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): April 27, 2020

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value per share	CFG	New York Stock Exchange
Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non- Cumulative Perpetual Preferred Stock, Series D	CFG PrD	New York Stock Exchange
Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E	CFG PrE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the Exchange Act (17 CFR 240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 8.01   Other Events.

On April 17, 2020, Citizens Financial Group, Inc. (“CFG” or “Citizens”) reported first quarter net income of $34 million, compared with $439 million in first quarter 2019, with earnings per share of $0.03, compared with $0.92 per share in first quarter 2019. First quarter 2020 results reflect a net $25 million, or $(0.06) per share, after-tax reduction from notable items compared with a net $4 million, or $(0.01) per share, in first quarter 2019 and a net $4 million, or $(0.01) per share, in fourth quarter 2019. First quarter 2020 Return on Average Tangible Common Equity* (“ROTCE”) of 0.4% compares with 13.0% in first quarter 2019.

On an Underlying basis, which excludes notable items, first quarter 2020 net income available to common stockholders of $37 million compares with $428 million in first quarter 2019 and $431 million in fourth quarter 2019. Underlying EPS of $0.09 per share compares with $0.93 in first quarter 2019 and $0.99 in fourth quarter 2019. Underlying first quarter 2020 ROTCE of 1.1% compares with 13.1% in first quarter 2019 and 12.5% in fourth quarter 2019. Tangible book value per common share of $31.97 increased 8% from first quarter 2019 and remained relatively stable with fourth quarter 2019.

In first quarter 2020, Citizens adopted the Current Expected Credit Loss (“CECL”) accounting standard and recorded first quarter 2020 provision for credit losses of $600 million pre-tax, or $1.10 per share after-tax, including a reserve build under CECL of $463 million pre-tax, or $0.85 per share after-tax, tied to COVID-19 impacts. On an Underlying basis and before the $463 million COVID-19 CECL-related reserve build, first quarter 2020 net income available to common stockholders reflecting net charge-offs totaled $402 million, EPS was $0.94 per share, and ROTCE was 12.0%.

Citizens saw spot loan growth of $8.4 billion, or 7% in first quarter 2020 compared with fourth quarter 2019, including $7.2 billion of commercial client line draws under revolving credit facilities. We remain strongly capitalized and maintain ample liquidity to assist companies in navigating these challenging times. At March 31, 2020, CET1 capital was 9.4%, spot LDR was 95.5%, and LCR was fully compliant. Citizens has worked with borrowers on forbearance, and as of April 15, 2020 had seventy thousand consumers in forbearance and was working proactively with commercial customers seeking flexibility on loan terms and conditions. In addition, Citizens has been active in securing financing through the U.S. Small Business Administration Payment Protection Program (“PPP”) for its small business customers.

*References in this report to “Underlying” results exclude notable items and are Non-GAAP Financial Measures. Where there is a reference to “Underlying” results in a paragraph, all measures that follow these references are on the same basis. Additional information regarding the impact of notable items and Acquisitions on our results is described in this report. Please see the end of this report for important information on our use of Key Performance Metrics and Non-GAAP Financial Measures, as applicable, and their reconciliation to GAAP financial measures. References in this report to balance sheet items are on an average basis and loans exclude loans held for sale (“LHFS”) unless otherwise noted. References to net interest margin are on a fully taxable equivalent (“FTE”) basis and all references to earnings per share represent fully diluted per common share. References to consolidated and/or commercial loans, loan growth, nonaccrual loans and allowance for loan losses include leases. The “Company” refers to Citizens. Current reporting-period regulatory capital ratios are preliminary. Select totals may not sum due to rounding.

Citizens also announced that its board of directors declared a second quarter 2020 common stock dividend of $0.39 per share. The dividend is payable on May 13, 2020 to shareholders of record at the close of business on April 29, 2020. The quarterly dividend is 22% higher than the year-ago quarter. In order to ensure capital remains strong to meet further loan demand, the Company will cease stock repurchases through December 31, 2020.

CECL accounting change and regulatory capital impact

As previously announced, the Company’s Day-1 impact of CECL adoption added $451 million to the Allowance for Credit Losses (“ACL”) resulting in an ACL to Loan and Lease Coverage Ratio (“ACLR”) of 1.47%. Subsequently, in first quarter 2020, the Company added $463 million to the ACL. These additions resulted in a March 31, 2020 total ACL of $2.2 billion and an ACLR of 1.73%. For regulatory capital purposes, in connection with the Federal Reserve Board’s final interim rule as of April 3, 2020, 100% of the $451 million Day-1 impact will be deferred over a two-year period ending January 1, 2022, at which time it will be phased in on a pro-rata basis over a three-year period ending January 1, 2025. Additionally, 25% of the $463 million first quarter 2020 reserve build, or $116 million, will be phased in over the same time frame.

First quarter 2020 vs. first quarter 2019

Key highlights

• First quarter highlights include revenue growth of $69 million, or 4%, reflecting stable net interest income and a 16% increase in noninterest income driven by record results in mortgage banking, partially offset by COVID-19 impacts that resulted in lower service charges and fees, card fees, capital markets fees and foreign exchange and interest rate products revenue.

• First quarter 2020 results reflect a net $25 million after-tax reduction, or $(0.06) per share, from notable items compared with a net $4 million after-tax reduction, or $(0.01) per share, in first quarter 2019.

• Results reflect an efficiency ratio of 61.1% and ROTCE of 0.4%; Underlying efficiency ratio of 59.1% and ROTCE of 1.1% reflect the challenging environment presented by COVID-19, in particular the CECL provision impact.

• Provision for credit losses of $600 million includes a $463 million reserve build tied to CECL adoption and the impact of COVID-19 on macroeconomic scenario modeling.

3

• Period-end loan-to-deposit ratio of 95.5% compares with 94.9%.

• Tangible book value per share of $31.97 increased 8%. Fully diluted average common shares outstanding decreased 33.1 million shares, or 7%.

Results

• Total revenue increased $69 million, or 4%, reflecting strength in noninterest income and stable net interest income.

• Net interest income was flat, reflecting 4% growth in interest-earning assets, offset by the impact of the lower rate and challenging yield-curve environment.

• Net interest margin of 3.10% decreased 15 basis points, reflecting the impact of lower interest rates, which was partially offset by improved deposit mix as well as the continued mix shift towards better-returning assets. Interest-bearing deposit costs decreased 33 basis points, reflecting strong pricing discipline.

• Record noninterest income of $497 million increased $69 million, or 16%, driven by record results in mortgage banking given increased origination volumes and higher mortgage servicing rights hedging gains, as well as record trust and investment services fees. Capital markets fees and foreign exchange and interest rate products reflect good underlying business performance, partially offset by COVID-19 impacts. Other income declined from first quarter 2019 levels that included gains related to asset dispositions and efficiency initiatives.

• Noninterest expense increased 8%. Underlying noninterest expense of $979 million increased 5%, reflecting higher salaries and employee benefits and revenue-driven compensation, as well as an increase in outside services and equipment and software expense, partially offset by lower occupancy.

• Provision for credit losses of $600 million includes $463 million associated with COVID-19 and compares with $85 million in first quarter 2019. Higher charge-offs reflect several uncorrelated losses in commercial and the impact of seasoning in retail growth portfolios.

Balance Sheet

• Period-end loan growth of $9.9 billion, or 8%, reflects 14% growth in commercial, which includes the $7.2 billion impact of higher line of credit utilization tied to COVID-19 disruption, and 3% growth in retail.

• Period-end deposit growth of $9.6 billion, or 8%, kept pace with loan growth as most commercial customers left their funds from line draws on deposit with us.

• Average interest-earning assets increased $5.4 billion, or 4%, driven by 3% loan growth, which includes the $1.0 billion average impact of higher commercial line of credit utilization tied to COVID-19 disruption.

• Average deposits increased $6.2 billion, or 5%, reflecting growth in money market accounts, savings, checking with interest and demand deposits, partially offset by a decrease in term deposits.

• The average loan-to-deposits ratio improved to 95.6% from 97.7%; period-end loan-to-deposit ratio of 95.5% compares with 94.9% in first quarter 2019.

• Nonaccrual loans to loans ratio of 0.61% compares with 0.63% as of March 31, 2019.

4

• Allowance coverage of nonaccrual loans of 283% compares with 179% as of March 31, 2019, reflecting the first quarter 2020 implementation of CECL and the significant provision associated with COVID-19.

• Capital remains strong, with a common equity tier 1 (“CET1”) risk-based capital ratio of 9.4% which incorporates an approximately 25 basis point impact tied to higher commercial line of credit utilization.

• Repurchased 7.5 million shares of common stock at a weighted average price of $35.77 in the quarter. Including common dividends, returned $438 million to shareholders.

Year-over-year update on plan execution

Consumer Banking

• Continued balance sheet momentum, with 3% loan growth, or 5% before the impact of on-balance sheet loan sale activity, including continued growth in more attractive risk-adjusted return categories. Funding kept pace, with 3% deposit growth, including 8% growth in demand deposits.

• Record fee income results in mortgage banking and wealth.

• Citizens Access^®, our nationwide digital platform, ended the quarter with deposits of $6.1 billion.

Commercial Banking

• Strong balance sheet performance with 4% loan growth, driven by geographic, product and client-focused expansion strategies, along with 12% deposit growth.

• Continue to benefit from investments in broadening and enhancing our capabilities and the diversification of our fee-based businesses, as we continue to gain market share in key product areas.

Efficiency and strategic initiatives

• The transformational TOP 6 program is on track, with a target of approximately $300-$325 million in pre-tax run-rate benefit by year-end 2021. Some Q2 saves will be deferred until later in the year, to be offset by other expense actions.

• Citizens is continuing to fund its major strategic initiatives, and is considering new opportunities arising from the current environment in an effort to drive higher customer and revenue growth coming out of the crisis.

First quarter 2020 vs. fourth quarter 2019

Key highlights

• First quarter highlights include revenue of $1.7 billion, up 1%, reflecting 1% growth in both net interest income and noninterest income.

• First quarter 2020 results reflect a net $25 million after-tax reduction, or $(0.06) per share, from notable items compared with a net $4 million after-tax reduction, or ($0.01) per share, in fourth quarter 2019.

• Results reflect an efficiency ratio of 61.1%; Underlying efficiency ratio of 59.1% compares with 58.0% in fourth quarter 2019, reflecting broadly stable revenue and a seasonal increase in expenses.

5

• Provision for credit losses of $600 million includes a $463 million reserve build tied to the impact of the COVID-19 macroeconomic scenario given CECL adoption.

• ROTCE of 0.4% reflects higher provisions under CECL associated with COVID-19 impacts. Underlying ROTCE of 1.1% compares with 12.5% in fourth quarter 2019.

• Tangible book value per common share of $31.97 remained relatively stable. Fully diluted average common shares outstanding decreased 7.1 million, or 2%.

Results

• Total revenue of $1.7 billion increased 1%, reflecting growth in net interest income and record noninterest income.

• Net interest income of $1.2 billion increased 1%, as the benefit of interest-earning asset growth and improved mix was partially offset by the impact of lower interest rates and day count.

• Net interest margin of 3.10% increased 4 basis points, as improved loan spreads and mix, given elevated LIBOR rates, as well as disciplined deposit pricing and mix more than offset the negative impact of lower interest rates. Interest-bearing deposit costs decreased 15 basis points.

• Record noninterest income of $497 million increased 1% reflecting record mortgage banking fees and trust and investment services fees. Capital markets fees and foreign exchange and interest rate products reflect solid underlying performance, partially offset by a $21 million mark to market loss on loan/bond trading assets and a $15 million decrease in CVA adjustment.

• Noninterest expense of $1.0 billion increased $26 million, or 3%, including the impact of notable items. On an Underlying basis, noninterest expense of $979 million increased $30 million, or 3%, largely reflecting the impact of seasonally higher payroll taxes associated with incentive compensation, along with higher revenue-based compensation tied to mortgage originations. Results also reflect increased equipment and software expense, partially offset by lower other operating expense and outside services.

• Provision for credit losses of $600 million reflects a $463 million reserve build associated with COVID-19.

Balance sheet

• Average interest-earning assets increased $2.0 billion, or 1%, driven by 1.8% loan growth, and included the $1.0 billion impact of higher commercial line of credit utilization. Average loan growth also reflects a $922 million average impact tied to the sale of $1.6 billion of on-balance sheet residential mortgage loans in connection with balance sheet optimization strategies. Average loans increased 2.6% before the impact of this sales activity.

• Period-end loan growth of $8.4 billion, or 7%, was driven by a 15% increase in commercial, which included a $7.2 billion impact from higher line of credit utilization.

• Average deposits were relatively stable, as growth in checking with interest, money market accounts and savings was largely offset by a decrease in term and demand deposits.

• Period-end deposit growth of $8.2 billion, or 7%, kept pace with loan growth.

• Average loan-to-deposit ratio of 95.6% compares with 94.6% in fourth quarter 2019; period-end loan-to-deposit ratio of 95.5% compares to 95.0% in fourth quarter 2019.

• Nonaccrual loans to loan ratio of 0.61% compares to 0.59% as of December 31, 2019.

• Allowance coverage of nonaccrual loans of 283% reflects the first quarter 2020 implementation of CECL and the first quarter provision impact associated with COVID-19, and compares with 184% as of December 31, 2019.

6

Earnings highlights:

	Quarterly Trends
										1Q20 change from
($s in millions, except per share data)	1Q20			4Q19			1Q19			4Q19						1Q19
Earnings										$/bps			%			$/bps			%
Net interest income	$	1,160		$	1,143		$	1,160		$	17			1	%	$	—			—	%
Noninterest income		497			494			428			3			1			69			16
Total revenue		1,657			1,637			1,588			20			1			69			4
Noninterest expense		1,012			986			937			26			3			75			8
Pre-provision profit		645			651			651			(6	)		(1	)		(6	)		(1	)
Provision for credit losses		600			110			85			490				NM		515				NM
Net income		34			450			439			(416	)		(92	)		(405	)		(92	)
Preferred dividends		22			23			15			(1	)		(4	)		7			47
Net income available to common stockholders	$	12		$	427		$	424		$	(415	)		(97	)%	$	(412	)		(97	)%
After-tax notable Items		25			4			4			21				NM		21				NM
Underlying net income	$	59		$	454		$	443		$	(395	)		(87	)%	$	(384	)		(87	)%
Underlying net income available to common stockholders	$	37		$	431		$	428		$	(394	)		(91	)%	$	(391	)		(91	)%
Average common shares outstanding
Basic (in millions)		427.7			434.7			460.7			(7.0	)		(2	)		(33.0	)		(7	)
Diluted (in millions)		429.4			436.5			462.5			(7.1	)		(2	)		(33.1	)		(7	)
Diluted earnings per share	$	0.03		$	0.98		$	0.92		$	(0.95	)		(97	)%	$	(0.89	)		(97	)%
Underlying diluted earnings per share	$	0.09		$	0.99		$	0.93		$	(0.90	)		(91	)%	$	(0.84	)		(90	)%
Key performance metrics*
Net interest margin		3.09	%		3.04	%		3.23	%		5	bps					(14	) bps
Net interest margin, FTE		3.10			3.06			3.25			4						(15	)
Effective income tax rate		24.1			16.8			22.4			737						171
Efficiency ratio		61			60			59			82						210
Underlying efficiency ratio		59			58			59			106						41
Return on average common equity		0.2			8.3			8.6			(806	)					(838	)
Return on average tangible common equity		0.4			12.4			13.0			(1,203	)					(1,264	)
Underlying return on average tangible common equity		1.1			12.5			13.1			(1,139	)					(1,202	)
Return on average total assets		0.08			1.08			1.11			(100	)					(103	)
Underlying return on average total tangible assets		0.15	%		1.14	%		1.17	%		(99	) bps					(102	) bps
Capital adequacy(1,2)
Common equity tier 1 capital ratio		9.4	%		10.0	%		10.5	%
Total capital ratio		12.5			13.0			13.4
Tier 1 leverage ratio		9.6			10.0			10.0
Allowance for credit losses to loans and leases		1.73			1.09			1.13			64	bps					60	bps
Asset quality(2)
Nonaccrual loans and leases to loans and leases		0.61	%		0.59	%		0.63	%		2	bps					(2	) bps
Allowance for credit losses to nonaccrual loans and leases		283			184			179			NM						NM
Net charge-offs as a % of average loans and leases		0.46	%		0.41	%		0.31	%		5	bps					15	bps

¹⁾ Current reporting-period regulatory capital ratios are preliminary.

