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): October 23, 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 October 23, 2015, Citizens Financial Group, Inc. issued a press release reporting third quarter 2015 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 October 23, 2015
	Exhibit 99.2	Citizens Financial Group, Inc. earnings release presentation issued October 23, 2015
	Exhibit 99.3	Citizens Financial Group, Inc. financial supplement for third quarter 2015

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/ Eric Aboaf
	Eric Aboaf
	Chief Financial Officer

Date: October 23, 2015

EXHIBIT INDEX

Exhibit Number	Description
99.1	Citizens Financial Group, Inc. press release dated October 23, 2015
99.2	Citizens Financial Group, Inc. earnings release presentation issued October 23, 2015
99.3	Citizens Financial Group, Inc. financial supplement for third quarter 2015

EX-99.1

Exhibit 99.1

Citizens Financial Group, Inc. Reports Third Quarter Net Income of $220 Million;

Diluted EPS of $0.40, up 18% from third quarter 2014

Focused execution on growth and efficiency initiatives drives positive operating leverage

PROVIDENCE, RI (October 23, 2015) Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reported third quarter net income of $220 million, or $0.40 per diluted common share, compared with third quarter 2014 net income of $189 million, or $0.34 per diluted common share. Third quarter 2015 net income was up $30 million from second quarter 2015 net income of $190 million, and diluted EPS increased $0.05 from $0.35 in second quarter 2015. As expected, the company recorded no restructuring charges and special items in third quarter 2015 compared with $25 million after-tax, or $0.05 per diluted common share, in second quarter 2015, and $13 million after-tax, or $0.02 per diluted common share, in the third quarter 2014, as detailed in the Discussion of Results portion of this release. Third quarter 2015 diluted EPS totaled $0.40 compared to Adjusted diluted EPS* of $0.40 in second quarter 2015 and $0.36 in third quarter 2014, reflecting the continued focus on enhancing efficiency and delivering revenue growth in the face of the persistent low-rate environment. Third quarter 2015 net income available to common stockholders was reduced by $7 million, or $0.01 per share, related to preferred stock dividends.

Chairman and Chief Executive Officer Bruce Van Saun commented, “We delivered solid financial results this quarter, reflecting good execution of our growth and efficiency initiatives. During the quarter we continued to add strong leadership to our management team, namely Don McCree to lead our Commercial business, John Bahnken to run Wealth Management, and Chris Nard to run our Mortgage business. We are making significant strides in improving our overall performance and delivering for our stakeholders.”

Return on Average Tangible Common Equity (“ROTCE”)* of 6.6% in third quarter 2015 improved from 5.9% in second quarter 2015 and 5.8% in third quarter 2014. Third quarter 2015 results compare with Adjusted ROTCE* of 6.7% in second quarter 2015 and 6.2% in third quarter 2014.

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

Key Highlights

• Third quarter highlights, as compared with second quarter 2015, include 2% net interest income growth, a four basis point improvement in net interest margin, positive operating leverage given good expense discipline, and continued loan growth and business momentum. Tangible book value per share increased by 2%.

* 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. Where there is a reference to an “Adjusted” result in a paragraph, all measures which follow that “Adjusted” result are also “Adjusted” and exclude restructuring charges and special items as applicable. There were no restructuring charges or special items recorded in third quarter 2015.

Citizens Financial Group, Inc.

• Compared with third quarter 2014 Adjusted results*, third quarter 2015 results also reflect strong positive operating leverage, with 4% total revenue growth and a 1% increase in noninterest expense, improving our efficiency ratio to 66% from 68%.

Third Quarter 2015 vs. Second Quarter 2015

Results

• Total revenue increased 1%, as 2% growth in net interest income was partially offset by a reduction in noninterest income from relatively strong second quarter 2015 levels.

• Net interest income of $856 million increased $16 million, driven by average loan growth of 1% and an additional day in the quarter.

• Net interest margin of 2.76% increased four basis points largely reflecting modest balance sheet deleveraging and improving retail and commercial loan yields, partially offset by an increase in deposit costs.

• Noninterest income of $353 million decreased $7 million, as an increase in other income, including $8 million in branch real estate gains, and service charges and fee growth was more than offset by an $8 million reduction in mortgage servicing rights valuation, lower capital markets fees from relatively strong second quarter levels, and a $7 million reduction in securities gains.

• Noninterest expense of $798 million decreased $43 million, driven by a $40 million decrease in restructuring charges and special items. Noninterest expense was down slightly from adjusted second quarter 2015 levels as the benefit of lower equipment expense and other expense was partially offset by an increase in outside services.

• Efficiency ratio of 66% improved 400 basis points driven by a $40 million decrease in restructuring charges and special items. The efficiency ratio improved 1% from an Adjusted efficiency ratio* of 67% in second quarter 2015.

• Provision for credit losses of $76 million remained broadly stable.

Balance Sheet

• Average interest-earning assets of $123.0 billion decreased $188 million, as loan growth of $1.2 billion, largely in student, mortgage, auto, and commercial real estate was more than offset by a decrease in short-term investment portfolio assets, largely interest-bearing cash balances.

• Average deposits increased $2.5 billion, or 2%, driven by broad-based growth across money market, interest checking and demand deposits.

• Nonperforming loans and leases (“NPLs”) decreased $16 million, or 2%, to 1.06% of loans and leases compared with 1.09% in second quarter 2015 and 1.19% third quarter 2014; Allowance coverage of NPLs increased to 116% from 114% in second quarter 2015 and 111% in third quarter 2014.

• Capital strength remained robust with a common equity Tier 1 (“CET1”) capital ratio of 11.8%.

2

Citizens Financial Group, Inc.

Third Quarter 2015 vs. Third Quarter 2014

• Total revenue of $1.2 billion increased 4% from the prior year quarter, on 4% growth in net interest income and a 4% increase in noninterest income.

• Net interest income of $856 million increased $36 million, driven by 8% average loan growth.

• Noninterest income was up $12 million, largely as higher other income, card and trust and investment services fees were partially offset by lower mortgage banking, capital markets and foreign exchange and trade finance fees.

• Noninterest expense decreased $12 million, driven by a $21 million decrease in restructuring charges and special items. Noninterest expense increased $9 million on an Adjusted basis* as a reduction in salaries and employee benefits was more than offset by increased advertising, insurance costs, outside services and equipment costs which included the impact of continued investments to drive growth.

• Provision for credit losses of $76 million remained stable, largely reflecting the benefit of improvement in credit quality offset by the effect of continued loan growth.

• Net income of $220 million increased $31 million, or 16%, from third quarter 2014 and increased $18 million, or 9%, from Adjusted* third quarter 2014 levels.

• ROTCE of 6.6% compares with an Adjusted ROTCE* of 6.2% in the third quarter 2014.

• Average interest-earning assets increased 5%, as loan and lease growth of 8% was partially offset by a 6% decrease in the investment portfolio.

Update on Plan Execution

• Progress on initiatives to drive revenue growth and enhance efficiency continues:

• Consumer Banking – Continued loan and deposit growth, with particular strength in student lending and unsecured credit; checking households up 2% from 3Q14 with new client cross-sell rates up 8%, and addition of new leadership in important growth areas such as Wealth and Mortgage.

• Commercial Banking – Focus on enhancing risk adjusted returns and comprehensive pricing initiatives is helping to drive attractive loan growth, particularly in Franchise Finance and CRE, with improving loan yields; renewed emphasis on lowering cost of deposit growth is delivering results, and Treasury Solutions fees are up 7% from 3Q14.

• Expense initiatives – Remain on track to reach our savings target of $200 million by end 2016.

• Incremental revenue and efficiency initiatives are tracking as planned.

• Balance sheet optimization initiatives to improve effectiveness of deposit gathering efforts and to direct asset growth to higher return categories is progressing well.

• TOP II initiatives are building momentum – early results for Treasury Solutions pricing initiative are in line with expectations, and Operations Transformation initiatives are being implemented. Consumer and Commercial cross-selling initiatives are showing encouraging early indications.

3

Citizens Financial Group, Inc.

Earnings highlights

										3Q15 change from
($s in millions, except per share data)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Earnings
Net interest income	$	856		$	840		$	820		$	16			2	%	$	36			4	%
Noninterest income		353			360			341			(7)			(2)			12			4
Total revenue		1,209			1,200			1,161			9			1			48			4
Noninterest expense		798			841			810			(43)			(5)			(12)			(1)
Pre-provision profit		411			359			351			52			14			60			17
Provision for credit losses		76			77			77			(1)			(1)			(1)			(1)
Net income		220			190			189			30			16			31			16
Net income available to common shareholders		213			190			189			23			12			24			13
After-tax restructuring charges and special items*	$	—		$	25		$	13		$	(25)			(100)	%	$	(13)			(100)	%
Net income available to common shareholders excluding restructuring charges and special items*	$	213		$	215		$	202		$	(2)			(1)	%	$	11			5	%
Average common shares outstanding
Basic (in millions)		531.0			537.7			560.0			(6.7)			(1)	%		(29.0)			(5)	%
Diluted (in millions)		533.4			539.9			560.2			(6.5)			(1)	%		(26.8)			(5)	%
Diluted earnings per share	$	0.40		$	0.35		$	0.34		$	0.05			14	%	$	0.06			18	%
Diluted earnings per share, excluding restructuring charges and special items*	$	0.40		$	0.40		$	0.36		$	—			—	%	$	0.04			11	%
Financial ratios
Net interest margin		2.76	%		2.72	%		2.77	%		4	bps					(1)	bps
Noninterest income as a % of total revenue		29.2			30.0			29.4			(80)	bps					(17)	bps
Effective income tax rate		34.1			32.7			30.8			143	bps					331	bps
Efficiency ratio*		66			70			70			(400)	bps					(382)	bps
Efficiency ratio, excluding restructuring charges and special items*		66			67			68			(68)	bps					(200)	bps
Return on average tangible common equity*		6.6			5.9			5.8			70	bps					79	bps
Return on average tangible common equity excluding restructuring charges and special items*		6.6			6.7			6.2			(7)	bps					38	bps
Return on average common equity		4.4			3.9			3.9			46	bps					53	bps
Return on average total assets		0.7			0.6			0.6			9	bps					7	bps
Return on average total tangible assets*		0.7	%		0.6	%		0.6	%		9	bps					7	bps
Capital adequacy(1)(2)
Common equity tier 1 capital ratio(3)		11.8	%		11.8	%		12.9	%
Total capital ratio		15.4			15.3			16.1
Tier 1 leverage ratio		10.4	%		10.4	%		10.9	%
Asset quality(2)
Total nonperforming loans and leases as a % of total loans and leases		1.06	%		1.09	%		1.19	%		(3)	bps					(13)	bps
Allowance for loan and lease losses as a % of loans and leases		1.23			1.24			1.32			(1)	bps					(9)	bps
Allowance for loan and lease losses as a % of nonperforming loans and leases		116			114			111			175	bps					482	bps
Net charge-offs as a % of average loans and leases		0.31	%		0.33	%		0.38	%		(2)	bps					(7)	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  CET1 capital under Basel III replaced Tier 1 common capital under Basel I effective January 1, 2015.

4

Citizens Financial Group, Inc.

Discussion of Results:

Third quarter 2015 pre-provision profit of $411 million and net income of $220 million included no restructuring charges and special items. Second quarter 2015 pre-provision profit and net income were reduced by a net $40 million pre-tax, or $25 million after-tax, 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 pre-provision profit and net income were reduced by a net $21 million pre-tax, or $13 million after-tax, of restructuring charges and special items. All references to Adjusted results* exclude the impact of restructuring charges and special items.

Restructuring charges and special items

									3Q15 change from
($s in millions, except per share data)	3Q15		2Q15			3Q14			2Q15			3Q14
Pre-tax total noninterest expense restructuring charges and special items		—		40			21			(40	)		(21	)
After-tax total noninterest expense restructuring charges and special items		—		25			13			(25	)		(13	)
Pre-tax restructuring charges and special items		—		(40	)		(21	)		40			21
After-tax restructuring charges and special items		—		(25	)		(13	)		25			13
Diluted EPS impact	$	—	$	(0.05	)	$	(0.02	)	$	0.05		$	0.02

Adjusted results*

							3Q15 change from
($s in millions)	3Q15		2Q15		3Q14		2Q15						3Q14
							$			%			$			%
Net interest income	$	856	$	840	$	820	$	16			2	%	$	36			4	%
Noninterest income		353		360		341		(7	)		(2	)		12			4
Total revenue		1,209		1,200		1,161		9			1			48			4
Adjusted noninterest expense*		798		801		789		(3	)		—			9			1
Adjusted pre-provision profit*		411		399		372		12			3			39			10
Provision for credit losses		76		77		77		(1	)		(1	)		(1	)		(1	)
Adjusted pretax income*		335		322		295		13			4			40			14
Adjusted income tax expense*		115		107		93		8			7			22			24
Adjusted net income*	$	220	$	215	$	202	$	5			2		$	18			9
Preferred dividend		7		—		—		7			NM			7			NM
Adjusted net income available to common shareholders*		213		215		202		(2	)		(1	)		11			5
Adjusted diluted earnings per share*	$	0.40	$	0.40	$	0.36	$	—			—	%	$	0.04			11	%

Pre-provision profit of $411 million increased $12 million from Adjusted second quarter 2015* levels, reflecting a $9 million increase in total revenue and relatively flat noninterest expense. Third quarter 2015 net income of $220 million increased $5 million from Adjusted second quarter 2015* levels, largely reflecting strength in total revenue growth, continued expense discipline and an increase in the effective tax rate.

Pre-provision profit increased $39 million from Adjusted third quarter 2014 levels*, driven by a $48 million increase in total revenue, partially offset by noninterest expense growth. Compared to Adjusted third quarter 2014 results*, net income increased $18 million, or 9%, reflecting a $48 million increase in total revenue, partially offset by a $9 million increase in noninterest expense and an increase in the effective tax rate. Adjusted diluted earnings per share was up 11% given net income growth and a 5% reduction in share count.

5

Citizens Financial Group, Inc.

Net interest income

										3Q15 change from
($s in millions)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Interest income:
Interest and fees on loans and leases and loans held for sale	$	818		$	796		$	756		$	22			3	%	$	62			8	%
Investment securities		154			155			155			(1	)		(1	)		(1	)		(1	)
Interest-bearing deposits in banks		2			1			2			1			100			—			—
Total interest income	$	974		$	952		$	913		$	22			2	%	$	61			7	%
Interest expense:
Deposits	$	65		$	60		$	41		$	5			8	%	$	24			59	%
Federal funds purchased and securities sold under agreements to repurchase		4			2			9			2			100			(5	)		(56	)
Other short-term borrowed funds		17			19			21			(2	)		(11	)		(4	)		(19	)
Long-term borrowed funds		32			31			22			1			3			10			45
Total interest expense	$	118		$	112		$	93		$	6			5	%	$	25			27	%
Net interest income	$	856		$	840		$	820		$	16			2	%	$	36			4	%
Net interest margin		2.76	%		2.72	%		2.77	%		4	bps					(1	) bps

Net interest income of $856 million in third quarter 2015 increased $16 million from second quarter 2015 reflecting a $1.2 billion increase in average loans and leases, one additional day in the quarter, and improving investment portfolio and retail and commercial loan yields, partially offset by modestly higher deposit funding costs. Net interest margin improved four basis points to 2.76% in third quarter 2015, from 2.72% in second quarter 2015. The increase in the linked quarter margin was driven by modest balance sheet deleveraging and improving retail and commercial loan yields, partially offset by an increase in deposit costs.

Compared to third quarter 2014, net interest income increased $36 million largely as the benefit of average earning asset growth, improving investment portfolio yields, improving retail loan yields and a reduction in pay-fixed swap costs was partially offset by an increase in deposit costs, continued pressure from the persistent low-rate environment on loan yields, and higher borrowing costs related to the issuance of subordinated debt and senior notes. Net interest margin remained relatively stable with third quarter 2014 given the factors mentioned above, as well as the impact of modest balance sheet deleveraging.

6

Citizens Financial Group, Inc.

Noninterest Income

							3Q15 change from
($s in millions)	3Q15		2Q15		3Q14		2Q15						3Q14
							$			%			$			%
Service charges and fees	$	145	$	139	$	144	$	6			4	%	$	1			1	%
Card fees		60		60		58		—			—			2			3
Trust and investment services fees		41		41		39		—			—			2			5
Mortgage banking fees		18		30		21		(12	)		(40	)		(3	)		(14	)
Capital markets fees		21		30		22		(9	)		(30	)		(1	)		(5	)
Foreign exchange and trade finance fees		22		22		26		—			—			(4	)		(15	)
Securities gains, net		2		9		2		(7	)		(78	)		—			—
Other income1		44		29		29		15			52			15			52
Noninterest income	$	353	$	360	$	341	$	(7	)		(2	)%	$	12			4	%

¹ Other income includes bank owned life insurance and other income.

Noninterest income of $353 million in the third quarter 2015 decreased $7 million from second quarter 2015, as a $15 million increase in other income due to $8 million in branch real estate gains, as well as improved service charges and fees, were partially offset by lower mortgage banking fees and capital markets fees, and a $7 million reduction in securities gains. Service charges and fees increased $6 million, reflecting seasonality and overall industry trends. Mortgage banking fees decreased $12 million, the result of an $8 million reduction in mortgage servicing rights valuation, as a second quarter 2015 write-up reversed to a modest impairment, and lower origination volumes and gain on sale spreads.

Compared to third quarter 2014, noninterest income increased $12 million driven by higher other income, trust and investment services fees, card fees and service charges and fees, which were partially offset by lower foreign exchange, trade finance fees, mortgage banking fees, and capital markets fees. Service charges and fees were relatively stable, and card fees and trust and investment services fees increased $4 million. Mortgage banking fees decreased $3 million as a $7 million decrease in mortgage servicing rights valuation more than offset improved gain on sale spreads.

Noninterest expense

							3Q15 change from
($s in millions)	3Q15		2Q15		3Q14		2Q15						3Q14
							$			%			$			%
Salaries and employee benefits	$	404	$	411	$	409	$	(7	)		(2	)%	$	(5	)		(1	)%
Outside services		89		99		106		(10	)		(10	)		(17	)		(16	)
Occupancy		75		90		77		(15	)		(17	)		(2	)		(3	)
Equipment expense		62		65		58		(3	)		(5	)		4			7
Amortization of software		35		37		38		(2	)		(5	)		(3	)		(8	)
Other operating expense		133		139		122		(6	)		(4	)		11			9
Total noninterest expense	$	798	$	841	$	810	$	(43	)		(5	)%	$	(12	)		(1	)%
Restructuring charges and special items		—		40		21		(40	)		(100	)%		(21	)		(100	)%
Total noninterest expense, excluding restructuring charges and special items*	$	798	$	801	$	789	$	(3	)		—	%	$	9			1	%

Noninterest expense of $798 million in third quarter 2015 decreased $43 million from second quarter 2015, largely due to a $40 million decrease in restructuring charges and special items. Excluding these charges, noninterest expense declined slightly from second quarter 2015 Adjusted* levels, as lower equipment and other expense were largely offset by an increase in outside services. Our efficiency initiatives continue to help fund investments in the businesses to drive future revenue growth.

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Citizens Financial Group, Inc.

Compared with third quarter 2014, noninterest expense decreased $12 million, as a $21 million decrease in restructuring charges and special items was partially offset by higher advertising, insurance and outside services costs. Compared with Adjusted third quarter 2014 results, noninterest expense increased $9 million, largely driven by increases in other expense and equipment expense, partially offset by lower salaries and employee benefits expense.

The effective tax rate increased to 34.1% in third quarter 2015 compared with 32.7% in second quarter 2015, largely reflecting the benefit of a true up of certain tax items during the second quarter. This increase impacted net income by approximately $5 million. The tax rate increased approximately 330 basis points from 30.8% in third quarter 2014.

Consumer Banking Segment

										3Q15 change from
($s in millions)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Net interest income	$	556		$	544		$	532		$	12			2	%	$	24			5	%
Noninterest income		235			230			226			5			2			9			4
Total revenue		791			774			758			17			2			33			4
Noninterest expense		623			613			609			10			2			14			2
Pre-provision profit		168			161			149			7			4			19			13
Provision for credit losses		64			60			66			4			7			(2	)		(3	)
Income before income tax expense		104			101			83			3			3			21			25
Income tax expense		36			35			29			1			3			7			24
Net income	$	68		$	66		$	54		$	2			3	%	$	14			26	%
Average balances
Total loans and leases (1)	$	51,886		$	51,024		$	47,848		$	862			2	%	$	4,038			8	%
Total deposits		70,527			69,963			65,609			564			1	%		4,918			7	%
Key metrics
ROTCE (2)*		5.7	%		5.7	%		4.6	%		1	bps					110	bps
Efficiency ratio*		79	%		79	%		80	%		(53	) bps					(170	) bps
Loan-to-deposit ratio (period-end)(1)		74.4	%		73.2	%		74.0	%		115	bps					37	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 $68 million in third quarter 2015 increased $2 million, or 3%, compared to second quarter 2015, as revenue growth was partially offset by expense growth tied to investment initiatives and increased provision expense. Net interest income increased $12 million, or 2%, from second quarter 2015, driven by 2% loan growth, with particular strength in student, mortgage, and auto loans, as well as an additional day in the quarter, partially offset by higher deposit costs. Noninterest income increased $5 million, or 2%, from second quarter 2015, and included $8 million in branch real estate gains. Results also reflected growth in service charges and other fees, and trust and investment services fees, partially offset by a $12 million decline in mortgage banking fees, which included an $8 million decrease in mortgage servicing rights valuation as a second quarter write-up reversed to a modest impairment. Noninterest expense of $623 million increased $10 million from second quarter 2015, largely reflecting growth in outside services, salaries and employee benefits expense and higher regulatory costs, partially offset by lower credit collection costs and equipment expense. Provision for credit losses of $64 million increased $4 million, or 7%, from second quarter 2015.

8

Citizens Financial Group, Inc.

Compared with third quarter 2014, net income increased $14 million, as an increase in total revenues of $33 million was somewhat offset by increased noninterest expense. Net interest income increased $24 million as solid loan growth, particularly in auto, student, and mortgage, was partially offset by the effect of the relatively persistent low-rate environment and higher deposit costs. Noninterest income grew $9 million as branch real estate gains and increased trust and investment services fees were partially offset by lower mortgage banking fees. Noninterest expense increased $14 million, as higher advertising, regulatory costs, salaries and employee benefits expense and our continued investment in the business to drive further growth, was partially offset by lower credit collection costs, insurance and payroll taxes, outside services expense and our continued focus on improving efficiency. Provision for credit losses of $64 million decreased $2 million, or 3%, from third quarter 2014, largely reflecting continued improvement in credit quality modestly offset by the impact of loan growth.

Commercial Banking Segment

										3Q15 change from
($s in millions)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Net interest income	$	299		$	286		$	270		$	13			5	%	$	29			11	%
Noninterest income		100			108			104			(8	)		(7	)		(4	)		(4	)
Total revenue		399			394			374			5			1			25			7
Noninterest expense		175			181			162			(6	)		(3	)		13			8
Pre-provision profit		224			213			212			11			5			12			6
Provision for credit losses		3			7			—			(4	)		(57	)		3			—
Income before income tax expense		221			206			212			15			7			9			4
Income tax expense		76			71			73			5			7			3			4
Net income	$	145		$	135		$	139		$	10			7	%	$	6			4	%
Average balances
Total loans and leases (1)	$	41,993		$	41,467		$	37,787		$	526			1	%	$	4,206			11	%
Total deposits		24,604			22,717			20,985			1,887			8	%		3,619			17	%
Key metrics
ROTCE (2)*		12.2	%		11.7	%		13.1	%		55	bps					(86	) bps
Efficiency ratio*		44	%		46	%		43	%		(232	) bps					40	bps
Loan-to-deposit ratio (period-end)(1)		166.0	%		176.2	%		176.9	%		(1,014	) bps					(1,086	) 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 $145 million in third quarter 2015 increased $10 million, or 7%, from second quarter 2015, reflecting an increase in total revenue and a reduction in noninterest expense and provision for credit losses. Net interest income of $299 million increased $13 million, or 5%, from second quarter 2015, driven by an average 1% loan and lease growth and 8% deposit growth. Average loans and leases increased $526 million led by Commercial Real Estate, Franchise Finance and Corporate Finance lines of business. Noninterest income decreased $8 million, or 7%, from second quarter 2015, largely as growth in service charges and other fees, interest rate products fees and leasing income was offset by a decrease in capital markets fees from strong second quarter 2015 levels. Noninterest expense decreased $6 million, or 3%, from second quarter 2015, largely reflecting lower regulatory costs and equipment expense, partially offset by increased outside services and insurance costs. Provision for credit losses of $3 million decreased $4 million, reflecting lower net charge-offs.

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Citizens Financial Group, Inc.

Compared to third quarter 2014, net income increased $6 million, or 4%, as a $25 million increase in total revenue was partially offset by a $13 million increase in noninterest expense and a $3 million increase in provision for credit losses. Net interest income increased $29 million, or 11%, from third quarter 2014, reflecting the benefit of a $4.2 billion increase in average loans and leases, as well as deposit growth, partially offset by yield compression. Loan growth was driven by strength in Commercial Real Estate, Industry Verticals, Corporate Finance, Franchise Finance, and Mid Corporate. Noninterest income decreased $4 million, or 4%, from third quarter 2014, as growth in service charges and other fees, card fees, and interest rate products was more than offset by a reduction in foreign exchange and trade finance fees, capital market fees and leasing income. Noninterest expense increased $13 million, or 8%, from third quarter 2014 reflecting a reduction in regulatory costs which was more than offset by higher insurance costs, salaries and employee benefits tied to growth initiatives and higher outside services. Provision for credit losses increased $3 million from third quarter 2014, reflecting higher net-charge-offs.

Other⁽¹⁾

									3Q15 change from
($s in millions)	3Q15		2Q15			3Q14			2Q15						3Q14
									$			%			$			%
Net interest income	$	1	$	10		$	18		$	(9	)		(90	)%	$	(17	)		(94	)%
Noninterest income		18		22			11			(4	)		(18	)		7			64
Total revenue		19		32			29			(13	)		(41	)		(10	)		(34	)
Noninterest expense		—		47			39			(47	)		(100	)		(39	)		(100	)
Pre-provision profit (loss)		19		(15	)		(10	)		34			227			29			290
Provision for credit losses		9		10			11			(1	)		(10	)		(2	)		(18	)
Income (loss) before income tax expense (benefit)		10		(25	)		(21	)		35			140			31			148
Income tax expense (benefit)		3		(14	)		(17	)		17			121			20			118
Net income (loss)	$	7	$	(11	)	$	(4	)	$	18			164		$	11			27,500	%
Average balances
Total loans and leases (2)	$	3,367	$	3,569		$	4,218		$	(202	)		(6	)%	$	(851	)		(20	)%
Total deposits		5,859		5,853			5,082			6			—	%		777			15	%

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, capital, 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 $7 million in third quarter 2015, compared with a net loss of $11 million in second quarter 2015, as a reduction in total revenue was more than offset by a $40 million decrease in restructuring charges and special items. Net interest income of $1 million decreased $9 million from the prior quarter driven by lower non-core loan balances. Noninterest income of $18 million decreased $4 million from second quarter 2015, reflecting lower securities gains. Noninterest expense decreased $47 million, driven by lower restructuring charges and special items. Provision for credit losses of $9 million in third quarter decreased $1 million from the prior quarter and represented a $1 million reserve build versus a $1 million release in the prior quarter.

Compared with the third quarter of 2014, net income increased $11 million, as a reduction in total revenue was more than offset by lower expenses and the benefit of a $21 million decrease in restructuring charges and special items. Net interest income decreased $17 million, driven by an increase in wholesale funding costs, and lower non-core loans, partially offset by a reduction in swap costs. Noninterest income increased $7 million, reflecting the effect of an accounting change related to the

10

Citizens Financial Group, Inc.

low-income housing investment portfolio, offset in income tax expense. Noninterest expense decreased $39 million, driven by lower restructuring charges and special items and lower incentives. Provision for credit losses declined $2 million from the third quarter 2014, which benefited from an $11 million reserve release. Provision expense also reflected a $12 million decrease in non-core charge-offs relative to third quarter 2014.

