June 23, 2014 sale of the

Chicago-area Charter One branches, small business and select middle market relationships.

1

1

Financial summary –

GAAP

3

1

Non-GAAP item. See important information on use of Non-GAAP items in the Appendix.

2

Includes held for sale.

3

Return on average tangible common equity.

4

Return on average total tangible assets.

5

Full-time equivalent employees.

Linked quarter:

Net income up 4% driven by 2% total

revenue growth and lower provision

expense

NII rose 2% driven by continued earning

asset growth and higher securities

portfolio income

Noninterest income up slightly excluding

swing in MSR

Expense management initiatives

continue to gain traction

Noninterest expense up $14 million

driven by $12 million increase in

restructuring charges and special

items

Continue investments to drive

enhanced revenue growth

Prior year quarter:

Net income up 30%

NII up 8% driven by 9% earning asset

growth. Runoff of pay-fixed swap

book helped mitigate continued

impact of the low-rate environment

Noninterest income down 11%

driven by the impact of the   

Chicago Divestiture and a posting-

order change

Noninterest expense up $6 million,

or 1%

Provision decreased 45%

Highlights

Quarterly trends

Full year

4Q14 change from

2014 change

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

2014

2013

from 2013

Net interest income

840

$   

820

$   

779

$   

20

$     

61

$     

3,301

$

3,058

$ 

243

$             

Noninterest income

339

341

379

(2)

(40)

1,678

1,632

46

Total revenue

1,179

1,161

1,158

18

21

4,979

4,690

289

Noninterest expense

824

810

818

14

6

3,392

7,679

(4,287)

Pre-provision profit (loss)

355

351

340

4

15

1,587

(2,989)

4,576

Provision for credit losses

72

77

132

(5)

(60)

319

479

(160)

Income (loss) before

income tax expense (benefit)

283

274

208

9

75

1,268

(3,468)

4,736

Income tax expense

(benefit)

86

85

56

1

30

403

(42)

445

Net income (loss)

197

$   

189

$   

152

$   

8

$        

45

$     

865

$   

(3,426)

$

4,291

$         

$s in billions

Average interest earning

assets

118.7

$

117.2

$

109.0

$

1.5

$    

9.8

$    

116.2

$

107.1

$ 

9.0

$              

Average deposits

2

94.8

$  

91.7

$  

93.2

$  

3.1

$    

1.6

$    

92.6

$  

93.3

$    

(0.8)

$            

Key metrics

Net interest margin

2.80

%

2.77

%

2.83

%

3

bps

(3)

bps

2.83

%

2.85

%

(2)

bps

Loan-to-deposit ratio

(period-end)

2

97.9

%

97.3

%

94.5

%

60

bps

340

bps

97.9

%

94.5

%

340

bps

ROTCE

1,3

6.12

%

5.81

%

4.71

%

31

bps

141

bps

6.71

%

(25.91)

%

3,262

bps

ROTA

1,4

0.63

%

0.61

%

0.53

%

2

bps

10

bps

0.71

%

(3.05)

%

376

bps

Efficiency ratio

1

70

%

70

%

71

%

4

bps

(74)

bps

68

%

164

%

(9,561)

bps

FTEs

5

17,677

17,852

19,152

(175)

(1,475)

17,677

19,152

(1,475)

Per common share

Diluted earnings

0.36

$  

0.34

$  

0.27

$  

0.02

$  

0.09

$  

1.55

$  

(6.12)

$  

7.67

$            

Tangible book value

23.46

$

23.04

$

22.61

$

0.42

$  

0.85

$  

23.46

$

22.61

$ 

0.85

$            

Average diluted shares

outstanding (in millions)

550.7

560.2

560.0

(9.6)

(9.3)

557.7

560.0

(2.3)

Restructuring charges and special items

4

GAAP results included restructuring charges and special items related to enhancing efficiencies and improving processes

across the organization and separation from The Royal Bank of Scotland Group plc (“RBS”).

Expect

to

utilize

the

balance

of

the

Chicago

Divestiture

gain

to

continue

to

reinvest

to

drive

future

growth,

and

to

fund

an

additional

$30-$50

million

of

further

restructuring

charges

and

special

expense

items

in

1H15.

as of and for the three months ended

as of and for the twelve months ended

Restructuring charges and special items

($s in millions, except per share data)

pre-tax

after-tax

pre-tax

after-tax

pre-tax

after-tax

pre-tax

after-tax

Noninterest income special items:

Other income

Net Gain on Chicago Divestiture

—

$            

—

$            

—

$            

—

$            

288

$        

180

$        

—

$            

—

$            

Total noninterest income special items

—

$            

—

$            

—

$            

—

$            

288

$        

180

$        

—

$            

—

$            

Noninterest expense restructuring charges

and special items:

Salaries and employee benefits

Chicago Divestiture

—

$            

—

$            

—

$            

—

$            

3

$              

2

$              

—

$            

—

$            

Efficiency initiatives

(1)

—

—

—

39

24

5

3

Separation/IPO related

1

—

—

—

1

1

—

—

Other

1

—

—

—

1

—

—

—

Non-compensation expense

Chicago Divestiture

—

—

—

—

14

9

—

—

Efficiency initiatives

11

8

1

—

58

37

—

—

Separation/IPO related

7

3

5

3

19

10

—

—

Other

14

9

15

10

34

22

21

14

Goodwill impairment

—

—

—

—

—

—

4,435

4,080

Total noninterest expense restructuring

charges and special items

33

$           

20

$           

21

$           

13

$           

169

$        

105

$        

4,461

$   

4,097

$   

Net restructuring charges and special items

(33)

$         

(20)

$         

(21)

$         

(13)

$         

119

$        

75

$           

(4,461)

$  

(4,097)

$  

Diluted EPS impact

(0.03)

$     

(0.02)

$     

0.13

$      

(7.32)

$     

December 31, 2014

September 30, 2014

December 31, 2014

December 31, 2013

Adjusted

4Q14

financial

summary

-

excluding

restructuring

charges

and

special

items

1

5

1

Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture,

efficiency and effectiveness programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Includes held for sale.

3

Return on average tangible common equity.

4

Return on average total tangible assets.

5

Full-time equivalent employees.

Linked quarter:

Adjusted net income up 7% reflecting solid

operating leverage and continued

improvement in credit quality

Adjusted pre-provision profit up 4%

Total revenue up $18 million

–

NII up $20 million, or 2%

–

Noninterest income impacted by MSR

swing

Adjusted noninterest expense broadly flat

despite continued investment to drive

future revenue growth

Adjusted efficiency ratio improved 91 bps

Prior year quarter:

Adjusted pretax income up 35% reflecting

positive operating leverage and a $60

million reduction in provision expense

Total revenue up $21 million despite

estimated $30 million impact of Chicago

Divestiture and posting-order change

Adjusted efficiency ratio improved        

124 bps

Highlights

–

NII up 8% on 9% earning asset growth

–

Adjusted noninterest income down

11%

4Q14 change from

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

184

Net interest income

840

$   

820

$   

779

$   

20

$      

2  %

61

$      

8  %

185

Noninterest income

339

341

379

(2)

(1) %

(40)

(11) %

186

Total revenue

1,179

1,161

1,158

18

2  %

21

2  %

187

Adjusted noninterest expense

1

791

789

792

2

—

%

(1)

—

%

188

Adjusted pre-provision profit

1

388

372

366

16

4  %

22

6  %

189

Provision for credit losses

72

77

132

(5)

(6) %

(60)

(45) %

190

Adjusted pretax income

1

316

295

234

21

7  %

82

35  %

191

Adjusted income tax expense

1

99

93

65

6

6  %

34

52  %

192

Adjusted net income

1

217

$   

202

$   

169

$   

15

$      

7  %

48

$      

28  %

$s in billions

193

Average interest earning assets

118.7

$

117.2

$

109.0

$

1.5

$    

1  %

9.8

$    

9  %

194

Average deposits

2

94.8

$  

91.7

$  

93.2

$  

3.1

$    

3  %

1.6

$    

2  %

Key metrics

195

Net interest margin

2.80

%

2.77

%

2.83

%

3

bps

(3)

bps

109

Loan-to-deposit ratio (period-end)

2

97.9

%

97.3

%

94.5

%

60

bps

340

bps

197

Adjusted ROTCE

1,3

6.76

%

6.22

%

5.24

%

54

bps

152

bps

198

Adjusted ROTA

1,4

0.69

%

0.66

%

0.59

%

3

bps

10

bps

199

Adjusted efficiency ratio

1

67

%

68

%

68

%

(91)

bps

(124)

bps

200

FTEs

5

17,677

17,852

19,152

(175)

(1) %

(1,475)

(8) %

Per common share

156

Adjusted diluted EPS

1

0.39

$  

0.36

$  

0.30

$  

0.03

$  

8  %

0.09

$  

30  %

157

Tangible book value

23.46

$

23.04

$

22.61

$

0.42

$  

2  %

0.85

$  

4  %

158

Average diluted shares outstanding

(in millions)

550.7

560.2

560.0

(9.6)

(2) %

(9.3)

(2) %

Adjusted full year financial summary -

excluding restructuring charges and special items

1

6

1

Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture,

efficiency and effectiveness programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Includes held for sale.

3

Return on average tangible common equity.

4

Return on average total tangible assets.

5

Full-time equivalent employees.

Adjusted net income up 18% driven by a 33% decrease

in provision expense

Adjusted pre-provision profit relatively stable

Adjusted total revenue stable, higher-quality

–

Underlying strength in NII and fee income more

than offset by the estimated $50 million impact of

the Chicago Divestiture and $43 million decrease in

service charges related to posting-order change

–

NII up $243 million; up $269 million before the

estimated $26 million impact of the Chicago

Divestiture

–

Adjusted noninterest income down $242 million

driven by a net $183 million decrease related to

lower securities gains, the Chicago Divestiture and

the posting-order change

–

Underlying strength in capital markets fees and

trust and management

Adjusted noninterest expense relatively stable as $42

million benefit from the Chicago Divestiture was largely

offset by higher regulatory costs and incentives expense

and investments to drive growth

Highlights

2014 change from

$s in millions

2014

2013

2013

$

%

Net interest income

3,301

$  

3,058

$  

243

$      

8  %

Adjusted noninterest income

1

1,390

1,632

(242)

(15) %

Adjusted total revenue

1

4,691

4,690

1

—

%

Adjusted noninterest expense

1

3,223

3,218

5

—

%

Adjusted pre-provision profit

1

1,468

1,472

(4)

—

%

Provision for credit losses

319

479

(160)

(33) %

Adjusted pretax income

1

1,149

993

156

16  %

Adjusted income tax expense

1

359

322

37

11  %

Adjusted net income

1

790

$      

671

$      

119

$      

18  %

$s in billions

Average interest earning assets

116.2

$  

107.1

$  

9.0

$       

8  %

Average deposits

2

92.6

$    

93.3

$    

(0.8)

$     

(1) %

Key metrics

Net interest margin

2.83

%

2.85

%

(2)

bps

Loan-to-deposit ratio (period-end)

2

97.9

%

94.5

%

340

bps

Adjusted ROTCE

1,3

6.13

%

5.08

%

105

bps

Adjusted ROTA

1,4

0.65

%

0.60

%

5

bps

Adjusted efficiency ratio

1

69

%

69

%

9

bps

FTEs

5

17,677

19,152

(1,475)

(8) %

Per common share

Adjusted diluted EPS

1

1.42

$    

1.20

$    

0.22

$    

18  %

Tangible book value

23.46

$  

22.61

$  

0.85

$    

4  %

Average diluted shares outstanding

(in millions)

557.7

560.0

(2.3)

—

%

Net interest income

Linked quarter:

NII up $20 million, or 2%, driven by increased investment

portfolio income and 3% loan growth

NIM improved 3 bps to 2.80%

–

4Q14 included an estimated 4 bps benefit related to

the securities portfolio duration extension trade and

reduction in excess cash position, of which 2 bps is

expected to persist

–

Underlying NIM relatively stable –

the benefit of yield

initiatives associated with loan growth, improved

origination fees and lower pay-fixed swap costs was

offset by the effect of loan originations skewing to

Commercial and Auto, plus higher deposit costs and

borrowing costs tied to the issuance of subordinated

debt and senior notes

7

Highlights

Net interest income

$s in millions,

except earning

assets

Average interest-earning assets

Average interest earning assets

Net interest income

Net interest margin

$820²

$109B

$113B

$116B

$117B

$119B

4Q13

1Q14

2Q14

3Q14

4Q14

$s in billions

4Q13

1Q14

2Q14

3Q14

4Q14

210

Retail Loans

$46.3

$46.4

$47.5

$48.5

$49.8

211

Commercial Loans

39.5

39.7

40.5

41.2

42.3

212

Investments and interest-

bearing deposits

22.9

25.2

26.8

27.3

26.5

213

Loans held for sale

1

0.2

1.2

1.2

0.2

0.2

214

Total interest-earning assets

$109.0

$112.5

$116.0

$117.2

$118.7

1

1Q14 and 2Q14 include other loans held for sale associated with Chicago Divestiture.

2

Represents estimated underlying net interest income adjusted for the effect of Chicago Divestiture.

Linked quarter:

Noninterest

income

up

by

$5

million

excluding

MSR swing:

–

Higher capital markets fees and other income

largely offset by lower mortgage banking fees

with all other categories relatively stable

–

Mortgage banking fees down $5 million

including the $7 million impact of a change in

MSR valuation

–

Strength in capital markets fees and higher FX &

trade finance fees and underlying momentum in

other core fees more than offset by

–

$34 million decrease in securities gains and

other income

–

$12 million decrease tied to the Chicago

Divestiture

–

$5

million

decrease

related

to

check

posting-

order changes in service charges

8

Highlights

1

Other income includes interest rate product fees, leasing income, bank owned life insurance, and other income.

Fee income before the

impact of securities

gains and other income

relatively stable despite

impact of Chicago

Divestiture and a

posting-order change

1

$339

$341

$379

4Q14

3Q14

4Q13

Service charges and fees

Card fees

Trust and inv services

FX & trade finance fees

Mortgage banking fees

Capital markets fee income

Securities gains (losses)

Other

income

4Q14 change from

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

215

Service charges and fees

144

$    

144

$    

152

$    

—

$      

—

%

(8)

$       

(5) %

216

Card fees

58

58

58

—

—

%

—

—

%

217

Trust & investment services fees

38

39

40

(1)

(3) %

(2)

(5) %

218

FX & trade finance fees

25

26

24

(1)

(4) %

1

4  %

219

Mortgage banking fees

16

21

20

(5)

(24) %

(4)

(20) %

220

Capital markets fees

25

22

18

3

14  %

7

39  %

221

Securities gains, net

1

2

25

(1)

(50) %

(24)

(96) %

222

Other income

1

32

29

42

3

10  %

(10)

(24) %

225

Noninterest income

339

$    

341

$    

379

$    

(2)

$       

(1) %

(40)

$    

(11) %

Noninterest income

Prior year quarter:

Noninterest income down $40 million

Adjusted

noninterest

expense

–

excluding

restructuring

charges

and

special

items

1

Linked quarter:

Adjusted noninterest expense and

efficiency ratio remained relatively

stable

—

Adjusted salaries and benefits down

$13 million driven by lower

incentive and benefits expense

•

FTEs down 175 driven by our

efficiency initiatives

—

Adjusted other expense up $10

million 

•

Includes higher marketing and

regulatory expenses

Efficiency initiatives drove incremental

cost savings of $16 million

9

Highlights

.

4Q14 change from

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

235

Adjusted salaries and benefits ¹

396

$    

409

$    

386

$       

(13)

$    

(3) %

10

$       

3  %

236

Adjusted outside services ¹

88

87

101

1

1  %

(13)

(13) %

237

Adjusted occupancy ¹

76

75

72

1

1  %

4

6  %

238

Adjusted equipment expense ¹

62

58

61

4

7  %

1

2  %

239

Adjusted amortization of software ¹

37

38

32

(1)

(3) %

5

16  %

240

Adjusted other expense ¹

132

122

140

10

8  %

(8)

(6) %

241

Adjusted noninterest expense ¹

791

$    

789

$    

792

$       

2

$        

—

%

(1)

$        

—

%

242

Restructuring charges and special items

33

21

26

12

57  %

7

27  %

243

Total noninterest expense

824

$    

810

$    

818

$       

14

$      

2  %

6

$         

Adjusted salary and benefits

Adjusted occupancy & equip

Adjusted all other

Adjusted efficiency ratio

$791

$789

$792

1

Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and effectiveness programs

and separation from RBS. See important information on use of Non-GAAP items in the Appendix. Additional details on restructuring charges and special items provided on page 28.

2

Excludes restructuring charges and special items .

1 %

4Q14

3Q14

4Q13

2

2

2

Consolidated 4Q14 average balance sheet

Linked quarter:

Total earning assets up 1%

Commercial loans up $1.1 billion, driven by

strength in Mid-Corporate, Commercial Real

Estate, Asset Finance, Healthcare, and

Franchise Finance

Retail loans up $1.3 billion driven by growth

in auto, mortgage, and student

Total deposits increased 3%, reflecting strength

in all product categories

$1.0 billion increase in low-cost core

deposits

Borrowed funds decreased $1.0 billion

Total earning assets up 9%

Retail loans up 8% driven by growth in auto

and mortgage

Commercial loans up 7% driven by growth

in Mid-Corporate, Commercial Real Estate,

Asset Finance, Franchise Finance,

Healthcare, and Technology

$1.1

billion decrease related to the Chicago

Divestiture

Total deposits up $1.6 billion driven by

strength in low-cost core deposits

10

Highlights

$118.7 billion

Interest-earning assets

$108.8 billion

Deposits/borrowed funds

Total

Consumer

42%

Total

Commercial

36%

1

Low-cost core deposits include demand, checking with interest, and regular savings.

2

Total deposits includes deposits held for sale.

CRE

Other

Commercial

Residential

mortgage

Total home

equity

Automobile

Other

Consumer

Investments

and

interest-bearing

deposits

Retail /

Personal

Commercial/

Municipal

Wholesale

4Q14 change from

$s in billions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

265

Investments and interest bearing

deposits

26.5

$  

27.3

$  

22.9

$  

(0.9)

$   

(3) %

3.5

$     

15  %

266

Total commercial loans

42.3

41.2

39.5

1.1

3  %

2.7

7  %

267

Total retail loans

49.8

48.5

46.3

1.3

3  %

3.5

8  %

268

Total loans and leases

92.0

89.7

85.8

2.4

3  %

6.2

7  %

269

Loans held for sale

0.2

0.2

0.2

—

15  %

—

(1) %

270

Total interest-earning assets

118.7

117.2

109.0

1.5

1  %

9.8

9  %

271

Total noninterest-earning assets

11.9

11.5

11.4

0.4

4  %

0.5

5  %

272

Total assets

130.7

$

128.7

$

120.4

$

2.0

$     

2  %

10.3

$  

9  %

273

Low-cost core deposits

49.7

48.7

48.1

1.0

2  %

1.7

4  %

274

Money market deposits

33.2

32.4

33.9

0.8

3  %

(0.7)

(2) %

275

Term deposits

11.9

10.6

11.3

1.3

12  %

0.6

6  %

276

Total deposits

94.8

$  

91.7

$  

93.2

$  

3.1

$     

3  %

1.6

$     

2  %

277

Total borrowed funds

14.0

15.0

5.7

(1.0)

(6) %

8.4

147  %

278

Total liabilities

111.5

$

109.3

$

101.0

$

2.2

$     

2  %

10.5

$  

10  %

279

Total stockholders' equity

19.2

19.4

19.4

(0.2)

(1) %

(0.2)

(1) %

280

Total liabilities and equity

130.7

$

128.7

$

120.4

$

2.0

$     

2  %

10.3

$  

9  %

1

Prior year quarter:

$44.8B

$46.2B

$47.4B

$47.8B

$49.4B

3.68%

3.70%

3.69%

3.67%

3.68%

4Q13

1Q14

2Q14

3Q14

4Q14

Total loans and leases

Loan yields

$35.7B

$36.6B

$37.4B

$37.8B

$38.9B

2.74%

2.71%

2.67%

2.61%

2.63%

4Q13

1Q14

2Q14

3Q14

4Q14

Total loans and leases

Loan yields

$5.6B

$4.6B

$4.4B

$4.2B

$4.0B

4.28%

4.46%

4.99%

4.30%

4.43%

4Q13

1Q14

2Q14

3Q14

4Q14

Total loans and leases

Loan yields

Total average loans and leases and LHFS

Linked quarter:

Consumer Banking segment loans increased $1.5 billion

Purchased $493 million of residential mortgages and 

$415 million of auto loans in 4Q14

~$550 million remaining growth across mortgage, auto

and student portfolios

Consumer loan yields up one basis point, reflects loan

yield initiatives offsetting the impact of the persistent

low-rate environment

Commercial Banking segment loans increased $1.1 billion on

strength in Asset Finance, Mid-Corporate, Commercial Real

Estate, and Franchise Finance

Loan yields increased two basis points largely reflecting

higher loan fees and interest recoveries, partially offset

by the continued effect of the low-rate environment

Purchased $400 million oil & gas reserve-based lending

portfolio from RBS, which increased average loans by

$216 million

Other loans decreased $217 million reflecting continued

runoff in the non-core portfolio

11

Highlights

Consumer Banking

Average loans

Commercial Banking

Other

Average loans

1

Includes loans held for sale.