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

7

Notable items:

First quarter 2020 and fourth quarter 2019 results reflect notable items primarily related to TOP 6 transformational and revenue and efficiency initiatives. First quarter 2020 and 2019 results also reflect notable items related to integration costs primarily tied to the August 1, 2018 Franklin American Mortgage Company (“FAMC”) acquisition. Fourth quarter 2019 results also include a tax benefit largely tied to legacy tax matters. These notable items have been excluded from reported results to better reflect Underlying operating results.

Total estimated after-tax FAMC integration costs are expected to be in the $40-$45 million range, with the integration substantially complete by second quarter 2020. Cumulative after-tax integration costs related to FAMC totaled $32 million through the end of first quarter 2020.

Notable items-integration costs	1Q20									4Q19									1Q19									Cumulative after-tax integration costs
($s in millions, except per share data)	Pre-tax			After-tax			EPS			Pre-tax			After-tax			EPS			Pre-tax			After-tax			EPS			FAMC			Other			Total
Noninterest income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(3	)	$	—		$	(3	)
Salaries & benefits	$	—		$	—		$	—		$	—		$	—		$	—		$	(1	)	$	(1	)	$	—		$	(10	)	$	—		$	(10	)
Equipment & software		(1	)		(1	)		—			(1	)		(1	)		—			—			—			—			(2	)		—			(2	)
Outside services		(3	)		(2	)		(0.01	)		(1	)		(1	)		—			(4	)		(3	)		(0.01	)		(13	)		(4	)		(17	)
Occupancy		—			—			—			—			—			—			—			—			—			(1	)		—			(1	)
Other expense		—			—			—			—			—			—			—			—			—			(3	)		—			(3	)
Noninterest expense	$	(4	)	$	(3	)	$	(0.01	)	$	(2	)	$	(2	)	$	—		$	(5	)	$	(4	)	$	(0.01	)	$	(29	)		(4	)	$	(33	)
Total Integration costs	$	(4	)	$	(3	)	$	(0.01	)	$	(2	)	$	(2	)	$	—		$	(5	)	$	(4	)	$	(0.01	)	$	(32	)	$	(4	)	$	(36	)
Other notable items-primarily tax and TOP	1Q20									4Q19									1Q19
($s in millions, except per share data)	Pre-tax			After-tax			EPS			Pre-tax			After-tax			EPS			Pre-tax			After-tax			EPS
Tax notable items	$	—		$	—		$	—		$	—		$	24		$	0.06		$	—		$	—		$	—
Other notable items—TOP & other actions
Salaries & benefits		(10	)		(7	)		(0.02	)		(6	)		(5	)		(0.01	)		—			—			—
Equipment & software		—			—			—			(2	)		(1	)		—			—			—			—
Outside services		(15	)		(12	)		(0.02	)		(19	)		(14	)		(0.03	)		—			—			—
Occupancy		(4	)		(3	)		(0.01	)		(8	)		(6	)		(0.01	)		—			—			—
Noninterest expense	$	(29	)	$	(22	)	$	(0.05	)	$	(35	)	$	(26	)	$	(0.05	)	$	—		$	—		$	—
Total other notable items	$	(29	)	$	(22	)	$	(0.05	)	$	(35	)	$	(2	)	$	—		$	—		$	—		$	—
Total notable items	$	(33	)	$	(25	)	$	(0.06	)	$	(37	)	$	(4	)	$	(0.01	)	$	(5	)	$	(4	)	$	(0.01	)

8

The following table provides information on Underlying results before the impact of notable items.

Underlying results:

	Quarterly Trends
										1Q20 change from
($s in millions, except per share data)	1Q20			4Q19			1Q19			4Q19			1Q19
Net interest income	$	1,160		$	1,143		$	1,160			1	%		—	%
Noninterest income		497			494			428			1			16
Total revenue	$	1,657		$	1,637		$	1,588			1	%		4	%
Noninterest expense		1,012			986			937			3			8
Notable items		33			37			5			(11	)		NM
Underlying noninterest expense	$	979		$	949		$	932			3	%		5	%
Underlying pre-provision profit		678			688			656			(1	)		3
Provision for credit losses		600			110			85			NM			NM
Net income available to common stockholders		12			427			424			(97	)		(97	)
Underlying net income available to common stockholders		37			431			428			(91	)		(91	)
Key performance metrics*
Diluted EPS	$	0.03		$	0.98		$	0.92			(97	)%		(97	)%
Underlying EPS	$	0.09		$	0.99		$	0.93			(91	)%		(90	)%
Efficiency ratio		61	%		60	%		59	%		82	bps		210	bps
Underlying efficiency ratio		59			58			59			106			41
Operating leverage											(1.4	)		(3.7	)
Underlying operating leverage											(1.9	)%		(0.7	)%

9

Discussion of results:

Net interest income										1Q20 change from
($s in millions)	1Q20			4Q19			1Q19			4Q19						1Q19
										$/bps			%			$/bps			%
Interest income:
Interest and fees on loans and leases and loans held for sale	$	1,326		$	1,335		$	1,396		$	(9	)		(1	)%	$	(70	)		(5	)%
Investment securities		147			159			166			(12	)		(8	)		(19	)		(11	)
Interest-bearing deposits in banks		5			7			8			(2	)		(29	)		(3	)		(38	)
Total interest income	$	1,478		$	1,501		$	1,570		$	(23	)		(2	)%	$	(92	)		(6	)%
Interest expense:
Deposits	$	227		$	263		$	287		$	(36	)		(14	)%	$	(60	)		(21	)%
Short-term borrowed funds		1			2			2			(1	)		(100	)		(1	)		(50	)
Long-term borrowed funds		90			93			121			(3	)		(3	)		(31	)		(26	)
Total interest expense	$	318		$	358		$	410		$	(40	)		(11	)%	$	(92	)		(22	)%
Net interest income	$	1,160		$	1,143		$	1,160		$	17			1	%	$	—			—	%
Net interest margin, FTE		3.10	%		3.06	%		3.25	%		4	bps					(15	) bps

Net interest income of $1.2 billion was stable with first quarter 2019 levels, despite the lower rate and challenging yield-curve environment, given 4% growth in interest-earning assets. Net interest margin of 3.10% decreased 15 basis points as the impact of lower interest rates was partially offset by improved deposit mix as well as continued mix shift towards better-returning assets.

Compared with fourth quarter 2019, net interest income of $1.2 billion was 1% higher as the benefit interest-earning asset growth and improved loan mix was partially offset by the negative impact of rates and day count. The net interest margin of 3.10% increased 4 basis points, reflecting the benefit of elevated LIBOR on loan spreads, as well as disciplined deposit pricing and mix, which more than offset the negative impact of lower interest rates. Interest-bearing deposit costs decreased 15 basis points.

Noninterest Income							1Q20 change from
($s in millions)	1Q20		4Q19		1Q19		4Q19						1Q19
							$			%			$			%
Service charges and fees	$	118	$	128	$	123	$	(10	)		(8	) %	$	(5	)		(4	) %
Mortgage banking fees		159		80		43		79			99			116			NM
Card fees		56		64		59		(8	)		(13	)		(3	)		(5	)
Capital markets fees		43		66		54		(23	)		(35	)		(11	)		(20	)
Trust and investment services fees		53		52		47		1			2			6			13
Foreign exchange and interest rate products		24		49		36		(25	)		(51	)		(12	)		(33	)
Letter of credit and loan fees		34		35		33		(1	)		(3	)		1			3
Securities gains, net		—		4		8		(4	)		(100	)		(8	)		(100	)
Other income(1)		10		16		25		(6	)		(38	)		(15	)		(60	)
Noninterest income	$	497	$	494	$	428	$	3			1	%	$	69			16	%
1) Other income includes bank-owned life insurance and other income.

Record noninterest income of $497 million increased $69 million, or 16%, from first quarter 2019. Results reflect record results in mortgage banking and trust and investment services fees. These results were partially offset by COVID-19 impacts in service charges and fees, card fees, capital markets and foreign exchange and interest rate products. Mortgage banking fees of $159 million reflect increased origination volumes and improved gain on sale margins, as well as higher mortgage servicing rights hedging gains. Capital markets fees of $43 million decreased $11 million, as market disruption in March resulted in a $21 million mark to market loss on loan/bond trading assets. Foreign exchange and interest rate products revenue of $24 million declined by $12 million, primarily due to a $10 million decrease in net credit valuation adjustment given the fall in rates. Other income declined from first quarter 2019 levels that included higher gains related to asset dispositions and efficiency initiatives.

10

Compared with fourth quarter 2019, noninterest income was relatively stable, as record results in mortgage banking and trust and investment services fees were partially offset by the impacts of COVID-19 disruption on other categories. Capital markets fees decreased $23 million from record fourth quarter 2019 levels given the mark to market loss. Foreign exchange and interest rate products income decreased $25 million from record fourth quarter 2019 levels, which includes a $15 million decrease in net credit valuation adjustment. Services charges and fees and card fees declined, reflecting impacts from seasonality as well as the COVID-19 disruption. Other income decreased reflecting costs associated with tax-advantaged investments and lower leasing income.

Noninterest Expense							1Q20 change from
($s in millions)	1Q20		4Q19		1Q19		4Q19						1Q19
							$			%			$			%
Salaries and employee benefits	$	549	$	502	$	509	$	47			9	%	$	40			8	%
Equipment and software expense		133		133		125		—			—			8			6
Outside services		135		142		110		(7	)		(5	)		25			23
Occupancy		84		88		83		(4	)		(5	)		1			1
Other operating expense		111		121		110		(10	)		(8	)		1			1
Noninterest expense	$	1,012	$	986	$	937	$	26			3	%	$	75			8	%
Notable items	$	33	$	37	$	5	$	(4	)		(11	)%	$	28			NM
Underlying, as applicable
Salaries and employee benefits	$	539	$	496	$	508	$	43			9	%	$	31			6	%
Equipment and software expense		132		130		125		2			2			7			6
Outside services		117		122		106		(5	)		(4	)		11			10
Occupancy		80		80		83		—			—			(3	)		(4	)
Other operating expense		111		121		110		(10	)		(8	)		1			1
Underlying noninterest expense	$	979	$	949	$	932	$	30			3	%	$	47			5	%

First quarter 2020 noninterest expense of $1.0 billion increased $75 million, or 8%, from first quarter 2019. Underlying noninterest expense of $979 million increased $47 million, or 5%, largely reflecting higher salaries and employee benefits given the impact of annual merit increases and revenue-based compensation tied to mortgage originations. Results also reflect higher equipment and software expense given continued investments in technology as well as higher outside services largely tied to growth initiatives. These results were partially offset by a reduction in occupancy.

Compared with fourth quarter 2019, noninterest expense increased $26 million, or 3%. Underlying noninterest expense of $979 million increased $30 million, or 3%, driven by higher salaries and employee benefits tied to seasonally higher payroll taxes, 401k matching and stock-based compensation costs, as well as higher revenue-based compensation tied to mortgage originations. Results also reflect an increase in equipment and software expense driven by increased technology spend, partially offset by lower other operating expense and outside services.

11

The first quarter 2020 effective tax rate was 24.1%. On an Underlying basis, the effective tax rate of 24.5% compares with 22.4% for first quarter 2019 and 21.5% for fourth quarter 2019. The increase from fourth quarter 2019 was primarily driven by the impact of stock-based compensation, due to lower pre-tax income.

Consolidated balance sheet review(1)										1Q20 change from
($s in millions)	1Q20			4Q19			1Q19			4Q19						1Q19
										$/bps			%			$/bps			%
Total assets	$	176,719		$	165,733		$	161,342		$	10,986			7	%	$	15,377			10	%
Total loans and leases		127,528			119,088			117,615			8,440			7			9,913			8
Total loans held for sale		3,261			3,330			1,252			(69	)		(2	)		2,009			160
Deposits		133,475			125,313			123,916			8,162			7			9,559			8
Stockholders’ equity		21,950			22,201			21,531			(251	)		(1	)		419			2
Stockholders’ common equity		20,380			20,631			20,399			(251	)		(1	)		(19	)		—
Tangible common equity	$	13,639		$	13,893		$	13,649		$	(254	)		(2	)%	$	(10	)		—	%
Loan-to-deposit ratio (period-end)(2)		95.5	%		95.0	%		94.9	%		51bps						62bps
Loans to deposit ratio (average)(2)		95.6			94.6			97.7			97						(210	)
Common equity tier 1 capital ratio(3)		9.4			10.0			10.5
Total capital ratio(3)		12.5	%		13.0	%		13.4	%

1) Represents period end unless otherwise noted.

2) Excludes loans held for sale.

3) Current reporting period regulatory capital ratios are preliminary.

Total assets of $176.7 billion at March 31, 2020, increased $15.4 billion, or 10%, from March 31, 2019, reflecting an $11.9 billion increase in loans and loans held for sale, which was largely driven by an increase in commercial line of credit utilization given the impact of COVID-19 disruption. Results also reflect a $2.2 billion increase in the investment portfolio and a $1.5 billion increase in customer-related derivative assets. Compared with December 31, 2019, total assets increased $11.0 billion, driven by an $8.4 billion increase in loans and loans held for sale given the higher COVID-19-related line of credit utilization as well as a $2.4 billion increase in the investment portfolio and a $1.2 billion increase in customer-related derivative assets.

