8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 20, 2017

CITIZENS FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-36636	05-0412693
(State or other jurisdiction of incorporation )	(Commission File No.)	(IRS Employer Identification No.)
One Citizens Plaza Providence, RI		02903
(Address of principal executive offices)		(Zip code)

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

Not Applicable

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

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

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

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

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

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

Item 2.02 Results of Operations and Financial Condition.

On January 20, 2017, Citizens Financial Group, Inc. issued a press release reporting fourth quarter and full year 2016 earnings and posted on its website the press release, an earnings release presentation, and a financial supplement. Copies of the press release, earnings release presentation, and financial supplement are being furnished as Exhibits 99.1, 99.2 and 99.3, respectively.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibit 99.1	Citizens Financial Group, Inc. press release dated January 20, 2017
	Exhibit 99.2	Citizens Financial Group, Inc. earnings release presentation issued January 20, 2017
	Exhibit 99.3	Citizens Financial Group, Inc. financial supplement for fourth quarter and full year 2016

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/ Stephen T. Gannon
	Stephen T. Gannon
	Executive Vice President, General Counsel and Chief Legal Officer

Date: January 20, 2017

EXHIBIT INDEX

Exhibit Number	Description
99.1	Citizens Financial Group, Inc. press release dated January 20, 2017
99.2	Citizens Financial Group, Inc. earnings release presentation issued January 20, 2017
99.3	Citizens Financial Group, Inc. financial supplement for fourth quarter and full year 2016

EX-99.1

Exhibit 99.1

Citizens Financial Group, Inc. Reports Fourth Quarter Net Income of $282 Million and Diluted EPS of $0.55

ROTCE of 8.4% in fourth quarter 2016 with 6% positive operating leverage year over year*

Fourth quarter 2016 net income up 28% and diluted EPS up 31% vs. year ago quarter

2016 net income of $1.0 billion up 24% and $1.97 diluted EPS up 27% from 2015

2016 Adjusted net income up 18% and diluted EPS up 20% from Adjusted 2015*

PROVIDENCE, RI (January 20, 2017) Citizens Financial Group, Inc. (NYSE: CFG or “Citizens”) today reported fourth quarter net income of $282 million, or $0.55 per diluted common share, up 28% and 31%, respectively, from $221 million and $0.42 per diluted common share in fourth quarter 2015. Compared with third quarter 2016 results, which included a $19 million after-tax benefit from notable items largely related to the TDR Transaction gain, net income decreased 5% from $297 million and diluted earnings per common share (“EPS”) decreased 2% from $0.56. Fourth quarter 2016 net income available to common stockholders increased $11 million, or 4%, from Adjusted third quarter 2016 levels* and diluted EPS increased $0.03, or 6%, from Adjusted third quarter 2016.

2016 net income available to common stockholders of $1.03 billion increased $198 million, or 24%, from 2015 with diluted EPS of $1.97 up $0.42, or 27%. 2016 Adjusted net income available to common stockholders* of $1.01 billion increased $148 million, or 17%, and Adjusted diluted EPS of $1.93 increased $0.32, or 20%, versus Adjusted 2015 results.

Fourth quarter 2016 Return on Average Tangible Common Equity* (“ROTCE”) of 8.4% compares to 8.6% in third quarter 2016, 8.0% on an Adjusted basis* and 6.7% in fourth quarter 2015.

“We are pleased to report another strong quarter with improving results, as we continue to run the bank better and deliver well for all stakeholders,” said Chairman and Chief Executive Officer Bruce Van Saun. “We remain focused on executing on our strategic initiatives that drive good top line growth, expanded capabilities and positive operating leverage. We enter 2017 with good momentum and believe we are well-positioned to capitalize on an improving economic and interest rate environment.”

Citizens also announced its board of directors declared a quarterly cash dividend of $0.14 per common share, an increase of $0.02 per share. The dividend is payable on February 16, 2017 to shareholders of record at the close of business on February 2, 2017.

*Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the end of this release for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. “Adjusted” results exclude restructuring charges, special items and/or notable items, as applicable. Where there is a reference to an “Adjusted” result in a paragraph, all measures that follow that “Adjusted” result are also “Adjusted” when applicable.

Citizens Financial Group, Inc.

Fourth Quarter 2016 vs. Third Quarter 2016

Key Highlights

• Fourth quarter highlights include net interest income growth of 4%, reflecting 2% average loan growth and a six basis point improvement in net interest margin. Results also reflect continued focus on improving efficiency and returns with an efficiency ratio of 62% and ROTCE of 8.4%.*

• Tangible book value per common share of $25.69; common shares outstanding decreased 6.2 million, or 1%.

Results

• Total revenue of $1.4 billion decreased 1%, reflecting the impact of the third quarter $72 million TDR Transaction gain. On an Adjusted basis*, total revenue increased 4%.

• Net interest income of $986 million increased $41 million, given 2% average loan growth and a six basis increase in net interest margin to 2.90%, driven by higher loan yields including the benefit of higher interest rates.

• Noninterest income of $377 million decreased $58 million from third quarter levels that included the benefit of the TDR Transaction gain. On an Adjusted basis*, noninterest income was up 2%, reflecting higher mortgage banking income, foreign exchange and letter of credit fees, and an increase in interest rate products and leasing fees in other income.

• Noninterest expense of $847 million decreased $20 million, or 2%, from third quarter levels that included $36 million of notable items. On an Adjusted basis*, noninterest expense increased $16 million, or 2%, reflecting an increase in other expense, outside services and equipment expense with all other categories relatively stable.

• Efficiency ratio of 62% improved 70 basis points; on an Adjusted basis*, efficiency ratio improved 113 basis points.

• Provision for credit losses of $102 million increased $16 million, driven by a $14 million reduction in recoveries of prior-period charge-offs from relatively high third quarter levels.

Balance Sheet

• Average interest-earning assets increased $3.1 billion, or 2%, driven by continued loan growth.

• Average deposits increased $2.5 billion, or 2%, reflecting growth in every category with particular strength in demand deposits, money market and term.

• Nonperforming loans and leases (“NPLs”) to total loans and leases ratio of 0.97% improved from 1.05%, reflecting a reduction in both retail and commercial nonperforming loans. Allowance coverage of NPLs was 118% compared with 112%.

• Net charge-offs of 39 basis points increased seven basis points from third quarter levels, driven by the reduction in recoveries of prior-period charge-offs and a methodology change in auto, which resulted in a $7 million, or 3 basis point, impact.

• Robust capital strength with a common equity tier 1 (“CET1”) risk-based capital ratio of 11.2%.

• Repurchased 6.3 million shares of common stock at an average price of $28.71, returning $180 million to shareholders.

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Citizens Financial Group, Inc.

Fourth Quarter 2016 vs. Fourth Quarter 2015

Key Highlights

• Fourth quarter results include a 28% increase in net income available to common stockholders, highlighted by strong revenue growth of 11%, driven by strength in net interest income with 8% average loan growth and a 13 basis point increase in net interest margin as well as noninterest income growth of 4%.

• Year-over-year operating leverage of 6.1%, a 358 basis point improvement in the efficiency ratio and a 168 basis point improvement in ROTCE, reflecting focus on top line growth and strong expense discipline, while reinvesting in technology and business initiatives to drive future growth.*

Results

• Total revenue of $1.4 billion increased $131 million, or 11%, reflecting solid net interest income and noninterest income growth.

• Net interest income increased 13%, reflecting 8% average loan growth and a 13 basis point improvement in net interest margin.

• Net interest margin of 2.90% reflects improved loan yields, driven by higher rates and balance sheet optimization initiatives, partially offset by a reduction in investment portfolio yields and higher deposit costs.

• Noninterest income increased 4%, driven by strength in capital markets, mortgage banking, other income and foreign exchange and letter of credit fees. These results were partially offset by lower card fees, including the impact of the card reward accounting change, a reduction in securities gains and lower trust and investment services fees and service charges and fees.

• Noninterest expense increased 5%, driven by growth in salaries and employee benefits largely related to higher incentive compensation tied to revenue, as well as an increase in other expense.

• Provision for credit losses of $102 million increased $11 million, or 12%, reflecting higher net charge-offs in commercial, largely commodities-related credits and an increase in retail given a one-time methodology change in auto.

• ROTCE* of 8.4% improved 168 basis points.

Balance Sheet

• Average interest-earning assets increased $10.6 billion, or 8%, driven by strong loan growth and an increase in the securities portfolio.

• Average deposits increased $7.8 billion, or 8%, on strength in low-cost core deposits.

• NPLs to total loans and leases ratio of 0.97% improved from 1.07%, as an underlying reduction in retail nonperforming loans more than offset an increase in commercial nonperforming loans, largely commodities-related borrowers. Allowance coverage of NPLs of 118% compares with 115%.

• Net charge-offs of 39 basis points of loans increased eight basis points, reflecting an increase in both commercial and retail categories and included a methodology change in auto, which resulted in a $7 million, or 3 basis point, impact.

3

Citizens Financial Group, Inc.

Update on Plan Execution

Consumer Banking

• Performance paced by solid loan growth with continued traction in student, other retail unsecured and mortgage loans, with improved consumer loan yields tied to the benefit of improved mix.

• Sales force expansion continued in 2016 with an increase of 96 mortgage loan officers to 538 at year end, with 43 in fourth quarter, and the addition of 42 financial consultants to 362 at year end, with 12 in fourth quarter.

• Citizens Checkup, our needs-based approach for serving retail customers, has resulted in approximately 400,000 scheduled appointments in 2016, with high levels of customer satisfaction.

Commercial Banking

• Delivered solid performance across most fee activities led by Capital Markets, Treasury Solutions and Interest Rate Products. Generated 10% average loan growth from the year-ago quarter, reflecting strength in Mid-corporate and Industry Verticals, Commercial Real Estate and Franchise Finance. Delivered total average deposit growth of 20% versus the prior-year quarter.

Efficiency and balance sheet optimization strategies

• Tapping Our Potential (“TOP”) initiatives remain on track. In 2016, TOP II delivered approximately $105 million of annual pre-tax benefits. TOP III is expected to deliver pre-tax revenue and expense run-rate benefits of $100 million to $115 million, including $20 million of tax benefits in 2017.

• Initiatives to shift loan portfolio mix to higher-return categories continue to deliver benefits to portfolio yields; have extracted capital from TDR and aircraft lease portfolios; managing deposit pricing to minimize cost while achieving growth objectives.

Full-Year 2016 vs. Full-Year 2015

• Total revenue of $5.3 billion increased $431 million, or 9%, and Adjusted revenue growth* of 8% driven by strength in net interest income, reflecting 8% average loan growth and an 11 basis point improvement in net interest margin.

• Noninterest expense and Adjusted noninterest expense* increased 3%, with positive operating leverage of 4.2%.

• Efficiency ratio of 64% improved 376 basis points; 260 basis points on an Adjusted basis.*

• Net income increased 24% with Adjusted net income* up 18%.

• ROTCE of 7.7%, with Adjusted ROTCE of 7.6% higher by 91 basis points.*

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Citizens Financial Group, Inc.

	Quarterly trends															Full year
Earnings highlights										4Q16 change from												2016 change
($s in millions, except per share data)	4Q16			3Q16			4Q15			3Q16			4Q15			2016			2015			from 2015
Net interest income	$	986		$	945		$	870		$	41		$	116		$	3,758		$	3,402		$	356
Noninterest income		377			435			362			(58	)		15			1,497			1,422			75
Total revenue		1,363			1,380			1,232			(17	)		131			5,255			4,824			431
Noninterest expense		847			867			810			(20	)		37			3,352			3,259			93
Pre-provision profit		516			513			422			3			94			1,903			1,565			338
Provision for credit losses		102			86			91			16			11			369			302			67
Net income		282			297			221			(15	)		61			1,045			840			205
Preferred dividends		—			7			—			(7	)		—			14			7			7
Net income available to common stockholders		282			290			221			(8	)		61			1,031			833			198
After-tax restructuring charges, special items and notable Items	$	—		$	(19	)	$	—		$	19		$	—		$	(19	)	$	31		$	(50	)
Adjusted net income available to common stockholders*	$	282		$	271		$	221		$	11		$	61		$	1,012		$	864		$	148
Average common shares outstanding
Basic (in millions)		512.0			519.5			527.6			(7.4	)		(15.6	)		522.1			535.6			(13.5	)
Diluted (in millions)		513.9			521.1			530.3			(7.2	)		(16.4	)		523.9			538.2			(14.3	)
Diluted earnings per share	$	0.55		$	0.56		$	0.42		$	(0.01	)	$	0.13		$	1.97		$	1.55		$	0.42
Adjusted diluted earnings per share*	$	0.55		$	0.52		$	0.42		$	0.03		$	0.13		$	1.93		$	1.61		$	0.32
Key performance metrics*
Net interest margin		2.90	%		2.84	%		2.77	%		6	bps		13	bps		2.86	%		2.75	%		11	bps
Effective income tax rate		31.9			30.5			33.4			144			(155	)		31.9			33.5			(164	)
Efficiency ratio		62			63			66			(70	)		(358	)		64			68			(376	)
Adjusted efficiency ratio*		62			63			66			(113	)		(358	)		64			67			(260	)
Return on average common equity		5.7			5.8			4.5			(12	)		119			5.2			4.3			93
Return on average tangible common equity		8.4			8.6			6.7			(15	)		168			7.7			6.4			129
Adjusted return on average tangible common equity*		8.4			8.0			6.7			41			168			7.6			6.7			91
Return on average total assets		0.8			0.8			0.6			(6	)		12			0.7			0.6			11
Return on average total tangible assets		0.8	%		0.9	%		0.7	%		(7	) bps		12	bps		0.8	%		0.7	%		11	bps
Capital adequacy(1,2)
Common equity tier 1 capital ratio		11.2	%		11.3	%		11.7	%								11.2	%		11.7	%
Total capital ratio		14.0			14.2			15.3									14.0			15.3
Tier 1 leverage ratio		9.9	%		10.1	%		10.5	%								9.9	%		10.5	%
Asset quality(2)
Total nonperforming loans and leases as a % of total loans and leases		0.97	%		1.05	%		1.07	%		(8	) bps		(10	) bps		0.97	%		1.07	%		(10	) bps
Allowance for loan and lease losses as a % of loans and leases		1.15			1.18			1.23			(3	)		(8	)		1.15			1.23			(8	)
Allowance for loan and lease losses as a % of nonperforming loans and leases		118			112			115			629			368			118			115			368
Net charge-offs as a % of average loans and leases		0.39	%		0.32	%		0.31	%		7	bps		8	bps		0.32	%		0.30	%		2	bps

1) Current reporting-period regulatory capital ratios are preliminary. Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2019.

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

5

Citizens Financial Group, Inc.

Discussion of Results:

Fourth quarter 2016 and fourth quarter 2015 results included no net restructuring charges, special items or notable items. Third quarter 2016 results benefited from $31 million pre-tax or $19 million after-tax, of notable items.

2016 net income benefited from $31 million pre-tax, or $19 million after-tax, of notable items, compared with 2015 net income, which was reduced by a net $50 million pre-tax, or $31 million after-tax, of restructuring charges and special items. All references to Adjusted results* exclude the impact of restructuring charges, special items and/or notable items.

Restructuring charges, special items and/or notable items*					4Q16 change							2016 change
($s in millions, except per share data)	4Q16		3Q16		from 3Q16		2016			2015		from 2015
Pre-tax net noninterest income	$	—	$	67	$	(67)	$	67		$	—	$	67
After-tax noninterest income		—		41		(41)		41			—		41
Pre-tax total noninterest expense		—		(36)		36		(36	)		(50)		14
After-tax total noninterest expense		—		(22)		22		(22	)		(31)		9
Pre-tax restructuring charges, special items and notable items		—		31		(31)		31			(50)		81
After-tax restructuring charges, special items and notable items	$	—	$	19	$	(19)	$	19		$	(31)	$	50
Diluted EPS impact	$	—	$	0.04	$	(0.04)	$	0.04		$	(0.06)	$	0.10

Fourth quarter 2016 net income available to common stockholders of $282 million decreased $8 million, or 3%, while diluted EPS of $0.55 decreased $0.01, or 2%, versus third quarter 2016, which included a $19 million after-tax, or $0.04 EPS, benefit tied to the TDR transaction gain. Fourth quarter 2016 EPS reflects a 7.2 million reduction in average fully diluted shares outstanding.

Compared with fourth quarter 2015 levels, net income available to common stockholders increased $61 million, or 28%, as revenue growth of $131 million was partially offset by higher noninterest expense and provision for credit losses. Diluted EPS of $0.55 increased $0.13, or 31%, reflecting net income growth and a 16.4 million reduction in average fully diluted shares outstanding.

2016 net income available to common stockholders of $1.0 billion increased $198 million, or 24%, compared with 2015, reflecting 9% revenue growth, partially offset by growth in noninterest expense and provision for credit losses. 2016 diluted EPS of $1.97 increased $0.42, or 27%, and reflects a 14.3 million reduction in average fully diluted shares outstanding. Full-year 2016 EPS was impacted by $14 million in preferred dividends, or $0.03 per diluted common share, compared with $7 million, or $0.01 per diluted common share, of preferred dividends in 2015.

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Citizens Financial Group, Inc.

	Quarterly trends										Full year
Adjusted results*							4Q16 change from								2016 change
($s in millions)	4Q16		3Q16		4Q15		3Q16		4Q15		2016		2015		from 2015
Adjusted net interest income*	$	986	$	945	$	870	$	41	$	116	$	3,758	$	3,402	$	356
Adjusted noninterest income*		377		368		362		9		15		1,430		1,422		8
Adjusted total revenue*		1,363		1,313		1,232		50		131		5,188		4,824		364
Adjusted noninterest expense*		847		831		810		16		37		3,316		3,209		107
Adjusted net income*		282		278		221		4		61		1,026		871		155
Preferred dividend		—		7		—		(7)		—		14		7		7
Adjusted net income available to common stockholders*	$	282	$	271	$	221	$	11	$	61	$	1,012	$	864	$	148
Adjusted diluted earnings per share*	$	0.55	$	0.52	$	0.42	$	0.03	$	0.13	$	1.93	$	1.61	$	0.32

Fourth quarter 2016 net income available to common stockholders increased $11 million, or 4%, from Adjusted third quarter 2016 levels*, reflecting a $50 million increase in total revenue, partially offset by a $16 million increase in noninterest expense and $16 million increase in provision for credit losses. Fourth quarter 2016 diluted EPS of $0.55 increased $0.03, or 6%, compared to third quarter 2016 Adjusted diluted EPS, driven by net income growth and a 7.2 million reduction in average fully diluted shares outstanding.

Compared with fourth quarter 2015 levels, net income available to common stockholders increased $61 million, or 28%, as revenue growth of $131 million was partially offset by a $37 million increase in noninterest expense and an $11 million increase in provision for credit losses. Diluted EPS of $0.55 increased $0.13, or 31%, reflecting net income growth and a 16.4 million reduction in average fully diluted shares outstanding.

On an Adjusted basis*, 2016 net income available to common stockholders of $1.0 billion increased $148 million, or 17%, versus 2015, while 2016 Adjusted diluted EPS of $1.93, increased $0.32, or 20%, and reflected a 14.3 million reduction in average fully diluted shares outstanding.

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Citizens Financial Group, Inc.

Net interest income										4Q16 change from
($s in millions)	4Q16			3Q16			4Q15			3Q16						4Q15
										$			%			$			%
Interest income:
Interest and fees on loans and leases and loans held for sale	$	968		$	931		$	832		$	37			4	%	$	136			16	%
Investment securities		152			146			153			6			4			(1)			(1)
Interest-bearing deposits in banks		2			2			1			—			—			1			100
Total interest income	$	1,122		$	1,079		$	986		$	43			4	%	$	136			14	%
Interest expense:
Deposits	$	76		$	71		$	60		$	5			7	%	$	16			27	%
Federal funds purchased and securities sold under agreements to repurchase		—			1			3			(1)			(100)			(3)			(100)
Other short-term borrowed funds		7			10			16			(3)			(30)			(9)			(56)
Long-term borrowed funds		53			52			37			1			2			16			43
Total interest expense	$	136		$	134		$	116		$	2			1	%	$	20			17	%
Net interest income	$	986		$	945		$	870		$	41			4	%	$	116			13	%
Net interest margin		2.90	%		2.84	%		2.77	%		6	bps					13	bps

Net interest income of $986 million increased $41 million, or 4%, from third quarter 2016, given 2% average loan growth and a six basis point improvement in net interest margin. Net interest margin improvement reflects improved commercial and consumer loan yields, including the benefit of an increase in LIBOR, and lower pay-fixed swap costs, partially offset by the impact of an increase in investment portfolio balances as well as the impact of higher deposit and borrowing costs.

Compared to fourth quarter 2015, net interest income increased $116 million, or 13%, reflecting 8% average loan growth and a 13 basis point improvement in net interest margin. Results were driven by improved loan yields, reflecting the benefit of higher rates and balance sheet optimization initiatives, as well as lower pay-fixed swap costs. Results also reflect lower investment portfolio yields, which included a reduction in Federal Reserve Bank stock dividends, and higher deposit and borrowing costs.

Noninterest Income							4Q16 change from
($s in millions)	4Q16		3Q16		4Q15		3Q16					4Q15
							$		%			$		%
Service charges and fees	$	153	$	152	$	156	$	1		1	%	$	(3)		(2)	%
Card fees		50		52		60		(2)		(4)			(10)		(17)
Trust and investment services fees		34		37		39		(3)		(8)			(5)		(13)
Mortgage banking fees		36		33		20		3		9			16		80
Capital markets fees		34		34		15		—		—			19		127
Foreign exchange and letter of credit fees		25		23		23		2		9			2		9
Securities gains, net		3		—		10		3		100			(7)		(70)
Other income(1)		42		104		39		(62)		(60)			3		8
Noninterest income	$	377	$	435	$	362	$	(58)		(13)	%	$	15		4	%

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

Noninterest income of $377 million decreased $58 million, or 13%, from third quarter 2016 levels that reflected the benefit of the $72 million TDR Transaction gain in other income. Compared with Adjusted third quarter results*, fourth quarter noninterest income of $377 million increased $9 million, or 2%, largely reflecting higher other income and mortgage banking fees. Other income increased $5 million, driven by higher leasing and interest rate products income. Mortgage banking fees increased $3 million, reflecting improved mortgage servicing rights (“MSR”) valuations and modestly higher origination volumes partially offset by lower loan sale gains. Foreign exchange and letter of credit fees increased $2 million and service charges and fees were relatively flat compared to the prior quarter. Capital markets fees remained stable with robust third

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Citizens Financial Group, Inc.

quarter 2016 levels driven by strong loan-syndications activity. Card fees declined $2 million given seasonally lower out-of-network ATM transaction fees, and trust and investment services fees declined $3 million, reflecting continued shift in product sales toward fee-based business and a reduction in overall sales volume. Securities gains of $3 million were recorded during the quarter compared to no securities gains in the prior quarter.

Noninterest income increased $15 million, or 4%, from fourth quarter 2015 levels, largely reflecting strength in capital markets and mortgage banking fees partially offset by lower card fees, trust and investment services fees and service charges and fees. Capital markets fees increased $19 million reflecting improved market conditions and further broadening of our capabilities. Mortgage banking fees increased $16 million, reflecting strength in applications and secondary origination volumes and an increase in MSR valuations. Other income increased $5 million driven by higher interest rate product revenue. Card fees decreased $10 million, largely reflecting the card reward accounting change impact. Trust and investment services fees decreased $5 million as the benefit of higher sales volume was more than offset by the impact of a shift in product sales toward fee-based business. Service charges and fees decreased $3 million, largely reflecting lower loan prepayment fees. Securities gains decreased by $7 million.

Noninterest expense							4Q16 change from
($s in millions)	4Q16		3Q16		4Q15		3Q16				4Q15
							$		%		$		%
Salaries and employee benefits	$	420	$	432	$	402	$	(12)		(3) %	$	18		4 %
Outside services		98		102		104		(4)		(4)		(6)		(6)
Occupancy		77		78		74		(1)		(1)		3		4
Equipment expense		69		65		67		4		6		2		3
Amortization of software		44		46		38		(2)		(4)		6		16
Other operating expense		139		144		125		(5)		(3)		14		11
Total noninterest expense	$	847	$	867	$	810	$	(20)		(2) %	$	37		5 %
Restructuring charges, special items and Notable Items		—		36		—		(36)		NM		—		— %
Adjusted noninterest expense*	$	847	$	831	$	810	$	16		2 %	$	37		5 %

Noninterest expense of $847 million decreased $20 million, or 2%, from third quarter 2016 levels that included $36 million of notable items largely tied to salaries and employee benefits, outside services and other expense. Compared with Adjusted third quarter results*, fourth quarter noninterest expense increased $16 million, or 2%, driven by a $9 million increase in other expense largely reflecting higher fraud, legal and regulatory costs, a $4 million increase in outside services, largely tied to increased consumer loan origination and servicing costs and a $4 million increase in equipment expense, reflecting increased vendor contract licenses and maintenance costs. Results also reflect relatively stable salaries and benefits expense, as higher incentive compensation tied to revenue was largely offset by a reduction in benefits.

Compared with fourth quarter 2015, noninterest expense increased $37 million, or 5%, largely reflecting higher salaries and employee benefits expense, other expense and amortization of software expense partially offset by the card reward accounting change impact and lower outside services expense. Salary and employee benefits expense increased $18 million, reflecting merit increases and higher incentive compensation tied to revenue. Other expense increased $14 million related to higher FDIC

9

Citizens Financial Group, Inc.

insurance expense and higher fraud, legal and regulatory costs. Amortization of software expense increased $6 million, driven by technology investments. These increases were partially offset by the card reward accounting change impact in other expense and a $6 million reduction in outside services expense related to lower regulatory costs.

The effective tax rate for fourth quarter 2016 was 31.9% compared to 30.5% in third quarter 2016, which included benefits from our TOP efficiency initiatives, and 33.4% in fourth quarter 2015.

Consolidated balance sheet review(1)										4Q16 change from
($s in millions)	4Q16			3Q16			4Q15			3Q16					4Q15
										$			%		$			%
Total assets	$	149,520		$	147,015		$	138,208		$	2,505			2 %	$	11,312			8 %
Loans and leases and loans held for sale		108,294			105,993			99,407			2,301			2		8,887			9
Deposits		109,804			108,327			102,539			1,477			1		7,265			7
Average interest-earning assets (quarterly)		134,758			131,669			124,201			3,089			2		10,557			8
Stockholders’ equity		19,747			20,181			19,646			(434	)		(2)		101			1
Stockholders’ common equity		19,499			19,934			19,399			(435	)		(2)		100			1
Tangible common equity	$	13,154		$	13,576		$	13,000		$	(422	)		(3)%	$	154			1 %
Loan-to-deposit ratio (period-end)(2)		98.6	%		97.9	%		96.9	%		77	bps				168	bps
Common equity tier 1 capital ratio(3)		11.2			11.3			11.7
Total capital ratio(3)		14.0	%		14.2	%		15.3	%

1) Represents period end unless otherwise noted.

2) Includes loans held for sale.

3) Current reporting period regulatory capital ratios are preliminary. Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2019.

Total assets of $149.5 billion increased $2.5 billion, or 2%, from September 30, 2016, driven by 2% loan growth, including a $1.3 billion increase in commercial loans and leases and a $940 million increase in retail loans as well as a $374 million increase in investment portfolio assets. Compared with December 31, 2015, total assets increased $11.3 billion, or 8%, primarily reflecting loan growth of $5.4 billion in commercial and $3.2 billion in retail, as well as a $2.4 billion increase in investment portfolio assets.

Average interest-earning assets of $134.8 billion in fourth quarter 2016 increased $3.1 billion, or 2%, from the prior quarter, driven by a $577 million increase in investment portfolio assets, a $1.3 billion increase in commercial loans and leases and a $1.2 billion increase in retail loans. Compared to fourth quarter 2015, average interest-earning assets increased $10.6 billion, or 8%, driven by commercial loan growth of $5.2 billion, retail loan growth of $3.1 billion and a $2.0 billion increase in investment portfolio assets, including $1.6 billion growth in securities and $453 million in cash and equivalents.

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Citizens Financial Group, Inc.

Interest-earning assets							4Q16 change from
($s in millions)	4Q16		3Q16		4Q15		3Q16					4Q15
Period-end interest-earning assets							$			%		$			%
Investments and interest-bearing deposits	$	28,798	$	28,424	$	26,417	$	374			1  %	$	2,381			9  %
Commercial loans and leases		51,651		50,389		46,214		1,262			3		5,437			12
Retail loans		56,018		55,078		52,828		940			2		3,190			6
Total loans and leases		107,669		105,467		99,042		2,202			2		8,627			9
Loans held for sale, at fair value		583		526		325		57			11		258			79
Other loans held for sale		42		—		40		42			100		2			5
Total loans and leases and loans held for sale		108,294		105,993		99,407		2,301			2		8,887			9
Total period-end interest-earning assets	$	137,092	$	134,417	$	125,824	$	2,675			2  %	$	11,268			9  %
Average interest-earning assets
Investments and interest-bearing deposits	$	27,667	$	27,090	$	25,664	$	577			2  %	$	2,003			8  %
Commercial loans and leases		51,032		49,704		45,819		1,328			3		5,213			11
Retail loans		55,502		54,332		52,380		1,170			2		3,122			6
Total loans and leases		106,534		104,036		98,199		2,498			2		8,335			8
Loans held for sale, at fair value		551		474		325		77			16		226			70
Other loans held for sale		6		69		13		(63	)		(91)		(7	)		(54)
Total loans and leases and loans held for sale		107,091		104,579		98,537		2,512			2		8,554			9
Total average interest-earning assets	$	134,758	$	131,669	$	124,201	$	3,089			2  %	$	10,557			8  %

Period-end investments and interest-bearing deposits of $28.8 billion as of December 31, 2016 increased $374 million, or 1%, compared with September 30, 2016, driven by an increase in cash positions held at the Federal Reserve. Compared with December 31, 2015, investments and interest-bearing deposits increased $2.4 billion, or 9%, with $1.5 billion in securities and $846 million in cash and equivalents. At the end of fourth quarter 2016, the average effective duration of the securities portfolio increased to 4.3 years, compared with 2.7 years at September 30, 2016 and 3.5 years at December 31, 2015, reflecting the impact of higher long-term rates, which reduced prepayment speeds.

Period-end loans and leases of $107.7 billion at December 31, 2016 increased $2.2 billion, or 2%, from $105.5 billion at September 30, 2016 and $8.6 billion, or 9%, from $99.0 billion at December 31, 2015. The linked-quarter change was driven by a $1.3 billion increase in commercial loans and leases and a $940 million increase in retail loans. The change from the prior-year period reflects a $5.4 billion increase in commercial loans and leases and a $3.2 billion increase in retail loans.

Average loans and leases increased $2.5 billion, or 2%, from third quarter 2016, reflecting a $1.3 billion increase in commercial loans and leases and a $1.2 billion increase in retail loans. Commercial loan growth was driven by strength in Mid-corporate and Industry Verticals and Commercial Real Estate. Retail loan growth was largely driven by strength in residential mortgages, student and other unsecured retail loans, partially offset by lower home equity balances.

Compared with fourth quarter 2015, average loans and leases of $106.5 billion increased $8.3 billion, or 8%, reflecting a $5.2 billion increase in commercial loans and leases and a $3.1 billion increase in retail loans. Commercial loan and lease growth was driven by strength in Commercial Real Estate, Mid-corporate and Industry Verticals and Franchise Finance, partially offset by lower Asset Finance balances. Retail loan growth was driven by student loans, residential mortgages and unsecured retail loans, partially offset by lower home equity balances.

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Citizens Financial Group, Inc.

Deposits							4Q16 change from
($s in millions)	4Q16		3Q16		4Q15		3Q16				4Q15
Period-end deposits							$		%		$		%
Demand deposits	$	28,472	$	27,292	$	27,649	$	1,180		4 %	$	823		3 %
Checking with interest		20,714		20,573		17,921		141		1		2,793		16
Savings		8,964		8,797		8,218		167		2		746		9
Money market accounts		38,176		38,258		36,727		(82)		—		1,449		4
Term deposits		13,478		13,407		12,024		71		1		1,454		12
Total period-end deposits	$	109,804	$	108,327	$	102,539	$	1,477		1 %	$	7,265		7 %
Average deposits
Demand deposits	$	28,443	$	27,467	$	27,475	$	976		4 %	$	968		4 %
Checking with interest		20,268		19,997		17,117		271		1		3,151		18
Savings		8,826		8,779		8,087		47		1		739		9
Money market accounts		38,397		37,597		36,488		800		2		1,909		5
Term deposits		13,191		12,806		12,201		385		3		990		8
Total average deposits	$	109,125	$	106,646	$	101,368	$	2,479		2 %	$	7,757		8 %
Period-end total deposits at December 31, 2016 of $109.8 billion increased $1.5 billion, or 1%, from September 30, 2016, driven by growth of $1.2 billion in demand deposits. Compared with December 31, 2015, period-end total deposits increased $7.3 billion, or 7%, reflecting growth across all categories led by strength in checking with interest, term deposits and money market accounts.
Fourth quarter 2016 average deposits of $109.1 billion increased $2.5 billion, or 2%, from third quarter 2016, driven by growth in demand deposits, money market and term deposits. Compared with fourth quarter 2015, average deposits increased $7.8 billion, or 8%, driven by growth in all categories.
Borrowed funds							4Q16 change from
($s in millions)	4Q16		3Q16		4Q15		3Q16				4Q15
Period-end borrowed funds							$		%		$		%
Federal funds purchased and securities sold under agreements to repurchase	$	1,148	$	900	$	802	$	248		28 %	$	346		43 %
Other short-term borrowed funds		3,211		2,512		2,630		699		28		581		22
Long-term borrowed funds		12,790		11,902		9,886		888		7		2,904		29
Total borrowed funds	$	17,149	$	15,314	$	13,318	$	1,835		12 %	$	3,831		29 %
Average borrowed funds	$	15,210	$	14,379	$	12,603	$	831		6 %	$	2,607		21 %

Total borrowed funds of $17.1 billion at December 31, 2016 increased $1.8 billion from September 30, 2016, reflecting a $947 million increase in short-term borrowings, driven by $749 million in senior debt that now matures in less than one year, and fed funds purchased and an $888 million increase in net long-term funding, specifically Federal Home Loan Bank (“FHLB”) borrowings. Compared with December 31, 2015, total borrowed funds increased $3.8 billion, primarily reflecting a $2.9 billion increase in long-term borrowings and a $927 million increase in short-term borrowings, including the $749 million of senior debt that now matures in less than one year. Average borrowed funds of $15.2 billion increased $831 million from third quarter 2016, driven by higher short-term borrowings, which included the impact of senior debt migrating from long-term borrowings. Compared with fourth quarter 2015, average borrowed funds increased $2.6 billion, reflecting an increase in long-term senior debt and incremental long-term FHLB borrowings.

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Citizens Financial Group, Inc.

Capital										4Q16 change from
($s and shares in millions)	4Q16			3Q16			4Q15			3Q16					4Q15
Period-end capital										$			%		$			%
Stockholders’ equity	$	19,747		$	20,181		$	19,646		$	(434	)		(2) %	$	101		1 %
Stockholders’ common equity		19,499			19,934			19,399			(435	)		(2)		100		1
Tangible common equity		13,154			13,576			13,000			(422	)		(3)		154		1
Tangible book value per common share	$	25.69		$	26.20		$	24.63		$	(0.51	)		(2)		1.06		4
Common shares - at end of period		512.0			518.1			527.8			(6.2	)		(1)		(15.8	)	(3)
Common shares - average (diluted)		513.9			521.1			530.3			(7.2	)		(1) %		(16.4	)	(3) %
Common equity tier 1 capital ratio(1,2)		11.2	%		11.3	%		11.7	%
Total capital ratio(1,2)		14.0			14.2			15.3
Tier 1 leverage ratio(1,2)		9.9	%		10.1	%		10.5	%

1) Current reporting-period regulatory capital ratios are preliminary

2) Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2019.

On December 31, 2016, our Basel III capital ratios on a transitional basis remained well in excess of applicable regulatory requirements with a CET1 capital ratio of 11.2% and a total capital ratio of 14.0%. 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.