Consolidated balance sheet review⁽¹⁾

										3Q15 change from
($s in millions)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Total assets	$	135,447		$	137,251		$	131,341		$	(1,804	)		(1	)%	$	4,106			3	%
Loans and leases and loans held for sale		97,851			97,235			90,957			616			1			6,894			8
Deposits		101,866			100,615			93,463			1,251			1			8,403			9
Average interest-earning assets (quarterly)		123,017			123,205			117,196			(188	)		—			5,821			5
Stockholders’ equity		19,600			19,586			19,383			14			—			217			1
Stockholders’ common equity		19,353			19,339			19,383			14			—			(30	)		—
Tangible common equity*	$	12,939		$	12,909		$	12,900		$	30			—	%	$	39			—	%
Loan-to-deposit ratio (period-end)(2)		96.1	%		96.6	%		97.3	%		(58	) bps					(126	) bps
Common equity tier 1 capital ratio(3)		11.8			11.8			12.9
Total capital ratio(3)		15.4	%		15.3	%		16.1	%

¹  Represents period-end unless otherwise noted.

² Includes loans held for sale.

³  Current reporting period regulatory capital ratios are preliminary. Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2018. Ratios also reflect the required US Standardized methodology for calculating RWAs, effective January 1, 2015.

Total assets of $135.4 billion decreased $1.8 billion, or 1%, from June 30, 2015 as retail and commercial loan growth was largely offset by a $1.8 billion decrease in investment portfolio assets, largely cash and interest-bearing deposit positions, reflecting more efficient balance sheet management. Total assets increased $4.1 billion, or 3%, from September 30, 2014 reflecting a $6.7 billion, or 7%, increase in loans and leases, partially offset by a $1.7 billion decrease in short-term investment portfolio assets, largely cash and interest-bearing deposit positions.

Average interest-earning assets of $123.0 billion in third quarter 2015, decreased $188 million from the prior quarter, as strength in student, mortgage, commercial real estate and auto loans was more than offset by a decrease in short-term investments and reductions in home equity outstandings. Total Commercial loan and lease growth of $478 million was driven by strength in Commercial Real Estate, Franchise Finance and Corporate Finance businesses. Retail loan growth of $707 million was driven by higher student, mortgage, and auto loans, which were partially offset by lower home equity balances and a reduction in the non-core portfolio. Average interest-earning assets increased $5.8 billion, or 5%, from third quarter 2014 reflecting a $4.0 billion increase in commercial loans and leases and $3.2 billion increase in retail loans, despite a $726 million decrease in the non-core loan portfolio.

Deposits of $101.9 billion increased $1.3 billion, or 1%, from June 30, 2015 reflecting growth in checking with interest and demand deposits. Compared with September 30, 2014, deposits increased $8.4 billion, or 9%, reflecting growth across every category and with particular strength in consumer deposits. The loan-to-deposit ratio of 96.1% as of September 30, 2015 compared with 96.6% as of June 30, 2015 and 97.3% as of September 30, 2014.

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Citizens Financial Group, Inc.

Interest-earning assets

							3Q15 change from
($s in millions)	3Q15		2Q15		3Q14		2Q15						3Q14
							$			%			$			%
Period-end interest-earning assets
Investments and interest-bearing deposits	$	25,406	$	27,227	$	27,073	$	(1,821	)		(7	)%	$	(1,667	)		(6	)%
Loans and leases
Commercial loans and leases		45,269		45,068		41,470		201			—			3,799			9
Retail loans		52,162		51,470		49,279		692			1			2,883			6
Total loans and leases		97,431		96,538		90,749		893			1			6,682			7
Loans held for sale		369		397		205		(28	)		(7	)		164			80
Other loans held for sale		51		300		3		(249	)		(83	)		48			1,600
Total loans and leases and loans held for sale		97,851		97,235		90,957		616			1			6,894			8
Total period-end interest-earning assets	$	123,257	$	124,462	$	118,030	$	(1,205	)		(1	)%	$	5,227			4	%
Average interest-earning assets
Investments and interest-bearing deposits	$	25,771	$	27,145	$	27,343	$	(1,374	)		(5	)	$	(1,572	)		(6	)
Loans and leases
Commercial loans and leases		45,174		44,696		41,191		478			1			3,983			10
Retail loans		51,617		50,910		48,459		707			1			3,158			7
Total loans and leases		96,791		95,606		89,650		1,185			1			7,141			8
Loans held for sale		327		308		176		19			6			151			86
Other loans held for sale		128		146		27		(18	)		(12	)		101			374
Total loans and leases and loans held for sale		97,246		96,060		89,853		1,186			1			7,393			8
Total average interest-earning assets	$	123,017	$	123,205	$	117,196	$	(188	)		—	%	$	5,821			5	%

Investments and interest-bearing deposits of $25.4 billion as of September 30, 2015 decreased $1.8 billion from June 30, 2015, largely reflecting a continued reduction in short-term investments, mainly cash. Compared with September 30, 2014, investments and interest-bearing deposits decreased $1.7 billion, or 6%. As of September 30, 2015, the average effective duration of the securities portfolio was 3.3 years, compared with 3.7 years at June 30, 2015, and 4.0 years at September 30, 2014. The decrease in the third quarter reflects the impact of a decrease in long-term rates, as well as modest repositioning of the investment portfolio.

Period-end loans and leases of $97.4 billion at September 30, 2015 increased $893 million from $96.5 billion at June 30, 2015, and increased $6.7 billion from $90.7 billion at September 30, 2014. The linked quarter increase was driven by a $692 million increase in retail loans and a $201 million increase in commercial loans and leases. Retail loan growth was driven by a $539 million increase in residential mortgage loans, a $491 million increase in student loans and a $149 million increase in auto loans, partially offset by a $515 million decrease in home equity outstandings, including continued runoff in the non-core portfolio. Commercial loan and lease growth was driven by our Commercial Real Estate, Franchise Finance, and Mid Corporate businesses. During the quarter we purchased a net $96 million in auto loans, $131 million in student loans, and $63 million in mortgage loans, and sold $100 million in commercial leases.

Compared with September 30, 2014, period-end loans and leases increased $6.7 billion, reflecting a $3.8 billion increase in commercial loans and leases and a $2.9 billion increase in retail loans. Commercial loan growth was driven by growth in our Commercial Real Estate, Industry Verticals, Franchise Finance, and Corporate Finance businesses. Retail loan growth was driven by a $1.8 billion increase in auto loans, $1.8 billion increase in student loans, and $1.5 billion increase in residential mortgage loans partially offset by a $2.0 billion decrease in home equity outstandings, including continued runoff in the non-core portfolio.

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Citizens Financial Group, Inc.

Average loans and leases of $96.8 billion increased $1.2 billion from second quarter 2015, driven by higher student, residential mortgage, commercial real estate, and auto balances. Results also reflect a $187 million decrease in the non-core loan portfolio. Compared with third quarter 2014, average loans and leases increased $7.1 billion, driven by growth in commercial and commercial real estate, and an increase in auto, student and residential mortgage balances, partially offset by a decrease in home equity outstandings and a $726 million reduction in the non-core loan portfolio.

Deposits

							3Q15 change from
($s in millions)	3Q15		2Q15		3Q14		2Q15						3Q14
							$			%			$		%
Period-end deposits
Demand deposits	$	27,373	$	26,678	$	25,877	$	695			3	%	$	1,496		6	%
Checking with interest		18,350		17,114		15,449		1,236			7			2,901		19
Savings		8,011		8,080		7,655		(69	)		(1	)		356		5
Money market accounts		35,539		35,735		32,870		(196	)		(1	)		2,669		8
Term deposits		12,593		13,008		11,612		(415	)		(3	)		981		8
Total deposits	$	101,866	$	100,615	$	93,463	$	1,251			1	%	$	8,403		9	%
Average deposits
Total average deposits	$	100,990	$	98,533	$	91,676	$	2,457			2	%	$	9,314		10	%

Third quarter 2015 average deposits of $101.0 billion increased $2.5 billion, or 2%, from second quarter 2015, and $9.3 billion, or 10%, from third quarter 2014, reflecting growth in every category. Period-end total deposits at September 30, 2015 of $101.9 billion increased $1.3 billion, or 1%, from June 30, 2015, with particular strength in checking with interest and demand deposits. Compared with September 30, 2014, period-end total deposits increased $8.4 billion, or 9%, driven by growth in every category.

Borrowed funds

							3Q15 change from
($s in millions)	3Q15		2Q15		3Q14		2Q15						3Q14
							$			%			$			%
Period-end borrowed funds
Federal funds purchased and securities sold under agreements to repurchase	$	1,293	$	3,784	$	5,184	$	(2,491	)		(66	)%	$	(3,891	)		(75	)%
Other short-term borrowed funds		5,861		6,762		6,715		(901	)		(13	)		(854	)		(13	)
Long-term borrowed funds		4,153		3,890		2,062		263			7			2,091			101
Total borrowed funds	$	11,307	$	14,436	$	13,961	$	(3,129	)		(22	)	$	(2,654	)		(19	)
Average borrowed funds	$	12,001	$	14,772	$	14,996	$	(2,771	)		(19	)%	$	(2,995	)		(20	)%

Total borrowed funds of $11.3 billion at September 30, 2015 decreased $3.1 billion from June 30, 2015, largely due to strength in deposit growth which led to a decrease in securities sold under agreement to repurchase and excess cash at the Federal Reserve. Compared with September 30, 2014, total borrowed funds decreased $2.7 billion given strong deposit growth. Average borrowed funds of $12.0 billion decreased $2.8 billion from second quarter 2015 as growth in deposits reduced our reliance on short-term borrowings. Average borrowed funds decreased $3.0 billion from third quarter 2014 reflecting deposit growth and a reduction in short-term borrowings and excess cash.

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Citizens Financial Group, Inc.

Capital⁽¹⁾

										3Q15 change from
($s and shares in millions)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Period-end capital
Stockholders’ equity	$	19,600		$	19,586		$	19,383		$	14			—	%	$	217			1	%
Stockholders’ common equity	$	19,353		$	19,339		$	19,383			14			—			(30	)		—
Tangible common equity*	$	12,939		$	12,909		$	12,900			30			—			39			—
Tangible common equity per share*	$	24.52		$	24.03		$	23.04			0.49			2			1.48			6
Common shares - at end of period		527.6			537.1			560.0			(9.5	)		(2	)		(32.4	)		(6	)
Common shares - average (diluted)		533.4			539.9			560.2			(6.5	)		(1	)%		(26.8	)		(5	)%
Common equity tier 1 capital ratio(1)(2)		11.8	%		11.8	%		12.9	%
Total capital ratio(1)(2)		15.4			15.3			16.1
Tier 1 leverage ratio(1)(2)		10.4	%		10.4	%		10.9	%

¹  Current reporting period regulatory capital ratios are preliminary.

²  Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2018. Ratios also reflect the required US Standardized transitional methodology for calculating RWAs, effective January 1, 2015.

At September 30, 2015, our Basel III Capital ratios on a transitional basis remained well in excess of applicable regulatory requirements, with a CET1 capital ratio of 11.8% and a total capital ratio of 15.4%. Our capital ratios continue to reflect progress against our objective of realigning our capital profile to be more consistent with that of peer regional banks, while maintaining a strong capital base to support our growth aspirations, strategy, and risk appetite. In August, we completed the issuance of $250 million in subordinated debt due 2025, which funded a 9.6 million common stock share repurchase, further reducing RBS’s ownership interest to 20.9%.

Credit quality review

										3Q15 change from
($s in millions)	3Q15			2Q15			3Q14			2Q15						3Q14
										$			%			$			%
Nonperforming loans and leases	$	1,034		$	1,050		$	1,079		$	(16)			(2)	%	$	(45)			(4)	%
Accruing loans past due 90 days or more		15			8			8			7			88			7			88
Net charge-offs		75			78			88			(3)			(4)			(13)			(15)
Provision for credit losses		76			77			77			(1)			(1)			(1)			(1)
Allowance for loan and lease losses	$	1,201		$	1,201		$	1,201		$	—			—	%	$	—			—	%
Total nonperforming loans and leases as a % of total loans and leases		1.06	%		1.09	%		1.19	%		(3)	bps					(13)	bps
Net charge-offs as % of total loans and leases		0.31			0.33			0.38			(2)	bps					(7)	bps
Allowance for loan and lease losses as a % of nonperforming loans and leases		116.1	%		114.4	%		111.3	%		175	bps					482	bps

Credit quality during the quarter remained strong, with relatively low levels of charge-offs and a decline in nonperforming loans and leases. Nonperforming loans and leases of $1.0 billion at September 30, 2015 decreased $16 million, or 2%, from June 30, 2015, reflecting a $21 million decrease in retail products as a reduction in secured consumer real-estate loans was partially offset by a $5 million increase in commercial loans. Nonperforming loans and leases to total loans and leases of 1.06% at September 30, 2015 decreased three basis points from 1.09% at June 30, 2015, and decreased 13 basis points from 1.19% at September 30, 2014. Nonperforming loans and leases decreased $45 million, or 4%, from third quarter 2014, largely driven by improvement in commercial real estate and secured consumer real estate loans, partially offset by increases in student and auto loans given expected seasoning.

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Citizens Financial Group, Inc.

Nonperforming non-core loans totaled $162 million in third quarter 2015, compared with $163 million in second quarter 2015, and $191 million in third quarter 2014. Nonperforming non-core loans to total non-core loans of 6.5% at September 30, 2015, compared with 6.1% at June 30, 2015, and 5.9% at September 30, 2014. This increase was due to a 6.8% reduction in non-core balances during the quarter, which significantly outpaced the reduction in nonperforming non-core loans. Troubled debt restructured loans (“TDRs”) of $1.3 billion were stable compared to $1.3 billion at June 30, 2015, and included $1.2 billion of retail loans and $153 million of commercial loans. Performing TDRs represented 68% of total TDRs as of September 30, 2015, compared with 66% as of June 30, 2015, and 67% as of September 30, 2014.

Net charge-offs of $75 million, or 31 basis points of total loans and leases, decreased $3 million in third quarter 2015, from $78 million, or 33 basis points, in second quarter 2015. Retail product net charge-offs of $70 million remained relatively stable with second quarter 2015 levels. Commercial net charge-offs were $5 million in third quarter 2015, compared with $7 million in second quarter 2015. Overall results included non-core net charge-offs of $9 million in third quarter 2015, compared with $12 million in second quarter 2015, and $21 million in third quarter 2014. Annualized non-core net charge-offs to total average non-core loans and leases was 1.36% in third quarter 2015, compared with 1.70% in second quarter 2015, and 2.52% in third quarter 2014. This reduction in the non-core charge-off rate was driven by higher recoveries in commercial and residential mortgage, and seasonal improvement in student.

Provision for credit losses of $76 million in third quarter 2015 remained stable with second quarter 2015, as improvement in asset quality was offset by a reserve build tied to loan growth. Third quarter 2015 provision for credit losses was also stable with third quarter 2014, as continued improvement in overall credit quality was offset by the impact of loan growth. The total provision for credit losses includes the provision for loan and lease losses as well as the provision for unfunded commitments.

The allowance for loan and lease losses of $1.2 billion remained stable compared to second quarter 2015 and third quarter 2014, largely reflecting continued improvement in overall credit quality. Allowance for loan and lease losses to total loans and leases was 1.23% as of September 30, 2015, compared with 1.24% as of June 30, 2015, and 1.32% as of September 30, 2014. Allowance for loan and lease losses to non-performing loans and leases ratio was 116% as of September 30, 2015, compared with 114% as of June 30, 2015, and 111% as of September 30, 2014.

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Citizens Financial Group, Inc.

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 – 203.900.6854

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) 230-1059, conference ID 365456
Webcast/Presentation:	The live webcast will be available at http://investor.citizensbank.com, under Events
Replay Information:	A replay of the conference call will be available beginning at 10:30 am ET on October 23 through November 23. Please dial (800) 475-6701 and enter access code 365456. The webcast replay will be available at http://investor.citizensbank.com.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $135.4 billion in assets as of September 30, 2015. 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 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 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.

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Citizens Financial Group, Inc.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures. The table below presents reconciliations of certain non-GAAP measures. These reconciliations exclude restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Restructuring charges and special items include expenses related to our efforts to improve processes and enhance efficiencies, as well as rebranding, separation from RBS and regulatory expenses.

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”, “net income available to common stockholders”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income per average common share”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “tangible book value per common share”, “return on average tangible common equity”, “return on average total tangible assets”, “efficiency ratio”, and “operating leverage” as part of our non-GAAP measures. Additionally, “pro forma Basel III fully phased-in common equity tier 1 capital” computations for periods prior to first quarter 2015 are presented 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 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 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.

17

Citizens Financial Group, Inc.

Non-GAAP Reconciliation

(Excluding restructuring charges and special items)

$s in millions, except per share data

																	FOR THE NINE MONTHS ENDED
		QUARTERLY TRENDS															SEPTEMBER 30
		3Q15			2Q15			1Q15			4Q14			3Q14			2015			2014
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	353		$	360		$	347		$	339		$	341		$	1,060		$	1,339
Less: Special items— Chicago gain			—			—			—			—			—			—			288
Noninterest income, excluding special items (non-GAAP)	B	$	353		$	360		$	347		$	339		$	341		$	1,060		$	1,051
Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,209		$	1,200		$	1,183		$	1,179		$	1,161		$	3,592		$	3,800
Less: Special items— Chicago gain			—			—			—			—			—			—			288
Total revenue, excluding special items (non-GAAP)	D	$	1,209		$	1,200		$	1,183		$	1,179		$	1,161		$	3,592		$	3,512
Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	798		$	841		$	810		$	824		$	810		$	2,449		$	2,568
Less: Restructuring charges and special items	MM		—			40			10			33			21			50			136
Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	798		$	801		$	800		$	791		$	789		$	2,399		$	2,432
Net income, excluding restructuring charges and special items:
Net income (GAAP)	G	$	220		$	190		$	209		$	197		$	189		$	619		$	668
Add: Restructuring charges and special items, net of income tax expense (benefit)			—			25			6			20			13			31			(95	)
Net income, excluding restructuring charges and special items (non-GAAP)	H	$	220		$	215		$	215		$	217		$	202		$	650		$	573
Net income available to common stockholders (GAAP), excluding restructuring charges and special items
Net income available to common stockholders (GAAP)	I	$	213		$	190		$	209		$	197		$	189		$	612		$	668
Add: Restructuring charges and special items, net of income tax expense (benefit)			—			25			6			20			13			31			(95	)
Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	J	$	213		$	215		$	215		$	217		$	202		$	643		$	573
Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	K	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		$	19,352		$	19,463
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	J/K		4.40	%		4.45	%		4.49	%		4.48	%		4.14	%		4.45	%		3.94	%
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	L	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		$	19,352		$	19,463
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			6,876			6,876
Less: Average other intangibles (GAAP)			4			5			5			6			6			5			7
Add: Average deferred tax liabilities related to goodwill (GAAP)			453			437			422			403			384			438			368
Average tangible common equity (non-GAAP)	M	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		$	12,909		$	12,948
Return on average tangible common equity (non-GAAP)	I/M		6.60	%		5.90	%		6.53	%		6.12	%		5.81	%		6.34	%		6.90	%
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	J/M		6.60	%		6.67	%		6.73	%		6.76	%		6.22	%		6.67	%		5.92	%
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	N	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		$	134,655		$	126,598
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/N		0.65	%		0.64	%		0.65	%		0.66	%		0.62	%		0.65	%		0.61	%
Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	N	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		$	134,655		$	126,598
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			6,876			6,876
Less: Average other intangibles (GAAP)			4			5			5			6			6			5			7
Add: Average deferred tax liabilities related to goodwill (GAAP)			453			437			422			403			384			438			368
Average tangible assets (non-GAAP)	O	$	128,676		$	129,077		$	126,866		$	124,192		$	122,193		$	128,212		$	120,083
Return on average total tangible assets (non-GAAP)	G/O		0.68	%		0.59	%		0.67	%		0.63	%		0.61	%		0.65	%		0.74	%
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/O		0.68	%		0.67	%		0.69	%		0.69	%		0.66	%		0.68	%		0.64	%

18

Citizens Financial Group, Inc.

Non-GAAP Reconciliation

(Excluding restructuring charges and special items)

$s in millions, except per share data

																	FOR THE NINE MONTHS ENDED
		QUARTERLY TRENDS															SEPTEMBER 30
		3Q15			2Q15			1Q15			4Q14			3Q14			2015			2014
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	856		$	840		$	836		$	840		$	820		$	2,532		$	2,461
Add: Noninterest income (GAAP)			353			360			347			339			341			1,060			1,339
Total revenue (GAAP)	C	$	1,209		$	1,200		$	1,183		$	1,179		$	1,161		$	3,592		$	3,800
Efficiency ratio (non-GAAP)	E/C		66.02	%		70.02	%		68.49	%		69.88	%		69.84	%		68.17	%		67.58	%
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		66.02	%		66.70	%		67.65	%		67.11	%		68.02	%		66.78	%		69.23	%
Tangible book value per common share:
Common shares—at end of period (GAAP)	P		527,636,510			537,149,717			547,490,812			545,884,519			559,998,324			527,636,510			559,998,324
Stockholders’ equity (GAAP)		$	19,353		$	19,339		$	19,564		$	19,268		$	19,383		$	19,353		$	19,383
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			6,876			6,876
Less: Other intangible assets (GAAP)			3			4			5			6			6			3			6
Add: Deferred tax liabilities related to goodwill (GAAP)			465			450			434			420			399			465			399
Tangible common equity (non-GAAP)	Q	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	12,939		$	12,900
Tangible book value per common share (non-GAAP)	Q/P	$	24.52		$	24.03		$	23.96		$	23.46		$	23.04		$	24.52		$	23.04
Net income per average common share—basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding—basic (GAAP)	R		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			538,279,222			559,998,324
Average common shares outstanding—diluted (GAAP)	S		533,398,158			539,909,366			549,798,717			550,676,298			560,243,747			540,926,361			560,081,031
Net income available to common stockholders (GAAP)	I	$	213		$	190		$	209		$	197		$	189		$	612		$	668
Net income per average common share—basic (GAAP)	I/R		0.40			0.35			0.38			0.36			0.34			1.14			1.19
Net income per average common share—diluted (GAAP)	I/S		0.40			0.35			0.38			0.36			0.34			1.13			1.19
Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	J		213			215			215			217			202			643			573
Net income per average common share—basic, excluding restructuring charges and special items (non-GAAP)	J/R		0.40			0.40			0.39			0.40			0.36			1.20			1.02
Net income per average common share—diluted, excluding restructuring charges and special items (non-GAAP)	J/S		0.40			0.40			0.39			0.39			0.36			1.19			1.02
Pro forma Basel III fully phased-in common equity tier 1 capital ratio1 :
Common equity tier 1 (regulatory)		$	13,200		$	13,270		$	13,360		$	13,173		$	13,330
Less: Change in DTA and other threshold deductions (GAAP)			2			3			3			(6	)		(5	)
Pro forma Basel III fully phased-in common equity tier 1 (non-GAAP)	T	$	13,198		$	13,267		$	13,357		$	13,179		$	13,335
Risk-weighted assets (regulatory general risk weight approach)		$	112,277		$	112,131		$	109,786		$	105,964		$	103,207
Add: Net change in credit and other risk-weighted assets (regulatory)			243			247			242			2,882			3,207
Basel III standardized approach risk-weighted assets (non-GAAP)	U	$	112,520		$	112,378		$	110,028		$	108,846		$	106,414
Pro forma Basel III fully phased-in common equity tier 1 capital ratio (non-GAAP)1	T/U		11.7	%		11.8	%		12.1	%		12.1	%		12.5	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	V	$	404		$	411		$	419		$	397		$	409		$	1,234		$	1,281
Less: Restructuring charges and special items			—			6			(1	)		1			—			5			43
Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	W	$	404		$	405		$	420		$	396		$	409		$	1,229		$	1,238

¹ Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume 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.

19

Citizens Financial Group, Inc.

Non-GAAP Reconciliation

(Excluding restructuring charges and special items)

$s in millions, except per share data

																FOR THE NINE MONTHS ENDED
		QUARTERLY TRENDS														SEPTEMBER 30
		3Q15		2Q15			1Q15			4Q14			3Q14			2015			2014
Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	X	$	89	$	99		$	79		$	106		$	106		$	267		$	314
Less: Restructuring charges and special items			—		16			8			18			19			24			60
Outside services, excluding restructuring charges and special items (non-GAAP)	Y	$	89	$	83		$	71		$	88		$	87		$	243		$	254
Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	X	$	75	$	90		$	80		$	81		$	77		$	245		$	245
Less: Restructuring charges and special items			—		15			2			5			2			17			11
Occupancy, excluding restructuring charges and special items (non-GAAP)	AA	$	75	$	75		$	78		$	76		$	75		$	228		$	234
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	BB	$	62	$	65		$	63		$	63		$	58		$	190		$	187
Less: Restructuring charges and special items			—		—			1			1			—			1			3
Equipment expense, excluding restructuring charges and special items (non-GAAP)	CC	$	62	$	65		$	62		$	62		$	58		$	189		$	184
Amortization of software, excluding restructuring charges and special items:
Amortization of software	DD	$	35	$	37		$	36		$	43		$	38		$	108		$	102
Less: Restructuring charges and special items			—		—			—			6			—			—			—
Amortization of software, excluding restructuring charges and special items (non-GAAP)	EE	$	35	$	37		$	36		$	37		$	38		$	108		$	102
Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	FF	$	133	$	139		$	133		$	134		$	122		$	405		$	439
Less: Restructuring charges and special items			—		3			—			2			—			3			19
Other operating expense, excluding restructuring charges and special items (non-GAAP)	GG	$	133	$	136		$	133		$	132		$	122		$	402		$	420
Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,209	$	1,200		$	1,183		$	1,179		$	1,161		$	3,592		$	3,512
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		798		801			800			791			789			2,399			2,432
Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	HH	$	411	$	399		$	383		$	388		$	372		$	1,193		$	1,080
Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (GAAP)	II	$	335	$	282		$	315		$	283		$	274		$	932		$	985
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			—		(40	)		(10	)		(33	)		(21	)		(50	)		152
Income before income tax expense, excluding restructuring charges and special items (non-GAAP)	JJ	$	335	$	322		$	325		$	316		$	295		$	982		$	833
Income tax expense, excluding restructuring charges and special items:
Income tax expense (GAAP)	KK	$	115	$	92		$	106		$	86		$	85		$	313		$	317
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			—		(15	)		(4	)		(13	)		(8	)		(19	)		57
Income tax expense, excluding restructuring charges and special items (non-GAAP)	LL	$	115	$	107		$	110		$	99		$	93		$	332		$	260
Restructuring charges and special expense items include:
Restructuring charges		$	0	$	25		$	1		$	10		$	1		$	26		$	104
Special items			0		15			9			23			20			24			32
Restructuring charges and special expense items	MM	$	0	$	40		$	10		$	33		$	21		$	50		$	136

		QUARTERLY TRENDS								3Q15 v 2Q15			3Q15 v 3Q14
		3Q15		2Q15		1Q15	4Q14	3Q14		% Change			% Change
Operating leverage, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,209	$	1,200			$	1,161		0.8	%		4.1	%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	798	$	801			$	789		(0.4	)%		1.1	%
Operating leverage, excluding restructuring charges and special items: (non-GAAP)	NN										1.1	%		3.0	%

20

Citizens Financial Group, Inc.