Interest-earning assets							1Q20 change from
($s in millions)	1Q20		4Q19		1Q19		4Q19						1Q19
Period-end interest-earning assets							$			%			$		%
Investments and interest-bearing deposits	$	29,535	$	27,177	$	27,331	$	2,358			9	%	$	2,204		8	%
Commercial loans and leases		66,032		57,538		57,689		8,494			15			8,343		14
Retail loans		61,496		61,550		59,926		(54	)		—			1,570		3
Total loans and leases		127,528		119,088		117,615		8,440			7			9,913		8
Loans held for sale, at fair value		2,911		1,946		1,186		965			50			1,725		145
Other loans held for sale		350		1,384		66		(1,034	)		(75	)		284		NM
Total loans and leases and loans held for sale		130,789		122,418		118,867		8,371			7			11,922		10
Total period-end interest-earning assets	$	160,324	$	149,595	$	146,198	$	10,729			7	%	$	14,126		10	%
Average interest-earning assets
Investments and interest-bearing deposits	$	27,202	$	27,280	$	26,638	$	(78	)		—	%	$	564		2	%
Commercial loans and leases		59,510		57,661		57,707		1,849			3			1,803		3
Retail loans		61,545		61,244		59,942		301			—			1,603		3
Total loans and leases		121,055		118,905		117,649		2,150			2			3,406		3
Loans held for sale, at fair value		1,890		2,209		1,035		(319	)		(14	)		855		83
Other loans held for sale		799		517		191		282			55			608		NM
Total loans and leases and loans held for sale		123,744		121,631		118,875		2,113			2			4,869		4
Total average interest-earning assets	$	150,946	$	148,911	$	145,513	$	2,035			1	%	$	5,433		4	%

Period-end interest-earning assets of $160.3 billion increased $14.1 billion, or 10%, from March 31, 2019, driven by an $11.9 billion, or 10%, increase in loans and loans held for sale, reflecting an $8.3 billion increase in commercial and a $1.6 billion increase in retail. Results reflect the impact of the sale of $1.6 billion of on-balance sheet residential mortgage loans in connection with balance sheet optimization strategies. Compared with December 31, 2019, period-end interest-earning assets increased $10.7 billion, or 7%, largely due to an $8.5 billion increase in commercial loans, which included the $7.2 billion impact of higher line of credit utilization tied to COVID-19 disruption, as well as a $2.4 billion increase in the investment portfolio. The average effective duration of the securities portfolio decreased to 2.1 years as of March 31, 2020 from 3.8 years at March 31, 2019, and 3.7 years at December 31, 2019, given lower long-term rates that drove an increase in securities prepayment speeds.

12

Average interest-earning assets of $150.9 billion in first quarter 2020 increased $5.4 billion, or 4%, from first quarter 2019, reflecting a $4.9 billion, or 4%, increase in loans and loans held for sale which included a $1.6 billion increase in retail and a $1.8 billion increase in commercial which included the impact of higher line of credit utilization tied to COVID-19 disruption. Retail loan growth was driven by education and other retail, partially offset by lower home equity. Commercial loan growth was driven by strength in commercial and industrial loans and commercial real estate, and reflected the $1.0 billion impact from COVID-19-related line of credit utilization as well as the benefit of geographic, product and client-focused expansion strategies, partially offset by planned reductions in commercial leases.

Compared with fourth quarter 2019, average interest-earning assets increased $2.0 billion, or 1%, reflecting a $1.8 billion increase in commercial loans and a $301 million increase in retail loans. Growth in commercial reflects higher line utilization, as well as strength in commercial real estate. Retail loan results reflect a $922 million reduction tied to the sale of on-balance sheet residential mortgage loans in connection with balance sheet optimization strategies. Loan growth was 2.6% before the impact of this sales activity.

Deposits							1Q20 change from
($s in millions)	1Q20		4Q19		1Q19		4Q19						1Q19
Period-end deposits							$			%			$			%
Demand deposits	$	32,398	$	29,233	$	28,383	$	3,165			11	%	$	4,015			14	%
Checking with interest		25,358		24,840		23,482		518			2			1,876			8
Savings		14,702		13,779		13,239		923			7			1,463			11
Money market accounts		42,972		38,725		35,972		4,247			11			7,000			19
Term deposits		18,045		18,736		22,840		(691	)		(4	)		(4,795	)		(21	)
Total period-end deposits	$	133,475	$	125,313	$	123,916	$	8,162			7	%	$	9,559			8	%
Average deposits
Demand deposits	$	29,362	$	29,928	$	28,465	$	(566	)		(2	)  %	$	897			3	%
Checking with interest		24,612		23,545		22,987		1,067			5			1,625			7
Savings		14,201		13,582		12,626		619			5			1,575			12
Money market accounts		39,839		38,809		35,209		1,030			3			4,630			13
Term deposits		18,616		19,788		21,127		(1,172	)		(6	)		(2,511	)		(12	)
Total average deposits	$	126,630	$	125,652	$	120,414	$	978			1	%	$	6,216			5	%

Total period-end deposits of $133.5 billion at March 31, 2020 increased $9.6 billion, or 8%, from March 31, 2019, reflecting growth in money market accounts, demand deposits, checking with interest and savings, partially offset by a decrease in term deposits.

Compared with December 31, 2019, total period-end deposits increased $8.2 billion, driven by growth in money market accounts and demand deposits, savings and checking with interest, partially offset by a decrease in term deposits. Citizens Access^® deposits totaled $6.1 billion at March 31, 2020, up from $5.8 billion at December 31, 2019.

First quarter 2020 average deposits of $126.6 billion increased $6.2 billion, or 5%, from first quarter 2019, reflecting growth in money market accounts, checking with interest, savings and demand deposits, partially offset by a decrease in term deposits.

13

Compared with fourth quarter 2019, average deposits were relatively stable, as growth in checking with interest, money market accounts and savings was largely offset by a decrease in term deposits and demand deposits.

Borrowed Funds							1Q20 change from
($s in millions)	1Q20		4Q19		1Q19		4Q19						1Q19
Period-end borrowed funds							$			%			$			%
Short-term borrowed funds(1)	$	1,059	$	274	$	679	$	785			NM		$	380			56	%
Long-term borrowed funds(1)
FHLB advances		8,007		5,008		2,508		2,999			60			5,499			219
Senior debt		6,775		7,382		7,558		(607	)		(8	)		(783	)		(10	)
Subordinated debt and other debt		1,655		1,657		1,659		(2	)		—			(4	)		—
Total borrowed funds	$	17,496	$	14,321	$	12,404	$	3,175			22	%	$	5,092			41	%
Average borrowed funds
Short-term borrowed funds(1)	$	644	$	504	$	698	$	140			28	%	$	(54	)		(8	)  %
Long-term borrowed funds(1)
FHLB advances		5,138		3,259		5,694		1,879			58			(556	)		(10	)
Senior debt		7,263		7,914		7,391		(651	)		(8	)		(128	)		(2	)
Subordinated debt and other debt		1,656		1,657		1,651		(1	)		—			5			—
Total average borrowed funds	$	14,701	$	13,334	$	15,434	$	1,367			10	%	$	(733	)		(5	)  %

1) Beginning in 1Q19, borrowed funds balances are based on original maturity and prior periods have been revised consistent with the current presentation.

Total borrowed funds of $17.5 billion at March 31, 2020 increased $5.1 billion, or 41%, from March 31, 2019, reflecting a $5.5 billion increase in long-term FHLB borrowings and a $380 million increase in short-term borrowings, partially offset by a $783 million decrease in senior debt. Compared with December 31, 2019, total borrowed funds increased $3.2 billion reflecting a $3.0 billion increase in long-term FHLB borrowings, and a $785 million increase in short-term borrowings, partially offset by a $607 million decrease in senior debt.

Average borrowed funds of $14.7 billion decreased $733 million, or 5%, from first quarter 2019, reflecting a $556 million decrease in long-term FHLB borrowings, a $128 million decrease in senior debt and a $54 million decrease in short-term borrowings. Compared with December 31, 2019 average borrowed funds increased $1.4 billion, or 10%, reflecting a $1.9 billion increase in long-term FHLB borrowings and a $140 million increase in short-term borrowings, partially offset by a $651 million decrease in senior debt.

Capital										1Q20 change from
($s and shares in millions except per share data)	1Q20			4Q19			1Q19			4Q19						1Q19
Period-end capital										$			%			$			%
Stockholders’ equity	$	21,950		$	22,201		$	21,531		$	(251	)		(1	) %	$	419			2	%
Stockholders’ common equity		20,380			20,631			20,399			(251	)		(1	)		(19	)		—
Tangible common equity		13,639			13,893			13,649			(254	)		(2	)		(10	)		—
Tangible book value per common share	$	31.97		$	32.08		$	29.6		$	(0.11	)		—		$	2.37			8
Common shares - at end of period		426.6			433.1			461.1			(6.5	)		(2	)		(34.5	)		(7	)
Common shares - average (diluted)		429.4			436.5			462.5			(7.1	)		(2	) %		(33.1	)		(7	)
Common equity tier 1 capital ratio(1)		9.4	%		10.0	%		10.5	%
Total capital ratio(1)		12.5			13.0			13.4
Tier 1 leverage ratio(1)		9.6	%		10.0	%		10.0	%

1) Current reporting-period regulatory capital ratios are preliminary.

At March 31, 2020, our Basel III capital ratios remained well in excess of applicable regulatory requirements with a CET1 capital ratio of 9.4% compared with 10.0% at December 31, 2019 and 10.5% at March 31, 2019, and a total capital ratio of 12.5% compared with total capital ratios of 13.0% as of December 31, 2019 and 13.4% as of March 31, 2019.

14

Tangible book value per common share of $31.97 was relatively stable compared with fourth quarter 2019 and increased 8% from first quarter 2019.

During first quarter 2020, the company repurchased 7.5 million shares of common stock at a weighted-average price of $35.77, and including common dividends, returned $438 million to shareholders. These results compare with $558 million returned to common shareholders in fourth quarter 2019 and $349 million in first quarter 2019.

Credit quality review								1Q20 change from
($s in millions)	1Q20		4Q19		1Q19			4Q19				1Q19
								$/bps		%		$/bps		%
Nonaccrual loans and leases	$	780	$	703	$	744		$	77		11  %	$	36	5 %
90+ days past due and accruing		27		25		32			2		8		(5)	(16)
Net charge-offs		137		122		89			15		12		48	54
Provision for credit losses		600		110		85			490		NM		515	NM
Allowance for credit losses	$	2,210	$	1,296	$	1  ,329		$	914		71   %	$	881	66 %
Nonaccrual loans and leases to loans and leases		0.61   %		0.59   %		0.63	%		2  bps				(2)  bps
Net charge-offs as a % of total loans and leases		0.46		0.41		0.31			5				15
Allowance for credit losses to loans and leases		1.73		1.09		1.13			64				60
Allowance for credit losses to nonaccrual loans and leases		283.5   %		184.3   %		178.7	%		NM				NM

Nonacccrual loans increased $36 million, or 5%, compared with March 31, 2019, as a $102 million increase in commercial was partially offset by a $66 million decrease in retail reflecting improvement in home equity and education. Compared to December 31, 2019, nonaccrual loans of $780 million increased $77 million, or 11%, reflecting a $69 million increase in commercial and an $8 million increase in retail. The nonaccrual loans to loans ratio of 0.61% at March 31, 2020 increased 2 basis points from 0.59% at December 31, 2019 and improved 2 basis points from 0.63% at March 31, 2019.

Net charge-offs of $137 million increased $48 million from first quarter 2019, reflecting a $20 million increase in commercial, reflecting several uncorrelated commercial losses, and a $28 million increase in retail driven by seasoning in growth portfolios. Compared with fourth quarter 2019, net charge-offs increased $15 million driven by a $17 million increase in commercial, partially offset by a $2 million reduction in retail.

First quarter 2020 net charge-offs were 46 basis points of average loans compared with 31 basis points in first quarter 2019 and 41 basis points in fourth quarter 2019.

Provision for credit losses of $600 million includes a $463 million reserve build associated with COVID-19 and compares with $85 million in first quarter 2019 and $110 million in fourth quarter 2019.

The allowance for credit losses of $2.2 billion includes impacts from the adoption of CECL on January 1, 2020. This compares with $1.3 billion at March 31, 2019 and $1.3 billion at December 31, 2019.

The allowance for credit losses to loans ratio was 1.73% as of March 31, 2020, compared with 1.13% as of March 31, 2019, and 1.09% as of December 31, 2019. The allowance for credit losses to nonaccrual loans ratio of 283% as of March 31, 2020 compares to 179% as of March 31, 2019, and 184% as of December 31, 2019.

15

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $176.7 billion in assets as of March 31, 2020. 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. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a 24/7 customer contact center and the convenience of approximately 2,800 ATMs and approximately 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.

16

Key Performance Metrics and Non-GAAP Financial Measures and Reconciliations

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

Key Performance Metrics:

Our Management uses certain key performance metrics (KPMs) to gauge our progress against strategic and operational goals, as well as to compare our performance against peers. The KPMs are referred to in our Registration Statements on Form S-1 and our external financial reports filed with the Securities and Exchange Commission. The KPMs include:

• Return on average tangible common equity (ROTCE);

• Efficiency ratio;

• Operating leverage; and

• Common equity tier 1 capital ratio.

Established targets for the KPMs are based on Management-reporting results which are currently referred to by the Company as “Underlying” results. In historical periods, these results may have been referred to as “Adjusted” or “Adjusted/Underlying” results. We believe that Underlying results, which exclude notable items, provide the best representation of our underlying financial progress toward the KPMs as the results exclude items that our Management does not consider indicative of our on-going financial performance. We have consistently shown investors our KPMs on a Management-reporting basis since our initial public offering in September of 2014. KPMs that reflect Underlying results are considered non-GAAP financial measures.

Non-GAAP Financial Measures:

This document contains non-GAAP financial measures denoted as Underlying results. In historical periods, these results may have been referred to as Adjusted or Adjusted/Underlying results. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. The following tables present reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

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 such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.

