CITIZENS FINANCIAL GROUP INC/RI0000759944false00007599442024-01-182024-01-180000759944us-gaap:CommonStockMember2024-01-182024-01-180000759944us-gaap:SeriesDPreferredStockMember2024-01-182024-01-180000759944us-gaap:SeriesEPreferredStockMember2024-01-182024-01-18


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 18, 2024

citizenslogoa05.jpg
 (Exact name of the registrant as specified in its charter)
Delaware001-3663605-0412693
(State or Other Jurisdiction of
Incorporation)		(Commission File Number)(I.R.S. Employer
Identification Number)
One Citizens Plaza
Providence,RI02903
(Address of principal executive offices)(Zip Code)
 

Registrant’s telephone number, including area code: (203) 900-6715

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 classTrading symbol(s)Name of each exchange on which registered
Common stock, $0.01 par value per shareCFGNew 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 DCFG PrDNew 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 ECFG PrENew 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 January 17, 2024, Citizens Financial Group, Inc. (the “Company”) announced its fourth quarter and full year 2023 earnings. The Company’s earnings results and financial supplement are being filed as Exhibits 99.1 and 99.2, respectively.
Item 9.01   Financial Statements and Exhibits.
 Exhibit NumberDescription
(d)Exhibit 99.1  
Exhibit 99.2  
Exhibit 104Cover 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 Chair and Chief Financial Officer
Date:  January 18, 2024




Exhibit 99.1



Key Financial Data4Q233Q234Q22
Fourth Quarter 2023 Highlights
 
Income
Statement		($s in millions)
■Underlying EPS of $0.85 and ROTCE of 11.8%
■Underlying PPNR of $721 million
–NII down 2% QoQ given lower NIM, partly offset by a modest increase in interest-earning assets
–Fees up 2% QoQ with improved Capital Markets and Wealth, partly offset by lower Mortgage Banking
–Expenses stable QoQ including the Private Bank start-up investment
■Underlying efficiency ratio of 63.8%, or 61.9% excluding Private Bank start-up investment
■Provision for credit losses of $171 million; ACL/loans ratio up 4 bps QoQ to 1.59%
■Period-end loans down 3% and average loans down 2% QoQ given balance sheet optimization, including Non-Core portfolio run off
■Period-end and average deposits broadly stable
–Total deposit costs up 16 bps QoQ
■Period-end LDR improved to 82%
■Strong CET1 ratio of 10.6%; TCE ratio of 6.7%
■TBV/share of $30.91, up 11% QoQ
Total revenue$1,988 $2,014 $2,200 
Pre-provision profit376 721 960 
Underlying pre-provision profit721 743 1,003 
Provision for credit losses171 172 132 
Net income189 430 653 
Underlying net income426 448 685 
Balance Sheet
&
Credit Quality		($s in billions)
Period-end loans and leases$146.0 $149.7 $156.7 
Average loans and leases148.0 150.8 157.1 
Period-end deposits177.3 178.2 180.7 
Average deposits177.1 176.5 179.0 
Period-end loan-to-deposit ratio
82.3 %84.0 %86.7 %
NCO ratio0.46 %0.40 %0.22 %
Financial MetricsDiluted EPS$0.34 $0.85 $1.25 
Underlying EPS0.85 0.89 1.32 
ROTCE4.7 %12.0 %18.5 %
Underlying ROTCE11.8 12.5 19.4 
Net interest margin, FTE2.91 3.03 3.30 
Efficiency ratio81.1 64.2 56.4 
Underlying efficiency ratio63.8 63.1 54.4 
CET110.6 %10.4 %10.0 %
TBV/Share$30.91 $27.73 $27.88 

Notable Items4Q23
($s in millions except per share data)Pre-tax $EPS
Integration related$(5)$(0.01)
TOP and Other items(115)(0.15)
FDIC special assessment
(225)(0.35)
Total:$(345)$(0.51)