As part of the CFG’s 2016 Capital Plan (the “Plan”), during the fourth quarter the company repurchased 6.3 million shares of common stock at an average price of $28.71 per share. Tangible book value per common share of $25.69 decreased 2% versus third quarter 2016 and increased 4% versus fourth quarter 2015. The decrease compared to the prior quarter largely reflects mark-to-market losses on the available for sale securities portfolio of $334 million, which reduced other comprehensive income. The Plan includes the repurchase of up to $690 million of Citizens’ outstanding common stock beginning in third quarter 2016 through second quarter 2017, with $260 million in remaining availability as of December 31, 2016. In accordance with the Plan, the company paid quarterly dividends of $0.12 per share in the third and fourth quarters of 2016, and has declared a dividend of $0.14 per share for the first quarter 2017. Future capital actions are subject to consideration and approval by CFG’s Board of Directors.

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Citizens Financial Group, Inc.

Credit quality review							4Q16 change from
($s in millions)	4Q16		3Q16		4Q15		3Q16				4Q15
							$		%		$		%
Nonperforming loans and leases	$	1,045	$	1,107	$    1,060		$	(62)		(6) %	$	(15)		(1) %
Net charge-offs		104		83	77			21		25		27		35
Provision for credit losses		102		86	91			16		19		11		12
Allowance for loan and lease losses	$	1,236	$	1,240	$    1,216		$	(4)		(0) %	$	20		(2) %
Total nonperforming loans and leases as a % of total loans and leases		0.97  %		1.05  %	1.07	%		(8) bps				(10) bps
Net charge-offs as % of total loans and leases		0.39		0.32	0.31			7  bps				8  bps
Allowance for loan and lease losses as a % of total loans and leases		1.15  %		1.18  %	1.23	%		(3) bps				(8) bps
Allowance for loan and lease losses as a % of nonperforming loans and leases		118.32  %		112.03  %	114.64	%		629  bps				368  bps

Overall credit quality continued to improve reflecting growth in lower risk retail loans and modest increases in commercial categories. Nonperforming loans of $1.0 billion decreased $62 million from September 30, 2016, driven by a $53 million decrease in retail, with a reduction in residential mortgage reflecting higher home values and borrowers’ improved ability to repay, and a $9 million decrease in commercial. Compared to December 31, 2015, nonperforming loans and leases decreased $15 million as increases in commercial, largely commodities-related portfolio, were offset by improvements in consumer real-estate secured categories. The nonperforming loans and leases to total loans and leases ratio of 0.97% at December 31, 2016 compares with 1.05% at September 30, 2016 and 1.07% at December 31, 2015.

Net charge-offs of $104 million increased $21 million from third quarter 2016 levels, driven by a $14 million reduction in recoveries of prior-period charge-offs and the $7 million impact of a one-time methodology change in the auto portfolio. Compared with fourth quarter 2015, net charge-offs increased $27 million, driven by a $19 million increase in commercial, largely tied to commodities-related credits, and the $7 million impact of the methodology change in auto. Fourth quarter 2016 net charge-offs of 39 basis points of average loans and leases compares with 32 basis points in third quarter 2016 and 31 basis points in fourth quarter 2015.

Allowance for loan and lease losses of $1.2 billion was stable compared to third quarter 2016 and increased $20 million, or 2%, from fourth quarter 2015, largely reflecting continued loan growth.

Allowance for loan and lease losses to total loans and leases was 1.15% as of December 31, 2016, relatively stable compared with 1.18% as of September 30, 2016 and 1.23% as of December 31, 2015. The allowance for loan and lease losses to nonperforming loans and leases ratio increased slightly to 118% as of December 31, 2016 from 112% as of September 30, 2016 and 115% as of December 31, 2015, given the lower level of nonperforming loans and leases.

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Citizens Financial Group, Inc.

Additional Segment Detail:

Consumer Banking Segment										4Q16 change from
($s in millions)	4Q16			3Q16			4Q15			3Q16					4Q15
										$			%		$			%
Net interest income	$	639		$	621		$	565		$	18			3 %	$	74			13 %
Noninterest income		227			229			226			(2)			(1)		1			—
Total revenue		866			850			791			16			2		75			9
Noninterest expense		649			650			624			(1)			—		25			4
Pre-provision profit		217			200			167			17			9		50			30
Provision for credit losses		74			57			65			17			30		9			14
Income before income tax expense		143			143			102			—			—		41			40
Income tax expense		51			51			35			—			—		16			46
Net income	$	92		$	92		$	67		$	—			— %	$	25			37 %
Average balances
Total loans and leases (1)	$	56,711		$	55,376		$	52,737		$	1,335			2 %	$	3,974			8 %
Total deposits	$	73,124		$	72,141		$	70,939		$	983			1 %	$	2,185			3 %
Key performance metrics*
ROTCE (2)		7.0	%		7.0	%		5.5	%		(7)	bps				147	bps
Efficiency ratio		75	%		76	%		79	%		(156)	bps				(395)	bps
Loan-to-deposit ratio (period-end)(1)		77.3	%		77.2	%		74.5	%		11	bps				280	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 $92 million in fourth quarter 2016 was flat with third quarter 2016, reflecting a $16 million increase in total revenue and relatively stable noninterest expense, largely offset by a $17 million increase in provision for credit losses. Net interest income increased $18 million, or 3%, from third quarter 2016, reflecting the benefit of a $1.3 billion increase in average loans led by higher mortgage, student and unsecured retail loans and improved loan yields, partially offset by higher deposit costs. Noninterest income was relatively stable as higher mortgage banking fees were more than offset by lower trust and investment fees and a reduction in card fees, reflecting seasonally lower out-of-network ATM fees.

Noninterest expense decreased modestly from third quarter 2016 levels that included $7 million of home equity notable items.* Results excluding these items were largely driven by higher fraud and regulatory and legal costs and increased equipment and outside services costs, offsetting lower salaries and benefits, nonperforming asset costs and occupancy expense. Provision for credit losses increased $17 million, largely driven by higher auto net charge-offs, including a $7 million increase related to a methodology change and a $5 million increase related to a reduction in consumer real estate secured recoveries from higher third quarter 2016 levels.

Compared with fourth quarter 2015, net income increased $25 million, or 37%, reflecting a $75 million increase in total revenue, which more than offset a $25 million increase in noninterest expense and a $9 million increase in provision for credit losses. Net interest income increased $74 million, or 13%, driven by a $4.0 billion increase in average loans led by higher student, mortgage and unsecured retail balances as well as improved loan yields and deposit spreads. Noninterest income was relatively stable with fourth quarter 2016 levels, driven by $16 million of higher mortgage banking fees tied to wider gain on sale spreads, secondary volumes and an MSR valuation increase. These results were partially offset by an $8 million card reward accounting change impact and a $5 million decrease in trust and investment fees.

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Citizens Financial Group, Inc.

Noninterest expense increased $25 million, or 4%, largely driven by higher fraud, regulatory and legal costs, insurance costs and salaries and benefits expense tied to merit and incentives as well increased amortization of software expense, partially offset by the card reward accounting change impact. Provision for credit losses increased $9 million from fourth quarter 2015, largely driven by higher net charge-offs in auto related to a methodology change.

Commercial Banking Segment										4Q16 change from
($s in millions)	4Q16			3Q16			4Q15			3Q16					4Q15
										$			%		$			%
Net interest income	$	347		$	327		$	301		$	20			6  %	$	46			15  %
Noninterest income		122			123			107			(1)			(1)		15			14
Total revenue		469			450			408			19			4		61			15
Noninterest expense		187			181			180			6			3		7			4
Pre-provision profit		282			269			228			13			5		54			24
Provision for credit losses		20			19			(2)			1			5		22			NM
Income before income tax expense		262			250			230			12			5		32			14
Income tax expense		90			88			78			2			2		12			15
Net income	$	172		$	162		$	152		$	10			6  %	$	20			13 %
Average balances
Total loans and leases (1)	$	47,010		$	46,611		$	42,642		$	399			1  %	$	4,368			10 %
Total deposits	$	29,410		$	27,847		$	24,600		$	1,563			6  %	$	4,810			20 %
Key performance metrics*
ROTCE (2)		12.9	%		12.5	%		12.6	%		44	bps				37	bps
Efficiency ratio		40	%		40	%		44	%		(38)	bps				(419)	bps
Loan-to-deposit ratio (period-end)(1)		166.2	%		161.4	%		172.6	%		480	bps				(634)	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 $172 million in fourth quarter 2016 increased $10 million, or 6%, versus third quarter 2016, reflecting a $19 million increase in total revenue, partially offset by a $6 million increase in noninterest expense and relatively stable provision for credit losses. Net interest income of $347 million increased $20 million, or 6%, driven by loan and deposit growth and higher interest rates. Average loans and leases increased $399 million as growth in Mid-corporate and Industry Verticals and Commercial Real Estate was partially offset by a $994 million average decrease related to the transfer of an Asset Finance lease and loan portfolio to non-core at the end of third quarter 2016. Noninterest income remained stable as modest growth in foreign exchange and letter of credit fees and interest rate product fees was offset by a reduction in other income, including lower leasing fees related to the Asset Finance lease and loan portfolio transfer to non-core.

Noninterest expense increased $6 million, largely reflecting higher operational losses, higher salaries and benefits expense tied to incentive compensation and higher insurance costs, partially offset by lower depreciation expense related to the Asset Finance lease and loan portfolio transfer to non-core. Provision for credit losses was slightly higher.

Compared to fourth quarter 2015, net income increased $20 million, or 13%, as a $61 million increase in total revenue more than offset a $7 million increase in noninterest expense and a $22 million increase in provision for credit losses. Net interest income increased $46 million, or 15%, from fourth quarter 2015, driven by strong loan and deposit growth and the benefit of higher interest rates. Average loans and leases increased $4.4 billion, driven by strength in

16

Citizens Financial Group, Inc.

Mid-corporate and Industry Verticals, Commercial Real Estate and Franchise Finance, despite the impact of the $1.2 billion transfer of the Asset Finance lease and loan portfolio to non-core. Noninterest income increased $15 million from fourth quarter 2015 levels, largely reflecting strength in capital markets, interest rate products and foreign exchange fees, partially offset by lower leasing income related to the Asset Finance lease and loan portfolio transfer to non-core.

Noninterest expense increased $7 million from fourth quarter 2015, largely reflecting higher salaries and employee benefits tied to incentive compensation and higher benefits costs, partially offset by lower outside services expense and lower depreciation expense related to the Asset Finance lease and loan portfolio transfer to non-core. Provision for credit losses increased $22 million versus fourth quarter 2015, driven by increased losses largely related to higher charge-offs in commodities-related credits.

Other(1)										4Q16 change from
($s in millions)	4Q16			3Q16			4Q15			3Q16						4Q15
										$			%			$			%
Net interest income	$	—		$	(3	)	$	4		$	3			100	%	$	(4	)		(100	) %
Noninterest income		28			83			29			(55	)		(66	)		(1	)		(3	)
Total revenue		28			80			33			(52	)		(65	)		(5	)		(15	)
Noninterest expense		11			36			6			(25	)		(69	)		5			83
Pre-provision profit (loss)		17			44			27			(27	)		(61	)		(10	)		(37	)
Provision for credit losses		8			10			28			(2	)		(20	)		(20	)		(71	)
Income (loss) before income tax expense (benefit)		9			34			(1	)		(25	)		(74	)		10			NM
Income tax expense (benefit)		(9	)		(9	)		(3	)		—			—			(6	)		NM
Net income (loss)	$	18		$	43		$	2		$	(25	)		(58	)	$	16			NM
Average balances
Total loans and leases (2)	$	3,370		$	2,592		$	3,158		$	778			30	%	$	212			7	%
Total deposits	$	6,591		$	6,658		$	5,829		$	(67	)		(1	)%	$	762			13	%

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

2) Includes held for sale.

Other net income of $18 million in fourth quarter 2016 decreased $25 million versus third quarter 2016, largely driven by the net impact of notable items* in third quarter 2016. Other recorded no net interest income in fourth quarter 2016, an increase of $3 million, largely driven by higher investment income and higher non-core interest income related to the transfer of a $1.2 billion Asset Finance lease and loan portfolio in third quarter 2016 and lower legacy swap expense. Noninterest income of $28 million decreased $55 million, largely reflecting the impact of the TDR Transaction gain recorded in third quarter 2016.

Noninterest expense of $11 million decreased $25 million, driven by the impact of notable items* recorded in third quarter 2016. Provision for credit losses of $8 million in fourth quarter 2016 decreased $2 million from third quarter 2016.

Other net income in fourth quarter 2016 increased $16 million from fourth quarter 2015, driven by a $20 million decrease in provision for credit losses. Net interest income decreased $4 million, reflecting higher borrowed funds costs. Noninterest income remained relatively stable.

17

Citizens Financial Group, Inc.

Noninterest expense increased $5 million from fourth quarter 2015, largely reflecting increased depreciation expense related to the Asset Finance lease and loan transfer to non-core. Provision for credit losses was down $20 million, driven by a $2 million reserve release compared to a $14 million reserve build in fourth quarter 2015.

18

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:	Peter Lucht - 781.655.2289
Investors:	Ellen A. Taylor - 203.900.6854

Conference Call

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

Time:	9:00 am ET
Dial-in:	(800) 230-1059, conference ID 404800

Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations

Replay Information: A replay of the conference call will be available beginning at 11:00 am ET on January 20 through February 20, 2017. Please dial (800) 475-6701 and enter access code 404800. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $149.5 billion in assets as of December 31, 2016. 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 wealth management, 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 as Citizens Bank, Citizens Commercial Banking and Citizens One. 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.

Key Performance Metrics and Non-GAAP Financial Measures

Key Performance Metrics:

Our management team uses certain key performance metrics (“KPMs”) to gauge our performance and progress over time in achieving our strategic and operational goals and also in comparing our performance against our peers. In connection with our path to becoming an independent public company, we established the following financial targets, in addition to others, as KPMs. These KPMs are utilized by our management in measuring our progress against financial goals and as a tool in helping assess performance for compensation purposes. These KPMs can largely be found in our Registration Statements on Form S-1 and our periodic reports, which are filed with the Securities and Exchange Commission, and are supplemented from time to time with additional information in connection with our quarterly earnings releases.

Our key performance metrics include:

Return on average tangible common equity (“ROTCE”);

Return on average total tangible assets (“ROTA”);

Efficiency ratio;

Operating leverage; and

Common equity tier 1 capital ratio (Basel III fully phased-in basis).

In establishing goals for these KPMs, we determined that they would be measured on a management-reporting basis, or an operating basis, which we refer to externally as “Adjusted” results. We believe that these “Adjusted” results, which exclude restructuring charges, special items and/or notable items, as applicable, provide the best representation of our underlying financial progress toward these goals as they exclude items that our management does not consider indicative of our on-going financial performance. We have consistently shown these metrics on this basis to investors since our initial public offering in September of 2014. Adjusted KPMs are considered non-GAAP financial measures.

Non-GAAP Financial Measures:

This document contains non-GAAP financial measures. The following tables present reconciliations of our non-GAAP measures. These reconciliations exclude restructuring charges, special items and/or notable items, which are 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. Notable items include certain revenue or expense items that may occur in a reporting period, which management does not consider indicative of on-going financial performance.

The non-GAAP measures presented below include “noninterest income”, “total revenue”, “noninterest expense”, “pre-provision profit”, “income before income tax expense”, “income tax expense”, “net income”, “net income available to common stockholders”, “other income”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “other operating expense”, and “net income per average common share”, “return on average common equity” and “return on average total assets”.

20

Citizens Financial Group, Inc.

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, special items and/or notable 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, special items and/or notable items. We believe this presentation also increases comparability of period-to-period results.

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.

21

Citizens Financial Group, Inc.

Key performance metrics, non-GAAP financial measures and reconciliations

(Adjusted excluding restructuring charges, special items and/or notable items)

($s in millions, except per share data)

		QUARTERLY TRENDS																		FULL YEAR
												4Q16 Change												2016 Change
		4Q16		3Q16		2Q16		1Q16		4Q15		3Q16				4Q15				2016		2015		2015
												$		%		$		%						$		%
Noninterest income, adjusted:
Noninterest income (GAAP)			$377		$435		$355		$330		$362		($58)		(13%)		$15		4 %		$1,497		$1,422		$75		5 %
Less: Special items			—		—		—		—		—		—		—		—		—		—		—		—		—
Less: Notable items			—		67		—		—		—		(67)		(100)		—		—		67		—		67		100
Noninterest income, adjusted (non-GAAP)			$377		$368		$355		$330		$362		$9		2 %		$15		4 %		$1,430		$1,422		$8		1 %
Total revenue, adjusted:
Total revenue (GAAP)	A		$1,363		$1,380		$1,278		$1,234		$1,232		($17)		(1%)		$131		11 %		$5,255		$4,824		$431		9 %
Less: Special items			—		—		—		—		—		—		—		—		—		—		—		—		—
Less: Notable items			—		67		—		—		—		(67)		(100)		—		—		67		—		67		100
Total revenue, adjusted (non-GAAP)	B		$1,363		$1,313		$1,278		$1,234		$1,232		$50		4 %		$131		11 %		$5,188		$4,824		$364		8 %
Noninterest expense, adjusted:
Noninterest expense (GAAP)	C		$847		$867		$827		$811		$810		($20)		(2%)		$37		5 %		$3,352		$3,259		$93		3 %
Less: Restructuring charges and special items			—		—		—		—		—		—		—		—		—		—		50		(50)		(100)
Less: Notable items			—		36		—		—		—		(36)		(100)		—		—		36		—		36		100
Noninterest expense, adjusted (non-GAAP)	D		$847		$831		$827		$811		$810		$16		2 %		$37		5 %		$3,316		$3,209		$107		3 %
Pre-provision profit, adjusted:
Total revenue, adjusted (non-GAAP)			$1,363		$1,313		$1,278		$1,234		$1,232		$50		4 %		$131		11 %		$5,188		$4,824		$364		8 %
Less: Noninterest expense, adjusted (non-GAAP)			847		831		827		811		810		16		2		37		5		3,316		3,209		107		3
Pre-provision profit, adjusted (non-GAAP)			$516		$482		$451		$423		$422		$34		7 %		$94		22 %		$1,872		$1,615		$257		16 %
Income before income tax expense, adjusted:
Income before income tax expense (GAAP)			$414		$427		$361		$332		$331		($13)		(3%)		$83		25 %		$1,534		$1,263		$271		21 %
Less: Income before income tax expense (benefit) related to restructuring charges and special items			—		—		—		—		—		—		—		—		—		—		(50)		50		100
Less: Income before income tax expense (benefit) related to notable items			—		31		—		—		—		(31)		(100)		—		—		31		—		31		100
Income before income tax expense, adjusted (non-GAAP)			$414		$396		$361		$332		$331		$18		5 %		$83		25 %		$1,503		$1,313		$190		14 %
Income tax expense, adjusted:
Income tax expense (GAAP)			$132		$130		$118		$109		$110		$2		2 %		$22		20 %		$489		$423		$66		16 %
Less: Income tax expense (benefit) related to restructuring charges and special items			—		—		—		—		—		—		—		—		—		—		(19)		19		100
Less: Income tax expense (benefit) related to notable items			—		12		—		—		—		(12)		(100)		—		—		12		—		12		100
Income tax expense, adjusted (non-GAAP)			$132		$118		$118		$109		$110		$14		12 %		$22		20 %		$477		$442		$35		8 %
Net income, adjusted:
Net income (GAAP)	E		$282		$297		$243		$223		$221		($15)		(5%)		$61		28 %		$1,045		$840		$205		24 %
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		—		—		—		—		—		—		—		—		—		31		(31)		(100)
Add: Notable items, net of income tax expense (benefit)			—		(19)		—		—		—		19		100		—		—		(19)		—		(19)		(100)
Net income, adjusted (non-GAAP)	F		$282		$278		$243		$223		$221		$4		1 %		$61		28 %		$1,026		$871		$155		18 %
Net income available to common stockholders, adjusted:
Net income available to common stockholders (GAAP)	G		$282		$290		$243		$216		$221		($8)		(3%)		$61		28 %		$1,031		$833		$198		24 %
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		—		—		—		—		—		—		—		—		—		31		(31)		(100)
Add: Notable items, net of income tax expense (benefit)			—		(19)		—		—		—		19		100		—		—		(19)		—		(19)		(100)
Net income available to common stockholders, adjusted (non-GAAP)	H		$282		$271		$243		$216		$221		$11		4 %		$61		28 %		$1,012		$864		$148		17 %
Effective income tax rate, adjusted:
Effective income tax rate																					31.9%		33.5%
Effective income tax rate, adjusted:																					31.7		33.7

22

Citizens Financial Group, Inc.

Key performance metrics, non-GAAP financial measures and reconciliations

(Adjusted excluding restructuring charges, special items and/or notable items)

($s in millions, except per share data)

		QUARTERLY TRENDS																										FULL YEAR
																	4Q16 Change																	2016 Change
		4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15					2016			2015			2015
																	$/bps			%			$/bps			%								$/bps			%
Operating leverage:
Total revenue (GAAP)	A		$1,363			$1,380			$1,278			$1,234			$1,232			($17	)		(1.23%)			$131			10.63  %		$5,255			$4,824			$431			8.93  %
Less: Noninterest expense (GAAP)	C		847			867			827			811			810			(20	)		(2.31)			37			4.57		3,352			3,259			93			2.85
Operating leverage																					1.08  %						6.06  %											6.08  %
Operating leverage, adjusted:
Total revenue, adjusted (non-GAAP)	B		$1,363			$1,313			$1,278			$1,234			$1,232			$50			3.81  %			$131			10.63  %		$5,188			$4,824			$364			7.55  %
Less: Noninterest expense, adjusted (non-GAAP)	D		847			831			827			811			810			16			1.93			37			4.57		3,316			3,209			107			3.33
Operating leverage, adjusted (non-GAAP)																					1.88  %						6.06  %											4.22  %
Efficiency ratio and efficiency ratio, adjusted:
Efficiency ratio	C/A		62.18	%		62.88	%		64.71	%		65.66	%		65.76	%		(70	)		bps			(358	)		bps		63.80	%		67.56	%		(376	)		bps
Efficiency ratio, adjusted (non-GAAP)	D/B		62.18			63.31			64.71			65.66			65.76			(113	)		bps			(358	)		bps		63.92			66.52			(260	)		bps
Return on average common equity and return on average common equity, adjusted:
Average common equity (GAAP)	I		$19,645			$19,810			$19,768			$19,567			$19,359			($165	)		(1%	)		$286			1  %		$19,698			$19,354			$344			2  %
Return on average common equity	G/I		5.70	%		5.82	%		4.94	%		4.45	%		4.51	%		(12	)		bps			119			bps		5.23	%		4.30	%		93			bps
Return on average common equity, adjusted (non-GAAP)	H/I		5.70			5.44			4.94			4.45			4.51			26			bps			119			bps		5.14			4.46			68			bps
Return on average tangible common equity and return on average tangible common equity, adjusted:
Average common equity (GAAP)	I		$19,645			$19,810			$19,768			$19,567			$19,359			($165	)		(1%	)		$286			1  %		$19,698			$19,354			$344			2  %
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—		6,876			6,876			—			—
Less: Average other intangibles (GAAP)			1			1			2			3			3			—			—			(2	)		(67)		2			4			(2	)		(50)
Add: Average deferred tax liabilities related to goodwill (GAAP)			523			509			496			481			468			14			3			55			12		502			445			57			13
Average tangible common equity	J		$13,291			$13,442			$13,386			$13,169			$12,948			($151	)		(1%	)		$343			3  %		$13,322			$12,919			$403			3  %
Return on average tangible common equity	G/J		8.43	%		8.58	%		7.30	%		6.61	%		6.75	%		(15	)		bps			168			bps		7.74	%		6.45	%		129			bps
Return on average tangible common equity, adjusted (non-GAAP)	H/J		8.43			8.02			7.30			6.61			6.75			41			bps			168			bps		7.60			6.69			91			bps
Return on average total assets and return on average total assets, adjusted:
Average total assets (GAAP)	K		$147,315			$144,399			$142,179			$138,780			$136,298			$2,916			2  %			$11,017			8  %		$143,183			$135,070			$8,113			6  %
Return on average total assets	E/K		0.76	%		0.82	%		0.69	%		0.65	%		0.64	%		(6	)		bps			12			bps		0.73	%		0.62	%		11			bps
Return on average total assets, adjusted (non-GAAP)	F/K		0.76			0.77			0.69			0.65			0.64			(1	)		bps			12			bps		0.72			0.64			8			bps
Return on average total tangible assets and return on average total tangible assets, adjusted:
Average total assets (GAAP)	K		$147,315			$144,399			$142,179			$138,780			$136,298			$2,916			2  %			$11,017			8  %		$143,183			$135,070			$8,113			6  %
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—		6,876			6,876			—			—
Less: Average other intangibles (GAAP)			1			1			2			3			3			—			—			(2	)		(67)		2			4			(2	)		(50)
Add: Average deferred tax liabilities related to goodwill (GAAP)			523			509			496			481			468			14			3			55			12		502			445			57			13
Average tangible assets	L		$140,961			$138,031			$135,797			$132,382			$129,887			$2,930			2  %			$11,074			9  %		$136,807			$128,635			$8,172			6  %
Return on average total tangible assets	E/L		0.79	%		0.86	%		0.72	%		0.68	%		0.67	%		(7	)		bps			12			bps		0.76	%		0.65	%		11			bps
Return on average total tangible assets, adjusted (non-GAAP)	F/L		0.79			0.80			0.72			0.68			0.67			(1	)		bps			12			bps		0.75			0.68			7			bps

23

Citizens Financial Group, Inc.

Key performance metrics, non-GAAP financial measures and reconciliations

(Adjusted excluding restructuring charges, special items and/or notable items)

($s in millions, except per share data)

		QUARTERLY TRENDS																		FULL YEAR
												4Q16 Change												2016 Change
		4Q16		3Q16		2Q16		1Q16		4Q15		3Q16				4Q15				2016		2015		2015
												$/bps		%		$/bps		%						$/bps		%
Tangible book value per common share:
Common shares - at end of period (GAAP)	M		511,954,871		518,148,345		529,094,976		528,933,727		527,774,428		(6,193,474)		(1%)		(15,819,557)		(3%)		511,954,871		527,774,428		(15,819,557)		(3%)
Common stockholders’ equity (GAAP)			$19,499		$19,934		$19,979		$19,718		$19,399		($435)		(2)		$100		1		$19,499		$19,399		$100		1
Less: Goodwill (GAAP)			6,876		6,876		6,876		6,876		6,876		—		—		—		—		6,876		6,876		—		—
Less: Other intangible assets (GAAP)			1		1		2		3		3		—		—		(2)		(67)		1		3		(2)		(67)
Add: Deferred tax liabilities related to goodwill (GAAP)			532		519		507		494		480		13		3		52		11		532		480		52		11
Tangible common equity	N		$13,154		$13,576		$13,608		$13,333		$13,000		($422)		(3%)		$154		1 %		$13,154		$13,000		$154		1 %
Tangible book value per common share	N/M		$25.69		$26.20		$25.72		$25.21		$24.63		($0.51)		(2%)		$1.06		4 %		$25.69		$24.63		$1.06		4 %
Net income per average common share - basic and diluted, adjusted:
Average common shares outstanding - basic (GAAP)	O		512,015,920		519,458,976		528,968,330		528,070,648		527,648,630		(7,443,056)		(1%)		(15,632,710)		(3%)		522,093,545		535,599,731		(13,506,186)		(3%)
Average common shares outstanding - diluted (GAAP)	P		513,897,085		521,122,466		530,365,203		530,446,188		530,275,673		(7,225,381)		(1)		(16,378,588)		(3)		523,930,718		538,220,898		(14,290,180)		(3)
Net income available to common stockholders (GAAP)	G		$282		$290		$243		$216		$221		($8)		(3)		$61		28		$1,031		$833		$198		24
Net income per average common share - basic (GAAP)	G/O		0.55		0.56		0.46		0.41		0.42		(0.01)		(2)		0.13		31		1.97		1.55		0.42		27
Net income per average common share - diluted (GAAP)	G/P		0.55		0.56		0.46		0.41		0.42		(0.01)		(2)		0.13		31		1.97		1.55		0.42		27
Net income available to common stockholders, adjusted (non-GAAP)	H		282		271		243		216		221		11		4		61		28		1,012		864		148		17
Net income per average common share - basic, adjusted (non-GAAP)	H/O		0.55		0.52		0.46		0.41		0.42		0.03		6		0.13		31		1.94		1.61		0.33		20
Net income per average common share - diluted, adjusted (non-GAAP)	H/P		0.55		0.52		0.46		0.41		0.42		0.03		6		0.13		31		1.93		1.61		0.32		20
Pro forma Basel III fully phased-in common equity tier 1 capital ratio1:
Common equity tier 1 (regulatory)			$13,822		$13,763		$13,768		$13,570		$13,389
Less: Change in DTA and other threshold deductions (GAAP)			—		—		1		1		2
Pro forma Basel III fully phased-in common equity tier 1	Q		$13,822		$13,763		$13,767		$13,569		$13,387
Risk-weighted assets (regulatory general risk weight approach)			$123,857		$121,612		$119,492		$116,591		$114,084
Add: Net change in credit and other risk-weighted assets (regulatory)			244		228		228		232		244
Pro forma Basel III standardized approach risk-weighted assets	R		$124,101		$121,840		$119,720		$116,823		$114,328
Pro forma Basel III fully phased-in common equity tier 1 capital ratio1	Q/R		11.1 %		11.3 %		11.5 %		11.6 %		11.7 %

¹ Basel III ratios assume certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2019, are fully phased-in. Ratios also reflect the required US Standardized methodology for calculating RWAs, effective January 1, 2015.

24

Citizens Financial Group, Inc.

Key performance metrics, non-GAAP financial measures and reconciliations

(Adjusted excluding restructuring charges, special items and/or notable items)

($s in millions, except per share data)

	QUARTERLY TRENDS																		FULL YEAR
											4Q16 Change												2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15		3Q16				4Q15				2016		2015		2015
											$		%		$		%						$		%
Other income, adjusted
Other income (GAAP)		$28		$90		$18		$16		$23		($62)		(69%)		$5		22 %		$152		$94		$58		62 %
Less: Special items		—		—		—		—		—		—		—		—		—		—		—		—		—
Less: Notable items		—		67		—		—		—		(67)		(100)		—		—		67		—		67		100
Other income, adjusted (non-GAAP)		$28		$23		$18		$16		$23		$5		22 %		$5		22 %		$85		$94		($9)		(10%)
Salaries and employee benefits, adjusted:
Salaries and employee benefits (GAAP)		$420		$432		$432		$425		$402		($12)		(3%)		$18		4 %		$1,709		$1,636		$73		4 %
Less: Restructuring charges and special items		—		—		—		—		(2)		—		—		2		100		—		3		(3)		(100)
Less: Notable items		—		11		—		—		—		(11)		(100)		—		—		11		—		11		100
Salaries and employee benefits, adjusted (non-GAAP)		$420		$421		$432		$425		$404		($1)		0%		$16		4 %		$1,698		$1,633		$65		4 %
Outside services, adjusted:
Outside services (GAAP)		$98		$102		$86		$91		$104		($4)		(4%)		($6)		(6%)		$377		$371		$6		2 %
Less: Restructuring charges and special items		—		—		—		—		2		—		—		(2)		(100)		—		26		(26)		(100)
Less: Notable items		—		8		—		—		—		(8)		(100)		—		—		8		—		8		100
Outside services, adjusted (non-GAAP)		$98		$94		$86		$91		$102		$4		4 %		($4)		(4%)		$369		$345		$24		7 %
Occupancy, adjusted:
Occupancy (GAAP)		$77		$78		$76		$76		$74		($1)		(1%)		$3		4 %		$307		$319		($12)		(4%)
Less: Restructuring charges and special items		—		—		—		—		—		—		—		—		—		—		17		(17)		(100)
Less: Notable items		—		—		—		—		—		—		—		—		—		—		—		—		—
Occupancy, adjusted (non-GAAP)		$77		$78		$76		$76		$74		($1)		(1%)		$3		4 %		$307		$302		$5		2 %
Equipment expense, adjusted:
Equipment expense (GAAP)		$69		$65		$64		$65		$67		$4		6 %		$2		3 %		$263		$257		$6		2 %
Less: Restructuring charges and special items		—		—		—		—		—		—		—		—		—		—		1		(1)		(100)
Less: Notable items		—		—		—		—		—		—		—		—		—		—		—		—		—
Equipment expense, adjusted (non-GAAP)		$69		$65		$64		$65		$67		$4		6 %		$2		3 %		$263		$256		$7		3 %
Amortization of software, adjusted:
Amortization of software (GAAP)		$44		$46		$41		$39		$38		($2)		(4%)		$6		16 %		$170		$146		$24		16 %
Less: Restructuring charges and special items		—		—		—		—		—		—		—		—		—		—		—		—		—
Less: Notable items		—		3		—		—		—		(3)		(100)		—		—		3		—		3		100
Amortization of software, adjusted (non-GAAP)		$44		$43		$41		$39		$38		$1		2 %		$6		16 %		$167		$146		$21		14 %
Other operating expense, adjusted:
Other operating expense (GAAP)		$139		$144		$128		$115		$125		($5)		(3%)		$14		11 %		$526		$530		($4)		(1%)
Less: Restructuring charges and special items		—		—		—		—		—		—		—		—		—		—		3		(3)		(100)
Less: Notable items		—		14		—		—		—		(14)		(100)		—		—		14		—		14		100
Other operating expense, adjusted (non-GAAP)		$139		$130		$128		$115		$125		$9		7 %		$14		11%		$512		$527		($15)		(3 %)
Restructuring charges, special expense items and notable expense items include:
Restructuring charges		$—		$—		$—		$—		$—		$—		— %		$—		— %		$—		$26		($26)		(100)%
Special items		—		—		—		—		—		—		—		—		—		—		24		(24)		(100)
Notable items		—		36		—		—		—		(36)		(100)		—		—		36		—		36		100
Restructuring charges, special expense items and notable expense items		$—		$36		$—		$—		$—		($36)		(100%)		$—		— %		$36		$50		($14)		(28%)

25

Citizens Financial Group, Inc.