17

Key performance metrics, non-GAAP financial measures and reconciliations

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

		QUARTERLY TRENDS
								1Q20 Change
		1Q20		4Q19		1Q19		4Q19				1Q19
								$		%		$		%
Noninterest income, Underlying:
Noninterest income (GAAP)	A		$497		$494		$428		$3		1 %		$69		16 %
Less: Notable items			—		—		—		—		—		—		—
Noninterest income, Underlying (non-GAAP)	B		$497		$494		$428		$3		1 %		$69		16 %
Total revenue, Underlying:
Total revenue (GAAP)	C		$1,657		$1,637		$1,588		$20		1 %		$69		4 %
Less: Notable items			—		—		—		—		—		—		—
Total revenue, Underlying (non-GAAP)	D		$1,657		$1,637		$1,588		$20		1 %		$69		4 %
Noninterest expense, Underlying:
Noninterest expense (GAAP)	E		$1,012		$986		$937		$26		3 %		$75		8 %
Less: Notable items			33		37		5		(4)		(11)		28		NM
Noninterest expense, Underlying (non-GAAP)	F		$979		$949		$932		$30		3 %		$47		5 %
Pre-provision profit:
Total revenue (GAAP)	C		$1,657		$1,637		$1,588		$20		1 %		$69		4 %
Less: Noninterest expense (GAAP)	E		1,012		986		937		26		3		75		8
Pre-provision profit (GAAP)			$645		$651		$651		($6)		(1%)		($6)		(1%)
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	D		$1,657		$1,637		$1,588		$20		1 %		$69		4 %
Less: Noninterest expense, Underlying (non-GAAP)	F		979		949		932		30		3		47		5
Pre-provision profit, Underlying (non-GAAP)			$678		$688		$656		($10)		(1%)		$22		3 %
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	G		$45		$541		$566		($496)		(92%)		($521)		(92%)
Less: Expense before income tax benefit related to notable items			(33)		(37)		(5)		4		11		(28)		NM
Income before income tax expense, Underlying (non-GAAP)	H		$78		$578		$571		($500)		(87%)		($493)		(86%)
Income tax expense, Underlying:
Income tax expense (GAAP)	I		$11		$91		$127		($80)		(88%)		($116)		(91%)
Less: Income tax benefit related to notable items			(8)		(33)		(1)		25		76		(7)		NM
Income tax expense, Underlying (non-GAAP)	J		$19		$124		$128		($105)		(85%)		($109)		(85%)
Net income, Underlying:
Net income (GAAP)	K		$34		$450		$439		($416)		(92%)		($405)		(92%)
Add: Notable items, net of income tax benefit			25		4		4		21		NM		21		NM
Net income, Underlying (non-GAAP)	L		$59		$454		$443		($395)		(87%)		($384)		(87%)
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	M		$12		$427		$424		($415)		(97%)		($412)		(97%)
Add: Notable items, net of income tax benefit			25		4		4		21		NM		21		NM
Net income available to common stockholders, Underlying (non-GAAP)	N		$37		$431		$428		($394)		(91%)		($391)		(91%)

18

Key performance metrics, non-GAAP financial measures and reconciliations (continued)

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

		QUARTERLY TRENDS
											1Q20 Change
		1Q20			4Q19			1Q19			4Q19						1Q19
											$/bps			%			$/bps			%
Operating leverage:
Total revenue (GAAP)	C	$	1,657		$	1,637		$	1,588		$	20			1.30	%	$	69			4.35	%
Less: Noninterest expense (GAAP)	E		1,012			986			937			26			2.68			75			8.06
Operating leverage															(1.38	%)					(3.71	%)
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	D	$	1,657		$	1,637		$	1,588		$	20			1.30	%	$	69			4.35	%
Less: Noninterest expense, Underlying (non-GAAP)	F		979			949			932			30			3.16			47			5.09
Operating leverage, Underlying (non-GAAP)															(1.86	%)					(0.74	%)
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	E/C		61.10	%		60.28	%		59.00	%		82	bps					210	bps
Efficiency ratio, Underlying (non-GAAP)	F/D		59.08			58.02			58.67			106	bps					41	bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	I/G		24.13	%		16.76	%		22.42	%		737	bps					171	bps
Effective income tax rate, Underlying (non-GAAP)	J/H		24.52			21.52			22.44			300	bps					208	bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	0	$	20,223		$	20,400		$	19,942		($	177	)		(1	%)	$	281			1	%
Return on average common equity	M/O		0.24	%		8.30	%		8.62	%		(806	) bps					(838 bps	)
Return on average common equity, Underlying (non-GAAP)	N/O		0.74			8.36			8.71			(762	) bps					(797 bps	)
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	O	$	20,223		$	20,400		$	19,942		($	177	)		(1	%)	$	281			1	%
Less: Average goodwill (GAAP)			7,046			7,044			7,018			2			—			28			—
Less: Average other intangibles (GAAP)			67			69			59			(2	)		(3	)		8			14
Add: Average deferred tax liabilities related to goodwill (GAAP)			374			373			368			1			—			6			2
Average tangible common equity	P	$	13,484		$	13,660		$	13,233		($	176	)		(1	%)	$	251			2	%
Return on average tangible common equity	M/P		0.36	%		12.39	%		13.00	%		(1,203 bps	)					(1,264 bps	)
Return on average tangible common equity, Underlying (non-GAAP)	N/P		1.10			12.49			13.12			(1,139 bps	)					(1,202 bps	)
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	Q	$	167,177		$	164,646		$	160,415		$	2,531			2	%	$	6,762			4	%
Return on average total assets	K/Q		0.08	%		1.08	%		1.11	%		(100 bps	)					(103 bps	)
Return on average total assets, Underlying (non-GAAP)	L/Q		0.14			1.09			1.12			(95 bps	)					(98 bps	)
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	Q	$	167,177		$	164,646		$	160,415		$	2,531			2	%	$	6,762			4	%
Less: Average goodwill (GAAP)			7,046			7,044			7,018			2			—			28			—
Less: Average other intangibles (GAAP)			67			69			59			(2	)		(3	)		8			14
Add: Average deferred tax liabilities related to goodwill (GAAP)			374			373			368			1			—			6			2
Average tangible assets	R	$	160,438		$	157,906		$	153,706		$	2,532			2	%	$	6,732			4	%
Return on average total tangible assets	K/R		0.09	%		1.13	%		1.16	%		(104 bps	)					(107 bps	)
Return on average total tangible assets, Underlying (non-GAAP)	L/R		0.15			1.14			1.17			(99 bps	)					(102 bps	)

19

Key performance metrics, non-GAAP financial measures and reconciliations (continued)

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

		QUARTERLY TRENDS
								1Q20 Change
		1Q20		4Q19		1Q19		4Q19						1Q19
								$/bps			%			$/bps			%
Tangible book value per common share:
Common shares—at period-end (GAAP)	S		426,586,533		433,121,083		461,116,723		(6,534,550	)		(2	%)		(34,530,190	)		(7	%)
Common stockholders’ equity (GAAP)			$20,380		$20,631		$20,399		($251	)		(1	)		($19	)		—
Less: Goodwill (GAAP)			7,050		7,044		7,040		6			—			10			—
Less: Other intangible assets (GAAP)			66		68		80		(2	)		(3	)		(14	)		(18	)
Add: Deferred tax liabilities related to goodwill (GAAP)			375		374		370		1			—			5			1
Tangible common equity	T		$13,639		$13,893		$13,649		($254	)		(2	%)		($10	)		—	%
Tangible book value per common share	T/S		$31.97		$32.08		$29.60		($0.11	)		—	%		$2.37			8	%
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying:
Average common shares outstanding - basic (GAAP)	U		427,718,421		434,684,606		460,713,172		(6,966,185	)		(2	%)		(32,994,751	)		(7	%)
Average common shares outstanding - diluted (GAAP)	V		429,388,855		436,500,829		462,520,680		(7,111,974	)		(2	)		(33,131,825	)		(7	)
Net income per average common share - basic (GAAP)	M/U		$0.03		$0.98		$0.92		($0.95	)		(97	)		($0.89	)		(97	)
Net income per average common share - diluted (GAAP)	M/V		0.03		0.98		0.92		(0.95	)		(97	)		(0.89	)		(97	)
Net income per average common share - basic, Underlying (non-GAAP)	N/U		0.09		0.99		0.93		(0.90	)		(91	)		(0.84	)		(90	)
Net income per average common share - diluted, Underlying (non-GAAP)	N/V		0.09		0.99		0.93		(0.90	)		(91	)		(0.84	)		(90	)

20

Key performance metrics, non-GAAP financial measures and reconciliations (continued)

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

	QUARTERLY TRENDS
							1Q20 Change
	1Q20		4Q19		1Q19		4Q19						1Q19
							$/bps			%			$/bps			%
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)		$549		$502		$509		$47			9	%		$40			8	%
Less: Notable items		10		6		1		4			67			9			NM
Salaries and employee benefits, Underlying (non-GAAP)		$539		$496		$508		$43			9	%		$31			6	%
Equipment and software expense, Underlying:
Equipment and software expense (GAAP)		$133		$133		$125		$—			—	%		$8			6	%
Less: Notable items		1		3		—		(2	)		(67	)		1			100
Equipment and software expense, Underlying (non-GAAP)		$132		$130		$125		$2			2	%		$7			6	%
Outside services, Underlying:
Outside services (GAAP)		$135		$142		$110		($7	)		(5	%)		$25			23	%
Less: Notable items		18		20		4		(2	)		(10	)		14			NM
Outside services, Underlying (non-GAAP)		$117		$122		$106		($5	)		(4	%)		$11			10	%
Occupancy, Underlying:
Occupancy (GAAP)		$84		$88		$83		($4	)		(5	%)		$1			1	%
Less: Notable items		4		8		—		(4	)		(50	)		4			100
Occupancy, Underlying (non-GAAP)		$80		$80		$83		$—			—	%		($3	)		(4	%)

21

Key performance metrics, non-GAAP financial measures and reconciliations - Underlying excluding the impact of COVID-19 on provision for credit losses

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

		QUARTERLY TRENDS
											1Q20 Change
		1Q20			4Q19			1Q19			4Q19						1Q19
											$/bps			%			$/bps			%
Net income available to common shareholders, Underlying excluding the impact of COVID-19:
Net income available to common shareholders (GAAP)	A		$12			$427			$424			($415	)		(97	%)		($412	)		(97	%)
Add: Notable items			25			4			4			21			NM			21			NM
Add: Impact of COVID-19			365			—			—			365			100			365			100
Net income available to common shareholders, Underlying excluding the impact of COVID-19 (non-GAAP)	B		$402			$431			$428			($29	)		(7	%)		($26	)		(6	%)
Return on average tangible common equity, Underlying excluding the impact of COVID-19:
Average common equity (GAAP)			$20,223			$20,400			$19,942			($177	)		(1	%)		$281			1	%
Less: Average goodwill (GAAP)			7,046			7,044			7,018			2			—			28			—
Less: Average other intangibles (GAAP)			67			69			59			(2	)		(3	)		8			14
Add: Average deferred tax liabilities related to goodwill (GAAP)			374			373			368			1			—			6			2
Average tangible common equity	C		$13,484			$13,660			$13,233			($176	)		(1	%)		$251			2	%
Return on average tangible common equity	A/C		0.36	%		12.39	%		13.00	%		(1,203	) bps					(1,264	) bps
Return on average tangible common equity, Underlying excluding the impact of COVID-19 (non-GAAP)	B/C		12.00			12.49			13.12			(49	) bps					(112	) bps
Net income per average common share - basic and diluted, Underlying excluding the impact of COVID-19:
Average common shares outstanding - basic (GAAP)	D		427,718,421			434,684,606			460,713,172			(6,966,185	)		(2	%)		(32,994,751	)		(7	%)
Average common shares outstanding - diluted (GAAP)	E		429,388,855			436,500,829			462,520,680			(7,111,974	)		(2	)		(33,131,825	)		(7	)
Net income per average common share - basic (GAAP)	A/D		$0.03			$0.98			$0.92			($0.95	)		(97	)		($0.89	)		(97	)
Net income per average common share - diluted (GAAP)	A/E		0.03			0.98			0.92			(0.95	)		(97	)		(0.89	)		(97	)
Net income per average common share - basic, Underlying excluding the impact of COVID-19 (non-GAAP)	B/D		0.94			0.99			0.93			(0.05	)		(5	)		0.01			1
Net income per average common share - diluted, Underlying excluding the impact of COVID-19 (non-GAAP)	B/E		0.94			0.99			0.93			(0.05	)		(5	)		0.01			1

22

Forward-Looking Statements

This document contains forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends, as well as the potential effects of the COVID-19 pandemic on our business, operations, financial performance and prospects, are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.”

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

• Negative economic and political 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, and changes in the competitive environment;

• Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals;

• The COVID-19 pandemic and its effects on the economic and business environments in which we operate;

• Our ability to meet heightened 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 U.S. Basel III capital rules) and our ability to generate capital internally or raise capital on favorable terms;

• The effect of 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;

• 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 actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends. Further, statements about the effects of the COVID-19 pandemic on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us.

More information about factors that could cause actual results to differ materially from those described in the forward-looking

statements can be found under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019.

Note: Per share amounts and ratios presented in this document are calculated using whole dollars.

23

Item 9.01   Financial Statements and Exhibits.

	Exhibit Number	Description
(d)	Exhibit 99.1	Citizens Financial Group, Inc. financial supplement for first quarter 2020
	Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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

CITIZENS FINANCIAL GROUP, Inc.
By:	/s/ John F. Woods
	John F. Woods
	Vice Chairman and Chief Financial Officer

Date: April 27, 2020

EX-99.1

Exhibit 99.1

Financial Supplement

First Quarter 2020

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		8
Average Annualized Yields and Rates		9
Segment Financial Highlights		10
Credit-Related Information:
Nonaccrual loans and leases		14
Loans and Leases 90 Days or More Past Due and Accruing		15
Charge-offs, Recoveries and Related Ratios		16
Summary of Changes in the Components of the Allowance for Credit Losses		18
Capital and Ratios		19
Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations		20

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.

Footnotes that are denoted by a letter apply to multiple pages and can be found in the appendix. Footnotes that are denoted by a number apply to a particular page and can be found at the bottom of the page.

2

CONSOLIDATED FINANCIAL HIGHLIGHTS

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

	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
SELECTED OPERATING DATA
Total revenue	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1	%	$	69			4	%
Noninterest expense		1,012			986			973			951			937			26			3			75			8
Profit before provision for credit losses		645			651			665			677			651			(6	)		(1	)		(6	)		(1	)
Provision for credit losses		600			110			101			97			85			490			NM			515			NM
NET INCOME		34			450			449			453			439			(416	)		(92	)		(405	)		(92	)
Net income, UnderlyingA		59			454			453			458			443			(395	)		(87	)		(384	)		(87	)
Net income available to common stockholders		12			427			432			435			424			(415	)		(97	)		(412	)		(97	)
Net income available to common stockholders, UnderlyingA		37			431			436			440			428			(394	)		(91	)		(391	)		(91	)
PER COMMON SHARE DATA
Basic earnings	$	0.03		$	0.98		$	0.97		$	0.95		$	0.92		($	0.95	)		(97	%)	($	0.89	)		(97	%)
Diluted earnings		0.03			0.98			0.97			0.95			0.92			(0.95	)		(97	)		(0.89	)		(97	)
Basic earnings, UnderlyingA		0.09			0.99			0.98			0.96			0.93			(0.90	)		(91	)		(0.84	)		(90	)
Diluted earnings, UnderlyingA		0.09			0.99			0.98			0.96			0.93			(0.90	)		(91	)		(0.84	)		(90	)
Cash dividends declared and paid per common share		0.39			0.36			0.36			0.32			0.32			0.03			8			0.07			22
Book value per common share		47.78			47.63			46.67			45.61			44.24			0.15			—			3.54			8
Tangible book value per common share		31.97			32.08			31.48			30.88			29.60			(0.11	)		—			2.37			8
Dividend payout ratio		1,398	%		37	%		37	%		34	%		35	%		NM						NM
Dividend payout ratio, UnderlyingA		451			36			37			33			34			NM						NM
COMMON SHARES OUTSTANDING
Average: Basic		427,718,421			434,684,606			445,703,987			458,154,335			460,713,172			(6,966,185	)		(2	%)		(32,994,751	)		(7	%)
Diluted		429,388,855			436,500,829			447,134,595			459,304,224			462,520,680			(7,111,974	)		(2	)		(33,131,825	)		(7	)
Common shares at period-end		426,586,533			433,121,083			443,913,525			457,903,826			461,116,723			(6,534,550	)		(2	)		(34,530,190	)		(7	)

3

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)