Non-GAAP Reconciliation—Segments

$s in millions

		THREE MONTHS ENDED SEPT 30,												THREE MONTHS ENDED JUNE 30,
		2015												2015
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other			Consolidated
Net income (loss) (GAAP)	A		68			145			7			220			66			135			(11	)		190
Less: Preferred stock dividends			—			—			7			7			—			—			—			—
Net income available to common stockholders	B	$	68		$	145		$	—		$	213		$	66		$	135		($	11	)	$	190
Return on average tangible common equity
Average common equity (GAAP)	C	$	4,791		$	4,722		$	9,748		$	19,261		$	4,681		$	4,625		$	10,085		$	19,391
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			4			4			—			—			5			5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			453			453			—			—			437			437
Average tangible common equity (non-GAAP)	D	$	4,791		$	4,722		$	3,321		$	12,834		$	4,681		$	4,625		$	3,641		$	12,947
Return on average tangible common equity (non-GAAP)	B/D		5.67	%		12.24	%		NM			6.60	%		5.66	%		11.69	%		NM			5.90	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	53,206		$	43,113		$	38,784		$	135,103		$	52,489		$	42,617		$	40,415		$	135,521
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			4			4			—			—			5			5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			453			453			—			—			437			437
Average tangible assets (non-GAAP)	F	$	53,206		$	43,113		$	32,357		$	128,676		$	52,489		$	42,617		$	33,971		$	129,077
Return on average total tangible assets (non-GAAP)	A/F		0.51	%		1.34	%		NM			0.68	%		0.51	%		1.27	%		NM			0.59	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	623		$	175		$	—		$	798		$	613		$	181		$	47		$	841
Net interest income (GAAP)			556			299			1			856			544			286			10			840
Noninterest income (GAAP)			235			100			18			353			230			108			22			360
Total revenue	H	$	791		$	399		$	19		$	1,209		$	774		$	394		$	32		$	1,200
Efficiency ratio (non-GAAP)	G/H		78.72	%		43.75	%		NM			66.02	%		79.25	%		46.07	%		NM			70.02	%
		THREE MONTHS ENDED SEPT 30,												THREE MONTHS ENDED DEC 31,
		2015												2014
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other			Consolidated
Net income (loss) (GAAP)	A		61			147			1			209		$	52		$	140		$	5		$	197
Less: Preferred stock dividends			—			—			—			—			—			—			—			—
Net income available to common stockholders	B	$	61		$	147		$	1		$	209		$	52		$	140		$	5		$	197
Return on average tangible common equity
Average common equity (GAAP)	C	$	4,649		$	4,526		$	10,232		$	19,407		$	4,756		$	4,334		$	10,119		$	19,209
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			422			422			—			—			403			403
Average tangible common equity (non-GAAP)	D	$	4,649		$	4,526		$	3,773		$	12,948		$	4,756		$	4,334		$	3,640		$	12,730
Return on average tangible common equity (non-GAAP)	B/D		5.30	%		13.15	%		NM			6.53	%		4.30	%		12.76	%		NM			6.12	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	51,602		$	41,606		$	40,117		$	133,325		$	50,546		$	40,061		$	40,064		$	130,671
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			422			422			—			—			403			403
Average tangible assets (non-GAAP)	F	$	51,602		$	41,606		$	33,658		$	126,866		$	50,546		$	40,061		$	33,585		$	124,192
Return on average total tangible assets (non-GAAP)	A/F		0.48	%		1.43	%		NM			0.67	%		0.40	%		1.38	%		NM			0.63	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	596		$	173		$	41		$	810		$	611		$	180		$	33		$	824
Net interest income (GAAP)			533			276			27			836			536			283			21			840
Noninterest income (GAAP)			219			100			28			347			218			111			10			339
Total revenue	H	$	752		$	376		$	55		$	1,183		$	754		$	394		$	31		$	1,179
Efficiency ratio (non-GAAP)	G/H		79.25	%		46.01	%		NM			68.49	%		81.09	%		45.48	%		NM			69.88	%
		THREE MONTHS ENDED SEPT 30,
		2014
		Consumer			Commercial
		Banking			Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	54		$	139		($	4	)	$	189
Less: Preferred stock dividends			—			—			—			—
Net income available to common stockholders	B	$	54		$	139		($	4	)	$	189
Return on average tangible common equity
Average common equity (GAAP)	C	$	4,685		$	4,205		$	10,521		$	19,411
Less: Average goodwill (GAAP)			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			384			384
Average tangible common equity (non-GAAP)	D	$	4,685		$	4,205		$	4,023		$	12,913
Return on average tangible common equity (non-GAAP)	B/D		4.57	%		13.10	%		NM			5.81	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	49,012		$	38,854		$	40,825		$	128,691
Less: Average goodwill (GAAP)			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			384			384
Average tangible assets (non-GAAP)	F	$	49,012		$	38,854		$	34,327		$	122,193
Return on average total tangible assets (non-GAAP)	A/F		0.44	%		1.42	%		NM			0.61	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	609		$	162		$	39		$	810
Net interest income (GAAP)			532			270			18			820
Noninterest income (GAAP)			226			104			11			341
Total revenue	H	$	758		$	374		$	29		$	1,161
Efficiency ratio (non-GAAP)	G/H		80.42	%		43.35	%		NM			69.84	%

21

Citizens Financial Group, Inc.

Non-GAAP Reconciliation - Segments

$s in millions

		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
		2015												2014
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	195		$	427		($	3	)	$	619		$	130		$	421		$	117	$	668
Less: Preferred stock dividends			—			—			7			7			—			—			—		—
Net income available to common stockholders	B	$	195		$	427		($	10	)	$	612		$	130		$	421		$	117	$	668
Return on average tangible common equity
Average common equity (GAAP)	C	$	4,708		$	4,625		$	10,019		$	19,352		$	4,635		$	4,120		$	10,708	$	19,463
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			438			438			—			—			368		368
Average tangible common equity (non-GAAP)	D	$	4,708		$	4,625		$	3,576		$	12,909		$	4,635		$	4,120		$	4,193	$	12,948
Return on average tangible common equity (non-GAAP)	B/D		5.55	%		12.35	%		NM			6.34	%		3.76	%		13.67	%		NM		6.90	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	52,438		$	42,451		$	39,766		$	134,655		$	48,398		$	37,951		$	40,249	$	126,598
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			438			438			—			—			368		368
Average tangible assets (non-GAAP)	F	$	52,438		$	42,451		$	33,323		$	128,212		$	48,398		$	37,951		$	33,734	$	120,083
Return on average total tangible assets (non-GAAP)	A/F		0.50	%		1.35	%		NM			0.65	%		0.36	%		1.48	%		NM		0.74	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	1,832		$	529		$	88		$	2,449		$	1,902		$	472		$	194	$	2,568
Net interest income (GAAP)			1,633			861			38			2,532			1,615			790			56		2,461
Noninterest income (GAAP)			684			308			68			1,060			681			318			340		1,339
Total revenue	H	$	2,317		$	1,169		$	106		$	3,592		$	2,296		$	1,108		$	396	$	3,800
Efficiency ratio (non-GAAP)	G/H		79.07	%		45.26	%		NM			68.17	%		82.82	%		42.62	%		NM		67.58	%

22

Citizens Financial Group, Inc.

Forward-Looking Statements

This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. 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 and business restrictions 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;

23

Citizens Financial Group, Inc.

• 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 or share repurchases 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 Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the United States Securities and Exchange Commission on March 3, 2015.

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

CFG-IR

24

EX-99.2

3Q15 Financial Results

October 23, 2015

Exhibit 99.2

Forward-looking statements

1

This

document

contains

forward-looking

statements

within

the

Private

Securities

Litigation

Reform

Act

of

1995.

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

and

business

restrictions

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

or

share

repurchases

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

Part

I,

Item

1A

in

our

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2014,

filed

with

the

United

States

Securities

and

Exchange

Commission

on

March

3,

2015.

Note:

Percentage

changes,

per

share

amounts,

and

ratios

presented

in

this

document

are

calculated

using

whole

dollars.

3Q15 highlights

2

1)

Adjusted

results

are

non-GAAP

items.

Where

there

is

a

reference

to

an

“Adjusted”

result

in

a

paragraph,

all

measures

which

follow

that

“Adjusted”

result

are

also

“Adjusted”

and

exclude

restructuring

charges

and

special

items

as

applicable.

See

important

information

on

use

of

Non-GAAP

items

in

the

Appendix.

There

were

no

restructuring

charges

or

special

items

recorded

in

third

quarter

2015.

Improving

profitability and

returns

Diluted EPS of $0.40 compares with Adjusted diluted EPS

1

of $0.40

in 2Q15 and $0.36 in 3Q14

Solid operating leverage of 3% YoY, 1% sequential quarter

NIM improvement to 2.76% in 3Q15 from 2.72% in 2Q15

Strong capital,

liquidity, and

funding

Excellent credit

quality and

progress on risk

management

Continued progress

on strategic growth

and efficiency

initiatives

Robust capital levels with a Common Equity Tier 1 Ratio of 11.8%

Tangible book value per share growth of 2% in 3Q15

Average deposits increased $9.3 billion, or 10% vs 3Q14; loan-to-deposit ratio of 96%

In early August executed $250 million subordinated-debt offering and share repurchase –

in connection

with July sell-down, RBS ownership ~20.9%

Continued strong credit quality with nonperforming loans down 2% from 2Q15 and 4% from 3Q14

Net charge-off ratio of 0.31% compared with 0.33% in 2Q15 and 0.38% in 3Q14

Allowance for loan and lease losses of 1.23% of total loans and leases stable with 2Q15

Allowance coverage of NPLs 116% vs. 114% in 2Q15 and 111% in 3Q14

Generated 8% YoY average loan growth, with strength in commercial, auto, student and mortgage

—

YoY average loan growth of $7.1 billion, with $4.0 billion in commercial, $2.4 billion in auto, and a net

$786 million across other portfolios

Consumer initiatives –

2% HH growth YoY, continued progress in student and organic auto originations,

business bankers up 39 YoY

Commercial initiatives –

Strong loan growth across major businesses with CRE loans up 17% YoY;

Treasury Solutions fees up 7% YoY.

Continued focus on expense discipline -

Noninterest expense up 1% from Adjusted 3Q14

1

despite

continued investments in technology, growth initiatives and regulatory programs

—

On track to deliver targeted $200 million end of 2016 savings goal

Making progress on new initiatives designed to enhance performance

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.

Highlights

Linked quarter:

GAAP net income up $30 million driven by a $25

million after-tax decrease in restructuring charges

and special items

—

3Q15 reflects $7 million preferred dividend,

payable semi-annually

NII up $16 million, reflecting 1% average loan

growth and an additional day

Noninterest income down $7 million largely

reflecting a reduction in mortgage banking and

capital markets fees from relatively strong 2Q15

levels

Noninterest expense down $43 million, driven by a

$40 million decrease in restructuring charges and

special items

Provision expense stable with prior quarter

Prior year quarter:

Net income increased $31 million driven by a $13

million after-tax decrease in restructuring charges

and special items

NII up $36 million, as average loans grew 8%

—

5% average earning asset growth

Noninterest income up $12 million, led by an

increase in other income and broad growth across

most other categories

Noninterest expense down 1%

Provision for credit losses of $76 million was stable

with prior year levels

3Q15 change from

$s in millions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Net interest income

856

$   

840

$   

820

$   

16

$      

2

%

36

$      

4

%

Noninterest income

353

360

341

(7)

(2)

12

4

Total revenue

1,209

1,200

1,161

9

1

48

4

Noninterest expense

798

841

810

(43)

(5)

(12)

(1)

Pre-provision profit

411

359

351

52

14

60

17

Provision for credit losses

76

77

77

(1)

(1)

(1)

(1)

Income before income tax expense

335

282

274

53

19

61

22

Income tax expense

115

92

85

23

25

30

35

Net income

220

$   

190

$   

189

$   

30

$      

16

%

31

$      

16

%

Preferred dividends

7

$        

—

$      

—

$      

7

$        

NM 

7

$        

NM 

Net income available to common

stockholders

213

$   

190

$   

189

$   

23

$      

12

%

24

$      

13

%

$s in billions

Average interest earning assets

123.0

$

123.2

$

117.2

$

(0.2)

$   

—

%

5.8

$    

5

%

Average deposits

2

101.0

$

98.5

$  

91.7

$  

2.5

$    

2

%

9.3

$    

10

%

Key metrics

Net interest margin

2.76

%

2.72

%

2.77

%

4

bps

(1)

bps

Loan-to-deposit ratio (period-end)

2

96.1

%

96.6

%

97.3

%

(58)

bps

(126)

bps

ROTCE

1,3

6.6

%

5.9

%

5.8

%

70

bps

79

bps

ROTA

1,4

0.7

%

0.6

%

0.6

%

9

bps

7

bps

Efficiency ratio

1

66

%

70

%

70

%

(400)

bps

(382)

bps

FTEs

5

17,817

17,903

17,852

(86)

—

%

(35)

—

%

Per common share

Diluted earnings

0.40

$  

0.35

$  

0.34

$  

0.05

$  

14

%

0.06

$  

18

%

Tangible book value

1

24.52

$

24.03

$

23.04

$

0.49

$  

2

%

1.48

$  

6

%

Average diluted shares outstanding

(in millions)

533.4

539.9

560.2

(6.5)

(1)

%

(26.8)

(5)

%

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”).

1)

These are non-GAAP financial measures. Please see Non-GAAP Reconciliation Tables in the Appendix for an explanation of our use of non-GAAP financial measures and their reconciliation to GAAP.

Restructuring charges and special items

1

3Q15 change from

($s in millions, except per share data)

3Q15

2Q15

3Q14

2Q15

3Q14

Pre-tax total noninterest expense

restructuring charges and special items

—

40

21

(40)

(21)

After-tax total noninterest expense

restructuring charges and special items

—

25

13

(25)

(13)

Pre-tax restructuring charges and

special items

—

(40)

(21)

40

21

After-tax restructuring charges and

special items

—

(25)

(13)

25

13

Diluted EPS impact

—

$          

(0.05)

$     

(0.02)

$     

0.05

$       

0.02

$       

Adjusted 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)

Adjusted return on average tangible common equity.

4)

Adjusted return on average total tangible assets.

5)

Full-time equivalent employees.

Highlights

3Q15 vs. adjusted 2Q15:

Net income increased $5 million from Adjusted 2Q15

as the benefit of revenue growth and lower expense

was partially offset by an increase in the effective tax

rate

Total revenue up $9 million

—

NII up $16 million as 1% average loan growth, an

additional day in the quarter, and improving

investment portfolio and loan yields were muted

by modestly higher deposit costs

—

Noninterest income down $7 million with other

income and service charge and fee growth more

than offset by a reduction in mortgage banking

and capital markets fees from relatively robust

2Q levels

—

Adjusted noninterest expense down slightly

reflecting continued cost discipline

Efficiency ratio improved 68 basis points

Provision expense stable with prior quarter

Tangible book value per share of $24.52 up 2%

3Q15 vs. adjusted 3Q14:

Net income up 9% from Adjusted 3Q14 reflecting

impact of positive operating leverage

Total revenue up $48 million

—

NII up 4% with 5% average earning asset growth

muted by lower yields

—

Noninterest income up 4%

Noninterest expense up 1%

—

Efficiency ratio improved by ~200 bps

Adjusted diluted EPS up 11%

3Q15 change from

$s in millions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Net interest income

856

$   

840

$   

820

$   

16

$      

2

%

36

$      

4

%

Noninterest income

353

360

341

(7)

(2)

12

4

Total revenue

1,209

1,200

1,161

9

1

48

4

Adjusted noninterest expense

1

798

801

789

(3)

—

9

1

Adjusted pre-provision profit

1

411

399

372

12

3

39

10

Provision for credit losses

76

77

77

(1)

(1)

(1)

(1)

Adjusted pretax income

1

335

322

295

13

4

40

14

Adjusted income tax expense

1

115

107

93

8

7

22

24

Adjusted net income

220

$   

215

$   

202

$   

5

$        

2

%

18

$      

9

%

Preferred dividends

7

$        

—

$      

—

$      

7

$        

NM 

7

$        

NM 

Adjusted net income available to

common stockholders

1

213

$   

215

$   

202

$   

(2)

$      

(1)

%

11

$      

5

%

$s in billions

Average interest earning assets

123.0

$

123.2

$

117.2

$

(0.2)

$   

—

%

5.8

$    

5

%

Average deposits

2

101.0

$

98.5

$  

91.7

$  

2.5

$    

2

%

9.3

$    

10

%

Key metrics

Net interest margin

2.76

%

2.72

%

2.77

%

4

bps

(1)

bps

Loan-to-deposit ratio (period-end)

2

96.1

%

96.6

%

97.3

%

(58)

bps

(126)

bps

Adjusted ROTCE

1,3

6.6

%

6.7

%

6.2

%

(7)

bps

38

bps

Adjusted ROTA

1,4

0.7

%

0.7

%

0.7

%

1

bps

2

bps

Adjusted efficiency ratio

1

66

%

67

%

68

%

(68)

bps

(200)

bps

FTEs

5

17,817

17,903

17,852

(86)

—

%

(35)

—

%

Per common share

Adjusted diluted EPS

1

0.40

$  

0.40

$  

0.36

$  

—

$      

—

%

0.04

$  

11

%

Tangible book value

1

24.52

$

24.03

$

23.04

$

0.49

$  

2

%

1.48

$  

6

%

Average diluted shares outstanding

(in millions)

533.4

539.9

560.2

(6.5)

(1)

%

(26.8)

(5)

%

$117B

$119B

$121B

$123B

$123B

$820

$840

$836

$840

$856

3Q14

4Q14

1Q15

2Q15

3Q15

2.77%

2.80%

2.77%

2.72%

2.76%

Net interest income

6

Highlights

Net interest income

$s in millions,

except earning

assets

Average interest-earning assets

Average interest

earning assets

Net interest income

Net interest margin

1)

Includes Interest-bearing cash and due from banks and deposits in banks.

Linked quarter:

NII up $16 million, or 2%

—

Reflects $1.2 billion increase in average loans and

leases and an additional day in the quarter

NIM improved 4 bps to 2.76%

—

Benefitting from initiatives to improve loan yields and

mix and to improve balance sheet efficiency

Prior year quarter:

NII up $36 million, or 4%

—

8% average loan growth, and reduction in pay-fixed

swap costs, partially offset by continued pressure from

the persistent low-rate environment and higher

deposit costs

NIM relatively stable despite continuing impact of the low-

rate environment

$s in billions

3Q14

4Q14

1Q15

2Q15

3Q15

Retail loans

$48.5

$49.8

$50.4

$50.9

$51.6

Commercial loans

41.2

42.3

43.5

44.7

45.2

Investments and cash

1

27.3

26.5

27.1

27.1

25.8

Loans held for sale

0.2

0.2

0.3

0.5

0.5

Total interest-earning assets

$117.2

$118.7

$121.3

$123.2

$123.0

Loan Yields

3.33%

3.34%

3.34%

3.30%

3.32%

Cost of funds

0.45%

0.49%

0.50%

0.52%

0.54%

2.72%

2.76%

0.03%

0.01%

0.01%

(0.01%)

2Q15 NIM%

Reduction in

cash/securities

Investment

portfolio yields

Loan

yields

Deposit

costs

3Q15 NIM%

2.77%

2.76%

0.05%

0.04%

(0.01%)

(0.06%)

(0.03%)

3Q14 NIM%

Reduction in

cash/securities

Investment

portfolio yields/

pay-fixed swap

run off

Loan

yields

Deposit

costs

Borrowing

costs

3Q15 NIM%

Net interest margin

NIM walk 3Q14 to 3Q15

NIM walk 2Q15 to 3Q15

7

$353

$360

$341

3Q15

2Q15

3Q14

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

Noninterest income

Linked quarter:

Noninterest income down $7 million as

growth in other income and service

charges and fees was more than offset by

reductions in mortgage banking and

capital markets fees from relatively

robust 2Q levels as well as lower

securities gains

—

Mortgage banking fees down $12

million driven by an $8 million

decrease in MSR valuation as well as

lower origination volume and sale

gains

—

Other income up $15 million

given

an

$8 million branch real estate gain

—

Securities gains decreased $7 million

Prior year quarter:

Noninterest income up $12 million, or 4%

—

Growth in other income, card fees,

trust & investment services fees and 

service charges and fees

—

More muted results in mortgage

banking, capital markets and FX &

trade finance fees

8

Highlights

1)

Other income includes bank owned life insurance and other income.

$s in millions

1

3Q15 change from

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Service charges and fees

145

$    

139

$    

144

$    

6

$        

4

%

1

$        

1

%

Card fees

60

60

58

—

—

2

3

Trust & investment services fees

41

41

39

—

—

2

5

Mortgage banking fees

18

30

21

(12)

(40)

(3)

(14)

Capital markets fees

21

30

22

(9)

(30)

(1)

(5)

FX & trade finance fees

22

22

26

—

—

(4)

(15)

Securities gains, net

2

9

2

(7)

(78)

—

—

Other income

1

44

29

29

15

52

15

52

Noninterest income

353

$    

360

$    

341

$    

(7)

$       

(2)

%

12

$      

4

%

$798

$801

$789

66%

67%

68%

3Q15

2Q15

3Q14

Adjusted salary and benefits

Adjusted occupancy & equip

Adjusted all other

Adjusted efficiency ratio

Adjusted noninterest expense –

excluding restructuring charges and special items

1

3Q15 vs. Adjusted 2Q15:

Noninterest expense down slightly relative

to Adjusted 2Q15 levels, reflecting

continued strong cost discipline

—

Reduction in equipment expense, other

expense, and amortization of software

was partially offset by an increase in

outside services from unusually low

second quarter levels

—

FTEs down 86 reflecting continuing

focus on efficiency

3Q15 vs. Adjusted 3Q14:

Noninterest expense increased

$9 million from Adjusted 3Q14 levels

—

Lower salaries and benefits and

amortization of software was more than

offset by an increase in other expense,

equipment expense and outside services

—

FTEs relatively stable as efficiency

initiatives more than offset net

investments to drive growth and

enhance operational effectiveness,

including increased regulatory-driven

staffing requirements

9

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.

.

1

1

Full-time equivalents (FTEs)

17,817

17,903

17,852

1

3Q15 change from

$s in millions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Adjusted salaries and benefits

1

404

$    

405

$    

409

$       

(1)

$       

—

%

(5)

$        

(1)

%

Adjusted occupancy

1

75

75

75

—

—

—

—

Adjusted equipment expense

1

62

65

58

(3)

(5)

4

7

Adjusted outside services

1

89

83

87

6

7

2

2

Adjusted amortization of software

1

35

37

38

(2)

(5)

(3)

(8)

Adjusted other expense

1

133

136

122

(3)

(2)

11

9

Adjusted noninterest expense

1

798

$    

801

$    

789

$       

(3)

$       

—

%

9

$         

1

%

Restructuring charges and special items

—

40

21

(40)

(100)

(21)

(100)

Total noninterest expense

798

$    

841

$    

810

$       

(43)

$    

(5)

%

(12)

$     

(1)

%

7%

30%

10%

16%

11%

5%

21%

51%

39%

10%

Consolidated average balance sheet

Linked quarter:

Total earning assets stable with prior quarter

—

Commercial loans up $478 million driven by

strength in Commercial Real Estate,

Franchise Finance and Corporate Finance

—

Retail loans up $707 million driven by

growth in auto, mortgage, and student

Total deposits increased 2%

—

Growth focused on commercial

relationships and consumer money market

Prior year quarter:

Total earning assets up 5%

—

Retail loans up 7% driven by growth in auto,

mortgage and student

—

Commercial loans up 10% driven by growth

in Commercial Real Estate, Industry

Verticals, Corporate Finance, Franchise

Finance, and Mid-Corporate

Total deposits up $9.3 billion, or 10%, reflecting

strength in money-market, term deposits and

checking with interest

Borrowed funds down $3.0 billion as reductions

in FHLB advances and repos were partially

offset by sub-debt issuances tied to our capital

exchange transactions, as well as senior debt

borrowings to enhance LCR

10

Highlights

$123.0 billion

Interest-earning assets

$113.0 billion

Deposits/borrowed funds

Total

Retail

42%

Total

Commercial

37%

Note: Loan portfolio trends reflect non-core portfolio impact not included in segment results on pages 11 & 12.

1)

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

CRE

Other

Commercial

Residential

mortgage

Total home

equity

Automobile

Other

Retail

Investments

and

interest-bearing

deposits

Retail /

Personal

Commercial/

Municipal/

Wholesale

Borrowed

funds

3Q15 change from

$s in billions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Investments and interest bearing

deposits

25.8

$  

27.1

$  

27.3

$  

(1.4)

$   

(5)

%

(1.6)

$   

(6)

%

Total commercial loans

45.2

44.7

41.2

0.5

1

4.0

10

Total retail loans

51.6

50.9

48.5

0.7

1

3.2

7

Total loans and leases

96.8

95.6

89.7

1.2

1

7.1

8

Loans held for sale

0.5

0.5

0.2

—

—

0.3

NM

Total interest-earning assets

123.0

123.2

117.2

(0.2)

—

5.8

5

Total noninterest-earning assets

12.1

12.3

11.5

(0.2)

(2)

0.6

5

Total assets

135.1

$

135.5

$

128.7

$

(0.4)

$   

—

6.4

$     

5

Low-cost core deposits

1

51.7

51.1

48.7

0.7

1

3.0

6

Money market deposits

36.5

34.9

32.4

1.6

5

4.2

13

Term deposits

12.7

12.6

10.6

0.2

1

2.1

20

Total deposits

101.0

$

98.5

$  

91.7

$  

2.5

$     

2

9.3

$     

10

Total borrowed funds

12.0

14.8

15.0

(2.8)

(19)

(3.0)

(20)

Total liabilities

115.6

$

115.9

$

109.3

$

(0.3)

$   

—

6.3

$     

6

Total stockholders' equity

19.5

19.6

19.4

(0.1)

(1)

0.1

—

Total liabilities and equity

135.1

$

135.5

$

128.7

$

(0.4)

$   

—

%

6.4

$     

5

%

Yields

3.67%

3.68%

3.72%

3.68%

3.69%

$9.9

$10.6

$10.9

$11.1

$11.6

$19.1

$18.8

$18.4

$18.0

$17.6

$11.4

$12.4

$12.9

$13.5

$13.8

$1.6

$1.8

$2.3

$2.7

$3.2

$3.0

$3.0

$3.1

$3.1

$3.0

$2.7

$2.6

$2.5

$2.3

$2.4

$47.7B

$49.2B

$50.1B

$50.7B

$51.6B

3Q14

4Q14

1Q15

2Q15

3Q15

Mortgage

Home Equity

Auto

Student

Business Banking

Other

Consumer Banking average loans and leases

11

1)

Other includes Credit Card, RV, Marine, Other.

Average loans and leases

$s in billions

1

Linked quarter:

Average loans increased $863 million, or 2%

Consumer loan yields up 1 basis point reflecting

continued improvement in mix

Prior year quarter:

Average loans up $3.9 billion largely as growth of

$2.4 billion in auto, $1.7 billion in mortgages and

$1.6 billion in student was partially offset by $1.5

billion lower home equity outstandings

Loan yields up modestly despite the continued

pressure from the low-rate environment

Recent developments:

Mortgage originations of $1.6 billion in 3Q15,

up $38 million QoQ

and $543 million YoY

Originated ~$60 million of new installment credit

loans

Highlights

Yields

2.61%

2.62%

2.57%

2.56%

2.57%

$5.9

$6.0

$6.2

$6.4

$6.2

$2.1

$2.5

$2.9

$3.0

$3.0

$2.7

$2.8

$2.9

$3.1

$3.2

$11.8

$11.7

$12.0

$12.2

$12.0

$6.1

$6.3

$6.1

$6.1

$6.1

$7.0

$7.2

$7.4

$7.7

$8.2

$2.2

$2.4

$2.6

$2.8

$3.1

$37.8B

$38.9B

$40.1B

$41.3B

$41.8B

3Q14

4Q14

1Q15

2Q15

3Q15

Mid-Corporate

Industry Verticals

Franchise Finance

Middle Market

Asset Finance

Commercial Real Estate

Other

Commercial Banking average loans and leases

Linked quarter:

Average loans up $524 million, or 1%, with solid

growth in CRE and Franchise Finance

Loan yields remained relatively stable despite the

continued effect of the low-rate environment

Prior year quarter:

Average loans up $4.1 billion on strength in

Commercial Real Estate, Industry Verticals, Mid-

Corporate, Franchise Finance and Corporate Finance

Loan yields down 4 bps largely reflecting the

pronounced effect of the continued low-rate

environment in 2015

12

1)

Other

includes

Business

Capital,

Govt

&

Professional

Banking,

Corporate

Finance

&

Global

Markets,

Treasury

Solutions,

Corporate

and

Commercial

Banking

Admin.

$s in billions

1

Highlights

Average loans and leases

$40.1

$40.9

$41.7

$43.0

$44.6

$25.8

$26.3

$25.8

$26.4

$26.8

$15.2

$15.7

$16.0

$16.6

$16.9

$10.6

$11.9

$12.2

$12.6

$12.7

$6.3

$5.1

$4.6

$4.4

$2.9

$6.7

$6.1

$7.0

$6.5

$5.1

$2.0

$2.8

$3.9

$3.9

$4.1

$106.7B

$108.8B

$111.2B

$113.3B

$113.0B

3Q14

4Q14

1Q15

2Q15

3Q15

Money market & savings

DDA

Checking with interest

Term & time deposits

Total fed funds & repo

Short-term borrowed funds

Total long-term borrowings

Average funding and cost of funds

Linked quarter:

Average interest-bearing deposits increased

$2.1 billion, or 3%, with particular strength in

money market

—

Total deposit costs of 0.25% increased 1 bp, as

the pace of growth slowed reflecting

enhanced pricing strategies

DDA up $335 million, interest checking up $373

million, money market & savings up $1.6 billion,

and term deposits up $154 million

Continued progress in repositioning liabilities

structure to better align with peers

Prior year quarter:

Average interest-bearing deposits increased $8.4

billion, or 13%, on strength across all categories

—

Total deposit cost of funds increased 7 bps

13

Highlights

Average interest-bearing liabilities and DDA

$s in billions

Deposit cost of funds

0.18%

0.20%

0.22%

0.24%

0.25%

Total cost of funds

0.45%

0.49%

0.50%

0.52%

0.54%

Summary of progress on strategic initiatives

14

Initiative

3Q15

Status

Commentary

Reenergize household growth

3Q15 household growth of 2% and deposits up 7% from 3Q14.  New customer cross-sell rate

increased to 3.26 vs. 3.05 in 3Q14.