2

Excludes the impact of interest rate swaps.

1

1

1

Average loans

2

Average deposits and rates

Linked quarter:

Average deposits increased $3.1 billion, or 3%, with growth in

all categories and particular strength in Commercial Banking

–

Term deposits up $1.3 billion, money market & savings up

$760 million, interest checking up $563 million and DDA up

$502 million

–

Total deposit costs increased 2 basis points to 0.20%,

reflecting shift in mix to longer duration deposits

12

Highlights

1

1

Average deposits and

deposits held for sale

$93.2B

$91.6B

$92.2B

$91.7B

$94.8B

0.17%

0.16%

0.15%

0.18%

0.20%

0.24%

0.22%

0.22%

0.25%

0.28%

4Q13

1Q14

2Q14

3Q14

4Q14

Term & time deposits

Checking

with

interest

Non int bearing deposits

Money market & savings

Int bearing HFS

Non-int bearing HFS

Total deposit costs

Int bearing deposit costs

Capital and liquidity remain strong

13

Highlights

Loan-to-deposit ratio

5

Capital ratio trend

95%

95%

97%

97%

98%

4Q13

1Q14

2Q14

3Q14

4Q14

1

1

Capital levels remain well above regional

peers

–

As part of plan to adjust capital mix we

completed $334 million sub-debt

issuance/14.3 million share repurchase

on October 8th with RBS

4Q14 Basel III common equity tier 1 down

approximately 40 basis points from 3Q14

–

Net income: 18 bps increase

–

RWA growth: 30 bps decrease

–

Share repurchase: 30 bps decrease

–

Dividend/other: 5 bps decrease

LDR remained relatively stable at 98%

despite strong loan growth

Already meet initial LCR requirement

4

Issued $1.5 billion in senior notes

as of

$s in billions (period-end)

4Q13

1Q14

2Q14

3Q14

4Q14

Basel I

1

Tier 1 common capital

13.3

$    

13.5

$    

13.4

$    

13.3

$    

13.2

$    

Basel I risk-weighted assets

98.6

$    

100.4

$ 

101.4

$ 

103.2

$ 

106.1

$ 

13.5 %

13.4 %

13.3 %

12.9 %

12.4 %

Total capital ratio

16.1 %

16.0 %

16.2 %

16.1 %

15.8 %

Basel III

1,2,3

Common equity tier 1 capital ratio

13.1 %

13.1 %

13.0 %

12.5 %

12.1 %

Basel III minimum for CET1 ratio

2015

2016

2017

2018

2019

Basel III minimum plus

Phased-in capital conservation buffer

4.5 %

5.1 %

5.8 %

6.4 %

7.0 %

Tier 1 common equity ratio

1

2

3

4

5

Current reporting period regulatory capital ratios are preliminary.

Pro forma Basel III ratios assume that certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2018, are fully phased-in. Ratios also

reflect the required US Standardized methodology for calculating RWAs, effective January 1, 2015.

Non-GAAP item. See important information on use of Non-GAAP items in the Appendix.

Based on the September 2014 release of the U.S. version of the Liquidity Coverage Ratio (LCR). Note that as a modified LCR company, CFG’s formal compliance requirement

of 90% does not begin until January 2016.

Includes held for sale.

16.1%

16.0%

16.2%

16.1%

15.8%

13.5%

13.4%

13.3%

12.9%

12.4%

4Q13

1Q14

2Q14

3Q14

4Q14

Basel

I

total

capital

ratio

Basel

I

tier

1

common

equity

ratio

$18

($8)

($13)

$4

$2

$79

$80

$70

$75

$72

$18

$15

$11

$9

$6

$115

$87

$68

$88

$80

0.53%

0.41%

0.31%

0.38%

0.35%

4Q13

1Q14

2Q14

3Q14

4Q14

Commercial

Retail

SBO

Net c/o ratio

$115

$87

$68

$88

$80

$132

$121

$49

$77

$72

$1.4B

$1.4B

$1.2B

$1.1B

$1.1B

4Q13

1Q14

2Q14

3Q14

4Q14

Net charge-offs

Provision

NPLs

$1,221

$1,259

$1,210

$1,201

$1,195

86%

92%

101%

111%

109%

4Q13

1Q14

2Q14

3Q14

4Q14

Allowance for loan and lease losses

Coverage Ratio

Credit quality continues to improve

Overall credit quality remains strong

Net charge-offs were $80 million, or 0.35% of average loans

and leases

Allowance coverage for NPLs remained relatively stable at

109% vs. 111% in 3Q14

Provision for credit losses of $72 million decreased $5 million

vs. 3Q14

Results reflect reserve release of $8 million vs. $11 million

in 3Q14

NPLs to total loans stable, 1.18% vs. 1.19% in 3Q14

14

Highlights

Net charge-offs (recoveries)

Provision for credit losses, charge-offs, NPLs

Allowance for loan and lease losses

$s in millions

1 Allowance

for

loan

and

lease

losses

to

nonperforming

loans

and

leases.

For credit

losses

1

7

8

9

10

11b

11c

Summary of progress on strategic initiatives

15

1

2

3

4

6

5

11a

2014 Status

INITIATIVE

2015

Outlook

Commentary

CFG

Execution

Market

Condition

Reenergize household growth

Arrested household decline with new offerings.  Contending with

competition and reduced foot traffic.  Key is training/improved lead

generation.

Expand mortgage sales force

Achieved 2014 hiring goals; increased LOs by 66  in FY14 including 41 in

Q4, with attrition starting to normalize.

Market conforming product mix and refi

activity

are

wild

cards.

Grow Auto

Performed well in 2014 with 35% YoY

portfolio

growth

&

yield

expansion

throughout the year (+10bps from 1Q’14 to 4Q’14).

Grow Student

Strong new refi product origination of $169 million in 4Q’14.

Expand Business Banking

Expand Wealth sales force

Build out Mid-Corp & verticals

Met RM hiring goals in 2014 and well-positioned for growth in 2015.

Continue development of Capital

Markets

Capital markets rank and fees up nicely in 2014.  Improved capabilities in

FX and Sales & Trading will be operational in 2015.

Build out Treasury Solutions

New leader in place. Expect to see ramp up in benefits from recent

people and technology investments over  2015.

Grow Franchise Finance

Solid loan origination & deposit performance expected to continue.

Strong market conditions have created competitive hiring environment

for financial consultants.

Strong

performance

due

to

pace

of

new

client

acquisition

(60+

in

’14).

Core: Middle Market

portfolio run-off and optimizing pricing.

Strong origination activity expected to continue; focus on reducing

Core: CRE

CRE loans up 12% YoY

expected with focus on improvements in yield.

Core:  Asset Finance

2015 performance continues to look promising.

to

$7.8

billion

at

YE

2014.

Continued

momentum

Steady progress against key financial targets

16

Key Indicators

4Q13

4Q14

End 2016

targets

Adjusted return on average tangible common

equity

1

5.2%

6.8%

10%+

Adjusted return on average total tangible

assets

1

0.6%

0.7%

1.0%+

Adjusted efficiency ratio

1

68%

67%

~60%

Tier 1 common equity ratio

2

13.5%

12.4%

~11%

3

Delivering on our plan to improve returns

1

Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and

effectiveness programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Current reporting period regulatory capital ratio is preliminary.

3

Target represents fully phased in Basel III.

1Q15/FY2015 outlook

17

Net interest

income, net

interest margin

Target 5-7% earning asset growth

Net interest margin broadly stable, though with

risks

Operating

leverage, efficiency

ratio

Credit trends

and cost

Adjusted expense growth relatively modest

Target mid-single digit operating leverage

Efficiency ratio improves to mid 60’s

Credit costs $350-400 million given reserve

build

Broadly stable asset quality trends

FY2015 expectations vs. FY2014

Earning asset growth consistent with 4Q14/3Q14

Net interest margin relatively stable

Day count impact of $12 million

Seasonal expense growth –

low single digits

Stable asset quality trends

Provision tick up assuming no reserve release

Restructuring

costs

Restructuring costs of $30-$50 million, all in

1H15

Restructuring costs of $15-$20 million in 1Q

1Q15 expectations vs. 4Q14

Capital, liquidity

and funding

Year-end B3 common equity Tier 1 ratio ~11.5%

Loan-to-deposit ratio ~100%

Focusing on cost-effective deposit growth

Quarter-end B3 common equity Tier 1 ratio

~12.1%

Loan-to-deposit ratio 98-99%

Continue to diversify funding sources

•

Expected FY 2015 effective tax rate of ~33.5% up from 31.8% in 2014. Low income housing credit accounting change expected to increase fees and taxes by $48

million in 2015 impacting rate by ~2.5%.

Key messages

18

Underlying business performance continues to make progress, marked

by loan growth, positive operating leverage and growing customer

satisfaction

2014 was a successful transition year, with Chicago region gain funding

various initiatives to drive better performance over 2015/2016

Tracking well on all strategic and regulatory initiatives, maintain intense

focus on execution

Asset quality and capital ratios remain strong

Appendix

19

Quarter over quarter results

20

Adjusted pre-provision profit

$s in millions

Adjusted return on average

tangible assets

Adjusted net income

$s in millions

Adjusted return on average

Period-end loans

$s in billions

Period-end deposits

$s in billions

Adjusted Diluted EPS

6%

9%

28%

10%

152 bps

30%

1

2

1

1

2

1

$366

$388

4Q13

4Q14

$169

$217

$0.39

4Q13

4Q14

$85.9

$93.4

4Q13

4Q14

$86.9

$95.7

4Q13

4Q14

0.59%

0.69%

4Q13

4Q14

5.24%

6.76%

4Q13

4Q14

$0.30

1

tangible common equity

10 bps

1

Adjusted results are non-GAAP items and exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and 

effectiveness programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Excludes loans and deposits held for sale.

Linked quarter results

21

Adjusted pre-provision profit

$s in millions

Basel I tier 1 common equity

capital ratio

Adjusted return on average

tangible assets

Adjusted net income

$s in millions

Adjusted return on average

Leverage ratio

Adjusted Diluted EPS

4%

50 bps

3 bps

7%

30 bps

54 bps

8%

1

2

1

2

1

tangible common equity

1

$372

$388

3Q14

4Q14

12.9%

12.4%

3Q14

4Q14

0.66%

0.69%

3Q14

4Q14

10.9%

10.6%

3Q14

4Q14

6.22%

6.76%

3Q14

4Q14

$202

$217

$0.36

$0.39

3Q14

4Q14

1

1

Adjusted results are non-GAAP items and exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and effectiveness

programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Current reporting period regulatory capital ratios are preliminary.

Full year results

22

Adjusted pre-provision profit

1

$s in millions

Basel I tier 1 common equity

capital ratio

2

Adjusted return on average

tangible assets

1

Adjusted net income

1

$s in millions

Adjusted return on average

tangible common equity

1

Leverage ratio

2

105 bps

5 bps

~100 bps

~110 bps

0.3%

1

2

18%

$1,472

$1,468

2013

2014

13.5%

12.4%

2013

2014

0.60%

0.65%

2013

2014

$671

$790

2013

2014

11.6%

10.6%

2013

2014

5.08%

6.13%

2013

2014

Adjusted results are non-GAAP items and exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and effectiveness

programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

Current reporting period regulatory capital ratios are preliminary.

Net interest margin

NIM% walk 4Q13 to 4Q14

NIM% walk 3Q14 to 4Q14

23

4Q13 NIM%

Pay-fixed

swap costs

Investment

yields

Investment

portfolio

growth

Deposit

yields

Chicago

Divestiture

Loan growth/

mix/fees

Loan

yields

Sub-debt

issuance

4Q14 NIM%

3Q14 NIM%

Excess cash

at Fed

Investment

yields

Loan growth/

mix/fees

Pay-fixed

swap costs

Deposit growth/

yields

Sub-debt

issuance

4Q14 NIM%

2.77%

2.80%

0.02%

0.02%

0.02%

0.01%

(0.02%)

(0.02%)

2.83%

2.80%

0.07%

0.02%

(0.01%)

(0.01%)

(0.01%)

(0.01%)

(0.04%)

(0.04%)

Net interest margin

NIM% walk FY2013 to FY2014

24

FY2013 NIM%

Pay-fixed swap

cost

Deposit

mix/yields

Other

borrowings

Chicago

Divestiture

Investment

portfolio

growth

Sub-debt

issuance

Loan growth/

mix/fees

FY2014 NIM%

2.85%

2.83%

0.10%

0.04%

0.01%

(0.01%)

(0.02%)

(0.04%)

(0.10%)

Consumer Banking segment

25

Highlights

1

Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture,

efficiency and effectiveness programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Includes held for sale.

3

Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. We

approximate that regulatory capital is equivalent to a sustainable target level for Tier 1 common equity and then allocate that

approximation to the segments based on economic capital.

Linked quarter:

Consumer Banking net income down $2

million with pre-provision profit down

$6 million

Net interest income increased $4

million driven by the benefit of loan

growth and improved loan yields,

partially offset by higher deposit costs

–

Average loans up $1.5 billion

–

Average deposits up $765 million

–

Mortgage originations up 8%

Noninterest expense increased $2

million driven by $7 million increase in

advertising, including $5 million related

to the launch of our new education

refinance product, as well as higher

equipment expense, largely offset by

lower insurance and franchise tax

expense as well as the benefit of

efficiency initiatives

Noninterest income decreased $8

million driven by a $5 million change

in mortgage banking fees, which

included a $7 million change in MSR

valuation

4Q14 change from

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

310

Net interest income

536

$    

532

$    

543

$    

4

$        

1  %

(7)

$       

(1) %

311

Noninterest income

218

226

235

(8)

(4) %

(17)

(7) %

312

Total revenue

754

758

778

(4)

(1) %

(24)

(3) %

313

Noninterest expense

611

609

638

2

—

%

(27)

(4) %

314

Profit before provision for

credit losses

143

149

140

(6)

(4) %

3

2  %

315

Provision for credit losses

64

66

65

(2)

(3) %

(1)

(2) %

316

Income before income tax

expense

79

83

75

(4)

(5) %

4

5  %

317

Income tax expense

27

29

25

(2)

(7) %

2

8  %

318

Net income

52

$      

54

$      

50

$      

(2)

$       

(4) %

2

$        

4  %

Average balances

319

Total

loans

and

leases

2

49.4B

$

47.8B

$

44.8B

$

1.5B

$  

3  %

4.6B

$  

10  %

320

Total deposits

66.4B

$

65.6B

$

71.4B

$

0.8B

$  

1  %

(5.0B)

$

(7) %

Mortgage Banking metrics

Originations

1,101

$

1,018

$

926

$    

83

$      

8  %

175

$    

19  %

Origination Pipeline

1,110

973

663

137

14  %

447

67  %

Gain on sale of secondary

originations

1.96%

1.69%

1.20%

27

bps

76

bps

Performance metrics

321

ROTCE

1,3

4.30%

4.57%

4.40%

(27)

bps

(10)

bps

322

Efficiency ratio

1

81%

80%

82%

67

bps

(75)

bps

Commercial Banking segment

26

Highlights

1

Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture,

efficiency and effectiveness programs and separation from RBS. See important information on use of Non-GAAP items in the Appendix.

2

Includes held for sale.

3

Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. We

approximate that regulatory capital is equivalent to a sustainable target level for Tier 1 common equity and then allocate that

approximation to the segments based on economic capital.

4Q14 change from

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

323

Net interest income

283

$    

270

$    

260

$    

13

$      

5  %

23

$      

9  %

324

Noninterest income

111

104

105

7

7  %

6

6  %

325

Total revenue

394

374

365

20

5  %

29

8  %

326

Noninterest expense

180

162

164

18

11  %

16

10  %

327

Profit before provision for

credit losses

214

212

201

2

1  %

13

6  %

328

Provision for credit losses

1

—

14

1

—

%

(13)

(93) %

329

Income before income tax

expense

213

212

187

1

—

%

26

14  %

330

Income tax expense

73

73

64

—

—

%

9

14  %

331

Net income

140

$    

139

$    

123

$    

1

$        

1  %

17

$      

14  %

Average balances

332

Total loans and leases

2

38.9B

$

37.8B

$

35.7B

$

1.1B

$  

3  %

3.2B

$  

9  %

333

Total deposits

22.5B

$

21.0B

$

17.6B

$

1.5B

$  

7  %

4.9B

$  

28  %

Performance metrics

334

ROTCE

1,3

12.76%

13.10%

12.10%

(34)

bps

66

bps

335

Efficiency ratio

1

45%

43%

45%

213

bps

75

bps

Linked quarter:

Commercial Banking net income

increased $1 million from 3Q14

Total revenue up $20 million with net

interest income up $13 million on a 3%

increase in loans and 7% increase in

deposits

–

Strength in Asset Finance, Mid-

Corporate, Commercial Real Estate, 

Healthcare, and Franchise Finance

–

Deposits up $1.5 billion, or 7%

Noninterest income up $7 million

driven by leasing, capital markets,

and card fees

Noninterest expense up $18 million

driven by higher regulatory costs,

operating lease residual write-down,

incentives and recruiting expense

Other

Linked quarter:

Other net income increased $9

million from 3Q14

–

Net interest income increased

$3 million, driven by lower

swap expense and higher

investment securities

interest, partially offset by

increased wholesale funding

–

Noninterest income

decreased $1 million

–

Noninterest expense

decreased $6 million from

3Q14, despite a $12 million

increase in restructuring

charges and special items

27

Highlights

1

Includes held for sale.

4Q14 change from

$s in millions

4Q14

3Q14

4Q13

3Q14

4Q13

$

%

$

%

336

Net interest income (expense)

21

$      

18

$      

(24)

$     

3

$        

17  %

45

$      

188  %

337

Noninterest income

10

11

39

(1)

(9) %

(29)

(74) %

338

Total revenue

31

29

15

2

7  %

16

107  %

339

Noninterest expense

33

39

16

(6)

(15) %

17

106  %

340

Profit (loss) before provision

for credit losses

(2)

(10)

(1)

8

80  %

(1)

(100) %

341

Provision for credit losses

7

11

53

(4)

(36) %

(46)

(87) %

342

Income (loss) before income

tax expense

(9)

(21)

(54)

12

57  %

45

83  %

343

Income tax expense (benefit)

(14)

(17)

(33)

3

18  %

19

58  %

344

Net income (loss)

5

$        

(4)

$       

(21)

$     

9

$        

225  %

26

$      

124  %

Average balances

345

Total loans and leases

1

4.0B

$  

4.2B

$  

5.6B

$   

(0.2B)

$

(5) %

(1.6B)

$

(28) %

346

Total deposits

5.9B

$  

5.1B

$  

4.1B

$   

0.8B

$  

17  %

1.8B

$  

43  %

Restructuring charges and special items

28

GAAP results included restructuring charges and special items related to enhancing efficiencies and improving processes

across the organization and separation from the Royal Bank of Scotland Group plc (“RBS”).

Expect

to

utilize

the

balance

of

the

Chicago

Divestiture

gain

to

continue

to

reinvest

to

drive

future

growth,

and

to

fund

an

additional

$30-$50

million

of

further

restructuring

charges

and

special

expense

items

in

in

1H15.

as of and for the three months ended

as of and for the twelve months ended

Restructuring charges and special items

($s in millions, except per share data)

pre-tax

after-tax

pretax

after tax

pre-tax

after-tax

pre-tax

after-tax

Noninterest income special items:

Other income

Net Gain on Chicago Divestiture

—

$            

—

$            

—

$            

—

$            

288

$        

180

$        

—

$            

—

$            

Total noninterest income restructuring

charges and special items

—

$            

—

$            

—

$            

—

$            

288

$        

180

$        

—

$            

—

$            

Noninterest expense restructuring charges

and special items:

Salaries and employee benefits

1

—

—

—

44

27

5

3

Outside services

18

12

19

12

78

50

—

—

Occupancy 

5

3

2

1

16

10

11

8

Equipment expense

1

—

—

—

4

2

7

4

Software expense

6

4

—

—

6

4

—

—

Other operating expense

2

1

—

—

21

12

3

2

Goodwill impairment

—

—

—

—

—

—

4,435

4,080

Total noninterest expense restructuring

charges and special items

33

$           

20

$           

21

$           

13

$           

169

$        

105

$        

4,461

$   

4,097

$   

Net restructuring charges and special items

(33)

$         

(20)

$         

(21)

$         

(13)

$         

119

$        

75

$           

(4,461)

$  

(4,097)

$  

Diluted EPS impact

(0.03)

$     

(0.02)

$     

0.13

$      

(7.32)

$     

December 31, 2014

September 30, 2014

December 31, 2014

December 31, 2013

Non-core home equity portfolio serviced by others (SBO)

SBO balances by FICO 

SBO balances by LTV

SBO balances and charge-offs

Top

5

SBO

balances

by

state

Non-core period-end loans

SBO

balances

by

product

SBO Lien Position

1st Lien

2nd Lien

< 70

70-79

80-89

90-99

100-119

120+

< 620

620-679

680-719

720-759

760+

HE Loan

HELOC

29

$s in millions

1

A portion of the serviced by others portfolio is serviced by CFG.

2

SBO distribution gross period-end balances as of December 31, 2014.

3

FICO scores updated quarterly.