Citizens also announced that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on February 14, 2024 to shareholders of record at the close of business on January 31, 2024. There were no share repurchases during the quarter, given the decision to pause to cover the impact of the industry-wide FDIC special assessment.
*Results presented on an Underlying basis are non-GAAP Financial Measures. See page 15 for additional information on our use of Non-GAAP Financial Measures.
Citizens Financial Group, Inc.
Earnings highlights(1):
Quarterly TrendsFull Year
 4Q23 change from2023 change from 2022
($s in millions, except per share data)4Q233Q234Q223Q234Q2220232022
Earnings$/bps%$/bps%$$$/bps
Net interest income$1,488 $1,522 $1,695 $(34)(2) %$(207)(12) %$6,241 $6,012 $229 
Noninterest income500 492 505 8 2 (5)(1)1,983 2,009 (26)
Total revenue1,988 2,014 2,200 (26)(1)(212)(10)8,224 8,021 203 
Noninterest expense1,612 1,293 1,240 319 25 372 30 5,507 4,892 615 
Pre-provision profit376 721 960 (345)(48)(584)(61)2,717 3,129 (412)
Provision for credit losses171 172 132 (1)(1)39 30687 474 213 
Net income189 430 653 (241)(56)(464)(71)1,608 2,073 (465)
Preferred dividends30 30 32 — — (2)(6)117 113 4 
Net income available to common stockholders$159 $400 $621 $(241)(60) %$(462)(74) %$1,491 $1,960 $(469)
After-tax notable Items237 18 32 219 NM205 NM357 352 5 
Underlying net income$426 $448 $685 $(22)(5) %$(259)(38) %$1,965 $2,425 $(460)
Underlying net income available to common stockholders396 418 653 (22)(5)(257)(39)$1,848 $2,312 $(464)
Average common shares outstanding
Basic (in millions)466.2 469.5 493.3 (3.2)(1)(27.1)(5)475.1 476.0 (0.9)
Diluted (in millions)468.2 471.2 495.5 (3.0)(1)(27.3)(6)476.7 477.8 (1.1)
Diluted earnings per share$0.34 $0.85 $1.25 $(0.51)(60) %$(0.91)(73) %$3.13 $4.10 $(0.97)
Underlying diluted earnings per share0.85 0.89 1.32 (0.04)(4)(0.47)(36)$3.88 $4.84 $(0.96)
Performance metrics
Net interest margin2.90 %3.03 %3.29 %(13) bps(39) bps3.09 %3.10 %(1) bps
Net interest margin, FTE2.91 3.03 3.30 (12)(39)3.10 3.10 — 
Effective income tax rate7.6 21.5 21.2 (1,392)(1,357)20.8 21.9 (117)
Efficiency ratio81.1 64.2 56.4 1,692 2,477 67.0 61.0 598 
Underlying efficiency ratio63.8 63.1 54.4 69 935 60.8 57.5 330 
Return on average tangible common equity4.7 12.0 18.5 (728)(1,374)10.9 13.9 (299)
Underlying return on average tangible common equity11.8 12.5 19.4 (67)(756)13.5 16.4 (288)
Return on average total tangible assets0.35 0.81 1.19 (46)(84)0.75 1.00 (25)
Underlying return on average total tangible assets0.78 %0.84 %1.25 %(6) bps(47) bps0.92 %1.17 %(25) bps
Capital adequacy(2,3)
Common equity tier 1 capital ratio10.6 %10.4 %10.0 %
Total capital ratio13.7 13.4 12.8 
Tier 1 leverage ratio9.3 9.4 9.3 
Tangible common equity ratio6.7 5.9 6.3 
Allowance for credit losses to loans and leases1.59 %1.55 %1.43 %4  bps16  bps
Asset quality(3)
Nonaccrual loans and leases to loans and leases0.93 %0.87 %0.60 %6  bps33  bps
Allowance for credit losses to nonaccrual loans and leases170 179 237 (9)(67)
Net charge-offs as a % of average loans and leases0.46 %0.40 %0.22 %6  bps24  bps0.40 %0.18 %22  bps

1) Unless otherwise noted, references to balance sheet items are on an average basis, loans exclude loans held for sale, earnings per share
represent fully diluted per common share and references to NIM are on a FTE basis.
2) Current reporting-period regulatory capital ratios are preliminary.
3) Capital adequacy and asset-quality ratios calculated on a period-end basis, except net charge-offs.




2
Citizens Financial Group, Inc.



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

Underlying results:

Quarterly TrendsFull Year
 4Q23 change from2023 Change
($s in millions, except per share data)4Q233Q234Q223Q234Q2220232022from 2022
$/bps%$/bps%%
Net interest income$1,488 $1,522 $1,695 $(34)(2) %$(207)(12) %$6,241 $6,012 4  %
Noninterest income500 492 505 8 2 (5)(1)1,983 2,040 (3)
Total revenue$1,988 $2,014 $2,200 $(26)(1) %$(212)(10) %$8,224 $8,052 2  %
Noninterest expense$1,267 $1,271 $1,197 $(4)—  %$70 6  %$5,001 $4,630 8  %
Provision for credit losses171 172 132 (1)(1)39 30 687 305 125 
Net income available to common stockholders$396 $418 $653 $(22)(5)%$(257)(39)%$1,848 $2,312 (20) %
Performance metrics
EPS$0.85 $0.89 $1.32 $(0.04)(4) %$(0.47)(36) %$3.88 $4.84 (20) %
Efficiency ratio63.8  %63.1  %54.4  %69  bps935  bps60.8 57.5 330 
Return on average tangible common equity11.8  %12.5  %19.4  %(67) bps(756) bps13.5 %16.4 %(288) bps