Expand mortgage sales force

LOs up 81, or 22%, and origination volume up 53% from 3Q14.

Continued competitive pressure around attracting and retaining LOs with strong conforming

orientation.

Grow Auto

3Q15 organic origination yields of 3.51%, up 41 bps from 3Q14.

Grow Student

Continued strong new refi

product originations of $262 million in 3Q15.

Expand Business Banking

Relationship managers up 13 from 2Q15 and 39 since 3Q14. Pricing improvements gaining

traction with portfolio yields up 6 bps vs. 3Q14.

Expand Wealth sales force

Added 42 wealth managers and 151 licensed bankers over the past year; wealth managers

relatively flat with 2Q15. 

Build out Mid-Corp & verticals

Mid-Corp and specialty vertical average loans up from 3Q14 by 6% and 42%, respectively.

Continue development of

Capital Markets

Fee income declined 5% from 3Q14 given weaker market conditions while market share

improved in traditional middle market & sponsor-led deals.

Build out Treasury Solutions

Fees up 7%

in the quarter compared to 3Q14 with strong contributions from cash

management and commercial card.

Grow Franchise Finance

Strong

portfolio growth with average balances up 21% from 3Q14.

Core: Middle Market

Average

loans up 2% YoY, with origination yields in 3Q15 expanding 33bps compared to 3Q14,

reflecting improved pricing discipline.

Core: CRE

CRE average loans up 17% to $8.2 billion from 3Q14.

Core: Asset Finance

Portfolio

balances flat compared to 3Q14.  New business initiatives targeting areas with

attractive risk/return metrics underway to mitigate reduced RBS referrals.

Top I

On-track to largely complete $200 million in cost savings ideas by YE15.

Top II

Starting

to

see

benefits

from

pricing

and

operations

transformation

initiatives.

Revenue

enhancement

initiatives

building

momentum,

but

are

earlier

in

evolution.

Balance Sheet Optimization

Initiatives

in flight to focus balance sheet on most productive assets and lower deposit costs.

Recent efforts have begun to arrest NIM decline.

Overall credit quality remains strong. NPLs declined by $16 million or

2% QoQ

and 4% YoY

Net charge-offs were $75 million, or 0.31% of average loans and leases

compared with 0.33% in 2Q15 and 0.38% in 3Q14

Provision for credit losses of $76 million in third quarter 2015 remained stable

with second quarter 2015

Allowance as a % of total loans and leases was stable, 1.23% vs. 1.24% in 2Q15

NPLs to total loans improved to 1.06% vs. 1.09% in 2Q15

—

Allowance coverage for NPLs increased to 116% vs. 114% in 2Q15

$4

$2

($22)

$7

$5

$75

$72

$69

$68

$66

$9

$6

$7

$3

$4

$88

$80

$54

$78

$75

0.38%

0.35%

0.23%

0.33%

0.31%

3Q14

4Q14

1Q15

2Q15

3Q15

Commercial

Retail

SBO

Net c/o ratio

$88

$80

$54

$78

$75

$77

$72

$58

$77

$76

$1.1B

$1.1B

$1.1B

$1.1B

$1.0B

3Q14

4Q14

1Q15

2Q15

3Q15

Net charge-offs

Provision

NPLs

$1,201

$1,195

$1,202

$1,201

$1,201

111%

109%

106%

114%

116%

3Q14

4Q14

1Q15

2Q15

3Q15

Allowance for loan and lease losses

Coverage Ratio

Strong credit quality trends continue

15

Highlights

Net charge-offs (recoveries)

Provision for credit losses, charge-offs, NPLs

Allowance for loan and lease losses

$s in millions

1

for credit

losses

1)

Allowance for loan and lease losses to nonperforming loans and leases.

16.1%

15.8%

15.5%

15.3%

15.4%

12.9%

12.4%

12.2%

11.8%

11.8%

3Q14

4Q14

1Q15

2Q15

3Q15

Total capital ratio

Common equity tier 1 ratio

97%

98%

96%

97%

96%

3Q14

4Q14

1Q15

2Q15

3Q15

as of

$s in billions (period-end)

3Q14

4Q14

1Q15

2Q15

3Q15

Basel I/III transitional basis

1,2

Basel I

Basel III

Common equity tier 1 capital

13.3

$     

13.2

$     

13.4

$     

13.3

$     

13.2

$     

Risk-weighted assets

103.2

$   

106.0

$   

109.8

$   

112.1

$   

112.3

$   

Common equity tier 1 ratio

12.9 %

12.4 %

12.2 %

11.8 %

11.8 %

Total capital ratio

16.1 %

15.8 %

15.5 %

15.3 %

15.4 %

Basel III fully phased-in

1,3

Common equity tier 1 ratio

12.5%

12.1%

12.1%

11.8%

11.7%

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 %

Capital and liquidity remain strong

16

Highlights

1)

Current reporting period regulatory capital ratios are preliminary.

2)

Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2018. Ratios also reflect the required US

Standardized methodology for calculating RWAs, effective January 1, 2015.

3)

Prior

to

Basel

III

becoming

effective

January

1,

2015

this

was

a

Non-GAAP

financial

measure.

See

important

information

on

use

of

Non-GAAP

items

in

the

Appendix.

4)

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.

5)

Period-end Includes held for sale.

Loan-to-deposit ratio

5

Capital ratio trend

1,2

1,2

Capital levels remain above regional peers

3Q15 Basel III common equity tier 1 ratio

(transitional basis) down approximately

7 basis points from 2Q15

—

Net income: ~20 bps increase

—

RWA growth: ~2 bps decrease

—

Share repurchase: ~22 bps decrease

—

Dividends & other: ~3 bps decrease

LDR remained relatively stable at 96%

Already meet initial LCR requirement

4

4Q15 outlook

17

4Q15 expectations vs. 3Q15

Net interest

income, net

interest margin

Operating leverage,

efficiency ratio

Credit trends

and costs

Average loan growth rate of ~1.5%

Net interest margin broadly stable

Positive operating leverage expected to continue; anticipate fee income growth

Modest expense growth reflecting higher depreciation & software amortization, seasonality

Expect stable asset quality trends

Provision expense expected to increase given build associated with loan growth

Capital, liquidity

and funding

Quarter-end Basel III common equity Tier 1 ratio ~11.7%

Loan-to-deposit ratio 97-98%

Key messages

18

Continue to execute well on our broad agenda

—

Good clean quarter with positive operating leverage, rebound in NIM

—

Delivering for all stakeholders

—

Adding top talent to executive team

New initiatives tracking to expectations

Asset sensitivity continues to be stable

Asset quality, capital ratios, and liquidity position remain strong

Appendix

19

*******************************************

$372

$411

3Q14

3Q15

$90.7

$97.4

3Q14

3Q15

0.66%

0.68%

3Q14

3Q15

$202

$220

$0.36

$0.40

3Q14

3Q15

6.2%

6.6%

3Q14

3Q15

Quarter over quarter results

20

Adjusted pre-provision profit

1

$s in millions

Adjusted return on average

tangible assets

1

Adjusted net income

1

$s in millions

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 held for sale.

Adjusted return on average

tangible common equity

1

38 bps

2 bps

9%

10%

Period-end loans

2

$s in billions

Period-end deposits

$s in billions

7%

11%

Adjusted Diluted EPS

1

$101.9

9%

$93.5

3Q14

3Q15

$399

$411

2Q15

3Q15

11.8%

11.8%

2Q15

3Q15

0.67%

0.68%

2Q15

3Q15

$215

$220

$0.40

$0.40

2Q15

3Q15

10.4%

10.4%

2Q15

3Q15

6.7%

6.6%

2Q15

3Q15

Linked quarter results

21

Adjusted pre-provision profit

1

$s in millions

Adjusted return on average

tangible assets

1

Adjusted net income

1

$s in millions

Adjusted return on average

tangible common equity

1

Tier 1 leverage ratio

2

7 bps

1 bps

unchanged

2%

3%

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.

unchanged

Adjusted Diluted EPS

1

Basel III common equity

tier 1 capital ratio

2

unchanged

Consumer Banking segment

22

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.

Highlights

Linked quarter:

Net income up $2 million, or 3%

Net interest income up $12 million, driven by loan

growth and one additional day in the quarter, partially

offset by higher deposit costs

—

Average loans up 2% and average deposits up 1%

Noninterest income up $5 million as growth in other

income, service charges and fees, and trust &

investment services fees was partially offset by lower

mortgage banking fees

—

Results include $8 million branch real estate sale

gain

—

Mortgage banking fees down $12 million driven by

an $8 million decrease in mortgage servicing rights

valuation; originations up 2%

Noninterest expense increased $10 million reflecting

increased outside services and salary and benefits

expense tied to growth initiatives

Prior year quarter:

Net income up $14 million, or 26%

Total revenue up $33 million on strong loan growth and

momentum in mortgage, household growth and wealth

—

Average loans up $4.0 billion and average deposits

up $4.9 million

Noninterest expense increased $14 million, as higher

advertising and our continued investment in the

business to drive further growth was partially offset by

our focus on improving efficiency

3Q15 change from

$s in millions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Net interest income

556

$    

544

$    

532

$    

12

$      

2

%

24

$      

5

%

Noninterest income

235

230

226

5

2

9

4

Total revenue

791

774

758

17

2

33

4

Noninterest expense

623

613

609

10

2

14

2

Pre-provision profit

168

161

149

7

4

19

13

Provision for credit losses

64

60

66

4

7

(2)

(3)

Income before income tax

expense

104

101

83

3

3

21

25

Income tax expense

36

35

29

1

3

7

24

Net income

68

$      

66

$      

54

$      

2

$        

3

%

14

$      

26

%

Average balances

$s in billions

Total loans and leases

51.9

$  

51.0

$  

47.8

$  

0.9

$     

2

%

4.0

$     

8

%

Total deposits

70.5

$  

70.0

$  

65.6

$  

0.6

$     

1

%

4.9

$     

7

%

Mortgage Banking metrics

Originations

1,561

$

1,523

$

1,018

$

38

$      

2

%

543

$    

53

%

Origination Pipeline

2,152

1,897

973

255

13

%

1,179

121

%

Gain on sale of secondary

originations

1.80%

2.18%

1.69%

(38)

bps

11

bps

Performance metrics

ROTCE

1,3

5.7%

5.7%

4.6%

1

bps

110

bps

Efficiency ratio

1

79%

79%

80%

(53)

bps

(170)

bps

Commercial Banking segment

23

1)

Non-GAAP item. 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:

Commercial Banking net income increased $10 million

Total revenue up $5 million, net interest income up $13

million on an average 1% increase in loans and 8% increase

in deposits

—

Strength in Commercial Real Estate, Franchise Finance,

Corporate Finance

—

Average deposits up $1.9 billion, or 8%

Noninterest income decreased $8 million due to a decrease

in capital markets fees from strong second quarter levels

Noninterest expense decreased $6 million, or 3%, largely

reflecting lower regulatory costs and equipment expense,

partially offset by increased outside services and insurance

costs

Prior year quarter:

Net income increased $6 million, as 4% revenue growth

was partially offset by increased noninterest expense and

a $3 million increase in provision for credit losses.

Net interest income up $29 million on an average           

$4.2 billion increase in loans and $3.6 billion increase in

deposits

Noninterest income down $4 million as strength in service

charges and other fees, card fees, and interest rate

products was offset by a reduction in foreign exchange and

trade finance fees, capital market fees and leasing income

Noninterest expense up $13 million driven by increased

regulatory costs, salaries and benefits tied to growth

initiatives and outside services expense

Highlights

3Q15 change from

$s in millions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Net interest income

299

$    

286

$    

270

$    

13

$      

5

%

29

$      

11

%

Noninterest income

100

108

104

(8)

(7)

(4)

(4)

Total revenue

399

394

374

5

1

25

7

Noninterest expense

175

181

162

(6)

(3)

13

8

Pre-provision profit

224

213

212

11

5

12

6

Provision for credit losses

3

7

—

(4)

(57)

3

—

Income before income tax

expense

221

206

212

15

7

9

4

Income tax expense

76

71

73

5

7

3

4

Net income

145

$    

135

$    

139

$    

10

$      

7

%

6

$        

4

%

Average balances

$s in billions

Total loans and leases

2

42.0

$  

41.5

$  

37.8

$  

0.5

$     

1

%

4.2

$     

11

%

Total deposits

24.6

$  

22.7

$  

21.0

$  

1.9

$     

8

%

3.6

$     

17

%

Performance metrics

ROTCE

1,3

12.2%

11.7%

13.1%

55

bps

(86)

bps

Efficiency ratio

1

44%

46%

43%

(232)

bps

40

bps

3Q15 change from

$s in millions

3Q15

2Q15

3Q14

2Q15

3Q14

$

%

$

%

Net interest income

1

$         

10

$       

18

$       

(9)

$        

(90)

%

(17)

$     

(94)

%

Noninterest income

18

22

11

(4)

(18)

7

64

Total revenue

19

32

29

(13)

(41)

(10)

(34)

Noninterest expense

—

47

39

(47)

(100)

(39)

(100)

Pre-provision profit (loss)

19

(15)

(10)

34

227

29

290

Provision for credit losses

9

10

11

(1)

(10)

(2)

(18)

Income (loss) before income

tax expense (benefit)

10

(25)

(21)

35

140

31

148

Income tax expense (benefit)

3

(14)

(17)

17

121

20

118

Net income (loss)

7

$         

(11)

$     

(4)

$        

18

$       

164

%

11

$       

275

%

Average balances

$s in billions

Total loans and leases

3.4

$      

3.6

$      

4.2

$      

(0.2)

$    

(6)

%

(0.9)

$    

(20)

%

Total deposits

5.9

$      

5.9

$      

5.1

$      

—

$       

—

%

0.8

$      

15

%

Other

24

1)

Includes held for sale.

Linked quarter:

Other recorded net income up $18 million, as lower total

revenue was more than offset by a $40 million decrease in

restructuring charges and special items

Net interest income decreased $9 million, driven by lower

non-core balances

Noninterest income decreased $4 million, reflecting lower

securities gains

Noninterest expense down $47 million, driven by a

decrease in restructuring charges and special items

Provision for credit losses decreased $1 million

—

Reflects a $1 million reserve build versus a $1 million

release in the prior quarter

Prior year quarter:

Net income up $11 million, as lower total revenue was

more than offset by lower expenses and restructuring

charges and special items

Net interest income decreased $17 million, as lower swap

costs were offset by an increase in wholesale funding costs

and lower non-core loans

Noninterest income up $7 million, reflecting the effect of

and accounting change related to the low-income housing

portfolio, offset by income tax expense

Noninterest expense down $39 million given lower

restructuring charges and special items, and lower

incentives

Provision for credit losses decreased $2 million

—

Reflects a $12 million decrease in non-core charge-offs

Highlights

Restructuring charges and special items

25

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”).

1)

These are non-GAAP financial measures. Please see Non-GAAP Reconciliation Tables in the Appendix for an explanation of our use of non-GAAP financial measures and their reconciliation to GAAP.

as of and for the three months ended

Restructuring charges and special items

1

($s in millions, except per share data)

pre-tax

after-tax

pre-tax

after-tax

pre-tax

after-tax

Noninterest expense restructuring charges

and special items:

Salaries and employee benefits

—

—

6

4

(6)

(4)

Outside services

—

—

16

10

(16)

(10)

Occupancy 

—

—

15

9

(15)

(9)

Equipment expense

—

—

—

—

—

—

Other operating expense

—

—

3

2

(3)

(2)

Total noninterest expense restructuring

charges and special items

—

$         

—

$         

40

$         

25

$         

(40)

$        

(25)

$        

Net restructuring charges and special items

—

$         

—

$         

(40)

$        

(25)

$        

40

$         

25

$         

Diluted EPS impact

—

$         

(0.05)

$    

0.05

$      

September 30, 2015

June 30, 2015

increase/decrease

Loan Reconciliation

26

Average balances

$s in millions

1)

Primarily Treasury Solutions (Credit cards).

2)

Primarily Business Banking.

3Q15 change from

3Q15

2Q15

3Q14

Consumer Banking Segment

47,848

$      

49,351

$      

50,260

$      

51,024

$      

51,886

$      

862

$    

2

%

4,038

$ 

8

%

Add:

Non-core loans

2,932

2,801

2,667

2,517

2,358

(159)

(6)

(574)

(20)

Retail loans in Commercial Banking

(1)

134

145

143

161

160

(1)

(1)

26

19

Other

737

681

629

586

540

(46)

(8)

(197)

(27)

Less:

Commercial loans in Consumer Banking

(2)

3,022

3,017

3,056

3,096

3,045

(51)

(2)

23

1

LHFS

170

179

197

282

282

—

—

112

66

Total Retail loans

48,459

$      

49,782

$      

50,446

$      

50,910

$      

51,617

$      

707

$    

1

3,158

$ 

7

%

Commercial Banking Segment

37,787

$      

38,926

$      

40,241

$      

41,467

$      

41,993

$      

526

$    

1

%

4,206

$ 

11

%

Add:

Commercial loans in Consumer Banking

(2)

3,022

3,017

3,056

3,096

3,045

(51)

(2)

23

1

Non-core loans

353

309

266

230

202

(28)

(12)

(151)

(43)

CRA

171

182

198

212

241

29

14

70

41

Other

25

28

24

23

27

4

17

2

8

Less:

Retail loans in Commercial Banking

(1)

134

145

143

161

160

(1)

(1)

26

19

LHFS

33

54

136

171

174

3

2

141

427

Total Commercial loans

41,191

$      

42,263

$      

43,506

$      

44,696

$      

45,174

$      

478

$    

1

3,983

$ 

10

%

3Q14

4Q14

1Q15

2Q15

$3.2B

$3.0B

$2.9B

$2.7B

$2.5B

3Q14

4Q14

1Q15

2Q15

3Q15

Retail

Commercial

SBO

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

1

SBO balances by FICO

2

SBO balances by LTV

Top

5

SBO

balances

by

state

1

Non-core period-end loans

SBO balances by product

SBO Lien Position

1st

Lien

2nd

Lien

< 70

80-89

70-79

90-99

100-119

120+

< 620

620-679

680-719

720-759

760+

HE Loan

HELOC

27

$s in millions

1

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

2

FICO scores updated quarterly.

Non-GAAP Financial Measures

28

This

document

contains

non-GAAP

financial

measures.

The

table

below

presents

reconciliations

of

certain

non-GAAP

measures.

These

reconciliations

exclude

restructuring

charges

and/or

special

items,

which

are

usually

included,

where

applicable,

in

the

financial

results

presented

in

accordance

with

GAAP.

Restructuring

charges

and

special

items

include

expenses

related

to

our

efforts

to

improve

processes

and

enhance

efficiencies,

as

well

as

rebranding,

separation

from

RBS

and

regulatory

expenses.

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”,

“net

income

available

to

common

stockholders”,

“salaries

and

employee

benefits”,

“outside

services”,

“occupancy”,

“equipment

expense”,

“amortization

of

software”,

“other

operating

expense”,

“net

income

per

average

common

share”,

“return

of

average

common

equity”

and

“return

on

average

total

assets”.

In

addition,

we

present

computations

for

"tangible

book

value

per

common

share",

“return

on

average

tangible

common

equity”,

“return

on

average

total

tangible

assets”

and

“efficiency

ratio”

as

part

of

our

non-GAAP

measures.

Additionally,

"pro

forma

Basel

III

fully

phased-in

common

equity

tier

1

capital"

computations

for

periods

prior

to

first

quarter

2015

are

presented

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

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

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

29

(Excluding restructuring charges and special items)

$s in millions, except per share data

3Q15

2Q15

1Q15

4Q14

3Q14

2015

2014

Noninterest income, excluding special items:

Noninterest income (GAAP)

A

$353

$360

$347

$339

$341

$1,060

$1,339

Less: Special items - Chicago gain

—

—

—

—

—

—

288

Noninterest income, excluding special items (non-GAAP)

B

$353

$360

$347

$339

$341

$1,060

$1,051

Total revenue, excluding special items:

Total revenue (GAAP)

C

$1,209

$1,200

$1,183

$1,179

$1,161

$3,592

$3,800

Less: Special items - Chicago gain

—

—

—

—

—

—

288

Total revenue, excluding special items (non-GAAP)

D

$1,209

$1,200

$1,183

$1,179

$1,161

$3,592

$3,512

Noninterest expense, excluding restructuring charges and special items:

Noninterest expense (GAAP)

E

$798

$841

$810

$824

$810

$2,449

$2,568

Less: Restructuring charges and special items

MM

—

40 

10 

33 

21 

50 

136

Noninterest expense, excluding restructuring charges and special items (non-GAAP)

F

$798

$801

$800

$791

$789

$2,399

$2,432

Net income, excluding restructuring charges and special items:

Net income (GAAP)

G

$220

$190

$209

$197

$189

$619

$668

Add: Restructuring charges and special items, net of income tax expense (benefit)

—

25 

6 

20 

13 

31 

(95)

Net income, excluding restructuring charges and special items (non-GAAP)

H

$220

$215

$215

$217

$202

$650

$573

Net income available to common stockholders (GAAP), excluding restructuring charges and special

items

Net income available to common stockholders (GAAP)

I

$213

$190

$209

$197

$189

$612

$668

Add: Restructuring charges and special items, net of income tax expense (benefit)

—

25 

6 

20 

13 

31 

(95)

Net income available to common stockholders, excluding restructuring charges and special items

(non-GAAP)

J

$213

$215

$215

$217

$202

$643

$573

Return on average common equity, excluding restructuring charges and special items:

Average common equity (GAAP)

K

$19,261

$19,391

$19,407

$19,209

$19,411

$19,352

$19,463

Return on average common equity, excluding restructuring charges and special items (non-GAAP)

J/K

4.40%

4.45 %

4.49 %

4.48 %

4.14 %

4.45 %

3.94 %

Return on average tangible common equity and return on average tangible common equity,

excluding restructuring charges and special items:

Average common equity (GAAP)

L

$19,261

$19,391

$19,407

$19,209

$19,411

$19,352

$19,463

Less: Average goodwill (GAAP)

6,876 

6,876 

6,876 

6,876 

6,876 

6,876 

6,876

Less: Average other intangibles (GAAP)

4 

5 

5 

6 

6 

5 

7

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

453 

437 

422 

403 

384 

438 

368

Average tangible common equity (non-GAAP)

M

$12,834

$12,947

$12,948

$12,730

$12,913

$12,909

$12,948

Return on average tangible common equity (non-GAAP)

I/M

6.60 %

5.90 %

6.53 %

6.12 %

5.81 %

6.34 %

6.90 %

Return on average tangible common equity, excluding restructuring charges and special items

(non-GAAP)

J/M

6.60 %

6.67 %

6.73 %

6.76 %

6.22 %

6.67 %

5.92 %

Return on average total assets, excluding restructuring charges and special items:

Average total assets (GAAP)

N

$135,103

$135,521

$133,325

$130,671

$128,691

$134,655

$126,598

Return on average total assets, excluding restructuring charges and special items (non-GAAP)

H/N

0.65 %

0.64 %

0.65 %

0.66 %

0.62 %

0.65 %

0.61 %

Return on average total tangible assets and return on average total tangible assets, excluding

restructuring charges and special items:

Average total assets (GAAP)

N

$135,103

$135,521

$133,325

$130,671

$128,691

$134,655

$126,598

Less: Average goodwill (GAAP)

6,876 

6,876 

6,876 

6,876 

6,876 

6,876 

6,876

Less: Average other intangibles (GAAP)

4 

5 

5 

6 

6 

5 

7

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

453 

437 

422 

403 

384 

438 

368

Average tangible assets (non-GAAP)

O

$128,676

$129,077

$126,866

$124,192

$122,193

$128,212

$120,083

Return on average total tangible assets (non-GAAP)

G/O

0.68 %

0.59 %

0.67 %

0.63 %

0.61 %

0.65 %

0.74 %

Return on average total tangible assets, excluding restructuring charges and special items (non-

GAAP)

H/O

0.68 %

0.67 %

0.69 %

0.69 %

0.66 %

0.68 %

0.64 %

FOR THE NINE MONTHS ENDED

SEPTEMBER 30

QUARTERLY TRENDS

Non-GAAP Reconciliation Table

30

(Excluding restructuring charges and special items)

$s in millions, except per share data

3Q15

2Q15

1Q15

4Q14

3Q14

2015

2014

Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:

Net interest income (GAAP)

$856

$840

$836

$840

$820

$2,532

$2,461

Add: Noninterest income (GAAP)

353 

360 

347 

339 

341 

1,060 

1,339

Total revenue (GAAP)

C

$1,209

$1,200

$1,183

$1,179

$1,161

$3,592

$3,800

Efficiency ratio (non-GAAP)

E/C

66.02 %

70.02 %

68.49 %

69.88 %

69.84 %

68.17 %

67.58 %

Efficiency ratio, excluding restructuring charges and special items (non-GAAP)

F/D

66.02 %

66.70%

67.65 %

67.11 %

68.02 %

66.78 %

69.23 %

Tangible book value per common share:

Common shares - at end of period (GAAP)

P

527,636,510

537,149,717

547,490,812

545,884,519

559,998,324

527,636,510

559,998,324

Stockholders' equity (GAAP)

$19,353

$19,339

$19,564

$19,268

$19,383

$19,353

$19,383

Less: Goodwill (GAAP)

6,876 

6,876 

6,876 

6,876 

6,876 

6,876 

6,876

Less: Other intangible assets (GAAP)

3 

4 

5 

6 

6 

3 

6

Add: Deferred tax liabilities related to goodwill (GAAP)

465 

450 

434 

420 

399 

465 

399

Tangible common equity (non-GAAP)

Q

$12,939

$12,909

$13,117

$12,806

$12,900

$12,939

$12,900

Tangible book value per common share (non-GAAP)

Q/P

$24.52

$24.03

$23.96

$23.46

$23.04

$24.52

$23.04

Net income per average common share -  basic and diluted, excluding restructuring charges and

special items:

Average common shares outstanding - basic (GAAP)

R

530,985,255

537,729,248

546,291,363

546,810,009

559,998,324

538,279,222

559,998,324

Average common shares outstanding - diluted (GAAP)

S

533,398,158

539,909,366

549,798,717

550,676,298

560,243,747

540,926,361

560,081,031

Net income available to common stockholders (GAAP)

I

$213

$190

$209

$197

$189

$612

$668

Net income per average common share -  basic (GAAP)

I/R

0.40

0.35

0.38

0.36

0.34

1.14

1.19

Net income per average common share -  diluted (GAAP)

I/S

0.40

0.35

0.38

0.36

0.34

1.13

1.19

Net income available to common stockholders, excluding restructuring charges and special items

(non-GAAP)

J

213 

215 

215 

217 

202 

643 

573

Net income per average common share -  basic, excluding restructuring charges and special items

(non-GAAP)

J/R

0.40

0.40

0.39

0.40

0.36

1.20

1.02

Net income per average common share -  diluted, excluding restructuring charges and special

items (non-GAAP)

J/S

0.40

0.40

0.39

0.39

0.36

1.19

1.02

Pro forma Basel III fully phased-in common equity tier 1 capital ratio¹:

Common equity tier 1 (regulatory)

$13,200

$13,270

$13,360

$13,173

$13,330

Less: Change in DTA and other threshold deductions (GAAP)

2 

3 

3 

(6)

(5)

Pro forma Basel III fully phased-in common equity tier 1 (non-GAAP)

T

$13,198

$13,267

$13,357

$13,179

$13,335

Risk-weighted assets (regulatory general risk weight approach)

$112,277

$112,131

$109,786

$105,964

$103,207

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

243 

247 

242 

2,882 

3,207 

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

U

$112,520

$112,378

$110,028

$108,846

$106,414

Pro forma Basel III fully phased-in common equity tier 1 capital ratio (non-GAAP)¹

T/U

11.7%

11.8%

12.1%

12.1%

12.5%

Salaries and employee benefits, excluding restructuring charges and special items:

Salaries and employee benefits (GAAP)

V

$404

$411

$419

$397

$409

$1,234

$1,281

Less: Restructuring charges and special items

—

6 

(1)

1 

—

5 

43

Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)

W

$404

$405

$420

$396

$409

$1,229

$1,238

FOR THE NINE MONTHS ENDED

SEPTEMBER 30

QUARTERLY TRENDS

1

  Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume 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 Reconciliation Table