SBO balance

Charge-offs loans

Charge-offs line of credit

2

2,3

2

2

2

$3.8B

$3.6B

$3.4B

$3.2B

$3.0B

4Q13

1Q14

2Q14

3Q14

4Q14

Retail

Commercial

SBO

$2.2B

$2.1B

$2.0B

$1.9B

$1.8B

4.02%

3.32%

2.51%

2.43%

1.67%

1.93%

1.60%

1.21%

1.18%

0.81%

4Q13

1Q14

2Q14

3Q14

4Q14

$331

$116

$112

$109

$96

$583

$515

19%

16%

22%

19%

18%

6%

14%

17%

18%

20%

31%

5%

95%

$1.3B

69%

$0.6B

31%

1

Non-GAAP Financial Measures

30

This document contains non-GAAP financial measures.  The table below presents reconciliations of certain non-GAAP measures.  These reconciliations exclude goodwill

impairment, restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP.  Special

items include regulatory expenses and expenses relating to our initial public offering.

The non-GAAP measures set forth below include "total revenue", "noninterest income"," noninterest expense", "pre-provision profit", "income before income tax expense

(benefit)", "income tax expense (benefit)", "net income (loss)", "salaries and employee benefits", "outside services", "occupancy", "equipment expense", "amortization of

software", "other operating expense", "net income (loss) per average common share", "return of average common equity" and "return on average total assets". In addition,

we present computations for "tangible common equity (period-end)', "pro forma Basel III common equity tier 1 capital", "return on average tangible common equity", "return

on average total tangible assets" and "efficiency ratio" as part of our non-GAAP measures.“

We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our

operating performance and make day-to-day operating decisions. In addition, we believe goodwill impairment, restructuring charges and special items in any period do not

reflect the operational performance of the business in that period and, accordingly, it is useful to consider these line items with and without goodwill impairment,

restructuring charges and special items. We believe this presentation also increases comparability of period-to-period results.

We also consider pro forma capital ratios defined by banking regulators but not effective at each period end to be non-GAAP financial measures. Since analysts and banking

regulators may assess our capital adequacy using these pro forma ratios, we believe they are useful to provide investors the ability to assess our capital adequacy on the same

basis.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures.  Accordingly, our non-GAAP

financial measures may not be comparable to similar measures used by other companies.  We caution investors not to place undue reliance on such non-GAAP measures, but

instead to consider them with the most directly comparable GAAP measure.  Non-GAAP financial measures have limitations as analytical tools, and should not be considered

in isolation, or as a substitute for our results as reported under GAAP.

Non-GAAP Reconciliation Table

31

(Excluding restructuring charges and special items)

$s in millions, except per share data

4Q14

3Q14

2Q14

1Q14

4Q13

2014

2013

Noninterest income, excluding special items:

Noninterest income (GAAP)

A

$339

$341

$640

$358

$379

$1,678

$1,632

Less: Special items -

Chicago gain

—

—

288 

—

—

288 

—

Noninterest income, excluding special items (non-GAAP)

B

$339

$341

$352

$358

$379

$1,390

$1,632

Total revenue, excluding special items:

Total revenue (GAAP)

C

$1,179

$1,161

$1,473

$1,166

$1,158

$4,979

$4,690

Less: Special items -

Chicago gain

—

—

288 

—

—

288 

—

Total revenue, excluding special items (non-GAAP)

D

$1,179

$1,161

$1,185

$1,166

$1,158

$4,691

$4,690

Noninterest expense, excluding restructuring charges and special

items:

Noninterest expense (GAAP)

E

$824

$810

$948

$810

$818

$3,392

$7,679

Less: Restructuring charges and special expense items

JJ

33 

21 

115 

—

26 

169 

4,461 

Noninterest expense, excluding restructuring charges and special

items (non-GAAP)

F

$791

$789

$833

$810

$792

$3,223

$3,218

Net income (loss), excluding restructuring charges and special

items:

Net income (loss) (GAAP)

G

$197

$189

$313

$166

$152

$865

($3,426)

Add: Restructuring charges and special items, net of income

tax expense (benefit)

20 

13 

(108)

—

17 

(75)

4,097 

Net income (loss), excluding restructuring charges and special

items (non-GAAP)

H

$217

$202

$205

$166

$169

$790

$671

Return on average common equity, excluding restructuring

charges and special items:

Average common equity (GAAP)

I

$19,209

$19,411

$19,607

$19,370

$19,364

$19,399

$21,834

Return on average common equity, excluding restructuring

charges and special items (non-GAAP)

H/I

4.48 %

4.14 %

4.19 %

3.48 %

3.47 %

4.07 %

3.08 %

Return on average tangible common equity and return on

average tangible common equity, excluding restructuring charges

and special items:

Average common equity (GAAP)

I

$19,209

$19,411

$19,607

$19,370

$19,364

$19,399

$21,834

Less: Average goodwill (GAAP)

6,876 

6,876 

6,876 

6,876 

6,876 

6,876 

9,063 

Less: Average other intangibles (GAAP)

6 

6 

7 

7 

8 

7 

9 

Add: Average deferred tax liabilities related to goodwill

(GAAP)

403 

384 

369 

351 

342 

377 

459 

Average tangible common equity (non-GAAP)

J

$12,730

$12,913

$13,093

$12,838

$12,822

$12,893

$13,221

Return on average tangible common equity (non-GAAP)

G/J

6.12 %

5.81 %

9.59 %

5.24 %

4.71 %

6.71 %

(25.91)%

Return on average tangible common equity, excluding

restructuring charges and special items (non-GAAP)

H/J

6.76 %

6.22 %

6.28 %

5.24 %

5.24 %

6.13 %

5.08 %

Return on average total assets, excluding restructuring charges

and special items:

Average total assets (GAAP)

K

$130,671

$128,691

$127,148

$123,904

$120,393

$127,624

$120,866

Return on average total assets, excluding restructuring charges

and special items (non-GAAP)

H/K

0.66 %

0.62 %

0.65 %

0.54 %

0.56 %

0.62 %

0.56 %

Return on average total tangible assets and return on average

total tangible assets, excluding restructuring charges and special

items:

Average total assets (GAAP)

K

$130,671

$128,691

$127,148

$123,904

$120,393

$127,624

$120,866

Less: Average goodwill (GAAP)

6,876 

6,876 

6,876 

6,876 

6,876 

6,876 

9,063 

Less: Average other intangibles (GAAP)

6 

6 

7 

7 

8 

7 

9 

Add: Average deferred tax liabilities related to goodwill

(GAAP)

403 

384 

369 

351 

342 

377 

459 

Average tangible assets (non-GAAP)

L

$124,192

$122,193

$120,634

$117,372

$113,851

$121,118

$112,253

Return on average total tangible assets (non-GAAP)

G/L

0.63 %

0.61 %

1.04 %

0.57 %

0.53 %

0.71 %

(3.05)%

Return on average total tangible assets, excluding restructuring

charges and special items (non-GAAP)

H/L

0.69 %

0.66 %

0.68 %

0.57 %

0.59 %

0.65 %

0.6 %

QUARTERLY TRENDS

FULL YEAR

Non-GAAP Reconciliation Table

32

(Excluding restructuring charges and special items)

$s in millions, except per share data

$s in millions, except per share data

4Q14

3Q14

2Q14

1Q14

4Q13

2014

2013

Efficiency ratio and efficiency ratio, excluding restructuring charges and

special items:

Net interest income (GAAP)

$840

$820

$833

$808

$779

$3,301

$3,058

Add: Noninterest income (GAAP)

339 

341 

640 

358 

379 

1,678 

1,632 

Total revenue (GAAP)

C

$1,179

$1,161

$1,473

$1,166

$1,158

$4,979

$4,690

Efficiency ratio (non-GAAP)

E/C

69.88 %

69.84 %

64.33 %

69.43 %

70.62 %

68.12 %

163.73 %

Efficiency ratio, excluding restructuring charges and special items

(non-GAAP)

F/D

67.11 %

68.02 %

70.23 %

69.43 %

68.35 %

68.70%

68.61 %

Net income (loss) per average common share -

basic and diluted,

excluding restructuring charges and special items:

Average common shares outstanding -

basic (GAAP)

M

546,810,009 

559,998,324 

559,998,324 

559,998,324 

559,998,324 

556,674,146 

559,998,324 

Average common shares outstanding -

diluted (GAAP)

N

550,676,298 

560,243,747 

559,998,324 

559,998,324 

559,998,324 

557,724,936 

559,998,324 

Net income (loss) applicable to common stockholders (GAAP)

O

197 

189 

313 

166 

152 

865 

(3,426)

Net income (loss) per average common share -

basic (GAAP)

O/

M

0.36

0.34

0.56

0.30

0.27

1.55

(6.12)

Net income (loss) per average common share -

diluted (GAAP)

O/N

0.36

0.34

0.56

0.30

0.27

1.55

(6.12)

Net income (loss) applicable to common stockholders, excluding

restructuring charges and special items (non-GAAP)

P

217 

202 

205 

166 

169 

790 

671 

Net income per average common share -

basic, excluding restructuring

charges and special items (non-GAAP)

P/M

0.40

0.36 

0.37 

0.30 

0.30

1.42 

1.20

Net income per average common share -

diluted, excluding

restructuring charges and special items (non-GAAP)

P/N

0.39 

0.36 

0.37 

0.30 

0.30 

1.42 

1.20 

Pro forma Basel III common equity Tier 1 capital ratio:

Tier 1 common capital (regulatory)

$13,173

$13,330

$13,448

$13,460

$13,301

Change in DTA and other threshold deductions (GAAP)

(6)

(5)

(7)

(7)

6 

Basel III common equity Tier 1 (non-GAAP)

Q

$13,179

$13,335

$13,455

$13,467

$13,295

Risk-weighted assets (regulatory general risk weight approach)

105,964 

103,207 

101,397 

100,368 

98,634 

Net change in credit and other risk-weighted assets (regulatory)

2,882 

3,207 

2,383 

2,450 

2,687 

Basel III standardized approach risk-weighted assets (non-GAAP)

R

$108,846

$106,414

$103,780

$102,818

$101,321

Pro forma Basel III common equity Tier 1 capital ratio  (non-GAAP)

Q/R

12.1 %

12.5 %

13.0 %

13.1 %

13.1 %

Salaries and employee benefits, excluding restructuring charges and

special items:

Salaries and employee benefits (GAAP)

S

$397

$409

$467

$405

$391

$1,678

$1,652

Less: Restructuring charges and special items

1 

—

43 

—

5 

44 

5 

Salaries and employee benefits, excluding restructuring charges and

special items (non-GAAP)

T

$396

$409

$424

$405

$386

$1,634

$1,647

Outside services, excluding restructuring charges and special items:

Outside services (GAAP)

U

$106

$106

$125

$83

$101

$420

$360

Less: Restructuring charges and special items

18 

19 

41 

—

—

78 

—

Outside services, excluding restructuring charges and special items

(non-GAAP)

V

$88

$87

$84

$83

$101

$342

$360

Occupancy, excluding restructuring charges and special items:

Occupancy (GAAP)

W

$81

$77

$87

$81

$83

$326

$327

Less: Restructuring charges and special items

5 

2 

9 

—

11 

16 

11 

Occupancy, excluding restructuring charges and special items

(non-GAAP)

X

$76

$75

$78

$81

$72

$310

$316

Equipment expense, excluding restructuring charges and special items:

Equipment expense (GAAP)

Y

$63

$58

$65

$64

$68

$250

$275

Less: Restructuring charges and special items

1 

—

3 

—

7 

4 

7 

Equipment expense, excluding restructuring charges and special items

(non-GAAP)

Z

$62

$58

$62

$64

$61

$246

$268

QUARTERLY TRENDS

FULL YEAR

Non-GAAP Reconciliation Table

33

(Excluding restructuring charges and special items)

$s in millions, except per share data

4Q14

3Q14

2Q14

1Q14

4Q13

2014

2013

Amortization of software, excluding restructuring charges and

special items:

Amortization of software

AA

$43

$38

$33

$31

$32

$145

$102

Less: Restructuring charges and special items

6 

—

—

—

—

6 

—

Amortization of software, excluding restructuring charges and

special items (non-GAAP)

BB

$37

$38

$33

$31

$32

$139

$102

special items:

Other operating expense (GAAP)

CC

$134

$122

$171

$146

$143

$573

$528

Less: Restructuring charges and special items

2 

—

19 

—

3 

21 

3 

special items (non-GAAP)

DD

$132

$122

$152

$146

$140

$552

$525

Total revenue, excluding restructuring charges and special items

(non-GAAP)

D

$1,179

$1,161

$1,185

$1,166

$1,158

$4,691

$4,690

Less: Noninterest expense, excluding restructuring charges

and special items (non-GAAP)

F

791 

789 

833 

810 

792 

3,223

3,218 

Pre-provision profit, excluding restructuring charges and special

items (non-GAAP)

EE

$388

$372

$352

$356

$366

$1,468

$1,472

Income before income tax expense (benefit), excluding

restructuring charges and special items:

Income

before

income

tax

expense

(benefit)

(GAAP)

FF

$283

$274

$476

$235

$208

$1,268

($3,468)

Less: Income before income tax expense (benefit) related to

restructuring charges and special items (GAAP)

(33)

(21)

173 

—

(26)

119

(4,461)

Income

before

income

tax

expense

(benefit),

excluding

restructuring charges and special items (non-GAAP)

GG

$316

$295

$303

$235

$234

$1,149

$993

Income tax expense (benefit), excluding restructuring

charges

and special items:

Income tax expense (benefit) (GAAP)

HH

$86

$85

$163

$69

$56

$403

($42)

Less: Income tax (benefit) related to restructuring charges and

special items (GAAP)

(13)

(8)

65 

—

(9)

44

(364)

Income

tax

expense

(benefit),

excluding

restructuring

charges

and special items (non-GAAP)

II

$99

$93

$98

$69

$65

$359

$322

Restructuring

charges

and

special

expense

items

include:

Goodwill impairment

-

-

-

-

-

-

$4,435

Restructuring charges

10 

1 

103 

—

26 

114

26 

Special items

23 

20 

12 

—

—

55

—

Restructuring charges and special expense items

JJ

$33

$21

$115

$0

$26

$169

$4,461

Tangible Common Equity (period-end):

Stockholders' equity

$19,268

$19,383

$19,597

$19,442

$19,196

$19,268

$19,196

Less: Goodwill

(6,876)

(6,876)

(6,876)

(6,876)

(6,876)

(6,876)

(6,876)

Less: Other intangible assets

(6)

(6)

(7)

(7)

(8)

(6)

(8)

Add: Deferred tax liabilities

420

399

384

366

350

420

350

Total tangible common equity

KK

$12,806

$12,900

$13,098

$12,925

$12,662

$12,806

$12,662

QUARTERLY TRENDS

FULL YEAR

Other operating expense, excluding restructuring charges and

Pre-provision profit, excluding restructuring charges and

Other operating expense, excluding restructuring charges and

Special  items

Non-GAAP Reconciliation Table

34

Non-GAAP

Reconciliation

-

Segments

$s in millions

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Net income (loss) (GAAP)

A

$52

$140

$5

$197

$54

$139

($4)

$189

$44

$141

$128

$313

Return on average tangible common equity

Average common equity (GAAP)

B

$4,756

$4,334

$10,119

$19,209

$4,685

$4,205

$10,521

$19,411

$4,640

$4,129

$10,838

$19,607

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

6

6

—

—

6

6

—

—

7

7

Add: Average deferred tax liabilities related to goodwill (GAAP)

—

—

403

403

—

—

384

384

—

—

369

369

Average tangible common equity (non-GAAP)

C

$4,756

$4,334

$3,640

$12,730

$4,685

$4,205

$4,023

$12,913

$4,640

$4,129

$4,324

$13,093

Return on average tangible common equity (non-GAAP)

A/C

4.30%

12.76%

NM

6.12%

4.57%

13.10%

NM

5.81%

3.87%

13.78%

NM

9.59%

Return on average total tangible assets

Average total assets (GAAP)

D

$50,546

$40,061

$40,064

$130,671

$49,012

$38,854

$40,825

$128,691

$48,556

$38,022

$40,570

$127,148

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

6

6

—

—

6

6

—

—

7

7

Add: Average deferred tax liabilities related to goodwill (GAAP)

—

—

403

403

—

—

384

384

—

—

369

369

Average tangible assets (non-GAAP)

E

$50,546

$40,061

$33,585

$124,192

$49,012

$38,854

$34,327

$122,193

$48,556

$38,022

$34,056

$120,634

Return on average total tangible assets (non-GAAP)

A/E

0.40%

1.38%

NM

0.63%

0.44%

1.42%

NM

0.61%

0.37%

1.50%

NM

1.04%

Efficiency ratio

Noninterest expense (GAAP)

F

$611

$180

$33

$824

$609

$162

$39

$810

$655

$157

$136

$948

Net interest income (GAAP)

536

283

21

840

532

270

18

820

546

264

23

833

Noninterest income (GAAP)

218

111

10

339

226

104

11

341

236

107

297

640

Total revenue

G

$754

$394

$31

$1,179

$758

$374

$29

$1,161

$782

$371

$320

$1,473

Efficiency ratio (non-GAAP)

F/G

81.09%

45.48%

NM

69.88%

80.42%

43.35%

NM

69.84%

83.61%

42.36%

NM

64.33%

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Net income (loss) (GAAP)

A

$32

$141

($7)

$166

$50

$123

($21)

$152

Return on average tangible common equity

Average common equity (GAAP)

B

$4,568

$4,023

$10,779

$19,370

$4,448

$3,978

$10,938

$19,364

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

7

7

—

—

8

8

Add: Average deferred tax liabilities related to goodwill (GAAP)

—

—

351

351

—

—

342

342

Average tangible common equity (non-GAAP)

C

$4,568

$4,023

$4,247

$12,838

$4,448

$3,978

$4,396

$12,822

Return on average tangible common equity (non-GAAP)

A/C

2.81%

14.17%

NM

5.24%

4.40%

12.10%

NM

4.71%

Return on average total tangible assets

Average total assets (GAAP)

D

$47,610

$36,955

$39,339

$123,904

$46,225

$36,094

$38,074

$120,393

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

7

7

—

—

8

8

Add: Average deferred tax liabilities related to goodwill (GAAP)

—

—

351

351

—

—

342

342

Average tangible assets (non-GAAP)

E

$47,610

$36,955

$32,807

$117,372

$46,225

$36,094

$31,532

$113,851

Return on average total tangible assets (non-GAAP)

A/E

0.27%

1.54%

NM

0.57%

0.42%

1.33%

NM

0.53%

Efficiency ratio

Noninterest expense (GAAP)

F

$638

$153

$19

$810

$638

$164

$16

$818

Net interest income (GAAP)

537

256

15

808

543

260

(24)

779

Noninterest income (GAAP)

219

107

32

358

235

105

39

379

Total revenue

G

$756

$363

$47

$1,166

$778

$365

$15

$1,158

Efficiency ratio (non-GAAP)

F/G

84.39%

42.13%

NM

69.43%

81.84%

44.73%

NM

70.62%

Three Months Ended March 31, 2014

Three Months Ended December 31, 2013

Three Months Ended December 31, 2014

Three Months Ended September 30, 2014

Three Months Ended June 30, 2014

35

EX-99.3

Exhibit 99.3

Citizens Financial Group, Inc.