Consolidated balance sheet summary(1):

 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
$/bps%$/bps%
Total assets$221,964 $225,270 $226,733 $(3,306)(1) %$(4,769)(2) %
Total loans and leases145,959 149,746 156,662 (3,787)(3)(10,703)(7)
Total loans held for sale779 848 982 (69)(8)(203)(21)
Deposits177,342 178,197 180,724 (855)— (3,382)(2)
Stockholders' equity24,342 22,878 23,690 1,464 6 652 3 
Stockholders' common equity22,329 20,864 21,676 1,465 7 653 3 
Tangible common equity$14,417 $12,930 $13,728 $1,487 12  %$689 5  %
Loan-to-deposit ratio (period-end)(2)
82.3 %84.0  %86.7  %(173) bps(439) bps
Loan-to-deposit ratio (average)(2)
83.5 %85.5 %87.7 %(192) bps(420) bps
1) Represents period-end unless otherwise noted.
2) Excludes loans held for sale.

3
Citizens Financial Group, Inc.
Notable items:
Quarterly and full-year results reflect notable items primarily related to integration costs associated with recent acquisitions, as well as TOP revenue and efficiency initiatives and other expense reduction actions. In addition, fourth quarter 2023 includes a notable item for an industry-wide FDIC special assessment. Full-year 2022 results include notable items representing the day-one CECL provision expense (“double count”) related to the HSBC and ISBC transactions. These notable items have been excluded from reported results to better reflect Underlying operating results.
Notable items - Integration-related
4Q233Q234Q22FY 2023FY 2022
($s in millions, except per share data)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
  Noninterest income$— $— $— $— $— $— $— $— $(31)$(23)
EPS Impact - Noninterest income$— $— $— $— $(0.05)
Salaries & benefits$(2)$(1)$(4)$(3)$(13)$(9)$(15)$(11)$(98)$(72)
Equipment and software— — — — (1)(1)(4)(3)(1)(1)
Outside services(3)(2)(4)(3)(15)(12)(43)(31)(89)(67)
Occupancy— — — — — — (41)(30)(2)(1)
Other expense— — — — (6)(4)(1)(1)(23)(16)
   Noninterest expense$(5)$(3)$(8)$(6)$(35)$(26)$(104)$(76)$(213)$(157)
EPS Impact - Noninterest expense $(0.01)$(0.02)$(0.06)$(0.16)$(0.34)
ISBC/HSBC Day 1 CECL provision expense (“double count”)$— $— $— $— $— $— $— $— $(169)$(126)
EPS Impact - Provision for credit losses$— $— $— $— $(0.26)
  Tax integration cost$— $— $— $— $— $— $— $— $— $(6)
EPS Impact - Tax integration cost$— $— $— $— $(0.01)
Total integration related$(5)$(3)$(8)$(6)$(35)$(26)$(104)$(76)$(413)$(312)
EPS Impact - Total Integration-related
$(0.01)$(0.02)$(0.06)$(0.16)$(0.66)
Other notable items - TOP & Other
4Q233Q234Q22FY 2023FY 2022
($s in millions, except per share data)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
Tax notable items$— $17 $— $— $— $— $— $17 $— $(3)
Salaries & benefits(30)(22)(1)— (2)(2)(52)(38)(12)(9)
Equipment and software(37)(27)(6)(5)(1)— (47)(35)(9)(6)
Outside services(10)(7)(3)(3)(2)(1)(25)(19)(24)(18)
Occupancy(20)(15)(2)(2)(2)(2)(29)(22)(3)(3)
FDIC special assessment(1)
(225)(167)— — — — (225)(167)— — 
Other expense(18)(13)(2)(2)(1)(1)(24)(17)(1)(1)
   Noninterest expense$(340)$(251)$(14)$(12)$(8)$(6)$(402)$(298)$(49)$(37)
Total Other Notable Items$(340)$(234)$(14)$(12)$(8)$(6)$(402)$(281)$(49)$(40)
EPS Impact - Other Notable Items $(0.50)$(0.02)$(0.01)$(0.59)$(0.08)
Total Notable Items$(345)$(237)$(22)$(18)$(43)$(32)$(506)$(357)$(462)$(352)
Total EPS Impact$(0.51)$(0.04)$(0.07)$(0.75)$(0.74)
(1) The FDIC special assessment earnings per share impact is $(0.35) for fourth quarter 2023 and full year 2023.