31

(Excluding restructuring charges and special items)

$s in millions, except per share data

3Q15

2Q15

1Q15

4Q14

3Q14

2015

2014

Outside services, excluding restructuring charges and special items:

Outside services (GAAP)

X

$89

$99

$79

$106

$106

$267

$314

Less: Restructuring charges and special items

—

16 

8 

18 

19 

24 

60

Outside services, excluding restructuring charges and special items (non-GAAP)

Y

$89

$83

$71

$88

$87

$243

$254

Occupancy, excluding restructuring charges and special items:

Occupancy (GAAP)

X

$75

$90

$80

$81

$77

$245

$245

Less: Restructuring charges and special items

—

15 

2 

5 

2 

17 

11

Occupancy, excluding restructuring charges and special items (non-GAAP)

AA

$75

$75

$78

$76

$75

$228

$234

Equipment expense, excluding restructuring charges and special items:

Equipment expense (GAAP)

BB

$62

$65

$63

$63

$58

$190

$187

Less: Restructuring charges and special items

—

—

1 

1 

—

1 

3

Equipment expense, excluding restructuring charges and special items (non-GAAP)

CC

$62

$65

$62

$62

$58

$189

$184

Amortization of software, excluding restructuring charges and special items:

Amortization of software

DD

$35

$37

$36

$43

$38

$108

$102

Less: Restructuring charges and special items

—

—

—

6 

—

—

—

Amortization of software, excluding restructuring charges and special items (non-GAAP)

EE

$35

$37

$36

$37

$38

$108

$102

Other operating expense, excluding restructuring charges and special items:

Other operating expense (GAAP)

FF

$133

$139

$133

$134

$122

$405

$439

Less: Restructuring charges and special items

—

3 

—

2 

—

3 

19

Other operating expense, excluding restructuring charges and special items (non-GAAP)

GG

$133

$136

$133

$132

$122

$402

$420

Pre-provision profit, excluding restructuring charges and special items:

Total revenue, excluding restructuring charges and special items (non-GAAP)

D

$1,209

$1,200

$1,183

$1,179

$1,161

$3,592

$3,512

Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)

F

798 

801 

800 

791 

789 

2,399 

2,432

Pre-provision profit, excluding restructuring charges and special items (non-GAAP)

HH

$411

$399

$383

$388

$372

$1,193

$1,080

Income before income tax expense (benefit), excluding restructuring charges and special items:

Income before income tax expense (GAAP)

II

$335

$282

$315

$283

$274

$932

$985

Less: Income before income tax expense (benefit) related to restructuring charges and special

items (GAAP)

—

(40)

(10)

(33)

(21)

(50)

152

Income before income tax expense, excluding restructuring charges and special items (non-GAAP)

JJ

$335

$322

$325

$316

$295

$982

$833

Income tax expense, excluding restructuring charges and special items:

Income tax expense (GAAP)

KK

$115

$92

$106

$86

$85

$313

$317

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

—

(15)

(4)

(13)

(8)

(19)

57

Income tax expense, excluding restructuring charges and special items (non-GAAP)

LL

$115

$107

$110

$99

$93

$332

$260

Restructuring charges and special expense items include:

Restructuring charges

$0

$25

$1

$10

$1

$26

$104

Special items

0

15

9

23

20

24

32

Restructuring charges and special expense items

MM

$0

$40

$10

$33

$21

$50

$136

3Q15

2Q15

1Q15

4Q14

3Q14

% Change

% Change

Operating leverage, excluding restructuring charges and special items:

Total revenue, excluding restructuring charges and special items (non-GAAP)

D

$1,209

$1,200

$1,161

0.8%

4.1%

Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)

F

$798

$801

$789

(0.4)%

1.1%

Operating leverage, excluding restructuring charges and special items: (non-GAAP)

NN

1.1%

3.0%

QUARTERLY TRENDS

3Q15 v 2Q15

FOR THE NINE MONTHS ENDED

SEPTEMBER 30

QUARTERLY TRENDS

3Q15 v 3Q14

Non-GAAP Reconciliation Table

32

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

68

145

7

220

66

135

(11)

190

61

147

1

209

Less: Preferred stock dividends

—

—

7

7

—

—

—

—

—

—

—

—

Net income available to common stockholders

B

$68

$145

$—

$213

$66

$135

($11)

$190

$61

$147

$1

$209

Return on average tangible common equity

Average common equity (GAAP)

C

$4,791

$4,722

$9,748

$19,261

$4,681

$4,625

$10,085

$19,391

$4,649

$4,526

$10,232

$19,407

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

4

4

—

—

5

5

—

—

5

5

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

—

—

453

453

—

—

437

437

—

—

422

422

Average tangible common equity (non-GAAP)

D

$4,791

$4,722

$3,321

$12,834

$4,681

$4,625

$3,641

$12,947

$4,649

$4,526

$3,773

$12,948

Return on average tangible common equity (non-GAAP)

B/D

5.67

%

12.24%

NM

6.60

%

5.66

%

11.69%

NM

5.90

%

5.30

%

13.15%

NM

6.53

%

Return on average total tangible assets

Average total assets (GAAP)

E

$53,206

$43,113

$38,784

$135,103

$52,489

$42,617

$40,415

$135,521

$51,602

$41,606

$40,117

$133,325

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

4

4

—

—

5

5

—

—

5

5

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

—

—

453

453

—

—

437

437

—

—

422

422

Average tangible assets (non-GAAP)

F

$53,206

$43,113

$32,357

$128,676

$52,489

$42,617

$33,971

$129,077

$51,602

$41,606

$33,658

$126,866

Return on average total tangible assets (non-GAAP)

A/F

0.51%

1.34%

NM

0.68

%

0.51%

1.27%

NM

0.59

%

0.48

%

1.43%

NM

0.67

%

Efficiency ratio

Noninterest expense (GAAP)

G

$623

$175

$—

$798

$613

$181

$47

$841

$596

$173

$41

$810

Net interest income (GAAP)

556

299

1

856

544

286

10

840

533

276

27

836

Noninterest income (GAAP)

235

100

18

353

230

108

22

360

219

100

28

347

Total revenue

H

$791

$399

$19

$1,209

$774

$394

$32

$1,200

$752

$376

$55

$1,183

Efficiency ratio (non-GAAP)

G/H

78.72

%

43.75

%

NM

66.02

%

79.25

%

46.07

%

NM

70.02

%

79.25

%

46.01%

NM

68.49

%

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

Less: Preferred stock dividends

—

—

—

—

—

—

—

—

Net income available to common stockholders

B

$52

$140

$5

$197

$54

$139

($4)

$189

Return on average tangible common equity

Average common equity (GAAP)

C

$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)

D

$4,756

$4,334

$3,640

$12,730

$4,685

$4,205

$4,023

$12,913

Return on average tangible common equity (non-GAAP)

B/D

4.30

%

12.76%

NM

6.12%

4.57

%

13.10%

NM

5.81%

Return on average total tangible assets

Average total assets (GAAP)

E

$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)

F

$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/F

0.40

%

1.38%

NM

0.63

%

0.44

%

1.42%

NM

0.61%

Efficiency ratio

Noninterest expense (GAAP)

G

$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

H

$754

$394

$31

$1,179

$758

$374

$29

$1,161

Efficiency ratio (non-GAAP)

G/H

81.09%

45.48

%

NM

69.88

%

80.42

%

43.35

%

NM

69.84

%

THREE MONTHS ENDED MAR 31,

2015

2015

2015

2014

2014

THREE MONTHS ENDED SEPT 30,

THREE MONTHS ENDED JUNE 30,

THREE MONTHS ENDED DEC 31,

THREE MONTHS ENDED SEPT 30,

Non-GAAP Reconciliation Table

33

Non-GAAP Reconciliation -

Segments

$s in millions

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Net income (loss) (GAAP)

A

$195

$427

($3)

$619

$130

$421

$117

$668

Less: Preferred stock dividends

—

—

7

7

—

—

—

—

Net income available to common stockholders

B

$195

$427

($10)

$612

$130

$421

$117

$668

Return on average tangible common equity

Average common equity (GAAP)

C

$4,708

$4,625

$10,019

$19,352

$4,635

$4,120

$10,708

$19,463

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

5

5

—

—

7

7

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

—

—

438

438

—

—

368

368

Average tangible common equity (non-GAAP)

D

$4,708

$4,625

$3,576

$12,909

$4,635

$4,120

$4,193

$12,948

Return on average tangible common equity (non-GAAP)

B/D

5.55%

12.35%

NM

6.34

%

3.76

%

13.67

%

NM

6.90

%

Return on average total tangible assets

Average total assets (GAAP)

E

$52,438

$42,451

$39,766

$134,655

$48,398

$37,951

$40,249

$126,598

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

5

5

—

—

7

7

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

—

—

438

438

—

—

368

368

Average tangible assets (non-GAAP)

F

$52,438

$42,451

$33,323

$128,212

$48,398

$37,951

$33,734

$120,083

Return on average total tangible assets (non-GAAP)

A/F

0.50%

1.35

%

NM

0.65

%

0.36

%

1.48

%

NM

0.74

%

Efficiency ratio

Noninterest expense (GAAP)

G

$1,832

$529

$88

$2,449

$1,902

$472

$194

$2,568

Net interest income (GAAP)

1,633

861

38

2,532

1,615

790

56

2,461

Noninterest income (GAAP)

684

308

68

1,060

681

318

340

1,339

Total revenue

H

$2,317

$1,169

$106

$3,592

$2,296

$1,108

$396

$3,800

Efficiency ratio (non-GAAP)

G/H

79.07%

45.26%

NM

68.17

%

82.82%

42.62

%

NM

67.58%

FOR THE NINE MONTHS ENDED SEPTEMBER 30,

2015

2014

34

*

*

*

*

*

*

*

*

*

*

********************

EX-99.3

Exhibit 99.3

Citizens Financial Group, Inc.

Financial Supplement

Third Quarter 2015

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																								FOR THE NINE MONTHS ENDED SEPT 30,
													3Q15 Change																	2015 Change
	3Q15		2Q15			1Q15		4Q14		3Q14			2Q15						3Q14						2015			2014		2014
													$			%			$			%								$			%
SELECTED OPERATING DATA
Total revenue	$	1,209	$	1,200		$	1,183	$	1,179	$	1,161		$	9			1	%	$	48			4	%	$	3,592		$	3,800	($	208	)		(5	%)
Noninterest expense		798		841			810		824		810			(43	)		(5	)		(12	)		(1	)		2,449			2,568		(119	)		(5	)
Profit before provision for credit losses		411		359			373		355		351			52			14			60			17			1,143			1,232		(89	)		(7	)
Provision for credit losses		76		77			58		72		77			(1	)		(1	)		(1	)		(1	)		211			247		(36	)		(15	)
NET INCOME		220		190			209		197		189			30			16			31			16			619			668		(49	)		(7	)
Net income, excluding restructuring charges and special items1		220		215			215		217		202			5			2			18			9			650			573		77			13
Net income available to common stockholders		213		190			209		197		189			23			12			24			13			612			668		(56	)		(8	)
Net income available to common stockholders, excluding restructuring charges and special items1		213		215			215		217		202			(2	)		(1	)		11			5			643			573		70			12
PER COMMON SHARE DATA
Basic earnings	$	0.40	$	0.35		$	0.38	$	0.36	$	0.34		$	0.05			14	%	$	0.06			18	%	$	1.14		$	1.19	($	0.05	)		(4	%)
Diluted earnings		0.40		0.35			0.38		0.36		0.34			0.05			14			0.06			18			1.13			1.19		(0.06	)		(5	)
Basic earnings, excluding restructuring charges and special items1		0.40		0.40			0.39		0.40		0.36			—			—			0.04			11			1.20			1.02		0.18			18
Diluted earnings, excluding restructuring charges and special items1		0.40		0.40			0.39		0.39		0.36			—			—			0.04			11			1.19			1.02		0.17			17
Cash dividends declared and paid per share		0.10		0.10			0.10		0.10		0.68			—			—			(0.58	)		(85	)		0.30			1.34		(1.04	)		(78	)
Book value		36.68		36.00			35.73		35.30		34.61			0.68			2			2.07			6			36.68			34.61		2.07			6
Tangible book value1		24.52		24.03			23.96		23.46		23.04			0.49			2			1.48			6			24.52			23.04		1.48			6
COMMON SHARES OUTSTANDING
Average: Basic		530,985,255		537,729,248			546,291,363		546,810,009		559,998,324			(6,743,993	)		(1	%)		(29,013,069	)		(5	%)		538,279,222			559,998,324		(21,719,102	)		(4	%)
Diluted		533,398,158		539,909,366			549,798,717		550,676,298		560,243,747			(6,511,208	)		(1	)		(26,845,589	)		(5	)		540,926,361			560,081,031		(19,154,670	)		(3	)
Common shares at period-end		527,636,510		537,149,717			547,490,812		545,884,519		559,998,324			(9,513,207	)		(2	)		(32,361,814	)		(6	)		527,636,510			559,998,324		(32,361,814	)		(6	)
Closing share price	$	23.86	$	27.31		$	24.13	$	24.86	$	23.42		($	3.45	)		(13	)	$	0.44			2		$	23.86		$	23.42	$	0.44			2
Market capitalization		12,589		14,670			13,211		13,571		13,115			(2,081	)		(14	)		(526	)		(4	)		12,589			13,115		(526	)		(4	)
SEGMENT NET INCOME
Consumer Banking	$	68	$	66		$	61	$	52	$	54		$	2			3	%	$	14			26	%	$	195		$	130	$	65			50	%
Commercial Banking		145		135			147		140		139			10			7			6			4			427			421		6			1
Other		7		(11	)		1		5		(4	)		18			164			11			275			(3	)		117		(120	)		(103	)
NET INCOME	$	220	$	190		$	209	$	197	$	189		$	30			16	%	$	31			16	%	$	619		$	668	($	49	)		(7	%)

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																											FOR THE NINE MONTHS ENDED SEPT 30,
																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
FINANCIAL RATIOS
Net interest margin		2.76	%		2.72	%		2.77	%		2.80	%		2.77	%		4	bps					(1	) bps					2.75	%		2.84	%		(9	) bps
Return on average common equity		4.40			3.94			4.36			4.06			3.87			46	bps					53	bps					4.23			4.59			(36	) bps
Return on average common equity, excluding restructuring charges and special items1		4.40			4.45			4.49			4.48			4.14			(5	) bps					26	bps					4.45			3.94			51	bps
Return on average tangible common equity1		6.60			5.90			6.53			6.12			5.81			70	bps					79	bps					6.34			6.90			(56	) bps
Return on average tangible common equity, excluding restructuring charges and special items1		6.60			6.67			6.73			6.76			6.22			(7	) bps					38	bps					6.67			5.92			75	bps
Return on average total assets		0.65			0.56			0.63			0.60			0.58			9	bps					7	bps					0.62			0.71			(9	) bps
Return on average total assets, excluding restructuring charges and special items1		0.65			0.64			0.65			0.66			0.62			1	bps					3	bps					0.65			0.61			4	bps
Return on average total tangible assets1		0.68			0.59			0.67			0.63			0.61			9	bps					7	bps					0.65			0.74			(9	) bps
Return on average total tangible assets, excluding restructuring charges and special items1		0.68			0.67			0.69			0.69			0.66			1	bps					2	bps					0.68			0.64			4	bps
Effective income tax rate		34.12			32.69			33.68			30.56			30.81			143	bps					331	bps					33.54			32.16			138	bps
Efficiency ratio1		66.02			70.02			68.49			69.88			69.84			(400	) bps					(382	) bps					68.17			67.58			59	bps
Efficiency ratio, excluding restructuring charges and special items1		66.02			66.70			67.65			67.11			68.02			(68	) bps					(200	) bps					66.78			69.23			(245	) bps
CAPITAL RATIOS - PERIOD END (PRELIMINARY)2
CET1 capital ratio3		11.8	%		11.8	%		12.2	%		12.4	%		12.9	%
Tier 1 capital ratio		12.0			12.1			12.2			12.4			12.9
Total capital ratio		15.4			15.3			15.5			15.8			16.1
Tier 1 leverage ratio		10.4			10.4			10.5			10.6			10.9
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	135,447		$	137,251		$	136,535		$	132,857		$	131,341		($	1,804	)		(1	%)	$	4,106			3	%	$	135,447		$	131,341		$	4,106			3	%
Loans and leases:
Commercial		45,269			45,068			43,982			43,226			41,470			201			—			3,799			9			45,269			41,470			3,799			9
Retail		52,162			51,470			50,512			50,184			49,279			692			1			2,883			6			52,162			49,279			2,883			6
Total loans and leases		97,431			96,538			94,494			93,410			90,749			893			1			6,682			7			97,431			90,749			6,682			7
Deposits	$	101,866		$	100,615		$	98,990		$	95,707		$	93,463		$	1,251			1		$	8,403			9		$	101,866		$	93,463		$	8,403			9
Long-term borrowed funds		4,153			3,890			3,904			4,642			2,062			263			7			2,091			101			4,153			2,075			2,078			100
Total stockholders’ equity		19,600			19,586			19,564			19,268			19,383			14			—			217			1			19,600			19,383			217			1
Loans-to-deposits ratio (period-end balances)4		96.06	%		96.64	%		95.84	%		97.89	%		97.32	%		(58	) bps					(126	) bps					96.06	%		97.32	%		(126	) bps
Loans-to-deposits ratio (average balances)4		96.29			97.49			98.58			97.34			98.01			(120	) bps					(172	) bps					97.43			96.82			61	bps
Full-time equivalent employees		17,817			17,903			17,792			17,677			17,852			(86	)		—			(35	)		—			17,817			17,852			(35	)		—

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

² Basel III transitional rules for institutions applying the standardized approach to calculating risk-weighted assets became effective January 1, 2015. The capital ratios and associated components after January 1, 2015 are prepared using the Basel III standardized transitional approach. The capital ratios and associated components for periods December 31, 2014 and prior are prepared under the Basel I general capital rule.

³ Common equity tier 1 (“CET1”) capital under Basel III replaced tier 1 common capital under Basel I effective January 1, 2015.

⁴ 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																						FOR THE NINE MONTHS ENDED SEPT 30,
											3Q15 Change																2015 Change
	3Q15		2Q15		1Q15		4Q14		3Q14		2Q15						3Q14						2015		2014		2014
											$			%			$			%							$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	812	$	790	$	779	$	777	$	754	$	22			3	%	$	58			8	%	$	2,381	$	2,235	$	146			7	%
Interest and fees on loans held for sale		3		3		2		1		2		—			—			1			50			8		4		4			100
Interest and fees on other loans held for sale		3		3		1		1		—		—			—			3			—			7		22		(15	)		(68	)
Investment securities		154		155		159		161		155		(1	)		(1	)		(1	)		(1	)		468		458		10			2
Interest-bearing deposits in banks		2		1		1		1		2		1			100			—			—			4		4		—			—
Total interest income		974		952		942		941		913		22			2			61			7			2,868		2,723		145			5
INTEREST EXPENSE:
Deposits		65		60		52		48		41		5			8			24			59			177		108		69			64
Deposits held for sale		—		—		—		—		—		—			—			—			—			—		4		(4	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase		4		2		7		7		9		2			100			(5	)		(56	)		13		25		(12	)		(48	)
Other short-term borrowed funds		17		19		15		19		21		(2	)		(11	)		(4	)		(19	)		51		70		(19	)		(27	)
Long-term borrowed funds		32		31		32		27		22		1			3			10			45			95		55		40			73
Total interest expense		118		112		106		101		93		6			5			25			27			336		262		74			28
Net interest income		856		840		836		840		820		16			2			36			4			2,532		2,461		71			3
NONINTEREST INCOME:
Service charges and fees		145		139		135		144		144		6			4			1			1			419		430		(11	)		(3	)
Card fees		60		60		52		58		58		—			—			2			3			172		175		(3	)		(2	)
Trust and investment services fees		41		41		36		38		39		—			—			2			5			118		120		(2	)		(2	)
Mortgage banking fees		18		30		33		16		21		(12	)		(40	)		(3	)		(14	)		81		55		26			47
Capital markets fees		21		30		22		25		22		(9	)		(30	)		(1	)		(5	)		73		66		7			11
Foreign exchange and trade finance fees		22		22		23		25		26		—			—			(4	)		(15	)		67		70		(3	)		(4	)
Bank-owned life insurance income		14		14		12		13		13		—			—			1			8			40		36		4			11
Securities gains, net		2		9		8		1		2		(7	)		(78	)		—			—			19		27		(8	)		(30	)
Other income		30		15		26		19		16		15			100			14			88			71		360		(289	)		(80	)
Total noninterest income		353		360		347		339		341		(7	)		(2	)		12			4			1,060		1,339		(279	)		(21	)
TOTAL REVENUE		1,209		1,200		1,183		1,179		1,161		9			1			48			4			3,592		3,800		(208	)		(5	)
Provision for credit losses		76		77		58		72		77		(1	)		(1	)		(1	)		(1	)		211		247		(36	)		(15	)
NONINTEREST EXPENSE:
Salaries and employee benefits		404		411		419		397		409		(7	)		(2	)		(5	)		(1	)		1,234		1,281		(47	)		(4	)
Outside services		89		99		79		106		106		(10	)		(10	)		(17	)		(16	)		267		314		(47	)		(15	)
Occupancy		75		90		80		81		77		(15	)		(17	)		(2	)		(3	)		245		245		—			—
Equipment expense		62		65		63		63		58		(3	)		(5	)		4			7			190		187		3			2
Amortization of software		35		37		36		43		38		(2	)		(5	)		(3	)		(8	)		108		102		6			6
Other operating expense		133		139		133		134		122		(6	)		(4	)		11			9			405		439		(34	)		(8	)
Total noninterest expense		798		841		810		824		810		(43	)		(5	)		(12	)		(1	)		2,449		2,568		(119	)		(5	)
Income before income tax expense		335		282		315		283		274		53			19			61			22			932		985		(53	)		(5	)
Income tax expense		115		92		106		86		85		23			25			30			35			313		317		(4	)		(1	)
NET INCOME	$	220	$	190	$	209	$	197	$	189	$	30			16	%	$	31			16	%	$	619	$	668	($	49	)		(7	%)
Net income, excluding restructuring charges and special items1	$	220	$	215	$	215	$	217	$	202	$	5			2	%	$	18			9	%	$	650	$	573	$	77			13	%
Net income available to common stockholders	$	213	$	190	$	209	$	197	$	189	$	23			12	%	$	24			13		$	612	$	668	($	56	)		(8	)
Net income available to common stockholders, excluding restructuring charges and special items1	$	213	$	215	$	215	$	217	$	202	($	2	)		(1	%)	$	11			5	%	$	643	$	573	$	70			12	%

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															SEPT 30, 2015 CHANGE
	Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2015						Sept 30, 2014
																$			%			$			%
ASSETS:
Cash and due from banks	$	1,067		$	961		$	954		$	1,171		$	993		$	106			11	%	$	74			7	%
Interest-bearing cash and due from banks		689			1,908			4,050			2,105			1,896			(1,219	)		(64	)		(1,207	)		(64	)
Interest-bearing deposits in banks		363			186			615			370			292			177			95			71			24
Securities available for sale, at fair value		18,197			18,662			19,041			18,656			18,666			(465	)		(2	)		(469	)		(3	)
Securities held to maturity		5,285			5,567			5,178			5,148			5,289			(282	)		(5	)		(4	)		—
Trading securities		45			38			35			28			37			7			18			8			22
Other investment securities		827			866			867			872			893			(39	)		(5	)		(66	)		(7	)
Loans held for sale, at fair value		369			397			322			256			205			(28	)		(7	)		164			80
Other loans held for sale		51			300			54			25			3			(249	)		(83	)		48			1,600
Loans and leases		97,431			96,538			94,494			93,410			90,749			893			1			6,682			7
Less: Allowance for loan and lease losses		(1,201	)		(1,201	)		(1,202	)		(1,195	)		(1,201	)		—			—			—			—
Net loans and leases		96,230			95,337			93,292			92,215			89,548			893			1			6,682			7
Derivative assets		838			665			742			629			547			173			26			291			53
Premises and equipment		560			580			584			595			541			(20	)		(3	)		19			4
Bank-owned life insurance		1,553			1,543			1,535			1,527			1,370			10			1			183			13
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		—			939			—			—			2,067			(939	)		(100	)		(2,067	)		(100	)
Other assets		2,497			2,426			2,390			2,384			2,118			71			3			379			18
TOTAL ASSETS	$	135,447		$	137,251		$	136,535		$	132,857		$	131,341		($	1,804	)		(1	%)	$	4,106			3	%
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	27,373		$	26,678		$	26,670		$	26,086		$	25,877		$	695			3	%	$	1,496			6	%
Interest-bearing		74,493			73,937			72,320			69,621			67,586			556			1			6,907			10
Total deposits		101,866			100,615			98,990			95,707			93,463			1,251			1			8,403			9
Federal funds purchased and securities sold under agreements to repurchase		1,293			3,784			4,421			4,276			5,184			(2,491	)		(66	)		(3,891	)		(75	)
Other short-term borrowed funds		5,861			6,762			7,004			6,253			6,715			(901	)		(13	)		(854	)		(13	)
Derivative liabilities		641			556			616			612			638			85			15			3			—
Deferred taxes, net		637			558			586			493			354			79			14			283			80
Long-term borrowed funds		4,153			3,890			3,904			4,642			2,062			263			7			2,091			101
Due to broker		—			—			61			—			2,087			—			—			(2,087	)		(100	)
Other liabilities		1,396			1,500			1,389			1,606			1,455			(104	)		(7	)		(59	)		(4	)
TOTAL LIABILITIES		115,847			117,665			116,971			113,589			111,958			(1,818	)		(2	)		3,889			3
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized		247			247			—			—			—			—			—			—			—
Common stock:
$0.01 par value, 1,000,000,000 shares authorized for each of the periods presented		6			6			6			6			6			—			—			—			—
Additional paid-in capital		18,718			18,714			18,707			18,676			18,660			4			—			58			—
Retained earnings		1,745			1,585			1,448			1,294			1,152			160			10			593			51
Treasury stock, at cost		(857	)		(607	)		(357	)		(336	)		—			(250	)		(41	)		(857	)		—
Accumulated other comprehensive loss		(259	)		(359	)		(240	)		(372	)		(435	)		100			28			176			40
TOTAL STOCKHOLDERS’ EQUITY		19,600			19,586			19,564			19,268			19,383			14			—			217			1
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	135,447		$	137,251		$	136,535		$	132,857		$	131,341		($	1,804	)		(1	%)	$	4,106			3	%
Memo: Total tangible common equity1	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	30			—	%	$	39			—	%

¹ This is a non-GAAP financial measure. For further information on this measure, refer to page 30.