	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
FINANCIAL RATIOS
Net interest margin		3.09	%		3.04	%		3.10	%		3.20	%		3.23	%		5	bps					(14	) bps
Net interest margin, FTE1		3.10			3.06			3.12			3.21			3.25			4	bps					(15	) bps
Return on average common equity		0.24			8.30			8.35			8.54			8.62			(806	) bps					(838	) bps
Return on average common equity, UnderlyingA		0.74			8.36			8.45			8.63			8.71			(762	) bps					(797	) bps
Return on average tangible common equity		0.36			12.39			12.44			12.75			13.00			(1,203	) bps					(1,264	) bps
Return on average tangible common equity, UnderlyingA		1.10			12.49			12.58			12.89			13.12			(1,139	) bps					(1,202	) bps
Return on average total assets		0.08			1.08			1.10			1.13			1.11			(100	) bps					(103	) bps
Return on average total assets, UnderlyingA		0.14			1.09			1.11			1.14			1.12			(95	) bps					(98	) bps
Return on average total tangible assets		0.09			1.13			1.15			1.17			1.16			(104	) bps					(107	) bps
Return on average total tangible assets, UnderlyingA		0.15			1.14			1.16			1.19			1.17			(99	) bps					(102	) bps
Effective income tax rate		24.13			16.76			20.46			21.86			22.42			737	bps					171	bps
Effective income tax rate, UnderlyingA		24.52			21.52			22.29			21.89			22.44			300	bps					208	bps
Efficiency ratio		61.10			60.28			59.40			58.41			59.00			82	bps					210	bps
Efficiency ratio, UnderlyingA		59.08			58.02			58.22			58.02			58.67			106	bps					41	bps
Noninterest income as a % of total revenue		30	%		30	%		30	%		28	%		27	%		—	bps					300	bps
Noninterest income as a % of total revenue, UnderlyingA		30	%		30	%		30	%		28	%		27	%		—	bps					300	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio		9.4	%		10.0	%		10.3	%		10.5	%		10.5	%
Tier 1 capital ratio		10.5			11.1			11.1			11.3			11.3
Total capital ratio		12.5			13.0			13.0			13.4			13.4
Tier 1 leverage ratio		9.6			10.0			9.9			10.1			10.0
Tangible common equity ratio		8.0			8.7			8.9			9.1			8.8
SELECTED BALANCE SHEET DATA
Loans-to-deposits ratio (period-end balances)B		95.54	%		95.03	%		94.52	%		94.22	%		94.92	%		51	bps					62	bps
Loans-to-deposits ratio (average balances)B		95.60			94.63			94.62			95.64			97.70			97	bps					(210	) bps
Full-time equivalent colleagues		17,863			17,997			18,116			18,207			18,078			(134	)		(1	)		(215	)		(1	)

¹  Net interest income and net interest margin is presented on a fully taxable-equivalent (“FTE”) basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.

4

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions)

	QUARTERLY TRENDS
											1Q20 Change
	1Q20		4Q19		3Q19		2Q19		1Q19		4Q19						1Q19
											$			%			$			%
INTEREST INCOME
Interest and fees on loans and leases	$	1,302	$	1,312	$	1,356	$	1,392	$	1,381	($	10	)		(1	%)	($	79	)		(6	%)
Interest and fees on loans held for sale		15		18		19		15		11		(3	)		(17	)		4			36
Interest and fees on other loans held for sale		9		5		2		2		4		4			80			5			125
Investment securities		147		159		153		164		166		(12	)		(8	)		(19	)		(11	)
Interest-bearing deposits in banks		5		7		8		7		8		(2	)		(29	)		(3	)		(38	)
Total interest income		1,478		1,501		1,538		1,580		1,570		(23	)		(2	)		(92	)		(6	)
INTEREST EXPENSE
Deposits		227		263		297		308		287		(36	)		(14	)		(60	)		(21	)
Short-term borrowed fundsC		1		2		2		4		2		(1	)		(50	)		(1	)		(50	)
Long-term borrowed funds		90		93		94		102		121		(3	)		(3	)		(31	)		(26	)
Total interest expense		318		358		393		414		410		(40	)		(11	)		(92	)		(22	)
Net interest income		1,160		1,143		1,145		1,166		1,160		17			1			—			—
NONINTEREST INCOME
Service charges and fees		118		128		128		126		123		(10	)		(8	)		(5	)		(4	)
Mortgage banking fees		159		80		117		62		43		79			99			116			NM
Card fees		56		64		67		64		59		(8	)		(13	)		(3	)		(5	)
Capital markets fees		43		66		39		57		54		(23	)		(35	)		(11	)		(20	)
Trust and investment services fees		53		52		50		53		47		1			2			6			13
Foreign exchange and interest rate products		24		49		35		35		36		(25	)		(51	)		(12	)		(33	)
Letter of credit and loan fees		34		35		34		33		33		(1	)		(3	)		1			3
Securities gains, net		—		4		3		4		8		(4	)		(100	)		(8	)		(100	)
Other income		10		16		20		28		25		(6	)		(38	)		(15	)		(60	)
Total noninterest income		497		494		493		462		428		3			1			69			16
TOTAL REVENUE		1,657		1,637		1,638		1,628		1,588		20			1			69			4
Provision for credit losses		600		110		101		97		85		490			NM			515			NM
NONINTEREST EXPENSE
Salaries and employee benefits		549		502		508		507		509		47			9			40			8
Equipment and software expense		133		133		130		126		125		—			—			8			6
Outside services		135		142		128		118		110		(7	)		(5	)		25			23
Occupancy		84		88		80		82		83		(4	)		(5	)		1			1
Other operating expense		111		121		127		118		110		(10	)		(8	)		1			1
Total noninterest expense		1,012		986		973		951		937		26			3			75			8
Income before income tax expense		45		541		564		580		566		(496	)		(92	)		(521	)		(92	)
Income tax expense		11		91		115		127		127		(80	)		(88	)		(116	)		(91	)
Net income	$	34	$	450	$	449	$	453	$	439	($	416	)		(92	%)	($	405	)		(92	%)
Net income, UnderlyingA	$	59	$	454	$	453	$	458	$	443	($	395	)		(87	%)	($	384	)		(87	%)
Net income available to common stockholders	$	12	$	427	$	432	$	435	$	424	($	415	)		(97	%)	($	412	)		(97	%)
Net income available to common stockholders, UnderlyingA	$	37	$	431	$	436	$	440	$	428	($	394	)		(91	%)	($	391	)		(91	%)

5

CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)

PERIOD-END BALANCES	AS OF															MARCH 31, 2020 CHANGE
	Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			December 31, 2019						March 31, 2019
																$			%			$			%
ASSETS
Cash and due from banks	$	1,155		$	1,175		$	1,638		$	996		$	923		($	20	)		(2	%)	$	232			25	%
Interest-bearing cash and due from banks		2,903			2,211			2,204			2,039			1,513			692			31			1,390			92
Interest-bearing deposits in banks		280			297			158			186			167			(17	)		(6	)		113			68
Debt securities available for sale, at fair value		22,307			20,613			21,502			21,698			21,504			1,694			8			803			4
Debt securities held to maturity		3,071			3,202			3,319			3,447			3,345			(131	)		(4	)		(274	)		(8	)
Equity securities, at fair value		47			47			47			47			198			—			—			(151	)		(76	)
Equity securities, at cost		927			807			734			706			604			120			15			323			53
Loans held for sale, at fair value		2,911			1,946			1,993			1,750			1,186			965			50			1,725			145
Other loans held for sale		350			1,384			22			455			66			(1,034	)		(75	)		284			NM
Loans and leasesB		127,528			119,088			117,880			116,838			117,615			8,440			7			9,913			8
Less: Allowance for loan and lease losses		(2,171	)		(1,252	)		(1,263	)		(1,227	)		(1,245	)		(919	)		(73	)		(926	)		(74	)
Net loans and leasesB		125,357			117,836			116,617			115,611			116,370			7,521			6			8,987			8
Derivative assets		1,968			807			1,027			833			465			1,161			144			1,503			NM
Premises and equipment		746			761			747			740			746			(15	)		(2	)		—			—
Bank-owned life insurance		1,736			1,725			1,720			1,711			1,705			11			1			31			2
Goodwill		7,050			7,044			7,044			7,040			7,040			6			—			10			—
Due from broker		—			—			257			249			92			—			—			(92	)		(100	)
Other assetsB		5,911			5,878			5,333			5,241			5,418			33			1			493			9
TOTAL ASSETS	$	176,719		$	165,733		$	164,362		$	162,749		$	161,342		$	10,986			7%		$	15,377			10	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	32,398		$	29,233		$	29,939		$	28,192		$	28,383		$	3,165			11	%	$	4,015			14	%
Interest-bearing		101,077			96,080			94,775			95,812			95,533			4,997			5			5,544			6
Total deposits		133,475			125,313			124,714			124,004			123,916			8,162			7			9,559			8
Short-term borrowed fundsC		1,059			274			1,077			1,441			679			785			NM			380			56
Derivative liabilities		234			120			161			106			173			114			95			61			35
Deferred taxes, net		782			866			752			767			676			(84	)		(10	)		106			16
Long-term borrowed funds:
FHLB advances		8,007			5,008			3,007			2,258			2,508			2,999			60			5,499			219
Senior debt		6,775			7,382			8,143			7,624			7,558			(607	)		(8	)		(783	)		(10	)
Subordinated debt and other debt		1,655			1,657			1,656			1,656			1,659			(2	)		—			(4	)		—
Total long-term borrowed funds		16,437			14,047			12,806			11,538			11,725			2,390			17			4,712			40
Due to broker		—			—			206			257			93			—			—			(93	)		(100	)
Other liabilities		2,782			2,912			2,795			2,619			2,549			(130	)		(4	)		233			9
TOTAL LIABILITIES		154,769			143,532			142,511			140,732			139,811			11,237			8			14,958			11
STOCKHOLDERS’ EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented		1,570			1,570			1,133			1,133			1,132			—			—			438			39
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		18,901			18,891			18,876			18,860			18,847			10			—			54			—
Retained earnings		6,011			6,498			6,229			5,959			5,672			(487	)		(7	)		339			6
Treasury stock, at cost		(4,623	)		(4,353	)		(3,953	)		(3,453	)		(3,333	)		(270	)		(6	)		(1,290	)		(39	)
Accumulated other comprehensive income (loss)		85			(411	)		(440	)		(488	)		(793	)		496			NM			878			NM
TOTAL STOCKHOLDERS’ EQUITY		21,950			22,201			21,851			22,017			21,531			(251	)		(1)			419			2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	176,719		$	165,733		$	164,362		$	162,749		$	161,342		$	10,986			7%		$	15,377			10	%
Memo: Total tangible common equity	$	13,639		$	13,893		$	13,976		$	14,141		$	13,649		($	254	)		(2	%)	($	10	)		—	%

6

LOANS AND DEPOSITS

(in millions)

PERIOD-END BALANCES	AS OF										MARCH 31, 2020 CHANGE
	Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		June 30, 2019		Mar 31, 2019		Dec 31, 2019						March 31, 2019
											$			%			$			%
LOANS AND LEASES
Commercial	$	49,092	$	41,479	$	41,356	$	41,156	$	41,497	$	7,613			18	%	$	7,595			18	%
Commercial real estate		14,502		13,522		12,820		13,123		13,372		980			7			1,130			8
Leases		2,438		2,537		2,557		2,684		2,820		(99	)		(4	)		(382	)		(14	)
Total commercial loans and leases		66,032		57,538		56,733		56,963		57,689		8,494			15			8,343			14
Residential mortgagesB		18,721		19,083		19,699		19,192		19,174		(362	)		(2	)		(453	)		(2	)
Home equityD		12,992		13,154		13,423		13,640		13,870		(162	)		(1	)		(878	)		(6	)
Automobile		12,157		12,120		12,070		12,000		11,992		37			—			165			1
Education		10,887		10,347		9,729		9,305		9,274		540			5			1,613			17
Other retailE		6,739		6,846		6,226		5,738		5,616		(107	)		(2	)		1,123			20
Total retail loansB		61,496		61,550		61,147		59,875		59,926		(54	)		—			1,570			3
Total loans and leasesB	$	127,528	$	119,088	$	117,880	$	116,838	$	117,615	$	8,440			7	%	$	9,913			8	%
Loans held for sale, at fair value		2,911		1,946		1,993		1,750		1,186		965			50			1,725			145
Other loans held for sale		350		1,384		22		455		66		(1,034	)		(75	)		284			NM
Loans and leases and loans held for saleB	$	130,789	$	122,418	$	119,895	$	119,043	$	118,867	$	8,371			7	%	$	11,922			10	%
DEPOSITS
Demand	$	32,398	$	29,233	$	29,939	$	28,192	$	28,383	$	3,165			11	%	$	4,015			14	%
Checking with interest		25,358		24,840		24,403		25,021		23,482		518			2			1,876			8
Regular savings		14,702		13,779		13,479		13,495		13,239		923			7			1,463			11
Money market accounts		42,972		38,725		36,826		35,329		35,972		4,247			11			7,000			19
Term deposits		18,045		18,736		20,067		21,967		22,840		(691	)		(4	)		(4,795	)		(21	)
Total deposits	$	133,475	$	125,313	$	124,714	$	124,004	$	123,916	$	8,162			7	%	$	9,559			8	%

7

AVERAGE BALANCE SHEETS

(in millions)