Financial Supplement

Fourth Quarter and Full Year 2014

1

Table of Contents	Page
Consolidated Financial Highlights		3
Consolidated Statements of Operations (unaudited)		5
Consolidated Balance Sheets (unaudited)		6
Loans and Deposits		7
Average Balance Sheets and Annualized Yields		8
Segment Financial Highlights		10
Credit-Related Information
Credit Exposure		21
Nonperforming Assets		22
Charge-offs, Recoveries and Related Ratios		23
Summary of Changes in the Allowances		25
Allowance Components		26
Capital and Ratios		27
Per-Share Related Information		28
Non-GAAP Financial Measures and Reconciliations		29
Forward-Looking Statements		36

2

CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per share and ratio data)

	QUARTERLY TRENDS																									FULL YEAR
														4Q14 Change																	2014 Change
	4Q14		3Q14			2Q14		1Q14			4Q13			3Q14						4Q13						2014		2013			2013
														$			%			$			%								$			%
SELECTED OPERATING DATA
Total revenue	$	1,179	$	1,161		$	1,473	$	1,166		$	1,158		$	18			2	%	$	21			2	%	$	4,979	$	4,690		$	289			6	%
Noninterest expense		824		810			948		810			818			14			2			6			1			3,392		7,679			(4,287	)		(56	)
Profit (loss) before provision for credit losses		355		351			525		356			340			4			1			15			4			1,587		(2,989	)		4,576			NM
Provision for credit losses		72		77			49		121			132			(5	)		(6	)		(60	)		(45	)		319		479			(160	)		(33	)
NET INCOME (LOSS)		197		189			313		166			152			8			4			45			30			865		(3,426	)		4,291			NM
Net income, excluding restructuring charges and special items1		217		202			205		166			169			15			7			48			28			790		671			119			18
PER COMMON SHARE DATA
Basic earnings	$	0.36	$	0.34		$	0.56	$	0.30		$	0.27		$	0.02			6	%	$	0.09			33	%	$	1.55	($	6.12	)	$	7.67			125	%
Diluted earnings		0.36		0.34			0.56		0.30			0.27			0.02			6			0.09			33			1.55		(6.12	)		7.67			125
Basic earnings, excluding restructuring charges and special items1		0.40		0.36			0.37		0.30			0.30			0.04			11			0.10			33			1.42		1.20			0.22			18
Diluted earnings, excluding restructuring charges and special items1		0.39		0.36			0.37		0.30			0.30			0.03			8			0.09			30			1.42		1.20			0.22			18
Cash dividends declared and paid per share		0.10		0.68			0.61		0.04			0.67			(0.58	)		(85	)		(0.57	)		(85	)		1.43		2.12			(0.69	)		(33	)
Book value		35.30		34.61			35.00		34.72			34.28			0.69			2			1.02			3			35.30		34.28			1.02			3
Tangible book value		23.46		23.04			23.39		23.08			22.61			0.42			2			0.85			4			23.46		22.61			0.85			4
COMMON SHARES OUTSTANDING
Average: Basic		546,810,009		559,998,324			559,998,324		559,998,324			559,998,324			(13,188,315	)		(2	)%		(13,188,315	)		(2	%)		556,674,146		559,998,324			(3,324,178	)		(1	%)
Diluted		550,676,298		560,243,747			559,998,324		559,998,324			559,998,324			(9,567,449	)		(2	)		(9,322,026	)		(2	)		557,724,936		559,998,324			(2,273,388	)		—
Common shares at period-end		545,884,519		559,998,324			559,998,324		559,998,324			559,998,324			(14,113,805	)		(3	)		(14,113,805	)		(3	)		545,884,519		559,998,324			(14,113,805	)		(3	)
Closing share price	$	24.86	$	23.42		$	—	$	—		$	—		$	1.44			6		$	24.86			—		$	24.86	$	—		$	24.86			—
Market capitalization		13,571		13,115			—		—			—			456			3			13,571			—			13,571		—			13,571			—
SEGMENT NET INCOME (LOSS)
Consumer Banking	$	52	$	54		$	44	$	32		$	50		($	2	)		(4	)%	$	2			4	%	$	182	$	242		($	60	)		(25	)%
Commercial Banking		140		139			141		141			123			1			1			17			14			561		514			47			9
Other		5		(4	)		128		(7	)		(21	)		9			225			26			124			122		(4,182	)		4,304			NM
NET INCOME (LOSS)	$	197	$	189		$	313	$	166		$	152		$	8			4		$	45			30		$	865	($	3,426	)	$	4,291			NM

¹  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

3

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)

	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
FINANCIAL RATIOS
Net interest margin		2.80	%		2.77	%		2.87	%		2.89	%		2.83	%		3 bps			—			(3) bps			—			2.83	%		2.85	%		(2) bps			—
Return on average common equity		4.06			3.87			6.41			3.48			3.12			19 bps			—			94 bps			—			4.46			(15.69	)		2,015 bps			—
Return on average common equity, excluding restructuring charges and special items1		4.48			4.14			4.19			3.48			3.47			34 bps			—			101 bps			—			4.07			3.08			99 bps			—
Return on average tangible common equity1		6.12			5.81			9.59			5.24			4.71			31 bps			—			141 bps			—			6.71			(25.91	)		3,262 bps			—
Return on average tangible common equity, excluding restructuring charges and special items1		6.76			6.22			6.28			5.24			5.24			54 bps			—			152 bps			—			6.13			5.08			105 bps			—
Return on average total assets		0.60			0.58			0.99			0.54			0.50			2 bps			—			10 bps			—			0.68			(2.83	)		351 bps			—
Return on average total assets, excluding restructuring charges and special items1		0.66			0.62			0.65			0.54			0.56			4 bps			—			10 bps			—			0.62			0.56			6 bps			—
Return on average total tangible assets1		0.63			0.61			1.04			0.57			0.53			2 bps			—			10 bps			—			0.71			(3.05	)		376 bps			—
Return on average total tangible assets, excluding restructuring charges and special items1		0.69			0.66			0.68			0.57			0.59			3 bps			—			10 bps			—			0.65			0.60			5 bps			—
Effective income tax rate		30.56			30.81			34.27			29.45			26.87			(25) bps			—			369 bps			—			31.80			1.21			3,059 bps			—
Efficiency ratio1		69.88			69.84			64.33			69.43			70.62			4 bps			—			(74) bps			—			68.12			163.73			(9,561) bps			—
Efficiency ratio, excluding restructuring charges and special items1		67.11			68.02			70.23			69.43			68.35			(91) bps			—			(124) bps			—			68.70			68.61			9 bps			—
CAPITAL RATIOS - BASEL I PERIOD END (PRELIMINARY)
Tier 1 capital ratio		12.4	%		12.9	%		13.3	%		13.4	%		13.5	%
Total capital ratio		15.8			16.1			16.2			16.0			16.1
Leverage ratio		10.6			10.9			11.1			11.4			11.6
Tier 1 common equity ratio2		12.4			12.9			13.3			13.4			13.5
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	132,857		$	131,341		$	130,279		$	126,892		$	122,154		$	1,516			1	%	$	10,703			9	%	$	132,857		$	122,154		$	10,703			9	%
Loans and leases:
Commercial		43,226			41,470			40,974			40,075			39,395			1,756			4			3,831			10			43,226			39,395			3,831			10
Retail		50,184			49,279			47,855			47,008			46,464			905			2			3,720			8			50,184			46,464			3,720			8
Total loans and leases		93,410			90,749			88,829			87,083			85,859			2,661			3			7,551			9			93,410			85,859			7,551			9
Deposits	$	95,707		$	93,463		$	91,656		$	87,462		$	86,903		$	2,244			2		$	8,804			10		$	95,707		$	86,903		$	8,804			10
Long-term borrowed funds		4,642			2,062			1,732			1,403			1,405			2,580			125			3,237			230			4,642			1,405			3,237			230
Total stockholders’ equity		19,268			19,383			19,597			19,442			19,196			(115	)		(1	)		72			—			19,268			19,196			72			—
Loans-to-deposits ratio (period-end balances)3		97.89	%		97.32	%		97.20	%		95.48	%		94.50	%		57 bps			—			339 bps			—			97.89	%		94.50	%		339 bps			—
Loans-to-deposits ratio (average balances)3		97.34			98.01			96.77			95.37			92.35			(67) bps			—			499 bps			—			96.95			91.92			503 bps			—
Full-time equivalent employees		17,677			17,852			18,049			18,856			19,152			(175	)		(1	)		(1,475	)		(8	)		17,677			19,152			(1,475	)		(8	)

¹  These are non-GAAP financial measures. For further information on these measures, refer pages 29-35.

²  Tier 1 common equity ratio is calculated as Tier 1 common capital divided by risk-weighted assets. Tier 1 common capital represents Tier 1 capital, excluding qualifying restricted core capital elements.

³  Ratios include both loans and leases held for sale and deposits held for sale.

4

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)

	QUARTERLY TRENDS																						FULL YEAR
											4Q14 Change																	2014 Change
	4Q14		3Q14		2Q14		1Q14		4Q13		3Q14						4Q13						2014		2013			2013
											$			%			$			%								$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	777	$	754	$	751	$	730	$	743	$	23			3	%	$	34			5	%	$	3,012	$	3,001		$	11			—	%
Interest and fees on loans held for sale		1		2		1		1		2		(1	)		(50	)		(1	)		(50	)		5		12			(7	)		(58	)
Interest and fees on other loans held for sale		1		—		10		12		—		1			—			1			—			23		—			23			—
Investment securities		161		155		154		149		129		6			4			32			25			619		477			142			30
Interest-bearing deposits in banks		1		2		1		1		2		(1	)		(50	)		(1	)		(50	)		5		11			(6	)		(55	)
Total interest income		941		913		917		893		876		28			3			65			7			3,664		3,501			163			5
INTEREST EXPENSE:
Deposits		48		41		34		33		40		7			17			8			20			156		216			(60	)		(28	)
Deposits held for sale		—		—		2		2		—		—			—			—			—			4		—			4			—
Federal funds purchased and securities sold under agreements to repurchase		7		9		1		15		42		(2	)		(22	)		(35	)		(83	)		32		192			(160	)		(83	)
Other short-term borrowed funds		19		21		30		19		1		(2	)		(10	)		18			1,800			89		4			85			2,125
Long-term borrowed funds		27		22		17		16		14		5			23			13			93			82		31			51			165
Total interest expense		101		93		84		85		97		8			9			4			4			363		443			(80	)		(18	)
Net interest income		840		820		833		808		779		20			2			61			8			3,301		3,058			243			8
NONINTEREST INCOME:
Service charges and fees		144		144		147		139		152		—			—			(8	)		(5	)		574		640			(66	)		(10	)
Card fees		58		58		61		56		58		—			—			—			—			233		234			(1	)		—
Trust and investment services fees		38		39		42		39		40		(1	)		(3	)		(2	)		(5	)		158		149			9			6
Foreign exchange and trade finance fees		25		26		22		22		24		(1	)		(4	)		1			4			95		97			(2	)		(2	)
Capital markets fees		25		22		26		18		18		3			14			7			39			91		53			38			72
Mortgage banking fees		16		21		14		20		20		(5	)		(24	)		(4	)		(20	)		71		153			(82	)		(54	)
Bank-owned life insurance income		13		13		12		11		13		—			—			—			—			49		50			(1	)		(2	)
Securities gains, net		1		2		—		25		25		(1	)		(50	)		(24	)		(96	)		28		144			(116	)		(81	)
Other income		19		16		316		28		29		3			19			(10	)		(34	)		379		112			267			238
Total noninterest income		339		341		640		358		379		(2	)		(1	)		(40	)		(11	)		1,678		1,632			46			3
TOTAL REVENUE		1,179		1,161		1,473		1,166		1,158		18			2			21			2			4,979		4,690			289			6
Provision for credit losses		72		77		49		121		132		(5	)		(6	)		(60	)		(45	)		319		479			(160	)		(33	)
NONINTEREST EXPENSE:
Salaries and employee benefits		397		409		467		405		391		(12	)		(3	)		6			2			1,678		1,652			26			2
Outside services		106		106		125		83		101		—			—			5			5			420		360			60			17
Occupancy		81		77		87		81		83		4			5			(2	)		(2	)		326		327			(1	)		—
Equipment expense		63		58		65		64		68		5			9			(5	)		(7	)		250		275			(25	)		(9	)
Amortization of software		43		38		33		31		32		5			13			11			34			145		102			43			42
Goodwill impairment		—		—		—		—		—		—			—			—			—			—		4,435			(4,435	)		(100	)
Other operating expense		134		122		171		146		143		12			10			(9	)		(6	)		573		528			45			9
Total noninterest expense		824		810		948		810		818		14			2			6			1			3,392		7,679			(4,287	)		(56	)
Income before income tax expense (benefit)		283		274		476		235		208		9			3			75			36			1,268		(3,468	)		4,736			NM
Income tax expense (benefit)		86		85		163		69		56		1			1			30			54			403		(42	)		445			NM
NET INCOME (LOSS)	$	197	$	189	$	313	$	166	$	152	$	8			4		$	45			30		$	865	($	3,426	)	$	4,291			NM
Net income excluding restructuring charges and special items1	$	217	$	202	$	205	$	166	$	169	$	15			7		$	48			28		$	790	$	671		$	119			18

¹  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

5

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)

PERIOD END BALANCES	AS OF															DECEMBER 31, 2014 CHANGE
	Dec 31, 2014			Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2014						Dec 31, 2013
																$			%			$			%
ASSETS:
Cash and due from banks	$	1,171		$	993		$	1,038		$	909		$	1,406		$	178			18	%	($	235	)		(17	%)
Interest-bearing cash and due from banks		2,105			1,896			4,318			1,942			1,351			209			11			754			56
Interest-bearing deposits in banks		370			292			309			300			233			78			27			137			59
Securities available for sale, at fair value		18,656			18,666			18,493			18,412			15,995			(10	)		—			2,661			17
Securities held to maturity		5,148			5,289			5,382			5,457			4,315			(141	)		(3	)		833			19
Other investment securities		872			893			948			935			935			(21	)		(2	)		(63	)		(7	)
Loans held for sale, at fair value		256			205			173			131			176			51			25			80			45
Other loans held for sale		25			3			89			1,248			1,078			22			733			(1,053	)		(98	)
Loans and leases		93,410			90,749			88,829			87,083			85,859			2,661			3			7,551			9
Less: Allowance for loan and lease losses		(1,195	)		(1,201	)		(1,210	)		(1,259	)		(1,221	)		6			—			26			2
Net loans and leases		92,215			89,548			87,619			85,824			84,638			2,667			3			7,577			9
Derivative assets		629			547			635			626			650			82			15			(21	)		(3	)
Premises and equipment		595			541			560			574			592			54			10			3			1
Bank-owned life insurance		1,527			1,370			1,361			1,350			1,339			157			11			188			14
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		—			2,067			—			—			446			(2,067	)		(100	)		(446	)		(100	)
Other branch assets held for sale		—			—			—			40			46			—			—			(46	)		(100	)
Other assets		2,412			2,155			2,478			2,268			2,078			257			12			334			16
TOTAL ASSETS	$	132,857		$	131,341		$	130,279		$	126,892		$	122,154		$	1,516			1		$	10,703			9
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	26,086		$	25,877		$	26,670		$	25,681		$	24,931		$	209			1	%	$	1,155			5	%
Interest-bearing		69,621			67,586			64,986			61,781			61,972			2,035			3			7,649			12
Total deposits		95,707			93,463			91,656			87,462			86,903			2,244			2			8,804			10
Deposits held for sale		—			—			—			5,188			5,277			—			—			(5,277	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase		4,276			5,184			6,807			6,080			4,791			(908	)		(18	)		(515	)		(11	)
Other short-term borrowed funds		6,253			6,715			7,702			4,950			2,251			(462	)		(7	)		4,002			178
Derivative liabilities		612			638			747			828			939			(26	)		(4	)		(327	)		(35	)
Deferred taxes, net		493			354			403			319			199			139			39			294			148
Long-term borrowed funds		4,642			2,062			1,732			1,403			1,405			2,580			125			3,237			230
Due to broker		—			2,087			—			—			—			(2,087	)		(100	)		—			—
Other liabilities		1,606			1,455			1,635			1,220			1,193			151			10			413			35
TOTAL LIABILITIES		113,589			111,958			110,682			107,450			102,958			1,631			1			10,631			10
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized, no shares outstanding for each of the periods presented		—			—			—			—			—			—			—			—			—
Common stock:
$.01 par value, 1,000,000,000 shares authorized for each of the periods presented		6			6			6			6			6			—			—			—			—
Additional paid-in capital		18,676			18,660			18,603			18,603			18,603			16			—			73			—
Treasury stock, at cost		(336	)		—			—			—			—			(336	)		—			(336	)		—
Retained earnings		1,294			1,152			1,346			1,376			1,235			142			12			59			5
Accumulated other comprehensive loss		(372	)		(435	)		(358	)		(543	)		(648	)		63			14			276			43
TOTAL STOCKHOLDERS’ EQUITY		19,268			19,383			19,597			19,442			19,196			(115	)		(1	)		72			—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	132,857		$	131,341		$	130,279		$	126,892		$	122,154		$	1,516			1		$	10,703			9
Memo: Total tangible common equity1	$	12,806		$	12,900		$	13,098		$	12,925		$	12,662		($	94	)		(1	)	$	144			1

¹  Total tangible common equity is a non-GAAP financial measure. For further information on these measures, refer to page 27.

6

LOANS AND DEPOSITS

(dollars in millions)

PERIOD END BALANCES	AS OF										DECEMBER 31, 2014 CHANGE
	Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2014						Dec 31, 2013
											$			%			$			%
LOANS AND LEASES:
Commercial	$	31,431	$	30,356	$	30,076	$	29,435	$	28,667	$	1,075			4	%	$	2,764			10	%
Commercial real estate		7,809		7,239		7,158		6,902		6,948		570			8			861			12
Leases		3,986		3,875		3,740		3,738		3,780		111			3			206			5
Total commercial		43,226		41,470		40,974		40,075		39,395		1,756			4			3,831			10
Residential mortgages		11,832		11,265		10,640		10,099		9,726		567			5			2,106			22
Home equity loans		3,424		3,635		3,858		4,139		4,301		(211	)		(6	)		(877	)		(20	)
Home equity lines of credit		15,423		15,558		15,618		15,523		15,667		(135	)		(1	)		(244	)		(2	)
Home equity loans serviced by others1		1,228		1,290		1,358		1,427		1,492		(62	)		(5	)		(264	)		(18	)
Home equity lines of credit serviced by others1		550		580		614		648		679		(30	)		(5	)		(129	)		(19	)
Automobile		12,706		12,080		10,974		9,981		9,397		626			5			3,309			35
Student		2,256		2,069		1,941		2,305		2,208		187			9			48			2
Credit card		1,693		1,676		1,646		1,651		1,691		17			1			2			—
Other retail		1,072		1,126		1,206		1,235		1,303		(54	)		(5	)		(231	)		(18	)
Total retail		50,184		49,279		47,855		47,008		46,464		905			2			3,720			8
Total loans and leases	$	93,410	$	90,749	$	88,829	$	87,083	$	85,859	$	2,661			3		$	7,551			9
Loans held for sale	$	256	$	205	$	173	$	131	$	176	$	51			25	%	$	80			45	%
Other loans held for sale2		25		3		89		1,248		1,078		22			733			(1,053	)		(98	)
DEPOSITS:
Demand	$	26,086	$	25,877	$	26,670	$	25,681	$	24,931	$	209			1	%	$	1,155			5	%
Checking with interest		16,394		15,449		15,171		13,694		13,630		945			6			2,764			20
Regular savings		7,824		7,655		7,829		7,899		7,509		169			2			315			4
Money market accounts		33,345		32,870		31,687		30,689		31,245		475			1			2,100			7
Term deposits		12,058		11,612		10,299		9,499		9,588		446			4			2,470			26
Total deposits	$	95,707	$	93,463	$	91,656	$	87,462	$	86,903	$	2,244			2		$	8,804			10
Deposits held for sale2	$	—	$	—	$	—	$	5,188	$	5,277	$	—			—	%	($	5,277	)		(100	)%

¹  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

²  Consists primarily of loans and deposits held for sale as part of the Chicago branch sale.