6

LOANS AND DEPOSITS

(dollars in millions)

PERIOD END BALANCES	AS OF										SEPT 30, 2015 CHANGE
	Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2015						Sept 30, 2014
											$			%			$			%
LOANS AND LEASES:
Commercial	$	32,726	$	33,027	$	32,249	$	31,431	$	30,356	($	301	)		(1	%)	$	2,370			8	%
Commercial real estate		8,678		8,157		7,863		7,809		7,239		521			6			1,439			20
Leases		3,865		3,884		3,870		3,986		3,875		(19	)		—			(10	)		—
Total commercial		45,269		45,068		43,982		43,226		41,470		201			—			3,799			9
Residential mortgages		12,792		12,253		11,808		11,832		11,265		539			4			1,527			14
Home equity loans		2,842		3,022		3,212		3,424		3,635		(180	)		(6	)		(793	)		(22	)
Home equity lines of credit		14,707		14,917		15,127		15,423		15,558		(210	)		(1	)		(851	)		(5	)
Home equity loans serviced by others1		1,054		1,126		1,192		1,228		1,290		(72	)		(6	)		(236	)		(18	)
Home equity lines of credit serviced by others1		441		494		544		550		580		(53	)		(11	)		(139	)		(24	)
Automobile		13,876		13,727		13,179		12,706		12,080		149			1			1,796			15
Student		3,846		3,355		2,852		2,256		2,069		491			15			1,777			86
Credit card		1,628		1,613		1,588		1,693		1,676		15			1			(48	)		(3	)
Other retail		976		963		1,010		1,072		1,126		13			1			(150	)		(13	)
Total retail		52,162		51,470		50,512		50,184		49,279		692			1			2,883			6
Total loans and leases	$	97,431	$	96,538	$	94,494	$	93,410	$	90,749	$	893			1	%	$	6,682			7	%
Loans held for sale, at fair value	$	369	$	397	$	322	$	256	$	205	($	28	)		(7	%)	$	164			80	%
Other loans held for sale		51		300		54		25		3		(249	)		(83	)		48			1,600
Loans and loans held for sale	$	97,851	$	97,235	$	94,870	$	93,691	$	90,957	$	616			1	%	$	6,894			8	%
DEPOSITS:
Demand	$	27,373	$	26,678	$	26,670	$	26,086	$	25,877	$	695			3	%	$	1,496			6	%
Checking with interest		18,350		17,114		16,738		16,394		15,449		1,236			7			2,901			19
Regular savings		8,011		8,080		8,398		7,824		7,655		(69	)		(1	)		356			5
Money market accounts		35,539		35,735		34,543		33,345		32,870		(196	)		(1	)		2,669			8
Term deposits		12,593		13,008		12,641		12,058		11,612		(415	)		(3	)		981			8
Total deposits	$	101,866	$	100,615	$	98,990	$	95,707	$	93,463	$	1,251			1		$	8,403			9

¹ Our Serviced by Others (“SBO”) portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

7

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)

AVERAGE BALANCES	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,322		$	2,054		$	2,092		$	1,784		$	2,685		($	732	)		(36	%)	($	1,363	)		(51	%)	$	1,820		$	2,224		($	404	)		(18	%)
Taxable investment securities		24,440			25,081			24,955			24,658			24,648			(641	)		(3	)		(208	)		(1	)		24,824			24,205			619			3
Non-taxable investment securities		9			10			10			10			10			(1	)		(10	)		(1	)		(10	)		10			11			(1	)		(9	)
Total investment securities		24,449			25,091			24,965			24,668			24,658			(642	)		(3	)		(209	)		(1	)		24,834			24,216			618			3
Investment securities and interest-bearing deposits		25,771			27,145			27,057			26,452			27,343			(1,374	)		(5	)		(1,572	)		(6	)		26,654			26,440			214			1
Commercial		32,832			32,855			31,911			30,962			30,186			(23	)		—			2,646			9			32,536			29,666			2,870			10
Commercial real estate		8,406			7,947			7,700			7,427			7,216			459			6			1,190			16			8,020			7,067			953			13
Leases		3,936			3,894			3,895			3,874			3,789			42			1			147			4			3,909			3,743			166			4
Total commercial		45,174			44,696			43,506			42,263			41,191			478			1			3,983			10			44,465			40,476			3,989			10
Residential mortgages		12,470			11,980			11,855			11,647			11,001			490			4			1,469			13			12,104			10,420			1,684			16
Home equity loans		2,928			3,138			3,332			3,527			3,743			(210	)		(7	)		(815	)		(22	)		3,117			3,994			(877	)		(22	)
Home equity lines of credit		14,813			15,084			15,310			15,490			15,572			(271	)		(2	)		(759	)		(5	)		15,059			15,572			(513	)		(3	)
Home equity loans serviced by others1		1,086			1,134			1,193			1,252			1,317			(48	)		(4	)		(231	)		(18	)		1,151			1,386			(235	)		(17	)
Home equity lines of credit serviced by others1		425			469			522			561			591			(44	)		(9	)		(166	)		(28	)		479			626			(147	)		(23	)
Automobile		13,810			13,484			12,933			12,403			11,438			326			2			2,372			21			13,412			10,542			2,870			27
Student		3,530			3,029			2,623			2,142			1,983			501			17			1,547			78			3,064			2,150			914			43
Credit cards		1,616			1,606			1,637			1,663			1,661			10			1			(45	)		(3	)		1,620			1,647			(27	)		(2	)
Other retail		939			986			1,041			1,097			1,153			(47	)		(5	)		(214	)		(19	)		988			1,216			(228	)		(19	)
Total retail		51,617			50,910			50,446			49,782			48,459			707			1			3,158			7			50,994			47,553			3,441			7
Total loans and leases		96,791			95,606			93,952			92,045			89,650			1,185			1			7,141			8			95,459			88,029			7,430			8
Loans held for sale, at fair value		327			308			242			213			176			19			6			151			86			293			146			147			101
Other loans held for sale		128			146			91			20			27			(18	)		(12	)		101			374			122			715			(593	)		(83	)
Interest-earning assets		123,017			123,205			121,342			118,730			117,196			(188	)		—			5,821			5			122,528			115,330			7,198			6
Allowance for loan and lease losses		(1,197	)		(1,198	)		(1,192	)		(1,195	)		(1,202	)		1			—			5			—			(1,196	)		(1,242	)		46			4
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Other noninterest-earning assets		6,407			6,638			6,299			6,260			5,821			(231	)		(3	)		586			10			6,447			5,634			813			14
Total noninterest-earning assets		12,086			12,316			11,983			11,941			11,495			(230	)		(2	)		591			5			12,127			11,268			859			8
TOTAL ASSETS	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	16,934		$	16,561		$	16,039		$	15,718		$	15,155		$	373			2	%	$	1,779			12	%	$	16,515		$	14,099		$	2,416			17	%
Money market and savings		44,572			42,977			41,666			40,856			40,096			1,595			4			4,476			11			43,082			39,149			3,933			10
Term deposits		12,730			12,576			12,184			11,892			10,596			154			1			2,134			20			12,498			9,786			2,712			28
Total interest-bearing deposits		74,236			72,114			69,889			68,466			65,847			2,122			3			8,389			13			72,095			63,034			9,061			14
Interest-bearing deposits held for sale		—			—			—			—			—			—			—			—			—			—			2,621			(2,621	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase2		2,880			4,372			4,607			5,075			6,305			(1,492	)		(34	)		(3,425	)		(54	)		3,947			5,908			(1,961	)		(33	)
Other short-term borrowed funds		5,062			6,498			6,969			6,119			6,740			(1,436	)		(22	)		(1,678	)		(25	)		6,169			5,479			690			13
Long-term borrowed funds		4,059			3,902			3,930			2,834			1,951			157			4			2,108			108			3,964			1,594			2,370			149
Total borrowed funds		12,001			14,772			15,506			14,028			14,996			(2,771	)		(19	)		(2,995	)		(20	)		14,080			12,981			1,099			8
Total interest-bearing liabilities		86,237			86,886			85,395			82,494			80,843			(649	)		(1	)		5,394			7			86,175			78,636			7,539			10
Total demand deposits		26,754			26,419			25,756			26,331			25,829			335			1			925			4			26,313			25,540			773			3
Demand deposits held for sale		—			—			—			—			—			—			—			—			—			—			618			(618	)		(100	)
Other liabilities		2,604			2,592			2,767			2,637			2,608			12			—			(4	)		—			2,654			2,341			313			13
TOTAL LIABILITIES		115,595			115,897			113,918			111,462			109,280			(302	)		—			6,315			6			115,142			107,135			8,007			7
STOCKHOLDERS’ EQUITY		19,508			19,624			19,407			19,209			19,411			(116	)		(1	)		97			—			19,513			19,463			50			—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Memo: Total average tangible common equity3	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		($	113	)		(1	%)	($	79	)		(1	%)	$	12,909		$	12,948		($	39	)		—	%
Total deposits (interest-bearing and demand)	$	100,990		$	98,533		$	95,645		$	94,797		$	91,676		$	2,457			2	%	$	9,314			10	%	$	98,408		$	91,813		$	6,595			7	%

¹  Our SBO portfolio consists of purchased loans and lines of credit 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 This is a non-GAAP financial measure. For further information on this measure, refer to page 30.

8

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)

	QUARTERLY TRENDS																									FOR THE NINE MONTHS ENDED SEPT 30,
AVERAGE ANNUALIZED YIELDS & RATES	3Q15					2Q15					1Q15					4Q14					3Q14					2015					2014
	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		0.44	%	$	2		0.22	%	$	1		0.19	%	$	1		0.20	%	$	1		0.23	%	$	2		0.26	%	$	4		0.23	%	$	4
Taxable investment securities		2.52			154		2.47			155		2.55			159		2.61			161		2.51			155		2.52			468		2.52			458
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.59			—		2.60			—		2.60			—
Total investment securities		2.52			154		2.47			155		2.55			159		2.61			161		2.51			155		2.52			468		2.52			458
Investment securities and interest-bearing deposits					156					156					160					162					157					472					462
Commercial		2.89			243		2.83			235		2.84			226		2.90			229		2.89			223		2.85			704		2.98			671
Commercial real estate		2.50			54		2.55			51		2.59			50		2.55			48		2.46			46		2.54			155		2.51			134
Leases		2.45			24		2.56			25		2.53			25		2.65			26		2.68			25		2.51			74		2.75			77
Total commercial		2.78			321		2.75			311		2.77			301		2.82			303		2.80			294		2.77			933		2.88			882
Residential mortgages		3.76			117		3.76			113		3.79			112		3.88			113		3.92			108		3.77			342		3.99			312
Home equity loans		5.32			40		5.43			42		5.40			44		5.31			47		5.31			50		5.41			126		5.28			158
Home equity lines of credit		2.97			111		2.94			110		2.94			111		2.94			114		2.90			113		2.95			332		2.87			334
Home equity loans serviced by others1		6.93			19		7.04			20		7.09			21		6.88			22		6.64			22		6.94			60		6.72			70
Home equity lines of credit serviced by others1		2.30			3		2.56			3		2.58			3		2.70			4		2.62			4		2.45			9		2.68			13
Automobile		2.75			95		2.68			90		2.78			89		2.64			83		2.57			74		2.73			274		2.53			200
Student		5.01			45		5.05			38		5.13			33		5.07			27		4.99			25		5.06			116		4.63			75
Credit cards		10.95			44		10.92			44		11.10			45		10.28			43		9.99			42		10.99			133		10.09			124
Other retail		7.72			17		7.61			19		7.59			20		7.49			21		7.46			22		7.64			56		7.41			67
Total retail		3.79			491		3.77			479		3.83			478		3.79			474		3.78			460		3.80			1,448		3.80			1,353
Total loans and leases		3.32			812		3.30			790		3.34			779		3.34			777		3.33			754		3.32			2,381		3.38			2,235
Loans held for sale, at fair value		3.69			3		3.41			3		3.29			2		3.41			1		3.46			2		3.48			8		3.44			4
Other loans held for sale		6.96			3		7.79			3		6.85			1		5.96			1		5.44			—		7.27			7		4.10			22
Total interest-earning assets		3.13			974		3.08			952		3.12			942		3.14			941		3.08			913		3.11			2,868		3.14			2,723
INTEREST-BEARING LIABILITIES:
Checking with interest		0.12			5		0.11			5		0.11			4		0.11			4		0.09			4		0.11			14		0.07			8
Money market and savings		0.29			33		0.27			29		0.25			25		0.22			23		0.21			21		0.27			87		0.18			54
Term deposits		0.84			27		0.81			26		0.78			23		0.70			21		0.61			16		0.81			76		0.63			46
Total interest-bearing deposits		0.34			65		0.33			60		0.31			52		0.28			48		0.25			41		0.33			177		0.23			108
Interest-bearing deposits held for sale		—			—		—			—		—			—		—			—		—			—		—			—		0.22			4
Federal funds purchased and securities sold under agreements to repurchase2		0.52			4		0.22			2		0.60			7		0.54			7		0.54			9		0.44			13		0.55			25
Other short-term borrowed funds		1.32			17		1.18			19		0.83			15		1.23			19		1.21			21		1.09			51		1.69			70
Long-term borrowed funds		3.16			32		3.19			31		3.27			32		3.93			27		4.50			22		3.21			95		4.57			55
Total borrowed funds		1.75			53		1.43			52		1.38			54		1.53			53		1.36			52		1.50			159		1.52			150
Total interest-bearing liabilities		0.54			118		0.52			112		0.50			106		0.49			101		0.45			93		0.52			336		0.44			262
INTEREST RATE SPREAD		2.59	%				2.56	%				2.62	%				2.65	%				2.63	%				2.59	%				2.70	%
NET INTEREST MARGIN		2.76					2.72					2.77					2.80					2.77					2.75					2.84
Memo: Total deposit costs		0.25			65		0.24			60		0.22			52		0.20			48		0.18			41		0.24			177		0.16			112

¹  Our SBO portfolio consists of purchased loans and lines of credit 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)

	THIRD QUARTER 2015											SECOND QUARTER 2015												CHANGE
																								3Q15 from 2Q15
	Consumer Banking			Commercial Banking			Other1		Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$			%
Net interest income	$	556		$	299		$	1	$	856		$	544		$	286		$	10		$	840		$	16			2	%
Noninterest income		235			100			18		353			230			108			22			360			(7	)		(2	)
Total revenue		791			399			19		1,209			774			394			32			1,200			9			1
Noninterest expense		623			175			—		798			613			181			47			841			(43	)		(5	)
Profit (loss) before provision for credit losses		168			224			19		411			161			213			(15	)		359			52			14
Provision for credit losses		64			3			9		76			60			7			10			77			(1	)		(1	)
Income (loss) before income tax expense (benefit)		104			221			10		335			101			206			(25	)		282			53			19
Income tax expense (benefit)		36			76			3		115			35			71			(14	)		92			23			25
Net income (loss)	$	68		$	145		$	7	$	220		$	66		$	135		($	11	)	$	190		$	30			16	%
Average Balances
Total assets	$	53,206		$	43,113		$	38,784	$	135,103		$	52,489		$	42,617		$	40,415		$	135,521		($	418	)		—	%
Total loans and leases2		51,886			41,993			3,367		97,246			51,024			41,467			3,569			96,060			1,186			1
Deposits		70,527			24,604			5,859		100,990			69,963			22,717			5,853			98,533			2,457			2
Interest-earning assets		51,928			42,070			29,019		123,017			51,061			41,535			30,609			123,205			(188	)		—
Key Metrics
Net interest margin		4.25	%		2.81	%		NM		2.76	%		4.28	%		2.76	%		NM			2.72	%		4	bps
Efficiency ratio4		78.72			43.75			NM		66.02			79.25			46.07			NM			70.02			(400	) bps
Loans-to-deposits ratio (average balances)		73.57			170.68			NM		96.29			72.93			182.54			NM			97.49			(120	) bps
Return on average total tangible assets4		0.51			1.34			NM		0.68			0.51			1.27			NM			0.59			9	bps
Return on average tangible common equity3,4		5.67			12.24			NM		6.60			5.66			11.69			NM			5.90			70	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, capital, 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 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.

10

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)

	THIRD QUARTER 2015											THIRD QUARTER 2014												CHANGE
																								3Q15 from 3Q14
	Consumer Banking			Commercial Banking			Other1		Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$			%
Net interest income	$	556		$	299		$	1	$	856		$	532		$	270		$	18		$	820		$	36			4	%
Noninterest income		235			100			18		353			226			104			11			341			12			4
Total revenue		791			399			19		1,209			758			374			29			1,161			48			4
Noninterest expense		623			175			—		798			609			162			39			810			(12	)		(1	)
Profit (loss) before provision for credit losses		168			224			19		411			149			212			(10	)		351			60			17
Provision for credit losses		64			3			9		76			66			—			11			77			(1	)		(1	)
Income (loss) before income tax expense (benefit)		104			221			10		335			83			212			(21	)		274			61			22
Income tax expense (benefit)		36			76			3		115			29			73			(17	)		85			30			35
Net income (loss)	$	68		$	145		$	7	$	220		$	54		$	139		($	4	)	$	189		$	31			16	%
Average Balances
Total assets	$	53,206		$	43,113		$	38,784	$	135,103		$	49,012		$	38,854		$	40,825		$	128,691		$	6,412			5	%
Total loans and leases2		51,886			41,993			3,367		97,246			47,848			37,787			4,218			89,853			7,393			8
Deposits		70,527			24,604			5,859		100,990			65,609			20,985			5,082			91,676			9,314			10
Interest-earning assets		51,928			42,070			29,019		123,017			47,885			37,927			31,384			117,196			5,821			5
Key Metrics
Net interest margin		4.25	%		2.81	%		NM		2.76	%		4.40	%		2.82	%		NM			2.77	%		(1	) bps
Efficiency ratio4		78.72			43.75			NM		66.02			80.42			43.35			NM			69.84			(382	) bps
Loans-to-deposits ratio (average balances)		73.57			170.68			NM		96.29			72.93			180.06			NM			98.01			(172	) bps
Return on average total tangible assets4		0.51			1.34			NM		0.68			0.44			1.42			NM			0.61			7	bps
Return on average tangible common equity3,4		5.67			12.24			NM		6.60			4.57			13.10			NM			5.81			79	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, capital, 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 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.

11

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)

	NINE MONTHS ENDED SEPT 30, 2015												NINE MONTHS ENDED SEPT 30, 2014											CHANGE
																								2015 from 2014
	Consumer Banking			Commercial Banking			Other1			Consolidated			Consumer Banking			Commercial Banking			Other1		Consolidated			$			%
Net interest income	$	1,633		$	861		$	38		$	2,532		$	1,615		$	790		$	56	$	2,461		$	71			3	%
Noninterest income		684			308			68			1,060			681			318			340		1,339			(279	)		(21	)
Total revenue		2,317			1,169			106			3,592			2,296			1,108			396		3,800			(208	)		(5	)
Noninterest expense		1,832			529			88			2,449			1,902			472			194		2,568			(119	)		(5	)
Profit before provision for credit losses		485			640			18			1,143			394			636			202		1,232			(89	)		(7	)
Provision for credit losses		187			(11	)		35			211			195			(7	)		59		247			(36	)		(15	)
Income (loss) before income tax expense (benefit)		298			651			(17	)		932			199			643			143		985			(53	)		(5	)
Income tax expense (benefit)		103			224			(14	)		313			69			222			26		317			(4	)		(1	)
Net income (loss)	$	195		$	427		($	3	)	$	619		$	130		$	421		$	117	$	668		($	49	)		(7	%)
Average Balances
Total assets	$	52,438		$	42,451		$	39,766		$	134,655		$	48,398		$	37,951		$	40,249	$	126,598		$	8,057			6	%
Total loans and leases2		51,062			41,240			3,572			95,874			47,203			37,263			4,424		88,890			6,984			8
Deposits3		69,347			23,094			5,967			98,408			68,834			18,941			4,038		91,813			6,595			7
Interest-earning assets		51,100			41,323			30,105			122,528			47,236			37,395			30,699		115,330			7,198			6
Key Metrics
Net interest margin		4.27	%		2.78	%		NM			2.75	%		4.57	%		2.82	%		NM		2.84	%		(9	) bps
Efficiency ratio5		79.07			45.26			NM			68.17			82.82			42.62			NM		67.58			59	bps
Loans-to-deposits ratio (average balances)		73.63			178.58			NM			97.43			68.58			196.74			NM		96.82			61	bps
Return on average total tangible assets5		0.50			1.35			NM			0.65			0.36			1.48			NM		0.74			(9	) bps
Return on average tangible common equity4,5		5.55			12.35			NM			6.34			3.76			13.67			NM		6.90			(56	) 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, capital, 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 Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁵ 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																											FOR THE NINE MONTHS ENDED SEPT 30,
CONSUMER BANKING																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	556		$	544		$	533		$	536		$	532		$	12			2	%	$	24			5	%	$	1,633		$	1,615		$	18			1	%
Noninterest income		235			230			219			218			226			5			2			9			4			684			681			3			—
Total revenue		791			774			752			754			758			17			2			33			4			2,317			2,296			21			1
Noninterest expense		623			613			596			611			609			10			2			14			2			1,832			1,902			(70	)		(4	)
Profit before provision for credit losses		168			161			156			143			149			7			4			19			13			485			394			91			23
Provision for credit losses		64			60			63			64			66			4			7			(2	)		(3	)		187			195			(8	)		(4	)
Income before income tax expense		104			101			93			79			83			3			3			21			25			298			199			99			50
Income tax expense		36			35			32			27			29			1			3			7			24			103			69			34			49
Net income	$	68		$	66		$	61		$	52		$	54		$	2			3	%	$	14			26	%	$	195		$	130		$	65			50	%
Average Balances
Total assets	$	53,206		$	52,489		$	51,602		$	50,546		$	49,012		$	717			1	%	$	4,194			9	%	$	52,438		$	48,398		$	4,040			8	%
Total loans and leases1		51,886			51,024			50,260			49,351			47,848			862			2			4,038			8			51,062			47,203			3,859			8
Deposits2		70,527			69,963			67,518			66,374			65,609			564			1			4,918			7			69,347			68,834			513			1
Interest-earning assets		51,928			51,061			50,294			49,382			47,885			867			2			4,043			8			51,100			47,236			3,864			8
Key Metrics
Net interest margin		4.25	%		4.28	%		4.30	%		4.31	%		4.40	%		(3	) bps					(15	) bps					4.27	%		4.57	%		(30	) bps
Efficiency ratio4		78.72			79.25			79.25			81.09			80.42			(53	) bps					(170	) bps					79.07			82.82			(375	) bps
Loans-to-deposits ratio (average balances)		73.57			72.93			74.44			74.35			72.93			64	bps					64	bps					73.63			68.58			505	bps
Return on average total tangible assets4		0.51			0.51			0.48			0.40			0.44			—						7	bps					0.50			0.36			14	bps
Return on average tangible common equity3,4		5.67			5.66			5.30			4.30			4.57			1	bps					110	bps					5.55			3.76			179	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																											FOR THE NINE MONTHS ENDED SEPT 30,
COMMERCIAL BANKING																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	299		$	286		$	276		$	283		$	270		$	13			5	%	$	29			11	%	$	861		$	790		$	71			9	%
Noninterest income		100			108			100			111			104			(8	)		(7	)		(4	)		(4	)		308			318			(10	)		(3	)
Total revenue		399			394			376			394			374			5			1			25			7			1,169			1,108			61			6
Noninterest expense		175			181			173			180			162			(6	)		(3	)		13			8			529			472			57			12
Profit before provision for credit losses		224			213			203			214			212			11			5			12			6			640			636			4			1
Provision for credit losses		3			7			(21	)		1			—			(4	)		(57	)		3			NM			(11	)		(7	)		(4	)		(57	)
Income before income tax expense		221			206			224			213			212			15			7			9			4			651			643			8			1
Income tax expense		76			71			77			73			73			5			7			3			4			224			222			2			1
Net income	$	145		$	135		$	147		$	140		$	139		$	10			7	%	$	6			4	%	$	427		$	421		$	6			1	%
Average Balances
Total assets	$	43,113		$	42,617		$	41,606		$	40,061		$	38,854		$	496			1	%	$	4,259			11	%	$	42,451		$	37,951		$	4,500			12	%
Total loans and leases1		41,993			41,467			40,241			38,926			37,787			526			1			4,206			11			41,240			37,263			3,977			11
Deposits2		24,604			22,717			21,932			22,500			20,985			1,887			8			3,619			17			23,094			18,941			4,153			22
Interest-earning assets		42,070			41,535			40,344			39,039			37,927			535			1			4,143			11			41,323			37,395			3,928			11
Key Metrics
Net interest margin		2.81	%		2.76	%		2.77	%		2.87	%		2.82	%		5	bps					(1	) bps					2.78	%		2.82	%		(4	) bps
Efficiency ratio4		43.75			46.07			46.01			45.48			43.35			(232	) bps					40	bps					45.26			42.62			264	bps
Loans-to-deposits ratio (average balances)		170.68			182.54			183.48			173.01			180.06			(1,186	) bps					(938	) bps					178.58			196.74			(1,816	) bps
Return on average total tangible assets4		1.34			1.27			1.43			1.38			1.42			7	bps					(8	) bps					1.35			1.48			(13	) bps
Return on average tangible common equity3,4		12.24			11.69			13.15			12.76			13.10			55	bps					(86	) bps					12.35			13.67			(132	) 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.

14

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)

	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPT 30,
OTHER1															3Q15 Change																	2015 Change
	3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014		2014
															$			%			$			%								$			%
Net interest income	$	1	$	10		$	27		$	21		$	18		($	9	)		(90	%)	($	17	)		(94	%)	$	38		$	56	($	18	)		(32	%)
Noninterest income		18		22			28			10			11			(4	)		(18	)		7			64			68			340		(272	)		(80	)
Total revenue		19		32			55			31			29			(13	)		(41	)		(10	)		(34	)		106			396		(290	)		(73	)
Noninterest expense		—		47			41			33			39			(47	)		(100	)		(39	)		(100	)		88			194		(106	)		(55	)
Profit (loss) before provision for credit losses		19		(15	)		14			(2	)		(10	)		34			227			29			290			18			202		(184	)		(91	)
Provision for credit losses		9		10			16			7			11			(1	)		(10	)		(2	)		(18	)		35			59		(24	)		(41	)
Income (loss) before income tax expense (benefit)		10		(25	)		(2	)		(9	)		(21	)		35			140			31			148			(17	)		143		(160	)		(112	)
Income tax expense (benefit)		3		(14	)		(3	)		(14	)		(17	)		17			121			20			118			(14	)		26		(40	)		(154	)
Net income (loss)	$	7	($	11	)	$	1		$	5		($	4	)	$	18			164	%	$	11			275	%	($	3	)	$	117	($	120	)		(103	%)
Average Balances
Total assets	$	38,784	$	40,415		$	40,117		$	40,064		$	40,825		($	1,631	)		(4	%)	($	2,041	)		(5	%)	$	39,766		$	40,249	($	483	)		(1	%)
Total loans and leases		3,367		3,569			3,784			4,001			4,218			(202	)		(6	)		(851	)		(20	)		3,572			4,424		(852	)		(19	)
Deposits		5,859		5,853			6,195			5,923			5,082			6			—			777			15			5,967			4,038		1,929			48
Interest-earning assets		29,019		30,609			30,704			30,309			31,384			(1,590	)		(5	)		(2,365	)		(8	)		30,105			30,699		(594	)		(2	)

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, capital, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

15

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
CONSOLIDATED																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	856		$	840		$	836		$	840		$	820		$	16			2	%	$	36			4	%	$	2,532		$	2,461		$	71			3	%
Noninterest income		353			360			347			339			341			(7	)		(2	)		12			4			1,060			1,339			(279	)		(21	)
Total revenue		1,209			1,200			1,183			1,179			1,161			9			1			48			4			3,592			3,800			(208	)		(5	)
Noninterest expense		798			841			810			824			810			(43	)		(5	)		(12	)		(1	)		2,449			2,568			(119	)		(5	)
Profit before provision for credit losses		411			359			373			355			351			52			14			60			17			1,143			1,232			(89	)		(7	)
Provision for credit losses		76			77			58			72			77			(1	)		(1	)		(1	)		(1	)		211			247			(36	)		(15	)
Income before income tax expense		335			282			315			283			274			53			19			61			22			932			985			(53	)		(5	)
Income tax expense		115			92			106			86			85			23			25			30			35			313			317			(4	)		(1	)
Net income	$	220		$	190		$	209		$	197		$	189		$	30			16	%	$	31			16	%	$	619		$	668		($	49	)		(7	%)
Average Balances
Total assets	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Total loans and leases1		97,246			96,060			94,285			92,278			89,853			1,186			1			7,393			8			95,874			88,890			6,984			8
Deposits2		100,990			98,533			95,645			94,797			91,676			2,457			2			9,314			10			98,408			91,813			6,595			7
Interest-earning assets		123,017			123,205			121,342			118,730			117,196			(188	)		—			5,821			5			122,528			115,330			7,198			6
Key Metrics
Net interest margin		2.76	%		2.72	%		2.77	%		2.80	%		2.77	%		4	bps					(1	) bps					2.75	%		2.84	%		(9	) bps
Efficiency ratio3		66.02			70.02			68.49			69.88			69.84			(400	) bps					(382	) bps					68.17			67.58			59	bps
Loans-to-deposits ratio (average balances)		96.29			97.49			98.58			97.34			98.01			(120	) bps					(172	) bps					97.43			96.82			61	bps
Return on average total tangible assets3		0.68			0.59			0.67			0.63			0.61			9	bps					7	bps					0.65			0.74			(9	) bps
Return on average tangible common equity3		6.60			5.90			6.53			6.12			5.81			70	bps					79	bps					6.34			6.90			(56	) 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																									FOR NINE MONTHS ENDED SEPT 30,
														3Q15 Change																2015 Change
	3Q15		2Q15			1Q15		4Q14			3Q14			2Q15						3Q14						2015		2014		2014
														$			%			$			%							$			%
Net interest income:
Consumer Banking	$	556	$	544		$	533	$	536		$	532		$	12			2	%	$	24			5	%	$	1,633	$	1,615	$	18			1	%
Commercial Banking		299		286			276		283			270			13			5			29			11			861		790		71			9
Other		1		10			27		21			18			(9	)		(90	)		(17	)		(94	)		38		56		(18	)		(32	)
Net interest income	$	856	$	840		$	836	$	840		$	820		$	16			2	%	$	36			4	%	$	2,532	$	2,461	$	71			3	%
Noninterest income:
Consumer Banking	$	235	$	230		$	219	$	218		$	226		$	5			2	%	$	9			4	%	$	684	$	681	$	3			—	%
Commercial Banking		100		108			100		111			104			(8	)		(7	)		(4	)		(4	)		308		318		(10	)		(3	)
Other		18		22			28		10			11			(4	)		(18	)		7			64			68		340		(272	)		(80	)
Noninterest income	$	353	$	360		$	347	$	339		$	341		($	7	)		(2	%)	$	12			4	%	$	1,060	$	1,339	($	279	)		(21	%)
Total revenue:
Consumer Banking	$	791	$	774		$	752	$	754		$	758		$	17			2	%	$	33			4	%	$	2,317	$	2,296	$	21			1	%
Commercial Banking		399		394			376		394			374			5			1			25			7			1,169		1,108		61			6
Other		19		32			55		31			29			(13	)		(41	)		(10	)		(34	)		106		396		(290	)		(73	)
Total revenue	$	1,209	$	1,200		$	1,183	$	1,179		$	1,161		$	9			1	%	$	48			4	%	$	3,592	$	3,800	($	208	)		(5	%)
Noninterest expense:
Consumer Banking	$	623	$	613		$	596	$	611		$	609		$	10			2	%	$	14			2	%	$	1,832	$	1,902	($	70	)		(4	%)
Commercial Banking		175		181			173		180			162			(6	)		(3	)		13			8			529		472		57			12
Other		—		47			41		33			39			(47	)		(100	)		(39	)		(100	)		88		194		(106	)		(55	)
Noninterest expense	$	798	$	841		$	810	$	824		$	810		($	43	)		(5	%)	($	12	)		(1	%)	$	2,449	$	2,568	($	119	)		(5	%)
Profit before provision for credit losses:
Consumer Banking	$	168	$	161		$	156	$	143		$	149		$	7			4	%	$	19			13	%	$	485	$	394	$	91			23	%
Commercial Banking		224		213			203		214			212			11			5			12			6			640		636		4			1
Other		19		(15	)		14		(2	)		(10	)		34			227			29			290			18		202		(184	)		(91	)
Profit before provision for credit losses	$	411	$	359		$	373	$	355		$	351		$	52			14	%	$	60			17	%	$	1,143	$	1,232	($	89	)		(7	%)