	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$			%			$			%
ASSETS
Interest-bearing cash and due from banks and deposits in banks	$	1,859		$	1,970		$	1,474		$	1,229		$	1,497		($	111	)		(6	%)	$	362			24	%
Taxable investment securities		25,339			25,305			25,635			25,620			25,136			34			—			203			1
Non-taxable investment securities		4			5			5			5			5			(1	)		(20	)		(1	)		(20	)
Total investment securities		25,343			25,310			25,640			25,625			25,141			33			—			202			1
Investment securities and interest-bearing deposits		27,202			27,280			27,114			26,854			26,638			(78	)		—			564			2
Commercial		43,152			42,012			41,476			41,755			41,562			1,140			3			1,590			4
Commercial real estate		13,876			13,103			12,892			13,379			13,272			773			6			604			5
Leases		2,482			2,546			2,615			2,745			2,873			(64	)		(3	)		(391	)		(14	)
Total commercial loans and leases		59,510			57,661			56,983			57,879			57,707			1,849			3			1,803			3
Residential mortgagesB		18,866			19,495			19,405			19,232			19,094			(629	)		(3	)		(228	)		(1	)
Home equityD		13,042			13,265			13,501			13,754			14,075			(223	)		(2	)		(1,033	)		(7	)
Automobile		12,173			12,099			12,036			11,984			12,070			74			1			103			1
Education		10,610			9,888			9,459			9,235			9,069			722			7			1,541			17
Other retailE		6,854			6,497			5,873			5,699			5,634			357			5			1,220			22
Total retail loansB		61,545			61,244			60,274			59,904			59,942			301			—			1,603			3
Total loans and leasesB		121,055			118,905			117,257			117,783			117,649			2,150			2			3,406			3
Loans held for sale, at fair value		1,890			2,209			1,970			1,528			1,035			(319	)		(14	)		855			83
Other loans held for sale		799			517			134			158			191			282			55			608			NM
Total interest-earning assetsB		150,946			148,911			146,475			146,323			145,513			2,035			1			5,433			4
Allowance for loan and lease losses		(1,708	)		(1,260	)		(1,226	)		(1,247	)		(1,243	)		(448	)		(36	)		(465	)		(37	)
Goodwill		7,046			7,044			7,044			7,040			7,018			2			—			28			—
Other noninterest-earning assetsB		10,893			9,951			9,817			9,373			9,127			942			9			1,766			19
TOTAL ASSETS	$	167,177		$	164,646		$	162,110		$	161,489		$	160,415		$	2,531			2	%	$	6,762			4	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Checking with interest	$	24,612		$	23,545		$	23,422		$	23,919		$	22,987		$	1,067			5	%	$	1,625			7	%
Money market accounts		39,839			38,809			37,161			35,228			35,209			1,030			3			4,630			13
Regular savings		14,201			13,582			13,442			13,324			12,626			619			5			1,575			12
Term deposits		18,616			19,788			20,951			22,292			21,127			(1,172	)		(6	)		(2,511	)		(12	)
Total interest-bearing deposits		97,268			95,724			94,976			94,763			91,949			1,544			2			5,319			6
Short-term borrowed fundsC		644			504			600			863			698			140			28			(54	)		(8	)
FHLB advances		5,138			3,259			2,478			3,155			5,694			1,879			58			(556	)		(10	)
Senior debt		7,263			7,914			8,000			7,573			7,391			(651	)		(8	)		(128	)		(2	)
Subordinated debt and other debt		1,656			1,657			1,656			1,658			1,651			(1	)		—			5			—
Total long-term borrowed funds		14,057			12,830			12,134			12,386			14,736			1,227			10			(679	)		(5	)
Total borrowed funds		14,701			13,334			12,734			13,249			15,434			1,367			10			(733	)		(5	)
Total interest-bearing liabilities		111,969			109,058			107,710			108,012			107,383			2,911			3			4,586			4
Total demand deposits		29,362			29,928			28,945			28,389			28,465			(566	)		(2	)		897			3
Other liabilities		4,053			3,819			3,789			3,536			3,584			234			6			469			13
TOTAL LIABILITIES		145,384			142,805			140,444			139,937			139,432			2,579			2			5,952			4
STOCKHOLDERS’ EQUITY		21,793			21,841			21,666			21,552			20,983			(48	)		—			810			4
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	167,177		$	164,646		$	162,110		$	161,489		$	160,415		$	2,531			2	%	$	6,762			4	%
Memo: Total loans and leases, including loans held for sale	$	123,744		$	121,631		$	119,361		$	119,469		$	118,875		$	2,113			2	%	$	4,869			4	%
Total deposits (interest-bearing and demand)	$	126,630		$	125,652		$	123,921		$	123,152		$	120,414		$	978			1	%	$	6,216			5	%
Total average tangible common equity	$	13,484		$	13,660		$	13,788		$	13,670		$	13,233		($	176	)		(1	%)	$	251			2	%

8

AVERAGE ANNUALIZED YIELDS AND RATES

(in millions, except rates)

	QUARTERLY TRENDS
	1Q20					4Q19					3Q19					2Q19					1Q19
	Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense
INTEREST-EARNING ASSETS
Interest-bearing cash and due from banks and deposits in banks		1.12	%	$	5		1.49	%	$	7		2.09	%	$	8		2.16	%	$	7		2.19	%	$	8
Taxable investment securities		2.32			147		2.47			159		2.38			153		2.56			164		2.64			166
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—
Total investment securities		2.32			147		2.47			159		2.38			153		2.56			164		2.64			166
Investment securities and interest-bearing deposits					152					166					161					171					174
Commercial		3.82			417		3.95			424		4.17			442		4.45			471		4.43			460
Commercial real estate		3.96			139		4.26			142		4.70			155		4.91			166		4.98			165
Leases		2.83			18		2.77			18		2.85			19		2.89			19		2.85			21
Total commercial loans and leases		3.81			574		3.97			584		4.23			616		4.48			656		4.48			646
Residential mortgagesB		3.47			164		3.40			165		3.53			171		3.65			176		3.67			175
Home equityD		4.69			152		4.73			159		5.24			178		5.28			180		5.27			183
Automobile		4.34			131		4.32			132		4.25			129		4.19			125		4.04			120
Education		5.64			149		5.76			143		5.89			141		5.97			137		5.99			134
Other retailE		7.77			132		7.83			129		8.21			121		8.24			118		8.87			123
Total retail loansB		4.75			728		4.72			728		4.88			740		4.92			736		4.96			735
Total loans and leasesB		4.29			1,302		4.36			1,312		4.56			1,356		4.71			1,392		4.72			1,381
Loans held for sale, at fair value		3.28			15		3.38			18		3.71			19		3.93			15		4.35			11
Other loans held for sale		4.31			9		3.89			5		6.42			2		5.67			2		7.03			4
Total interest-earning assetsB		3.91			1,478		3.98			1,501		4.15			1,538		4.30			1,580		4.34			1,570
INTEREST-BEARING LIABILITIES
Checking with interest		0.60			37		0.71			42		0.88			52		0.96			57		0.91			52
Money market accounts		0.94			93		1.12			110		1.24			116		1.30			114		1.26			110
Regular savings		0.51			18		0.52			17		0.59			20		0.62			21		0.56			17
Term deposits		1.70			79		1.88			94		2.05			109		2.09			116		2.08			108
Total interest-bearing deposits		0.94			227		1.09			263		1.24			297		1.30			308		1.27			287
Short-term borrowed fundsC		0.76			1		1.07			2		1.43			2		1.81			4		1.37			2
FHLB advances		1.87			24		1.98			16		1.92			12		2.63			21		2.70			39
Senior debt		2.69			49		3.02			60		3.21			65		3.41			64		3.53			65
Subordinated debt and other debt		4.13			17		4.20			17		4.13			17		4.08			17		4.06			17
Total long-term borrowed funds		2.56			90		2.91			93		3.07			94		3.30			102		3.27			121
Total borrowed funds		2.48			91		2.84			95		3.00			96		3.20			106		3.18			123
Total interest-bearing liabilities		1.14			318		1.30			358		1.45			393		1.54			414		1.54			410
INTEREST RATE SPREAD		2.77					2.68					2.70					2.77					2.80
NET INTEREST MARGIN AND NET INTEREST INCOME		3.09	%	$	1,160		3.04	%	$	1,143		3.10	%	$	1,145		3.20	%	$	1,166		3.23	%	$	1,160
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1		3.10	%	$	1,164		3.06	%	$	1,147		3.12	%	$	1,150		3.21	%	$	1,172		3.25	%	$	1,166
Memo: Total deposit costs		0.72	%	$	227		0.83	%	$	263		0.95	%	$	297		1.00	%	$	308		0.97	%	$	287

¹  Net interest income and net interest margin is presented on a fully taxable-equivalent (“FTE”) basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.

9

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(in millions, except ratio data)

	QUARTERLY TRENDS
CONSUMER BANKING																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
Net interest income	$	793		$	796		$	799		$	799		$	788		($	3	)		—	%	$	5			1	%
Noninterest income		357			296			336			277			247			61			21			110			45
Total revenue		1,150			1,092			1,135			1,076			1,035			58			5			115			11
Noninterest expense		738			718			718			715			700			20			3			38			5
Profit before provision for credit losses		412			374			417			361			335			38			10			77			23
Provision for credit losses		97			97			83			78			67			—			—			30			45
Income before income tax expense		315			277			334			283			268			38			14			47			18
Income tax expense		79			68			83			70			66			11			16			13			20
Net income	$	236		$	209		$	251		$	213		$	202		$	27			13	%	$	34			17	%
AVERAGE BALANCES
Total assets	$	68,415		$	68,069		$	66,365		$	65,485		$	65,007		$	346			1	%	$	3,408			5	%
Total loans and leases1,B		65,343			65,157			63,553			62,678			62,163			186			—			3,180			5
Deposits		85,228			85,477			85,595			85,660			82,569			(249	)		—			2,659			3
Interest-earning assetsB		65,393			65,208			63,605			62,731			62,216			185			—			3,177			5
KEY METRICS
Net interest margin		4.88	%		4.85	%		4.99	%		5.11	%		5.14	%		3	bps					(26	) bps
Efficiency ratio		64.16			65.74			63.28			66.43			67.62			(158	) bps					(346	) bps
Loans-to-deposits ratio (period-end balances)B		72.94			74.15			73.61			71.13			71.17			(121	) bps					177	bps
Loans-to-deposits ratio (average balances)B		74.07			73.37			72.11			71.57			74.27			70	bps					(20	) bps
Return on average total tangible assets		1.39			1.22			1.50			1.31			1.26			17	bps					13	bps

¹  Includes loans held for sale.

10

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED

(in millions, except ratio data)

	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
MORTGAGE BANKING FEES
Production revenue	$	136		$	61		$	80		$	49		$	31		$	75			123	%	$	105			NM
Mortgage servicing revenue		17			16			12			9			14			1			6			3			21
MSR valuation changes, net of hedge impact		6			4			25			4			(2	)		2			50			8			NM
Total mortgage banking fees	$	159		$	81		$	117		$	62		$	43		$	78			96	%	$	116			NM
Gain on sale of secondary originations		2.36	%		0.98	%		1.40	%		1.13	%		1.28	%		138	bps					108	bps
RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$	2,523		$	3,196		$	2,771		$	2,115		$	1,313		($	673	)		(21	%)	$	1,210			92	%
Third Party		4,813			5,750			5,080			3,921			2,260			(937	)		(16	)		2,553			113
Total	$	7,336		$	8,946		$	7,851		$	6,036		$	3,573		($	1,610	)		(18	%)	$	3,763			105	%
Originated for sale		83	%		80	%		80	%		81	%		81	%		300	bps					200	bps
Originated for investment		17			20			20			19			19			(300	) bps					(200	) bps
Total		100	%		100	%		100	%		100	%		100	%
MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$	79,157		$	77,526		$	74,610		$	72,518		$	70,847		$	1,631			2	%	$	8,310			12	%
Owned loans serviced		21,057			20,831			19,969			19,258			18,437			226			1			2,620			14
Total	$	100,214		$	98,357		$	94,579		$	91,776		$	89,284		$	1,857			2	%	$	10,930			12	%
MSR CARRYING VALUE1
MSR at fair value	$	577		$	642		$	510		$	531		$	563		($	65	)		(10	%)	$	14			2	%
MSR at lower of cost or market		—			182			177			189			212			(182	)		(100	)		(212	)		(100	)
Total	$	577		$	824		$	687		$	720		$	775		($	247	)		(30	%)	($	198	)		(26	%)

¹  Beginning in the first quarter of 2020, mortgage servicing rights previously accounted for at lower of cost or market are now accounted for at fair value.

11

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)

	QUARTERLY TRENDS
COMMERCIAL BANKING																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
Net interest income	$	365		$	363		$	360		$	371		$	372		$	2			1	%	($	7	)		(2	%)
Noninterest income		125			175			133			149			150			(50	)		(29	)		(25	)		(17	)
Total revenue		490			538			493			520			522			(48	)		(9	)		(32	)		(6	)
Noninterest expense		221			219			213			217			209			2			1			12			6
Profit before provision for credit losses		269			319			280			303			313			(50	)		(16	)		(44	)		(14	)
Provision for credit losses		43			24			27			25			21			19			79			22			105
Income before income tax expense		226			295			253			278			292			(69	)		(23	)		(66	)		(23	)
Income tax expense		47			64			57			62			65			(17	)		(27	)		(18	)		(28	)
Net income	$	179		$	231		$	196		$	216		$	227		($	52	)		(23	%)	($	48	)		(21	%)
AVERAGE BALANCES
Total assets	$	59,005		$	56,407		$	55,614		$	56,135		$	55,630		$	2,598			5	%	$	3,375			6	%
Total loans and leases1		56,555			54,523			53,814			54,653			54,436			2,032			4			2,119			4
Deposits		33,545			32,715			31,491			30,273			29,823			830			3			3,722			12
Interest-earning assets		57,016			54,905			54,087			54,950			54,724			2,111			4			2,292			4
KEY METRICS
Net interest margin		2.57	%		2.62	%		2.64	%		2.71	%		2.76	%		(5	) bps					(19)	bps
Efficiency ratio		45.06			40.60			43.35			41.58			40.11			446	bps					495	bps
Loans-to-deposits ratio (period-end balances)		164.10			165.24			163.62			173.48			180.53			(114	) bps					(1,643	) bps
Loans-to-deposits ratio (average balances)		167.18			165.80			170.01			179.49			181.23			138	bps					(1,405	) bps
Return on average total tangible assets		1.22			1.63			1.40			1.54			1.66			(41	) bps					(44	) bps

¹  Includes loans held for sale.

12

SEGMENT FINANCIAL HIGHLIGHTS – OTHER

(in millions)

	QUARTERLY TRENDS
OTHER1																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$			%			$			%
Net interest income	$	2		($	16	)	($	14	)	($	4	)	$	—		$	18			NM		$	2			100	%
Noninterest income		15			23			24			36			31			(8	)		(35	)		(16	)		(52	)
Total revenue		17			7			10			32			31			10			143			(14	)		(45	)
Noninterest expense		53			49			42			19			28			4			8			25			89
(Loss) profit before provision for credit losses		(36	)		(42	)		(32	)		13			3			6			14			(39	)		NM
Provision for credit losses		460			(11	)		(9	)		(6	)		(3	)		471			NM			463			NM
(Loss) income before income tax benefit		(496	)		(31	)		(23	)		19			6			(465	)		NM			(502	)		NM
Income tax benefit		(115	)		(41	)		(25	)		(5	)		(4	)		(74	)		(180	)		(111	)		NM
Net (loss) income	($	381	)	$	10		$	2		$	24		$	10		($	391	)		NM		($	391	)		NM
AVERAGE BALANCES
Total assets	$	39,757		$	40,170		$	40,131		$	39,869		$	39,778		($	413	)		(1	%)	($	21	)		—	%
Total loans and leases2		1,846			1,951			1,994			2,138			2,276			(105	)		(5	)		(430	)		(19	)
Deposits		7,857			7,460			6,835			7,219			8,022			397			5			(165	)		(2	)
Interest-earning assets		28,537			28,798			28,783			28,642			28,573			(261	)		(1	)		(36	)		—

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

²  Includes loans held for sale.

13

CREDIT-RELATED INFORMATION

(in millions, except ratio data)

	AS OF															MARCH 31, 2020 CHANGE
	Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Dec 31, 2019						Mar 31, 2019
																$/bps			%			$/bps			%
NONACCRUAL LOANS AND LEASES1
Commercial	$	305		$	240		$	228		$	198		$	208		$	65			27	%	$	97			47	%
Commercial real estate		8			2			49			4			4			6			NM			4			100
Leases		1			3			4			17			—			(2	)		(67	)		1			100
Total commercial loans and leases		314			245			281			219			212			69			28			102			48
Residential mortgages2		101			93			91			98			102			8			9			(1	)		(1	)
Home equityD		242			246			247			278			288			(4	)		(2	)		(46	)		(16	)
Automobile		69			67			69			62			70			2			3			(1	)		(1	)
Education		21			18			17			40			43			3			17			(22	)		(51	)
Other retailE		33			34			32			30			29			(1	)		(3	)		4			14
Total retail loans		466			458			456			508			532			8			2			(66	)		(12	)
Nonaccrual loans and leases		780			703			737			727			744			77			11			36			5
Repossessed assets		44			45			40			32			34			(1	)		(2	)		10			29
Nonaccrual loans and leases and repossessed assets	$	824		$	748		$	777		$	759		$	778		$	76			10	%	$	46			6	%
NONACCRUAL LOANS AND LEASES BY PRODUCT3
Commercial	$	314		$	245		$	281		$	219		$	212		$	69			28	%	$	102			48	%
Retail		510			503			496			540			566			7			1			(56	)		(10	)
Total nonaccrual loans and leases	$	824		$	748		$	777		$	759		$	778		$	76			10	%	$	46			6	%
ASSET QUALITY RATIOS
Allowance for credit losses to loans and leasesB		1.73	%		1.09	%		1.11	%		1.13	%		1.13	%		64 bps						60 bps
Allowance for credit losses to nonaccrual loans and leases		283.48			184.31			177.42			181.54			178.68			NM						NM
Nonaccrual loans and leases to loans and leasesB		0.61			0.59			0.63			0.62			0.63			2						(2	)

1 Beginning in the first quarter of 2020 and upon the adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, nonperforming loans and leases are now referred to as nonaccrual loans and leases and other nonperforming assets are referred to as repossessed assets.