4
Citizens Financial Group, Inc.
Discussion of results:
Net interest income 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
$/bps%$/bps%
Interest income:
Interest and fees on loans and leases and loans held for sale$2,166 $2,194 $1,919 $(28)(1) %$247 13  %
Investment securities339 290 258 49 17 81 31 
Interest-bearing deposits in banks171 111 75 60 54 96 128
Total interest income$2,676 $2,595 $2,252 $81 3  %$424 19  %
Interest expense:
Deposits$974 $898 $396 $76 8  %$578 146  %
Short-term borrowed funds7 8 2 (1)(13)5 250 
Long-term borrowed funds207 167 159 40 24 48 30 
Total interest expense$1,188 $1,073 $557 $115 11  %$631 113  %
Net interest income$1,488 $1,522 $1,695 $(34)(2) %$(207)(12) %
Net interest margin, FTE2.91  %3.03  %3.30  %(12) bps(39) bps
Fourth quarter 2023vs.third quarter 2023
Net interest income of $1.5 billion decreased 2%, reflecting lower net interest margin, partially offset by a 2% increase in average interest-earning assets. Higher cash and securities were partially offset by lower loans.
•Net interest margin of 2.91% decreased 12 basis points reflecting the impact of an increase in liquidity (cash and securities - 9 basis points) and higher funding costs (6 basis points), partially offset by the benefit of Non-Core run off (3 basis points). The targeted build in liquidity was achieved in the quarter.
Fourth quarter 2023vs.fourth quarter 2022
Net interest income of $1.5 billion decreased 12%, reflecting lower net interest margin and a 1% decline in average interest-earning assets.
•Net interest margin of 2.91% decreased 39 basis points, as higher funding costs and the impact of building liquidity were partly offset by higher interest-earning-asset yields and the benefit of Non-Core run off.





5
Citizens Financial Group, Inc.
Noninterest Income 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
$%$%
Service charges and fees$104 $105 $105 $(1)(1) %$(1)(1) %
Capital markets fees87 67 98 20 30 (11)(11)
Card fees70 74 71 (4)(5)(1)(1)
Trust and investment services fees68 63 61 5 8 7 11 
Mortgage banking fees57 69 54 (12)(17)3 6 
Foreign exchange and derivative products43 48 35 (5)(10)8 23 
Letter of credit and loan fees42 43 41 (1)(2)1 2 
Securities gains, net9 5 4 4 805 125
Other income(1)
20 18 36 2 11(16)(44)
Noninterest income$500 $492 $505 $8 2  %$(5)(1) %
1) Includes bank-owned life insurance income and other miscellaneous income for all periods presented.
Fourth quarter 2023vs.third quarter 2023
Noninterest income of $500 million increased $8 million, or 2%.
•Capital markets fees increased $20 million, given increased bond and equity underwriting and M&A advisory fees.
•Card fees decreased $4 million, primarily reflecting lower interchange and higher rewards expense.
•Trust and investment services fees increased $5 million, reflecting increased sales activity.
•Mortgage banking fees decreased $12 million, driven by lower production fees and MSR valuation, net of hedging, partially offset by higher servicing fees.
•Foreign exchange and derivative products revenue decreased $5 million, primarily reflecting lower client activity in interest rate hedging.
Fourth quarter 2023vs.fourth quarter 2022
Noninterest income of $500 million decreased $5 million, or 1%.
•Capital markets fees decreased $11 million, primarily given lower M&A advisory fees.
•Trust and investment services fees increased $7 million, reflecting increased sales activity and asset management fees.
•Mortgage banking fees increased $3 million, driven by higher MSR valuation, net of hedging, partially offset by lower servicing and production fees.
•FX and derivative products revenue increased $8 million, primarily reflecting increased client activity in commodities hedging.