17

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPT 30,
															3Q15 Change																		2015 Change
	3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
															$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	64	$	60		$	63		$	64		$	66		$	4			7	%	($	2	)		(3	%)	$	187		$	195		($	8	)		(4	%)
Commercial Banking		3		7			(21	)		1			—			(4	)		(57	)		3			—			(11	)		(7	)		(4	)		(57	)
Other		9		10			16			7			11			(1	)		(10	)		(2	)		(18	)		35			59			(24	)		(41	)
Provision for credit losses	$	76	$	77		$	58		$	72		$	77		($	1	)		(1	%)	($	1	)		(1	%)	$	211		$	247		($	36	)		(15	%)
Income before income tax expense:
Consumer Banking	$	104	$	101		$	93		$	79		$	83		$	3			3	%	$	21			25	%	$	298		$	199		$	99			50	%
Commercial Banking		221		206			224			213			212			15			7			9			4			651			643			8			1
Other		10		(25	)		(2	)		(9	)		(21	)		35			140			31			148			(17	)		143			(160	)		(112	)
Income before income tax expense	$	335	$	282		$	315		$	283		$	274		$	53			19	%	$	61			22	%	$	932		$	985		($	53	)		(5	%)
Income tax expense:
Consumer Banking	$	36	$	35		$	32		$	27		$	29		$	1			3	%	$	7			24	%	$	103		$	69		$	34			49	%
Commercial Banking		76		71			77			73			73			5			7			3			4			224			222			2			1
Other		3		(14	)		(3	)		(14	)		(17	)		17			121			20			118			(14	)		26			(40	)		(154	)
Income tax expense	$	115	$	92		$	106		$	86		$	85		$	23			25	%	$	30			35	%	$	313		$	317		($	4	)		(1	%)
Net income:
Consumer Banking	$	68	$	66		$	61		$	52		$	54		$	2			3	%	$	14			26	%	$	195		$	130		$	65			50	%
Commercial Banking		145		135			147			140			139			10			7			6			4			427			421			6			1
Other		7		(11	)		1			5			(4	)		18			164			11			275			(3	)		117			(120	)		(103	)
Net income	$	220	$	190		$	209		$	197		$	189		$	30			16	%	$	31			16	%	$	619		$	668		($	49	)		(7	%)

18

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																						FOR THE NINE MONTHS ENDED SEPT 30,
AVERAGE BALANCES											3Q15 Change																2015 Change
	3Q15		2Q15		1Q15		4Q14		3Q14		2Q15						3Q14						2015		2014		2014
											$			%			$			%							$			%
Total assets:
Consumer Banking	$	53,206	$	52,489	$	51,602	$	50,546	$	49,012	$	717			1	%	$	4,194			9	%	$	52,438	$	48,398	$	4,040			8	%
Commercial Banking		43,113		42,617		41,606		40,061		38,854		496			1			4,259			11			42,451		37,951		4,500			12
Other		38,784		40,415		40,117		40,064		40,825		(1,631	)		(4	)		(2,041	)		(5	)		39,766		40,249		(483	)		(1	)
Total assets	$	135,103	$	135,521	$	133,325	$	130,671	$	128,691	($	418	)		—	%	$	6,412			5	%	$	134,655	$	126,598	$	8,057			6	%
Loans and leases1:
Consumer Banking	$	51,886	$	51,024	$	50,260	$	49,351	$	47,848	$	862			2	%	$	4,038			8	%	$	51,062	$	47,203	$	3,859			8	%
Commercial Banking		41,993		41,467		40,241		38,926		37,787		526			1			4,206			11			41,240		37,263		3,977			11
Other		3,367		3,569		3,784		4,001		4,218		(202	)		(6	)		(851	)		(20	)		3,572		4,424		(852	)		(19	)
Total loans and leases	$	97,246	$	96,060	$	94,285	$	92,278	$	89,853	$	1,186			1	%	$	7,393			8	%	$	95,874	$	88,890	$	6,984			8	%
Deposits2:
Consumer Banking	$	70,527	$	69,963	$	67,518	$	66,374	$	65,609	$	564			1	%	$	4,918			7	%	$	69,347	$	68,834	$	513			1	%
Commercial Banking		24,604		22,717		21,932		22,500		20,985		1,887			8			3,619			17			23,094		18,941		4,153			22
Other		5,859		5,853		6,195		5,923		5,082		6			—			777			15			5,967		4,038		1,929			48
Total deposits	$	100,990	$	98,533	$	95,645	$	94,797	$	91,676	$	2,457			2	%	$	9,314			10	%	$	98,408	$	91,813	$	6,595			7	%
Interest-earning assets:
Consumer Banking	$	51,928	$	51,061	$	50,294	$	49,382	$	47,885	$	867			2	%	$	4,043			8	%	$	51,100	$	47,236	$	3,864			8	%
Commercial Banking		42,070		41,535		40,344		39,039		37,927		535			1			4,143			11			41,323		37,395		3,928			11
Other		29,019		30,609		30,704		30,309		31,384		(1,590	)		(5	)		(2,365	)		(8	)		30,105		30,699		(594	)		(2	)
Total interest-earning assets	$	123,017	$	123,205	$	121,342	$	118,730	$	117,196	($	188	)		—	%	$	5,821			5	%	$	122,528	$	115,330	$	7,198			6	%

¹ Includes loans and leases held for sale.

² Includes deposits held for sale.

19

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

	QUARTERLY TRENDS																							FOR THE NINE MONTHS ENDED SEPT 30,
KEY METRICS																3Q15 Change														2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15				3Q14				2015			2014			2014
																bps				bps										bps
Net Interest Margin (NIM)
Consumer Banking		4.25	%		4.28	%		4.30	%		4.31	%		4.40	%		(3	)	—		(15	)	—		4.27	%		4.57	%		(30	)	—
Commercial Banking		2.81			2.76			2.77			2.87			2.82			5		—		(1	)	—		2.78			2.82			(4	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
NIM		2.76			2.72			2.77			2.80			2.77			4		—		(1	)	—		2.75			2.84			(9	)	—
Efficiency Ratio3
Consumer Banking		78.72	%		79.25	%		79.25	%		81.09	%		80.42	%		(53	)	—		(170	)	—		79.07	%		82.82	%		(375	)	—
Commercial Banking		43.75			46.07			46.01			45.48			43.35			(232	)	—		40		—		45.26			42.62			264		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
Efficiency Ratio		66.02			70.02			68.49			69.88			69.84			(400	)	—		(382	)	—		68.17			67.58			59		—
Loans to Deposits Ratio (average balances) (LDR)1
Consumer Banking		73.57	%		72.93	%		74.44	%		74.35	%		72.93	%		64		—		64		—		73.63	%		68.58	%		505		—
Commercial Banking		170.68			182.54			183.48			173.01			180.06			(1,186	)	—		(938	)	—		178.58			196.74			(1,816	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
LDR		96.29			97.49			98.58			97.34			98.01			(120	)	—		(172	)	—		97.43			96.82			61		—
Return on Average Total Tangible Assets (ROTA)3
Consumer Banking		0.51	%		0.51	%		0.48	%		0.40	%		0.44	%		—		—		7		—		0.50	%		0.36	%		14		—
Commercial Banking		1.34			1.27			1.43			1.38			1.42			7		—		(8	)	—		1.35			1.48			(13	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTA		0.68			0.59			0.67			0.63			0.61			9		—		7		—		0.65			0.74			(9	)	—
Return on Average Tangible Common Equity (ROTCE)2,3
Consumer Banking		5.67	%		5.66	%		5.30	%		4.30	%		4.57	%		1		—		110		—		5.55	%		3.76	%		179		—
Commercial Banking		12.24			11.69			13.15			12.76			13.10			55		—		(86	)	—		12.35			13.67			(132	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTCE		6.60			5.90			6.53			6.12			5.81			70		—		79		—		6.34			6.90			(56	)	—

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										SEPT 30, 2015 CHANGE
	Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2015						Sept 30, 2014
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	32,726	$	33,027	$	32,249	$	31,431	$	30,356	($	301	)		(1	%)	$	2,370			8	%
Commercial real estate		8,678		8,157		7,863		7,809		7,239		521			6			1,439			20
Leases		3,865		3,884		3,870		3,986		3,875		(19	)		—			(10	)		—
Total commercial		45,269		45,068		43,982		43,226		41,470		201			—			3,799			9
Residential mortgages		12,792		12,253		11,808		11,832		11,265		539			4			1,527			14
Home equity loans		2,842		3,022		3,212		3,424		3,635		(180	)		(6	)		(793	)		(22	)
Home equity lines of credit		14,707		14,917		15,127		15,423		15,558		(210	)		(1	)		(851	)		(5	)
Home equity loans serviced by others1		1,054		1,126		1,192		1,228		1,290		(72	)		(6	)		(236	)		(18	)
Home equity lines of credit serviced by others1		441		494		544		550		580		(53	)		(11	)		(139	)		(24	)
Automobile		13,876		13,727		13,179		12,706		12,080		149			1			1,796			15
Student		3,846		3,355		2,852		2,256		2,069		491			15			1,777			86
Credit card		1,628		1,613		1,588		1,693		1,676		15			1			(48	)		(3	)
Other retail		976		963		1,010		1,072		1,126		13			1			(150	)		(13	)
Total retail		52,162		51,470		50,512		50,184		49,279		692			1			2,883			6
Total loans and leases		97,431		96,538		94,494		93,410		90,749		893			1			6,682			7
Derivative receivable - commercial		828		658		733		622		542		170			26			286			53
Derivative receivable - retail		10		7		9		7		5		3			43			5			100
Total derivative receivable		838		665		742		629		547		173			26			291			53
Total credit-related assets		98,269		97,203		95,236		94,039		91,296		1,066			1			6,973			8
Undrawn commitments to extend credit - commercial		29,751		29,422		29,110		29,646		29,182		329			1			569			2
Financial standby letters of credit		2,077		2,181		2,292		2,315		2,498		(104	)		(5	)		(421	)		(17	)
Performance letters of credit		45		55		60		65		94		(10	)		(18	)		(49	)		(52	)
Commercial letters of credit		63		59		58		75		74		4			7			(11	)		(15	)
Marketing rights		47		49		51		51		51		(2	)		(4	)		(4	)		(8	)
Risk participation agreements		39		22		26		19		16		17			77			23			144
Total commercial lending-related arrangements		32,022		31,788		31,597		32,171		31,915		234			1			107			—
Undrawn commitments to extend credit - retail		25,755		26,465		26,114		26,253		26,151		(710	)		(3	)		(396	)		(2	)
Residential mortgage loans sold with recourse		11		12		10		11		11		(1	)		(8	)		—			—
Total retail lending-related arrangements		25,766		26,477		26,124		26,264		26,162		(711	)		(3	)		(396	)		(2	)
Total lending-related arrangements		57,788		58,265		57,721		58,435		58,077		(477	)		(1	)		(289	)		—
Total credit exposure	$	156,057	$	155,468	$	152,957	$	152,474	$	149,373	$	589			—	%	$	6,684			4	%
Memo: Total credit exposure by product category
Commercial exposure	$	78,119	$	77,514	$	76,312	$	76,019	$	73,927	$	605			1	%	$	4,192			6	%
Retail exposure		77,938		77,954		76,645		76,455		75,446		(16	)		—			2,492			3
Total credit exposure	$	156,057	$	155,468	$	152,957	$	152,474	$	149,373	$	589			—	%	$	6,684			4	%

¹ Our SBO portfolio consists of purchased loans and lines of credit 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															SEPT 30, 2015 CHANGE
	Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2015						Sept 30, 2014
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	88		$	83		$	97		$	114		$	93		$	5			6	%	($	5	)		(5	%)
Commercial real estate		42			42			60			50			83			—			—			(41	)		(49	)
Leases		—			—			1			—			—			—			—			—			—
Total commercial		130			125			158			164			176			5			4			(46	)		(26	)
Residential mortgages		324			329			347			345			351			(5	)		(2	)		(27	)		(8	)
Home equity loans		200			189			210			203			201			11			6			(1	)		—
Home equity lines of credit		214			254			270			257			218			(40	)		(16	)		(4	)		(2	)
Home equity loans serviced by others2		39			44			44			47			52			(5	)		(11	)		(13	)		(25	)
Home equity lines of credit serviced by others2		31			26			25			25			29			5			19			2			7
Automobile		38			30			30			21			17			8			27			21			124
Student		39			35			30			17			14			4			11			25			179
Credit card		15			14			16			17			16			1			7			(1	)		(6	)
Other retail		4			4			6			5			5			—			—			(1	)		(20	)
Total retail		904			925			978			937			903			(21	)		(2	)		1			—
Nonperforming loans and leases1		1,034			1,050			1,136			1,101			1,079			(16	)		(2	)		(45	)		(4	)
Commercial		1			1			1			3			3			—			—			(2	)		(67	)
Retail		38			37			37			39			39			1			3			(1	)		(3	)
Other real estate owned		39			38			38			42			42			1			3			(3	)		(7	)
Nonperforming assets	$	1,073		$	1,088		$	1,174		$	1,143		$	1,121		($	15	)		(1	%)	($	48	)		(4	%)
NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	131		$	126		$	159		$	167		$	179		$	5			4	%	($	48	)		(27	%)
Retail		942			962			1,015			976			942			(20	)		(2	)		—			—
Nonperforming assets	$	1,073		$	1,088		$	1,174		$	1,143		$	1,121		($	15	)		(1	%)	($	48	)		(4	%)
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.23	%		1.24	%		1.27	%		1.28	%		1.32	%		(1	) bps					(9	) bps
Allowance for loan and lease losses to nonperforming loans and leases		116.12			114.37			105.75			108.51			111.30			175	bps					482	bps
Nonperforming loans and leases to loans and leases		1.06			1.09			1.20			1.18			1.19			(3	) bps					(13	) bps
Nonperforming assets to total assets		0.79			0.79			0.86			0.86			0.85			—						(6	) bps
1MEMO:
Accruing loans past due 90 days or more included above	$	15		$	8		$	9		$	8		$	8		$	7			88	%	$	7			88	%

² Our SBO portfolio consists of purchased loans and lines of credit 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																									FOR THE NINE MONTHS ENDED SEPT 30,
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS														3Q15 Change																		2015 Change
	3Q15			2Q15		1Q15			4Q14			3Q14		2Q15						3Q14						2015			2014			2014
														$			%			$			%									$			%
GROSS CHARGE-OFFS:
Commercial	$	10		$	12	$	5		$	9		$	11	($	2	)		(17	%)	($	1	)		(9	%)	$	27		$	22		$	5			23	%
Commercial real estate		1			3		1			4			5		(2	)		(67	)		(4	)		(80	)		5			8			(3	)		(38	)
Leases		—			—		—			—			—		—			—			—			—			—			—			—			—
Total commercial		11			15		6			13			16		(4	)		(27	)		(5	)		(31	)		32			30			2			7
Residential mortgages		5			6		6			6			10		(1	)		(17	)		(5	)		(50	)		17			30			(13	)		(43	)
Home equity loans		8			6		9			11			16		2			33			(8	)		(50	)		23			44			(21	)		(48	)
Home equity lines of credit		11			17		22			16			19		(6	)		(35	)		(8	)		(42	)		50			64			(14	)		(22	)
Home equity loans serviced by others1		8			7		8			11			14		1			14			(6	)		(43	)		23			44			(21	)		(48	)
Home equity lines of credit serviced by others1		3			3		4			2			3		—			—			—			—			10			10			—			—
Automobile		31			24		23			16			9		7			29			22			244			78			25			53			212
Student		12			15		10			16			12		(3	)		(20	)		—			—			37			38			(1	)		(3	)
Credit card		14			16		15			15			15		(2	)		(13	)		(1	)		(7	)		45			49			(4	)		(8	)
Other retail		17			12		12			13			15		5			42			2			13			41			40			1			3
Total retail		109			106		109			106			113		3			3			(4	)		(4	)		324			344			(20	)		(6	)
Total gross charge-offs	$	120		$	121	$	115		$	119		$	129	($	1	)		(1	%)	($	9	)		(7	%)	$	356		$	374		($	18	)		(5	%)
GROSS RECOVERIES:
Commercial	$	3		$	5	$	6		$	4		$	7	($	2	)		(40	%)	($	4	)		(57	%)	$	14		$	31		($	17	)		(55	%)
Commercial real estate		3			3		22			7			5		—			—			(2	)		(40	)		28			16			12			75
Leases		—			—		—			—			—		—			—			—			—			—			—			—			—
Total commercial		6			8		28			11			12		(2	)		(25	)		(6	)		(50	)		42			47			(5	)		(11	)
Residential mortgages		3			2		3			2			2		1			50			1			50			8			9			(1	)		(11	)
Home equity loans		3			2		2			5			9		1			50			(6	)		(67	)		7			19			(12	)		(63	)
Home equity lines of credit		3			6		5			3			5		(3	)		(50	)		(2	)		(40	)		14			12			2			17
Home equity loans serviced by others1		5			5		3			6			6		—			—			(1	)		(17	)		13			15			(2	)		(13	)
Home equity lines of credit serviced by others1		2			2		2			1			2		—			—			—			—			6			4			2			50
Automobile		14			11		9			6			4		3			27			10			250			34			14			20			143
Student		3			3		3			3			1		—			—			2			200			9			6			3			50
Credit card		2			2		2			2			—		—			—			2			—			6			5			1			20
Other retail		4			2		4			—			—		2			100			4			—			10			—			10			—
Total retail		39			35		33			28			29		4			11			10			34			107			84			23			27
Total gross recoveries	$	45		$	43	$	61		$	39		$	41	$	2			5	%	$	4			10	%	$	149		$	131		$	18			14	%
NET CHARGE-OFFS (RECOVERIES):
Commercial	$	7		$	7	($	1	)	$	5		$	4	$	—			—	%	$	3			75	%	$	13		($	9	)	$	22			244	%
Commercial real estate		(2	)		—		(21	)		(3	)		—		(2	)		—			(2	)		—			(23	)		(8	)		(15	)		(188	)
Leases		—			—		—			—			—		—			—			—			—			—			—			—			—
Total commercial		5			7		(22	)		2			4		(2	)		(29	)		1			25			(10	)		(17	)		7			41
Residential mortgages		2			4		3			4			8		(2	)		(50	)		(6	)		(75	)		9			21			(12	)		(57	)
Home equity loans		5			4		7			6			7		1			25			(2	)		(29	)		16			25			(9	)		(36	)
Home equity lines of credit		8			11		17			13			14		(3	)		(27	)		(6	)		(43	)		36			52			(16	)		(31	)
Home equity loans serviced by others1		3			2		5			5			8		1			50			(5	)		(63	)		10			29			(19	)		(66	)
Home equity lines of credit serviced by others1		1			1		2			1			1		—			—			—			—			4			6			(2	)		(33	)
Automobile		17			13		14			10			5		4			31			12			240			44			11			33			300
Student		9			12		7			13			11		(3	)		(25	)		(2	)		(18	)		28			32			(4	)		(13	)
Credit card		12			14		13			13			15		(2	)		(14	)		(3	)		(20	)		39			44			(5	)		(11	)
Other retail		13			10		8			13			15		3			30			(2	)		(13	)		31			40			(9	)		(23	)
Total retail		70			71		76			78			84		(1	)		(1	)		(14	)		(17	)		217			260			(43	)		(17	)
Total net charge-offs (recoveries)	$	75		$	78	$	54		$	80		$	88	($	3	)		(4	%)	($	13	)		(15	%)	$	207		$	243		($	36	)		(15	%)

¹ Our SBO portfolio consists of purchased loans and lines of credit 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																											FOR THE NINE MONTHS ENDED SEPT 30,
																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES:
Commercial		0.08	%		0.10	%		(0.02	%)		0.06	%		0.04	%		(2	) bps					4	bps					0.05	%		(0.04	%)		9	bps
Commercial real estate		(0.11	)		(0.03	)		(1.07	)		(0.15	)		0.06			(8	) bps					(17	) bps					(0.39	)		(0.14	)		(25	) bps
Leases		—			—			—			—			—			—						—						—			(0.01	)		1	bps
Total commercial		0.04			0.07			(0.20	)		0.02			0.04			(3	) bps					—						(0.03	)		(0.05	)		2	bps
Residential mortgages		0.05			0.14			0.11			0.14			0.27			(9	) bps					(22	) bps					0.10			0.26			(16	) bps
Home equity loans		0.60			0.56			0.81			0.45			0.79			4	bps					(19	) bps					0.66			0.87			(21	) bps
Home equity lines of credit		0.21			0.29			0.46			0.34			0.36			(8	) bps					(15	) bps					0.32			0.45			(13	) bps
Home equity loans serviced by others1		1.12			0.70			1.49			1.67			2.43			42	bps					(131	) bps					1.11			2.76			(165	) bps
Home equity lines of credit serviced by others1		1.23			0.89			1.56			0.81			1.18			34	bps					5	bps					1.24			1.34			(10	) bps
Automobile		0.50			0.38			0.42			0.34			0.21			12	bps					29	bps					0.43			0.14			29	bps
Student		1.07			1.56			1.13			2.36			1.70			(49	) bps					(63	) bps					1.25			1.84			(59	) bps
Credit card		2.96			3.36			3.26			3.28			3.33			(40	) bps					(37	) bps					3.19			3.56			(37	) bps
Other retail		5.56			4.42			3.30			4.82			5.24			114	bps					32	bps					4.40			4.54			(14	) bps
Total retail		0.54			0.56			0.61			0.62			0.68			(2	) bps					(14	) bps					0.57			0.73			(16	) bps
Total loans and leases		0.31	%		0.33	%		0.23	%		0.35	%		0.38	%		(2	) bps					(7	) bps					0.29	%		0.37	%		(8	) bps
Memo: Average loans:
Commercial	$	32,832		$	32,855		$	31,911		$	30,962		$	30,186		($	23	)		—	%	$	2,646			9	%		32,536			29,666		$	2,870			10	%
Commercial real estate		8,406			7,947			7,700			7,427			7,216			459			6			1,190			16			8,020			7,067			953			13
Leases		3,936			3,894			3,895			3,874			3,789			42			1			147			4			3,909			3,743			166			4
Total commercial		45,174			44,696			43,506			42,263			41,191			478			1			3,983			10			44,465			40,476			3,989			10
Residential mortgages		12,470			11,980			11,855			11,647			11,001			490			4			1,469			13			12,104			10,420			1,684			16
Home equity loans		2,928			3,138			3,332			3,527			3,743			(210	)		(7	)		(815	)		(22	)		3,117			3,994			(877	)		(22	)
Home equity lines of credit		14,813			15,084			15,310			15,490			15,572			(271	)		(2	)		(759	)		(5	)		15,059			15,572			(513	)		(3	)
Home equity loans serviced by others1		1,086			1,134			1,193			1,252			1,317			(48	)		(4	)		(231	)		(18	)		1,151			1,386			(235	)		(17	)
Home equity lines of credit serviced by others1		425			469			522			561			591			(44	)		(9	)		(166	)		(28	)		479			626			(147	)		(23	)
Automobile		13,810			13,484			12,933			12,403			11,438			326			2			2,372			21			13,412			10,542			2,870			27
Student		3,530			3,029			2,623			2,142			1,983			501			17			1,547			78			3,064			2,150			914			43
Credit card		1,616			1,606			1,637			1,663			1,661			10			1			(45	)		(3	)		1,620			1,647			(27	)		(2	)
Other retail		939			986			1,041			1,097			1,153			(47	)		(5	)		(214	)		(19	)		988			1,216			(228	)		(19	)
Total retail		51,617			50,910			50,446			49,782			48,459			707			1			3,158			7			50,994			47,553			3,441			7
Total loans and leases	$	96,791		$	95,606		$	93,952		$	92,045		$	89,650		$	1,185			1	%	$	7,141			8	%	$	95,459		$	88,029		$	7,430			8	%

¹ Our SBO portfolio consists of purchased loans and lines of credit 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																										FOR THE NINE MONTHS ENDED SEPT 30,
															3Q15 Change																	2015 Change
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES	3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014		2014
															$			%			$			%								$			%
Allowance for loan and lease losses - beginning	$	1,201	$	1,202		$	1,195		$	1,201		$	1,210		($	1	)		—	%	($	9	)		(1	%)	$	1,195		$	1,221	($	26	)		(2	%)
Charge-offs:
Commercial		11		15			6			13			16			(4	)		(27	)		(5	)		(31	)		32			30		2			7
Retail		109		106			109			106			113			3			3			(4	)		(4	)		324			344		(20	)		(6	)
Total charge-offs		120		121			115			119			129			(1	)		(1	)		(9	)		(7	)		356			374		(18	)		(5	)
Recoveries:
Commercial		6		8			28			11			12			(2	)		(25	)		(6	)		(50	)		42			47		(5	)		(11	)
Retail		39		35			33			28			29			4			11			10			34			107			84		23			27
Total recoveries		45		43			61			39			41			2			5			4			10			149			131		18			14
Net charge-offs		75		78			54			80			88			(3	)		(4	)		(13	)		(15	)		207			243		(36	)		(15	)
Provision for loan and lease losses:
Commercial		15		(6	)		12			4			38			21			350			(23	)		(61	)		21			27		(6	)		(22	)
Retail		58		83			51			70			41			(25	)		(30	)		17			41			192			196		(4	)		(2	)
Total provision for loan and lease losses		73		77			63			74			79			(4	)		(5	)		(6	)		(8	)		213			223		(10	)		(4	)
Sale/Other		2		—			(2	)		—			—			2			—			2			—			—			—		—			—
Allowance for loan and lease losses - ending	$	1,201	$	1,201		$	1,202		$	1,195		$	1,201		$	—			—	%	$	—			—	%	$	1,201		$	1,201	$	—			—
Reserve for unfunded lending commitments - beginning	$	56	$	56		$	61		$	63		$	65		$	—			—	%	($	9	)		(14	%)	$	61		$	39	$	22			56	%
Provision for unfunded lending commitments		3		—			(5	)		(2	)		(2	)		3			—			5			250			(2	)		24		(26	)		(108	)
Reserve for unfunded lending commitments - ending		59		56			56			61			63			3			5			(4	)		(6	)		59			63		(4	)		(6	)
Total allowance for credit losses - ending	$	1,260	$	1,257		$	1,258		$	1,256		$	1,264		$	3			—	%	($	4	)		—	%	$	1,260		$	1,264	($	4	)		—	%

25

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)

	AS OF										SEPT 30, 2015 CHANGE
	Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2015						SEPT 30, 2014
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	23	$	21	$	35	$	20	$	14	$	2			10	%	$	9			64	%
Formula-based evaluation		611		600		599		585		591		11			2			20			3
Total commercial		634		621		634		605		605		13			2			29			5
Individually evaluated		104		107		107		109		116		(3	)		(3	)		(12	)		(10	)
Formula-based evaluation		522		529		517		542		543		(7	)		(1	)		(21	)		(4	)
Total retail		626		636		624		651		659		(10	)		(2	)		(33	)		(5	)
Total allowance for credit losses	$	1,260	$	1,257	$	1,258	$	1,256	$	1,264	$	3			—	%	($	4	)		—	%

26

CAPITAL AND RATIOS

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																Sept 30, 2015 Change																2015 Change
	Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2015						Sept 30, 2014						2015		2014		2014
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS1 (preliminary)
CET1 capital2	$	13,200		$	13,270		$	13,360		$	13,173		$	13,330		($	70	)		(1	%)	($	130	)		(1	%)
Tier 1 capital		13,447			13,517			13,360			13,173			13,330			(70	)		(1	)		117			1
Total capital		17,307			17,123			16,969			16,781			16,612			184			1			695			4
Risk-weighted assets		112,277			112,131			109,786			105,964			103,207			146			—			9,070			9
Adjusted average assets3		129,334			129,505			127,165			124,539			122,521			(171	)		—			6,813			6
CET1 capital ratio2		11.8	%		11.8	%		12.2	%		12.4	%		12.9	%
Tier 1 capital ratio		12.0			12.1			12.2			12.4			12.9
Total capital ratio		15.4			15.3			15.5			15.8			16.1
Tier 1 leverage ratio		10.4			10.4			10.5			10.6			10.9
Proforma Basel III fully phased-in common equity tier 1 capital ratio4		11.7			11.8			12.1			12.1			12.5
TANGIBLE COMMON EQUITY (period-end):
Stockholders’ common equity	$	19,353		$	19,339		$	19,564		$	19,268		$	19,383		$	14			—	%	($	30	)		—	%	$	19,353	$	19,383	($	30	)		—	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		3			4			5			6			6			(1	)		(25	)		(3	)		(50	)		3		6		(3	)		(50	)
Add: Deferred tax liabilities5		465			450			434			420			399			15			3			66			17			465		399		66			17
Total tangible common equity6	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	30			—	%	$	39			—	%	$	12,939	$	12,900	$	39			—	%
TANGIBLE COMMON EQUITY (average):
Stockholders’ common equity	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		($	130	)		(1	%)	($	150	)		(1	%)	$	19,352	$	19,463	($	111	)		(1	%)
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		4			5			5			6			6			(1	)		(20	)		(2	)		(33	)		5		7		(2	)		(29	)
Add: Deferred tax liabilities5		453			437			422			403			384			16			4			69			18			438		368		70			19
Total tangible common equity6	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		($	113	)		(1	%)	($	79	)		(1	%)	$	12,909	$	12,948	($	39	)		—	%
INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876	$	6,876	$	—			—	%
Other intangible assets		3			4			5			6			6			(1	)		(25	)		(3	)		(50	)		3		6		(3	)		(50	)
Total intangible assets	$	6,879		$	6,880		$	6,881		$	6,882		$	6,882		($	1	)		—	%	($	3	)		—	%	$	6,879	$	6,882	($	3	)		—	%

¹ Basel III transitional rules for institutions applying the standardized approach to calculating risk-weighted assets became effective January 1, 2015. The capital ratios and associated components after January 1, 2015 are prepared using the Basel III standardized transitional approach. The capital ratios and associated components for periods December 31, 2014 and prior are prepared under the Basel I general capital rule.