Key performance metrics, non-GAAP financial measures and reconciliations – segments

($s in millions)

		THREE MONTHS ENDED DEC 31,								THREE MONTHS ENDED SEPT 30,
		2016								2016
		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A		$92		$172		$18		$282		$92		$162		$43		$297
Less: Preferred stock dividends			—		—		—		—		—		—		7		7
Net income available to common stockholders	B		$92		$172		$18		$282		$92		$162		$36		$290
Return on average tangible common equity:
Average common equity (GAAP)			$5,275		$5,278		$9,092		$19,645		$5,190		$5,172		$9,448		$19,810
Less: Average goodwill (GAAP)			—		—		6,876		6,876		—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		1		1		—		—		1		1
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		523		523		—		—		509		509
Average tangible common equity	C		$5,275		$5,278		$2,738		$13,291		$5,190		$5,172		$3,080		$13,442
Return on average tangible common equity	B/C		6.97 %		12.94 %		NM		8.43 %		7.04 %		12.50 %		NM		8.58 %
Return on average total tangible assets:
Average total assets (GAAP)			$58,066		$48,024		$41,225		$147,315		$56,689		$47,902		$39,808		$144,399
Less: Average goodwill (GAAP)			—		—		6,876		6,876		—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		1		1		—		—		1		1
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		523		523		—		—		509		509
Average tangible assets	D		$58,066		$48,024		$34,871		$140,961		$56,689		$47,902		$33,440		$138,031
Return on average total tangible assets	A/D		0.63 %		1.42 %		NM		0.79 %		0.64 %		1.35 %		NM		0.86 %
Efficiency ratio:
Noninterest expense (GAAP)	E		$649		$187		$11		$847		$650		$181		$36		$867
Net interest income (GAAP)			639		347		—		986		621		327		(3)		945
Noninterest income (GAAP)			227		122		28		377		229		123		83		435
Total revenue (GAAP)	F		$866		$469		$28		$1,363		$850		$450		$80		$1,380
Efficiency ratio	E/F		74.90 %		39.83 %		NM		62.18 %		76.46 %		40.21 %		NM		62.88 %
		THREE MONTHS ENDED JUNE 30,								THREE MONTHS ENDED MAR 31,
		2016								2016
		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A		$90		$164		($11)		$243		$71		$133		$19		$223
Less: Preferred stock dividends			—		—		—		—		—		—		7		7
Net income available to common stockholders	B		$90		$164		($11)		$243		$71		$133		$12		$216
Return on average tangible common equity:
Average common equity (GAAP)			$5,110		$5,040		$9,618		$19,768		$5,089		$4,790		$9,688		$19,567
Less: Average goodwill (GAAP)			—		—		6,876		6,876		—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		2		2		—		—		3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		496		496		—		—		481		481
Average tangible common equity	C		$5,110		$5,040		$3,236		$13,386		$5,089		$4,790		$3,290		$13,169
Return on average tangible common equity	B/C		7.09 %		13.04 %		NM		7.30 %		5.59 %		11.19 %		NM		6.61 %
Return on average total tangible assets:
Average total assets (GAAP)			$55,660		$47,388		$39,131		$142,179		$55,116		$45,304		$38,360		$138,780
Less: Average goodwill (GAAP)			—		—		6,876		6,876		—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		2		2		—		—		3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		496		496		—		—		481		481
Average tangible assets	D		$55,660		$47,388		$32,749		$135,797		$55,116		$45,304		$31,962		$132,382
Return on average total tangible assets	A/D		0.65 %		1.39 %		NM		0.72 %		0.52 %		1.18 %		NM		0.68 %
Efficiency ratio:
Noninterest expense (GAAP)	E		$632		$186		$9		$827		$616		$187		$8		$811
Net interest income (GAAP)			602		314		7		923		581		300		23		904
Noninterest income (GAAP)			219		122		14		355		208		99		23		330
Total revenue (GAAP)	F		$821		$436		$21		$1,278		$789		$399		$46		$1,234
Efficiency ratio	E/F		76.98 %		42.88 %		NM		64.71 %		78.08 %		46.74 %		NM		65.66 %
		THREE MONTHS ENDED DEC 31,
		2015
		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A		$67		$152		$2		$221
Less: Preferred stock dividends			—		—		—		—
Net income available to common stockholders	B		$67		$152		$2		$221
Return on average tangible common equity:
Average common equity (GAAP)			$4,831		$4,787		$9,741		$19,359
Less: Average goodwill (GAAP)			—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		468		468
Average tangible common equity	C		$4,831		$4,787		$3,330		$12,948
Return on average tangible common equity	B/C		5.50 %		12.57 %		NM		6.75 %
Return on average total tangible assets:
Average total assets (GAAP)			$54,065		$43,835		$38,398		$136,298
Less: Average goodwill (GAAP)			—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		468		468
Average tangible assets	D		$54,065		$43,835		$31,987		$129,887
Return on average total tangible assets	A/D		0.49 %		1.37 %		NM		0.67 %
Efficiency ratio:
Noninterest expense (GAAP)	E		$624		$180		$6		$810
Net interest income (GAAP)			565		301		4		870
Noninterest income (GAAP)			226		107		29		362
Total revenue (GAAP)	F		$791		$408		$33		$1,232
Efficiency ratio	E/F		78.85 %		44.02 %		NM		65.76 %

26

Citizens Financial Group, Inc.

Key performance metrics, non-GAAP financial measures and reconciliations – segments

($s in millions)

		FULL YEAR
		2016								2015
		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A		$345		$631		$69		$1,045		$262		$579		($1)		$840
Less: Preferred stock dividends			—		—		14		14		—		—		7		7
Net income available to common stockholders	B		$345		$631		$55		$1,031		$262		$579		($8)		$833
Return on average tangible common equity:
Average common equity (GAAP)			$5,166		$5,071		$9,461		$19,698		$4,739		$4,666		$9,949		$19,354
Less: Average goodwill (GAAP)			—		—		6,876		6,876		—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		2		2		—		—		4		4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		502		502		—		—		445		445
Average tangible common equity	C		$5,166		$5,071		$3,085		$13,322		$4,739		$4,666		$3,514		$12,919
Return on average tangible common equity	B/C		6.68 %		12.44 %		NM		7.74 %		5.53 %		12.41 %		NM		6.45 %
Return on average total tangible assets:
Average total assets (GAAP)			$56,388		$47,159		$39,636		$143,183		$52,848		$42,800		$39,422		$135,070
Less: Average goodwill (GAAP)			—		—		6,876		6,876		—		—		6,876		6,876
Average other intangibles (GAAP)			—		—		2		2		—		—		4		4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		502		502		—		—		445		445
Average tangible assets	D		$56,388		$47,159		$33,260		$136,807		$52,848		$42,800		$32,987		$128,635
Return on average total tangible assets	A/D		0.61 %		1.34 %		NM		0.76 %		0.50 %		1.35 %		NM		0.65 %
Efficiency ratio:
Noninterest expense (GAAP)	E		$2,547		$741		$64		$3,352		$2,456		$709		$94		$3,259
Net interest income (GAAP)			2,443		1,288		27		3,758		2,198		1,162		42		3,402
Noninterest income (GAAP)			883		466		148		1,497		910		415		97		1,422
Total revenue (GAAP)	F		$3,326		$1,754		$175		$5,255		$3,108		$1,577		$139		$4,824
Efficiency ratio	E/F		76.57 %		42.26 %		NM		63.80 %		79.02 %		44.94 %		NM		67.56 %

27

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; and

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

28

Citizens Financial Group, Inc.

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.

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, 2015, filed with the United States Securities and Exchange Commission on February 26, 2016.

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

CFG-IR

29

EX-99.2

4Q16 and FY2016 Financial Results

January 20, 2017

Exhibit 99.2

Forward-looking statements and use of key performance metrics and Non-GAAP Financial Measures

2

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;

and

management’s

ability

to

identify

and

manage

these

and

other

risks.

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.

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,

2015,

filed

with

the

United

States

Securities

and

Exchange

Commission

on

February

26,

2016.

Key

performance

metrics

and

Non-GAAP

Financial

Measures

Key

performance

metrics:

Our

management

team

uses

our

key

performance

metrics

(“KPMs”)

to

gauge

our

performance

and

progress

over

time

in

achieving

our

strategic

and

operational

goals

and

also

in

comparing

our

performance

against

our

peers.

In

connection

with

our

path

to

becoming

an

independent

public

company,

we

established

the

following

financial

targets,

in

addition

to

others,

as

KPMs.

These

KPMs

are

utilized

by

our

management

in

measuring

our

progress

against

financial

goals

and

as

a

tool

in

helping

assess

performance

for

compensation

purposes.

These

KPMs

can

largely

be

found

in

our

Registration

Statements

on

Form

S-1

and

our

periodic

reports,

which

are

filed

with

the

Securities

and

Exchange

Commission,

and

are

supplemented

from

time

to

time

with

additional

information

in

connection

with

our

quarterly

earnings

releases.

Our

key

performance

metrics

include:

Return

on

average

tangible

common

equity

(“ROTCE”);

Return

on

average

total

tangible

assets

(“ROTA”);

Efficiency

ratio;

Operating

leverage;

and

Common

equity

tier

1

capital

ratio

(Basel

III

fully

phased-in

basis).

In

establishing

goals

for

these

KPMs,

we

determined

that

they

would

be

measured

on

a

management-reporting

basis,

or

an

operating

basis,

which

we

refer

to

externally

as

“Adjusted”

results.

We

believe

that

these

“Adjusted”

results,

which

exclude

restructuring

charges,

special

items

and

and/or

notable

items,

as

applicable,

provide

the

best

representation

of

our

underlying

financial

progress

toward

these

goals

as

they

exclude

items

that

our

management

does

not

consider

indicative

of

our

on-going

financial

performance.

We

have

consistently

shown

these

metrics

on

this

basis

to

investors

since

our

initial

public

offering

in

September

of

2014.

Adjusted

KPMs

are

considered

Non-GAAP

Financial

Measures.

Non-GAAP

Financial

Measures:

This

document

contains

Non-GAAP

Financial

Measures.

The

tables

in

the

appendix

present

reconciliations

of

our

Non-GAAP

Financial

Measures.

These

reconciliations

exclude

restructuring

charges,

special

items

and/or

notable

items,

which

are

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.

Notable

items

include

certain

revenue

or

expense

items

that

may

occur

in

a

reporting

period,

which

management

does

not

consider

indicative

of

on-going

financial

performance.

The

Non-GAAP

Financial

Measures

presented

in

the

appendix

include

“noninterest

income”,

“total

revenue”,

“noninterest

expense”,

“pre-provision

profit”,

“income

before

income

tax

expense”,

“income

tax

expense”,

“net

income”,

“net

income

available

to

common

stockholders”,

“other

income”,

“salaries

and

employee

benefits”,

“outside

services”,

“occupancy”,

“equipment

expense”,

“other

operating

expense”,

“net

income

per

average

common

share”,

“return

on

average

common

equity”

and

“return

on

average

total

assets.”

We

believe

these

Non-GAAP

Financial

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,

special

items

and/or

notable

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,

special

items

and/or

notable

items.

We

believe

this

presentation

also

increases

comparability

of

period-to-period

results.

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

Financial

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.

Table of contents

3

page

4Q16 highlights

4

4Q16 Adjusted

financial summary

7

Adjusted FY2016 performance vs. guidance

25

FY2017 outlook

26

1Q17 outlook

31

Appendix 1 –

Additional 2016 information

33

Appendix 2 –

Key performance metrics,

Non-GAAP Financial Measures and

reconciliations

41

Provision expense of $102 million increased $16 million from 3Q16, largely reflecting lower recoveries

Overall credit quality continues to improve; NPLs decreased 6% QoQ to 97 bps of loans

NPL coverage ratio of 118% vs. 112% in 3Q16 and 115% in 4Q15

Allowance to loans and leases of 1.15% vs. 1.18% in 3Q16 and 1.23% in 4Q15 reflects proactive effort to improve

underlying credit quality

Generated 8% YoY average loan growth, with strength in both commercial and retail

NII up 13% YoY and 4% QoQ

NIM of 2.90% improved 6 bps from 3Q16 and 13 bps YoY, driven largely by improved loan yields

Consumer

Banking

initiatives

–

Solid

deposit

and

loan

growth,

improvement

in

conforming

mortgage

volume,

and

strong sales force expansion, with a record 43 net mortgage loan officer hires during the quarter, as well as 12

financial consultants. Checkup has resulted in ~400,000 scheduled appointments YTD

Commercial

Banking

initiatives

–

Strong

loan

growth

of

10%

YoY;

capital

markets

fees

remain

at

near

record

levels

with continued momentum in global markets and treasury solutions

4Q16 highlights

4

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Current-period regulatory capital ratios are preliminary. Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2019.

Improving

profitability and

returns

Strong capital,

liquidity and funding

Excellent credit

quality

Continued progress

on strategic growth,

efficiency and

balance sheet

optimization

initiatives

Robust

capital

levels

with

a

common

equity

tier

1

ratio

of

11.2%

(2)

;

TBV

per

share

of

$25.69,

up

4%

from

4Q15

Repurchased $180 million of common shares during the quarter at an average price of $28.71

4Q16 average deposits increased $7.8 billion, or 8% vs. 4Q15; average loan-to-deposit ratio of 98%

Diluted

EPS

of

$0.55

up

31%

from

4Q15;

down

2%

from

3Q16

and

up

6%

from

Adjusted

3Q16

levels

Revenue

of

$1.4

billion,

up

11%

YoY

and

down

1%

QoQ;

Adjusted

revenue

up

4%

QoQ

Positive

operating

leverage

YoY

of

6%

-

efficiency

ratio

improved

~3.6

percentage

points

YoY

to

62%

(1)

Continued

progress

with

ROTCE

of

8.4%

compared

to

6.7%

in

4Q15

and

8.6%,

or

8.0%

on

an

Adjusted

basis,

in

3Q16

(1)

(1)

(1)

Restructuring charges, special items and/or notable items

5

$s in millions, except per share data

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for

their calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2016

GAAP

results

include

a

net

$19

million

after-tax

benefit

tied

to

the

3Q16

TDR

Transaction

gain,

partially

offset

by

other

costs

associated

with

Asset

Finance

repositioning,

TOP

III

efficiency

initiatives

and

operational

items.

2015

GAAP

results

were

reduced

by

a

net

$31

million

after

tax

in

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”).

Restructuring charges, special items and/or notable items

(1)

4Q16 change

2016 change

($s in millions, except per share data)

4Q16

3Q16

from 3Q16

2016

2015

from 2015

Pre-tax net noninterest income

—

$       

67

$       

(67)

$                   

67

$       

—

$       

67

$                    

After-tax noninterest income

—

41

(41)

41

—

41

Pre-tax total noninterest expense

—

(36)

36

(36)

(50)

14

After-tax total noninterest expense

—

(22)

22

(22)

(31)

9

Pre-tax restructuring charges, special items

and notable items

—

31

(31)

31

(50)

81

After-tax restructuring charges, special items

and notable items

—

19

(19)

19

(31)

50

Diluted EPS impact

—

$       

0.04

$   

(0.04)

$               

0.04

$   

(0.06)

$ 

0.10

$                 

GAAP financial summary

6

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for

their calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Includes held for sale. Loan-to-deposit ratio is period end.

3)

Full-time equivalent employees.

Linked quarter:

Net income available to common stockholders down 3% and EPS

down 2% from 3Q16 levels that included a net $19 million in

after-tax notable items

NII up $41 million, or 4%, reflecting 2% average loan growth and a

6 bp improvement in NIM given higher loan yields and rates

Noninterest income decreased $58 million from 3Q16 levels that

included a $72 million net TDR gain

Noninterest expense decreased $20 million from 3Q16 levels that

included $36 million of notable items in salaries and benefits,

outside services and other

Provision for credit losses increased $16 million

Prior-year quarter:

Net income available to common stockholders up 28%, reflecting

strong revenue growth and expense discipline coupled with

investments to drive future growth; diluted EPS up 31%

NII up $116 million, or 13%, reflecting 8% average loan growth

and a 13 bp improvement in NIM given higher loan yields

Noninterest income up $15 million, largely reflecting growth in

capital markets, mortgage banking, other income and FX & LC

fees partially offset by the card reward accounting change impact

and lower trust and investment services fees

Noninterest expense up $37 million driven by growth in salaries

and employee benefits, largely incentive compensation tied to

revenue, as well as higher other expense, amortization of

software, occupancy and equipment expense partially offset by

lower outside services

Provision for credit losses increased $11 million

Highlights

4%

113 bps

LQ excluding

notable

Items

2%

5%

4%

6%

41 bps

4Q16 change from

$s in millions

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Net interest income

986

$   

945

$   

870

$   

41

$      

4

%

116

$   

13

%

Noninterest income

377

435

362

(58)

(13)

15

4

Total revenue

1,363

1,380

1,232

(17)

(1)

131

11

Noninterest expense

847

867

810

(20)

(2)

37

5

Pre-provision profit

516

513

422

3

1

94

22

Provision for credit losses

102

86

91

16

19

11

12

Income before income tax

expense

414

427

331

(13)

(3)

83

25

Income tax expense

132

130

110

2

2

22

20

Net income

282

$   

297

$   

221

$   

(15)

$    

(5)

61

$      

28

Preferred dividends

—

$      

7

$        

—

$      

(7)

$      

(100)

—

$      

—

Net income available to

common stockholders

282

$   

290

$   

221

$   

(8)

$      

(3)

%

61

$      

28

%

$s in billions

Average interest-earning

assets

135

$   

132

$   

124

$   

3

$        

2

%

11

$      

8

%

Average deposits

109

$   

107

$   

101

$   

2

$        

2

%

8

$        

8

%

Key performance metrics

(1)

Net interest margin

2.90

%

2.84

%

2.77

%

6

bps

13

bps

Loan-to-deposit ratio

(2)

98.6

97.9

96.9

77

168

ROACE

5.7

5.8

4.5

(12)

119

ROTCE

8.4

8.6

6.7

(15)

168

ROA

0.8

0.8

0.6

(6)

12

ROTA

0.8

0.9

0.7

(7)

12

Efficiency ratio

62.2

%

62.9

%

65.8

%

(70)

bps

(358)

bps

FTEs

(3)

17,639

17,625

17,714

14

0

%

(75)

(0)

%

Per common share

Diluted earnings

0.55

$  

0.56

$  

0.42

$  

(0.01)

$

(2)

%

0.13

$  

31

%

Tangible book value

(1)

25.69

$

26.20

$

24.63

$

(0.51)

$

(2)

%

1.06

$  

4

%

Average diluted shares

outstanding (in millions)

513.9

521.1

530.3

(7.2)

(1)

%

(16.4)

(3)

%

Growth in interest-rate products and leasing fees, mortgage

banking income, FX & LC fees and securities gains largely

offset by lower card fees

Adjusted results

(1)

reflect lower salaries and benefits, more

than offset by higher other expense, outside services and

equipment expense

(1)

7

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

Highlights

Linked quarter:

Net

income

available

to

common

stockholders

(1)

of

$282

million

increased

$11

million,

or

4%,

from

Adjusted

3Q16

levels

(1)

NII up $41 million, or 4%, reflecting 2% average loan growth and a 6 bp

improvement in NIM given higher loan yields and rates

Adjusted

noninterest

income

(1)

increased

$9

million,

or

2%

Adjusted noninterest expense

(1)

increased $16 million, or 2%

Provision for credit losses up $16 million driven by higher net

charge-offs tied to a $14 million reduction in recoveries and a

$7 million increase tied to a one-time methodology change in auto

Prior-year quarter:

Net income available to common stockholders of $282 million

increased $61 million, or 28%, reflecting 6.0% positive operating

leverage. Diluted EPS of $0.55 increased 31%

NII

up

$116

million,

or

13%,

reflecting

8%

average

loan

growth

and

a

13 bp increase in NIM given higher loan yields and rates

Noninterest income

(1)

increased $15 million, or 4%

Noninterest expense

(1)

up $37 million, or 5%, driven by an increase in

salaries and employee benefits, largely incentive compensation tied to

revenue as well as increased amortization of software and other

expense

Provision for credit losses increased $11 million

4Q16

Adjusted

financial

summary

(1)

4Q16

(1)

change from

$s in millions

4Q16

Reported

3Q16

Adjusted

(1)

Reported

4Q15

Adjusted

3Q16

Reported

4Q15

Net interest income

986

$      

945

$         

870

$       

4

%

13

%

Noninterest income

377

368

362

2

4

Total revenue

1,363

1,313

1,232

4

11

Noninterest expense

847

831

810

2

5

Net income available to

common stockholders

282

$      

271

$         

221

$       

4

%

28

%

Key performance metrics

(1)

ROTCE

(1)

8.4

%

8.0

%

6.7

%

41

bps

168

bps

Efficiency ratio

(1)

62.2

%

63.3

%

65.8

%

(113)

bps

(358)

bps

Diluted EPS

0.55

$     

0.52

$        

0.42

$      

6

%

31

%

Diluted

EPS

of

$0.55

increased

6%

(1)

Reflecting growth in interest-rate products and leasing fees,

mortgage banking income, FX & LC fees, partially offset by lower

card fees

Capital markets fees stable with strong 3Q16 results

Lower salaries and benefits more than offset by higher other

expense, outside services and equipment expense

Adjusted

efficiency

ratio

improved

~113

bps

(1)

Strength in capital markets, mortgage banking, other income and

FX & LC fees were partially offset by the card reward accounting

change impact and lower trust and investment services fees

Efficiency

ratio

improved

358

bps

(1)

FY16 vs FY15:

Net income available to common stockholders up $198 million,

or 24%, from 2015. Includes a $50 million after-tax net benefit

tied to the change in net restructuring charges, special items

and notable items

Diluted EPS of $1.97, up $0.42, or 27%

NII up $356 million, reflecting 8% average loan growth and the

benefit of balance sheet optimization strategies and higher

rates

Noninterest income increased $75 million, reflecting $67

million of notable items

—

Underlying results driven by strength in capital markets

fees, service charges and fees and mortgage fees, partially

offset by the card reward accounting change impact, lower

securities gains and trust and investment services fees

Noninterest expense increased $93 million from 2015 levels

that included $50 million in restructuring charges, special items

and notable items, $14 million more than in 2016

—

Underlying results

reflect higher salaries and employee

benefits , amortization of software, equipment expense,

occupancy and outside services, partially offset by lower

other operating expense

Provision for credit losses increased $67 million

TBV per share of $25.69, up 4%

2016 GAAP financial summary

8

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Includes held for sale. Loan-to-deposit ratio is period end.

3)

Full-time equivalent employees.

Highlights

8%

260 bps

YoY excluding

restructuring

charges/

notable

3%

14%

17%

20%

91 bps

2016 change from 2015

$s in millions

2016

2015

$

%

Net interest income

3,758

$      

3,402

$      

356

$         

10

%

Noninterest income

1,497

1,422

75

5

Total revenue

5,255

4,824

431

9

Noninterest expense

3,352

3,259

93

3

Pre-provision profit

1,903

1,565

338

22

Provision for credit losses

369

302

67

22

Income before income tax

expense

1,534

1,263

271

21

Income tax expense

489

423

66

16

Net income

1,045

$      

840

$         

205

$         

24

Preferred dividends

14

$            

7

$              

7

$              

100

Net income available to

common stockholders

1,031

$      

833

$         

198

$         

24

%

$s in billions

Average interest-earning assets

131

$         

123

$         

8

$              

6

%

Average deposits

(2)

105

$         

99

$            

6

$              

6

%

Key metrics

Net interest margin

2.86

%

2.75

%

11

bps

Loan-to-deposit ratio

(2)

98.6

96.9

168

ROACE

5.2

4.3

93

ROTCE

7.7

6.4

129

ROA

0.7

0.6

11

ROTA

0.8

0.7

11

Efficiency ratio

63.8

%

67.6

%

(376)

bps

FTEs

(3)

17,639

17,714

(75)

(0)

%

Per common share

Diluted earnings

1.97

$        

1.55

$        

0.42

$        

27

%

Tangible book value

(1)

25.69

$      

24.63

$      

1.06

$        

4

%

Average diluted shares

outstanding (in millions)

523.9

538.2

(14.3)

(3)

%

items

(1)

FY16 vs FY15:

Net income available to common stockholders up $148 million, or 17%,

from 2015

Diluted EPS of $1.93, up $0.32, or 20%

NII up $356 million, reflecting 8% average loan growth and the benefit of

balance sheet optimization strategies and higher rates

Noninterest income increased 1% relative to 2015

—

Strength in capital markets fees, service charges and fees and

mortgage fees, was partially offset by the card reward accounting

change impact, lower securities gains and trust and investment

services fees

Noninterest expense increased $107 million, or 3%, from 2015 levels

—

Results

reflect higher salaries and employee benefits, amortization of

software, equipment expense, outside services, and occupancy

partially offset by lower other operating expense

Provision for credit losses increased $67 million

Efficiency ratio improved by 2.6%; positive operating leverage of 4.2%

9

Highlights

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

Adjusted

2016

financial

summary

(1)

2016

2015

2016 change from 2015

$s in millions

Adjusted

(1)

Adjusted

(1)

$

%

Net interest income

3,758

$      

3,402

$      

356

$         

10

%

Noninterest income

1,430

1,422

8

1

Total revenue

5,188

4,824

364

8

Noninterest expense

3,316

3,209

107

3

Net income available to

common stockholders

1,012

$      

864

$         

148

$         

17

%

Key performance metrics

(1)

ROTCE

(1)

7.6

%

6.7

%

91

bps

Efficiency ratio

(1)

63.9

%

66.5

%

(260)

bps

Diluted EPS

1.93

$        

1.61

$        

0.32

$        

20

%

Net interest income

10

Highlights

1)

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

Linked quarter:

NII up $41 million, or 4%

Reflects 2% average loan growth driven by commercial,

mortgage, other unsecured retail and student loans

NIM of 2.90% improved 6 bps from the third quarter 2016

Improved commercial and consumer loan yields, including the

benefit of an increase in LIBOR, as well as lower pay-fixed swap

costs, partially offset by an increase in deposit costs and the

impact of an increase in investment portfolio balances

Prior-year quarter:

NII up $116 million, or 13%, with NIM up 13 bps

8% average loan growth

Growth in NIM driven by improved loan yields, reflecting

continued pricing and portfolio-optimization initiatives, the

benefit from higher interest rates and a reduction in pay-fixed

swap costs

NIM benefits were partially offset by a reduction in investment

portfolio yields, which included a reduction in Federal Reserve

Bank stock dividends, as well as increased funding costs

Net interest income

$s in millions,

except earning

assets

Average interest-earning assets

Average interest-earning assets

Net interest income

Net interest margin

$s in billions

4Q15

1Q16

2Q16

3Q16

4Q16

Retail loans

52.4

$  

53.2

$  

53.5

$  

54.3

$  

55.5

$    

Commercial loans

45.8

47.0

49.1

49.7

51.0

Investments and cash

(1)

25.7

25.5

26.0

27.1

27.7

Loans held for sale

0.3

0.4

0.8

0.5

0.6

Total interest-earning assets

124.2

$

126.2

$

129.5

$

131.7

$

134.8

$ 

Loan yields

3.34%

3.46%

3.48%

3.52%

3.58%

Total cost of funds

0.41%

0.40%

0.42%

0.44%

0.44%

$124B

$126B

$129B

$132B

$135B

870

904

923

945

986

4Q15

1Q16

2Q16

3Q16

4Q16

2.77%

2.86%

2.84%

2.84%

2.90%

2.77%

2.90%

0.21%

0.01%

(0.03)%

(0.06)%

4Q15 NIM%

Loan

yields

Borrowing

costs/other

Deposit

costs

Investment

portfolio

yield/growth

4Q16 NIM%

2.84%

2.90%

0.05%

0.03%

(0.01)%

(0.01)%

3Q16 NIM%

Loan

yields

Borrowing

costs/other

Deposit

costs

Investment

portfolio

yield/growth

4Q16 NIM%

Net interest margin

11

NIM walk 4Q15 to 4Q16

NIM walk 3Q16 to 4Q16

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

$377

$368

$362

4Q16

3Q16

4Q15

Service charges and fees

Card fees

Trust and inv services

FX & LC fees

Mortgage banking fees

Capital markets fee income

Securities gains (losses)

Adjusted other income

Noninterest income

Linked quarter:

Noninterest income decreased $58 million, or 13%, from 3Q16 levels

that included a $67 million benefit from notable items in other income

Adjusted

noninterest

income

(1)

increased

$9

million,

or

2%

Service charges and fees were up slightly

Card fees declined modestly reflecting seasonally lower foreign

ATM fees

Mortgage banking fees increased $3 million reflecting improved

mortgage servicing rights (“MSR”) valuation partially offset by lower

loan sales gains

Capital markets fees were flat, in line with near-record 3Q16 levels with

continued strong loan-syndications activity

FX & LC fees improved $2 million with continued momentum from

expanded capabilities

Securities gains of $3 million tied to portfolio adjustments

Prior-year quarter:

Noninterest income increased $15 million, or 4%

Capital markets fees increased $19 million, reflecting healthier market

conditions and ongoing momentum as we continue to broaden our

capabilities

Mortgage banking fees grew $16 million, reflecting higher application

and origination volumes with improved secondary mix, increased loan

sales and spreads and improved MSR valuation

Service charges and fees decreased $3 million on lower commercial

categories, including loan prepayment fees

Card fees were down $10 million from 4Q15 levels, largely reflecting

the card reward accounting change impact

Other income up $3 million from 4Q15 levels, driven by an increase in

interest-rate product revenue

12

Highlights

$s in millions

4Q16 change from

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Service charges and fees

153

$     

152

$     

156

$     

1

$         

1

%

(3)

$        

(2)

%

Card fees

50

52

60

(2)

(4)

(10)

(17)

Trust & investment services fees

34

37

39

(3)

(8)

(5)

(13)

Mortgage banking fees

36

33

20

3

9

16

80

Capital markets fees

34

34

15

—

—

19

127

FX & LC fees

25

23

23

2

9

2

9

Securities gains, net

3

—

10

3

100

(7)

(70)

Other income

42

104

39

(62)

(60)

3

8

Reported noninterest income

377

$     

435

$     

362

$     

(58)

$     

(13)

%

15

$       

4

%

Restructuring charges, special

items and/or notable items

(1)

—

67

—

(67)

(100)

—

NM

Adjusted noninterest income

(1)

377

$     

368

$     

362

$     

9

$         

2

%

15

$       

4

%

Note: Other income includes bank-owned life insurance and other income.

(1)

4Q16 change from

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Salaries and benefits

420

$     

432

$     

402

$        

(12)

$     

(3)

%

18

$        

4

%

Occupancy

77

78

74

(1)

(1)

3

4

Equipment expense

69

65

67

4

6

2

3

Outside services

98

102

104

(4)

(4)

(6)

(6)

Amortization of software

44

46

38

(2)

(4)

6

16

Other expense

139

144

125

(5)

(3)

14

11

Reported noninterest expense

847

$     

867

$     

810

$        

(20)

$     

(2)

%

37

$        

5

%

Adjusted salaries and benefits

(1)

420

$     

421

$     

404

$        

(1)

$        

(0)

%

16

$        

4

%

Occupancy

77

78

74

(1)

(1)

3

4

Equipment expense

69

65

67

4

6

2

3

Adjusted outside services

(1)

98

94

102

4

4

(4)

(4)

Adjusted amortization of software

(1)

44

43

38

1

2

6

16

Adjusted other expense

(1)

139

130

125

9

7

14

11

Adjusted noninterest expense

(1)

847

$     

831

$     

810

$        

16

$       

2

%

37

$        

5

%

Noninterest expense

13

Highlights

(1)

(1)

(1)

$s in millions

Full-time equivalents (FTEs)

17,639

17,625

17,714

Linked quarter:

Noninterest expense decreased $20 million, or 2%, from 3Q16 levels

that included $36 million of notable items

Adjusted

noninterest

expense

(1)

increased

$16

million,

or

2%

Salaries and employee benefits expense decreased $12 million from

3Q16

levels

and

remained

stable

on

an

Adjusted

basis

(1)

,

as

higher

revenue-based incentives were largely offset by a reduction

in benefits

FTEs increased 14, as efficiency reductions largely offset

strategic hiring

Equipment expense increased $4 million, reflecting increased vendor

contract license and maintenance costs

Outside services down $4 million; increased $4 million on an Adjusted

basis

(1)

, largely tied to consumer loan origination and servicing costs

Amortization of software decreased $2 million

Other expense decreased $5 million;

up $9 million on an Adjusted

basis

(1)

, reflecting higher fraud, legal and regulatory costs

Prior-year quarter:

Noninterest expense increased $37 million, or 5%, reflecting higher

salaries and benefits, other expense and software amortization

expense partially offset by the card reward accounting change impact

Salaries

and

employee

benefits

up

$16

million

from

Adjusted

4Q15

(1)

,

reflecting merit increases and higher revenue-based incentives

FTEs decreased 75, reflecting the benefit of our our efficiency

initiatives which more than offset sales force and strategic hiring

Outside

services

decreased

$4

million

from

Adjusted

4Q15

(1)

,

related

to lower regulatory costs

Amortization of software was up $6

million

reflecting increased

technology investments

Other expense increased $14 million related to higher FDIC insurance

expense and higher fraud, legal and regulatory costs

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

(1)

$847

$831

$810

62%

63%

66%

4Q16

3Q16

4Q15

Adjusted all other

Occupancy & equipment

Adjusted salary and benefits

Adjusted efficiency ratio

4Q16 change from

$s in billions

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Investments and interest bearing

deposits

27.7

$   

27.1

$   

25.7

$   

0.6

$      

2

%

2.0

$      

8

%

Total commercial loans

51.0

49.7

45.8

1.3

3

5.2

11

Total retail loans

55.5

54.3

52.4

1.2

2

3.1

6

Total loans and leases

106.5

104.0

98.2

2.5

2

8.3

8

Loans held for sale

0.6

0.5

0.3

0.0

3

0.2

65

Total interest-earning assets

134.8

131.7

124.2

3.1

2

10.6

8

Total noninterest-earning assets

12.6

12.7

12.1

(0.2)

(1)

0.5

4

Total assets

147.3

$ 

144.4

$ 

136.3

$ 

2.9

$      

2

11.0

$   

8

Low-cost core deposits

(1)

57.5

56.2

52.7

1.3

2

4.9

9

Money market deposits

38.4

37.6

36.5

0.8

2

1.9

5

Term deposits

13.2

12.8

12.2

0.4

3

1.0

8

Total deposits

109.1

$ 

106.6

$ 

101.4

$ 

2.5

$      

2

7.8

$      

8

Total borrowed funds

15.2

14.4

12.6

0.8

6

2.6

21

Total liabilities

127.4

$ 

124.3

$ 

116.7

$ 

3.1

$      

2

10.7

$   

9

Total stockholders' equity

19.9

20.1

19.6

(0.2)

(1)

0.3

1

Total liabilities and equity

147.3

$ 

144.4

$ 

136.3

$ 

2.9

$      

2

%

11.0

$   

8

%

Consolidated average balance sheet

Linked quarter:

Total earning assets up $3.1 billion, or 2%, with loan

growth of $2.5 billion, or 2%

—

Retail loans up $1.2 billion, or 2%, driven by growth

in Home Mortgage, Education Finance and

Consumer Unsecured, partially offset by

Home Equity

—

Commercial loans up $1.3 billion, or 3%, on

continued strength in Mid-corporate and Industry

Verticals and Commercial Real Estate

Total deposits increased $2.5 billion, or 2%, driven by

growth in demand deposits, money market and

term deposits

Borrowed funds increased $831 million, reflecting an

increase in short-term borrowings at quarter-end

Prior-year quarter:

Total earning assets up $10.6 billion, or 8%, with loan

growth of $8.3 billion, or 8%

—

Commercial loans up $5.2 billion, or 11%, driven by

strength in Mid-corporate and Industry Verticals,

Commercial Real Estate, and Franchise Finance,

partially offset by lower Asset Finance balances

—

Retail loans up $3.1 billion, or 6%, driven by

strength in Education Finance, Home Mortgage,

and Consumer Unsecured, partially offset by lower

Home Equity balances

Total deposits up $7.8 billion, or 8%, due to growth in

low-cost core deposits

Borrowed funds increased $2.6 billion, reflecting

growth in long-term senior debt and incremental long-

term FHLB borrowings as we continue to strengthen our

term funding profile

14

Highlights

Note: Loan portfolio trends reflect non-core portfolio impact not included in segment results on pages 15 and 16.

1)

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

$134.8 billion

Interest-earning assets

$124.3 billion

Deposits/borrowed funds

Total

Retail

41%

Total

Commercial

38%

CRE

Other

Commercial

Residential

mortgage

Total home

equity

Automobile

Other

Retail

Investments

and

interest-bearing

deposits

Retail /

Personal

Commercial/

Municipal/

Wholesale

Borrowed

funds

8%

30%

11%

13%

10%

7%

21%

47%

41%

12%

$12.2

$12.7

$12.9

$13.6

$14.4

$17.2

$17.0

$16.6

$16.3

$16.0

$13.8

$13.8

$14.0

$14.1

$14.0

$3.7

$4.5

$5.1

$5.5

$5.9

$3.0

$3.0

$2.9

$2.9

$2.9

$2.6

$2.5

$2.5

$2.6

$3.0

$52.5B

$53.5B

$54.0B

$55.0B

$56.2B

4Q15

1Q16

2Q16

3Q16

4Q16

Mortgage

Home Equity

Auto

Student

Business Banking

Other

Consumer Banking average loans and leases

15

1)

Other includes Credit Card, RV, Marine, Other.