6
Citizens Financial Group, Inc.
Noninterest Expense 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
$%$%
Salaries and employee benefits$667 $659 $633 $8 1 %$34 5 %
Equipment and software215 191 170 24 13 45 26 
Outside services174 160 170 14 9 4 2 
Occupancy125 107 110 18 17 15 14 
Other operating expense431 176 157 255 145 274 175 
Noninterest expense$1,612 $1,293 $1,240 $319 25 %$372 30 %
Notable items$345 $22 $43 $323 NM$302 NM
Underlying, as applicable
Salaries and employee benefits$635 $654 $618 $(19)(3)%$17 3 %
Equipment and software178 185 168 (7)(4)10 6 
Outside services161 153 153 8 5 8 5 
Occupancy105 105 108 — — (3)(3)
Other operating expense188 174 150 14 8 38 25 
Underlying noninterest expense$1,267 $1,271 $1,197 $(4)— %$70 6 %
Fourth quarter 2023vs.third quarter 2023
Underlying noninterest expense of $1.27 billion was down slightly including the Private Bank start-up investment.
•Salaries and benefits decreased primarily reflecting headcount reduction initiatives.
•Equipment and software decreased given lower vendor costs.
•Outside services increased related to the execution of strategic initiatives.
•Other operating expense increased primarily due to higher fraud, deposit insurance and travel expenses, partially offset by lower advertising costs.
Reported noninterest expense of $1.61 billion increased $319 million, reflecting notable items of $323 million, namely the industry-wide FDIC special assessment of $225 million, and costs associated with the reduction of approximately 650 headcount, or 3.5%, the exit of the Wholesale Mortgage and Auto businesses, and facilities rationalization.
The effective tax rate was 7.6% in fourth quarter 2023. On an underlying basis, the effective tax rate of 22.3% increased modestly compared to 21.7% in third quarter 2023.
Fourth quarter 2023vs.fourth quarter 2022
Underlying noninterest expense of $1.27 billion increased 6%; up 2% excluding $41 million in expenses related to the Private Bank start-up investment.
•Salaries and benefits increased reflecting the Private Bank start-up investment, partly offset by lower headcount.
•Equipment and software increased, reflecting higher software maintenance and amortization costs.
•Other operating expenses increased primarily driven by increased deposit insurance, pension costs and fraud expense.
The effective tax rate was 7.6% in fourth quarter 2023. On an underlying basis, the effective tax rate of 22.3% increased compared to 21.4% in fourth quarter 2022.

7
Citizens Financial Group, Inc.
Interest-earning assets 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
Period-end interest-earning assets$%$%
Investments$40,003 $35,547 $35,052 $4,456 13  %$4,951 14  %
Interest-bearing deposits in banks10,239 14,329 9,361 (4,090)(29)878 9 
Commercial loans and leases74,445 77,457 82,180 (3,012)(4)(7,735)(9)
Retail loans71,514 72,289 74,482 (775)(1)(2,968)(4)
Total loans and leases145,959 149,746 156,662 (3,787)(3)(10,703)(7)
Loans held for sale, at fair value676 749 774 (73)(10)(98)(13)
Other loans held for sale103 99 208 4 4(105)(50)
Total loans and leases and loans held for sale146,738 150,594 157,644 (3,856)(3)(10,906)(7)
Total period-end interest-earning assets$196,980 $200,470 $202,057 $(3,490)(2) %$(5,077)(3) %
Average interest-earning assets
Investments$41,499 $39,273 $38,772 $2,226 6  %$2,727 7  %
Interest-bearing deposits in banks12,387 8,005 6,915 4,382 55 5,472 79 
Commercial loans and leases76,078 78,261 82,468 (2,183)(3)(6,390)(8)
Retail loans71,891 72,530 74,631 (639)(1)(2,740)(4)
Total loans and leases147,969 150,791 157,099 (2,822)(2)(9,130)(6)
Loans held for sale, at fair value1,047 1,204 1,179 (157)(13)(132)(11)
Other loans held for sale219 321 557 (102)(32)(338)(61)
Total loans and leases and loans held for sale149,235 152,316 158,835 (3,081)(2)(9,600)(6)
Total average interest-earning assets$203,121 $199,594 $204,522 $3,527 2  %$(1,401)(1) %