7

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)

	QUARTERLY TRENDS																											FULL YEAR
AVERAGE BALANCES																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,784		$	2,685		$	2,211		$	1,768		$	2,000		($	901	)		(34	)%	($	216	)		(11	)%	$	2,113		$	2,278		($	165	)		(7	)%
Taxable investment securities		24,658			24,648			24,579			23,375			20,909			10			—			3,749			18			24,319			19,062			5,257			28
Non-taxable investment securities		10			10			11			11			11			—			—			(1	)		(9	)		11			12			(1	)		(8	)
Total investment securities		24,668			24,658			24,590			23,386			20,920			10			—			3,748			18			24,330			19,074			5,256			28
Commercial		30,962			30,186			29,674			29,108			29,058			776			3			1,904			7			29,993			28,654			1,339			5
Commercial real estate		7,427			7,216			7,082			6,898			6,859			211			3			568			8			7,158			6,568			590			9
Leases		3,874			3,789			3,716			3,723			3,619			85			2			255			7			3,776			3,463			313			9
Total commercial		42,263			41,191			40,472			39,729			39,536			1,072			3			2,727			7			40,927			38,685			2,242			6
Residential mortgages		11,647			11,001			10,355			9,889			9,342			646			6			2,305			25			10,729			9,104			1,625			18
Home equity loans		3,527			3,743			4,015			4,231			4,364			(216	)		(6	)		(837	)		(19	)		3,877			4,606			(729	)		(16	)
Home equity lines of credit		15,490			15,572			15,563			15,590			16,109			(82	)		(1	)		(619	)		(4	)		15,552			16,337			(785	)		(5	)
Home equity loans serviced by others1		1,252			1,317			1,388			1,454			1,519			(65	)		(5	)		(267	)		(18	)		1,352			1,724			(372	)		(22	)
Home equity lines of credit serviced by others1		561			591			627			660			692			(30	)		(5	)		(131	)		(19	)		609			768			(159	)		(21	)
Automobile		12,403			11,438			10,528			9,408			9,007			965			8			3,396			38			11,011			8,857			2,154			24
Student		2,142			1,983			2,209			2,262			2,204			159			8			(62	)		(3	)		2,148			2,202			(54	)		(2	)
Credit cards		1,663			1,661			1,647			1,639			1,702			2			—			(39	)		(2	)		1,651			1,669			(18	)		(1	)
Other retail		1,097			1,153			1,215			1,270			1,341			(56	)		(5	)		(244	)		(18	)		1,186			1,453			(267	)		(18	)
Total retail		49,782			48,459			47,547			46,403			46,280			1,323			3			3,502			8			48,115			46,720			1,395			3
Total loans and leases		92,045			89,650			88,019			86,132			85,816			2,395			3			6,229			7			89,042			85,405			3,637			4
Loans held for sale		213			176			138			127			224			37			21			(11	)		(5	)		163			392			(229	)		(58	)
Other loans held for sale		20			27			1,034			1,092			12			(7	)		(26	)		8			67			539			—			539			—
Interest-earning assets		118,730			117,196			115,992			112,505			108,972			1,534			1			9,758			9			116,187			107,149			9,038			8
Allowance for loan and lease losses		(1,195	)		(1,202	)		(1,286	)		(1,238	)		(1,223	)		7			(1	)		28			(2	)		(1,230	)		(1,219	)		(11	)		1
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,063			(2,187	)		(24	)
Other noninterest-earning assets		6,260			5,821			5,566			5,761			5,768			439			8			492			9			5,791			5,873			(82	)		(1	)
Total noninterest-earning assets		11,941			11,495			11,156			11,399			11,421			446			4			520			5			11,437			13,717			(2,280	)		(17	)
TOTAL ASSETS	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2		$	10,278			9		$	127,624		$	120,866		$	6,758			6
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	15,718		$	15,155		$	13,805		$	13,317		$	13,925		$	563			4	%	$	1,793			13	%	$	14,507		$	14,096		$	411			3	%
Money market & savings		40,856			40,096			38,418			38,919			41,838			760			2			(982	)		(2	)		39,579			42,575			(2,996	)		(7	)
Term deposits		11,892			10,596			9,416			9,334			11,254			1,296			12			638			6			10,317			11,266			(949	)		(8	)
Total interest-bearing deposits		68,466			65,847			61,639			61,570			67,017			2,619			4			1,449			2			64,403			67,937			(3,534	)		(5	)
Interest-bearing deposits held for sale		—			—			3,675			4,233			—			—			—			—			—			1,960			—			1,960			—
Federal funds purchased and securities sold under agreements to repurchase2		5,075			6,305			5,709			5,707			4,100			(1,230	)		(20	)		975			24			5,699			2,400			3,299			137
Other short-term borrowed funds		6,119			6,740			6,027			3,637			412			(621	)		(9	)		5,707			1,385			5,640			251			5,389			2,147
Long-term borrowed funds		2,834			1,951			1,419			1,405			1,158			883			45			1,676			145			1,907			778			1,129			145
Total borrowed funds		14,028			14,996			13,155			10,749			5,670			(968	)		(6	)		8,358			147			13,246			3,429			9,817			286
Total interest-bearing liabilities		82,494			80,843			78,469			76,552			72,687			1,651			2			9,807			13			79,609			71,366			8,243			12
Total demand deposits		26,331			25,829			25,984			24,796			26,167			502			2			164			1			25,739			25,399			340			1
Demand deposits held for sale		—			—			868			997			—			—			—			—			—			462			—			462			—
Other liabilities		2,637			2,608			2,220			2,189			2,175			29			1			462			21			2,415			2,267			148			7
TOTAL LIABILITIES		111,462			109,280			107,541			104,534			101,029			2,182			2			10,433			10			108,225			99,032			9,193			9
STOCKHOLDERS’ EQUITY		19,209			19,411			19,607			19,370			19,364			(202	)		(1	)		(155	)		(1	)		19,399			21,834			(2,435	)		(11	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2		$	10,278			9		$	127,624		$	120,866		$	6,758			6
Memo: Total average tangible common equity3	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		($	183	)		(1	)	($	92	)		(1	)	$	12,893		$	13,221		($	328	)		(2	)
Total deposits (interest-bearing and demand)	$	94,797		$	91,676		$	92,166		$	91,596		$	93,184		$	3,121			3		$	1,613			2		$	92,565		$	93,336		($	771	)		(1	)

¹  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

²  Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

³  Total average tangible common equity is a non-GAAP financial measure. For further information on these measures, refer to pages 29-35.

8

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)

	QUARTERLY TRENDS																									FULL YEAR
AVERAGE ANNUALIZED YIELDS & RATES	4Q14					3Q14					2Q14					1Q14					4Q13					2014					2013
	Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense
INTEREST-EARNING ASSETS:
Interest-bearing deposits in banks		0.20	%	$	1		0.23	%	$	2		0.23	%	$	1		0.23	%	$	1		0.33	%	$	1		0.22	%	$	5		0.46	%	$	11
Taxable investment securities		2.61			161		2.51			155		2.51			154		2.56			149		2.48			130		2.55			619		2.50			477
Non-taxable investment securities		2.60			—		2.59			—		2.60			—		2.60			—		2.60			—		2.60			—		2.66			—
Total investment securities		2.61			161		2.51			155		2.51			154		2.57			149		2.48			130		2.55			619		2.50			477
Commercial		2.90			229		2.89			223		3.05			229		3.01			219		3.03			225		2.96			900		3.10			900
Commercial real estate		2.55			48		2.46			46		2.49			45		2.58			45		2.62			46		2.52			183		2.67			178
Leases		2.65			26		2.68			25		2.74			25		2.84			26		2.84			26		2.73			103		3.05			105
Total commercial		2.82			303		2.80			294		2.95			299		2.92			290		2.94			297		2.86			1,186		3.02			1,183
Residential mortgages		3.88			113		3.92			108		4.08			106		3.98			98		3.86			90		3.96			425		3.96			360
Home equity loans		5.31			47		5.31			50		5.31			53		5.23			55		5.28			58		5.29			205		5.35			246
Home equity lines of credit		2.94			114		2.90			113		2.85			111		2.86			110		2.84			116		2.89			450		2.83			463
Home equity loans serviced by others1		6.88			22		6.64			22		6.72			23		6.79			24		6.67			26		6.75			91		6.65			115
Home equity lines of credit serviced by others1		2.70			4		2.62			4		2.74			4		2.67			4		3.02			5		2.68			16		2.88			22
Automobile		2.64			83		2.57			74		2.54			67		2.54			59		2.57			58		2.57			282		2.65			235
Student		5.07			27		4.99			25		4.51			25		4.43			25		4.35			24		4.74			102		4.30			95
Credit cards		10.28			43		9.99			42		9.92			41		10.31			42		10.16			44		10.14			167		10.46			175
Other retail		7.49			21		7.46			22		7.46			22		7.42			23		7.48			25		7.43			88		7.36			107
Total retail		3.79			474		3.78			460		3.81			452		3.85			440		3.82			446		3.80			1,826		3.89			1,818
Total loans and leases		3.34			777		3.33			754		3.40			751		3.41			730		3.42			743		3.37			3,012		3.50			3,001
Loans held for sale		2.68			1		3.46			2		3.40			1		3.29			1		3.45			2		3.10			5		3.07			12
Other loans held for sale		12.94			1		5.44			—		3.90			10		4.21			12		—			—		4.17			23		—			—
Total interest-earning assets		3.14			941		3.08			913		3.16			917		3.19			893		3.18			876		3.14			3,664		3.25			3,501
INTEREST-BEARING LIABILITIES:
Checking with interest		0.11			4		0.09			4		0.06			2		0.06			2		0.06			2		0.08			12		0.06			8
Money market & savings		0.22			23		0.21			21		0.17			16		0.17			16		0.19			20		0.19			77		0.25			105
Term deposits		0.70			21		0.61			16		0.67			16		0.65			15		0.64			18		0.65			67		0.91			103
Total interest-bearing deposits		0.28			48		0.25			41		0.22			34		0.22			33		0.24			40		0.24			156		0.32			216
Interest-bearing deposits held for sale		—			—		—			—		0.21			2		0.23			2		—			—		0.22			4		—			—
Federal funds purchased and securities sold under agreements to repurchase2		0.54			7		0.54			9		0.09			1		1.02			15		4.02			42		0.55			32		7.89			192
Other short-term borrowed funds		1.23			19		1.21			21		2.00			30		2.07			19		0.80			1		1.56			89		1.64			4
Long-term borrowed funds		3.83			27		4.39			22		4.63			17		4.61			16		4.70			14		4.25			82		3.93			31
Total borrowed funds		1.51			53		1.34			52		1.46			48		1.84			50		3.93			57		1.51			203		6.53			227
Total interest-bearing liabilities		0.49			101		0.45			93		0.43			84		0.45			85		0.52			97		0.45			363		0.61			443
INTEREST RATE SPREAD		2.65	%				2.63	%				2.73	%				2.74	%				2.66	%				2.69	%				2.64	%
NET INTEREST MARGIN		2.80					2.77					2.87					2.89					2.83					2.83					2.85
Memo: Total deposit costs		0.20			48		0.18			41		0.15			36		0.16			35		0.17			40		0.17			160		0.23			216

¹  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

²  Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

9

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING

(dollars in millions, except ratios)

	FOURTH QUARTER 2014												THIRD QUARTER 2014												CHANGE
																									4Q14 from 3Q14
	Consumer Banking			Commercial Banking			Other1			Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$			%
Net interest income	$	536		$	283		$	21		$	840		$	532		$	270		$	18		$	820		$	20			2	%
Noninterest income		218			111			10			339			226			104			11			341			(2	)		(1	)
Total revenue		754			394			31			1,179			758			374			29			1,161			18			2
Noninterest expense		611			180			33			824			609			162			39			810			14			2
Profit (loss) before provision for credit losses		143			214			(2	)		355			149			212			(10	)		351			4			1
Provision for credit losses		64			1			7			72			66			—			11			77			(5	)		(6	)
Income (loss) before income tax expense (benefit)		79			213			(9	)		283			83			212			(21	)		274			9			3
Income tax expense (benefit)		27			73			(14	)		86			29			73			(17	)		85			1			1
Net income (loss)	$	52		$	140		$	5		$	197		$	54		$	139		($	4	)	$	189		$	8			4
Average Balances
Total assets	$	50,546		$	40,061		$	40,064		$	130,671		$	49,012		$	38,854		$	40,825		$	128,691		$	1,980			2	%
Total loans and leases2		49,351			38,926			4,001			92,278			47,848			37,787			4,218			89,853			2,425			3
Deposits		66,374			22,500			5,923			94,797			65,609			20,985			5,082			91,676			3,121			3
Interest-earning assets		49,382			39,039			30,309			118,730			47,885			37,927			31,384			117,196			1,534			1
Key Metrics
Net interest margin		4.31	%		2.87	%		NM			2.80	%		4.40	%		2.82	%		NM			2.77	%		3 bps			—
Efficiency ratio3		81.09			45.48			NM			69.88			80.42			43.35			NM			69.84			4 bps			—
Loans-to-deposits ratio (average balances)		74.35			173.01			NM			97.34			72.93			180.06			NM			98.01			(67) bps			—
Return on average total tangible assets3		0.40			1.38			NM			0.63			0.44			1.42			NM			0.61			2 bps			—
Return on average tangible common equity3		4.30			12.76			NM			6.12			4.57			13.10			NM			5.81			31 bps			—

¹  Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

²  Includes loans and leases held for sale.

³  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

10

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)

	FOURTH QUARTER 2014												FOURTH QUARTER 2013												CHANGE
																									4Q14 from 4Q13
	Consumer Banking			Commercial Banking			Other1			Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$			%
Net interest income (expense)	$	536		$	283		$	21		$	840		$	543		$	260		($	24	)	$	779		$	61			8	%
Noninterest income		218			111			10			339			235			105			39			379			(40	)		(11	)
Total revenue		754			394			31			1,179			778			365			15			1,158			21			2
Noninterest expense		611			180			33			824			638			164			16			818			6			1
Profit (loss) before provision for credit losses		143			214			(2	)		355			140			201			(1	)		340			15			4
Provision for credit losses		64			1			7			72			65			14			53			132			(60	)		(45	)
Income (loss) before income tax expense (benefit)		79			213			(9	)		283			75			187			(54	)		208			75			36
Income tax expense (benefit)		27			73			(14	)		86			25			64			(33	)		56			30			54
Net income (loss)	$	52		$	140		$	5		$	197		$	50		$	123		($	21	)	$	152		$	45			30
Average Balances
Total assets	$	50,546		$	40,061		$	40,064		$	130,671		$	46,225		$	36,094		$	38,074		$	120,393		$	10,278			9	%
Total loans and leases2		49,351			38,926			4,001			92,278			44,790			35,684			5,578			86,052			6,226			7
Deposits		66,374			22,500			5,923			94,797			71,423			17,623			4,138			93,184			1,613			2
Interest-earning assets		49,382			39,039			30,309			118,730			44,823			35,820			28,329			108,972			9,758			9
Key Metrics
Net interest margin		4.31	%		2.87	%		NM			2.80	%		4.81	%		2.88	%		NM			2.83	%		(3) bps			—
Efficiency ratio3		81.09			45.48			NM			69.88			81.84			44.73			NM			70.62			(74) bps			—
Loans-to-deposits ratio (average balances)		74.35			173.01			NM			97.34			62.71			202.49			NM			92.35			499 bps			—
Return on average total tangible assets3		0.40			1.38			NM			0.63			0.42			1.33			NM			0.53			10 bps			—
Return on average tangible common equity3		4.30			12.76			NM			6.12			4.40			12.10			NM			4.71			141 bps			—

¹  Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

²  Includes loans and leases held for sale.

³  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

11

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)

	FULL YEAR 2014											FULL YEAR 2013												CHANGE
																								2014 from 2013
	Consumer Banking			Commercial Banking			Other1		Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$			%
Net interest income (expense)	$	2,151		$	1,073		$	77	$	3,301		$	2,176		$	1,031		($	149	)	$	3,058		$	243			8	%
Noninterest income		899			429			350		1,678			1,025			389			218			1,632			46			3
Total revenue		3,050			1,502			427		4,979			3,201			1,420			69			4,690			289			6
Noninterest expense		2,513			652			227		3,392			2,522			635			4,522			7,679			(4,287	)		(56	)
Profit (loss) before provision for credit losses		537			850			200		1,587			679			785			(4,453	)		(2,989	)		4,576			153
Provision for credit losses		259			(6	)		66		319			308			(7	)		178			479			(160	)		(33	)
Income (loss) before income tax expense (benefit)		278			856			134		1,268			371			792			(4,631	)		(3,468	)		4,736			137
Income tax expense (benefit)		96			295			12		403			129			278			(449	)		(42	)		445			1,060
Net income (loss)	$	182		$	561		$	122	$	865		$	242		$	514		($	4,182	)	($	3,426	)	$	4,291			NM
Average Balances
Total assets	$	48,939		$	38,483		$	40,202	$	127,624		$	46,465		$	35,229		$	39,172		$	120,866		$	6,758			6	%
Total loans and leases2		47,745			37,683			4,316		89,744			45,106			34,647			6,044			85,797			3,947			5
Deposits3		68,214			19,838			4,513		92,565			72,158			17,516			3,662			93,336			(771	)		(1	)
Interest-earning assets		47,777			37,809			30,601		116,187			45,135			34,771			27,243			107,149			9,038			8
Key Metrics
Net interest margin		4.50	%		2.84	%		NM		2.83	%		4.82	%		2.97	%		NM			2.85	%		(2) bps			—
Efficiency ratio4		82.39			43.37			NM		68.12			78.76			44.66			NM			163.73			(9,561) bps			—
Loans-to-deposits ratio (average balances)		69.99			189.96			NM		96.95			62.51			197.80			NM			91.92			503 bps			—
Return on average total tangible assets4		0.37			1.46			NM		0.71			0.52			1.46			NM			(3.05	)		376 bps			—
Return on average tangible common equity4		3.90			13.43			NM		6.71			5.48			13.20			NM			(25.91	)		3,262 bps			—

¹  Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

²  Includes loans and leases held for sale.

³  Includes deposits held for sale.

⁴  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

12

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FULL YEAR
CONSUMER BANKING																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Net interest income	$	536		$	532		$	546		$	537		$	543		$	4			1	%	($	7	)		(1	)%	$	2,151		$	2,176		($	25	)		(1	)%
Noninterest income		218			226			236			219			235			(8	)		(4	)		(17	)		(7	)		899			1,025			(126	)		(12	)
Total revenue		754			758			782			756			778			(4	)		(1	)		(24	)		(3	)		3,050			3,201			(151	)		(5	)
Noninterest expense		611			609			655			638			638			2			—			(27	)		(4	)		2,513			2,522			(9	)		—
Profit before provision for credit losses		143			149			127			118			140			(6	)		(4	)		3			2			537			679			(142	)		(21	)
Provision for credit losses		64			66			59			70			65			(2	)		(3	)		(1	)		(2	)		259			308			(49	)		(16	)
Income before income tax expense		79			83			68			48			75			(4	)		(5	)		4			5			278			371			(93	)		(25	)
Income tax expense		27			29			24			16			25			(2	)		(7	)		2			8			96			129			(33	)		(26	)
Net income	$	52		$	54		$	44		$	32		$	50		($	2	)		(4	)	$	2			4		$	182		$	242		($	60	)		(25	)
Average Balances
Total assets	$	50,546		$	49,012		$	48,556		$	47,610		$	46,225		$	1,534			3	%	$	4,321			9	%	$	48,939		$	46,465		$	2,474			5	%
Total loans and leases1		49,351			47,848			47,368			46,154			44,790			1,503			3			4,561			10			47,745			45,106			2,639			6
Deposits2		66,374			65,609			70,181			70,769			71,423			765			1			(5,049	)		(7	)		68,214			72,158			(3,944	)		(5	)
Interest-earning assets		49,382			47,885			47,397			46,185			44,823			1,497			3			4,559			10			47,777			45,135			2,642			6
Key Metrics
Net interest margin		4.31	%		4.40	%		4.62	%		4.72	%		4.81	%		(9) bps			—			(50) bps			—			4.50	%		4.82	%		(32) bps			—
Efficiency ratio4		81.09			80.42			83.61			84.39			81.84			67 bps			—			(75) bps			—			82.39			78.76			363 bps			—
Loans-to-deposits ratio (average balances)		74.35			72.93			67.49			65.22			62.71			142 bps			—			1,164 bps			—			69.99			62.51			748 bps			—
Return on average total tangible assets4		0.40			0.44			0.37			0.27			0.42			(4) bps			—			(2) bps			—			0.37			0.52			(15) bps			—
Return on average tangible common equity3,4		4.30			4.57			3.87			2.81			4.40			(27) bps			—			(10) bps			—			3.90			5.48			(158) bps			—

¹  Includes loans and leases held for sale.

²  Includes deposits held for sale.

³  Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁴  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

13

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)

	QUARTERLY TRENDS																										FULL YEAR
COMMERCIAL BANKING																4Q14 Change																	2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14					4Q13						2014			2013			2013
																$		%			$			%									$		%
Net interest income	$	283		$	270		$	264		$	256		$	260		$	13		5	%	$	23			9	%	$	1,073		$	1,031		$	42		4	%
Noninterest income		111			104			107			107			105			7		7			6			6			429			389			40		10
Total revenue		394			374			371			363			365			20		5			29			8			1,502			1,420			82		6
Noninterest expense		180			162			157			153			164			18		11			16			10			652			635			17		3
Profit before provision for credit losses		214			212			214			210			201			2		1			13			6			850			785			65		8
Provision for credit losses		1			—			(2	)		(5	)		14			1		—			(13	)		(93	)		(6	)		(7	)		1		14
Income before income tax expense		213			212			216			215			187			1		—			26			14			856			792			64		8
Income tax expense		73			73			75			74			64			—		—			9			14			295			278			17		6
Net income	$	140		$	139		$	141		$	141		$	123		$	1		1		$	17			14		$	561		$	514		$	47		9
Average Balances
Total assets	$	40,061		$	38,854		$	38,022		$	36,955		$	36,094		$	1,207		3	%	$	3,967			11	%	$	38,483		$	35,229		$	3,254		9	%
Total loans and leases		38,926			37,787			37,389			36,577			35,684			1,139		3			3,242			9			37,683			34,647			3,036		9
Deposits		22,500			20,985			18,358			17,440			17,623			1,515		7			4,877			28			19,838			17,516			2,322		13
Interest-earning assets		39,039			37,927			37,505			36,716			35,820			1,112		3			3,219			9			37,809			34,771			3,038		9
Key Metrics
Net interest margin		2.87	%		2.82	%		2.82	%		2.83	%		2.88	%		5 bps		—			(1) bps			—			2.84	%		2.97	%		(13) bps		—
Efficiency ratio2		45.48			43.35			42.36			42.13			44.73			213 bps		—			75 bps			—			43.37			44.66			(129) bps		—
Loans-to-deposits ratio (average balances)		173.01			180.06			203.67			209.74			202.49			(705) bps		—			(2,948) bps			—			189.96			197.80			(784) bps		—
Return on average total tangible assets2		1.38			1.42			1.50			1.54			1.33			(4) bps		—			5 bps			—			1.46			1.46			—   bps		—
Return on average tangible common equity1,2		12.76			13.10			13.78			14.17			12.10			(34) bps		—			66 bps			—			13.43			13.20			23 bps		—

¹  Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

²  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

14

FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)