$s in billions

Linked quarter:

Average loans increased $1.2 billion, or 2%, largely reflecting

growth in residential mortgages, student and other unsecured

retail loans, partially offset by lower home equity balances

Consumer loan yields up 5 bps, reflecting the benefit of

continued improvement in mix toward student and other

unsecured retail

Prior-year quarter:

Average loans increased $3.7 billion, or 7%, driven by student

loans, residential mortgages and unsecured retail loans

partially offset by lower home equity outstandings

Consumer loan yields up 23 bps, reflecting initiatives to

improve risk-adjusted returns, along with higher interest rates

Highlights

Average loans and leases

(1)

Yields

3.73%

3.84%

3.88%

3.91%

3.96%

Yields

2.57%

2.75%

2.80%

2.82%

2.93%

$6.5

$6.4

$6.9

$7.0

$7.3

$3.1

$3.5

$4.1

$4.2

$4.3

$3.5

$3.9

$4.2

$4.5

$4.7

$11.8

$11.9

$11.9

$12.0

$12.2

$6.1

$6.2

$6.1

$6.0

$4.9

$8.5

$8.7

$9.2

$9.5

$9.8

$3.0

$3.2

$3.5

$3.3

$3.7

$42.5B

$43.8B

$45.9B

$46.5B

$46.9B

4Q15

1Q16

2Q16

3Q16

4Q16

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 $371 million, or 1%, as continued strength in

Mid-corporate and Industry Verticals and Commercial Real Estate

was partially offset by the impact of the 3Q16 transfer of

$1.2 billion of leases and loans to non-core

Underlying average loans up 3%

Loan yields improved 11 bps given higher short-term LIBOR rates

Prior-year quarter:

Average loans up $4.4 billion, or 10%, on strength in Mid-

corporate and Industry Verticals, Commercial Real Estate ,

Franchise Finance and partially offset by the impact of the 3Q16

transfer to non-core

Underlying average loans up 13%

Loan yields increased 36 bps, reflecting improved mix and higher

rates

16

1)

Other includes Business Capital, Govt, Corporate Finance, Treasury Solutions, Corporate and Commercial Banking Admin.

Highlights

$s in billions

Average loans and leases

(1)

3%

Growth rate

excluding 3Q16

impact of lease

portfolio move to

non-core

(1)

$44.6

$44.6

$44.9

$46.4

$47.2

$27.5

$27.2

$27.5

$27.5

$28.4

$17.1

$18.0

$19.0

$20.0

$20.3

$12.2

$12.2

$12.6

$12.8

$13.2

$1.6

$0.9

$1.0

$0.9

$1.0

$5.0

$3.1

$3.7

$2.6

$3.2

$6.0

$9.9

$10.3

$10.9

$11.0

$114.0B

$115.9B

$119.0B

$121.0B

$124.3B

4Q15

1Q16

2Q16

3Q16

4Q16

Money market & savings

DDA

Checking with interest

Term deposits

Total fed funds & repo

Short-term borrowed funds

Total long-term borrowings

Deposit cost of funds

0.24%

0.24%

0.24%

0.27%

0.28%

Total cost of funds

0.41%

0.40%

0.42%

0.44%

0.44%

Average funding and cost of funds

Linked quarter:

Total average deposits up $2.5 billion, or 2%

Largely growth in demand deposits, money market and

term deposits

Total deposit costs of 0.28% increased 1 bp, driven by

higher incremental commercial deposit growth and

rising short-term interest rates

Total cost of funds remained stable

Prior-year quarter:

Total average deposits increased $7.8 billion, or 8%, on

strength across all deposit categories

Total deposit costs increased 4 bps, driven by higher

short-term rates, which was largely offset by continued

pricing discipline

Total borrowed funds cost increase reflects continued shift

away from short-term funding

17

Highlights

Average interest-bearing liabilities and DDA

$s in billions

1,216

1,224

1,246

1,240

1,236

115%

113%

119%

112%

118%

4Q15

1Q16

2Q16

3Q16

4Q16

Allowance for loan and lease losses

NPL coverage ratio

($3)

$9

$2

$19

$16

$73

$67

$56

$59

$82

$7

$7

$7

$5

$6

$77

$83

$65

$83

$104

0.31%

0.33%

0.25%

0.32%

0.39%

4Q15

1Q16

2Q16

3Q16

4Q16

Commercial

Retail

SBO

Net c/o ratio

$77

$83

$65

$83

$104

$91

$91

$90

$86

$102

$1.1B

$1.1B

$1.0B

$1.1B

$1.0B

4Q15

1Q16

2Q16

3Q16

4Q16

Net charge-offs

Provision for credit losses

1.23%

1.21%

1.20%

1.18%

1.15%

Allowance to loan coverage ratio

Overall credit quality continued to improve, reflecting the benefit of growth in high quality lower

risk retail loans and stabilization in commercial

NPLs to total loans and leases improved to 0.97% compared from 1.05% in 3Q16 and 1.07%

in 4Q15

NPLs decreased $62 million, reflecting a $53 million decrease in retail and a $9 million

decrease in commercial

Net charge-offs of $104 million, or 0.39% of average loans and leases, increased $21 million

from 3Q16

Commercial net charge-offs of $16 million decreased $3 million from 3Q16

Retail net charge-offs of $88 million increased $24 million due to increases in Auto and

Home Equity, driven by lower recoveries and a $7 million increase tied to a one-time

methodology change in auto

Provision for credit losses of $102 million increased $16 million, largely driven by a $14 million

reduction in recoveries of prior-period charge-offs from relatively high third quarter levels; YoY

reflects impact of credit normalization and loan growth

Allowance to total loans and leases of 1.15% vs. 1.18% in 3Q16 and 1.23% in 4Q15 reflects

proactive efforts to improve underlying credit quality

Strong credit-quality trends continue

18

Highlights

1)

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

$s in millions

Net charge-offs (recoveries)

NPLs to loans

and leases

NPLs

(1)

1.07%

1.07%

1.01%

1.05%

0.97%

Provision for credit losses, charge-offs, NPLs

Allowance for loan and lease losses

as of

$s in billions (period-end)

4Q15

1Q16

2Q16

3Q16

4Q16

Basel III transitional basis

(1,2)

Common equity tier 1 capital

13.4

$     

13.6

$     

13.8

$     

13.8

$     

13.8

$     

Risk-weighted assets

114.1

$   

116.6

$   

119.5

$   

121.6

$   

123.9

$   

Common equity tier 1 ratio

11.7 %

11.6 %

11.5 %

11.3 %

11.2 %

Total capital ratio

15.3 %

15.1 %

14.9 %

14.2 %

14.0 %

Basel III fully phased-in

(1,3)

Common equity tier 1 ratio

11.7%

11.6%

11.5%

11.3%

11.1%

15.3%

15.1%

14.9%

14.2%

14.0%

11.7%

11.6%

11.5%

11.3%

11.2%

4Q15

1Q16

2Q16

3Q16

4Q16

Total capital ratio

Common equity tier 1 ratio

97%

99%

98%

98%

99%

4Q15

1Q16

2Q16

3Q16

4Q16

Capital and liquidity remain strong

19

Highlights

1)

Current-reporting period regulatory capital ratios are preliminary.

2)

Basel III ratios assume that certain definitions impacting qualifying Basel III capital will phase in through 2019. Ratios also reflect the required U.S. Standardized methodology for calculating RWAs,

effective January 1, 2015.

3)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

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 minimal LCR requirement of 90% began January 2016.

Reflects current understanding of Net Stable Funding Ratio (NSFR).

5)

Period end includes held for sale.

Capital levels remain above regional peers

4Q16 Basel III common equity tier 1 ratio (transitional basis)

down ~16 basis points from 3Q16

Net income: ~23 bps increase

RWA growth: ~21 bps decrease

Dividends, treasury stock and other: ~18 bps decrease

LDR of 99% increased 77 bps from 3Q16

Fully compliant with LCR and current understanding of

NSFR

(4)

2016 CCAR plan reflects continued commitment toward

prudent return of capital with $690 million in

share repurchases

Repurchased $180 million, or 6.3 million common shares,

during the quarter at an average price of $28.71

Loan-to-deposit ratio

(5)

Capital ratio trend

(1,2)

(1,2)

Initiative

FY16

Status

Commentary

Reenergize household growth

Primary HHs up YoY. Citizens Checkup helped drive ~400,000 appointments in FY16 with focus on deepening

relationships with mass affluent and affluent customers.

Expand mortgage sales force

Strong momentum in scaling the business; LOs up 96 in FY16 to 538, originations up 36% FY16 and 56% in 4Q16

vs. 4Q15; conforming mix surpassed 40% in 4Q16.

Optimize Auto

Continue to optimize returns of business through focus on most profitable dealers and increased pricing.

Reducing portfolio growth to make room for more attractive student and unsecured assets.

Grow Student/Installment Credit

Sustained momentum in Student with total loan balances up 60% compared to 4Q15 driven by steady growth in

Ed Refi. Apple program continues to grow; expanding unsecured platform through marketing and new partners.

Expand Business Banking

Increasing focus on deposits, cash management, and other fee income streams, with deposits up 6% vs. 4Q15.

Cost of deposits remains relatively stable at 11 bps and continues to provide attractive source of funds.

Expand Wealth sales force

Financial consultants up 13% in FY16 to 362. Total investment sales volume increased 10% vs. FY15 driven by

53% increase in fee-based sales. Revenue growth continues to take longer due to shift to fee-based business.

Build out Mid-Corp & verticals

Overall

loan

growth

of

over

20%

vs.

4Q15,

driven

by

Healthcare

and

Technology

industry

verticals,

which

had

loan growth of 39% vs. 4Q15. Fee income growth up $21 million, or 17% vs. FY15.

Continue development of Capital

and Global Markets activities

Continue to gain market share, fee income up 30% in FY16. Growth driven by robust syndications and expanded

capabilities

in

interest

rate

and

FX

products.

Middle

Market

bookrunner

rank

improved

YoY

from

#9

to

#7

(1)

.

Build out Treasury Solutions

Fees up

11% in FY16 reflecting pricing increase, improving sales activity and 14% YoY increase in commercial

card

with purchase volume up 14% YoY.

Grow Franchise Finance

Loans up 24% YoY and 6% QoQ. Added 64 net new clients in 2016, with continued focus on quick service, fast

casual, and retail petrol franchise concepts.

Expand Middle Market

Reinvigorated

growth in business with origination volumes up 24% in FY16 vs. FY15 and 16% QoQ; however,

loan

portfolio

relatively

flat,

with

initiatives

underway

to

grow

the

overall

portfolio.

Deposits

up

$575

million,

or 8%, and fee income up 12% vs. FY15 driven by

efforts to deepen relationships with customers.

Grow CRE

Continue

to

deepen

client

penetration

with

top

developers

in

core

geographies,

while

moderating

growth

in a

number

of

select

areas.

CRE

loans

grew

17%

in

FY16

to

$9.3

billion.

Reposition Asset Finance

Continue to realign product offering and strategy towards core Middle Market and Mid-Corp customers to drive

improved spread and fees. Origination volume grew QoQ.

Balance Sheet Optimization

Continued

execution

of

balance

sheet

strategies

led

to

NIM

increase

of

~3

bps

(total

of

6

bps

including

yield

curve impact),

driven

by

improved

mix

and

pricing,

with

relatively

stable

deposit

costs.

TOP II

Achieved $105 million of P&L benefit in FY16. Initiatives largely completed.

TOP III

TOP III Program underway and on track to meet FY17 benefit of $100-$115 million.

Summary of progress on strategic initiatives

1)

Thomson Reuters LPC, FY16 data as of 12/31/16 based on number of deals for Overall Middle Market (defined as Borrower Revenues <$500MM and Deal Size <$500MM).

1)

Thomson Reuters LPC, FY16 data as of 12/31/16 based on number of deals for Overall Middle Market (defined as Borrower Revenues <$500MM and Deal Size <$500MM).

20

TOP II Program

TOP II Program

TOP III Program

TOP III Program

Revenue initiatives 

Delivered over $60 million

Citizens Checkup: Launched with ~400,000 appointments

scheduled to-date; customer satisfaction has been positive with

78% very to completely satisfied

Consumer Retention: Initiative underway and showing strength

in deposit retention; successful platinum launch driving retention

with the Mass Affluent customer segment

Middle Market Share of Wallet: Opportunity pipeline remains

~2X larger than historical levels

(1)

leading to stronger capital

markets penetration

Commercial Pricing: Re-priced 12,000 cash management

accounts; improved loan pricing discipline and increased lending

revenue by 13% and improved IRP spreads

(2)

Revenue initiatives 

Delivered over $60 million

Citizens Checkup: Launched with ~400,000 appointments

scheduled to-date; customer satisfaction has been positive with

78% very to completely satisfied

Consumer Retention: Initiative underway and showing strength

in deposit retention; successful platinum launch driving retention

with the Mass Affluent customer segment

Middle Market Share of Wallet: Opportunity pipeline remains

~2X larger than historical levels

(1)

leading to stronger capital

markets penetration

Commercial Pricing: Re-priced 12,000 cash management

accounts; improved loan pricing discipline and increased lending

revenue by 13% and improved IRP spreads

(2)

Expense initiatives 

Delivered ~$40 million

Operations Transformation: Streamlining of organization

complete; focused on next wave of opportunities

Supply Chain Services: 2016 run-rate savings achieved driven

by reduction in external resources and tightening of internal

travel and office supplies policies

Expense initiatives 

Delivered ~$40 million

Operations Transformation: Streamlining of organization

complete; focused on next wave of opportunities

Supply Chain Services: 2016 run-rate savings achieved driven

by reduction in external resources and tightening of internal

travel and office supplies policies

Revenue initiatives 

Target ~$25-$30 million

Commercial Attrition: Predictive tool is now in the hands of

our RMs that identifies at-risk clients and allows them to

proactively develop retention plans for those clients

Unsecured Lending: Initiative launched with good initial

customer responses; early read on performance is positive

Business Banking Share of Wallet:

Realignment of salesforce

complete; executing on plans to deepen relationships

Revenue initiatives 

Target ~$25-$30 million

Commercial Attrition: Predictive tool is now in the hands of

our RMs that identifies at-risk clients and allows them to

proactively develop retention plans for those clients

Unsecured Lending: Initiative launched with good initial

customer responses; early read on performance is positive

Business Banking Share of Wallet:

Realignment of salesforce

complete; executing on plans to deepen relationships

Expense initiatives 

Target ~$55-$65 million

Consumer Efficiencies: First phase of streamlining non-revenue

staff is complete; focus on branch optimization and efficiencies

in the mortgage business

Commercial Efficiencies: Streamlining end-to-end processing

and portfolio management; actions are largely complete

Functional Efficiencies: Good progress on reengineering

processes; streamlining forecasting and reporting in finance

and recruiting and training in HR

Fraud:

Project underway; initial focus on improving algorithms

and enhancing chargeback processes

Expense initiatives 

Target ~$55-$65 million

Consumer Efficiencies: First phase of streamlining non-revenue

staff is complete; focus on branch optimization and efficiencies

in the mortgage business

Commercial Efficiencies: Streamlining end-to-end processing

and portfolio management; actions are largely complete

Functional Efficiencies: Good progress on reengineering

processes; streamlining forecasting and reporting in finance

and recruiting and training in HR

Fraud:

Project underway; initial focus on improving algorithms

and enhancing chargeback processes

Tax efficiencies 

Target ~$20 million

(3)

Tax-Rate Optimization: Aligning tax rate to peer levels; began

to see benefit in 3Q16

and showing strength in investment and

historic tax credits

Tax efficiencies 

Target ~$20 million

(3)

Tax-Rate Optimization: Aligning tax rate to peer levels; began

to see benefit in 3Q16

and showing strength in investment and

historic tax credits

Launched mid 2015 —

Delivered $105 million in annual pre-tax

benefit for 2016

Launched mid 2016 —

Targeted run-rate

benefit of $100-$115 million by end of 2017

21

Tapping Our Potential (TOP) programs remain on track

Self funding necessary investments through our efficiency initiatives

1)

Represents opportunities per product specialist as of December 2016 vs. March 2015.

2)

Improved lending revenue and IRP (interest-rate products) pricing, as well as improved lending revenue on in-scope deals,  which exclude syndicated transactions, select franchise finance

customers, asset-based lending deals and letters of credit.

3)

~$20 million pre-tax benefit; noninterest income pre-tax impact ~($20) million; tax expense benefit of ~$40 million on a pre-tax equivalent basis.

Consumer

Consumer

Commercial

Commercial

22

Consistently enhancing our capabilities and gaining market share

Continued strong focus on customer experience

—

Consistent customer branch experience; scores 10% above

surveyed

banks;

(1)

—

Top 5 JD Power recognition in mortgage servicing and origination; building

multi-channel

service

capabilities

(2)

—

Top

5

Greenwich

study

in

Business

Banking

(3)

Enhancing competitive offerings to gain share

—

2016

mortgage

origination

volumes

up

36%,

versus

~13%

industry

growth

(4)

—

Continued momentum in student lending with ~6% national

market

share,

up

1%

from

prior

year

(5)

—

Innovative unsecured offerings through partnerships with global

industry leaders

Introducing targeted product offerings tailored for key segments

—

Premier Banking solutions offer strong value proposition with comprehensive

program that entitles clients to dedicated relationship manager

—

Continued hiring of Premier relationship managers augments retirement

planning, business expertise and lending solutions platform

Leading with enhanced digital capabilities

—

Expanding digital investment advice through SigFig partnership

—

Launching small business automated application and underwriting process

through Fundation

partnership

—

Streamlining account-opening experiences across channels

Continued investment in data analytics to deepen customer relationships

—

Customer analytics team delivered strong marketing and

efficiency results,

delivering a 32% increase in response rates

Citizens Checkup program continues to yield results

—

~400,000 scheduled appointments in 2016

—

Needs-based approach adds value through service and helps build and

maintain relationships

Continued leading customer satisfaction scores

(6)

—

Overall satisfaction indicates continued progress in serving customers needs;

overall satisfaction score of 93% (Top 2 box score)

—

Satisfaction with relationship managers at 97% (Top-2 Box score)

Commenced operations of Citizens Capital Markets, Inc.

—

Serves customers through strategic advice for M&A, capital structure, valuation

and capital raises via pubic offerings and private placements; expect to drive

deeper share of wallet with existing credit relationships and attract

new relationships

Enhanced infrastructure and analytics

—

Introduced new interest rate products-

and foreign

exchange-platform that facilitates risk monitoring and client delivery

—

Expanded asset-based and restructuring capabilities to help clients through

the cycle

—

Developed client-profitability reporting to provide enhanced portfolio view to

augment relationship management

—

Building digital onboarding capabilities and CRM tools for relationship managers

to continue to improve sales effectiveness

Continued strength in loan syndications

—

$9.7 billion of loan syndications, with 122 transactions as lead left or joint lead

arranger; growth of 26% and 22% versus 2015

—

Ranked fifth in loan overall middle market deals in 4Q16; improved from tenth

versus

prior

year

(7)

—

Growth driven by thought leadership initiatives, with particular strength in

healthcare, technology, franchise finance and leveraged finance

Continued improvement in Treasury Solutions products

—

Investing in new commercial online banking platform to improve cash

management and other offerings

—

Will continue to focus on expansion of product penetration to existing base,

cross-sell to new lending customers and customer-retention efforts to drive

sustainable fee growth

1)

JD

Power

survey

results

reflect

2015

–

2016

assessment

period

and

derive

from

JD

Power

branch

servicing

assessment

score.

2)

JD Power survey results reflect 2015-2016 assessment period.

3)

Greenwich survey period from October 1, 2015 to September 30, 2016.

4)

2016 CFG mortgage volumes versus 2016 MBA Mortgage Finance Forecast as of December 14, 2016.

5)

Source: MeaureOne

based upon 2015-2016 Academic year.

6)

Source: Barlow 2015 Voice of the Customer Survey.

7)

Thomson Reuters LPC, Loan syndications 3Q16 ranking based on number of deals for Overall Middle Market (defined as Borrower Revenues < $500MM and Deal Size < $500MM) as of 12/31/2016.

Goal is to deliver a 10%+ run-rate ROTCE in the medium term

23

1.0%+

Adjusted

efficiency

ratio

(1)

~60%

10%+

Making consistent progress against our financial goals

Medium-term

Targets

Key Indicators

Adjusted

ROTCE

(1)

Adjusted return on

average total tangible

assets

(1)

EPS

Adjusted

Diluted EPS

(1)

Common equity

tier 1 ratio

(2)

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

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

3)

Commencement of separation effort from RBS.

(3)

4.34%

5.24%

5.24%

6.28%

6.22%

6.76%

6.73%

6.67%

6.60%

6.75%

6.61%

7.30%

8.02%

8.43%

0.52%

0.59%

0.57%

0.68%

0.66%

0.69%

0.69%

0.67%

0.68%

0.67%

0.68%

0.72%

0.80%

0.79%

68%

68%

69%

70%

68%

67%

68%

67%

66%

66%

66%

65%

63%

62%

13.9%

13.5%

13.4%

13.3%

12.9%

12.4%

12.2%

11.8%

11.8%

11.7%

11.6%

11.5%

11.3%

11.2%

$0.26

$0.30

$0.30

$0.37

$0.36

$0.39

$0.39

$0.40

$0.40

$0.42

$0.41

$0.46

$0.52

$0.55

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

Keys to successful 2017 financial performance

24

Expect improved economic environment with steady GDP growth, solid loan demand, and gradual rate hikes

Drive strong, prudent loan growth across consumer and commercial

Deliver improving NIM with continued focus on asset optimization and gathering low-cost deposits

Achieve improved noninterest income growth through realization on investments in key areas

Home Mortgage, Wealth Management, Capital Markets and Treasury Solutions

Maintain

strong

expense

discipline

while

continuing

to

fund

investments

in

technology,

products

and

services

Strong focus on continuous improvement and delivering benefits from TOP efficiency programs

Deliver 3-5% positive operating leverage

Will be the key to continued net income and EPS growth, must offset gradual normalization in

provision expense

Continue efforts to normalize capital ratios and drive enhanced shareholder returns

Adjusted FY2016 guidance vs. Adjusted FY2015

(1,2)

FY2016 performance vs. guidance

25

Adjusted FY2016 actual results vs. Adjusted FY2015

(1)

Results reflect strong execution against targets

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Guidance as provided on 4Q15 January 22, 2016 earnings call.

3)

Reflects impacts linked to higher revenues.

Net interest

income, net

interest margin

Operating

leverage,

efficiency ratio

Credit trends,

tax rate

Capital, liquidity

and funding

Key economic

assumptions

Balance sheet

growth

Noninterest

income

Net interest income growth of 7-10%

NIM improvement of 6-12 bps

Expense growth of 2.5-3.5%*; 1.3-2.3% including the impact of

the card reward accounting change

Target 3-5% of positive operating leverage*

Efficiency ratio improves to 63-65%*

Provision expense $375-$425 million

Charge-off rates normalize modestly from unusually low

levels with modest reserve build to fund loan growth

Tax rate of ~33%

Targeting dividend payout

ratio in the 25-30% range, common

stock buyback TBD with CCAR

Year-end Basel III common equity tier 1 ratio 11.2-11.5%

Loan-to-deposit ratio ~98%

Continue to diversify funding sources with modest amount of

senior debt issuance

YE 2016: fed funds rate of ~85-90 bps (rate increases in July

and December), 10-year Treasury rate of ~2.40%-2.50% range

Full-year GDP growth in the 2%-3% range

YE-2016 unemployment rate in the 4%-5% range

5-6% average earning asset growth

6-8% average loan growth

5-7% average deposit growth

5-7% noninterest income growth*; 2.5-4% including the impact

of the card reward accounting change

Net interest income growth of 10%

NIM improvement of 11 bps

Expense growth of 3%

4.2% positive operating leverage

Efficiency ratio improved to 64%

(1)

Provision expense of $369 million

Charge-off rate of 32 bps up modestly from 30 bps

Tax rate of 31.7%

Dividend payout

ratio

of

24%, common stock buyback

Year-end Basel III common equity tier 1 ratio of 11.2%

Loan-to-deposit ratio of  99%

We issued $1.75 billion senior bank debt to broaden our

market access and diversify funding sources

YE 2016: fed funds rate of 75 bps

10-year Treasury rate of 2.00%

Full-year GDP growth of 1.6%

YE-2016 unemployment rate of 4.7%

6% average earning asset growth

8% average loan growth

6% average deposit growth

Growth in noninterest income of 1%

*Before the estimated effect of a prospective card reward accounting change.

(3)

FY2017 outlook

26

Net interest

income, net

interest margin

Net interest income growth of 8-9%

NIM improvement of 8-10 bps

Operating

leverage,

efficiency ratio

Credit trends,

tax rate

Expense growth of 3-3.5%

Target 3-5% of positive operating leverage

Efficiency ratio improves to 61-62%

Provision expense $425-$475 million

Charge-off rates normalize modestly with additional reserve build to fund loan

growth

Tax rate of ~32%

FY2017 expectations vs. Adjusted FY2016

(1)

Capital,

liquidity and

funding

Targeting dividend payout

ratio in the 30-35% range, common stock buyback TBD

with CCAR

Year-end Basel III common equity tier 1 ratio 10.7-10.9%

Loan-to-deposit ratio ~98%

Key economic

assumptions

YE 2017: fed funds rate of ~1.25% (rate increase in June & November/December),

10-year Treasury rate of ~2.50-2.75% range

Full-year GDP growth in the 2-2.5% range

YE-2017 unemployment rate 4.5-4.7%

Balance sheet

growth

5.5-6.5% average earning asset growth

5.5-7% average loan growth

5.5-7% average deposit growth

Noninterest

income

3-5% noninterest income growth

(2)

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Tax credit investments nets  down  by 1%

$3,758 million net interest income

2.86% NIM

$3,316 million noninterest expense

4% operating leverage

63.9% efficiency ratio

$369 million provision expense

32 bps of net charge-offs

31.7% tax rate

24% dividend payout ratio

11.2% CET1 ratio

99% loan-to-deposit ratio

YE 2016: fed funds rate of 75 bps

Full-year GDP growth of 1.6%

YE-2016 unemployment rate of 4.7%

$130.5 billion average earning assets

$103.4 billion average loans

$105.4 billion average deposits

$1,430 million noninterest income

Adjusted FY2016

(1)

FY2017 outlook compared with 2016

27

Net interest

income, net

interest margin

Operating

leverage,

efficiency ratio

Credit trends,

tax rate

Capital,

liquidity and

funding

Adjusted

2016

vs.

Adjusted

2015

(1)

FY2017

expectations

vs.

Adjusted

2016

(1)

Balance sheet

growth

5.5-6.5% average earning asset growth

5.5-7.0% average loan growth

5.5-7.0% average deposit growth

Noninterest

income

3-5% noninterest income growth

(1)

Net interest income growth of 10%

NIM improvement of 11 bps

Expense growth of 3%

4.2% positive operating leverage

(1)

Efficiency ratio improved to 64%

(1)

Provision expense of $369 million

Charge-off rate of 32 bps up modestly from 30 bps

Tax rate of 31.7%

Dividend payout

ratio of 24%, common stock buyback

Year-end Basel III common equity tier 1 ratio of 11.2%

Loan-to-deposit ratio of 99%

6% average earning asset growth

8% average loan growth

6% average deposit growth

Stable noninterest income

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

Net interest income growth of 8-9%

NIM improvement of 8-10 bps

Expense growth of 3-3.5%

3-5% operating leverage

Efficiency ratio improves to 61-62%

Provision expense of $425-$475 million

Charge-off rates normalize modestly with additional reserve build to

fund loan growth

Tax rate of ~32%

10.7-10.9% Basel III CET1

~98% LDR

NIM drivers and growth

28

Comments

Earning asset

mix

and yields

Some additional benefit from shift in loan mix to higher return products

Reduced back book runoff helping to mitigate

competitive commercial

pricing dynamics

Deposit/ funding

costs

Enhanced customer product offerings targeted at mass affluent and

affluent deposit segments

Ongoing customer segmentation strategies

helping to limit pricing

pressures from higher-than-peer

deposit-growth targets

Yield

curve and

rate hike benefits

Dec 2016 rate increase expected to contribute

$45-55 million to NII, or

3-4 bps to NIM

(1)

Steepening yield curve expected to contribute $20-30 million to NII, or

~2 bps to NIM

(1)

Two rate increases anticipated in 2017

June rate increase expected to contribute

$25-35 million to NII, or 2-3 bps to NIM

(1)

November/December rate increase expected to contribute

~$5 million to NII

(1)

1)

Assumes December 31, 2016 implied forward curve.

NIM%

2.86%

(~1) bps

+21-27 bps

0 bps

(11-13) bps

Strong growth in net interest income

29

Net interest income outlook 2016-2017

(2)

NIM%

(1) bp

0 bps

2.75%

2.86%

+16 bps

(3) bps

(1) bps

(1)

Net interest income growth 2015-2016

2.94–2.96%

(1-3) bps

$3,402

$3,758

6.1%

6.2%

(1.2)%

(0.4)%

(0.3)%

2015

Loan growth

Loan mix/

yields

Investment

portfolio

Deposit

costs

Borrowings/

other

2016

$3,758

8-9%

growth

range

4.5-5.5%

8.0-9.0%

0.5-1.5%

(4.0-5.0%)

(1.0-2.0%)

2016

Loan growth

Loan mix/

yields & other

Investment

portfolio

Deposit costs

Borrowings/

other

2017 outlook

Other includes funding costs broadly offset by the benefit of swaps.

Assumes December 31, 2016 implied forward curve. December 2016 rate increase expected to contribute $65-$85 million to NII, or 5-6 bps to NIM. Two 2017 rate increases

contribute $30-$40 million to NII or 2-3 bps to NIM.

1)

2)

(1)

Noninterest expense remains well controlled

30

Adjusted

noninterest

expense

(1)

trend

2015-2016

Noninterest expense outlook 2016-2017

(1)

(1)

$s in millions

5.5%

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for

their calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

Midpoint of 5.1%

(1)

$3,209

$3,316

1.8%

2.0%

0.7%

0.9%

(2.1)%

Adjusted 2015

Other salaries &

employee benefits

expense

Business growth

initiatives

Outside services,

occupancy & other

expense

Equipment and

amortization of

software expense

Efficiency initiatives

Adjusted 2016

$3,316

3.0-3.5%

growth

range

1.1-1.3%

1.6-1.9%

1.0-1.2%

0.9-1.1%

(1.7-1.9%)

Adjusted 2016

Other salaries &

employee benefits

expense

Business growth

initiatives

Outside services,

occupancy & other

expense

Equipment and

amortization of

software expense

Efficiency initiatives

2017 outlook

1Q17 outlook

31

Net interest

income, net

interest margin

Noninterest

expense

Credit trends,

tax rate

~1.5% loan growth

Expect ~2-3 basis point improvement in net interest margin given recent rate rise

Day count impact of ~$14 million decrease to NII

Up 1-2% given seasonal compensation impacts

Provision expense stable, lower NCOs

Tax rate of 30-31%

1Q17 expectations vs. 4Q16

Capital, liquidity

and funding

Quarter-end Basel III common equity tier 1 ratio ~11.1%

Loan-to-deposit ratio of ~98%

Preferred stock dividend of $7 million

Noninterest

income

Seasonally lower, particularly capital markets and service charges and fees, as well

as rate impact on mortgage banking

Key messages

32

Citizens once again delivered strong results in 4Q16

Strong EPS growth, robust operating leverage, improving efficiency ratio and active capital management

ROTCE of 8.4% up from 4.3% three years ago in 3Q13

Delivering against strategic initiatives with strong growth in Capital Markets and improving results in

Mortgage Banking

Continued execution on growing attractive return portfolios and lower cost deposits

Prudent loan growth with continued improvement in credit quality

Tangible book value per share of $25.69 at quarter end, up 4% from 4Q15

Strong focus on continuous improvement and delivering benefits from TOP efficiency programs

Well positioned as we enter 1Q17 to capitalize on improving economic environment and rising rates

Key to financial results is to grow the balance sheet smartly with continued focus on building out fee

businesses and delivering positive operating leverage

Capital and credit position remain strong

Peer-leading CET1 ratio permits both strong loan growth and returns to shareholders

Focused on delivering enhanced shareholder returns

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

Appendix 1 –

Additional 2016 information

33

Linked-quarter results

34

Period-end loans

$s in billions

(2)

2%

1%

1%

7%

Net income and EPS

$s in millions, except per share data

Equity return metrics

Period-end deposits

$s in billions

(1)

GAAP results

Adjusted results

(1)

Return on average total tangible assets

Adjusted return on average

total tangible assets

(1)

Return on average tangible common equity

Adjusted return on average

tangible common equity

EPS

2%

EPS

6%

7 bps

1 bps

15 bps

41 bps

Asset return metrics

$0.56

$0.52

$0.55

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Excludes loans held for sale.

Pre-provision profit

$s in millions

(1)

GAAP results

Adjusted results

(1)

4Q16

4Q16

4Q16

4Q16

$513

$516

$482

3Q16

$105.5

$107.7

3Q16

4Q16

0.86%

0.79%

0.80%

3Q16

8.6%

8.4%

8.0%

3Q16

$297

$282

$278

3Q16

$108.3

$109.8

3Q16

4Q16

Quarter-over-quarter results

35

Pre-provision profit

$s in millions

Return on average total

tangible assets

$s in billions

Net income and EPS

$s in millions, except per share data

Return on average tangible

common equity

$s in billions

22%

Period-end loans

$s in billions

Period-end deposits

$s in billions

(1)

9%

7%

$0.42

$0.55

EPS

31%

12 bps

168 bps

1)

Excludes loans held for sale.

$221

$282

4Q15

4Q16

$422

$516

4Q15

4Q16

$99.0

$107.7

4Q15

4Q16

0.67%

0.79%

4Q15

4Q16

$102.5

$109.8

4Q15

4Q16

6.7%

8.4%

4Q15

4Q16

Full-year results

36

Pre-provision profit

$s in millions

Asset return metrics

Net income and EPS

$s in millions, except per share data

Equity return metrics

22%

Period-end loans

$s in billions

Period-end deposits

$s in billions

(2)

(1)

9%

7%

16%

GAAP results

Adjusted results

(1)

GAAP results

Adjusted results

$1.55

$1.61

$1.97

$1.93

EPS

27%

EPS

20%

11 bps

7 bps

129 bps

91 bps

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their

calculation and/or reconciliation to GAAP Financial Measures, as applicable. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

2)

Excludes loans held for sale.

(1)

Return on average tangible common equity

Adjusted return on average

tangible common equity

(1)

(1)

Return on average total tangible assets

Adjusted return on average

total tangible assets

$1,565

$1,903

$1,615

$1,872

2015

2016

$99.0

$107.7

2015

2016

0.65%

0.76%

0.68%

0.75%

2015

2016

6.4%

7.7%

6.7%

7.6%

2015

2016

$102.5

$109.8

2015

2016

$840

$1,045

$871

$1,026

2015

2016

Consumer Banking segment

37

-

-

Highlights

Linked quarter:

Net income was relatively flat

Net interest income up $18 million, or 3%, led by higher mortgage,

student and unsecured retail loans and improved loan yields,

partially offset by higher deposit costs

Average loans up $1.3 billion, or 2%, and average  deposits up

$1 billion, or 1%, from 3Q16

Noninterest income was relatively stable as higher mortgage

banking fees, driven by improved MSR valuations, despite lower sale

gains, was more than offset by lower trust and investment fees and

a seasonal reduction in card fees

Noninterest expense decreased modestly from 3Q16 levels that

included $7 million of home equity notable items.

(1)

Results

excluding these items were largely driven by higher fraud and

regulatory and legal costs and increased equipment and outside

services costs offsetting lower salaries and benefits, nonperforming

asset costs and occupancy expense

Provision for credit losses up $17 million

Prior-year quarter:

Net income up $25 million, or 37%

Net interest income up $74 million, led by higher student, mortgage

and unsecured retail balances as well as improved loan yields and

deposit spreads

Average loans up $4.0 billion, or 8%, and average deposits up

$2.2 billion, or 3%, from 4Q15

Noninterest income was relatively stable, driven by higher mortgage

banking fees tied to wider gain on sale spreads, secondary volume

and an MSR valuation increase, partially offset by the impact of the

card reward accounting change

Noninterest expense increased $25 million, or 4%, driven by higher

fraud, regulatory and legal costs, insurance costs and salaries and

benefits expense, partially offset by the card reward accounting

change impact

Provision for credit losses up $9 million, largely driven by higher net

charge-offs in auto related to a one-time

methodology change

4Q16 change from

$s in millions

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Net interest income

639

$    

621

$    

565

$    

18

$         

3

%

74

$         

13

%

Noninterest income

227

229

226

(2)

(1)

1

—

Total revenue

866

850

791

16

2

75

9

Noninterest expense

649

650

624

(1)

—

25

4

Pre-provision profit

217

200

167

17

9

50

30

Provision for credit losses

74

57

65

17

30

9

14

Income before income tax

expense

143

143

102

—

—

41

40

Income tax expense

51

51

35

—

—

16

46

Net income

92

$      

92

$      

67

$      

—

$         

—

%

25

$         

37

%

Average balances

$s in billions

Total loans and leases

(2)

57

$      

55

$      

53

$      

1

$            

2

%

4

$            

8

%

Total deposits

73

$      

72

$      

71

$      

1

$            

1

%

2

$            

3

%

Mortgage Banking metrics

Originations

2,220

$

2,187

$

1,426

$

33

$         

2

%

794

$       

56

%

Origination Pipeline

1,868

2,835

1,684

(967)

(34)

%

184

11

%

Gain on sale of secondary

originations

1.81%

2.77%

1.77%

(96)

bps

4

bps

Key performance metrics

ROTCE

(1,3)

7.0%

7.0%

5.5%

(7)

bps

147

bps

Efficiency ratio

(1)

75%

76%

79%

(156)

bps

(395)

bps

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the end of this release for an explanation of our use of these metrics and Non-

GAAP Financial Measures and their reconciliation to GAAP financial measures. Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

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.