2 Beginning in the fourth quarter of 2019, nonaccrual balances exclude both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase. Prior periods have been adjusted to exclude partially guaranteed amounts to conform with the current period presentation.

3 Nonaccrual loans and leases by product includes repossessed assets.

14

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)

	AS OF										MARCH 31, 2020 CHANGE
	Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		June 30, 2019		Mar 31, 2019		Dec 31, 2019						Mar 31, 2019
											$/bps			%			$/bps			%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial	$	—	$	2	$	1	$	4	$	1	($	2	)		(100	%)	($	1	)		(100	%)
Leases		—		—		1		1		—		—			—			—			—
Total commercial loans and leases		—		2		2		5		1		(2	)		(100	)		(1	)		(100	)
Residential mortgages		14		13		15		14		20		1			8			(6	)		(30	)
Education		2		2		3		3		2		—			—			—			—
Other retailE		11		8		10		9		9		3			38			2			22
Total retail loans		27		23		28		26		31		4			17			(4	)		(13	)
Total loans and leases		27		25		30		31		32		2			8			(5	)		(16	)

15

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)

	QUARTERLY TRENDS
														1Q20 Change
	1Q20			4Q19		3Q19			2Q19		1Q19			4Q19						1Q19
														$			%			$			%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial	$	47		$	24	$	20		$	40	$	3		$	23			96	%	$	44			NM
Commercial real estate		—			9		10			—		20			(9	)		(100	)		(20	)		(100	)
Leases		—			1		5			5		3			(1	)		(100	)		(3	)		(100	)
Total commercial loans and leases		47			34		35			45		26			13			38			21			81
Residential mortgages		1			2		2			2		2			(1	)		(50	)		(1	)		(50	)
Home equityD		8			10		11			11		7			(2	)		(20	)		1			14
Automobile		39			38		37			30		38			1			3			1			3
Education		18			20		18			18		16			(2	)		(10	)		2			13
Other retailE		61			58		56			50		49			3			5			12			24
Total retail loans		127			128		124			111		112			(1	)		(1	)		15			13
Total gross charge-offs	$	174		$	162	$	159		$	156	$	138		$	12			7	%	$	36			26	%
GROSS RECOVERIES
Commercial	$	3		$	7	$	3		$	12	$	2		($	4	)		(57	%)	$	1			50	%
Commercial real estate		—			—		—			—		—			—			—			—			—
Leases		—			—		—			—		—			—			—			—			—
Total commercial loans and leases		3			7		3			12		2			(4	)		(57	)		1			50
Residential mortgages		1			1		1			2		5			—			—			(4	)		(80	)
Home equityD		11			10		12			10		17			1			10			(6	)		(35	)
Automobile		12			11		15			16		15			1			9			(3	)		(20	)
Education		4			4		4			4		4			—			—			—			—
Other retailE		6			7		11			6		6			(1	)		(14	)		—			—
Total retail loans		34			33		43			38		47			1			3			(13	)		(28	)
Total gross recoveries	$	37		$	40	$	46		$	50	$	49		($	3	)		(8	%)	($	12	)		(24	%)
NET CHARGE-OFFS (RECOVERIES)
Commercial	$	44		$	17	$	17		$	28	$	1		$	27			159	%	$	43			NM
Commercial real estate		—			9		10			—		20			(9	)		(100	)		(20	)		(100	)
Leases		—			1		5			5		3			(1	)		(100	)		(3	)		(100	)
Total commercial loans and leases		44			27		32			33		24			17			63			20			83
Residential mortgages		—			1		1			—		(3	)		(1	)		(100	)		3			100
Home equityD		(3	)		—		(1	)		1		(10	)		(3	)		(100	)		7			70
Automobile		27			27		22			14		23			—			—			4			17
Education		14			16		14			14		12			(2	)		(13	)		2			17
Other retailE		55			51		45			44		43			4			8			12			28
Total retail loans		93			95		81			73		65			(2	)		(2	)		28			43
Total net charge-offs	$	137		$	122	$	113		$	106	$	89		$	15			12	%	$	48			54	%

16

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)

	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.41	%		0.16	%		0.16	%		0.27	%		0.01	%		25 bps						40 bps
Commercial real estate		—			0.26			0.31			—			0.62			(26) bps						(62) bps
Leases		0.07			0.19			0.80			0.72			0.42			(12) bps						(35) bps
Total commercial loans and leases		0.30			0.19			0.22			0.23			0.17			11  bps						13 bps
Residential mortgages		0.01			0.02			0.01			0.01			(0.07	)		(1) bps						8 bps
Home equityD		(0.10	)		0.02			(0.04	)		0.01			(0.26	)		(12) bps						16 bps
Automobile		0.88			0.85			0.74			0.49			0.77			3 bps						11 bps
Education		0.55			0.65			0.58			0.62			0.51			(10) bps						4 bps
Other retailE		3.21			3.09			3.08			3.11			3.06			12 bps						15 bps
Total retail loans		0.61			0.61			0.53			0.49			0.44			—   bps						17 bps
Total loans and leases		0.46	%		0.41	%		0.38	%		0.36	%		0.31	%		5 bps						15 bps
Memo: Average loans
Commercial	$	43,152		$	42,012		$	41,476		$	41,755		$	41,562		$	1,140			3	%	$	1,590			4	%
Commercial real estate		13,876			13,103			12,892			13,379			13,272			773			6			604			5
Leases		2,482			2,546			2,615			2,745			2,873			(64	)		(3	)		(391	)		(14	)
Total commercial loans and leases		59,510			57,661			56,983			57,879			57,707			1,849			3			1,803			3
Residential mortgages		18,866			19,495			19,405			19,232			19,094			(629	)		(3	)		(228	)		(1	)
Home equityD		13,042			13,265			13,501			13,754			14,075			(223	)		(2	)		(1,033	)		(7	)
Automobile		12,173			12,099			12,036			11,984			12,070			74			1			103			1
Education		10,610			9,888			9,459			9,235			9,069			722			7			1,541			17
Other retailE		6,854			6,497			5,873			5,699			5,634			357			5			1,220			22
Total retail loans		61,545			61,244			60,274			59,904			59,942			301			—			1,603			3
Total loans and leases	$	121,055		$	118,905		$	117,257		$	117,783		$	117,649		$	2,150			2	%	$	3,406			3	%

17

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)

	QUARTERLY TRENDS
															1Q20 Change
	1Q20			4Q19			3Q19			2Q19		1Q19			4Q19						1Q19
															$			%			$			%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$	1,252		$	1,263		$	1,227		$	1,245	$	1,242		($	11	)		(1	%)	$	10			1	%
Cumulative effect of change in accounting principle:
Commercial		(176	)		—			—			—		—			(176	)		(100	)		(176	)		(100	)
Retail		629			—			—			—		—			629			100			629			100
Total cumulative effect of change in accounting principle		453			—			—			—		—			453			100			453			100
Allowance for loan and lease losses - beginning, adjusted		1,705			1,263			1,227			1,245		1,242			442			35			463			37
Charge-offs:
Commercial		47			34			35			45		26			13			38			21			81
Retail		127			128			124			111		112			(1	)		(1	)		15			13
Total charge-offs		174			162			159			156		138			12			7			36			26
Recoveries:
Commercial		3			7			3			12		2			(4	)		(57	)		1			50
Retail		34			33			43			38		47			1			3			(13	)		(28	)
Total recoveries		37			40			46			50		49			(3	)		(8	)		(12	)		(24	)
Net charge-offs		137			122			113			106		89			15			12			48			54
Provision for loan and lease losses:
Commercial		298			(11	)		64			22		25			309			NM			273			NM
Retail		305			122			85			66		67			183			150			238			NM
Total provision for loan and lease losses		603			111			149			88		92			492			NM			511			NM
Allowance for loan and lease losses - ending	$	2,171		$	1,252		$	1,263		$	1,227	$	1,245		$	919			73	%	$	926			74	%
Reserve for unfunded lending commitments - beginning	$	44		$	45		$	93		$	84	$	91		($	1	)		(2	%)	($	47	)		(52	%)
Cumulative effect of change in accounting principle		(2	)		—			—			—		—			(2	)		(100	)		(2	)		(100	)
Provision for unfunded lending commitments		(3	)		(1	)		(48	)		9		(7	)		(2	)		(200	)		4			57
Reserve for unfunded lending commitments - ending	$	39		$	44		$	45		$	93	$	84		($	5	)		(11	%)	($	45	)		(54	%)
Total allowance for credit losses - ending	$	2,210		$	1,296		$	1,308		$	1,320	$	1,329		$	914			71	%	$	881			66	%
Memo: Total allowance for credit losses by product
Commercial	$	790		$	718		$	757		$	773	$	775		$	72			10	%	$	15			2	%
Retail		1,420			578			551			547		554			842			146			866			156
Total allowance for credit losses	$	2,210		$	1,296		$	1,308		$	1,320	$	1,329		$	914			71	%	$	881			66	%

18

CAPITAL AND RATIOS

(in millions, except ratio data)

	AS OF
																MARCH 31, 2020 CHANGE
	Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Dec 31, 2019						Mar 31, 2019
																$			%			$			%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$	14,007		$	14,304		$	14,416		$	14,629		$	14,442		($	297	)		(2	%)	($	435	)		(3	%)
Tier 1 capital		15,577			15,874			15,549			15,762			15,574			(297	)		(2	)		3			—
Total capital		18,592			18,542			18,237			18,582			18,403			50			—			189			1
Risk-weighted assets		148,946			142,915			140,136			138,879			137,246			6,031			4			11,700			9
Adjusted average assets1		161,715			158,782			156,355			155,956			155,171			2,933			2			6,544			4
CET1 capital ratio		9.4	%		10.0	%		10.3	%		10.5	%		10.5	%
Tier 1 capital ratio		10.5			11.1			11.1			11.3			11.3
Total capital ratio		12.5			13.0			13.0			13.4			13.4
Tier 1 leverage ratio		9.6			10.0			9.9			10.1			10.0
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders’ equity	$	20,380		$	20,631		$	20,718		$	20,884		$	20,399		($	251	)		(1	%)	($	19	)		—	%
Less: Goodwill		7,050			7,044			7,044			7,040			7,040			6			—			10			—
Less: Other intangible assets		66			68			71			74			80			(2	)		(3	)		(14	)		(18	)
Add: Deferred tax liabilities2		375			374			373			371			370			1			—			5			1
Total tangible common equity	$	13,639		$	13,893		$	13,976		$	14,141		$	13,649		($	254	)		(2	%)	($	10	)		—	%
TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders’ equity	$	20,223		$	20,400		$	20,533		$	20,420		$	19,942		($	177	)		(1	%)	$	281			1	%
Less: Goodwill		7,046			7,044			7,044			7,040			7,018			2			—			28			—
Less: Other intangible assets		67			69			73			80			59			(2	)		(3	)		8			14
Add: Deferred tax liabilities2		374			373			372			370			368			1			—			6			2
Total tangible common equity	$	13,484		$	13,660		$	13,788		$	13,670		$	13,233		($	176	)		(1	%)	$	251			2	%
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	7,050		$	7,044		$	7,044		$	7,040		$	7,040		$	6			—	%	$	10			—	%
Other intangible assets		66			68			71			74			80			(2	)		(3	)		(14	)		(18	)
Total intangible assets	$	7,116		$	7,112		$	7,115		$	7,114		$	7,120		$	4			—	%	($	4	)		—	%

¹  Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible 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.

²  Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

19

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

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

Key Performance Metrics:

Our Management uses certain key performance metrics (KPMs) to gauge our progress against strategic and operational goals, as well as to compare our performance against peers. The KPMs are referred to in our quarterly earnings materials and other financial reports filed with the Securities and Exchange Commission. The KPMs include:

• Return on average tangible common equity (ROTCE);

• Efficiency ratio;

• Operating leverage; and

• Common equity tier 1 capital ratio.

Established targets for the KPMs are based on Management-reporting results which are currently referred to by the Company as “Underlying” results. We believe that Underlying results, which exclude notable items, provide the best representation of our underlying financial progress toward the KPMs as the results exclude items that our Management does not consider indicative of our on-going financial performance. KPMs that reflect Underlying results are considered non-GAAP financial measures.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures denoted as Underlying results. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. The following tables present reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

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 such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.