	QUARTERLY TRENDS																											FULL YEAR
OTHER1																4Q14 Change																	2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014		2013			2013
																$			%			$			%								$			%
Net interest income (expense)	$	21		$	18		$	23		$	15		($	24	)	$	3			17	%	$	45			188	%	$	77	($	149	)	$	226			152	%
Noninterest income		10			11			297			32			39			(1	)		(9	)		(29	)		(74	)		350		218			132			61
Total revenue		31			29			320			47			15			2			7			16			107			427		69			358			519
Noninterest expense		33			39			136			19			16			(6	)		(15	)		17			106			227		4,522			(4,295	)		(95	)
Profit (loss) before provision for credit losses		(2	)		(10	)		184			28			(1	)		8			80			(1	)		(100	)		200		(4,453	)		4,653			104
Provision for credit losses		7			11			(8	)		56			53			(4	)		(36	)		(46	)		(87	)		66		178			(112	)		(63	)
Income (loss) before income tax expense (benefit)		(9	)		(21	)		192			(28	)		(54	)		12			57			45			83			134		(4,631	)		4,765			103
Income tax expense (benefit)		(14	)		(17	)		64			(21	)		(33	)		3			18			19			58			12		(449	)		461			103
Net income (loss)	$	5		($	4	)	$	128		($	7	)	($	21	)	$	9			225		$	26			124		$	122	($	4,182	)	$	4,304			NM
Average Balances
Total assets	$	40,064		$	40,825		$	40,570		$	39,339		$	38,074		($	761	)		(2	)%	$	1,990			5	%	$	40,202	$	39,172		$	1,030			3	%
Total loans and leases		4,001			4,218			4,434			4,620			5,578			(217	)		(5	)		(1,577	)		(28	)		4,316		6,044			(1,728	)		(29	)
Deposits		5,923			5,082			3,627			3,387			4,138			841			17			1,785			43			4,513		3,662			851			23
Interest-earning assets		30,309			31,384			31,090			29,604			28,329			(1,075	)		(3	)		1,980			7			30,601		27,243			3,358			12

¹  Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

15

FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FULL YEAR
CONSOLIDATED																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Net interest income	$	840		$	820		$	833		$	808		$	779		$	20			2	%	$	61			8	%	$	3,301		$	3,058		$	243			8	%
Noninterest income		339			341			640			358			379			(2	)		(1	)		(40	)		(11	)		1,678			1,632			46			3
Total revenue		1,179			1,161			1,473			1,166			1,158			18			2			21			2			4,979			4,690			289			6
Noninterest expense		824			810			948			810			818			14			2			6			1			3,392			7,679			(4,287	)		(56	)
Profit (loss) before provision for credit losses		355			351			525			356			340			4			1			15			4			1,587			(2,989	)		4,576			153
Provision for credit losses		72			77			49			121			132			(5	)		(6	)		(60	)		(45	)		319			479			(160	)		(33	)
Income (loss) before income tax expense (benefit)		283			274			476			235			208			9			3			75			36			1,268			(3,468	)		4,736			137
Income tax expense (benefit)		86			85			163			69			56			1			1			30			54			403			(42	)		445			1,060
Net income (loss)	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			NM
Average Balances
Total assets	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2	%	$	10,278			9	%	$	127,624		$	120,866		$	6,758			6	%
Total loans and leases1		92,278			89,853			89,191			87,351			86,052			2,425			3			6,226			7			89,744			85,797			3,947			5
Deposits2		94,797			91,676			92,166			91,596			93,184			3,121			3			1,613			2			92,565			93,336			(771	)		(1	)
Interest-earning assets		118,730			117,196			115,992			112,505			108,972			1,534			1			9,758			9			116,187			107,149			9,038			8
Key Metrics
Net interest margin		2.80	%		2.77	%		2.87	%		2.89	%		2.83	%		3 bps			—			(3) bps			—			2.83	%		2.85	%		(2) bps			—
Efficiency ratio3		69.88			69.84			64.33			69.43			70.62			4 bps			—			(74) bps			—			68.12			163.73			(9,561) bps			—
Loans-to-deposits ratio (average balances)		97.34			98.01			96.77			95.37			92.35			(67) bps			—			499 bps			—			96.95			91.92			503 bps			—
Return on average total tangible assets3		0.63			0.61			1.04			0.57			0.53			2 bps			—			10 bps			—			0.71			(3.05	)		376 bps			—
Return on average tangible common equity3		6.12			5.81			9.59			5.24			4.71			31 bps			—			141 bps			—			6.71			(25.91	)		3,262 bps			—

¹  Includes loans and leases held for sale.

²  Includes deposits held for sale.

³  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

16

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)

	QUARTERLY TRENDS																									FULL YEAR
														4Q14 Change																	2014 Change
	4Q14			3Q14			2Q14		1Q14		4Q13			3Q14						4Q13						2014		2013			2013
														$			%			$			%								$			%
Net interest income:
Consumer Banking	$	536		$	532		$	546	$	537	$	543		$	4			1	%	($	7	)		(1	%)	$	2,151	$	2,176		($	25	)		(1	)%
Commercial Banking		283			270			264		256		260			13			5			23			9			1,073		1,031			42			4
Other		21			18			23		15		(24	)		3			17			45			188			77		(149	)		226			152
Net interest income	$	840		$	820		$	833	$	808	$	779		$	20			2		$	61			8		$	3,301	$	3,058		$	243			8
Noninterest income:
Consumer Banking	$	218		$	226		$	236	$	219	$	235		($	8	)		(4	)%	($	17	)		(7	)%	$	899	$	1,025		($	126	)		(12	)%
Commercial Banking		111			104			107		107		105			7			7			6			6			429		389			40			10
Other		10			11			297		32		39			(1	)		(9	)		(29	)		(74	)		350		218			132			61
Noninterest income	$	339		$	341		$	640	$	358	$	379		($	2	)		(1	)	($	40	)		(11	)	$	1,678	$	1,632		$	46			3
Total revenue:
Consumer Banking	$	754		$	758		$	782	$	756	$	778		($	4	)		(1	)%	($	24	)		(3	)%	$	3,050	$	3,201		($	151	)		(5	)%
Commercial Banking		394			374			371		363		365			20			5			29			8			1,502		1,420			82			6
Other		31			29			320		47		15			2			7			16			107			427		69			358			519
Total revenue	$	1,179		$	1,161		$	1,473	$	1,166	$	1,158		$	18			2		$	21			2		$	4,979	$	4,690		$	289			6
Noninterest expense:
Consumer Banking	$	611		$	609		$	655	$	638	$	638		$	2			—	%	($	27	)		(4	%)	$	2,513	$	2,522		($	9	)		—	%
Commercial Banking		180			162			157		153		164			18			11			16			10			652		635			17			3
Other		33			39			136		19		16			(6	)		(15	)		17			106			227		4,522			(4,295	)		(95	)
Noninterest expense	$	824		$	810		$	948	$	810	$	818		$	14			2		$	6			1		$	3,392	$	7,679		($	4,287	)		(56	)
Profit (loss) before provision for credit losses:
Consumer Banking	$	143		$	149		$	127	$	118	$	140		($	6	)		(4	)%	$	3			2	%	$	537	$	679		($	142	)		(21	)%
Commercial Banking		214			212			214		210		201			2			1			13			6			850		785			65			8
Other		(2	)		(10	)		184		28		(1	)		8			80			(1	)		(100	)		200		(4,453	)		4,653			104
Profit (loss) before provision for credit losses	$	355		$	351		$	525	$	356	$	340		$	4			1		$	15			4		$	1,587	($	2,989	)	$	4,576			153

17

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	64		$	66		$	59		$	70		$	65		($	2	)		(3	)%	($	1	)		(2	)%	$	259		$	308		($	49	)		(16	)%
Commercial Banking		1			—			(2	)		(5	)		14			1			—			(13	)		(93	)		(6	)		(7	)		1			14
Other		7			11			(8	)		56			53			(4	)		(36	)		(46	)		(87	)		66			178			(112	)		(63	)
Provision for credit losses	$	72		$	77		$	49		$	121		$	132		($	5	)		(6	)	($	60	)		(45	)	$	319		$	479		($	160	)		(33	)
Income (loss) before income tax expense (benefit):
Consumer Banking	$	79		$	83		$	68		$	48		$	75		($	4	)		(5	%)	$	4			5	%	$	278		$	371		($	93	)		(25	)%
Commercial Banking		213			212			216			215			187			1			—			26			14			856			792			64			8
Other		(9	)		(21	)		192			(28	)		(54	)		12			57			45			83			134			(4,631	)		4,765			103
Income (loss) before income tax expense (benefit)	$	283		$	274		$	476		$	235		$	208		$	9			3		$	75			36		$	1,268		($	3,468	)	$	4,736			137
Income tax expense (benefit):
Consumer Banking	$	27		$	29		$	24		$	16		$	25		($	2	)		(7	%)	$	2			8	%	$	96		$	129		($	33	)		(26	)%
Commercial Banking		73			73			75			74			64			—			—			9			14			295			278			17			6
Other		(14	)		(17	)		64			(21	)		(33	)		3			18			19			58			12			(449	)		461			103
Income tax expense (benefit)	$	86		$	85		$	163		$	69		$	56		$	1			1		$	30			54		$	403		($	42	)	$	445			1,060
Net income (loss):
Consumer Banking	$	52		$	54		$	44		$	32		$	50		($	2	)		(4	%)	$	2			4	%	$	182		$	242		($	60	)		(25	)%
Commercial Banking		140			139			141			141			123			1			1			17			14			561			514			47			9
Other		5			(4	)		128			(7	)		(21	)		9			225			26			124			122			(4,182	)		4,304			NM
Net income (loss)	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			NM

18

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																						FULL YEAR
AVERAGE BALANCES											4Q14 Change																2014 Change
	4Q14		3Q14		2Q14		1Q14		4Q13		3Q14						4Q13						2014		2013		2013
											$			%			$			%							$			%
Total assets:
Consumer Banking	$	50,546	$	49,012	$	48,556	$	47,610	$	46,225	$	1,534			3	%	$	4,321			9	%	$	48,939	$	46,465	$	2,474			5	%
Commercial Banking		40,061		38,854		38,022		36,955		36,094		1,207			3			3,967			11			38,483		35,229		3,254			9
Other		40,064		40,825		40,570		39,339		38,074		(761	)		(2	)		1,990			5			40,202		39,172		1,030			3
Total assets	$	130,671	$	128,691	$	127,148	$	123,904	$	120,393	$	1,980			2		$	10,278			9		$	127,624	$	120,866	$	6,758			6
Loans and leases1:
Consumer Banking	$	49,351	$	47,848	$	47,368	$	46,154	$	44,790	$	1,503			3	%	$	4,561			10	%	$	47,745	$	45,106	$	2,639			6	%
Commercial Banking		38,926		37,787		37,389		36,577		35,684		1,139			3			3,242			9			37,683		34,647		3,036			9
Other		4,001		4,218		4,434		4,620		5,578		(217	)		(5	)		(1,577	)		(28	)		4,316		6,044		(1,728	)		(29	)
Total loans and leases	$	92,278	$	89,853	$	89,191	$	87,351	$	86,052	$	2,425			3		$	6,226			7		$	89,744	$	85,797	$	3,947			5
Deposits2:
Consumer Banking	$	66,374	$	65,609	$	70,181	$	70,769	$	71,423	$	765			1	%	($	5,049	)		(7	)%	$	68,214	$	72,158	($	3,944	)		(5	)%
Commercial Banking		22,500		20,985		18,358		17,440		17,623		1,515			7			4,877			28			19,838		17,516		2,322			13
Other		5,923		5,082		3,627		3,387		4,138		841			17			1,785			43			4,513		3,662		851			23
Total deposits	$	94,797	$	91,676	$	92,166	$	91,596	$	93,184	$	3,121			3		$	1,613			2		$	92,565	$	93,336	($	771	)		(1	)
Interest-earning assets:
Consumer Banking	$	49,382	$	47,885	$	47,397	$	46,185	$	44,823	$	1,497			3	%	$	4,559			10	%	$	47,777	$	45,135	$	2,642			6	%
Commercial Banking		39,039		37,927		37,505		36,716		35,820		1,112			3			3,219			9			37,809		34,771		3,038			9
Other		30,309		31,384		31,090		29,604		28,329		(1,075	)		(3	)		1,980			7			30,601		27,243		3,358			12
Total interest-earning assets	$	118,730	$	117,196	$	115,992	$	112,505	$	108,972	$	1,534			1		$	9,758			9		$	116,187	$	107,149	$	9,038			8

¹  Includes loans and leases held for sale.

²  Includes deposits held for sale.

19

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

	QUARTERLY TRENDS																							FULL YEAR
KEY METRICS																4Q14 Change														2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14				4Q13				2014			2013			2013
																bps				bps										bps
Net Interest Margin (NIM)
Consumer Banking		4.31	%		4.40	%		4.62	%		4.72	%		4.81	%		(9	)	—		(50	)	—		4.50	%		4.82	%		(32	)	—
Commercial Banking		2.87			2.82			2.82			2.83			2.88			5		—		(1	)	—		2.84			2.97			(13	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
NIM		2.80			2.77			2.87			2.89			2.83			3		—		(3	)	—		2.83			2.85			(2	)	—
Efficiency Ratio3
Consumer Banking		81.09	%		80.42	%		83.61	%		84.39	%		81.84	%		67		—		(75	)	—		82.39	%		78.76	%		363		—
Commercial Banking		45.48			43.35			42.36			42.13			44.73			213		—		75		—		43.37			44.66			(129	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
Efficiency Ratio		69.88			69.84			64.33			69.43			70.62			4		—		(74	)	—		68.12			163.73			(9,561	)	—
Loans to Deposits Ratio (average balances) (LDR)1
Consumer Banking		74.35	%		72.93	%		67.49	%		65.22	%		62.71	%		142		—		1,164		—		69.99	%		62.51	%		748		—
Commercial Banking		173.01			180.06			203.67			209.74			202.49			(705	)	—		(2,948	)	—		189.96			197.80			(784	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
LDR		97.34			98.01			96.77			95.37			92.35			(67	)	—		499		—		96.95			91.92			503		—
Return on Average Total Tangible Assets (ROTA)3
Consumer Banking		0.40	%		0.44	%		0.37	%		0.27	%		0.42	%		(4	)	—		(2	)	—		0.37	%		0.52	%		(15	)	—
Commercial Banking		1.38			1.42			1.50			1.54			1.33			(4	)	—		5		—		1.46			1.46			—		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTA		0.63			0.61			1.04			0.57			0.53			2		—		10		—		0.71			(3.05	)		376		—
Return on Average Tangible Common Equity (ROTCE)2,3
Consumer Banking		4.30	%		4.57	%		3.87	%		2.81	%		4.40	%		(27	)	—		(10	)	—		3.90	%		5.48	%		(158	)	—
Commercial Banking		12.76			13.10			13.78			14.17			12.10			(34	)	—		66		—		13.43			13.20			23		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTCE		6.12			5.81			9.59			5.24			4.71			31		—		141		—		6.71			(25.91	)		3,262		—

¹  Includes loans and leases and deposits held for sale.

²  Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

³  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

20

CREDIT-RELATED INFORMATION

(dollars in millions)

	AS OF										DECEMBER 31, 2014 CHANGE
	Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2014						Dec 31, 2013
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	31,431	$	30,356	$	30,076	$	29,435	$	28,667	$	1,075			4	%	$	2,764			10	%
Commercial real estate		7,809		7,239		7,158		6,902		6,948		570			8			861			12
Leases		3,986		3,875		3,740		3,738		3,780		111			3			206			5
Total commercial		43,226		41,470		40,974		40,075		39,395		1,756			4			3,831			10
Residential mortgages		11,832		11,265		10,640		10,099		9,726		567			5			2,106			22
Home equity loans		3,424		3,635		3,858		4,139		4,301		(211	)		(6	)		(877	)		(20	)
Home equity lines of credit		15,423		15,558		15,618		15,523		15,667		(135	)		(1	)		(244	)		(2	)
Home equity loans serviced by others1		1,228		1,290		1,358		1,427		1,492		(62	)		(5	)		(264	)		(18	)
Home equity lines of credit serviced by others1		550		580		614		648		679		(30	)		(5	)		(129	)		(19	)
Automobile		12,706		12,080		10,974		9,981		9,397		626			5			3,309			35
Student		2,256		2,069		1,941		2,305		2,208		187			9			48			2
Credit card		1,693		1,676		1,646		1,651		1,691		17			1			2			—
Other retail		1,072		1,126		1,206		1,235		1,303		(54	)		(5	)		(231	)		(18	)
Total retail		50,184		49,279		47,855		47,008		46,464		905			2			3,720			8
Total loans and leases		93,410		90,749		88,829		87,083		85,859		2,661			3			7,551			9
Derivative receivable - commercial		622		542		627		621		647		80			15			(25	)		(4	)
Derivative receivable - retail		7		5		8		5		3		2			40			4			133
Total derivative receivable		629		547		635		626		650		82			15			(21	)		(3	)
Total credit-related assets		94,039		91,296		89,464		87,709		86,509		2,743			3			7,530			9
Undrawn commitments to extend credit - commercial		29,646		29,182		28,236		27,522		27,617		464			2			2,029			7
Financial standby letters of credit		2,315		2,498		2,622		2,646		2,556		(183	)		(7	)		(241	)		(9	)
Performance letters of credit		65		94		118		135		149		(29	)		(31	)		(84	)		(56	)
Commercial letters of credit		75		74		56		61		64		1			1			11			17
Marketing rights		51		51		51		51		54		—			—			(3	)		(6	)
Risk participation agreements		19		16		20		16		17		3			19			2			12
Total commercial lending-related arrangements		32,171		31,915		31,103		30,431		30,457		256			1			1,714			6
Undrawn commitments to extend credit - retail		26,253		26,151		26,117		26,536		26,370		102			—			(117	)		—
Residential mortgage loans sold with recourse		11		11		12		13		13		—			—			(2	)		(15	)
Total retail lending-related arrangements		26,264		26,162		26,129		26,549		26,383		102			—			(119	)		—
Total lending-related arrangements		58,435		58,077		57,232		56,980		56,840		358			1			1,595			3
Total credit exposure	$	152,474	$	149,373	$	146,696	$	144,689	$	143,349	$	3,101			2		$	9,125			6
Memo: Total credit exposure by product category
Commercial exposure	$	76,019	$	73,927	$	72,704	$	71,127	$	70,499	$	2,092			3	%	$	5,520			8	%
Retail exposure		76,455		75,446		73,992		73,562		72,850		1,009			1			3,605			5
Total credit exposure	$	152,474	$	149,373	$	146,696	$	144,689	$	143,349	$	3,101			2		$	9,125			6

¹  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

21

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except ratios)

	AS OF															DECEMBER 31, 2014 CHANGE
	Dec 31, 2014			Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2014						Dec 31, 2013
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	81		$	93		$	63		$	73		$	96		($	12	)		(13	)%	($	15	)		(16	)%
Commercial real estate		83			83			130			155			169			—			—			(86	)		(51	)
Leases		—			—			2			2			—			—			—			—			—
Total commercial		164			176			195			230			265			(12	)		(7	)		(101	)		(38	)
Residential mortgages		345			351			346			360			382			(6	)		(2	)		(37	)		(10	)
Home equity loans		203			201			231			267			266			2			1			(63	)		(24	)
Home equity lines of credit		257			218			299			346			333			39			18			(76	)		(23	)
Home equity loans serviced by others2		47			52			51			56			59			(5	)		(10	)		(12	)		(20	)
Home equity lines of credit serviced by others2		25			29			29			31			30			(4	)		(14	)		(5	)		(17	)
Automobile		21			17			12			15			16			4			24			5			31
Student		17			14			12			30			34			3			21			(17	)		(50	)
Credit card		17			16			19			20			21			1			6			(4	)		(19	)
Other retail		5			5			6			8			10			—			—			(5	)		(50	)
Total retail		937			903			1,005			1,133			1,151			34			4			(214	)		(19	)
Nonperforming loans and leases1		1,101			1,079			1,200			1,363			1,416			22			2			(315	)		(22	)
Commercial		3			3			4			4			10			—			—			(7	)		(70	)
Retail		39			39			37			41			40			—			—			(1	)		(3	)
Other real estate owned		42			42			41			45			50			—			—			(8	)		(16	)
Nonperforming assets	$	1,143		$	1,121		$	1,241		$	1,408		$	1,466		$	22			2		($	323	)		(22	)
NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	167		$	179		$	199		$	234		$	275		($	12	)		(7	)%	($	108	)		(39	)%
Retail		976			942			1,042			1,174			1,191			34			4			(215	)		(18	)
Nonperforming assets	$	1,143		$	1,121		$	1,241		$	1,408		$	1,466		$	22			2		($	323	)		(22	)
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.28	%		1.32	%		1.36	%		1.45	%		1.42	%		(4) bps			—			(14) bps			—
Allowance for loan and lease losses to nonperforming loans and leases		108.51			111.30			100.84			92.34			86.17			(279) bps			—			2,234 bps			—
Nonperforming loans and leases to loans and leases		1.18			1.19			1.35			1.57			1.65			(1) bps			—			(47) bps			—
Nonperforming assets to total assets		0.86			0.85			0.95			1.11			1.20			1 bps			—			(34) bps			—
1   MEMO:
Accruing loans past due 90 days or more included above	$	9		$	8		$	12		$	42		$	33		$	1			13	%	($	24	)		(73	)%