Commercial Banking segment

38

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the end of this release for an

explanation of our use of these metrics and Non-GAAP Financial Measures and their reconciliation to GAAP financial measures.

Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

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:

Commercial Banking net income increased $10 million, or 6%

Total revenue increased $19 million, or 4%, driven by higher loan

and deposit growth as well as improved spreads

Average loans up $400 million; deposits up $1.6 billion

Loan growth driven by strength in Mid-corporate and Industry

Verticals and Commercial Real Estate, partially offset a

$994 million average decrease related to the Asset Finance

lean and loan portfolio transfer to non-core at the

end of  3Q16

Noninterest income remained stable as modest growth in FX and

L/C fees and interest rate products was offset by reductions in

other income, including lower leasing fees related to the Asset

Finance lease portfolio transfer to non-core

Noninterest expense increased $6 million, largely reflecting higher

operational losses, higher salaries and benefits expense tied to

incentive compensation and higher insurance costs, partially offset

by lower depreciation expense related to the Asset Finance lease

and loan portfolio transfer to non-core

Provision for credit losses up slightly

Prior-year quarter:

Net income increased $20 million, or 13%

Net interest income was up $46 million, or 15%, driven by strong

loan and deposit growth and the benefit of higher interest rates

Noninterest income increased $15 million, largely reflecting

strength in capital markets, interest rate products and FX fees,

partially offset by lower leasing income related to the

Asset Finance lease

and loan

portfolio transfer to non-core

Noninterest expense increased $7 million, largely reflecting higher

salaries and employee benefits tied to incentive compensation and

higher benefits cost, partially offset by lower outside services and

lower depreciation expense related to the Asset Finance lease-

portfolio transfer to non-core

Provision for credit losses increased $22 million, driven by

increased losses largely related to higher charge-offs.

4Q16 change from

$s in millions

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Net interest income

347

$    

327

$    

301

$    

20

$      

6

%

46

$      

15

%

Noninterest income

122

123

107

(1)

(1)

15

14

Total revenue

469

450

408

19

4

61

15

Noninterest expense

187

181

180

6

3

7

4

Pre-provision profit

282

269

228

13

5

54

24

Provision for credit losses

20

19

(2)

1

5

22

NM

Income before income tax

expense

262

250

230

12

5

32

14

Income tax expense

90

88

78

2

2

12

15

Net income

172

$    

162

$    

152

$    

10

$      

6

%

20

$      

13

%

Average balances

$s in billions

Total loans and leases

(2)

47

$      

47

$      

43

$      

0

$        

1

%

4

$        

10

%

Total deposits

29

$      

28

$      

25

$      

2

$        

6

%

5

$        

20

%

Key performance metrics

ROTCE

(1,3)

12.9%

12.5%

12.6%

44

bps

37

bps

Efficiency ratio

(1)

40%

40%

44%

(38)

bps

(419)

bps

Other

39

Linked quarter:

Other recorded net income of $18 million, down $25 million,

largely

driven

by

the

net

impact

of

notable

items

recorded

in 3Q16

Other recorded no net interest income, an increase of $3 million, 

largely driven by higher investment income and higher non-core

interest income related to the transfer of a $1.2 billion

Asset Finance lease and loan portfolio in 3Q16 and lower legacy

swap expense

Noninterest income of $28 million

decreased $55 million, largely

reflecting the impact of the TDR Transaction gain in 3Q16

Noninterest expense of $11 million decreased $25 million, driven

by

the

absence

of

notable

items

impact

in

3Q16

Provision for credit losses of $8 million decreased $2 million

Prior-year quarter:

Other net income increased $16 million, driven by a $20 million

decrease in provision for credit losses

Net interest income decreased $4 million, reflecting higher

borrowed funds costs

Noninterest income remained relatively stable

Noninterest expense up $5 million from 4Q15, largely reflecting

increased deprecation expense related to the Asset Finance lease

and loan portfolio transfer to non-core

Provision for credit losses down $20 million, driven by a

$2 million reserve release compared to a $14 million reserve

build in 4Q15

Highlights

1)

Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the end of this release for an

explanation of our use of these metrics and Non-GAAP Financial Measures and their reconciliation to GAAP financial measures.

Adjusted results exclude restructuring charges, special items and/or notable items, as applicable.

4Q16 change from

$s in millions

4Q16

3Q16

4Q15

3Q16

4Q15

$

%

$

%

Net interest income

—

$      

(3)

$       

4

$        

3

$        

100

%

(4)

$       

(100)

%

Noninterest income

28

83

29

(55)

(66)

(1)

(3)

Total revenue

28

80

33

(52)

(65)

(5)

(15)

Noninterest expense

11

36

6

(25)

(69)

5

83

Pre-provision profit (loss)

17

44

27

(27)

(61)

(10)

(37)

Provision for credit losses

8

10

28

(2)

(20)

(20)

(71)

Income (loss) before income

tax expense (benefit)

9

34

(1)

(25)

(74)

10

NM

Income tax expense (benefit)

(9)

(9)

(3)

—

—

(6)

(200)

Net income (loss)

18

$      

43

$      

2

$        

(25)

$    

(58)

%

16

$      

NM

%

Average balances

$s in billions

Total loans and leases

3

$        

3

$        

3

$        

1

$        

30

%

—

$      

7

%

Total deposits

7

$        

7

$        

6

$        

—

$      

(1)

%

1

$        

13

%

(1)

(1)

$s in millions

Total

O/S

Utilized

%

Criticized

%

Nonaccrual

status

Less price-sensitive total

752

$       

61%

4%

2

$              

Upstream

268

72%

Oilfield Services

297

72%

Reserve-based lending (RBL)

348

58%

More price-sensitive total

914

66%

54%

158

Total Oil & Gas

1,666

$    

64%

31%

160

$          

Total Oil & Gas ex. Aircraft

1,340

$    

58%

39%

158

$          

B-

and

lower

Oil & Gas portfolio overview

40

Highlights

Total loans outstanding

(2)

Oil & Gas

All other loans

BBB+ to BBB-

BB+ to BB-

B+ to

B

22% investment grade

~$900 million

more sensitive

to declining oil

prices

Midstream

Integrated

Downstream

Reserve-based

lending (RBL)

Upstream,

Non-RBL

Oil Field

Services

Oil & Gas portfolio

by Sub-sector

(2)

Oil & Gas portfolio

by Investment grade-equivalent risk rating

(2)

4Q16 Oil & Gas outstandings

(1)

Well-diversified portfolio with ~100 clients

Includes $326 million of corporate aircraft leases arising from

Asset Finance

Nonperforming loans down $33 million from 3Q16, largely

reflecting pay downs on RBL portfolio

Existing RBL commitments declined by 7% due to 4Q16

borrowing base redeterminations and restructuring activity

Oil and gas portfolio loan loss reserves of $52 million as of

12/31/16

Reserves to total more price-sensitive loans of 7%

remained stable with 3Q16

(3)

1)

Includes Downstream, Integrated and Midstream sub-categories.

2)

Portfolio balances, risk rating and industry sector stratifications as of December 31, 2016.

3)

Reserves/(More price-sensitive Oil & Gas portfolio outstandings -

leases secured by aircraft ($129 million)).

1.6%

98.4%

21%

18%

16%

10%

9%

26%

22%

36%

15%

27%

Appendix 2 –

Key performance metrics, Non-GAAP Financial

Measures and reconciliations

41

Key performance metrics, Non-GAAP Financial Measures and reconciliations

42

(Adjusted excluding restructuring charges, special items and/or notable items)

$s in millions, except per share data

4Q16

3Q16

2Q16

1Q16

4Q15

2016

2015

$

%

$

%

$

%

Noninterest income, adjusted:

Noninterest income (GAAP)

$377

$435

$355

$330

$362

($58)

(13%)

$15

4

%

$1,497

$1,422

$75

5

%

Less: Special items

—

—

—

—

—

—

—

—

—

—

—

—

—

Less: Notable items

—

67

—

—

—

(67)

(100)

—

—

67

—

67

100

Noninterest income, adjusted (non-GAAP)

$377

$368

$355

$330

$362

$9

2

%

$15

4

%

$1,430

$1,422

$8

1

%

Total revenue, adjusted:

Total revenue (GAAP)

A

$1,363

$1,380

$1,278

$1,234

$1,232

($17)

(1%)

$131

11

%

$5,255

$4,824

$431

9

%

Less: Special items

—

—

—

—

—

—

—

—

—

—

—

—

—

Less: Notable items

—

67

—

—

—

(67)

(100)

—

—

67

—

67

100

Total revenue, adjusted (non-GAAP)

B

$1,363

$1,313

$1,278

$1,234

$1,232

$50

4

%

$131

11

%

$5,188

$4,824

$364

8

%

Noninterest expense, adjusted:

Noninterest expense (GAAP)

C

$847

$867

$827

$811

$810

($20)

(2%)

$37

5

%

$3,352

$3,259

$93

3

%

Less: Restructuring charges and special items

—

—

—

—

—

—

—

—

—

—

50

(50)

(100)

Less: Notable items

—

36

—

—

—

(36)

(100)

—

—

36

—

36

100

Noninterest expense, adjusted (non-GAAP)

D

$847

$831

$827

$811

$810

$16

2

%

$37

5

%

$3,316

$3,209

$107

3

%

Pre-provision profit, adjusted:

Total revenue, adjusted (non-GAAP)

$1,363

$1,313

$1,278

$1,234

$1,232

$50

4

%

$131

11

%

$5,188

$4,824

$364

8

%

Less: Noninterest expense, adjusted (non-GAAP)

847

831

827

811

810

16

2

37

5

3,316

3,209

107

3

Pre-provision profit, adjusted (non-GAAP)

$516

$482

$451

$423

$422

$34

7

%

$94

22

%

$1,872

$1,615

$257

16

%

Income before income tax expense, adjusted:

Income before income tax expense (GAAP)

$414

$427

$361

$332

$331

($13)

(3%)

$83

25

%

$1,534

$1,263

$271

21

%

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

restructuring charges and special items

—

—

—

—

—

—

—

—

—

—

(50)

50

100

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

notable items

—

31

—

—

—

(31)

(100)

—

—

31

—

31

100

Income before income tax expense, adjusted (non-GAAP)

$414

$396

$361

$332

$331

$18

5

%

$83

25

%

$1,503

$1,313

$190

14

%

Income tax expense, adjusted:

Income tax expense (GAAP)

$132

$130

$118

$109

$110

$2

2

%

$22

20

%

$489

$423

$66

16

%

Less: Income tax expense (benefit) related to restructuring

charges and special items

—

—

—

—

—

—

—

—

—

—

(19)

19

100

Less: Income tax expense (benefit) related to notable items

—

12

—

—

—

(12)

(100)

—

—

12

—

12

100

Income tax expense, adjusted (non-GAAP)

$132

$118

$118

$109

$110

$14

12

%

$22

20

%

$477

$442

$35

8

%

Net income, adjusted:

Net income (GAAP)

E

$282

$297

$243

$223

$221

($15)

(5%)

$61

28

%

$1,045

$840

$205

24

%

Add: Restructuring charges and special items, net of income

tax expense (benefit)

—

—

—

—

—

—

—

—

—

—

31

(31)

(100)

Add: Notable items, net of income tax expense (benefit)

—

(19)

—

—

—

19

100

—

—

(19)

—

(19)

(100)

Net income, adjusted (non-GAAP)

F

$282

$278

$243

$223

$221

$4

1

%

$61

28

%

$1,026

$871

$155

18

%

Net income available to common stockholders, adjusted:

Net income available to common stockholders (GAAP)

G

$282

$290

$243

$216

$221

($8)

(3%)

$61

28

%

$1,031

$833

$198

24

%

Add: Restructuring charges and special items, net of income

tax expense (benefit)

—

—

—

—

—

—

—

—

—

—

31

(31)

(100)

Add: Notable items, net of income tax expense (benefit)

—

(19)

—

—

—

19

100

—

—

(19)

—

(19)

(100)

Net income available to common stockholders, adjusted (non-

GAAP)

H

$282

$271

$243

$216

$221

$11

4

%

$61

28

%

$1,012

$864

$148

17

%

Effective income tax rate, adjusted:

Effective income tax rate

31.9%

33.5%

Effective income tax rate, adjusted:

31.7

33.7

QUARTERLY TRENDS

FULL YEAR

4Q16 Change

2016 Change

3Q16

4Q15

2015

Key performance metrics, Non-GAAP Financial Measures and reconciliations

43

(Adjusted excluding restructuring charges, special items and/or notable items)

$s in millions, except per share data

4Q16

3Q16

2Q16

1Q16

4Q15

2016

2015

$/bps

%

$/bps

%

$/bps

%

Operating leverage:

Total revenue (GAAP)

A

$1,363

$1,380

$1,278

$1,234

$1,232

($17)

(1.23%)

$131

10.63

%

$5,255

$4,824

$431

8.93

%

Less: Noninterest expense (GAAP)

C

847

867

827

811

810

(20)

(2.31)

37

4.57

3,352

3,259

93

2.85

Operating leverage

1.08

%

6.06

%

6.08

%

Operating leverage, adjusted:

Total revenue, adjusted (non-GAAP)

B

$1,363

$1,313

$1,278

$1,234

$1,232

$50

3.81

%

$131

10.63

%

$5,188

$4,824

$364

7.55

%

Less: Noninterest expense, adjusted (non-GAAP)

D

847

831

827

811

810

16

1.93

37

4.57

3,316

3,209

107

3.33

Operating leverage, adjusted (non-GAAP)

1.88

%

6.06

%

4.22

%

Efficiency ratio and efficiency ratio, adjusted:

Efficiency ratio

C/A

62.18

%

62.88

%

64.71

%

65.66

%

65.76

%

(70)

bps

(358)

bps

63.80

%

67.56

%

(376)

bps

Efficiency ratio, adjusted (non-GAAP)

D/B

62.18

63.31

64.71

65.66

65.76

(113)

bps

(358)

bps

63.92

66.52

(260)

bps

Return on average common equity and return on average common equity, adjusted:

Average common equity (GAAP)

I

$19,645

$19,810

$19,768

$19,567

$19,359

($165)

(1%)

$286

1

%

$19,698

$19,354

$344

2

%

Return on average common equity

G/I

5.70

%

5.82

%

4.94

%

4.45

%

4.51

%

(12)

bps

119

bps

5.23

%

4.30

%

93

bps

Return on average common equity, adjusted (non-GAAP)

H/I

5.70

5.44

4.94

4.45

4.51

26

bps

119

bps

5.14

4.46

68

bps

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

adjusted:

Average common equity (GAAP)

I

$19,645

$19,810

$19,768

$19,567

$19,359

($165)

(1%)

$286

1

%

$19,698

$19,354

$344

2

%

Less: Average goodwill (GAAP)

6,876

6,876

6,876

6,876

6,876

—

—

—

—

6,876

6,876

—

—

Less: Average other intangibles (GAAP)

1

1

2

3

3

—

—

(2)

(67)

2

4

(2)

(50)

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

523

509

496

481

468

14

3

55

12

502

445

57

13

Average tangible common equity

J

$13,291

$13,442

$13,386

$13,169

$12,948

($151)

(1%)

$343

3

%

$13,322

$12,919

$403

3

%

Return on average tangible common equity

G/J

8.43

%

8.58

%

7.30

%

6.61

%

6.75

%

(15)

bps

168

bps

7.74

%

6.45

%

129

bps

Return on average tangible common equity, adjusted (non-GAAP)

H/J

8.43

8.02

7.30

6.61

6.75

41

bps

168

bps

7.60

6.69

91

bps

Return on average total assets and return on average total assets, adjusted:

Average total assets (GAAP)

K

$147,315

$144,399

$142,179

$138,780

$136,298

$2,916

2

%

$11,017

8

%

$143,183

$135,070

$8,113

6

%

Return on average total assets

E/K

0.76

%

0.82

%

0.69

%

0.65

%

0.64

%

(6)

bps

12

bps

0.73

%

0.62

%

11

bps

Return on average total assets, adjusted (non-GAAP)

F/K

0.76

0.77

0.69

0.65

0.64

(1)

bps

12

bps

0.72

0.64

8

bps

Return on average total tangible assets and return on average total tangible assets, adjusted:

Average total assets (GAAP)

K

$147,315

$144,399

$142,179

$138,780

$136,298

$2,916

2

%

$11,017

8

%

$143,183

$135,070

$8,113

6

%

Less: Average goodwill (GAAP)

6,876

6,876

6,876

6,876

6,876

—

—

—

—

6,876

6,876

—

—

Less: Average other intangibles (GAAP)

1

1

2

3

3

—

—

(2)

(67)

2

4

(2)

(50)

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

523

509

496

481

468

14

3

55

12

502

445

57

13

Average tangible assets

L

$140,961

$138,031

$135,797

$132,382

$129,887

$2,930

2

%

$11,074

9

%

$136,807

$128,635

$8,172

6

%

Return on average total tangible assets

E/L

0.79

%

0.86

%

0.72

%

0.68

%

0.67

%

(7)

bps

12

bps

0.76

%

0.65

%

11

bps

Return on average total tangible assets, adjusted (non-GAAP)

F/L

0.79

0.80

0.72

0.68

0.67

(1)

bps

12

bps

0.75

0.68

7

bps

QUARTERLY TRENDS

FULL YEAR

4Q16 Change

2016 Change

3Q16

4Q15

2015

Key performance metrics, Non-GAAP Financial Measures and reconciliations

44

1)

Basel III ratios assume certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2019, are fully phased-in. Ratios also reflect the required US

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

(Adjusted excluding restructuring charges, special items and/or notable items)

$s in millions, except per share data

4Q16

3Q16

2Q16

1Q16

4Q15

2016

2015

$/bps

%

$/bps

%

$/bps

%

Tangible book value per common share:

Common shares -

at end of period (GAAP)

M

511,954,871

518,148,345

529,094,976

528,933,727

527,774,428

(6,193,474)

(1%)

(15,819,557)

(3%)

511,954,871

527,774,428

(15,819,557)

(3%)

Common stockholders' equity (GAAP)

$19,499

$19,934

$19,979

$19,718

$19,399

($435)

(2)

$100

1

$19,499

$19,399

$100

1

Less: Goodwill (GAAP)

6,876

6,876

6,876

6,876

6,876

—

—

—

—

6,876

6,876

—

—

Less: Other intangible assets (GAAP)

1

1

2

3

3

—

—

(2)

(67)

1

3

(2)

(67)

Add: Deferred tax liabilities related to goodwill (GAAP)

532

519

507

494

480

13

3

52

11

532

480

52

11

Tangible common equity

N

$13,154

$13,576

$13,608

$13,333

$13,000

($422)

(3%)

$154

1

%

$13,154

$13,000

$154

1

%

Tangible book value per common share

N/M

$25.69

$26.20

$25.72

$25.21

$24.63

($0.51)

(2%)

$1.06

4

%

$25.69

$24.63

$1.06

4

%

Net income per average common share -

basic and diluted, adjusted:

Average common shares outstanding -

basic (GAAP)

O

512,015,920

519,458,976

528,968,330

528,070,648

527,648,630

(7,443,056)

(1%)

(15,632,710)

(3%)

522,093,545

535,599,731

(13,506,186)

(3%)

Average common shares outstanding -

diluted (GAAP)

P

513,897,085

521,122,466

530,365,203

530,446,188

530,275,673

(7,225,381)

(1)

(16,378,588)

(3)

523,930,718

538,220,898

(14,290,180)

(3)

Net income available to common stockholders (GAAP)

G

$282

$290

$243

$216

$221

($8)

(3)

$61

28

$1,031

$833

$198

24

Net income per average common share -

basic (GAAP)

G/O

0.55

0.56

0.46

0.41

0.42

(0.01)

(2)

0.13

31

1.97

1.55

0.42

27

Net income per average common share -

diluted (GAAP)

G/P

0.55

0.56

0.46

0.41

0.42

(0.01)

(2)

0.13

31

1.97

1.55

0.42

27

Net income available to common stockholders, adjusted (non-GAAP)

H

282

271

243

216

221

11

4

61

28

1,012

864

148

17

Net income per average common share -

basic, adjusted (non-GAAP)

H/O

0.55

0.52

0.46

0.41

0.42

0.03

6

0.13

31

1.94

1.61

0.33

20

Net income per average common share -

diluted, adjusted (non-GAAP)

H/P

0.55

0.52

0.46

0.41

0.42

0.03

6

0.13

31

1.93

1.61

0.32

20

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

1

:

Common equity tier 1 (regulatory)

$13,822

$13,763

$13,768

$13,570

$13,389

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

—

—

1

1

2

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

Q

$13,822

$13,763

$13,767

$13,569

$13,387

Risk-weighted assets (regulatory general risk weight approach)

$123,857

$121,612

$119,492

$116,591

$114,084

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

244

228

228

232

244

Pro forma Basel III standardized approach risk-weighted assets

R

$124,101

$121,840

$119,720

$116,823

$114,328

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

1

Q/R

11.1

%

11.3

%

11.5

%

11.6

%

11.7

%

4Q16 Change

2016 Change

QUARTERLY TRENDS

FULL YEAR

3Q16

4Q15

2015

Key performance metrics, Non-GAAP Financial Measures and reconciliations

45

(Adjusted excluding restructuring charges, special items and/or notable items)

$s in millions, except per share data

4Q16

3Q16

2Q16

1Q16

4Q15

2016

2015

$

%

$

%

$

%

Other income, adjusted

Other income (GAAP)

$28

$90

$18

$16

$23

($62)

(69%)

$5

22

%

$152

$94

$58

62

%

Less: Special items

—

—

—

—

—

—

—

—

—

—

—

—

—

Less: Notable items

—

67

—

—

—

(67)

(100)

—

—

67

—

67

100

Other income, adjusted (non-GAAP)

$28

$23

$18

$16

$23

$5

22

%

$5

22%

$85

$94

($9)

(10%)

Salaries and employee benefits, adjusted:

Salaries and employee benefits (GAAP)

$420

$432

$432

$425

$402

($12)

(3%)

$18

4

%

$1,709

$1,636

$73

4

%

Less: Restructuring charges and special items

—

—

—

—

(2)

—

—

2

100

—

3

(3)

(100)

Less: Notable items

—

11

—

—

—

(11)

(100)

—

—

11

—

11

100

Salaries and employee benefits, adjusted (non-GAAP)

$420

$421

$432

$425

$404

($1)

0%

$16

4

%

$1,698

$1,633

$65

4

%

Outside services, adjusted:

Outside services (GAAP)

$98

$102

$86

$91

$104

($4)

(4%)

($6)

(6%)

$377

$371

$6

2

%

Less: Restructuring charges and special items

—

—

—

—

2

—

—

(2)

(100)

—

26

(26)

(100)

Less: Notable items

—

8

—

—

—

(8)

(100)

—

—

8

—

8

100

Outside services, adjusted (non-GAAP)

$98

$94

$86

$91

$102

$4

4

%

($4)

(4%)

$369

$345

$24

7

%

Occupancy, adjusted:

Occupancy (GAAP)

$77

$78

$76

$76

$74

($1)

(1%)

$3

4

%

$307

$319

($12)

(4%)

Less: Restructuring charges and special items

—

—

—

—

—

—

—

—

—

—

17

(17)

(100)

Less: Notable items

—

—

—

—

—

—

—

—

—

—

—

—

—

Occupancy, adjusted (non-GAAP)

$77

$78

$76

$76

$74

($1)

(1%)

$3

4

%

$307

$302

$5

2

%

Equipment expense, adjusted:

Equipment expense (GAAP)

$69

$65

$64

$65

$67

$4

6

%

$2

3

%

$263

$257

$6

2

%

Less: Restructuring charges and special items

—

—

—

—

—

—

—

—

—

—

1

(1)

(100)

Less: Notable items

—

—

—

—

—

—

—

—

—

—

—

—

—

Equipment expense, adjusted (non-GAAP)

$69

$65

$64

$65

$67

$4

6

%

$2

3

%

$263

$256

$7

3

%

Amortization of software, adjusted:

Amortization of software (GAAP)

$44

$46

$41

$39

$38

($2)

(4%)

$6

16

%

$170

$146

$24

16

%

Less: Restructuring charges and special items

—

—

—

—

—

—

—

—

—

—

—

—

—

Less: Notable items

—

3

—

—

—

(3)

(100)

—

—

3

—

3

100

Amortization of software, adjusted (non-GAAP)

$44

$43

$41

$39

$38

$1

2

%

$6

16

%

$167

$146

$21

14

%

Other operating expense, adjusted:

Other operating expense (GAAP)

$139

$144

$128

$115

$125

($5)

(3%)

$14

11

%

$526

$530

($4)

(1%)

Less: Restructuring charges and special items

—

—

—

—

—

—

—

—

—

—

3

(3)

(100)

Less: Notable items

—

14

—

—

—

(14)

(100)

—

—

14

—

14

100

Other operating expense, adjusted (non-GAAP)

$139

$130

$128

$115

$125

$9

7

%

$14

11%

$512

$527

($15)

(3%)

Restructuring charges, special expense items and notable expense items include:

Restructuring charges

$—

$—

$—

$—

$—

$—

—%

$—

—%

$—

$26

($26)

(100)%

Special items

—

—

—

—

—

—

—

—

—

—

24

(24)

(100)

Notable items

—

36

—

—

—

(36)

(100)

—

—

36

—

36

100

Restructuring charges, special expense items and notable expense items

$—

$36

$—

$—

$—

($36)

(100%)

$—

—%

$36

$50

($14)

(28%)

3Q16

4Q15

2015

QUARTERLY TRENDS

FULL YEAR

4Q16 Change

2016 Change

Key performance metrics, Non-GAAP Financial Measures and reconciliations

46

$s in millions

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Net income available to common stockholders:

Net income (loss) (GAAP)

A

$92

$172

$18

$282

$92

$162

$43

$297

$90

$164

($11)

$243

Less: Preferred stock dividends

—

—

—

—

—

—

7

7

—

—

—

—

Net income available to common stockholders

B

$92

$172

$18

$282

$92

$162

$36

$290

$90

$164

($11)

$243

Return on average tangible common equity:

Average common equity (GAAP)

$5,275

$5,278

$9,092

$19,645

$5,190

$5,172

$9,448

$19,810

$5,110

$5,040

$9,618

$19,768

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

1

1

—

—

1

1

—

—

2

2

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

—

—

523

523

—

—

509

509

—

—

496

496

Average tangible common equity

C

$5,275

$5,278

$2,738

$13,291

$5,190

$5,172

$3,080

$13,442

$5,110

$5,040

$3,236

$13,386

Return on average tangible common equity

B/C

6.97

%

12.94

%

NM

8.43

%

7.04

%

12.50

%

NM

8.58

%

7.09

%

13.04

%

NM

7.30

%

Return on average total tangible assets:

Average total assets (GAAP)

$58,066

$48,024

$41,225

$147,315

$56,689

$47,902

$39,808

$144,399

$55,660

$47,388

$39,131

$142,179

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

1

1

—

—

1

1

—

—

2

2

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

—

—

523

523

—

—

509

509

—

—

496

496

Average tangible assets

D

$58,066

$48,024

$34,871

$140,961

$56,689

$47,902

$33,440

$138,031

$55,660

$47,388

$32,749

$135,797

Return on average total tangible assets

A/D

0.63

%

1.42

%

NM

0.79

%

0.64

%

1.35

%

NM

0.86

%

0.65

%

1.39

%

NM

0.72

%

Efficiency ratio:

Noninterest expense (GAAP)

E

$649

$187

$11

$847

$650

$181

$36

$867

$632

$186

$9

$827

Net interest income (GAAP)

639

347

—

986

621

327

(3)

945

602

314

7

923

Noninterest income (GAAP)

227

122

28

377

229

123

83

435

219

122

14

355

Total revenue (GAAP)

F

$866

$469

$28

$1,363

$850

$450

$80

$1,380

$821

$436

$21

$1,278

Efficiency ratio

E/F

74.90

%

39.83

%

NM

62.18

%

76.46

%

40.21

%

NM

62.88

%

76.98

%

42.88

%

NM

64.71

%

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Net income available to common stockholders:

Net income (loss) (GAAP)

A

$71

$133

$19

$223

$67

$152

$2

$221

Less: Preferred stock dividends

—

—

7

7

—

—

—

—

Net income available to common stockholders

B

$71

$133

$12

$216

$67

$152

$2

$221

Return on average tangible common equity:

Average common equity (GAAP)

$5,089

$4,790

$9,688

$19,567

$4,831

$4,787

$9,741

$19,359

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

3

3

—

—

3

3

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

—

—

481

481

—

—

468

468

Average tangible common equity

C

$5,089

$4,790

$3,290

$13,169

$4,831

$4,787

$3,330

$12,948

Return on average tangible common equity

B/C

5.59

%

11.19

%

NM

6.61

%

5.50

%

12.57

%

NM

6.75

%

Return on average total tangible assets:

Average total assets (GAAP)

$55,116

$45,304

$38,360

$138,780

$54,065

$43,835

$38,398

$136,298

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

3

3

—

—

3

3

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

—

—

481

481

—

—

468

468

Average tangible assets

D

$55,116

$45,304

$31,962

$132,382

$54,065

$43,835

$31,987

$129,887

Return on average total tangible assets

A/D

0.52

%

1.18

%

NM

0.68

%

0.49

%

1.37

%

NM

0.67

%

Efficiency ratio:

Noninterest expense (GAAP)

E

$616

$187

$8

$811

$624

$180

$6

$810

Net interest income (GAAP)

581

300

23

904

565

301

4

870

Noninterest income (GAAP)

208

99

23

330

226

107

29

362

Total revenue (GAAP)

F

$789

$399

$46

$1,234

$791

$408

$33

$1,232

Efficiency ratio

E/F

78.08

%

46.74

%

NM

65.66

%

78.85

%

44.02

%

NM

65.76

%

THREE MONTHS ENDED DEC 31,

THREE MONTHS ENDED SEPT 30,

THREE MONTHS ENDED JUNE 30,

2016

2016

2016

THREE MONTHS ENDED MAR 31,

THREE MONTHS ENDED DEC 31,

2016

2015

Key performance metrics, Non-GAAP Financial Measures and reconciliations

47

$s in millions

Consumer

Banking

Commercial

Banking

Other

Consolidated

Consumer

Banking

Commercial

Banking

Other

Consolidated

Net income available to common stockholders:

Net income (loss) (GAAP)

A

$345

$631

$69

$1,045

$262

$579

($1)

$840

Less: Preferred stock dividends

—

—

14

14

—

—

7

7

Net income available to common stockholders

B

$345

$631

$55

$1,031

$262

$579

($8)

$833

Return on average tangible common equity:

Average common equity (GAAP)

$5,166

$5,071

$9,461

$19,698

$4,739

$4,666

$9,949

$19,354

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

2

2

—

—

4

4

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

—

—

502

502

—

—

445

445

Average tangible common equity

C

$5,166

$5,071

$3,085

$13,322

$4,739

$4,666

$3,514

$12,919

Return on average tangible common equity

B/C

6.68

%

12.44

%

NM

7.74

%

5.53

%

12.41

%

NM

6.45

%

Return on average total tangible assets:

Average total assets (GAAP)

$56,388

$47,159

$39,636

$143,183

$52,848

$42,800

$39,422

$135,070

Less: Average goodwill (GAAP)

—

—

6,876

6,876

—

—

6,876

6,876

Average other intangibles (GAAP)

—

—

2

2

—

—

4

4

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

—

—

502

502

—

—

445

445

Average tangible assets

D

$56,388

$47,159

$33,260

$136,807

$52,848

$42,800

$32,987

$128,635

Return on average total tangible assets

A/D

0.61

%

1.34

%

NM

0.76

%

0.50

%

1.35

%

NM

0.65

%

Efficiency ratio:

Noninterest expense (GAAP)

E

$2,547

$741

$64

$3,352

$2,456

$709

$94

$3,259

Net interest income (GAAP)

2,443

1,288

27

3,758

2,198

1,162

42

3,402

Noninterest income (GAAP)

883

466

148

1,497

910

415

97

1,422

Total revenue (GAAP)

F

$3,326

$1,754

$175

$5,255

$3,108

$1,577

$139

$4,824

Efficiency ratio

E/F

76.57

%

42.26

%

NM

63.80

%

79.02

%

44.94

%

NM

67.56

%

FULL YEAR

2016

2015

Net income per average common share -  diluted, adjusted (non-GAAP)

Key performance metrics, Non-GAAP Financial Measures and reconciliations

48

$s in millions

DEC. 31,

SEP. 30,

JUNE 30,

MAR. 31,

DEC. 31,

SEP. 30,

JUNE 30,

MAR. 31,

DEC. 31,

SEP. 30,

JUNE 30,

MAR. 31,

DEC. 31,

SEP. 30,

2016

2016

2016

2016

2015

2015

2015

2015

2014

2014

2014

2014

2013

2013

Total revenue, adjusted:

Total revenue (GAAP)

A

$1,363

$1,380

$1,278

$1,234

$1,232

$1,209

$1,200

$1,183

$1,179

$1,161

$1,473

$1,166

$1,158

$1,153

Less: Special items

—

—

—

—

—

—

—

—

—

—

288

—

—

—

Less: Notable items

—

67

—

—

—

—

—

—

—

—

—

—

—

—

Total revenues, adjusted (non-GAAP)

B

$1,363

$1,313

$1,278

$1,234

$1,232

$1,209

$1,200

$1,183

$1,179

$1,161

$1,185

$1,166

$1,158

$1,153

Noninterest expense, adjusted:

Noninterest expense (GAAP)

C

$847

$867

$827

$811

$810

$798

$841

$810

$824

$810

$948

$810

$818

$788

Less: Restructuring charges and special items

—

—

—

—

—

—

40

10

33

21

115

—

26

—

Less: Notable items

—

36

—

—

—

—

—

—

—

—

—

—

—

—

Noninterest expense, adjusted (non-GAAP)

D

$847

$831

$827

$811

$810

$798

$801

$800

$791

$789

$833

$810

$792

$788

Efficiency ratio and efficiency ratio, adjusted:

Efficiency ratio

C/A

62

%

63

%

65

%

66

%

66

%

66

%

70

%

68

%

70

%

70

%

64

%

69

%

71

%

68

%

Efficiency ratio, adjusted (non-GAAP)

D/B

62

63

65

66

66

66

67

68

67

68

70

69

68

68

Net income, adjusted:

Net income (GAAP)

E

$282

$297

$243

$223

$221

$220

$190

$209

$197

$189

$313

$166

$152

$144

Add: Restructuring charges and special items, net of income tax

expense (benefit)

—

—

—

—

—

—

25

6

20

13

(108)

—

17

—

Add: Notable items, net of income tax expense (benefit)

—

(19)

—

—

—

—

—

—

—

—

—

—

—

—

Net income, adjusted (non-GAAP)

F

$282

$278

$243

$223

$221

$220

$215

$215

$217

$202

$205

$166

$169

$144

average

common

share -

diluted,

adjusted

Net income available to common stockholders (GAAP)

G

$282

$290

$243

$216

$221

$213

$190

$209

$197

$189

$313

$166

$152

$144

Add: Restructuring charges and special items, net of income tax

expense (benefit)

—

—

—

—

—

—

25

6

20

13

(108)

—

17

—

Add: Notable items, net of income tax expense (benefit)

—

(19)

—

—

—

—

—

—

—

—

—

—

—

—

Net income available to common stockholders, adjusted (non-GAAP)

H

$282

$271

$243

$216

$221

$213

$215

$215

$217

$202

$205

$166

$169

$144

Average

common shares

outstanding -

diluted

(GAAP)

P

513,897,085

521,122,466

530,365,203

530,446,188

530,275,673

533,398,158

539,909,366

549,798,717

550,676,298

560,243,747

559,998,324

559,998,324

559,998,324

559,998,324

Net

income

per

average

common

share

-

diluted

G/P

$0.55

$0.56

$0.46

$0.41

$0.42

$0.40

$0.35

$0.38

$0.36

$0.34

$0.56

$0.30

$0.27

$0.26

H/P

0.55

0.52

0.46

0.41

0.42

0.40

0.40

0.39

0.39

0.36

0.37

0.30

0.30

0.26

Return on average tangible common equity and return on average

tangible common equity, adjusted:

Average common equity (GAAP)

$19,645

$19,810

$19,768

$19,567

$19,359

$19,261

$19,391

$19,407

$19,209

$19,411

$19,607

$19,370

$19,364

$19,627

Less: Average goodwill (GAAP)

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

Less: Average other intangibles (GAAP)

1

1

2

3

3

4

5

5

6

6

7

7

8

9

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

523

509

496

481

468

453

437

422

403

384

369

351

342

325

Average tangible common equity

J

$13,291

$13,442

$13,386

$13,169

$12,948

$12,834

$12,947

$12,948

$12,730

$12,913

$13,093

$12,838

$12,822

$13,067

Return on average tangible common equity

G/J

8.43

%

8.58

%

7.30

%

6.61

%

6.75

%

6.60

%

5.90

%

6.53

%

6.12

%

5.81

%

9.59

%

5.24

%

4.71

%

4.34

%

Return on average tangible common equity, adjusted (non-GAAP)

H/J

8.43

8.02

7.30

6.61

6.75

6.60

6.67

6.73

6.76

6.22

6.28

5.24

5.24

4.34

Return on average total tangible assets and return on average total

tangible assets, adjusted:

Average total assets (GAAP)

K

$147,315

$144,399

$142,179

$138,780

$136,298

$135,103

$135,521

$133,325

$130,671

$128,691

$127,148

$123,904

$120,393

$117,386

Less: Average goodwill (GAAP)

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

6,876

Less: Average other intangibles (GAAP)

1

1

2

3

3

4

5

5

6

6

7

7

8

9

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

523

509

496

481

468

453

437

422

403

384

369

351

342

325

Average tangible assets

L

$140,961

$138,031

$135,797

$132,382

$129,887

$128,676

$129,077

$126,866

$124,192

$122,193

$120,634

$117,372

$113,851

$110,826

Return on average total tangible assets

E/L

0.79

%

0.86

%

0.72

%

0.68

%

0.67

%

0.68

%

0.59

%

0.67

%

0.63

%

0.61

%

1.04

%

0.57

%

0.53

%

0.52

%

Return on average total tangible assets, adjusted (non-GAAP)

F/L

0.79

0.80

0.72

0.68

0.67

0.68

0.67

0.69

0.69

0.66

0.68

0.57

0.59

0.52

FOR THE THREE MONTHS ENDED

Net

income per

average

common

share

-

diluted,

and net

income

per

49

EX-99.3

Exhibit 99.3

Citizens Financial Group, Inc.