² CET1 capital under Basel III replaced tier 1 common capital under Basel I effective January 1, 2015.

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 Prior to Basel III becoming effective on January 1, 2015, this was a non-GAAP financial measure. For further information on this measure, refer to page 31.

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

⁶  These are non-GAAP financial measures. For further information on these measures, refer to page 30.

27

PER-SHARE RELATED INFORMATION

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

	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																3Q15 Change																2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015		2014		2014
EARNINGS PER SHARE DATA																$			%			$			%							$			%
Basic earnings per share:
Net income	$	220		$	190		$	209		$	197		$	189		$	30			16	%	$	31			16	%	$	619	$	668	($	49	)		(7	%)
Less: Preferred stock dividends		7			—			—			—			—			7			—			7			—			7		—		7			—
Net income available to common stockholders	$	213		$	190		$	209		$	197		$	189		$	23			12	%	$	24			13	%	$	612	$	668	($	56	)		(8	)
Net income available to common stockholders, excluding restructuring charges and special items1	$	213		$	215		$	215		$	217		$	202		($	2	)		(1	%)	$	11			5	%	$	643	$	573	$	70			12	%
Total weighted-average basic shares outstanding		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			(6,743,993	)		(1	)		(29,013,069	)		(5	)		538,279,222		559,998,324		(21,719,102	)		(4	)
Net income per share - basic	$	0.40		$	0.35		$	0.38		$	0.36		$	0.34		$	0.05			14	%	$	0.06			18	%	$	1.14	$	1.19	($	0.05	)		(4	%)
Net income per share, excluding restructuring charges and special items - basic1	$	0.40		$	0.40		$	0.39		$	0.40		$	0.36		$	—			—	%	$	0.04			11	%	$	1.20	$	1.02	$	0.18			18	%
Diluted earnings per share:
Net income applicable to common stockholders	$	213		$	190		$	209		$	197		$	189		$	23			12		$	24			13		$	612	$	668	($	56	)		(8	)
Net income applicable to common stockholders, excluding restructuring charges and special items1	$	213		$	215		$	215		$	217		$	202		($	2	)		(1	)	$	11			5		$	643	$	573	$	70			12
Total weighted-average basic shares outstanding		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			(6,743,993	)		(1	)		(29,013,069	)		(5	)		538,279,222		559,998,324		(21,719,102	)		(4	)
Add: Weighted-average dilutive shares		2,412,903			2,180,118			3,507,354			3,866,289			245,423			232,785			11			2,167,480			883			2,647,139		82,707		2,564,432			NM
Total weighted-average diluted shares outstanding		533,398,158			539,909,366			549,798,717			550,676,298			560,243,747			(6,511,208	)		(1	)		(26,845,589	)		(5	)		540,926,361		560,081,031		(19,154,670	)		(3	)
Net income per share - diluted	$	0.40		$	0.35		$	0.38		$	0.36		$	0.34		$	0.05			14	%	$	0.06			18	%	$	1.13	$	1.19	($	0.06	)		(5	%)
Net income per share, excluding restructuring charges and special items - diluted1	$	0.40		$	0.40		$	0.39		$	0.39		$	0.36		$	—			—	%	$	0.04			11	%	$	1.19	$	1.02	$	0.17			17	%
COMMON SHARES OUTSTANDING
Common shares - at end of period		527,636,510			537,149,717			547,490,812			545,884,519			559,998,324			(9,513,207	)		(2	%)		(32,361,814	)		(6	%)		527,636,510		559,998,324		(32,361,814	)		(6	%)
Cash dividends declared and paid per share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.68		$	—			—		($	0.58	)		(85	)	$	0.30	$	1.34	($	1.04	)		(78	)
Book value per share	$	36.68		$	36.00		$	35.73		$	35.30		$	34.61			0.68			2			2.07			6		$	36.68	$	34.61		2.07			6
Tangible book value per share1	$	24.52		$	24.03		$	23.96		$	23.46		$	23.04			0.49			2			1.48			6		$	24.52	$	23.04		1.48			6
Dividend payout ratio		25	%		28	%		26	%		28	%		203	%		(300	) bps					NM										NM
SHARE PRICE
High	$	28.18		$	28.71		$	25.84		$	25.60		$	23.57		($	0.53	)		(2	%)	$	4.61			20	%	$	28.71	$	23.57	$	5.14			22	%
Low		21.14			24.03			22.67			21.47			21.35			(2.89	)		(12	)		(0.21	)		(1	)		21.14		21.35		(0.21	)		(1	)
Close		23.86			27.31			24.13			24.86			23.42			(3.45	)		(13	)		0.44			2			23.86		23.42		0.44			2
Market Capitalization		12,589			14,670			13,211			13,571			13,115			(2,081	)		(14	)		(526	)		(4	)		12,589		13,115		(526	)		(4	)

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

28

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (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 restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Restructuring charges and special items include expenses related to our efforts to improve processes and enhance efficiencies, as well as rebranding, separation from RBS and regulatory expenses.

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”, “net income available to common stockholders”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income per average common share”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “tangible book value per common share”, “return on average tangible common equity”, “return on average total tangible assets” and “efficiency ratio” as part of our non-GAAP measures. Additionally, “pro forma Basel III fully phased-in common equity tier 1 capital” computations for periods prior to 1Q15 are presented 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 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 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																						FOR THE NINE MONTHS ENDED SEPT 30,
												3Q15 Change																	2015 Change
		3Q15		2Q15		1Q15		4Q14		3Q14		2Q15						3Q14						2015		2014			2014
												$			%			$			%								$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	353	$	360	$	347	$	339	$	341	($	7	)		(2	%)	$	12			4	%	$	1,060	$	1,339		($	279	)		(21	%)
Less: Special items - Chicago gain			—		—		—		—		—		—			—			—			—			—		288			(288	)		(100	)
Noninterest income, excluding special items (non-GAAP)	B	$	353	$	360	$	347	$	339	$	341	($	7	)		(2	%)	$	12			4	%	$	1,060	$	1,051		$	9			1	%
Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,209	$	1,200	$	1,183	$	1,179	$	1,161	$	9			1	%	$	48			4	%	$	3,592	$	3,800		($	208	)		(5	%)
Less: Special items - Chicago gain			—		—		—		—		—		—			—			—			—			—		288			(288	)		(100	)
Total revenue, excluding special items (non-GAAP)	D	$	1,209	$	1,200	$	1,183	$	1,179	$	1,161	$	9			1	%	$	48			4	%	$	3,592	$	3,512		$	80			2	%
Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	798	$	841	$	810	$	824	$	810	($	43	)		(5	%)	($	12	)		(1	%)	$	2,449	$	2,568		($	119	)		(5	%)
Less: Restructuring charges and special items	MM		—		40		10		33		21		(40	)		(100	)		(21	)		(100	)		50		136			(86	)		(63	)
Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	798	$	801	$	800	$	791	$	789	($	3	)		—	%	$	9			1	%	$	2,399	$	2,432		($	33	)		(1	%)
Net income, excluding restructuring charges and special items:
Net income (GAAP)	G	$	220	$	190	$	209	$	197	$	189	$	30			16	%	$	31			16	%	$	619	$	668		($	49	)		(7	%)
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		25		6		20		13		(25	)		(100	)		(13	)		(100	)		31		(95	)		126			133
Net income, excluding restructuring charges and special items (non-GAAP)	H	$	220	$	215	$	215	$	217	$	202	$	5			2	%	$	18			9	%	$	650	$	573		$	77			13	%
Net income available to common stockholders (GAAP), excluding restructuring charges and special items:
Net income available to common stockholders (GAAP)	I	$	213	$	190	$	209	$	197	$	189	$	23			12	%	$	24			13	%	$	612	$	668		($	56	)		(8	%)
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		25		6		20		13		(25	)		(100	)		(13	)		(100	)		31		(95	)		126			133
Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	J	$	213	$	215	$	215	$	217	$	202	($	2	)		(1	%)	$	11			5	%	$	643	$	573		$	70			12	%

29

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

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																	3Q15 Change																		2015 Change
		3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																	$			%			$			%									$			%
Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	K	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		($	130	)		(1	%)	($	150	)		(1	%)	$	19,352		$	19,463		($	111	)		(1	%)
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	J/K		4.40	%		4.45	%		4.49	%		4.48	%		4.14	%		(5	)bps					26	bps					4.45	%		3.94	%		51 bps
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	L	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		($	130	)		(1	%)	($	150	)		(1	%)	$	19,352		$	19,463		($	111	)		(1	%)
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			4			5			5			6			6			(1	)		(20	)		(2	)		(33	)		5			7			(2	)		(29	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			453			437			422			403			384			16			4			69			18			438			368			70			19
Average tangible common equity (non-GAAP)	M	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		($	113	)		(1	%)	($	79	)		(1	%)	$	12,909		$	12,948		($	39	)		—	%
Return on average tangible common equity (non-GAAP)	I/M		6.60	%		5.90	%		6.53	%		6.12	%		5.81	%		70	bps					79	bps					6.34	%		6.90	%		(56	)bps
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	J/M		6.60	%		6.67	%		6.73	%		6.76	%		6.22	%		(7	)bps					38	bps					6.67	%		5.92	%		75	bps
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	N	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/N		0.65	%		0.64	%		0.65	%		0.66	%		0.62	%		1	bps		3	bps								0.65	%		0.61	%		4	bps
Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	N	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			4			5			5			6			6			(1	)		(20	)		(2	)		(33	)		5			7			(2	)		(29	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			453			437			422			403			384			16			4			69			18			438			368			70			19
Average tangible assets (non-GAAP)	O	$	128,676		$	129,077		$	126,866		$	124,192		$	122,193		($	401	)		—	%	$	6,483			5	%	$	128,212		$	120,083		$	8,129			7	%
Return on average total tangible assets (non-GAAP)	G/O		0.68	%		0.59	%		0.67	%		0.63	%		0.61	%		9	bps		7	bps								0.65	%		0.74	%		(9	)bps
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/O		0.68	%		0.67	%		0.69	%		0.69	%		0.66	%		1	bps		2	bps								0.68	%		0.64	%		4	bps
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	856		$	840		$	836		$	840		$	820		$	16			2	%	$	36			4	%	$	2,532		$	2,461		$	71			3	%
Add: Noninterest income (GAAP)			353			360			347			339			341			(7	)		(2	)		12			4			1,060			1,339			(279	)		(21	)
Total revenue (GAAP)	C	$	1,209		$	1,200		$	1,183		$	1,179		$	1,161		$	9			1	%	$	48			4	%	$	3,592		$	3,800		($	208	)		(5	%)
Efficiency ratio (non-GAAP)	E/C		66.02	%		70.02	%		68.49	%		69.88	%		69.84	%		(400	)bps					(382	)bps					68.17	%		67.58	%		59	bps
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		66.02	%		66.70	%		67.65	%		67.11	%		68.02	%		(68	)bps					(200	)bps					66.78	%		69.23	%		(245	)bps

30

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

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																	3Q15 Change																2015 Change
		3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015		2014		2014
																	$			%			$			%							$			%
Tangible book value per common share:
Common shares - at end of period (GAAP)	P		527,636,510			537,149,717			547,490,812			545,884,519			559,998,324			(9,513,207	)		(2	)%		(32,361,814	)		(6	)%		527,636,510		559,998,324		(32,361,814	)		(6	%)
Stockholders’ equity (GAAP)		$	19,353		$	19,339		$	19,564		$	19,268		$	19,383		$	14			—		($	30	)		—		$	19,353	$	19,383	($	30	)		—
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets (GAAP)			3			4			5			6			6			(1	)		(25	)		(3	)		(50	)		3		6		(3	)		(50	)
Add: Deferred tax liabilities related to goodwill (GAAP)			465			450			434			420			399			15			3			66			17			465		399		66			17
Tangible common equity (non-GAAP)	Q	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	30			—	%	$	39			—	%	$	12,939	$	12,900	$	39			—	%
Tangible book value per common share (non-GAAP)	Q/P	$	24.52		$	24.03		$	23.96		$	23.46		$	23.04		$	0.49			2	%	$	1.48			6	%	$	24.52	$	23.04	$	1.48			6	%
Net income per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	R		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			(6,743,993	)		(1	%)		(29,013,069	)		(5	%)		538,279,222		559,998,324		(21,719,102	)		(4	%)
Average common shares outstanding - diluted (GAAP)	S		533,398,158			539,909,366			549,798,717			550,676,298			560,243,747			(6,511,208	)		(1	)		(26,845,589	)		(5	)		540,926,361		560,081,031		(19,154,670	)		(3	)
Net income available to common stockholders (GAAP)	I	$	213		$	190		$	209		$	197		$	189		$	23			12		$	24			13		$	612	$	668	($	56	)		(8	)
Net income per average common share - basic (GAAP)	I/R		0.40			0.35			0.38			0.36			0.34			0.05			14			0.06			18			1.14		1.19		(0.05	)		(4	)
Net income per average common share - diluted (GAAP)	I/S		0.40			0.35			0.38			0.36			0.34			0.05			14			0.06			18			1.13		1.19		(0.06	)		(5	)
Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	J		213			215			215			217			202			(2	)		(1	)		11			5			643		573		70			12
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	J/R		0.40			0.40			0.39			0.40			0.36			—			—			0.04			11			1.20		1.02		0.18			18
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	J/S		0.40			0.40			0.39			0.39			0.36			—			—			0.04			11			1.19		1.02		0.17			17
Pro forma Basel III fully phased-in common equity tier 1 capital ratio1:
Common equity tier 1 (regulatory)		$	13,200		$	13,270		$	13,360		$	13,173		$	13,330
Less: Change in DTA and other threshold deductions (GAAP)			2			3			3			(6	)		(5	)
Pro forma Basel III fully phased-in common equity tier 1 (non-GAAP)	T	$	13,198		$	13,267		$	13,357		$	13,179		$	13,335
Risk-weighted assets (regulatory general risk weight approach)			112,277			112,131			109,786			105,964			103,207
Add: Net change in credit and other risk-weighted assets (regulatory)			243			247			242			2,882			3,207
Basel III standardized approach risk-weighted assets (non-GAAP)	U	$	112,520		$	112,378		$	110,028		$	108,846		$	106,414
Pro forma Basel III fully phased-in common equity tier 1 capital ratio (non-GAAP)1	T/U		11.7	%		11.8	%		12.1	%		12.1	%		12.5	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	V	$	404		$	411		$	419		$	397		$	409		($	7	)		(2	%)	($	5	)		(1	%)	$	1,234	$	1,281	($	47	)		(4	%)
Less: Restructuring charges and special items			—			6			(1	)		1			—			(6	)		(100	)		—			—			5		43		(38	)		(88	)
Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	W	$	404		$	405		$	420		$	396		$	409		($	1	)		—	%	($	5	)		(1	%)	$	1,229	$	1,238	($	9	)		(1	%)

¹  Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume 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.

31

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

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPT 30,
																3Q15 Change																	2015 Change
		3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014		2014
																$			%			$			%								$			%
Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	X	$	89	$	99		$	79		$	106		$	106		($	10	)		(10	%)	($	17	)		(16	%)	$	267		$	314	($	47	)		(15	%)
Less: Restructuring charges and special items			—		16			8			18			19			(16	)		(100	)		(19	)		(100	)		24			60		(36	)		(60	)
Outside services, excluding restructuring charges and special items (non-GAAP)	Y	$	89	$	83		$	71		$	88		$	87		$	6			7	%	$	2			2	%	$	243		$	254	($	11	)		(4	%)
Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	Z	$	75	$	90		$	80		$	81		$	77		($	15	)		(17	%)	($	2	)		(3	%)	$	245		$	245	$	—			—	%
Less: Restructuring charges and special items			—		15			2			5			2			(15	)		(100	)		(2	)		(100	)		17			11		6			55
Occupancy, excluding restructuring charges and special items (non-GAAP)	AA	$	75	$	75		$	78		$	76		$	75		$	—			—	%	$	—			—	%	$	228		$	234	($	6	)		(3	%)
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	BB	$	62	$	65		$	63		$	63		$	58		($	3	)		(5	%)	$	4			7	%	$	190		$	187	$	3			2	%
Less: Restructuring charges and special items			—		—			1			1			—			—			—			—			—			1			3		(2	)		(67	)
Equipment expense, excluding restructuring charges and special items (non-GAAP)	CC	$	62	$	65		$	62		$	62		$	58		($	3	)		(5	%)	$	4			7	%	$	189		$	184	$	5			3	%
Amortization of software, excluding restructuring charges and special items:
Amortization of software	DD	$	35	$	37		$	36		$	43		$	38		($	2	)		(5	%)	($	3	)		(8	%)	$	108		$	102	$	6			6	%
Less: Restructuring charges and special items			—		—			—			6			—			—			—			—			—			—			—		—			—
Amortization of software, excluding restructuring charges and special items (non-GAAP)	EE	$	35	$	37		$	36		$	37		$	38		($	2	)		(5	%)	($	3	)		(8	%)	$	108		$	102	$	6			6	%
Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	FF	$	133	$	139		$	133		$	134		$	122		($	6	)		(4	%)	$	11			9	%	$	405		$	439	($	34	)		(8	%)
Less: Restructuring charges and special items			—		3			—			2			—			(3	)		(100	)		—			—			3			19		(16	)		(84	)
Other operating expense, excluding restructuring charges and special items (non-GAAP)	GG	$	133	$	136		$	133		$	132		$	122		($	3	)		(2	%)	$	11			9	%	$	402		$	420	($	18	)		(4	%)
Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,209	$	1,200		$	1,183		$	1,179		$	1,161		$	9			1	%	$	48			4	%	$	3,592		$	3,512	$	80			2	%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		798		801			800			791			789			(3	)		—			9			1			2,399			2,432		(33	)		(1	)
Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	HH	$	411	$	399		$	383		$	388		$	372		$	12			3	%	$	39			10	%	$	1,193		$	1,080	$	113			10	%
Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (GAAP)	II	$	335	$	282		$	315		$	283		$	274		$	53			19	%	$	61			22	%	$	932		$	985	($	53	)		(5	%)
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			—		(40	)		(10	)		(33	)		(21	)		40			100			21			100			(50	)		152		(202	)		(133	)
Income before income tax expense, excluding restructuring charges and special items (non-GAAP)	JJ	$	335	$	322		$	325		$	316		$	295		$	13			4	%	$	40			14	%	$	982		$	833	$	149			18	%
Income tax expense, excluding restructuring charges and special items:
Income tax expense (GAAP)	KK	$	115	$	92		$	106		$	86		$	85		$	23			25	%	$	30			35	%	$	313		$	317	($	4	)		(1	%)
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			—		(15	)		(4	)		(13	)		(8	)		15			100			8			100			(19	)		57		(76	)		(133	)
Income tax expense, excluding restructuring charges and special items (non-GAAP)	LL	$	115	$	107		$	110		$	99		$	93		$	8			7	%	$	22			24	%	$	332		$	260	$	72			28	%
Restructuring charges and special expense items include:
Restructuring charges		$	—	$	25		$	1		$	10		$	1		($	25	)		(100	%)	($	1	)		(100	%)		26			104		(78	)		(75	%)
Special items			—		15			9			23			20			(15	)		(100	)		(20	)		(100	)		24			32		(8	)		(25	)
Restructuring charges and special expense items	MM	$	—	$	40		$	10		$	33		$	21		($	40	)		(100	%)	($	21	)		(100	%)	$	50		$	136	($	86	)		(63	%)

32

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(dollars in millions)

		THREE MONTHS ENDED SEPT 30,											THREE MONTHS ENDED JUNE 30,												THREE MONTHS ENDED MAR 31,
		2015											2015												2015
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	68		$	145		$	7	$	220		$	66		$	135		($	11	)	$	190		$	61		$	147		$	1	$	209
Less: Preferred stock dividends			—			—			7		7			—			—			—			—			—			—			—		—
Net income available to common stockholders	B	$	68		$	145		$	—	$	213		$	66		$	135		($	11	)	$	190		$	61		$	147		$	1	$	209
Return on average tangible common equity
Average common equity (GAAP)	C	$	4,791		$	4,722		$	9,748	$	19,261		$	4,681		$	4,625		$	10,085		$	19,391		$	4,649		$	4,526		$	10,232	$	19,407
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—						6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			4		4			—			—			5			5			—			—			5		5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			453		453			—			—			437			437			—			—			422		422
Average tangible common equity (non-GAAP)	D	$	4,791		$	4,722		$	3,321	$	12,834		$	4,681		$	4,625		$	3,641		$	12,947		$	4,649		$	4,526		$	3,773	$	12,948
Return on average tangible common equity (non-GAAP)	B/D		5.67	%		12.24	%		NM		6.60	%		5.66	%		11.69	%		NM			5.90	%		5.30	%		13.15	%		NM		6.53	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	53,206		$	43,113		$	38,784	$	135,103		$	52,489		$	42,617		$	40,415		$	135,521		$	51,602		$	41,606		$	40,117	$	133,325
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—						6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			4		4			—			—			5			5			—			—			5		5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			453		453			—			—			437			437			—			—			422		422
Average tangible assets (non-GAAP)	F	$	53,206		$	43,113		$	32,357	$	128,676		$	52,489		$	42,617		$	33,971		$	129,077		$	51,602		$	41,606		$	33,658	$	126,866
Return on average total tangible assets (non-GAAP)	A/F		0.51	%		1.34	%		NM		0.68	%		0.51	%		1.27	%		NM			0.59	%		0.48	%		1.43	%		NM		0.67	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	623		$	175		$	—	$	798		$	613		$	181		$	47		$	841		$	596		$	173		$	41	$	810
Net interest income (GAAP)			556			299			1		856			544			286			10			840			533			276			27		836
Noninterest income (GAAP)			235			100			18		353			230			108			22			360			219			100			28		347
Total revenue	H	$	791		$	399		$	19	$	1,209		$	774		$	394		$	32		$	1,200		$	752		$	376		$	55	$	1,183
Efficiency ratio (non-GAAP)	G/H		78.72	%		43.75	%		NM		66.02	%		79.25	%		46.07	%		NM			70.02	%		79.25	%		46.01	%		NM		68.49	%

33

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)

		THREE MONTHS ENDED DEC 31,											THREE MONTHS ENDED SEPT 30,
		2014											2014
		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
Less: Preferred stock dividends			—			—			—		—			—			—			—			—
Net income available to common stockholders	B	$	52		$	140		$	5	$	197		$	54		$	139		($	4	)	$	189
Return on average tangible common equity
Average common equity (GAAP)	C	$	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)	D	$	4,756		$	4,334		$	3,640	$	12,730		$	4,685		$	4,205		$	4,023		$	12,913
Return on average tangible common equity (non-GAAP)	B/D		4.30	%		12.76	%		NM		6.12	%		4.57	%		13.10	%		NM			5.81	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	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)	F	$	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/F		0.40	%		1.38	%		NM		0.63	%		0.44	%		1.42	%		NM			0.61	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	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	H	$	754		$	394		$	31	$	1,179		$	758		$	374		$	29		$	1,161
Efficiency ratio (non-GAAP)	G/H		81.09	%		45.48	%		NM		69.88	%		80.42	%		43.35	%		NM			69.84	%

34

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)

		FOR THE NINE MONTHS ENDED SEPT 30,
		2015												2014
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	195		$	427		($	3	)	$	619		$	130		$	421		$	117	$	668
Less: Preferred stock dividends			—			—			7			7			—			—			—		—
Net income available to common stockholders	B	$	195		$	427		($	10	)	$	612		$	130		$	421		$	117	$	668
Return on average tangible common equity
Average common equity (GAAP)	C	$	4,708		$	4,625		$	10,019		$	19,352		$	4,635		$	4,120		$	10,708	$	19,463
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			438			438			—			—			368		368
Average tangible common equity (non-GAAP)	D	$	4,708		$	4,625		$	3,576		$	12,909		$	4,635		$	4,120		$	4,193	$	12,948
Return on average tangible common equity (non-GAAP)	B/D		5.55	%		12.35	%		NM			6.34	%		3.76	%		13.67	%		NM		6.90	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	52,438		$	42,451		$	39,766		$	134,655		$	48,398		$	37,951		$	40,249	$	126,598
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			438			438			—			—			368		368
Average tangible assets (non-GAAP)	F	$	52,438		$	42,451		$	33,323		$	128,212		$	48,398		$	37,951		$	33,734	$	120,083
Return on average total tangible assets (non-GAAP)	A/F		0.50	%		1.35	%		NM			0.65	%		0.36	%		1.48	%		NM		0.74	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	1,832		$	529		$	88		$	2,449		$	1,902		$	472		$	194	$	2,568
Net interest income (GAAP)			1,633			861			38			2,532			1,615			790			56		2,461
Noninterest income (GAAP)			684			308			68			1,060			681			318			340		1,339
Total revenue	H	$	2,317		$	1,169		$	106		$	3,592		$	2,296		$	1,108		$	396	$	3,800
Efficiency ratio (non-GAAP)	G/H		79.07	%		45.26	%		NM			68.17	%		82.82	%		42.62	%		NM		67.58	%

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FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. 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 and business restrictions 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 or share repurchases 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 Part I, Item 1A in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on March 3, 2015.

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