Fourth quarter 2023vs.third quarter 2023
Period-end interest-earning assets of $197.0 billion decreased $3.5 billion, or 2%, reflecting a $4.1 billion decrease in cash held in interest-bearing deposits and a $3.9 billion decrease in total loans and leases and loans held for sale, partly offset by a $4.5 billion increase in investments in securities. The decrease in loans and leases reflects a $3.0 billion decrease in commercial given balance sheet optimization actions and market conditions driving lower client demand. Results also reflect a $775 million decrease in retail, given planned Non-Core portfolio run off.
Average interest-earning assets of $203.1 billion increased $3.5 billion, or 2%, reflecting a $4.4 billion increase in cash held in interest-bearing deposits and a $2.2 billion increase in investments, partly offset by a $2.8 billion decrease in total loans and leases. The decrease in loans and leases reflects a $2.2 billion decrease in commercial given balance sheet optimization actions and market conditions driving lower client demand, as well as a $639 million decrease in retail driven by the Non-Core portfolio run off.
The average effective duration of the securities portfolio was 3.9 years, compared with 5.2 years at September 30, 2023 and 5.8 years at December 31, 2022.
Fourth quarter 2023vs.fourth quarter 2022
Period-end interest-earning assets of $197.0 billion decreased $5.1 billion, or 3%, reflecting a $10.9 billion decrease in total loans and leases and loans held for sale, partly offset by a $878 million increase in cash held in interest-bearing deposits and a $5.0 billion increase in investments in securities. The decrease in loans and leases reflects a $7.7 billion decrease in commercial given balance sheet optimization actions and lower client demand, and a $3.0 billion decrease in retail driven by the Non-Core portfolio run off and lower education largely offset by growth in mortgage and home equity.
Average interest-earning assets of $203.1 billion decreased $1.4 billion, or 1%, reflecting a $9.6 billion decrease in total loans and leases and loans held for sale, partially offset by a $5.5 billion increase in cash held in interest-bearing deposits and a $2.7 billion increase in investments in securities.
8
Citizens Financial Group, Inc.
    