Financial Supplement

Fourth Quarter and Full Year 2016

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		25
Capital and Ratios		26
Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations		27

The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward-looking statements language contained in the company’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC’s website (www.sec.gov) or on the company’s website (www.citizensbank.com). The company’s future financial performance is subject to the risks and uncertainties described in its SEC filings.

2

CONSOLIDATED FINANCIAL HIGHLIGHTS

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

	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$			%			$			%									$			%
SELECTED OPERATING DATA
Total revenue	$	1,363		$	1,380		$	1,278		$	1,234		$	1,232		($	17	)		(1	%)	$	131			11	%	$	5,255		$	4,824		$	431			9	%
Noninterest expense		847			867			827			811			810			(20	)		(2	)		37			5			3,352			3,259			93			3
Profit before provision for credit losses		516			513			451			423			422			3			1			94			22			1,903			1,565			338			22
Provision for credit losses		102			86			90			91			91			16			19			11			12			369			302			67			22
NET INCOME		282			297			243			223			221			(15	)		(5	)		61			28			1,045			840			205			24
Net income, adjusted1		282			278			243			223			221			4			1			61			28			1,026			871			155			18
Net income available to common stockholders		282			290			243			216			221			(8	)		(3	)		61			28			1,031			833			198			24
Net income available to common stockholders, adjusted1		282			271			243			216			221			11			4			61			28			1,012			864			148			17
PER COMMON SHARE DATA
Basic earnings	$	0.55		$	0.56		$	0.46		$	0.41		$	0.42		($	0.01	)		(2	%)	$	0.13			31	%	$	1.97		$	1.55		$	0.42			27	%
Diluted earnings		0.55			0.56			0.46			0.41			0.42			(0.01	)		(2	)		0.13			31			1.97			1.55			0.42			27
Basic earnings, adjusted1		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.94			1.61			0.33			20
Diluted earnings, adjusted1		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.93			1.61			0.32			20
Cash dividends declared and paid per common share		0.12			0.12			0.12			0.10			0.10			—			—			0.02			20			0.46			0.40			0.06			15
Book value per common share		38.09			38.47			37.76			37.28			36.76			(0.38	)		(1	)		1.33			4			38.09			36.76			1.33			4
Tangible book value per common share		25.69			26.20			25.72			25.21			24.63			(0.51	)		(2	)		1.06			4			25.69			24.63			1.06			4
Dividend payout ratio		22	%		22	%		26	%		24	%		24	%		31	bps					(214	) bps					23	%		26	%		(306	) bps
COMMON SHARES OUTSTANDING
Average: Basic		512,015,920			519,458,976			528,968,330			528,070,648			527,648,630			(7,443,056	)		(1	%)		(15,632,710	)		(3	%)		522,093,545			535,599,731			(13,506,186	)		(3	%)
Diluted		513,897,085			521,122,466			530,365,203			530,446,188			530,275,673			(7,225,381	)		(1	)		(16,378,588	)		(3	)		523,930,718			538,220,898			(14,290,180	)		(3	)
Common shares at period-end		511,954,871			518,148,345			529,094,976			528,933,727			527,774,428			(6,193,474	)		(1	)		(15,819,557	)		(3	)		511,954,871			527,774,428			(15,819,557	)		(3	)
SHARE PRICE
High	$	36.56		$	25.11		$	24.24		$	25.99		$	27.17		$	11.45			46	%	$	9.39			35	%	$	36.56		$	28.71		$	7.85			27	%
Low		24.22			18.58			18.34			18.04			22.48			5.64			30			1.74			8			18.04			21.14			(3.10	)		(15	)
Close		35.63			24.71			19.98			20.95			26.19			10.92			44			9.44			36			35.63			26.19			9.44			36
Market capitalization		18,241			12,803			10,571			11,081			13,822			5,438			42			4,419			32			18,241			13,822			4,419			32
SEGMENT NET INCOME
Consumer Banking	$	92		$	92		$	90		$	71		$	67		$	—			—	%	$	25			37	%	$	345		$	262		$	83			32	%
Commercial Banking		172			162			164			133			152			10			6			20			13			631			579			52			9
Other		18			43			(11	)		19			2			(25	)		(58	)		16			NM			69			(1	)		70			NM
NET INCOME	$	282		$	297		$	243		$	223		$	221		($	15	)		(5	%)	$	61			28	%	$	1,045		$	840		$	205			24	%

¹ These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

3

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)

	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
FINANCIAL RATIOS
Net interest margin		2.90	%		2.84	%		2.84	%		2.86	%		2.77	%		6	bps					13	bps					2.86	%		2.75	%		11	bps
Return on average common equity		5.70			5.82			4.94			4.45			4.51			(12	) bps					119	bps					5.23			4.30			93	bps
Return on average common equity, adjusted1		5.70			5.44			4.94			4.45			4.51			26	bps					119	bps					5.14			4.46			68	bps
Return on average tangible common equity		8.43			8.58			7.30			6.61			6.75			(15	) bps					168	bps					7.74			6.45			129	bps
Return on average tangible common equity, adjusted1		8.43			8.02			7.30			6.61			6.75			41	bps					168	bps					7.60			6.69			91	bps
Return on average total assets		0.76			0.82			0.69			0.65			0.64			(6	) bps					12	bps					0.73			0.62			11	bps
Return on average total assets, adjusted1		0.76			0.77			0.69			0.65			0.64			(1	) bps					12	bps					0.72			0.64			8	bps
Return on average total tangible assets		0.79			0.86			0.72			0.68			0.67			(7	) bps					12	bps					0.76			0.65			11	bps
Return on average total tangible assets, adjusted1		0.79			0.80			0.72			0.68			0.67			(1	) bps					12	bps					0.75			0.68			7	bps
Effective income tax rate		31.90			30.46			32.61			32.87			33.45			144	bps					(155	) bps					31.88			33.52			(164	) bps
Efficiency ratio		62.18			62.88			64.71			65.66			65.76			(70	) bps					(358	) bps					63.80			67.56			(376	) bps
Efficiency ratio, adjusted1		62.18			63.31			64.71			65.66			65.76			(113	) bps					(358	) bps					63.92			66.52			(260	) bps
CAPITAL RATIOS - PERIOD END (PRELIMINARY)2
CET1 capital ratio		11.2	%		11.3	%		11.5	%		11.6	%		11.7	%
Tier 1 capital ratio		11.4			11.5			11.7			11.9			12.0
Total capital ratio		14.0			14.2			14.9			15.1			15.3
Tier 1 leverage ratio		9.9			10.1			10.3			10.4			10.5
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	149,520		$	147,015		$	145,183		$	140,077		$	138,208		$	2,505			2	%	$	11,312			8	%	$	149,520		$	138,208		$	11,312			8	%
Loans and leases:
Commercial		51,651			50,389			49,557			47,972			46,214			1,262			3			5,437			12			51,651			46,214			5,437			12
Retail		56,018			55,078			53,994			53,019			52,828			940			2			3,190			6			56,018			52,828			3,190			6
Total loans and leases		107,669			105,467			103,551			100,991			99,042			2,202			2			8,627			9			107,669			99,042			8,627			9
Deposits		109,804			108,327			106,257			102,606			102,539			1,477			1			7,265			7			109,804			102,539			7,265			7
Long-term borrowed funds		12,790			11,902			11,810			10,035			9,886			888			7			2,904			29			12,790			9,886			2,904			29
Total stockholders’ equity		19,747			20,181			20,226			19,965			19,646			(434	)		(2	)		101			1			19,747			19,646			101			1
Loans-to-deposits ratio (period-end balances)3		98.62	%		97.85	%		98.25	%		99.16	%		96.94	%		77	bps					168	bps					98.62	%		96.94	%		168	bps
Loans-to-deposits ratio (average balances)3		98.14			98.06			99.52			98.66			97.21			8	bps					93	bps					98.58			97.37			121	bps
Full-time equivalent colleagues		17,639			17,625			17,828			17,902			17,714			14			—			(75	)		—			17,639			17,714			(75	)		—

¹ These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

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 are prepared using the Basel III standardized transitional approach.

³ Ratios include loans and leases held for sale.

4

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)

	QUARTERLY TRENDS																						FULL YEAR
											4Q16 Change																2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15		3Q16						4Q15						2016		2015		2015
											$			%			$			%							$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	963	$	926	$	896	$	868	$	830	$	37			4	%	$	133			16	%	$	3,653	$	3,211	$	442			14	%
Interest and fees on loans held for sale		5		4		3		3		2		1			25			3			150			15		10		5			50
Interest and fees on other loans held for sale		—		1		4		1		—		(1	)		(100	)		—			—			6		7		(1	)		(14	)
Investment securities		152		146		141		145		153		6			4			(1	)		(1	)		584		621		(37	)		(6	)
Interest-bearing deposits in banks		2		2		2		2		1		—			—			1			100			8		5		3			60
Total interest income		1,122		1,079		1,046		1,019		986		43			4			136			14			4,266		3,854		412			11
INTEREST EXPENSE:
Deposits		76		71		63		60		60		5			7			16			27			270		237		33			14
Federal funds purchased and securities sold under agreements to repurchase		—		1		—		1		3		(1	)		(100	)		(3	)		(100	)		2		16		(14	)		(88	)
Other short-term borrowed funds		7		10		12		11		16		(3	)		(30	)		(9	)		(56	)		40		67		(27	)		(40	)
Long-term borrowed funds		53		52		48		43		37		1			2			16			43			196		132		64			48
Total interest expense		136		134		123		115		116		2			1			20			17			508		452		56			12
Net interest income		986		945		923		904		870		41			4			116			13			3,758		3,402		356			10
NONINTEREST INCOME:
Service charges and fees		153		152		150		144		156		1			1			(3	)		(2	)		599		575		24			4
Card fees		50		52		51		50		60		(2	)		(4	)		(10	)		(17	)		203		232		(29	)		(13	)
Trust and investment services fees		34		37		38		37		39		(3	)		(8	)		(5	)		(13	)		146		157		(11	)		(7	)
Capital markets fees		34		34		35		22		15		—			—			19			127			125		88		37			42
Foreign exchange and letter of credit fees		25		23		21		21		23		2			9			2			9			90		90		—			—
Mortgage banking fees		36		33		25		18		20		3			9			16			80			112		101		11			11
Bank-owned life insurance income		14		14		13		13		16		—			—			(2	)		(13	)		54		56		(2	)		(4	)
Securities gains, net		3		—		4		9		10		3			100			(7	)		(70	)		16		29		(13	)		(45	)
Other income		28		90		18		16		23		(62	)		(69	)		5			22			152		94		58			62
Total noninterest income		377		435		355		330		362		(58	)		(13	)		15			4			1,497		1,422		75			5
TOTAL REVENUE		1,363		1,380		1,278		1,234		1,232		(17	)		(1	)		131			11			5,255		4,824		431			9
Provision for credit losses		102		86		90		91		91		16			19			11			12			369		302		67			22
NONINTEREST EXPENSE:
Salaries and employee benefits		420		432		432		425		402		(12	)		(3	)		18			4			1,709		1,636		73			4
Outside services		98		102		86		91		104		(4	)		(4	)		(6	)		(6	)		377		371		6			2
Occupancy		77		78		76		76		74		(1	)		(1	)		3			4			307		319		(12	)		(4	)
Equipment expense		69		65		64		65		67		4			6			2			3			263		257		6			2
Amortization of software		44		46		41		39		38		(2	)		(4	)		6			16			170		146		24			16
Other operating expense		139		144		128		115		125		(5	)		(3	)		14			11			526		530		(4	)		(1	)
Total noninterest expense		847		867		827		811		810		(20	)		(2	)		37			5			3,352		3,259		93			3
Income before income tax expense		414		427		361		332		331		(13	)		(3	)		83			25			1,534		1,263		271			21
Income tax expense		132		130		118		109		110		2			2			22			20			489		423		66			16
NET INCOME	$	282	$	297	$	243	$	223	$	221	($	15	)		(5	%)	$	61			28	%	$	1,045	$	840	$	205			24	%
Net income, adjusted1	$	282	$	278	$	243	$	223	$	221	$	4			1	%	$	61			28	%	$	1,026	$	871	$	155			18	%
Net income available to common stockholders	$	282	$	290	$	243	$	216	$	221	($	8	)		(3	%)	$	61			28	%	$	1,031	$	833	$	198			24	%
Net income available to common stockholders, adjusted1	$	282	$	271	$	243	$	216	$	221	$	11			4	%	$	61			28	%	$	1,012	$	864	$	148			17	%

¹ These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

5

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)

PERIOD END BALANCES	AS OF															DECEMBER 31, 2016 CHANGE
	Dec 31, 2016			Sept 30, 2016			June 30, 2016			Mar 31, 2016			Dec 31, 2015			Sept 30, 2016						Dec 31, 2015
																$			%			$			%
ASSETS:
Cash and due from banks	$	955		$	915		$	976		$	839		$	1,099		$	40			4	%	($	144	)		(13	%)
Interest-bearing cash and due from banks		2,749			2,000			2,679			1,016			1,986			749			37			763			38
Interest-bearing deposits in banks		439			720			727			534			356			(281	)		(39	)		83			23
Securities available for sale, at fair value		19,501			19,425			18,479			17,964			17,884			76			—			1,617			9
Securities held to maturity		5,071			5,289			4,973			5,129			5,258			(218	)		(4	)		(187	)		(4	)
Other investment securities, at fair value		96			113			73			68			70			(17	)		(15	)		26			37
Other investment securities, at cost		942			877			873			896			863			65			7			79			9
Loans held for sale, at fair value		583			526			478			365			325			57			11			258			79
Other loans held for sale		42			—			372			386			40			42			100			2			5
Loans and leases		107,669			105,467			103,551			100,991			99,042			2,202			2			8,627			9
Less: Allowance for loan and lease losses		(1,236	)		(1,240	)		(1,246	)		(1,224	)		(1,216	)		4			—			(20	)		(2	)
Net loans and leases		106,433			104,227			102,305			99,767			97,826			2,206			2			8,607			9
Derivative assets		627			1,102			1,312			1,068			625			(475	)		(43	)		2			—
Premises and equipment		601			540			551			570			595			61			11			6			1
Bank-owned life insurance		1,612			1,600			1,587			1,576			1,564			12			1			48			3
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		—			—			132			161			—			—			—			—			—
Other assets		2,993			2,805			2,790			2,862			2,841			188			7			152			5
TOTAL ASSETS	$	149,520		$	147,015		$	145,183		$	140,077		$	138,208		$	2,505			2	%	$	11,312			8	%
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	28,472		$	27,292		$	27,108		$	27,186		$	27,649		$	1,180			4	%	$	823			3	%
Interest-bearing		81,332			81,035			79,149			75,420			74,890			297			—			6,442			9
Total deposits		109,804			108,327			106,257			102,606			102,539			1,477			1			7,265			7
Federal funds purchased and securities sold under agreements to repurchase		1,148			900			717			714			802			248			28			346			43
Other short-term borrowed funds		3,211			2,512			2,770			3,300			2,630			699			28			581			22
Derivative liabilities		659			840			1,010			832			485			(181	)		(22	)		174			36
Deferred taxes, net		714			994			961			852			730			(280	)		(28	)		(16	)		(2	)
Long-term borrowed funds		12,790			11,902			11,810			10,035			9,886			888			7			2,904			29
Due to broker		—			—			86			276			—			—			—			—			—
Other liabilities		1,447			1,359			1,346			1,497			1,490			88			6			(43	)		(3	)
TOTAL LIABILITIES		129,773			126,834			124,957			120,112			118,562			2,939			2			11,211			9
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized		247			247			247			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		18,722			18,740			18,735			18,730			18,725			(18	)		—			(3	)		—
Retained earnings		2,703			2,483			2,255			2,076			1,913			220			9			790			41
Treasury stock, at cost		(1,263	)		(1,108	)		(858	)		(858	)		(858	)		(155	)		(14	)		(405	)		(47	)
Accumulated other comprehensive loss		(668	)		(187	)		(159	)		(236	)		(387	)		(481	)		NM			(281	)		(73	)
TOTAL STOCKHOLDERS’ EQUITY		19,747			20,181			20,226			19,965			19,646			(434	)		(2	)		101			1
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	149,520		$	147,015		$	145,183		$	140,077		$	138,208		$	2,505			2	%	$	11,312			8	%
Memo: Total tangible common equity	$	13,154		$	13,576		$	13,608		$	13,333		$	13,000		($	422	)		(3	%)	$	154			1	%

6

LOANS AND DEPOSITS

(dollars in millions)

PERIOD END BALANCES	AS OF										DECEMBER 31, 2016 CHANGE
	Dec 31, 2016		Sept 30, 2016		June 30, 2016		Mar 31, 2016		Dec 31, 2015		Sept 30, 2016						Dec 31, 2015
											$			%			$			%
LOANS AND LEASES:
Commercial	$	37,274	$	36,449	$	35,927	$	34,671	$	33,264	$	825			2	%	$	4,010			12	%
Commercial real estate		10,624		10,152		9,825		9,406		8,971		472			5			1,653			18
Leases		3,753		3,788		3,805		3,895		3,979		(35	)		(1	)		(226	)		(6	)
Total commercial		51,651		50,389		49,557		47,972		46,214		1,262			3			5,437			12
Residential mortgages		15,115		14,602		13,855		13,345		13,318		513			4			1,797			13
Home equity loans		1,858		2,027		2,177		2,313		2,557		(169	)		(8	)		(699	)		(27	)
Home equity lines of credit		14,100		14,271		14,418		14,526		14,674		(171	)		(1	)		(574	)		(4	)
Home equity loans serviced by others1		750		796		860		930		986		(46	)		(6	)		(236	)		(24	)
Home equity lines of credit serviced by others1		219		238		273		339		389		(19	)		(8	)		(170	)		(44	)
Automobile		13,938		14,063		14,075		13,847		13,828		(125	)		(1	)		110			1
Student		6,610		5,997		5,516		5,006		4,359		613			10			2,251			52
Credit card		1,691		1,644		1,613		1,581		1,634		47			3			57			3
Other retail		1,737		1,440		1,207		1,132		1,083		297			21			654			60
Total retail		56,018		55,078		53,994		53,019		52,828		940			2			3,190			6
Total loans and leases	$	107,669	$	105,467	$	103,551	$	100,991	$	99,042	$	2,202			2	%	$	8,627			9	%
Loans held for sale	$	583	$	526	$	478	$	365	$	325	$	57			11	%	$	258			79	%
Other loans held for sale2		42		—		372		386		40		42			100			2			5
Loans and loans held for sale	$	108,294	$	105,993	$	104,401	$	101,742	$	99,407	$	2,301			2	%	$	8,887			9	%
DEPOSITS:
Demand	$	28,472	$	27,292	$	27,108	$	27,186	$	27,649	$	1,180			4	%	$	823			3	%
Checking with interest		20,714		20,573		19,838		18,706		17,921		141			1			2,793			16
Regular savings		8,964		8,797		8,841		8,748		8,218		167			2			746			9
Money market accounts		38,176		38,258		37,503		35,513		36,727		(82	)		—			1,449			4
Term deposits		13,478		13,407		12,967		12,453		12,024		71			1			1,454			12
Total deposits	$	109,804	$	108,327	$	106,257	$	102,606	$	102,539	$	1,477			1	%	$	7,265			7	%

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.

² During the third quarter of 2016 we sold a $310 million TDR loan portfolio, which was previously reported in other loans held for sale.

7

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)

AVERAGE BALANCES	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,979		$	2,121		$	1,948		$	1,675		$	1,526		($	142	)		(7	%)	$	453			30	%	$	1,931		$	1,746		$	185			11	%
Taxable investment securities		25,680			24,961			24,050			23,864			24,129			719			3			1,551			6			24,643			24,649			(6	)		—
Non-taxable investment securities		8			8			9			9			9			—			—			(1	)		(11	)		8			9			(1	)		(11	)
Total investment securities		25,688			24,969			24,059			23,873			24,138			719			3			1,550			6			24,651			24,658			(7	)		—
Investment securities and interest-bearing deposits		27,667			27,090			26,007			25,548			25,664			577			2			2,003			8			26,582			26,404			178			1
Commercial		36,965			35,986			35,622			34,018			33,080			979			3			3,885			12			35,652			32,673			2,979			9
Commercial real estate		10,294			9,905			9,649			9,108			8,855			389			4			1,439			16			9,741			8,231			1,510			18
Leases		3,773			3,813			3,863			3,917			3,884			(40	)		(1	)		(111	)		(3	)		3,841			3,902			(61	)		(2	)
Total commercial		51,032			49,704			49,134			47,043			45,819			1,328			3			5,213			11			49,234			44,806			4,428			10
Residential mortgages		14,896			14,155			13,491			13,465			13,030			741			5			1,866			14			14,005			12,338			1,667			14
Home equity loans		1,934			2,088			2,231			2,471			2,751			(154	)		(7	)		(817	)		(30	)		2,180			3,025			(845	)		(28	)
Home equity lines of credit		14,188			14,314			14,477			14,632			14,659			(126	)		(1	)		(471	)		(3	)		14,402			14,958			(556	)		(4	)
Home equity loans serviced by others1		774			837			899			958			1,017			(63	)		(8	)		(243	)		(24	)		867			1,117			(250	)		(22	)
Home equity lines of credit serviced by others1		228			256			299			340			375			(28	)		(11	)		(147	)		(39	)		281			453			(172	)		(38	)
Automobile		13,994			14,053			13,972			13,792			13,824			(59	)		—			170			1			13,953			13,516			437			3
Student		6,215			5,750			5,407			4,852			4,052			465			8			2,163			53			5,558			3,313			2,245			68
Credit cards		1,654			1,623			1,600			1,601			1,625			31			2			29			2			1,620			1,621			(1	)		—
Other retail		1,619			1,256			1,167			1,108			1,047			363			29			572			55			1,288			1,003			285			28
Total retail		55,502			54,332			53,543			53,219			52,380			1,170			2			3,122			6			54,154			51,344			2,810			5
Total loans and leases		106,534			104,036			102,677			100,262			98,199			2,498			2			8,335			8			103,388			96,150			7,238			8
Loans held for sale, at fair value		551			474			368			306			325			77			16			226			70			425			301			124			41
Other loans held for sale3		6			69			440			49			13			(63	)		(91	)		(7	)		(54	)		141			95			46			48
Interest-earning assets		134,758			131,669			129,492			126,165			124,201			3,089			2			10,557			8			130,536			122,950			7,586			6
Allowance for loan and lease losses		(1,234	)		(1,243	)		(1,219	)		(1,212	)		(1,196	)		9			1			(38	)		(3	)		(1,227	)		(1,196	)		(31	)		(3	)
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Other noninterest-earning assets		6,915			7,097			7,030			6,951			6,417			(182	)		(3	)		498			8			6,998			6,440			558			9
Total noninterest-earning assets		12,557			12,730			12,687			12,615			12,097			(173	)		(1	)		460			4			12,647			12,120			527			4
TOTAL ASSETS	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	20,268		$	19,997		$	19,003		$	17,993		$	17,117		$	271			1	%	$	3,151			18	%	$	19,320		$	16,666		$	2,654			16	%
Money market accounts		38,397			37,597			36,187			36,225			36,488			800			2			1,909			5			37,106			35,401			1,705			5
Regular savings		8,826			8,779			8,762			8,394			8,087			47			1			739			9			8,691			8,057			634			8
Term deposits		13,191			12,806			12,581			12,199			12,201			385			3			990			8			12,696			12,424			272			2
Total interest-bearing deposits		80,682			79,179			76,533			74,811			73,893			1,503			2			6,789			9			77,813			72,548			5,265			7
Federal funds purchased and securities sold under agreements to repurchase2		1,024			910			974			881			1,635			114			13			(611	)		(37	)		947			3,364			(2,417	)		(72	)
Other short-term borrowed funds		3,428			2,564			3,743			3,098			4,964			864			34			(1,536	)		(31	)		3,207			5,865			(2,658	)		(45	)
Long-term borrowed funds		10,758			10,905			10,321			9,894			6,004			(147	)		(1	)		4,754			79			10,472			4,479			5,993			134
Total borrowed funds		15,210			14,379			15,038			13,873			12,603			831			6			2,607			21			14,626			13,708			918			7
Total interest-bearing liabilities		95,892			93,558			91,571			88,684			86,496			2,334			2			9,396			11			92,439			86,256			6,183			7
Total demand deposits		28,443			27,467			27,448			27,170			27,475			976			4			968			4			27,634			26,606			1,028			4
Other liabilities		3,088			3,317			3,145			3,112			2,721			(229	)		(7	)		367			13			3,165			2,671			494			18
TOTAL LIABILITIES		127,423			124,342			122,164			118,966			116,692			3,081			2			10,731			9			123,238			115,533			7,705			7
STOCKHOLDERS’ EQUITY		19,892			20,057			20,015			19,814			19,606			(165	)		(1	)		286			1			19,945			19,537			408			2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Memo: Total average tangible common equity	$	13,291		$	13,442		$	13,386		$	13,169		$	12,948		($	151	)		(1	%)	$	343			3	%	$	13,322		$	12,919		$	403			3	%
Total deposits (interest-bearing and demand)	$	109,125		$	106,646		$	103,981		$	101,981		$	101,368		$	2,479			2	%	$	7,757			8	%	$	105,447		$	99,154		$	6,293			6	%

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  During the first half of 2016, certain troubled debt restructured loans were transferred from loans and leases to other loans held for sale. The average balances of troubled debt restructured loans held in other loans held for sale was $105 million for the year ended December 31 2016.

8

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)

	QUARTERLY TRENDS																									FULL YEAR
AVERAGE ANNUALIZED YIELDS & RATES	4Q16					3Q16					2Q16					1Q16					4Q15					2016					2015
	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		0.43	%	$	2		0.41	%	$	2		0.39	%	$	2		0.42	%	$	2		0.41	%	$	1		0.41	%	$	8		0.29	%	$	5
Taxable investment securities		2.36			152		2.34			146		2.35			141		2.43			145		2.52			153		2.37			584		2.52			621
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—
Total investment securities		2.36			152		2.34			146		2.35			141		2.43			145		2.52			153		2.37			584		2.52			621
Investment securities and interest-bearing deposits					154					148					143					147					154					592					626
Commercial		3.22			304		3.14			290		3.09			278		3.08			264		2.92			247		3.13			1,136		2.87			951
Commercial real estate		2.98			78		2.82			71		2.74			67		2.69			62		2.49			56		2.81			278		2.53			211
Leases		2.32			22		2.43			23		2.45			24		2.44			24		2.44			23		2.41			93		2.50			97
Total commercial		3.11			404		3.02			384		2.97			369		2.95			350		2.80			326		3.01			1,507		2.78			1,259
Residential mortgages		3.46			129		3.59			127		3.61			122		3.76			126		3.77			123		3.60			504		3.77			465
Home equity loans		5.66			28		5.75			30		5.64			31		5.51			34		5.30			37		5.64			123		5.38			163
Home equity lines of credit		3.21			114		3.20			115		3.18			115		3.11			113		2.95			109		3.18			457		2.95			441
Home equity loans serviced by others1		7.18			13		7.24			16		7.11			16		6.94			17		6.94			17		7.11			62		6.94			77
Home equity lines of credit serviced by others1		3.17			2		2.47			2		2.02			1		2.19			2		2.40			2		2.41			7		2.44			11
Automobile		3.03			107		2.96			104		2.95			103		2.83			97		2.80			98		2.94			411		2.73			372
Student		5.11			80		5.10			73		5.07			69		5.02			60		4.97			51		5.08			282		5.03			167
Credit cards		11.14			46		11.24			46		11.18			44		11.29			45		10.91			45		11.22			181		10.97			178
Other retail		9.70			40		9.39			29		8.94			26		8.66			24		8.08			22		9.23			119		7.75			78
Total retail		4.01			559		3.98			542		3.95			527		3.91			518		3.82			504		3.96			2,146		3.80			1,952
Total loans and leases		3.58			963		3.52			926		3.48			896		3.46			868		3.34			830		3.51			3,653		3.32			3,211
Loans held for sale		3.29			5		3.35			4		3.41			3		3.70			3		3.44			2		3.40			15		3.47			10
Other loans held for sale		6.24			—		6.41			1		4.00			4		6.64			1		5.93			—		4.55			6		7.22			7
Total interest-earning assets		3.30			1,122		3.25			1,079		3.22			1,046		3.23			1,019		3.15			986		3.25			4,266		3.12			3,854
INTEREST-BEARING LIABILITIES:
Checking with interest		0.21			10		0.20			9		0.16			8		0.14			7		0.11			5		0.18			34		0.11			19
Money market accounts		0.39			39		0.38			35		0.35			31		0.32			28		0.32			29		0.36			133		0.32			115
Regular savings		0.04			—		0.05			2		0.04			1		0.04			1		0.03			1		0.04			4		0.03			2
Term deposits		0.82			27		0.76			25		0.74			23		0.80			24		0.84			25		0.78			99		0.82			101
Total interest-bearing deposits		0.38			76		0.36			71		0.33			63		0.32			60		0.33			60		0.35			270		0.33			237
Federal funds purchased and securities sold under agreements to repurchase2		0.23			—		0.24			1		0.19			—		0.23			1		0.64			3		0.22			2		0.46			16
Other short-term borrowed funds		0.81			7		1.54			10		1.25			12		1.40			11		1.26			16		1.22			40		1.13			67
Long-term borrowed funds		1.94			53		1.89			52		1.87			48		1.75			43		2.44			37		1.86			196		2.95			132
Total borrowed funds		1.57			60		1.72			63		1.60			60		1.58			55		1.74			56		1.62			238		1.56			215
Total interest-bearing liabilities		0.57			136		0.57			134		0.54			123		0.52			115		0.53			116		0.55			508		0.52			452
INTEREST RATE SPREAD		2.73	%				2.68	%				2.68	%				2.71	%				2.62	%				2.70	%				2.60	%
NET INTEREST MARGIN		2.90					2.84					2.84					2.86					2.77					2.86					2.75
Memo Total deposits costs		0.28			76		0.27			71		0.27			63		0.24			60		0.24			60		0.26			270		0.24			237

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)

	FOURTH QUARTER 2016												THIRD QUARTER 2016												CHANGE
																									4Q16 from 3Q16
	Consumer Banking			Commercial Banking			Other1			Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$/bps			%
Net interest income	$	639		$	347		$	—		$	986		$	621		$	327		($	3	)	$	945		$	41			4	%
Noninterest income		227			122			28			377			229			123			83			435			(58	)		(13	)
Total revenue		866			469			28			1,363			850			450			80			1,380			(17	)		(1	)
Noninterest expense		649			187			11			847			650			181			36			867			(20	)		(2	)
Profit before provision for credit losses		217			282			17			516			200			269			44			513			3			1
Provision for credit losses		74			20			8			102			57			19			10			86			16			19
Income before income tax expense (benefit)		143			262			9			414			143			250			34			427			(13	)		(3	)
Income tax expense (benefit)		51			90			(9	)		132			51			88			(9	)		130			2			2
Net income	$	92		$	172		$	18		$	282		$	92		$	162		$	43		$	297		($	15	)		(5	%)
Average Balances
Total assets	$	58,066		$	48,024		$	41,225		$	147,315		$	56,689		$	47,902		$	39,808		$	144,399		$	2,916			2	%
Total loans and leases2		56,711			47,010			3,370			107,091			55,376			46,611			2,592			104,579			2,512			2
Deposits		73,124			29,410			6,591			109,125			72,141			27,847			6,658			106,646			2,479			2
Interest-earning assets		56,764			47,070			30,924			134,758			55,423			46,666			29,580			131,669			3,089			2
Key Metrics
Net interest margin		4.47	%		2.93	%		NM			2.90	%		4.46	%		2.79	%		NM			2.84	%		6	bps
Efficiency ratio		74.90			39.83			NM			62.18			76.46			40.21			NM			62.88			(70	) bps
Loans-to-deposits ratio (period-end balances)2		77.33			166.25			NM			98.62			77.22			161.45			NM			97.85			77	bps
Loans-to-deposits ratio (average balances)2		77.55			159.84			NM			98.14			76.76			167.38			NM			98.06			8	bps
Return on average total tangible assets		0.63			1.42			NM			0.79			0.64			1.35			NM			0.86			(7	) bps
Return on average tangible common equity3		6.97			12.94			NM			8.43			7.04			12.50			NM			8.58			(15	) bps

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

²  Includes loans and leases held for sale.