²  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

22

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																											FULL YEAR
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
GROSS CHARGE-OFFS:
Commercial	($	9	)	($	11	)	($	6	)	($	5	)	($	29	)	$	2			18	%	$	20			69	%	($	31	)	($	72	)	$	41			57	%
Commercial real estate		(4	)		(5	)		(2	)		(1	)		(7	)		1			20			3			43			(12	)		(36	)		24			67
Leases		—			—			—			—			—			—			—			—			—			—			—			—			—
Total commercial		(13	)		(16	)		(8	)		(6	)		(36	)		3			19			23			64			(43	)		(108	)		65			60
Residential mortgages		(6	)		(10	)		(9	)		(11	)		(10	)		4			40			4			40			(36	)		(54	)		18			33
Home equity loans		(11	)		(16	)		(11	)		(17	)		(14	)		5			31			3			21			(55	)		(77	)		22			29
Home equity lines of credit		(16	)		(19	)		(21	)		(24	)		(23	)		3			16			7			30			(80	)		(102	)		22			22
Home equity loans serviced by others1		(11	)		(14	)		(13	)		(17	)		(21	)		3			21			10			48			(55	)		(119	)		64			54
Home equity lines of credit serviced by others1		(2	)		(3	)		(3	)		(4	)		(5	)		1			33			3			60			(12	)		(27	)		15			56
Automobile		(16	)		(9	)		(11	)		(5	)		(2	)		(7	)		(78	)		(14	)		(700	)		(41	)		(19	)		(22	)		(116	)
Student		(16	)		(12	)		(14	)		(12	)		(17	)		(4	)		(33	)		1			6			(54	)		(74	)		20			27
Credit card		(15	)		(15	)		(17	)		(17	)		(18	)		—			—			3			17			(64	)		(68	)		4			6
Other retail		(13	)		(15	)		(10	)		(15	)		(15	)		2			13			2			13			(53	)		(55	)		2			4
Total retail		(106	)		(113	)		(109	)		(122	)		(125	)		7			6			19			15			(450	)		(595	)		145			24
Total gross charge-offs	($	119	)	($	129	)	($	117	)	($	128	)	($	161	)	$	10			8		$	42			26		($	493	)	($	703	)	$	210			30
GROSS RECOVERIES:
Commercial	$	4		$	7		$	18		$	6		$	10		($	3	)		(43	)%	($	6	)		(60	)%	$	35		$	46		($	11	)		(24	)%
Commercial real estate		7			5			3			8			8			2			40			(1	)		(13	)		23			40			(17	)		(43	)
Leases		—			—			—			—			—			—			—			—			—			—			1			(1	)		(100	)
Total commercial		11			12			21			14			18			(1	)		(8	)		(7	)		(39	)		58			87			(29	)		(33	)
Residential mortgages		2			2			3			4			1			—			—			1			100			11			10			1			10
Home equity loans		5			9			4			6			6			(4	)		(44	)		(1	)		(17	)		24			26			(2	)		(8	)
Home equity lines of credit		3			5			3			4			9			(2	)		(40	)		(6	)		(67	)		15			19			(4	)		(21	)
Home equity loans serviced by others1		6			6			4			5			6			—			—			—			—			21			23			(2	)		(9	)
Home equity lines of credit serviced by others1		1			2			1			1			1			(1	)		(50	)		—			—			5			5			—			—
Automobile		6			4			8			2			—			2			50			6			—			20			12			8			67
Student		3			1			2			3			3			2			200			—			—			9			13			(4	)		(31	)
Credit card		2			—			3			2			2			2			—			—			—			7			7			—			—
Other retail		—			—			—			—			—			—			—			—			—			—			—			—			—
Total retail		28			29			28			27			28			(1	)		(3	)		—			—			112			115			(3	)		(3	)
Total gross recoveries	$	39		$	41		$	49		$	41		$	46		($	2	)		(5	)	($	7	)		(15	)	$	170		$	202		($	32	)		(16	)
NET (CHARGE-OFFS) RECOVERIES:
Commercial	($	5	)	($	4	)	$	12		$	1		($	19	)	($	1	)		(25	)%	$	14			74	%	$	4		($	26	)	$	30			115	%
Commercial real estate		3			—			1			7			1			3			—			2			200			11			4			7			175
Leases		—			—			—			—			—			—			—			—			—			—			1			(1	)		(100	)
Total commercial		(2	)		(4	)		13			8			(18	)		2			50			16			89			15			(21	)		36			171
Residential mortgages		(4	)		(8	)		(6	)		(7	)		(9	)		4			50			5			56			(25	)		(44	)		19			43
Home equity loans		(6	)		(7	)		(7	)		(11	)		(8	)		1			14			2			25			(31	)		(51	)		20			39
Home equity lines of credit		(13	)		(14	)		(18	)		(20	)		(14	)		1			7			1			7			(65	)		(83	)		18			22
Home equity loans serviced by others1		(5	)		(8	)		(9	)		(12	)		(15	)		3			38			10			67			(34	)		(96	)		62			65
Home equity lines of credit serviced by others1		(1	)		(1	)		(2	)		(3	)		(4	)		—			—			3			75			(7	)		(22	)		15			68
Automobile		(10	)		(5	)		(3	)		(3	)		(2	)		(5	)		(100	)		(8	)		(400	)		(21	)		(7	)		(14	)		(200	)
Student		(13	)		(11	)		(12	)		(9	)		(14	)		(2	)		(18	)		1			7			(45	)		(61	)		16			26
Credit card		(13	)		(15	)		(14	)		(15	)		(16	)		2			13			3			19			(57	)		(61	)		4			7
Other retail		(13	)		(15	)		(10	)		(15	)		(15	)		2			13			2			13			(53	)		(55	)		2			4
Total retail		(78	)		(84	)		(81	)		(95	)		(97	)		6			7			19			20			(338	)		(480	)		142			30
Total net (charge-offs) recoveries	($	80	)	($	88	)	($	68	)	($	87	)	($	115	)	$	8			9		$	35			30		($	323	)	($	501	)	$	178			36

¹  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

23

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except rates)

	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
ANNUALIZED NET (CHARGE-OFF) RECOVERY RATES:
Commercial		(0.06	)%		(0.04	)%		0.15	%		0.02	%		(0.25	)%		2 bps			—			(19) bps			—			0.01	%		(0.09	)%		(10) bps			—
Commercial real estate		0.15			(0.06	)		0.06			0.43			0.02			(21) bps			—			(13) bps			—			0.14			0.06			(8) bps			—
Leases		—			—			0.03			—			0.01			—  bps			—			1 bps			—			0.01			0.04			3 bps			—
Total commercial		(0.02	)		(0.04	)		0.12			0.09			(0.18	)		(2) bps			—			(16) bps			—			0.04			(0.06	)		(10) bps			—
Residential mortgages		(0.14	)		(0.27	)		(0.21	)		(0.32	)		(0.33	)		(13) bps			—			(19) bps			—			(0.23	)		(0.48	)		(25) bps			—
Home equity loans		(0.45	)		(0.79	)		(0.76	)		(1.04	)		(0.70	)		(34) bps			—			(25) bps			—			(0.77	)		(1.09	)		(32) bps			—
Home equity lines of credit		(0.34	)		(0.36	)		(0.45	)		(0.53	)		(0.38	)		(2) bps			—			(4) bps			—			(0.42	)		(0.52	)		(10) bps			—
Home equity loans serviced by others1		(1.67	)		(2.43	)		(2.51	)		(3.32	)		(4.02	)		(76) bps			—			(235) bps			—			(2.51	)		(5.59	)		(308) bps			—
Home equity lines of credit serviced by others1		(0.81	)		(1.18	)		(1.21	)		(1.60	)		(1.93	)		(37) bps			—			(112) bps			—			(1.22	)		(2.74	)		(152) bps			—
Automobile		(0.34	)		(0.21	)		(0.09	)		(0.12	)		(0.08	)		13 bps			—			26 bps			—			(0.20	)		(0.06	)		14 bps			—
Student		(2.36	)		(1.70	)		(2.14	)		(1.68	)		(2.54	)		66 bps			—			(18) bps			—			(1.98	)		(2.75	)		(77) bps			—
Credit card		(3.28	)		(3.33	)		(3.62	)		(3.72	)		(3.88	)		(5) bps			—			(60) bps			—			(3.49	)		(3.67	)		(18) bps			—
Other retail		(4.82	)		(5.24	)		(3.53	)		(4.90	)		(4.34	)		(42) bps			—			48 bps			—			(4.60	)		(3.90	)		70 bps			—
Total retail		(0.62	)		(0.68	)		(0.68	)		(0.84	)		(0.83	)		(6) bps			—			(21) bps			—			(0.70	)		(1.03	)		(33) bps			—
Total loans and leases		(0.35	)		(0.38	)		(0.31	)		(0.41	)		(0.53	)		(3) bps			—			(18) bps			—			(0.36	)		(0.59	)		(23) bps			—
Memo: Average loans:
Commercial		30,962		$	30,186		$	29,674		$	29,108		$	29,058		$	776			3	%	$	1,904			7	%		29,993		$	28,654		$	1,339			5	%
Commercial real estate		7,427			7,216			7,082			6,898			6,859			211			3			568			8			7,158			6,568			590			9
Leases		3,874			3,789			3,716			3,723			3,619			85			2			255			7			3,776			3,463			313			9
Total commercial		42,263			41,191			40,472			39,729			39,536			1,072			3			2,727			7			40,927			38,685			2,242			6
Residential mortgages		11,647			11,001			10,355			9,889			9,342			646			6			2,305			25			10,729			9,104			1,625			18
Home equity loans		3,527			3,743			4,015			4,231			4,364			(216	)		(6	)		(837	)		(19	)		3,877			4,606			(729	)		(16	)
Home equity lines of credit		15,490			15,572			15,563			15,590			16,109			(82	)		(1	)		(619	)		(4	)		15,552			16,337			(785	)		(5	)
Home equity loans serviced by others1		1,252			1,317			1,388			1,454			1,519			(65	)		(5	)		(267	)		(18	)		1,352			1,724			(372	)		(22	)
Home equity lines of credit serviced by others1		561			591			627			660			692			(30	)		(5	)		(131	)		(19	)		609			768			(159	)		(21	)
Automobile		12,403			11,438			10,528			9,408			9,007			965			8			3,396			38			11,011			8,857			2,154			24
Student		2,142			1,983			2,209			2,262			2,204			159			8			(62	)		(3	)		2,148			2,202			(54	)		(2	)
Credit card		1,663			1,661			1,647			1,639			1,702			2			—			(39	)		(2	)		1,651			1,669			(18	)		(1	)
Other retail		1,097			1,153			1,215			1,270			1,341			(56	)		(5	)		(244	)		(18	)		1,186			1,453			(267	)		(18	)
Total retail		49,782			48,459			47,547			46,403			46,280			1,323			3			3,502			8			48,115			46,720			1,395			3
Total loans and leases	$	92,045		$	89,650		$	88,019		$	86,132		$	85,816		$	2,395			3		$	6,229			7		$	89,042		$	85,405		$	3,637			4

¹  Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

24

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Allowance for loan and lease losses - beginning	$	1,201		$	1,210		$	1,259		$	1,221		$	1,219		($	9	)		(1	)%	($	18	)		(1	%)	$	1,221		$	1,255		($	34	)		(3	)%
Charge-offs:
Commercial		(13	)		(16	)		(8	)		(6	)		(36	)		3			19			23			64			(43	)		(108	)		65			60
Retail		(106	)		(113	)		(109	)		(122	)		(125	)		7			6			19			15			(450	)		(595	)		145			24
Total charge-offs		(119	)		(129	)		(117	)		(128	)		(161	)		10			8			42			26			(493	)		(703	)		210			30
Recoveries:
Commercial		11			12			21			14			18			(1	)		(8	)		(7	)		(39	)		58			87			(29	)		(33	)
Retail		28			29			28			27			28			(1	)		(3	)		—			—			112			115			(3	)		(3	)
Total recoveries		39			41			49			41			46			(2	)		(5	)		(7	)		(15	)		170			202			(32	)		(16	)
Net charge-offs		(80	)		(88	)		(68	)		(87	)		(115	)		8			9			35			30			(323	)		(501	)		178			36
Provision for loan and lease losses:
Commercial		4			38			(32	)		21			32			(34	)		(89	)		(28	)		(88	)		31			(19	)		50			263
Retail		70			41			51			104			67			29			71			3			4			266			396			(130	)		(33	)
Unallocated		—			—			—			—			31			—			—			(31	)		(100	)		—			103			(103	)		(100	)
Total provision for loan and lease losses		74			79			19			125			130			(5	)		(6	)		(56	)		(43	)		297			480			(183	)		(38	)
Sale/Other		—			—			—			—			(13	)		—			—			13			100			—			(13	)		13			100
Allowance for loan and lease losses - ending	$	1,195		$	1,201		$	1,210		$	1,259		$	1,221		($	6	)		—		($	26	)		(2	)	$	1,195		$	1,221		($	26	)		(2	)
Reserve for unfunded lending commitments - beginning	$	63		$	65		$	35		$	39		$	37		($	2	)		(3	)%	$	26			70	%	$	39		$	40		($	1	)		(3	)%
Provision for unfunded lending commitments		(2	)		(2	)		30			(4	)		2			—			—			(4	)		(200	)		22			(1	)		23			2,300
Reserve for unfunded lending commitments - ending		61			63			65			35			39			(2	)		(3	)		22			56			61			39			22			56
Total allowance for credit losses - ending	$	1,256		$	1,264		$	1,275		$	1,294		$	1,260		($	8	)		(1	)%	($	4	)		—	%	$	1,256		$	1,260		($	4	)		—	%

25

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)

	AS OF										DECEMBER 31, 2014 CHANGE
	Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2014						Dec 31, 2013
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	20	$	14	$	23	$	22	$	23	$	6			43	%	($	3	)		(13	)%
Formula-based evaluation		585		591		550		540		514		(6	)		(1	)		71			14
Total commercial		605		605		573		562		537		—			—			68			13
Individually evaluated		109		116		116		116		108		(7	)		(6	)		1			1
Formula-based evaluation		542		543		586		616		615		(1	)		—			(73	)		(12	)
Total retail		651		659		702		732		723		(8	)		(1	)		(72	)		(10	)
Total allowance for credit losses	$	1,256	$	1,264	$	1,275	$	1,294	$	1,260	($	8	)		(1	)	($	4	)		—

26

CAPITAL AND RATIOS

(dollars in millions, except ratios)

	AS OF															DECEMBER 31, 2014 CHANGE												FULL YEAR
																																		2014 Change
CAPITAL AND RATIOS	Dec 31, 2014			Sept 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2014						Dec 31, 2013						2014			2013			2013
																$			%			$			%									$			%
CAPITAL RATIOS AND COMPONENTS1 (preliminary)
Tier 1 capital	$	13,173		$	13,330		$	13,448		$	13,460		$	13,301		($	157	)		(1	%)	($	128	)		(1	)%
Total capital		16,781			16,612			16,400			16,066			15,885			169			1			896			6
Tier 1 common capital2		13,173			13,330			13,448			13,460			13,301			(157	)		(1	)		(128	)		(1	)
Risk-weighted assets		105,964			103,207			101,397			100,368			98,634			2,757			3			7,330			7
Adjusted average assets3		124,539			122,521			121,276			118,075			114,422			2,018			2			10,117			9
Tier 1 capital ratio		12.4	%		12.9	%		13.3	%		13.4	%		13.5	%
Total capital ratio		15.8			16.1			16.2			16.0			16.1
Leverage ratio		10.6			10.9			11.1			11.4			11.6
Tier 1 common equity ratio2		12.4			12.9			13.3			13.4			13.5
Proforma Basel III common equity Tier 1 capital ratio4		12.1			12.5			13.0			13.1			13.1
TANGIBLE COMMON EQUITY (period-end):
Stockholders’ equity	$	19,268		$	19,383		$	19,597		$	19,442		$	19,196		($	115	)		(1	%)	$	72			—	%	$	19,268		$	19,196		$	72			—	%
Less: Goodwill		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		—			—			—			—			(6,876	)		(6,876	)		—			—
Less: Other intangible assets		(6	)		(6	)		(7	)		(7	)		(8	)		—			—			2			25			(6	)		(8	)		2			25
Add: Deferred tax liabilities5		420			399			384			366			350			21			5			70			20			420			350			70			20
Total tangible common equity6	$	12,806		$	12,900		$	13,098		$	12,925		$	12,662		($	94	)		(1	)	$	144			1		$	12,806		$	12,662		$	144			1
TANGIBLE COMMON EQUITY (average):
Stockholders’ equity	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		($	202	)		(1	%)	($	155	)		(1	)%	$	19,399		$	21,834		($	2,435	)		(11	)%
Less: Goodwill		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		—			—			—			—			(6,876	)		(9,063	)		2,187			24
Less: Other intangible assets		(6	)		(6	)		(7	)		(7	)		(8	)		—			—			2			25			(7	)		(9	)		2			22
Add: Deferred tax liabilities5		403			384			369			351			342			19			5			61			18			377			459			(82	)		(18	)
Total tangible common equity4	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		($	183	)		(1	)	($	92	)		(1	)	$	12,893		$	13,221		($	328	)		(2	)
INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876		$	6,876		$	—			—	%
Trademark & patent		6			6			7			7			8			—			—			(2	)		(25	)		6			8			(2	)		(25	)
Total intangible assets	$	6,882		$	6,882		$	6,883		$	6,883		$	6,884		$	—			—		($	2	)		—		$	6,882		$	6,884		($	2	)		—

¹  Capital ratios and associated components are prepared on a Basel I basis, except as noted.

²  Tier 1 common equity ratio is calculated as Tier 1 common capital divided by risk-weighted assets. Tier 1 common capital represents Tier 1 capital, excluding qualifying restricted core capital elements.

³  Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangibles assets, net of deferred tax liabilities related to tax deductible goodwill, and the accumulated other comprehensive income impact related to the adoption of post-retirement benefit plan guidance under GAAP.

⁴  This is a non-GAAP financial measure. For further information on these measures, refer to pages 29-35.

⁵  Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

⁶ This is a non-GAAP financial measure.

27

PER-SHARE RELATED INFORMATION

(dollars in millions, except per share and ratio data)

	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
EARNINGS PER SHARE DATA																$			%			$			%									$			%
Basic earnings per share:
Net income (loss)	$	197		$	189		$	313		$	166		$	152		$	8			4	%	$	45			30	%	$	865		($	3,426	)	$	4,291			125	%
Less: Preferred stock dividends		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss) applicable to common stockholders	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			125
Net income applicable to common stockholders, excluding restructuring charges and special items1	$	217		$	202		$	205		$	166		$	169		$	15			7		$	48			28		$	790		$	671		$	119			18
Total weighted-average basic shares outstanding		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			(13,188,315	)		(2	)		(13,188,315	)		(2	)		556,674,146			559,998,324			(3,324,178	)		(1	)
Net income (loss) per share - basic	$	0.36		$	0.34		$	0.56		$	0.30		$	0.27		$	0.02			6		$	0.09			33		$	1.55		($	6.12	)	$	7.67			125
Net income per share, excluding restructuring charges and special items - basic1	$	0.40		$	0.36		$	0.37		$	0.30		$	0.30		$	0.04			11		$	0.10			33		$	1.42		$	1.20		$	0.22			18
Diluted earnings per share:
Net income (loss) applicable to common stockholders	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			125
Net income applicable to common stockholders, excluding restructuring charges and special items1	$	217		$	202		$	205		$	166		$	169		$	15			7		$	48			28		$	790		$	671		$	119			18
Total weighted-average basic shares outstanding		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			(13,188,315	)		(2	)		(13,188,315	)		(2	)		556,674,146			559,998,324			(3,324,178	)		(1	)
Add: Share-based awards		3,866,289			245,423			—			—			—			3,620,866			1,475			3,866,289			—			1,050,790			—			1,050,790			—
Total weighted-average diluted shares outstanding		550,676,298			560,243,747			559,998,324			559,998,324			559,998,324			(9,567,449	)		(2	)		(9,322,026	)		(2	)		557,724,936			559,998,324			(2,273,388	)		—
Net income (loss) per share - diluted	$	0.36		$	0.34		$	0.56		$	0.30		$	0.27		$	0.02			6		$	0.09			33		$	1.55		($	6.12	)	$	7.67			125
Net income per share, excluding restructuring charges and special items - diluted1	$	0.39		$	0.36		$	0.37		$	0.30		$	0.30		$	0.03			8		$	0.09			30		$	1.42		$	1.20		$	0.22			18
COMMON SHARES OUTSTANDING
Common shares - at end of period		545,884,519			559,998,324			559,998,324			559,998,324			559,998,324			(14,113,805	)		(3	)%		(14,113,805	)		(3	)%		545,884,519			559,998,324			(14,113,805	)		(3	)%
Cash dividends declared and paid per share	$	0.10		$	0.68		$	0.61		$	0.04		$	0.67		($	0.58	)		(85	)	($	0.57	)		(85	)	$	1.43		$	2.12		($	0.69	)		(33	)
Book value per share	$	35.30		$	34.61		$	35.00		$	34.72		$	34.28			0.69			2			1.02			3			35.30			34.28			1.02			3
Tangible book value per share	$	23.46		$	23.04		$	23.39		$	23.08		$	22.61			0.42			2			0.85			4			23.46			22.61			0.85			4
Dividend payout ratio		28	%		203	%		110	%		15	%		246	%		(17,500) bps			—			(21,800) bps			—			92	%		(35	)%		12,700 bps			—
SHARE PRICE
High	$	25.60		$	23.57		$	—		$	—		$	—		$	2.03			9	%	$	25.60			—	%	$	25.60		$	—		$	25.60			—	%
Low		21.47			21.35			—			—			—			0.12			1			21.47			—			21.35			—			21.35			—
Close		24.86			23.42			—			—			—			1.44			6			24.86			—			24.86			—			24.86			—
Market Capitalization		13,571			13,115			—			—			—			456			3			13,571			—			13,571			—			13,571			—

¹  These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

28

NON-GAAP MEASURES (Excluding restructuring charges and special items)

(dollars in millions, except per-share data)

This document contains non-GAAP financial measures. The table below presents reconciliations of certain non-GAAP measures. These reconciliations exclude goodwill impairment, restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Special items include regulatory expenses and expenses relating to our initial public offering.