Deposits 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
Period-end deposits$%$%
Demand
$37,107 $38,561 $49,283 $(1,454)(4) %$(12,176)(25) %
Money market53,812 53,517 49,905 295 1 3,907 8 
Checking with interest31,876 33,355 39,721 (1,479)(4)(7,845)(20)
Savings27,983 29,139 29,805 (1,156)(4)(1,822)(6)
Term26,564 23,625 12,010 2,939 12 14,554 121 
Total period-end deposits$177,342 $178,197 $180,724 $(855)—  %$(3,382)(2) %
Average deposits
Demand
$38,390 $39,728 $50,706 $(1,338)(3) %$(12,316)(24) %
Money market53,003 52,057 50,228 946 2 2,775 6 
Checking with interest31,788 33,545 36,952 (1,757)(5)(5,164)(14)
Savings28,455 29,516 29,780 (1,061)(4)(1,325)(4)
Term25,492 21,604 11,378 3,888 18 14,114 124 
Total average deposits$177,128 $176,450 $179,044 $678 —  %$(1,916)(1) %
Fourth quarter 2023vs.third quarter 2023
Total period-end deposits of $177.3 billion and average deposits of $177.1 billion were broadly stable. The spot decreases in demand of 4% and checking with interest of 4% reflect continued migration to higher rate alternatives, with increases in term, up 12%, and money market, up 1%. Efforts to optimize the liquidity value of deposits continue, with $3.5 billion in deposits from financial institutions and municipalities run off during the quarter.
Fourth quarter 2023vs.fourth quarter 2022
Total period-end deposits of $177.3 billion decreased 2% while average deposits of $177.1 billion decreased 1%, primarily due to rate-related outflows. Higher interest rates drove migration of deposits from demand and checking with interest to term and money market accounts.
9
Citizens Financial Group, Inc.
Borrowed Funds 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
Period-end borrowed funds$%$%
Short-term borrowed funds$505 $232 $3 $273 118 %$502 NM
Long-term borrowed funds
FHLB advances3,786 7,036 8,519 (3,250)(46)(4,733)(56)
Senior debt5,170 5,258 5,555 (88)(2)(385)(7)
Subordinated debt and other debt1,819 1,815 1,813 4 — 6 — 
Auto collateralized borrowings2,692 3,245 — (553)(17)2,692 100 
Total borrowed funds$13,972 $17,586 $15,890 $(3,614)(21) %$(1,918)(12) %
Average borrowed funds
Short-term borrowed funds$491 $506 $262 $(15)(3) %$229 87  %
Long-term borrowed funds
FHLB advances5,751 4,023 8,818 1,728 43 (3,067)(35)
Senior debt5,217 5,259 5,397 (42)(1)(180)(3)
Subordinated debt and other debt1,816 1,814 1,812 2 — 4 — 
Auto collateralized borrowings2,904 2,106 — 798 382,904 100 
Total average borrowed funds$16,179 $13,708 $16,289 $2,471 18  %$(110)(1) %
Fourth quarter 2023vs.third quarter 2023
Period-end borrowed funds decreased by $3.6 billion, primarily due to a decrease in FHLB advances of $3.3 billion and a decrease of $553 million in collateralized borrowings on auto loans, partly offset by a $273 million increase in short-term borrowings.
Average borrowed funds increased $2.5 billion, with an increase in FHLB advances of $1.7 billion, and an increase in collateralized borrowings on auto loans of $798 million.
Fourth quarter 2023vs.fourth quarter 2022
Period-end borrowed funds decreased by $1.9 billion, primarily due to a decrease in FHLB advances of $4.7 billion and a decrease of $385 million in senior debt, partly offset by a $2.7 billion increase in collateralized borrowings on auto loans and a $502 million increase in short-term borrowed funds.
Average borrowed funds decreased by $110 million, reflecting a $3.1 billion decrease in FHLB advances, largely offset by a $2.9 billion increase in collateralized borrowings on auto loans.
10
Citizens Financial Group, Inc.
Capital 4Q23 change from
($s and shares in millions, except per share data)4Q233Q234Q223Q234Q22
Period-end capital$%$%
Stockholders' equity$24,342 $22,878 $23,690 $1,464 6  %$652 3  %
Stockholders' common equity22,329 20,864 21,676 1,465 7 653 3 
Tangible common equity14,417 12,930 13,728 1,487 12 689 5 
Tangible book value per common share$30.91 $27.73 $27.88 $3.18 11  %$3.03 11  %
Common shares - at end of period466.4 466.2 492.3 0.2 — (25.9)(5)
Common shares - average (diluted)468.2 471.2 495.5 (3.0)(1) %(27.3)(6) %
Common equity tier 1 capital ratio(1)
10.6 %10.4 %10.0 %
Total capital ratio(1)
13.7 13.4 12.8 
Tangible common equity ratio6.7 5.9 6.3 
Tier 1 leverage ratio(1)
9.3 9.4 9.3 
1) Current reporting-period regulatory capital ratios are preliminary.
Fourth quarter 2023
•The CET1 capital ratio is 10.6% as of December 31, 2023 compared with 10.4% at September 30, 2023 and 10.0% at December 31, 2022.
•Total capital ratio of 13.7% compares with 13.4% at September 30, 2023 and 12.8% as of December 31, 2022.
•Tangible common equity ratio of 6.7% compares with 5.9% at September 30, 2023 and 6.3% as of December 31, 2022.
•Tangible book value per common share of $30.91 increased 11% compared with third quarter 2023 primarily due to AOCI impacts.
•Citizens paid $198 million in common dividends to shareholders during fourth quarter 2023. This compares with $200 million in common dividends during third quarter 2023 and $208 million during fourth quarter 2022.
•Citizens did not repurchase common shares during fourth quarter 2023, compared with $250 million repurchased in third quarter 2023 and $150 million in fourth quarter 2022.
11
Citizens Financial Group, Inc.
Credit quality review 4Q23 change from
($s in millions)4Q233Q234Q223Q234Q22
$/bps%$/bps%
Nonaccrual loans and leases(1)
$1,364 $1,296 $944 $68 5  %$420 44  %
90+ days past due and accruing(2)
333 248 367 85 34 (34)(9)
Net charge-offs171 153 88 18 12 83 94 
Provision for credit losses171 172 132 (1)(1)39 30
Allowance for credit losses $2,318 $2,318 $2,240 $— —  %$78 3  %
Nonaccrual loans and leases to loans and leases0.93  %0.87  %0.60  %6  bps33 
Net charge-offs as a % of total loans and leases0.46 0.40 0.22 6 24 
Allowance for credit losses to loans and leases1.59 1.55 1.43 4 16 
Allowance for credit losses to nonaccrual loans and leases170  %179  %237  %(9) bps(67) bps
1) Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing.
2) 90+ days past due and accruing includes $243 million, $216 million, and $316 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2023, September 30, 2023, and December 31, 2022, respectively.
Fourth quarter 2023vs.third quarter 2023
•The nonaccrual loans to total loans ratio of 0.93% compares with 0.87% at September 30, 2023. Nonaccrual loans of $1.4 billion increased $68 million, or 5%, reflecting a $59 million increase in Commercial, primarily driven by an increase in C&I and a modest increase in the General Office segment of commercial real estate.
•Trends in credit quality such as criticized loans appear to be broadly stabilizing.
•Net charge-offs of $171 million, or 46 basis points of average loans and leases, increased 6 basis points compared with the prior quarter given a $1 million decrease in commercial and a $19 million increase in retail, driven by seasonal impacts and the continued normalization of credit losses.
•The fourth quarter 2023 provision for credit losses of $171 million compares with $172 million for third quarter 2023. The allowance for credit losses remained stable as the ratio to total loans of 1.59% increased from 1.55% as of September 30, 2023, reflecting continued runoff of the Non-Core portfolio and balance sheet optimization actions in commercial.
•The allowance for credit losses to nonaccrual loans and leases ratio of 170% compares with 179% as of September 30, 2023.
Fourth quarter 2023vs.fourth quarter 2022
•The nonaccrual loans to total loans ratio of 0.93% increased from 0.60% at December 31, 2022.
•Nonaccrual loans increased $420 million, or 44%, primarily reflecting an increase in the General Office segment of commercial real estate.
•Net charge-offs of 46 basis points of average loans and leases compares with 22 basis points in fourth quarter 2022.
•Net charge-offs of $171 million increased $83 million reflecting a $30 million increase in retail, primarily in education and other retail, and a $53 million increase in commercial driven by the General Office segment of commercial real estate.
•Provision for credit losses of $171 million compares with a $132 million provision in fourth quarter 2022.
•Allowance for credit losses of $2.3 billion increased $78 million compared with December 31, 2022. Allowance for credit losses ratio of 1.59% as of December 31, 2023, compares with 1.43% as of December 31, 2022.
•The allowance for credit losses to nonaccrual loans and leases ratio of 170% compares with 237% as of December 31, 2022.
12
Citizens Financial Group, Inc.