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

10

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)

	FOURTH QUARTER 2016												FOURTH QUARTER 2015												CHANGE
																									4Q16 from 4Q15
	Consumer Banking			Commercial Banking			Other1			Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$/bps			%
Net interest income	$	639		$	347		$	—		$	986		$	565		$	301		$	4		$	870		$	116			13	%
Noninterest income		227			122			28			377			226			107			29			362			15			4
Total revenue		866			469			28			1,363			791			408			33			1,232			131			11
Noninterest expense		649			187			11			847			624			180			6			810			37			5
Profit before provision for credit losses		217			282			17			516			167			228			27			422			94			22
Provision for credit losses		74			20			8			102			65			(2	)		28			91			11			12
Income (loss) before income tax expense (benefit)		143			262			9			414			102			230			(1	)		331			83			25
Income tax expense (benefit)		51			90			(9	)		132			35			78			(3	)		110			22			20
Net income	$	92		$	172		$	18		$	282		$	67		$	152		$	2		$	221		$	61			28	%
Average Balances
Total assets	$	58,066		$	48,024		$	41,225		$	147,315		$	54,065		$	43,835		$	38,398		$	136,298		$	11,017			8	%
Total loans and leases2		56,711			47,010			3,370			107,091			52,737			42,642			3,158			98,537			8,554			9
Deposits		73,124			29,410			6,591			109,125			70,939			24,600			5,829			101,368			7,757			8
Interest-earning assets		56,764			47,070			30,924			134,758			52,785			42,777			28,639			124,201			10,557			8
Key Metrics
Net interest margin		4.47	%		2.93	%		NM			2.90	%		4.25	%		2.80	%		NM			2.77	%		13	bps
Efficiency ratio		74.90			39.83			NM			62.18			78.85			44.02			NM			65.76			(358	) bps
Loans-to-deposits ratio (period-end balances)2		77.33			166.25			NM			98.62			74.53			172.59			NM			96.94			168	bps
Loans-to-deposits ratio (average balances)2		77.55			159.84			NM			98.14			74.34			173.34			NM			97.21			93	bps
Return on average total tangible assets		0.63			1.42			NM			0.79			0.49			1.37			NM			0.67			12	bps
Return on average tangible common equity3		6.97			12.94			NM			8.43			5.50			12.57			NM			6.75			168	bps

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

² Includes loans and leases held for sale.

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

11

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)

	FULL YEAR 2016												FULL YEAR 2015												CHANGE
																									2016 from 2015
	Consumer Banking			Commercial Banking			Other1			Consolidated			Consumer Banking			Commercial Banking			Other1			Consolidated			$/bps			%
Net interest income	$	2,443		$	1,288		$	27		$	3,758		$	2,198		$	1,162		$	42		$	3,402		$	356			10	%
Noninterest income		883			466			148			1,497			910			415			97			1,422			75			5
Total revenue		3,326			1,754			175			5,255			3,108			1,577			139			4,824			431			9
Noninterest expense		2,547			741			64			3,352			2,456			709			94			3,259			93			3
Profit before provision for credit losses		779			1,013			111			1,903			652			868			45			1,565			338			22
Provision for credit losses		243			47			79			369			252			(13	)		63			302			67			22
Income (loss) before income tax expense (benefit)		536			966			32			1,534			400			881			(18	)		1,263			271			21
Income tax expense (benefit)		191			335			(37	)		489			138			302			(17	)		423			66			16
Net income (loss)	$	345		$	631		$	69		$	1,045		$	262		$	579		($	1	)	$	840		$	205			24	%
Average Balances
Total assets	$	56,388		$	47,159		$	39,636		$	143,183		$	52,848		$	42,800		$	39,422		$	135,070		$	8,113			6	%
Total loans and leases2		55,052			45,903			2,999			103,954			51,484			41,593			3,469			96,546			7,408			8
Deposits		72,003			26,811			6,633			105,447			69,748			23,473			5,933			99,154			6,293			6
Interest-earning assets		55,101			45,978			29,457			130,536			51,525			41,689			29,736			122,950			7,586			6
Key Metrics
Net interest margin		4.43	%		2.80	%		NM			2.86	%		4.27	%		2.79	%		NM			2.75	%		11	bps
Efficiency ratio		76.57			42.26			NM			63.80			79.02			44.94			NM			67.56			(376	) bps
Loans-to-deposits ratio (period-end balances)2		77.33			166.25			NM			98.62			75.53			172.59			NM			96.94			168	bps
Loans-to-deposits ratio (average balances)2		76.46			171.21			NM			98.58			73.81			177.19			NM			97.37			121	bps
Return on average total tangible assets		0.61			1.34			NM			0.76			0.50			1.35			NM			0.65			11	bps
Return on average tangible common equity3		6.68			12.44			NM			7.74			5.53			12.41			NM			6.45			129	bps

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

² Includes loans and leases held for sale.

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

12

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FULL YEAR
CONSUMER BANKING																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	639		$	621		$	602		$	581		$	565		$	18			3	%	$	74			13	%	$	2,443		$	2,198		$	245			11	%
Noninterest income		227			229			219			208			226			(2	)		(1	)		1			—			883			910			(27	)		(3	)
Total revenue		866			850			821			789			791			16			2			75			9			3,326			3,108			218			7
Noninterest expense		649			650			632			616			624			(1	)		—			25			4			2,547			2,456			91			4
Profit before provision for credit losses		217			200			189			173			167			17			9			50			30			779			652			127			19
Provision for credit losses		74			57			49			63			65			17			30			9			14			243			252			(9	)		(4	)
Income before income tax expense		143			143			140			110			102			—			—			41			40			536			400			136			34
Income tax expense		51			51			50			39			35			—			—			16			46			191			138			53			38
Net income	$	92		$	92		$	90		$	71		$	67		$	—			—	%	$	25			37	%	$	345		$	262		$	83			32	%
Average Balances
Total assets	$	58,066		$	56,689		$	55,660		$	55,116		$	54,065		$	1,377			2	%	$	4,001			7	%	$	56,388		$	52,848		$	3,540			7	%
Total loans and leases1		56,711			55,376			54,353			53,744			52,737			1,335			2			3,974			8			55,052			51,484			3,568			7
Deposits		73,124			72,141			71,863			70,871			70,939			983			1			2,185			3			72,003			69,748			2,255			3
Interest-earning assets		56,764			55,423			54,400			53,793			52,785			1,341			2			3,979			8			55,101			51,525			3,576			7
Key Metrics
Net interest margin		4.47	%		4.46	%		4.45	%		4.35	%		4.25	%		7	bps					22	bps					4.43	%		4.27	%		16	bps
Efficiency ratio		74.90			76.46			76.68			78.08			78.85			(156	) bps					(395	) bps					76.57			79.02			(245	) bps
Loans-to-deposits ratio (period-end balances)1		77.33			77.22			76.05			74.74			74.53			11	bps					280	bps					77.33			74.53			280	bps
Loans-to-deposits ratio (average balances)1		77.55			76.76			75.63			75.83			74.34			79	bps					321	bps					76.46			73.81			265	bps
Return on average total tangible assets		0.63			0.64			0.65			0.52			0.49			(1	) bps					14	bps					0.61			0.50			11	bps
Return on average tangible common equity2		6.97			7.04			7.09			5.59			5.50			(7	) bps					147	bps					6.68			5.53			115	bps

¹ Includes loans and leases held for sale.

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

13

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FULL YEAR
COMMERCIAL BANKING																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	347		$	327		$	314		$	300		$	301		$	20			6	%	$	46			15	%	$	1,288		$	1,162		$	126			11	%
Noninterest income		122			123			122			99			107			(1	)		(1	)		15			14			466			415			51			12
Total revenue		469			450			436			399			408			19			4			61			15			1,754			1,577			177			11
Noninterest expense		187			181			186			187			180			6			3			7			4			741			709			32			5
Profit before provision for credit losses		282			269			250			212			228			13			5			54			24			1,013			868			145			17
Provision for credit losses		20			19			(1	)		9			(2	)		1			5			22			NM			47			(13	)		60			NM
Income before income tax expense		262			250			251			203			230			12			5			32			14			966			881			85			10
Income tax expense		90			88			87			70			78			2			2			12			15			335			302			33			11
Net income	$	172		$	162		$	164		$	133		$	152		$	10			6	%	$	20			13	%	$	631		$	579		$	52			9	%
Average Balances
Total assets	$	48,024		$	47,902		$	47,388		$	45,304		$	43,835		$	122			—	%	$	4,189			10	%	$	47,159		$	42,800		$	4,359			10	%
Total loans and leases1		47,010			46,611			46,073			43,899			42,642			399			1			4,368			10			45,903			41,593			4,310			10
Deposits		29,410			27,847			25,113			24,833			24,600			1,563			6			4,810			20			26,811			23,473			3,338			14
Interest-earning assets		47,070			46,666			46,170			43,987			42,777			404			1			4,293			10			45,978			41,689			4,289			10
Key Metrics
Net interest margin		2.93	%		2.79	%		2.74	%		2.74	%		2.80	%		14	bps					13	bps					2.80	%		2.79	%		1	bps
Efficiency ratio		39.83			40.21			42.88			46.74			44.02			(38	) bps					(419	) bps					42.26			44.94			(268	) bps
Loans-to-deposits ratio (period-end balances)1		166.25			161.45			172.65			185.13			172.59			480	bps					(634	) bps					166.25			172.59			(634	) bps
Loans-to-deposits ratio (average balances)1		159.84			167.38			183.46			176.78			173.34			(754	) bps					(1,350	) bps					171.21			177.19			(598	) bps
Return on average total tangible assets		1.42			1.35			1.39			1.18			1.37			7	bps					5	bps					1.34			1.35			(1	) bps
Return on average tangible common equity2		12.94			12.50			13.04			11.19			12.57			44	bps					37	bps					12.44			12.41			3	bps

¹ Includes loans and leases held for sale.

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

14

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)

	QUARTERLY TRENDS																										FULL YEAR
OTHER1															4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16		4Q15			3Q16						4Q15						2016			2015			2015
															$			%			$			%									$			%
Net interest income	$	—		($	3	)	$	7		$	23	$	4		$	3			100	%	($	4	)		(100	%)	$	27		$	42		($	15	)		(36	%)
Noninterest income		28			83			14			23		29			(55	)		(66	)		(1	)		(3	)		148			97			51			53
Total revenue		28			80			21			46		33			(52	)		(65	)		(5	)		(15	)		175			139			36			26
Noninterest expense		11			36			9			8		6			(25	)		(69	)		5			83			64			94			(30	)		(32	)
Profit before provision for credit losses		17			44			12			38		27			(27	)		(61	)		(10	)		(37	)		111			45			66			147
Provision for credit losses		8			10			42			19		28			(2	)		(20	)		(20	)		(71	)		79			63			16			25
Income (loss) before income tax expense (benefit)		9			34			(30	)		19		(1	)		(25	)		(74	)		10			NM			32			(18	)		50			NM
Income tax expense (benefit)		(9	)		(9	)		(19	)		—		(3	)		—			—			(6	)		(200	)		(37	)		(17	)		(20	)		(118	)
Net income (loss)	$	18		$	43		($	11	)	$	19	$	2		($	25	)		(58	%)	$	16			NM		$	69		($	1	)	$	70			NM
Average Balances
Total assets	$	41,225		$	39,808		$	39,131		$	38,360	$	38,398		$	1,417			4	%	$	2,827			7	%	$	39,636		$	39,422		$	214			1	%
Total loans and leases		3,370			2,592			3,059			2,974		3,158			778			30			212			7			2,999			3,469			(470	)		(14	)
Deposits		6,591			6,658			7,005			6,277		5,829			(67	)		(1	)		762			13			6,633			5,933			700			12
Interest-earning assets		30,924			29,580			28,922			28,385		28,639			1,344			5			2,285			8			29,457			29,736			(279	)		(1	)

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

15

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)

	QUARTERLY TRENDS																											FULL YEAR
CONSOLIDATED																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	986		$	945		$	923		$	904		$	870		$	41			4	%	$	116			13	%	$	3,758		$	3,402		$	356			10	%
Noninterest income		377			435			355			330			362			(58	)		(13	)		15			4			1,497			1,422			75			5
Total revenue		1,363			1,380			1,278			1,234			1,232			(17	)		(1	)		131			11			5,255			4,824			431			9
Noninterest expense		847			867			827			811			810			(20	)		(2	)		37			5			3,352			3,259			93			3
Profit before provision for credit losses		516			513			451			423			422			3			1			94			22			1,903			1,565			338			22
Provision for credit losses		102			86			90			91			91			16			19			11			12			369			302			67			22
Income before income tax expense		414			427			361			332			331			(13	)		(3	)		83			25			1,534			1,263			271			21
Income tax expense		132			130			118			109			110			2			2			22			20			489			423			66			16
Net income	$	282		$	297		$	243		$	223		$	221		($	15	)		(5	%)	$	61			28	%	$	1,045		$	840		$	205			24	%
Average Balances
Total assets	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Total loans and leases1		107,091			104,579			103,485			100,617			98,537			2,512			2			8,554			9			103,954			96,546			7,408			8
Deposits		109,125			106,646			103,981			101,981			101,368			2,479			2			7,757			8			105,447			99,154			6,293			6
Interest-earning assets		134,758			131,669			129,492			126,165			124,201			3,089			2			10,557			8			130,536			122,950			7,586			6
Key Metrics
Net interest margin		2.90	%		2.84	%		2.84	%		2.86	%		2.77	%		6	bps					13	bps					2.86	%		2.75	%		11	bps
Efficiency ratio		62.18			62.88			64.71			65.66			65.76			(70	) bps					(358	) bps					63.80			67.56			(376	) bps
Loans-to-deposits ratio (period-end balances)1		98.62			97.85			98.25			99.16			96.94			77	bps					168	bps					98.62			96.94			168	bps
Loans-to-deposits ratio (average balances)1		98.14			98.06			99.52			98.66			97.21			8	bps					93	bps					98.58			97.37			121	bps
Return on average total tangible assets		0.79			0.86			0.72			0.68			0.67			(7	) bps					12	bps					0.76			0.65			11	bps
Return on average tangible common equity		8.43			8.58			7.30			6.61			6.75			(15	) bps					168	bps					7.74			6.45			129	bps

¹ Includes loans and leases held for sale.    

16

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)

	QUARTERLY TRENDS																							FULL YEAR
												4Q16 Change																2016 Change
	4Q16		3Q16			2Q16		1Q16		4Q15		3Q16						4Q15						2016		2015		2015
												$			%			$			%							$			%
Net interest income:
Consumer Banking	$	639	$	621		$	602	$	581	$	565	$	18			3	%	$	74			13	%	$	2,443	$	2,198	$	245			11	%
Commercial Banking		347		327			314		300		301		20			6			46			15			1,288		1,162		126			11
Other		—		(3	)		7		23		4		3			100			(4	)		(100	)		27		42		(15	)		(36	)
Net interest income	$	986	$	945		$	923	$	904	$	870	$	41			4	%	$	116			13	%	$	3,758	$	3,402	$	356			10	%
Noninterest income:
Consumer Banking	$	227	$	229		$	219	$	208	$	226	($	2	)		(1	%)	$	1			—	%	$	883	$	910	($	27	)		(3	%)
Commercial Banking		122		123			122		99		107		(1	)		(1	)		15			14			466		415		51			12
Other		28		83			14		23		29		(55	)		66			(1	)		(3	)		148		97		51			53
Noninterest income	$	377	$	435		$	355	$	330	$	362	($	58	)		(13	%)	$	15			4	%	$	1,497	$	1,422	$	75			5	%
Total revenue:
Consumer Banking	$	866	$	850		$	821	$	789	$	791	$	16			2	%	$	75			9	%	$	3,326	$	3,108	$	218			7	%
Commercial Banking		469		450			436		399		408		19			4			61			15			1,754		1,577		177			11
Other		28		80			21		46		33		(52	)		(65	)		(5	)		(15	)		175		139		36			26
Total revenue	$	1,363	$	1,380		$	1,278	$	1,234	$	1,232	($	17	)		(1	%)	$	131			11	%	$	5,255	$	4,824	$	431			9	%
Noninterest expense:
Consumer Banking	$	649	$	650		$	632	$	616	$	624	($	1	)		—	%	$	25			4	%	$	2,547	$	2,456	$	91			4	%
Commercial Banking		187		181			186		187		180		6			3			7			4			741		709		32			5
Other		11		36			9		8		6		(25	)		(69	)		5			83			64		94		(30	)		(32	)
Noninterest expense	$	847	$	867		$	827	$	811	$	810	($	20	)		(2	%)	$	37			5	%	$	3,352	$	3,259	$	93			3	%
Profit before provision for credit losses:
Consumer Banking	$	217	$	200		$	189	$	173	$	167	$	17			9	%	$	50			30	%	$	779	$	652	$	127			19	%
Commercial Banking		282		269			250		212		228		13			5			54			24			1,013		868		145			17
Other		17		44			12		38		27		(27	)		(61	)		(10	)		(37	)		111		45		66			147
Profit before provision for credit losses	$	516	$	513		$	451	$	423	$	422	$	3			1	%	$	94			22	%	$	1,903	$	1,565	$	338			22	%

17

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																										FULL YEAR
															4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16		4Q15			3Q16						4Q15						2016			2015			2015
															$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	74		$	57		$	49		$	63	$	65		$	17			30	%	$	9			14	%	$	243		$	252		($	9	)		(4	%)
Commercial Banking		20			19			(1	)		9		(2	)		1			5			22			NM			47			(13	)		60			NM
Other		8			10			42			19		28			(2	)		(20	)		(20	)		(71	)		79			63			16			25
Provision for credit losses	$	102		$	86		$	90		$	91	$	91		$	16			19	%	$	11			12	%	$	369		$	302		$	67			22	%
Income before income tax expense:
Consumer Banking	$	143		$	143		$	140		$	110	$	102		$	—			—	%	$	41			40	%	$	536		$	400		$	136			34	%
Commercial Banking		262			250			251			203		230			12			5			32			14			966			881			85			10
Other		9			34			(30	)		19		(1	)		(25	)		(74	)		10			NM			32			(18	)		50			NM
Income before income tax expense	$	414		$	427		$	361		$	332	$	331		($	13	)		(3	%)	$	83			25	%	$	1,534		$	1,263		$	271			21	%
Income tax expense:
Consumer Banking	$	51		$	51		$	50		$	39	$	35		$	—			—	%	$	16			46	%	$	191		$	138		$	53			38	%
Commercial Banking		90			88			87			70		78			2			2			12			15			335			302			33			11
Other		(9	)		(9	)		(19	)		—		(3	)		—			—			(6	)		(200	)		(37	)		(17	)		(20	)		(118	)
Income tax expense	$	132		$	130		$	118		$	109	$	110		$	2			2	%	$	22			20	%	$	489		$	423		$	66			16	%
Net income:
Consumer Banking	$	92		$	92		$	90		$	71	$	67		$	—			—	%	$	25			37	%	$	345		$	262		$	83			32	%
Commercial Banking		172			162			164			133		152			10			6			20			13			631			579			52			9
Other		18			43			(11	)		19		2			(25	)		(58	)		16			NM			69			(1	)		70			NM
Net income	$	282		$	297		$	243		$	223	$	221		($	15	)		(5	%)	$	61			28	%	$	1,045		$	840		$	205			24	%

18

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)

	QUARTERLY TRENDS																					FULL YEAR
AVERAGE BALANCES											4Q16 Change															2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15		3Q16						4Q15					2016		2015		2015
											$			%			$		%							$			%
Total assets:
Consumer Banking	$	58,066	$	56,689	$	55,660	$	55,116	$	54,065	$	1,377			2	%	$	4,001		7	%	$	56,388	$	52,848	$	3,540			7	%
Commercial Banking		48,024		47,902		47,388		45,304		43,835		122			—			4,189		10			47,159		42,800		4,359			10
Other		41,225		39,808		39,131		38,360		38,398		1,417			4			2,827		7			39,636		39,422		214			1
Total Assets	$	147,315	$	144,399	$	142,179	$	138,780	$	136,298	$	2,916			2	%	$	11,017		8	%	$	143,183	$	135,070	$	8,113			6	%
Loans and leases1:
Consumer Banking	$	56,711	$	55,376	$	54,353	$	53,744	$	52,737	$	1,335			2	%	$	3,974		8	%	$	55,052	$	51,484	$	3,568			7	%
Commercial Banking		47,010		46,611		46,073		43,899		42,642		399			1			4,368		10			45,903		41,593		4,310			10
Other		3,370		2,592		3,059		2,974		3,158		778			30			212		7			2,999		3,469		(470	)		(14	)
Total loans and leases	$	107,091	$	104,579	$	103,485	$	100,617	$	98,537	$	2,512			2	%	$	8,554		9	%	$	103,954	$	96,546	$	7,408			8	%
Deposits:
Consumer Banking	$	73,124	$	72,141	$	71,863	$	70,871	$	70,939	$	983			1	%	$	2,185		3	%	$	72,003	$	69,748	$	2,255			3	%
Commercial Banking		29,410		27,847		25,113		24,833		24,600		1,563			6			4,810		20			26,811		23,473		3,338			14
Other		6,591		6,658		7,005		6,277		5,829		(67	)		(1	)		762		13			6,633		5,933		700			12
Total deposits	$	109,125	$	106,646	$	103,981	$	101,981	$	101,368	$	2,479			2	%	$	7,757		8	%	$	105,447	$	99,154	$	6,293			6	%
Interest-earning assets:
Consumer Banking	$	56,764	$	55,423	$	54,400	$	53,793	$	52,785	$	1,341			2	%	$	3,979		8	%	$	55,101	$	51,525	$	3,576			7	%
Commercial Banking		47,070		46,666		46,170		43,987		42,777		404			1			4,293		10			45,978		41,689		4,289			10
Other		30,924		29,580		28,922		28,385		28,639		1,344			5			2,285		8			29,457		29,736		(279	)		(1	)
Total interest-earning assets	$	134,758	$	131,669	$	129,492	$	126,165	$	124,201	$	3,089			2	%	$	10,557		8	%	$	130,536	$	122,950	$	7,586			6	%

¹ Includes loans and leases held for sale.

19

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

	QUARTERLY TRENDS																					FULL YEAR
KEY METRICS																4Q16 Change												2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16			4Q15			2016			2015			2015
																bps			bps									bps
Net Interest Margin (NIM)
Consumer Banking		4.47	%		4.46	%		4.45	%		4.35	%		4.25	%		1			22			4.43	%		4.27	%		16
Commercial Banking		2.93			2.79			2.74			2.74			2.80			14			13			2.80			2.79			1
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
NIM		2.90			2.84			2.84			2.84			2.77			6			13			2.86			2.75			11
Efficiency Ratio
Consumer Banking		74.90	%		76.46	%		76.98	%		78.08	%		78.85	%		(156	)		(395	)		76.57	%		79.02	%		(245	)
Commercial Banking		39.83			40.21			42.88			46.74			44.02			(38	)		(419	)		42.26			44.94			(268	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
Efficiency Ratio		62.18			62.88			64.71			65.66			65.76			(70	)		(358	)		63.80			67.56			(376	)
Loans-to-Deposits Ratio (period-end balance) (LDR)1
Consumer Banking		77.33	%		77.22	%		76.05	%		74.74	%		74.53	%		11			280			77.33	%		74.53	%		280
Commercial Banking		166.25			161.45			172.65			185.13			172.59			480			(634	)		166.25			172.59			(634	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
LDR		98.62			97.85			98.25			99.16			96.94			77			168			98.62			96.94			168
Loans-to-Deposits Ratio (average balance) (LDR)1
Consumer Banking		77.55	%		76.76	%		75.63	%		75.83	%		74.34	%		79			321			76.46	%		73.81	%		265
Commercial Banking		159.84			167.38			183.46			176.78			173.34			(754	)		(1,350	)		171.21			177.19			(598	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
LDR		98.14			98.06			99.52			98.66			97.21			8			93			98.58			97.37			121
Return on Average Tangible Assets (ROTA)
Consumer Banking		0.63	%		0.64	%		0.65	%		0.52	%		0.49	%		(1	)		14			0.61	%		0.50	%		11
Commercial Banking		1.42			1.35			1.39			1.18			1.37			7			5			1.34			1.35			(1	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
ROTA		0.79			0.86			0.72			0.68			0.67			(7	)		12			0.76			0.65			11
Return on Average Tangible Common Equity (ROTCE)2
Consumer Banking		6.97	%		7.04	%		7.09	%		5.59	%		5.50	%		(7	)		147			6.68	%		5.53	%		115
Commercial Banking		12.94			12.50			13.04			11.19			12.57			44			37			12.44			12.41			3
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
ROTCE		8.43			8.58			7.30			6.61			6.75			(15	)		168			7.74			6.45			129

¹ Includes loans and leases held for sale.

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

20

CREDIT-RELATED INFORMATION

(dollars in millions)

	AS OF										DECEMBER 31, 2016 CHANGE
	Dec 31, 2016		Sept 30, 2016		June 30, 2016		Mar 31, 2016		Dec 31, 2015		Sept 30, 2016						Dec 31, 2015
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	37,274	$	36,449	$	35,927	$	34,671	$	33,264	$	825			2	%	$	4,010			12	%
Commercial real estate		10,624		10,152		9,825		9,406		8,971		472			5			1,653			18
Leases		3,753		3,788		3,805		3,895		3,979		(35	)		(1	)		(226	)		(6	)
Total commercial		51,651		50,389		49,557		47,972		46,214		1,262			3			5,437			12
Residential mortgages		15,115		14,602		13,855		13,345		13,318		513			4			1,797			13
Home equity loans		1,858		2,027		2,177		2,313		2,557		(169	)		(8	)		(699	)		(27	)
Home equity lines of credit		14,100		14,271		14,418		14,526		14,674		(171	)		(1	)		(574	)		(4	)
Home equity loans serviced by others1		750		796		860		930		986		(46	)		(6	)		(236	)		(24	)
Home equity lines of credit serviced by others1		219		238		273		339		389		(19	)		(8	)		(170	)		(44	)
Automobile		13,938		14,063		14,075		13,847		13,828		(125	)		(1	)		110			1
Student		6,610		5,997		5,516		5,006		4,359		613			10			2,251			52
Credit card		1,691		1,644		1,613		1,581		1,634		47			3			57			3
Other retail		1,737		1,440		1,207		1,132		1,083		297			21			654			60
Total retail		56,018		55,078		53,994		53,019		52,828		940			2			3,190			6
Total loans and leases		107,669		105,467		103,551		100,991		99,042		2,202			2			8,627			9
Derivative receivable - commercial		621		1,084		1,297		1,057		619		(463	)		(43	)		2			—
Derivative receivable - retail		6		18		15		11		6		(12	)		(67	)		—			—
Total derivative receivable		627		1,102		1,312		1,068		625		(475	)		(43	)		2			—
Total credit-related assets		108,296		106,569		104,863		102,059		99,667		1,727			2			8,629			9
Undrawn commitments to extend credit - commercial		34,005		32,991		32,018		30,352		30,823		1,014			3			3,182			10
Financial standby letters of credit		1,892		1,980		1,946		1,921		2,010		(88	)		(4	)		(118	)		(6	)
Performance letters of credit		40		40		37		41		42		—			—			(2	)		(5	)
Commercial letters of credit		43		55		70		63		87		(12	)		(22	)		(44	)		(51	)
Marketing rights		44		44		46		47		47		—			—			(3	)		(6	)
Risk participation agreements		19		51		64		53		26		(32	)		(63	)		(7	)		(27	)
Total commercial lending-related arrangements		36,043		35,161		34,181		32,477		33,035		882			3			3,008			9
Undrawn commitments to extend credit - retail		26,867		27,134		26,604		26,637		25,701		(267	)		(1	)		1,166			5
Residential mortgage loans sold with recourse		8		9		9		10		10		(1	)		(11	)		(2	)		(20	)
Total retail lending-related arrangements		26,875		27,143		26,613		26,647		25,711		(268	)		(1	)		1,164			5
Total lending-related arrangements		62,918		62,304		60,794		59,124		58,746		614			1			4,172			7
Total credit exposure	$	171,214	$	168,873	$	165,657	$	161,183	$	158,413	$	2,341			1	%	$	12,801			8	%
Memo: Total credit exposure by product category
Commercial exposure	$	88,315	$	86,634	$	85,035	$	81,506	$	79,868	$	1,681			2	%	$	8,447			11	%
Retail exposure		82,899		82,239		80,622		79,677		78,545		660			1			4,354			6
Total credit exposure	$	171,214	$	168,873	$	165,657	$	161,183	$	158,413	$	2,341			1	%	$	12,801			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.

21

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except ratios)

	AS OF															DECEMBER 31, 2016 CHANGE
	Dec 31, 2016			Sept 30, 2016			June 30, 2016			Mar 31, 2016			Dec 31, 2015			Sept 30, 2016						Dec 31, 2015
																$/bps			%			$/bps			%
NONPERFORMING ASSETS:
Commercial	$	322		$	334		$	277		$	284		$	71		($	12	)		(4	%)	$	251			NM
Commercial real estate		50			62			70			86			77			(12	)		(19	)		(27	)		(35	)
Leases		15			—			—			—			—			15			100			15			100
Total commercial		387			396			347			370			148			(9	)		(2	)		239			161
Residential mortgages2		144			170			174			174			331			(26	)		(15	)		(187	)		(56	)
Home equity loans		98			105			104			99			135			(7	)		(7	)		(37	)		(27	)
Home equity lines of credit		243			249			251			261			272			(6	)		(2	)		(29	)		(11	)
Home equity loans serviced by others3		32			32			33			37			38			—			—			(6	)		(16	)
Home equity lines of credit serviced by others3		33			42			38			38			32			(9	)		(21	)		1			3
Automobile		50			55			43			42			42			(5	)		(9	)		8			19
Student		38			38			37			40			41			—			—			(3	)		(7	)
Credit card		16			16			14			16			16			—			—			—			—
Other retail		4			4			3			2			5			—			—			(1	)		(20	)
Total retail		658			711			697			709			912			(53	)		(7	)		(254	)		(28	)
Nonperforming loans and leases1		1,045			1,107			1,044			1,079			1,060			(62	)		(6	)		(15	)		(1	)
Accruing loans past due 90 days or more not included above	$	26		$	24		$	26		$	32		$	—
Accruing loans past due 90 days or more included above		—			—			—			—			9
Commercial	$	—		$	—		$	1		$	1		$	1		$	—			—	%	($	1	)		(100	%)
Retail		49			49			47			47			45			—			—			4			9
Other nonperforming assets		49			49			48			48			46			—			—			3			7
Nonperforming assets	$	1,094		$	1,156		$	1,092		$	1,127		$	1,106		($	62	)		(5	%)	($	12	)		(1	%)
NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	387		$	396		$	348		$	371		$	149		($	9	)		(2	%)	$	238			160	%
Retail		707			760			744			756			957			(53	)		(7	)		(250	)		(26	)
Nonperforming assets	$	1,094		$	1,156		$	1,092		$	1,127		$	1,106		($	62	)		(5	%)	($	12	)		(1	%)
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.15	%		1.18	%		1.20	%		1.21	%		1.23	%		(3	) bps					(8	) bps
Allowance for loan and lease losses to nonperforming loans and leases1		118.32			112.03			119.27			113.43			114.64			629	bps					368	bps
Nonperforming loans and leases to loans and leases1		0.97			1.05			1.01			1.07			1.07			(8	) bps					(10	) bps
Nonperforming assets to total assets1		0.73			0.79			0.75			0.80			0.80			(6	) bps					(7	) bps

¹ Nonperforming loans and leases included loans and leases on nonaccrual. Nonperforming loans and leases for periods prior to March 31, 2016 included loans and leases on nonaccrual and loans and leases accruing and 90 days or more past due.

²  Nonperforming balances at December 31, 2016 excluded $18 million of first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration and $32 million of guaranteed residential mortgage loans sold to GNMA for which the Company has the right but not the obligation to repurchase.