20

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

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

		QUARTERLY TRENDS
																	1Q20 Change
		1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																	$			%			$			%
Noninterest income, Underlying:
Noninterest income (GAAP)	A	$	497		$	494		$	493		$	462		$	428		$	3			1	%	$	69			16	%
Less: Notable items			—			—			—			—			—			—			—			—			—
Noninterest income, Underlying (non-GAAP)	B	$	497		$	494		$	493		$	462		$	428		$	3			1	%	$	69			16	%
Total revenue, Underlying:
Total revenue (GAAP)	C	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1	%	$	69			4	%
Less: Notable items			—			—			—			—			—			—			—			—			—
Total revenue, Underlying (non-GAAP)	D	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1	%	$	69			4	%
Noninterest expense, Underlying:
Noninterest expense (GAAP)	E	$	1,012		$	986		$	973		$	951		$	937		$	26			3	%	$	75			8	%
Less: Notable items			33			37			19			7			5			(4	)		(11	)		28			NM
Noninterest expense, Underlying (non-GAAP)	F	$	979		$	949		$	954		$	944		$	932		$	30			3	%	$	47			5	%
Pre-provision profit:
Total revenue (GAAP)	C	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1	%	$	69			4	%
Less: Noninterest expense (GAAP)	E		1,012			986			973			951			937			26			3			75			8
Pre-provision profit (GAAP)		$	645		$	651		$	665		$	677		$	651		($	6	)		(1	%)	($	6	)		(1	%)
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	D	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1	%	$	69			4	%
Less: Noninterest expense, Underlying (non-GAAP)	F		979			949			954			944			932			30			3			47			5
Pre-provision profit, Underlying (non-GAAP)		$	678		$	688		$	684		$	684		$	656		($	10	)		(1	%)	$	22			3	%
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	G	$	45		$	541		$	564		$	580		$	566		($	496	)		(92	%)	($	521	)		(92	%)
Less: Expense before income tax benefit related to notable items			(33	)		(37	)		(19	)		(7	)		(5	)		4			11			(28	)		NM
Income before income tax expense, Underlying (non-GAAP)	H	$	78		$	578		$	583		$	587		$	571		($	500	)		(87	%)	($	493	)		(86	%)
Income tax expense, Underlying:
Income tax expense (GAAP)	I	$	11		$	91		$	115		$	127		$	127		($	80	)		(88	%)	($	116	)		(91	%)
Less: Income tax benefit related to notable items			(8	)		(33	)		(15	)		(2	)		(1	)		25			76			(7	)		NM
Income tax expense, Underlying (non-GAAP)	J	$	19		$	124		$	130		$	129		$	128		($	105	)		(85	%)	($	109	)		(85	%)
Net income, Underlying:
Net income (GAAP)	K	$	34		$	450		$	449		$	453		$	439		($	416	)		(92	%)	($	405	)		(92	%)
Add: Notable items, net of income tax benefit			25			4			4			5			4			21			NM			21			NM
Net income, Underlying (non-GAAP)	L	$	59		$	454		$	453		$	458		$	443		($	395	)		(87	%)	($	384	)		(87	%)
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	M	$	12		$	427		$	432		$	435		$	424		($	415	)		(97	%)	($	412	)		(97	%)
Add: Notable items, net of income tax benefit			25			4			4			5			4			21			NM			21			NM
Net income available to common stockholders, Underlying (non-GAAP)	N	$	37		$	431		$	436		$	440		$	428		($	394	)		(91	%)	($	391	)		(91	%)

21

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

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

		QUARTERLY TRENDS
																	1Q20 Change
		1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																	$/bps			%			$/bps		%
Operating leverage:
Total revenue (GAAP)	C	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1.30	%	$	69		4.35	%
Less: Noninterest expense (GAAP)	E		1,012			986			973			951			937			26			2.68			75		8.06
Operating leverage																					(1.38	%)				(3.71	%)
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	D	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1.30	%	$	69		4.35	%
Less: Noninterest expense, Underlying (non-GAAP)	F		979			949			954			944			932			30			3.16			47		5.09
Operating leverage, Underlying (non-GAAP)																					(1.86	%)				(0.74	%)
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	E/C		61.10	%		60.28	%		59.40	%		58.41	%		59.00	%		82 bps						210 bps
Efficiency ratio, Underlying (non-GAAP)	F/D		59.08			58.02			58.22			58.02			58.67			106 bps						41 bps
Noninterest income as a % of total revenue, Underlying:
Noninterest income as a % of total revenue	A/C		30	%		30	%		30	%		28	%		27	%		—   bps						300 bps
Noninterest income as a % of total revenue, Underlying	B/D		30			30			30			28			27			—   bps						300 bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	I/G		24.13	%		16.76	%		20.46	%		21.86	%		22.42	%		737 bps						171 bps
Effective income tax rate, Underlying (non-GAAP)	J/H		24.52			21.52			22.29			21.89			22.44			300 bps						208 bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	O	$	20,223		$	20,400		$	20,533		$	20,420		$	19,942		($	177	)		(1	%)	$	281		1	%
Return on average common equity	M/O		0.24	%		8.30	%		8.35	%		8.54	%		8.62	%		(806) bps						(838) bps
Return on average common equity, Underlying (non-GAAP)	N/O		0.74			8.36			8.45			8.63			8.71			(762) bps						(797) bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	O	$	20,223		$	20,400		$	20,533		$	20,420		$	19,942		($	177	)		(1	%)	$	281		1	%
Less: Average goodwill (GAAP)			7,046			7,044			7,044			7,040			7,018			2			—			28		—
Less: Average other intangibles (GAAP)			67			69			73			80			59			(2	)		(3	)		8		14
Add: Average deferred tax liabilities related to goodwill (GAAP)			374			373			372			370			368			1			—			6		2
Average tangible common equity	P	$	13,484		$	13,660		$	13,788		$	13,670		$	13,233		($	176	)		(1	%)	$	251		2	%
Return on average tangible common equity	M/P		0.36	%		12.39	%		12.44	%		12.75	%		13.00	%		(1,203) bps						(1,264) bps
Return on average tangible common equity, Underlying (non-GAAP)	N/P		1.10			12.49			12.58			12.89			13.12			(1,139) bps						(1,202) bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	Q	$	167,177		$	164,646		$	162,110		$	161,489		$	160,415		$	2,531			2	%	$	6,762		4	%
Return on average total assets	K/Q		0.08	%		1.08	%		1.10	%		1.13	%		1.11	%		(100) bps						(103) bps
Return on average total assets, Underlying (non-GAAP)	L/Q		0.14			1.09			1.11			1.14			1.12			(95) bps						(98) bps

22

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

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

		QUARTERLY TRENDS
																	1Q20 Change
		1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																	$/bps			%			$/bps			%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	Q	$	167,177		$	164,646		$	162,110		$	161,489		$	160,415		$	2,531			2	%	$	6,762			4	%
Less: Average goodwill (GAAP)			7,046			7,044			7,044			7,040			7,018			2			—			28			—
Less: Average other intangibles (GAAP)			67			69			73			80			59			(2	)		(3	)		8			14
Add: Average deferred tax liabilities related to goodwill (GAAP)			374			373			372			370			368			1			—			6			2
Average tangible assets	R	$	160,438		$	157,906		$	155,365		$	154,739		$	153,706		$	2,532			2	%	$	6,732			4	%
Return on average total tangible assets	K/R		0.09	%		1.13	%		1.15	%		1.17	%		1.16	%		(104) bps						(107) bps
Return on average total tangible assets, Underlying (non-GAAP)	L/R		0.15			1.14			1.16			1.19			1.17			(99) bps						(102) bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	S		426,586,533			433,121,083			443,913,525			457,903,826			461,116,723			(6,534,550	)		(2	%)		(34,530,190	)		(7	%)
Common stockholders’ equity (GAAP)		$	20,380		$	20,631		$	20,718		$	20,884		$	20,399		($	251	)		(1	)	($	19	)		—
Less: Goodwill (GAAP)			7,050			7,044			7,044			7,040			7,040			6			—			10			—
Less: Other intangible assets (GAAP)			66			68			71			74			80			(2	)		(3	)		(14	)		(18	)
Add: Deferred tax liabilities related to goodwill (GAAP)			375			374			373			371			370			1			—			5			1
Tangible common equity	T	$	13,639		$	13,893		$	13,976		$	14,141		$	13,649		($	254	)		(2	%)	($	10	)		—	%
Tangible book value per common share	T/S	$	31.97		$	32.08		$	31.48		$	30.88		$	29.60		($	0.11	)		—	%	$	2.37			8	%
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying:
Average common shares outstanding - basic (GAAP)	U		427,718,421			434,684,606			445,703,987			458,154,335			460,713,172			(6,966,185	)		(2	%)		(32,994,751	)		(7	%)
Average common shares outstanding - diluted (GAAP)	V		429,388,855			436,500,829			447,134,595			459,304,224			462,520,680			(7,111,974	)		(2	)		(33,131,825	)		(7	)
Net income per average common share - basic (GAAP)	M/U	$	0.03		$	0.98		$	0.97		$	0.95		$	0.92		($	0.95	)		(97	)	($	0.89	)		(97	)
Net income per average common share - diluted (GAAP)	M/V		0.03			0.98			0.97			0.95			0.92			(0.95	)		(97	)		(0.89	)		(97	)
Net income per average common share - basic, Underlying (non-GAAP)	N/U		0.09			0.99			0.98			0.96			0.93			(0.90	)		(91	)		(0.84	)		(90	)
Net income per average common share - diluted, Underlying (non-GAAP)	N/V		0.09			0.99			0.98			0.96			0.93			(0.90	)		(91	)		(0.84	)		(90	)
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	W	$	0.39		$	0.36		$	0.36		$	0.32		$	0.32		$	0.03			8	%	$	0.07			22	%
Dividend payout ratio	W/(M/U)		1,398	%		37	%		37	%		34	%		35	%		NM						NM
Dividend payout ratio, Underlying (non-GAAP)	W/(N/U)		451			36			37			33			34			NM						NM

23

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

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

	QUARTERLY TRENDS
											1Q20 Change
	1Q20		4Q19		3Q19		2Q19		1Q19		4Q19						1Q19
											$			%			$			%
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$	549	$	502	$	508	$	507	$	509	$	47			9	%	$	40			8	%
Less: Notable items		10		6		5		2		1		4			67			9			NM
Salaries and employee benefits, Underlying (non-GAAP)	$	539	$	496	$	503	$	505	$	508	$	43			9	%	$	31			6	%
Equipment and software expense, Underlying:
Equipment and software expense (GAAP)	$	133	$	133	$	130	$	126	$	125	$	—			—	%	$	8			6	%
Less: Notable items		1		3		—		—		—		(2	)		(67	)		1			100
Equipment and software expense, Underlying (non-GAAP)	$	132	$	130	$	130	$	126	$	125	$	2			2	%	$	7			6	%
Outside services, Underlying:
Outside services (GAAP)	$	135	$	142	$	128	$	118	$	110	($	7	)		(5	%)	$	25			23	%
Less: Notable items		18		20		14		5		4		(2	)		(10	)		14			NM
Outside services, Underlying (non-GAAP)	$	117	$	122	$	114	$	113	$	106	($	5	)		(4	%)	$	11			10	%
Occupancy, Underlying:
Occupancy (GAAP)	$	84	$	88	$	80	$	82	$	83	($	4	)		(5	%)	$	1			1	%
Less: Notable items		4		8		—		—		—		(4	)		(50	)		4			100
Occupancy, Underlying (non-GAAP)	$	80	$	80	$	80	$	82	$	83	$	—			—	%	($	3	)		(4	%)

24

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

(in millions, except ratio data)

		FIRST QUARTER 2020												FOURTH QUARTER 2019												THIRD QUARTER 2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$	236		$	179		($	381	)	$	34		$	209		$	231		$	10		$	450		$	251		$	196		$	2		$	449
Less: Preferred stock dividends			—			—			22			22			—			—			23			23			—			—			17			17
Net income (loss) available to common stockholders	B	$	236		$	179		($	403	)	$	12		$	209		$	231		($	13	)	$	427		$	251		$	196		($	15	)	$	432
Return on average total tangible assets:
Average total assets (GAAP)		$	68,415		$	59,005		$	39,757		$	167,177		$	68,069		$	56,407		$	40,170		$	164,646		$	66,365		$	55,614		$	40,131		$	162,110
Less: Average goodwill (GAAP)			122			48			6,876			7,046			122			46			6,876			7,044			122			46			6,876			7,044
Average other intangibles (GAAP)			43			6			18			67			63			6			—			69			66			7			—			73
Add: Average deferred tax liabilities related to goodwill (GAAP)			1			1			372			374			1			1			371			373			1			1			370			372
Average tangible assets	C	$	68,251		$	58,952		$	33,235		$	160,438		$	67,885		$	56,356		$	33,665		$	157,906		$	66,178		$	55,562		$	33,625		$	155,365
Return on average total tangible assets	A/C		1.39	%		1.22	%		NM			0.09	%		1.22	%		1.63	%		NM			1.13	%		1.50	%		1.40	%		NM			1.15	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	738		$	221		$	53		$	1,012		$	718		$	219		$	49		$	986		$	718		$	213		$	42		$	973
Net interest income (GAAP)			793			365			2			1,160			796			363			(16	)		1,143			799			360			(14	)		1,145
Noninterest income (GAAP)			357			125			15			497			296			175			23			494			336			133			24			493
Total revenue (GAAP)	E	$	1,150		$	490		$	17		$	1,657		$	1,092		$	538		$	7		$	1,637		$	1,135		$	493		$	10		$	1,638
Efficiency ratio	D/E		64.16	%		45.06	%		NM			61.10	%		65.74	%		40.60	%		NM			60.28	%		63.28	%		43.35	%		NM			59.40	%

		SECOND QUARTER 2019												FIRST QUARTER 2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income	A	$	213		$	216		$	24		$	453		$	202		$	227		$	10		$	439
Less: Preferred stock dividends			—			—			18			18			—			—			15			15
Net income (loss) available to common stockholders	B	$	213		$	216		$	6		$	435		$	202		$	227		($	5	)	$	424
Return on average total tangible assets:
Average total assets (GAAP)		$	65,485		$	56,135		$	39,869		$	161,489		$	65,007		$	55,630		$	39,778		$	160,415
Less: Average goodwill (GAAP)			119			45			6,876			7,040			119			23			6,876			7,018
Average other intangibles (GAAP)			73			7			—			80			55			4			—			59
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			370			370			—			—			368			368
Average tangible assets	C	$	65,293		$	56,083		$	33,363		$	154,739		$	64,833		$	55,603		$	33,270		$	153,706
Return on average total tangible assets	A/C		1.31	%		1.54	%		NM			1.17	%		1.26	%		1.66	%		NM			1.16	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	715		$	217		$	19		$	951		$	700		$	209		$	28		$	937
Net interest income (GAAP)			799			371			(4	)		1,166			788			372			—			1,160
Noninterest income (GAAP)			277			149			36			462			247			150			31			428
Total revenue (GAAP)	E	$	1,076		$	520		$	32		$	1,628		$	1,035		$	522		$	31		$	1,588
Efficiency ratio	D/E		66.43	%		41.58	%		NM			58.41	%		67.62	%		40.11	%		NM			59.00	%

25

Appendix

^A  These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations.”

^B  Beginning in the first quarter of 2020, both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase have been reclassified from loans and leases to other assets.

^C  In the first quarter of 2020, we reclassified federal funds purchased and securities sold under agreement to repurchase and other short-term borrowed funds to short-term borrowed funds. Prior periods have been adjusted to conform with the current period presentation.

^D  In the first quarter of 2020, home equity loans, home equity lines of credit, home equity loans serviced by others and home equity lines of credit serviced by others are included in home equity. Prior periods have been adjusted to conform with current period presentation.

^E  In the first quarter of 2020, credit card and other retail are included in other retail. Prior periods have been adjusted to conform with current period presentation.

26

XML

Document and Entity Information	Apr. 27, 2020
Document And Entity Information [Line Items]
Entity Registrant Name	CITIZENS FINANCIAL GROUP INC/RI
Amendment Flag	false
Entity Central Index Key	0000759944
Document Type	8-K
Document Period End Date	Apr. 27, 2020
Entity Incorporation State Country Code	DE
Entity File Number	001-36636
Entity Tax Identification Number	05-0412693
Entity Address, Address Line One	One Citizens Plaza
Entity Address, City or Town	Providence
Entity Address, State or Province	RI
Entity Address, Postal Zip Code	02903
City Area Code	(401)
Local Phone Number	456-7000
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document And Entity Information [Line Items]
Security 12b Title	Common stock, $0.01 par value per share
Trading Symbol	CFG
Security Exchange Name	NYSE
Series D Preferred Stock [Member]
Document And Entity Information [Line Items]
Security 12b Title	Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non- Cumulative Perpetual Preferred Stock, Series D
Trading Symbol	CFG PrD
Security Exchange Name	NYSE
Series E Preferred Stock [Member]
Document And Entity Information [Line Items]
Security 12b Title	Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E
Trading Symbol	CFG PrE
Security Exchange Name	NYSE