The non-GAAP measures set forth below include “total revenue”, “noninterest income”, “ noninterest expense”, “pre-provision profit”, “income before income tax expense (benefit)”, “income tax expense (benefit)”, “net income (loss)”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income (loss) per average common share”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “pro forma Basel III common equity tier 1 capital”, “return on average tangible common equity”, “return on average total tangible assets” and “efficiency ratio” as part of our non-GAAP measures.

We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe goodwill impairment, restructuring charges and special items in any period do not reflect the operational performance of the business in that period and, accordingly, it is useful to consider these line items with and without goodwill impairment, restructuring charges and special items. We believe this presentation also increases comparability of period-to-period results.

We also consider pro forma capital ratios defined by banking regulators but not effective at each period end to be non-GAAP financial measures. Since analysts and banking regulators may assess our capital adequacy using these pro forma ratios, we believe they are useful to provide investors the ability to assess our capital adequacy on the same basis.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under GAAP.

		QUARTERLY TRENDS																											FULL YEAR
																	4Q14 Change																		2014 Change
		4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																	$			%			$			%									$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	339		$	341		$	640		$	358		$	379		($	2	)		(1	)%	($	40	)		(11	)%	$	1,678		$	1,632		$	46			3	%
Less: Special items - Chicago gain			—			—			288			—			—			—			—			—			—			288			—			288			—
Noninterest income, excluding special items (non-GAAP)	B	$	339		$	341		$	352		$	358		$	379		($	2	)		(1	)	($	40	)		(11	)	$	1,390		$	1,632		($	242	)		(15	)
Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,179		$	1,161		$	1,473		$	1,166		$	1,158		$	18			2	%	$	21			2	%	$	4,979		$	4,690		$	289			6	%
Less: Special items - Chicago gain			—			—			288			—			—			—			—			—			—			288			—			288			—
Total revenue, excluding special items (non-GAAP)	D	$	1,179		$	1,161		$	1,185		$	1,166		$	1,158		$	18			2		$	21			2		$	4,691		$	4,690		$	1			—
Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	824		$	810		$	948		$	810		$	818		$	14			2	%	$	6			1	%	$	3,392		$	7,679		($	4,287	)		(56	)%
Less: Restructuring charges and special expense items	JJ		33			21			115			—			26			12			57			7			27			169			4,461			(4,292	)		(96	)
Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	791		$	789		$	833		$	810		$	792		$	2			—		($	1	)		—		$	3,223		$	3,218		$	5			—
Net income (loss), excluding restructuring charges and special items:
Net income (loss) (GAAP)	G	$	197		$	189		$	313		$	166		$	152		$	8			4	%	$	45			30	%	$	865		($	3,426	)	$	4,291			NM
Add: Restructuring charges and special items, net of income tax expense (benefit)			20			13			(108	)		—			17			7			(54	)		3			18			(75	)		4,097			(4,172	)		(102	)
Net income (loss), excluding restructuring charges and special items (non-GAAP)	H	$	217		$	202		$	205		$	166		$	169		$	15			7		$	48			28		$	790		$	671		$	119			18
Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		($	202	)		(1	)%	($	155	)		(1	)%	$	19,399		$	21,834		($	2,435	)		(11	)%
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	H/I		4.48	%		4.14	%		4.19	%		3.48	%		3.47	%		34 bps			—			101 bps			—			4.07	%		3.08	%		99 bps			—

29

NON-GAAP MEASURES (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																											FULL YEAR
																	4Q14 Change																		2014 Change
		4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																	$			%			$			%									$			%
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		($	202	)		(1	)%	($	155	)		(1	)%	$	19,399		$	21,834		($	2,435	)		(11	)%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,063			(2,187	)		(24	)
Less: Average other intangibles (GAAP)			6			6			7			7			8			—			—			(2	)		(25	)		7			9			(2	)		(22	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			403			384			369			351			342			19			5			61			18			377			459			(82	)		(18	)
Average tangible common equity (non-GAAP)	J	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		($	183	)		(1	)	($	92	)		(1	)	$	12,893		$	13,221		($	328	)		(2	)
Return on average tangible common equity (non-GAAP)	G/J		6.12	%		5.81	%		9.59	%		5.24	%		4.71	%		31 bps			—			141 bps			—			6.71	%		(25.91	)%		3,262 bps			—
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	H/J		6.76	%		6.22	%		6.28	%		5.24	%		5.24	%		54 bps			—			152 bps			—			6.13	%		5.08	%		105 bps			—
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2	%	$	10,278			9	%	$	127,624		$	120,866		$	6,758			6	%
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/K		0.66	%		0.62	%		0.65	%		0.54	%		0.56	%		4 bps			—			10 bps			—			0.62	%		0.56	%		6 bps			—
Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2	%	$	10,278			9	%	$	127,624		$	120,866		$	6,758			6	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,063			(2,187	)		(24	)
Less: Average other intangibles (GAAP)			6			6			7			7			8			—			—			(2	)		(25	)		7			9			(2	)		(22	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			403			384			369			351			342			19			5			61			18			377			459			(82	)		(18	)
Average tangible assets (non-GAAP)	L	$	124,192		$	122,193		$	120,634		$	117,372		$	113,851		$	1,999			2		$	10,341			9		$	121,118		$	112,253		$	8,865			8
Return on average total tangible assets (non-GAAP)	G/L		0.63	%		0.61	%		1.04	%		0.57	%		0.53	%		2 bps			—			10 bps			—			0.71	%		(3.05	)%		376 bps			—
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/L		0.69	%		0.66	%		0.68	%		0.57	%		0.59	%		3 bps			—			10 bps			—			0.65	%		0.60	%		5 bps			—
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	840		$	820		$	833		$	808		$	779		$	20			2	%	$	61			8	%	$	3,301		$	3,058		$	243			8	%
Add: Noninterest income (GAAP)			339			341			640			358			379			(2	)		(1	)		(40	)		(11	)		1,678			1,632			46			3
Total revenue (GAAP)	C	$	1,179		$	1,161		$	1,473		$	1,166		$	1,158		$	18			2		$	21			2		$	4,979		$	4,690		$	289			6
Efficiency ratio (non-GAAP)	E/C		69.88	%		69.84	%		64.33	%		69.43	%		70.62	%		4 bps			—			(74) bps			—			68.12	%		163.73	%		(9,561) bps			—
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		67.11	%		68.02	%		70.23	%		69.43	%		68.35	%		(91) bps			—			(124) bps			—			68.70	%		68.61	%		9 bps			—

30

NON-GAAP MEASURES (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																											FULL YEAR
																	4Q14 Change																	2014 Change
		4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014		2013			2013
																	$			%			$			%								$			%
Net income (loss) per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	M		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			(13,188,315	)		(2	)%		(13,188,315	)		(2	)%		556,674,146		559,998,324			(3,324,178	)		(1	)%
Average common shares outstanding - diluted (GAAP)	N		550,676,298			560,243,747			559,998,324			559,998,324			559,998,324			(9,567,449	)		(2	)		(9,322,026	)		(2	)		557,724,936		559,998,324			(2,273,388	)		—
Net income (loss) applicable to common stockholders (GAAP)	O	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865	($	3,426	)	$	4,291			125
Net income (loss) per average common share - basic (GAAP)	O/M		0.36			0.34			0.56			0.30			0.27			0.02			6			0.09			33			1.55		(6.12	)		7.67			125
Net income (loss) per average common share - diluted (GAAP)	O/N		0.36			0.34			0.56			0.30			0.27			0.02			6			0.09			33			1.55		(6.12	)		7.67			125
Net income (loss) applicable to common stockholders, excluding restructuring charges and special items (non-GAAP)	P		217			202			205			166			169			15			7			48			28			790		671			119			18
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	P/M		0.40			0.36			0.37			0.30			0.30			0.04			11			0.10			33			1.42		1.20			0.22			18
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	P/N		0.39			0.36			0.37			0.30			0.30			0.03			8			0.09			30			1.42		1.20			0.22			18
Pro forma Basel III common equity Tier 1 capital ratio:
Tier 1 common capital (regulatory)		$	13,173		$	13,330		$	13,448		$	13,460		$	13,301		($	157	)		(1	)%	($	128	)		(1	)%
Less: Change in DTA and other threshold deductions (GAAP)			(6	)		(5	)		(7	)		(7	)		6			(1	)		(20	)		(12	)		(200	)
Basel III common equity Tier 1 (non-GAAP)	Q	$	13,179		$	13,335		$	13,455		$	13,467		$	13,295		($	156	)		(1	)	($	116	)		(1	)
Risk-weighted assets (regulatory general risk weight approach)			105,964			103,207			101,397			100,368			98,634			2,757			3			7,330			7
Add: Net change in credit and other risk-weighted assets (regulatory)			2,882			3,207			2,383			2,450			2,687			(325	)		(10	)		195			7
Basel III standardized approach risk-weighted assets (non-GAAP)	R	$	108,846		$	106,414		$	103,780		$	102,818		$	101,321		$	2,432			2		$	7,525			7
Pro forma Basel III common equity Tier 1 capital ratio (non-GAAP)	Q/R		12.1	%		12.5	%		13.0	%		13.1	%		13.1	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	S	$	397		$	409		$	467		$	405		$	391		($	12	)		(3	)%	$	6			2	%	$	1,678	$	1,652		$	26			2	%
Less: Restructuring charges and special items			1			—			43			—			5			1			—			(4	)		(80	)		44		5			39			780
Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	T	$	396		$	409		$	424		$	405		$	386		($	13	)		(3	)	$	10			3		$	1,634	$	1,647		($	13	)		(1	)
Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	U	$	106		$	106		$	125		$	83		$	101		$	—			—	%	$	5			5	%	$	420	$	360		$	60			17	%
Less: Restructuring charges and special items			18			19			41			—			—			(1	)		(5	)		18			—			78		—			78			—
Outside services, excluding restructuring charges and special items (non-GAAP)	V	$	88		$	87		$	84		$	83		$	101		$	1			1		($	13	)		(13	)	$	342	$	360		($	18	)		(5	)
Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	W	$	81		$	77		$	87		$	81		$	83		$	4			5	%	($	2	)		(2	)%	$	326	$	327		($	1	)		—	%
Less: Restructuring charges and special items			5			2			9			—			11			3			150			(6	)		(55	)		16		11			5			45
Occupancy, excluding restructuring charges and special items (non-GAAP)	X	$	76		$	75		$	78		$	81		$	72		$	1			1		$	4			6		$	310	$	316		($	6	)		(2	)

31

NON-GAAP MEASURES (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																									FULL YEAR
															4Q14 Change																	2014 Change
		4Q14			3Q14			2Q14		1Q14		4Q13			3Q14						4Q13						2014		2013			2013
															$			%			$			%								$			%
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	Y	$	63		$	58		$	65	$	64	$	68		$	5			9	%	($	5	)		(7	)%	$	250	$	275		($	25	)		(9	)%
Less: Restructuring charges and special items			1			—			3		—		7			1			—			(6	)		(86	)		4		7			(3	)		(43	)
Equipment expense, excluding restructuring charges and special items (non-GAAP)	Z	$	62		$	58		$	62	$	64	$	61		$	4			7		$	1			2		$	246	$	268		($	22	)		(8	)
Amortization of software, excluding restructuring charges and special items:
Amortization of software	AA	$	43		$	38		$	33	$	31	$	32		$	5			13	%	$	11			34	%	$	145	$	102		$	43			42	%
Less: Restructuring charges and special items			6			—			—		—		—			6			—			6			—			6		—			6			—
Amortization of software, excluding restructuring charges and special items (non-GAAP)	BB	$	37		$	38		$	33	$	31	$	32		($	1	)		(3	)	$	5			16		$	139	$	102		$	37			36
Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	CC	$	134		$	122		$	171	$	146	$	143		$	12			10	%	($	9	)		(6	)%	$	573	$	528		$	45			9	%
Less: Restructuring charges and special items			2			—			19		—		3			2			—			(1	)		(33	)		21		3			18			600
Other operating expense, excluding restructuring charges and special items (non-GAAP)	DD	$	132		$	122		$	152	$	146	$	140		$	10			8		($	8	)		(6	)	$	552	$	525		$	27			5
Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,179		$	1,161		$	1,185	$	1,166	$	1,158		$	18			2	%	$	21			2	%	$	4,691	$	4,690		$	1			—	%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		791			789			833		810		792			2			—			(1	)		—			3,223		3,218			5			—
Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	EE	$	388		$	372		$	352	$	356	$	366		$	16			4		$	22			6		$	1,468	$	1,472		($	4	)		—
Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (benefit) (GAAP)	FF	$	283		$	274		$	476	$	235	$	208		$	9			3	%	$	75			36	%	$	1,268	($	3,468	)	$	4,736			NM
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			(33	)		(21	)		173		—		(26	)		(12	)		57			(7	)		27			119		(4,461	)		4,580			103
Income before income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	GG	$	316		$	295		$	303	$	235	$	234		$	21			7		$	82			35		$	1,149	$	993		$	156			(16	)
Income tax expense (benefit), excluding restructuring charges and special items:
Income tax expense (benefit) (GAAP)	HH	$	86		$	85		$	163	$	69	$	56		$	1			1	%	$	30			54	%	$	403	($	42	)	$	445			NM
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			(13	)		(8	)		65		—		(9	)		(5	)		63			(4	)		44			44		(364	)		408			112
Income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	II	$	99		$	93		$	98	$	69	$	65		$	6			6		$	34			52		$	359	$	322		$	37			11
Restructuring charges and special expense items include:
Goodwill impairment		$	—		$	—		$	—	$	—	$	—		$	—			—	%	$	—			—	%	$	—	$	4,435		($	4,435	)		(100	)%
Restructuring charges			10			1			103		—		26			9			900			(16	)		(62	)		114		26			88			338
Special items			23			20			12		—		—			3			15			23			—			55		—			55			—
Restructuring charges and special expense items	JJ	$	33		$	21		$	115	$	—	$	26		$	12			57		$	7			27		$	169	$	4,461		($	4,292	)		(96	)

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NON-GAAP MEASURES - SEGMENTS

(dollars in millions)

		Three Months Ended December 31,											Three Months Ended September 30,												Three Months Ended June 30,
		2014											2014												2014
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	52		$	140		$	5	$	197		$	54		$	139		($	4	)	$	189		$	44		$	141		$	128	$	313
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,756		$	4,334		$	10,119	$	19,209		$	4,685		$	4,205		$	10,521		$	19,411		$	4,640		$	4,129		$	10,838	$	19,607
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			6		6			—			—			6			6			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403		403			—			—			384			384			—			—			369		369
Average tangible common equity (non-GAAP)	C	$	4,756		$	4,334		$	3,640	$	12,730		$	4,685		$	4,205		$	4,023		$	12,913		$	4,640		$	4,129		$	4,324	$	13,093
Return on average tangible common equity (non-GAAP)	A/C		4.30	%		12.76	%		NM		6.12	%		4.57	%		13.10	%		NM			5.81	%		3.87	%		13.78	%		NM		9.59	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	50,546		$	40,061		$	40,064	$	130,671		$	49,012		$	38,854		$	40,825		$	128,691		$	48,556		$	38,022		$	40,570	$	127,148
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			6		6			—			—			6			6			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403		403			—			—			384			384			—			—			369		369
Average tangible assets (non-GAAP)	E	$	50,546		$	40,061		$	33,585	$	124,192		$	49,012		$	38,854		$	34,327		$	122,193		$	48,556		$	38,022		$	34,056	$	120,634
Return on average total tangible assets (non-GAAP)	A/E		0.40	%		1.38	%		NM		0.63	%		0.44	%		1.42	%		NM			0.61	%		0.37	%		1.50	%		NM		1.04	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	611		$	180		$	33	$	824		$	609		$	162		$	39		$	810		$	655		$	157		$	136	$	948
Net interest income (GAAP)			536			283			21		840			532			270			18			820			546			264			23		833
Noninterest income (GAAP)			218			111			10		339			226			104			11			341			236			107			297		640
Total revenue	G	$	754		$	394		$	31	$	1,179		$	758		$	374		$	29		$	1,161		$	782		$	371		$	320	$	1,473
Efficiency ratio (non-GAAP)	F/G		81.09	%		45.48	%		NM		69.88	%		80.42	%		43.35	%		NM			69.84	%		83.61	%		42.36	%		NM		64.33	%

33

NON-GAAP MEASURES - SEGMENTS (CONTINUED)

(dollars in millions)

		Three Months Ended March 31,												Three Months Ended December 31,
		2014												2013
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	32		$	141		($	7	)	$	166		$	50		$	123		($	21	)	$	152
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,568		$	4,023		$	10,779		$	19,370		$	4,448		$	3,978		$	10,938		$	19,364
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			7			7			—			—			8			8
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			351			351			—			—			342			342
Average tangible common equity (non-GAAP)	C	$	4,568		$	4,023		$	4,247		$	12,838		$	4,448		$	3,978		$	4,396		$	12,822
Return on average tangible common equity (non-GAAP)	A/C		2.81	%		14.17	%		NM			5.24	%		4.40	%		12.10	%		NM			4.71	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	47,610		$	36,955		$	39,339		$	123,904		$	46,225		$	36,094		$	38,074		$	120,393
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			7			7			—			—			8			8
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			351			351			—			—			342			342
Average tangible assets (non-GAAP)	E	$	47,610		$	36,955		$	32,807		$	117,372		$	46,225		$	36,094		$	31,532		$	113,851
Return on average total tangible assets (non-GAAP)	A/E		0.27	%		1.54	%		NM			0.57	%		0.42	%		1.33	%		NM			0.53	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	638		$	153		$	19		$	810		$	638		$	164		$	16		$	818
Net interest income (GAAP)			537			256			15			808			543			260			(24	)		779
Noninterest income (GAAP)			219			107			32			358			235			105			39			379
Total revenue	G	$	756		$	363		$	47		$	1,166		$	778		$	365		$	15		$	1,158
Efficiency ratio (non-GAAP)	F/G		84.39	%		42.13	%		NM			69.43	%		81.84	%		44.73	%		NM			70.62	%

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NON-GAAP MEASURES - SEGMENTS (CONTINUED)

(dollars in millions)

		FULL YEAR
		2014											2013
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	182		$	561		$	122	$	865		$	242		$	514		($	4,182	)	($	3,426	)
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,665		$	4,174		$	10,560	$	19,399		$	4,395		$	3,897		$	13,542		$	21,834
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			9,063			9,063
Average other intangibles (GAAP)			—			—			7		7			—			—			9			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			377		377			—			—			459			459
Average tangible common equity (non-GAAP)	C	$	4,665		$	4,174		$	4,054	$	12,893		$	4,395		$	3,897		$	4,929		$	13,221
Return on average tangible common equity (non-GAAP)	A/C		3.90	%		13.43	%		NM		6.71	%		5.48	%		13.20	%		NM			(25.91	)%
Return on average total tangible assets
Average total assets (GAAP)	D	$	48,939		$	38,483		$	40,202	$	127,624		$	46,465		$	35,229		$	39,172		$	120,866
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			9,063			9,063
Average other intangibles (GAAP)			—			—			7		7			—			—			9			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			377		377			—			—			459			459
Average tangible assets (non-GAAP)	E	$	48,939		$	38,483		$	33,696	$	121,118		$	46,465		$	35,229		$	30,559		$	112,253
Return on average total tangible assets (non-GAAP)	A/E		0.37	%		1.46	%		NM		0.71	%		0.52	%		1.46	%		NM			(3.05	)%
Efficiency ratio
Noninterest expense (GAAP)	F	$	2,513		$	652		$	227	$	3,392		$	2,522		$	635		$	4,522		$	7,679
Net interest income (GAAP)			2,151			1,073			77		3,301			2,176			1,031			(149	)		3,058
Noninterest income (GAAP)			899			429			350		1,678			1,025			389			218			1,632
Total revenue	G	$	3,050		$	1,502		$	427	$	4,979		$	3,201		$	1,420		$	69		$	4,690
Efficiency ratio (non-GAAP)	F/G		82.39	%		43.37	%		NM		68.12	%		78.76	%		44.66	%		NM			163.73	%

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Forward-Looking Statements

This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.”

Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

• negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense;

• the rate of growth in the economy and employment levels, as well as general business and economic conditions;

• our ability to implement our strategic plan, including the cost savings and efficiency components, and achieve our indicative performance targets;

• our ability to remedy regulatory deficiencies and meet supervisory requirements and expectations;

• liabilities resulting from litigation and regulatory investigations;

• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

• the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

• changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;

• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

• a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

• management’s ability to identify and manage these and other risks; and

• any failure by us to successfully replicate or replace certain functions, systems and infrastructure provided by The Royal Bank of Scotland Group plc (RBS Group).

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends will depend on our financial condition, earnings, cash needs, regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends. In addition, the timing and manner of the sale of RBS Group’s remaining ownership of our common stock remains uncertain, and we have no control over the manner in which RBS Group may seek to divest such remaining shares. Any such sale would impact the price of our shares of common stock.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission and declared effective on September 23, 2014.

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