³  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																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$			%			$			%									$			%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS:
Commercial	$	19		$	20		$	4		$	13		$	3		($	1	)		(5	%)	$	16			NM		$	56		$	30		$	26			87	%
Commercial real estate		1			10			3			—			1			(9	)		(90	)		—			—			14			6			8			133
Leases		6			3			—			—			—			3			100			6			100			9			—			9			100
Total commercial		26			33			7			13			4			(7	)		(21	)		22			NM			79			36			43			119
Residential mortgages		6			4			5			6			5			2			50			1			20			21			22			(1	)		(5	)
Home equity loans		3			7			3			3			11			(4	)		(57	)		(8	)		(73	)		16			34			(18	)		(53	)
Home equity lines of credit		10			9			11			13			9			1			11			1			11			43			59			(16	)		(27	)
Home equity loans serviced by others1		9			9			11			9			9			—			—			—			—			38			32			6			19
Home equity lines of credit serviced by others1		2			3			4			3			4			(1	)		(33	)		(2	)		(50	)		12			14			(2	)		(14	)
Automobile		50			39			32			39			39			11			28			11			28			160			117			43			37
Student		16			11			14			11			14			5			45			2			14			52			51			1			2
Credit card		15			14			15			14			14			1			7			1			7			58			59			(1	)		(2	)
Other retail		15			16			11			15			15			(1	)		(6	)		—			—			57			56			1			2
Total retail		126			112			106			113			120			14			13			6			5			457			444			13			3
Total gross charge-offs	$	152		$	145		$	113		$	126		$	124		$	7			5	%	$	28			23	%	$	536		$	480		$	56			12	%
GROSS RECOVERIES:
Commercial	$	8		$	5		$	5		$	3		$	4		$	3			60	%	$	4			100	%	$	21		$	18		$	3			17	%
Commercial real estate		2			9			—			1			3			(7	)		(78	)		(1	)		(33	)		12			31			(19	)		(61	)
Leases		—			—			—			—			—			—			—			—			—			—			—			—			—
Total commercial		10			14			5			4			7			(4	)		(29	)		3			43			33			49			(16	)		(33	)
Residential mortgages		2			2			2			3			4			—			—			(2	)		(50	)		9			12			(3	)		(25	)
Home equity loans		3			10			3			2			4			(7	)		(70	)		(1	)		(25	)		18			11			7			64
Home equity lines of credit		4			7			4			3			4			(3	)		(43	)		—			—			18			18			—			—
Home equity loans serviced by others1		4			5			6			4			4			(1	)		(20	)		—			—			19			17			2			12
Home equity lines of credit serviced by others1		1			2			2			1			2			(1	)		(50	)		(1	)		(50	)		6			8			(2	)		(25	)
Automobile		16			15			17			17			15			1			7			1			7			65			49			16			33
Student		2			3			3			3			3			(1	)		(33	)		(1	)		(33	)		11			12			(1	)		(8	)
Credit card		2			2			2			2			2			—			—			—			—			8			8			—			—
Other retail		4			2			4			4			2			2			100			2			100			14			12			2			17
Total retail		38			48			43			39			40			(10	)		(21	)		(2	)		(5	)		168			147			21			14
Total gross recoveries	$	48		$	62		$	48		$	43		$	47		($	14	)		(23	%)	$	1			2	%	$	201		$	196		$	5			3	%
NET CHARGE-OFFS (RECOVERIES):
Commercial	$	11		$	15		($	1	)	$	10		($	1	)	($	4	)		(27	%)	$	12			NM		$	35		$	12		$	23			192	%
Commercial real estate		(1	)		1			3			(1	)		(2	)		(2	)		(200	)		1			50			2			(25	)		27			108
Leases		6			3			—			—			—			3			100			6			100			9			—			9			100
Total commercial		16			19			2			9			(3	)		(3	)		(16	)		19			NM			46			(13	)		59			NM
Residential mortgages		4			2			3			3			1			2			100			3			NM			12			10			2			20
Home equity loans		—			(3	)		—			1			7			3			100			(7	)		(100	)		(2	)		23			(25	)		(109	)
Home equity lines of credit		6			2			7			10			5			4			200			1			20			25			41			(16	)		(39	)
Home equity loans serviced by others1		5			4			5			5			5			1			25			—			—			19			15			4			27
Home equity lines of credit serviced by others1		1			1			2			2			2			—			—			(1	)		(50	)		6			6			—			—
Automobile		34			24			15			22			24			10			42			10			42			95			68			27			40
Student		14			8			11			8			11			6			75			3			27			41			39			2			5
Credit card		13			12			13			12			12			1			8			1			8			50			51			(1	)		(2	)
Other retail		11			14			7			11			13			(3	)		(21	)		(2	)		(15	)		43			44			(1	)		(2	)
Total retail		88			64			63			74			80			24			38			8			10			289			297			(8	)		(3	)
Total net charge-offs (recoveries)	$	104		$	83		$	65		$	83		$	77		$	21			25	%	$	27			35	%	$	335		$	284		$	51			18	%

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 ratios)

	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.13	%		0.16	%		(0.01	%)		0.12	%		(0.01	%)		(3	) bps					14	bps					0.10	%		0.04	%		6	bps
Commercial real estate		(0.08	)		0.05			0.11			(0.01	)		(0.11	)		(13	) bps					3	bps					0.02			(0.31	)		33	bps
Leases		0.65			0.30			—			—			—			35	bps					65	bps					0.23			—			23	bps
Total commercial		0.13			0.15			0.01			0.08			(0.03	)		(2	) bps					16	bps					0.09			(0.03	)		12	bps
Residential mortgages		0.10			0.05			0.08			0.09			0.05			5	bps					5	bps					0.08			0.09			(1	) bps
Home equity loans		(0.02	)		(0.36	)		0.01			0.06			1.07			34	bps					(109	) bps					(0.07	)		0.76			(83	) bps
Home equity lines of credit		0.19			0.07			0.19			0.26			0.12			12	bps					7	bps					0.18			0.27			(9	) bps
Home equity loans serviced by others1		2.36			1.88			2.47			2.03			1.81			48	bps					55	bps					2.18			1.26			92	bps
Home equity lines of credit serviced by others1		2.34			1.84			2.35			2.09			1.99			50	bps					35	bps					2.15			1.37			78	bps
Automobile		0.96			0.69			0.41			0.65			0.71			27	bps					25	bps					0.68			0.51			17	bps
Student		0.86			0.59			0.83			0.64			1.07			27	bps					(21	) bps					0.73			1.19			(46	) bps
Credit card		3.15			2.84			3.19			3.07			2.98			31	bps					17	bps					3.06			3.14			(8	) bps
Other retail		2.61			3.74			3.00			4.18			4.38			(113	) bps					(177	) bps					3.31			4.39			(108	) bps
Total retail		0.63			0.47			0.48			0.55			0.60			16	bps					3	bps					0.53			0.58			(5	) bps
Total loans and leases		0.39	%		0.32	%		0.25	%		0.33	%		0.31	%		7	bps					8	bps					0.32	%		0.30	%		2	bps
Memo: Average loans:
Commercial	$	36,965		$	35,986		$	35,622		$	34,018		$	33,080		$	979			3	%	$	3,885			12	%	$	35,652		$	32,673		$	2,979			9	%
Commercial real estate		10,294			9,905			9,649			9,108			8,855			389			4			1,439			16			9,741			8,231			1,510			18
Leases		3,773			3,813			3,863			3,917			3,884			(40	)		(1	)		(111	)		(3	)		3,841			3,902			(61	)		(2	)
Total commercial		51,032			49,704			49,134			47,043			45,819			1,328			3			5,213			11			49,234			44,806			4,428			10
Residential mortgages		14,896			14,155			13,491			13,465			13,030			741			5			1,866			14			14,005			12,338			1,667			14
Home equity loans		1,934			2,088			2,231			2,471			2,751			(154	)		(7	)		(817	)		(30	)		2,180			3,025			(845	)		(28	)
Home equity lines of credit		14,188			14,314			14,477			14,632			14,659			(126	)		(1	)		(471	)		(3	)		14,402			14,958			(556	)		(4	)
Home equity loans serviced by others1		774			837			899			958			1,017			(63	)		(8	)		(243	)		(24	)		867			1,117			(250	)		(22	)
Home equity lines of credit serviced by others1		228			256			299			340			375			(28	)		(11	)		(147	)		(39	)		281			453			(172	)		(38	)
Automobile		13,994			14,053			13,972			13,792			13,824			(59	)		—			170			1			13,953			13,516			437			3
Student		6,215			5,750			5,407			4,852			4,052			465			8			2,163			53			5,558			3,313			2,245			68
Credit card		1,654			1,623			1,600			1,601			1,625			31			2			29			2			1,620			1,621			(1	)		—
Other retail		1,619			1,256			1,167			1,108			1,047			363			29			572			55			1,288			1,003			285			28
Total retail		55,502			54,332			53,543			53,219			52,380			1,170			2			3,122			6			54,154			51,344			2,810			5
Total loans and leases	$	106,534		$	104,036		$	102,677		$	100,262		$	98,199		$	2,498			2	%	$	8,335			8	%	$	103,388		$	96,150		$	7,238			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																								FULL YEAR
													4Q16 Change																	2016 Change
	4Q16		3Q16			2Q16		1Q16		4Q15			3Q16						4Q15						2016		2015			2015
													$			%			$			%								$			%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$	1,240	$	1,246		$	1,224	$	1,216	$	1,201		($	6	)		—	%	$	39			3	%	$	1,216	$	1,195		$	21			2	%
Charge-offs:
Commercial		26		33			7		13		4			(7	)		(21	)		22			NM			79		36			43			119
Retail		126		112			106		113		120			14			13			6			5			457		444			13			3
Total charge-offs		152		145			113		126		124			7			5			28			23			536		480			56			12
Recoveries:
Commercial		10		14			5		4		7			(4	)		(29	)		3			43			33		49			(16	)		(33	)
Retail		38		48			43		39		40			(10	)		(21	)		(2	)		(5	)		168		147			21			14
Total recoveries		48		62			48		43		47			(14	)		(23	)		1			2			201		196			5			3
Net charge-offs		104		83			65		83		77			21			25			27			35			335		284			51			18
Provision for loan and lease losses:
Commercial		24		(2	)		45		46		18			26			NM			6			33			113		39			74			190
Retail		76		79			42		45		74			(3	)		(4	)		2			3			242		266			(24	)		(9	)
Total provision for loan and lease losses		100		77			87		91		92			23			30			8			9			355		305			50			16
Allowance for loan and lease losses - ending	$	1,236	$	1,240		$	1,246	$	1,224	$	1,216		($	4	)		—	%	$	20			2	%	$	1,236	$	1,216		$	20			2	%
Reserve for unfunded lending commitments - beginning	$	70	$	61		$	58	$	58	$	59		$	9			15	%	$	11			19	%	$	58	$	61		($	3	)		(5	%)
Provision for unfunded lending commitments		2		9			3		—		(1	)		(7	)		(78	)		3			NM			14		(3	)		17			NM
Reserve for unfunded lending commitments - ending	$	72	$	70		$	61	$	58	$	58		$	2			3	%	$	14			24	%	$	72	$	58		$	14			24	%
Total allowance for credit losses - ending	$	1,308	$	1,310		$	1,307	$	1,282	$	1,274		($	2	)		—	%	$	34			3	%	$	1,308	$	1,274		$	34			3	%

	AS OF										DECEMBER 31, 2016 CHANGE
	Dec 31, 2016		Sept 30, 2016		June 30, 2016		Mar 31, 2016		Dec 31, 2015		Sept 30, 2016						Dec 31, 2015
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	63	$	55	$	52	$	42	$	36	$	8			15	%	$	27			75	%
Formula-based evaluation		672		670		685		649		618		2			—			54			9
Total commercial		735		725		737		691		654		10			1			81			12
Individually evaluated		43		78		79		82		101		(35	)		(45	)		(58	)		(57	)
Formula-based evaluation		530		507		491		509		519		23			5			11			2
Total retail		573		585		570		591		620		(12	)		(2	)		(47	)		(8	)
Total allowance for credit losses	$	1,308	$	1,310	$	1,307	$	1,282	$	1,274	($	2	)		—	%	$	34			3	%

25

CAPITAL AND RATIOS

(dollars in millions, except ratios)

	AS OF																											FULL YEAR
																DECEMBER 31, 2016 CHANGE																2016 Change
	Dec 31, 2016			Sept 30, 2016			June 30, 2016			Mar 31, 2016			Dec 31, 2015			Sept 30, 2016						Dec 31, 2015						2016		2015		2015
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS (preliminary)1
CET1 capital	$	13,822		$	13,763		$	13,768		$	13,570		$	13,389		$	59			—	%	$	433			3	%
Tier 1 capital		14,069			14,010			14,015			13,817			13,636			59			—			433			3
Total capital		17,347			17,290			17,823			17,587			17,505			57			—			(158	)		(1	)
Risk-weighted assets		123,857			121,612			119,492			116,591			114,084			2,245			2			9,773			9
Adjusted average assets2		141,677			138,425			136,301			132,951			130,455			3,252			2			11,222			9
CET1 capital ratio		11.2	%		11.3	%		11.5	%		11.6	%		11.7	%
Tier 1 capital ratio		11.4			11.5			11.7			11.9			12.0
Total capital ratio		14.0			14.2			14.9			15.1			15.3
Tier 1 leverage ratio		9.9			10.1			10.3			10.4			10.5
Pro forma Basel III fully phased-in common equity tier 1 capital ratio		11.1			11.3			11.5			11.6			11.7
TANGIBLE COMMON EQUITY (period-end):
Common stockholders’ equity	$	19,499		$	19,934		$	19,979		$	19,718		$	19,399		($	435	)		(2	%)	$	100			1	%	$	19,499	$	19,399	$	100			1	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		1			1			2			3			3			—			—			(2	)		(67	)		1		3		(2	)		(67	)
Add: Deferred tax liabilities3		532			519			507			494			480			13			3			52			11			532		480		52			11
Total tangible common equity	$	13,154		$	13,576		$	13,608		$	13,333		$	13,000		($	422	)		(3	%)	$	154			1	%	$	13,154	$	13,000	$	154			1	%
TANGIBLE COMMON EQUITY (average):
Common stockholders’ equity	$	19,645		$	19,810		$	19,768		$	19,567		$	19,359		($	165	)		(1	%)	$	286			1	%	$	19,698	$	19,354	$	344			2	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		1			1			2			3			3			—			—			(2	)		(67	)		2		4		(2	)		(50	)
Add: Deferred tax liabilities3		523			509			496			481			468			14			3			55			12			502		445		57			13
Total tangible common equity	$	13,291		$	13,442		$	13,386		$	13,169		$	12,948		($	151	)		(1	%)	$	343			3	%	$	13,322	$	12,919	$	403			3	%
INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876	$	6,876	$	—			—	%
Other intangible assets		1			1			2			3			3			—			—			(2	)		(67	)		1		3		(2	)		(67	)
Total intangible assets	$	6,877		$	6,877		$	6,878		$	6,879		$	6,879		$	—			—	%	($	2	)		—	%	$	6,877	$	6,879	($	2	)		—	%

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 are prepared using the Basel III standardized transitional approach.

²  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.

³ Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

26

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)

Key Performance Metrics:

Our management team uses certain key performance metrics (KPMs) to gauge our performance and progress over time in achieving our strategic and operational goals and also in comparing our performance against our peers. In connection with our path to becoming an independent public company, we established the following financial targets, in addition to others, as KPMs. These KPMs are utilized by our management in measuring our progress against financial goals and as a tool in helping assess performance for compensation purposes. These KPMs can be largely found in our Registration Statements on Form S-1 and our periodic reports which are filed with the Securities and Exchange Commission, and are supplemented from time to time with additional information in connection with our quarterly earnings releases.

Our key performance metrics include:

Return on average tangible common equity (ROTCE);

Return on average total tangible assets (ROTA);

Efficiency ratio;

Operating leverage; and

Common equity tier 1 capital ratio (Basel III fully phased-in basis).

In establishing goals for these KPMs, we determined that they would be measured on a management-reporting basis, or an operating basis, which we refer to externally as Adjusted results. We believe that these Adjusted results, which exclude restructuring charges, special items and/or notable items, as applicable, provide the best representation of our underlying financial progress toward these goals as they exclude items that our management does not consider indicative of our on-going financial performance. We have consistently shown these metrics on this basis to investors since our initial public offering in September of 2014. Adjusted KPMs are considered non-GAAP financial measures.

Non-GAAP Financial Measures:

This document contains non-GAAP financial measures. The following tables present reconciliations of our non-GAAP measures. These reconciliations exclude restructuring charges, special items and/or notable items, which are 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. Notable items include certain revenue or expense items that may occur in a reporting period which management does not consider indicative of on-going financial performance.

The non-GAAP measures presented in the following tables include reconciliations to the most directly comparable GAAP measures and are: “noninterest income”, “total revenue”, “ noninterest expense”, “pre-provision profit”, “income before income tax expense”, “income tax expense”, “net income”, “net income available to common stockholders”, “other income”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software expense”, “other operating expense”, “net income per average common share”, “return on average common equity” and “return on average total assets”.

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, special items and/or notable 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, special items and/or notable items. We believe this presentation also increases comparability of period-to-period results.

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.

27

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																						FULL YEAR
													4Q16 Change																	2016 Change
		4Q16		3Q16			2Q16		1Q16		4Q15		3Q16						4Q15					2016			2015			2015
													$			%			$		%									$			%
Noninterest income, adjusted:
Noninterest income (GAAP)		$	377	$	435		$	355	$	330	$	362	($	58	)		(13	%)	$	15		4	%	$	1,497		$	1,422		$	75			5	%
Less: Special items			—		—			—		—		—		—			—			—		—			—			—			—			—
Less: Notable items			—		67			—		—		—		(67	)		(100	)		—		—			67			—			67			100
Noninterest income, adjusted (non-GAAP)		$	377	$	368		$	355	$	330	$	362	$	9			2	%	$	15		4	%	$	1,430		$	1,422		$	8			1	%
Total revenue, adjusted:
Total revenue (GAAP)	A	$	1,363	$	1,380		$	1,278	$	1,234	$	1,232	($	17	)		(1	%)	$	131		11	%	$	5,255		$	4,824		$	431			9	%
Less: Special items			—		—			—		—		—		—			—			—		—			—			—			—			—
Less: Notable items			—		67			—		—		—		(67	)		(100	)		—		—			67			—			67			100
Total revenue, adjusted (non-GAAP)	B	$	1,363	$	1,313		$	1,278	$	1,234	$	1,232	$	50			4	%	$	131		11	%	$	5,188		$	4,824		$	364			8	%
Noninterest expense, adjusted:
Noninterest expense (GAAP)	C	$	847	$	867		$	827	$	811	$	810	($	20	)		(2	%)	$	37		5	%	$	3,352		$	3,259		$	93			3	%
Less: Restructuring charges and special items			—		—			—		—		—		—			—			—		—			—			50			(50	)		(100	)
Less: Notable items			—		36			—		—		—		(36	)		(100	)		—		—			36			—			36			100
Noninterest expense, adjusted (non-GAAP)	D	$	847	$	831		$	827	$	811	$	810	$	16			2	%	$	37		5	%	$	3,316		$	3,209		$	107			3	%
Pre-provision profit, adjusted:
Total revenue, adjusted (non-GAAP)	B	$	1,363	$	1,313		$	1,278	$	1,234	$	1,232	$	50			4	%	$	131		11	%	$	5,188		$	4,824		$	364			8	%
Less: Noninterest expense, adjusted (non-GAAP)	D		847		831			827		811		810		16			2			37		5			3,316			3,209			107			3
Pre-provision profit, adjusted (non-GAAP)		$	516	$	482		$	451	$	423	$	422	$	34			7	%	$	94		22	%	$	1,872		$	1,615		$	257			16	%
Income before income tax expense, adjusted:
Income before income tax expense (GAAP)		$	414	$	427		$	361	$	332	$	331	($	13	)		(3	%)	$	83		25	%	$	1,534		$	1,263		$	271			21	%
Less: Income before income tax expense (benefit) related to restructuring charges and special items			—		—			—		—		—		—			—			—		—			—			(50	)		50			100
Less: Income before income tax expense (benefit) related to notable items			—		31			—		—		—		(31	)		(100	)		—		—			31			—			31			100
Income before income tax expense, adjusted (non-GAAP)		$	414	$	396		$	361	$	332	$	331	$	18			5	%	$	83		25	%	$	1,503		$	1,313		$	190			14	%
Income tax expense, adjusted:
Income tax expense (GAAP)		$	132	$	130		$	118	$	109	$	110	$	2			2	%	$	22		20	%	$	489		$	423		$	66			16	%
Less: Income tax expense (benefit) related to restructuring charges and special items			—		—			—		—		—		—			—			—		—			—			(19	)		19			100
Less: Income tax expense (benefit) related to notable items			—		12			—		—		—		(12	)		(100	)		—		—			12			—			12			100
Income tax expense, adjusted (non-GAAP)		$	132	$	118		$	118	$	109	$	110	$	14			12	%	$	22		20	%	$	477		$	442		$	35			8	%
Net income, adjusted:
Net income (GAAP)	E	$	282	$	297		$	243	$	223	$	221	($	15	)		(5	%)	$	61		28	%	$	1,045		$	840		$	205			24	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		—			—		—		—		—			—			—		—			—			31			(31	)		(100	)
Add: Notable items, net of income tax expense (benefit)			—		(19	)		—		—		—		19			100			—		—			(19	)		—			(19	)		(100	)
Net income, adjusted (non-GAAP)	F	$	282	$	278		$	243	$	223	$	221	$	4			1	%	$	61		28	%	$	1,026		$	871		$	155			18	%
Net income available to common stockholders, adjusted:
Net income available to common stockholders (GAAP)	G	$	282	$	290		$	243	$	216	$	221	($	8	)		(3	%)	$	61		28	%	$	1,031		$	833		$	198			24	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		—			—		—		—		—			—			—		—			—			31			(31	)		(100	)
Add: Notable items, net of income tax expense (benefit)			—		(19	)		—		—		—		19			100			—		—			(19	)		—			(19	)		(100	)
Net income available to common stockholders, adjusted (non-GAAP)	H	$	282	$	271		$	243	$	216	$	221	$	11			4	%	$	61		28	%	$	1,012		$	864		$	148			17	%

28

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																											FULL YEAR
																	4Q16 Change																		2016 Change
		4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																	$/bps			%			$/bps			%									$/bps			%
Operating leverage:
Total revenue (GAAP)	A	$	1,363		$	1,380		$	1,278		$	1,234		$	1,232		($	17	)		(1.23	%)	$	131			10.63	%	$	5,255		$	4,824		$	431			8.93	%
Less: Noninterest expense (GAAP)	C		847			867			827			811			810			(20	)		(2.31	)		37			4.57			3,352			3,259			93			2.85
Operating leverage																					1.08	%					6.06	%											6.08	%
Operating leverage, adjusted:
Total revenue, adjusted (non-GAAP)	B	$	1,363		$	1,313		$	1,278		$	1,234		$	1,232		$	50			3.81	%	$	131			10.63	%	$	5,188		$	4,824		$	364			7.55	%
Less: Noninterest expense, adjusted (non-GAAP)	D		847			831			827			811			810			16			1.93			37			4.57			3,316			3,209			107			3.33
Operating leverage, adjusted (non-GAAP)																					1.88	%					6.06	%											4.22	%
Efficiency ratio and efficiency ratio, adjusted:
Efficiency ratio	C/A		62.18	%		62.88	%		64.71	%		65.66	%		65.76	%		(70	) bps					(358	) bps					63.80	%		67.56	%		(376	) bps
Efficiency ratio, adjusted (non-GAAP)	D/B		62.18			63.31			64.71			65.66			65.76			(113	) bps					(358	) bps					63.92			66.52			(260	) bps
Return on average common equity and return on average common equity, adjusted:
Average common equity (GAAP)	I	$	19,645		$	19,810		$	19,768		$	19,567		$	19,359		($	165	)		(1	%)	$	286			1	%	$	19,698		$	19,354		$	344			2	%
Return on average common equity	G/I		5.70	%		5.82	%		4.94	%		4.45	%		4.51	%		(12	) bps					119	bps					5.23	%		4.30	%		93	bps
Return on average common equity, adjusted (non-GAAP)	H/I		5.70			5.44			4.94			4.45			4.51			26	bps					119	bps					5.14			4.46			68	bps
Return on average tangible common equity and return on average tangible common equity, adjusted:
Average common equity (GAAP)	I	$	19,645		$	19,810		$	19,768		$	19,567		$	19,359		($	165	)		(1	%)	$	286			1	%	$	19,698		$	19,354		$	344			2	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			1			1			2			3			3			—			—			(2	)		(67	)		2			4			(2	)		(50	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			523			509			496			481			468			14			3			55			12			502			445			57			13
Average tangible common equity	J	$	13,291		$	13,442		$	13,386		$	13,169		$	12,948		($	151	)		(1	%)	$	343			3	%	$	13,322		$	12,919		$	403			3	%
Return on average tangible common equity	G/J		8.43	%		8.58	%		7.30	%		6.61	%		6.75	%		(15	) bps					168	bps					7.74	%		6.45	%		129	bps
Return on average tangible common equity, adjusted (non-GAAP)	H/J		8.43			8.02			7.30			6.61			6.75			41	bps					168	bps					7.60			6.69			91	bps
Return on average total assets and return on average total assets, adjusted:
Average total assets (GAAP)	K	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Return on average total assets	E/K		0.76	%		0.82	%		0.69	%		0.65	%		0.64	%		(6	) bps					12	bps					0.73	%		0.62	%		11	bps
Return on average total assets, adjusted (non-GAAP)	F/K		0.76			0.77			0.69			0.65			0.64			(1	) bps					12	bps					0.72			0.64			8	bps
Return on average total tangible assets and return on average total tangible assets, adjusted:
Average total assets (GAAP)	K	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			1			1			2			3			3			—			—			(2	)		(67	)		2			4			(2	)		(50	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			523			509			496			481			468			14			3			55			12			502			445			57			13
Average tangible assets	L	$	140,961		$	138,031		$	135,797		$	132,382		$	129,887		$	2,930			2	%	$	11,074			9	%	$	136,807		$	128,635		$	8,172			6	%
Return on average total tangible assets	E/L		0.79	%		0.86	%		0.72	%		0.68	%		0.67	%		(7	) bps					12	bps					0.76	%		0.65	%		11	bps
Return on average total tangible assets, adjusted (non-GAAP)	F/L		0.79			0.80			0.72			0.68			0.67			(1	) bps					12	bps					0.75			0.68			7	bps

29

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)

		QUARTERLY TRENDS																											FULL YEAR
																	4Q16 Change																2016 Change
		4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016		2015		2015
																	$/bps			%			$/bps			%							$/bps			%
Tangible book value per common share:
Common shares - at end of period (GAAP)	M		511,954,871			518,148,345			529,094,976			528,933,727			527,774,428			(6,193,474	)		(1	%)		(15,819,557	)		(3	%)		511,954,871		527,774,428		(15,819,557	)		(3	%)
Common stockholders’ equity (GAAP)		$	19,499		$	19,934		$	19,979		$	19,718		$	19,399		($	435	)		(2	)	$	100			1		$	19,499	$	19,399	$	100			1
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets (GAAP)			1			1			2			3			3			—			—			(2	)		(67	)		1		3		(2	)		(67	)
Add: Deferred tax liabilities related to goodwill (GAAP)			532			519			507			494			480			13			3			52			11			532		480		52			11
Tangible common equity	N	$	13,154		$	13,576		$	13,608		$	13,333		$	13,000		($	422	)		(3	%)	$	154			1	%	$	13,154	$	13,000	$	154			1	%
Tangible book value per common share	N/M	$	25.69		$	26.20		$	25.72		$	25.21		$	24.63		($	0.51	)		(2	%)	$	0.00			4	%	$	25.69	$	24.63	$	1.06			4	%
Net income per average common share - basic and diluted, adjusted:
Average common shares outstanding - basic (GAAP)	O		512,015,920			519,458,976			528,968,330			528,070,648			527,648,630			(7,443,056	)		(1	%)		(15,632,710	)		(3	%)		522,093,545		535,599,731		(13,506,186	)		(3	%)
Average common shares outstanding - diluted (GAAP)	P		513,897,085			521,122,466			530,365,203			530,446,188			530,275,673			(7,225,381	)		(1	)		(16,378,588	)		(3	)		523,930,718		538,220,898		(14,290,180	)		(3	)
Net income available to common stockholders (GAAP)	G	$	282		$	290		$	243		$	216		$	221		($	8	)		(3	)	$	61			28		$	1,031	$	833	$	198			24
Net income per average common share - basic (GAAP)	G/O		0.55			0.56			0.46			0.41			0.42			(0.01	)		(2	)		0.13			31			1.97		1.55		0.42			27
Net income per average common share - diluted (GAAP)	G/P		0.55			0.56			0.46			0.41			0.42			(0.01	)		(2	)		0.13			31			1.97		1.55		0.42			27
Net income available to common stockholders, adjusted (non-GAAP)	H		282			271			243			216			221			11			4			61			28			1,012		864		148			17
Net income per average common share - basic, adjusted (non-GAAP)	H/O		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.94		1.61		0.33			20
Net income per average common share - diluted, adjusted (non-GAAP)	H/P		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.93		1.61		0.32			20
Pro forma Basel III fully phased-in common equity tier 1 capital ratio1:
Common equity tier 1 (regulatory)		$	13,822		$	13,763		$	13,768		$	13,570		$	13,389
Less: Change in DTA and other threshold deductions (GAAP)			—			—			1			1			2
Pro forma Basel III fully phased-in common equity tier 1	Q	$	13,822		$	13,763		$	13,767		$	13,569		$	13,387
Risk-weighted assets (regulatory general risk weight approach)		$	123,857		$	121,612		$	119,492		$	116,591		$	114,084
Add: Net change in credit and other risk-weighted assets (regulatory)			244			228			228			232			244
Pro forma Basel III standardized approach risk-weighted assets	R	$	124,101		$	121,840		$	119,720		$	116,823		$	114,328
Pro forma Basel III fully phased-in common equity tier 1 capital ratio1	Q/R		11.1	%		11.3	%		11.5	%		11.6	%		11.7	%

¹ Basel III ratios assume certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2019, are fully phased-in. Ratios also reflect the required US Standardized methodology for calculating RWAs, effective January 1, 2015.

30

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)

	QUARTERLY TRENDS																							FULL YEAR
												4Q16 Change																2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15			3Q16						4Q15						2016		2015		2015
												$			%			$			%							$			%
Other income, adjusted
Other income (GAAP)	$	28	$	90	$	18	$	16	$	23		($	62	)		(69	%)	$	5			22	%	$	152	$	94	$	58			62	%
Less: Special items		—		—		—		—		—			—			—			—			—			—		—		—			—
Less: Notable items		—		67		—		—		—			(67	)		(100	)		—			—			67		—		67			100
Other income, adjusted (non-GAAP)	$	28	$	23	$	18	$	16	$	23		$	5			22	%	$	5			22	%	$	85	$	94	($	9	)		(10	%)
Salaries and employee benefits, adjusted:
Salaries and employee benefits (GAAP)	$	420	$	432	$	432	$	425	$	402		($	12	)		(3	%)	$	18			4	%	$	1,709	$	1,636	$	73			4	%
Less: Restructuring charges and special items		—		—		—		—		(2	)		—			—			2			100			—		3		(3	)		(100	)
Less: Notable items		—		11		—		—		—			(11	)		(100	)		—			—			11		—		11			100
Salaries and employee benefits, adjusted (non-GAAP)	$	420	$	421	$	432	$	425	$	404		($	1	)		—	%	$	16			4	%	$	1,698	$	1,633	$	65			4	%
Outside services, adjusted:
Outside services (GAAP)	$	98	$	102	$	86	$	91	$	104		($	4	)		(4	%)	($	6	)		(6	%)	$	377	$	371	$	6			2	%
Less: Restructuring charges and special items		—		—		—		—		2			—			—			(2	)		(100	)		—		26		(26	)		(100	)
Less: Notable items		—		8		—		—		—			(8	)		(100	)		—			—			8		—		8			100
Outside services, adjusted (non-GAAP)	$	98	$	94	$	86	$	91	$	102		$	4			4	%	($	4	)		(4	%)	$	369	$	345	$	24			7	%
Occupancy, adjusted:
Occupancy (GAAP)	$	77	$	78	$	76	$	76	$	74		($	1	)		(1	%)	$	3			4	%	$	307	$	319	($	12	)		(4	%)
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		17		(17	)		(100	)
Less: Notable items		—		—		—		—		—			—			—			—			—			—		—		—			—
Occupancy, adjusted (non-GAAP)	$	77	$	78	$	76	$	76	$	74		($	1	)		(1	%)	$	3			4	%	$	307	$	302	$	5			2	%
Equipment expense, adjusted:
Equipment expense (GAAP)	$	69	$	65	$	64	$	65	$	67		$	4			6	%	$	2			3	%	$	263	$	257	$	6			2	%
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		1		(1	)		(100	)
Less: Notable items		—		—		—		—		—			—			—			—			—			—		—		—			—
Equipment expense, adjusted (non-GAAP)	$	69	$	65	$	64	$	65	$	67		$	4			6	%	$	2			3	%	$	263	$	256	$	7			3	%
Amortization of software, adjusted:
Amortization of software (GAAP)	$	44	$	46	$	41	$	39	$	38		($	2	)		(4	%)	$	6			16	%	$	170	$	146	$	24			16	%
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		—		—			—
Less: Notable items		—		3		—		—		—			(3	)		(100	)		—			—			3		—		3			100
Amortization of software, adjusted (non-GAAP)	$	44	$	43	$	41	$	39	$	38		$	1			2	%	$	6			16	%	$	167	$	146	$	21			14	%
Other operating expense, adjusted:
Other operating expense (GAAP)	$	139	$	144	$	128	$	115	$	125		($	5	)		(3	%)	$	14			11	%	$	526	$	530	($	4	)		(1	%)
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		3		(3	)		(100	)
Less: Notable items		—		14		—		—		—			(14	)		(100	)		—			—			14		—		14			100
Other operating expense, adjusted (non-GAAP)	$	139	$	130	$	128	$	115	$	125		$	9			7	%	$	14			11	%	$	512	$	527	($	15	)		(3	%)
Restructuring charges, special expense items and notable expense items include:
Restructuring charges	$	—	$	—	$	—	$	—	$	—		$	—			—	%	$	—			—	%	$	—	$	26	($	26	)		(100	)%
Special items		—		—		—		—		—			—			—			—			—			—		24		(24	)		(100	)
Notable items		—		36		—		—		—			(36	)		(100	)		—			—			36		—		36			100
Restructuring charges, special expense items and notable expense items	$	—	$	36	$	—	$	—	$	—		($	36	)		(100	%)	$	—			—	%	$	36	$	50	($	14	)		(28	%)

31

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(dollars in millions)

		THREE MONTHS ENDED DEC 31,											THREE MONTHS ENDED SEPT 30,												THREE MONTHS ENDED JUNE 30,
		2016											2016												2016
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A	$	92		$	172		$	18	$	282		$	92		$	162		$	43		$	297		$	90		$	164		($	11	)	$	243
Less: Preferred stock dividends			—			—			—		—			—			—			7			7			—			—			—			—
Net income available to common stockholders	B	$	92		$	172		$	18	$	282		$	92		$	162		$	36		$	290		$	90		$	164		($	11	)	$	243
Return on average tangible common equity:
Average common equity (GAAP)		$	5,275		$	5,278		$	9,092	$	19,645		$	5,190		$	5,172		$	9,448		$	19,810		$	5,110		$	5,040		$	9,618		$	19,768
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			1		1			—			—			1			1			—			—			2			2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			523		523			—			—			509			509			—			—			496			496
Average tangible common equity	C	$	5,275		$	5,278		$	2,738	$	13,291		$	5,190		$	5,172		$	3,080		$	13,442		$	5,110		$	5,040		$	3,236		$	13,386
Return on average tangible common equity	B/C		6.97	%		12.94	%		NM		8.43	%		7.04	%		12.50	%		NM			8.58	%		7.09	%		13.04	%		NM			7.30	%
Return on average total tangible assets:
Average total assets (GAAP)		$	58,066		$	48,024		$	41,225	$	147,315		$	56,689		$	47,902		$	39,808		$	144,399		$	55,660		$	47,388		$	39,131		$	142,179
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			1		1			—			—			1			1			—			—			2			2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			523		523			—			—			509			509			—			—			496			496
Average tangible assets	D	$	58,066		$	48,024		$	34,871	$	140,961		$	56,689		$	47,902		$	33,440		$	138,031		$	55,660		$	47,388		$	32,749		$	135,797
Return on average total tangible assets	A/D		0.63	%		1.42	%		NM		0.79	%		0.64	%		1.35	%		NM			0.86	%		0.65	%		1.39	%		NM			0.72	%
Efficiency ratio:
Noninterest expense (GAAP)	E	$	649		$	187		$	11	$	847		$	650		$	181		$	36		$	867		$	632		$	186		$	9		$	827
Net interest income (GAAP)			639			347			—		986			621			327			(3	)		945			602			314			7			923
Noninterest income (GAAP)			227			122			28		377			229			123			83			435			219			122			14			355
Total revenue (GAAP)	F	$	866		$	469		$	28	$	1,363		$	850		$	450		$	80		$	1,380		$	821		$	436		$	21		$	1,278
Efficiency ratio	E/F		74.90	%		39.83	%		NM		62.18	%		76.46	%		40.21	%		NM			62.88	%		76.98	%		42.88	%		NM			64.71	%

32

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)

		THREE MONTHS ENDED MAR 31,											THREE MONTHS ENDED DEC 31,
		2016											2015
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A	$	71		$	133		$	19	$	223		$	67		$	152		$	2	$	221
Less: Preferred stock dividends			—			—			7		7			—			—			—		—
Net income available to common stockholders	B	$	71		$	133		$	12	$	216		$	67		$	152		$	2	$	221
Return on average tangible common equity:
Average common equity (GAAP)		$	5,089		$	4,790		$	9,688	$	19,567		$	4,831		$	4,787		$	9,741	$	19,359
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			3		3			—			—			3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			481		481			—			—			468		468
Average tangible common equity	C	$	5,089		$	4,790		$	3,290	$	13,169		$	4,831		$	4,787		$	3,330	$	12,948
Return on average tangible common equity	B/C		5.59	%		11.19	%		NM		6.61	%		5.50	%		12.57	%		NM		6.75	%
Return on average total tangible assets:
Average total assets (GAAP)		$	55,116		$	45,304		$	38,360	$	138,780		$	54,065		$	43,835		$	38,398	$	136,298
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			3		3			—			—			3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			481		481			—			—			468		468
Average tangible assets	D	$	55,116		$	45,304		$	31,962	$	132,382		$	54,065		$	43,835		$	31,987	$	129,887
Return on average total tangible assets	A/D		0.52	%		1.18	%		NM		0.68	%		0.49	%		1.37	%		NM		0.67	%
Efficiency ratio:
Noninterest expense (GAAP)	E	$	616		$	187		$	8	$	811		$	624		$	180		$	6	$	810
Net interest income (GAAP)			581			300			23		904			565			301			4		870
Noninterest income (GAAP)			208			99			23		330			226			107			29		362
Total revenue (GAAP)	F	$	789		$	399		$	46	$	1,234		$	791		$	408		$	33	$	1,232
Efficiency ratio	E/F		78.08	%		46.74	%		NM		65.66	%		78.85	%		44.02	%		NM		65.76	%

33

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)

		FULL YEAR
		2016											2015
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A	$	345		$	631		$	69	$	1,045		$	262		$	579		($	1	)	$	840
Less: Preferred stock dividends			—			—			14		14			—			—			7			7
Net income available to common stockholders	B	$	345		$	631		$	55	$	1,031		$	262		$	579		($	8	)	$	833
Return on average tangible common equity:
Average common equity (GAAP)		$	5,166		$	5,071		$	9,461	$	19,698		$	4,739		$	4,666		$	9,949		$	19,354
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			2		2			—			—			4			4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			502		502			—			—			445			445
Average tangible common equity	C	$	5,166		$	5,071		$	3,085	$	13,322		$	4,739		$	4,666		$	3,514		$	12,919
Return on average tangible common equity	B/C		6.68	%		12.44	%		NM		7.74	%		5.53	%		12.41	%		NM			6.45	%
Return on average total tangible assets:
Average total assets (GAAP)		$	56,388		$	47,159		$	39,636	$	143,183		$	52,848		$	42,800		$	39,422		$	135,070
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			2		2			—			—			4			4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			502		502			—			—			445			445
Average tangible assets	D	$	56,388		$	47,159		$	33,260	$	136,807		$	52,848		$	42,800		$	32,987		$	128,635
Return on average total tangible assets	A/D		0.61	%		1.34	%		NM		0.76	%		0.50	%		1.35	%		NM			0.65	%
Efficiency ratio:
Noninterest expense (GAAP)	E	$	2,547		$	741		$	64	$	3,352		$	2,456		$	709		$	94		$	3,259
Net interest income (GAAP)			2,443			1,288			27		3,758			2,198			1,162			42			3,402
Noninterest income (GAAP)			883			466			148		1,497			910			415			97			1,422
Total revenue (GAAP)	F	$	3,326		$	1,754		$	175	$	5,255		$	3,108		$	1,577		$	139		$	4,824
Efficiency ratio	E/F		76.57	%		42.26	%		NM		63.80	%		79.02	%		44.94	%		NM			67.56	%

34