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $222.0 billion in assets as of December 31, 2023. 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 full-service customer contact center and the convenience of approximately 3,200 ATMs and more than 1,100 branches in 14 states and the District of Columbia. 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.

13
Citizens Financial Group, Inc.

Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures:
This document contains non-GAAP financial measures denoted as Underlying. 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. See the following pages for 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.
14
Citizens Financial Group, Inc.

Non-GAAP financial measures and reconciliations
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDSFULL YEAR
4Q23 Change2023 Change
4Q233Q234Q223Q234Q22202320222022
$%$%$%
Noninterest income, Underlying:
Noninterest income (GAAP)$500 $492 $505 $8 2 %($5)(1 %)$1,983 $2,009 ($26)(1 %)
Less: Notable items— — — — — — — — (31)31 100 
Noninterest income, Underlying (non-GAAP)$500 $492 $505 $8 2 %($5)(1 %)$1,983 $2,040 ($57)(3 %)
Total revenue, Underlying:
Total revenue (GAAP)A$1,988 $2,014 $2,200 ($26)(1 %)($212)(10 %)$8,224 $8,021 $203 3 %
Less: Notable items— — — — — — — — (31)31 100 
Total revenue, Underlying (non-GAAP)B$1,988 $2,014 $2,200 ($26)(1 %)($212)(10 %)$8,224 $8,052 $172 2 %
Noninterest expense, Underlying:
Noninterest expense (GAAP)C$1,612 $1,293 $1,240 $319 25 %$372 30 %$5,507 $4,892 $615 13 %
Less: Notable items345 22 43 323 NM302 NM506 262 244 93 
Noninterest expense, Underlying (non-GAAP)D$1,267 $1,271 $1,197 ($4)— %$70 6 %$5,001 $4,630 $371 8 %
Pre-provision profit:
Total revenue (GAAP)A$1,988 $2,014 $2,200 ($26)(1 %)($212)(10 %)$8,224 $8,021 $203 3 %
Less: Noninterest expense (GAAP)C1,612 1,293 1,240 319 25 372 30 5,507 4,892 615 13 
Pre-provision profit (GAAP)$376 $721 $960 ($345)(48 %)($584)(61 %)$2,717 $3,129 ($412)(13 %)
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)B$1,988 $2,014 $2,200 ($26)(1 %)($212)(10 %)$8,224 $8,052 $172 2 %
Less: Noninterest expense, Underlying (non-GAAP)D1,267 1,271 1,197 (4)— 70 6 5,001 4,630 371 8 
Pre-provision profit, Underlying (non-GAAP)$721 $743 $1,003 ($22)(3 %)($282)(28 %)$3,223 $3,422 ($199)(6 %)
Provision for credit losses, Underlying:
Provision for credit losses (GAAP)$171 $172 $132 ($1)(1%)$39 30%$687 $474 $213 45 %
Less: Notable items— — — — —— — — 169 (169)(100)
Provision for credit losses, Underlying (non-GAAP)$171 $172 $132 ($1)(1%)$39 30 %$687 $305 $382 125 %
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)E$205 $549 $828 ($344)(63 %)($623)(75 %)$2,030 $2,655 ($625)(24 %)
Less: Income (expense) before income tax expense (benefit) related to notable items(345)(22)(43)(323)NM(302)NM(506)(462)(44)(10)
Income before income tax expense, Underlying (non-GAAP)F$550 $571 $871 ($21)(4 %)($321)(37 %)$2,536 $3,117 ($581)(19 %)
Income tax expense, Underlying:
Income tax expense (GAAP)G$16 $119 $175 ($103)(87 %)($159)(91 %)$422 $582 ($160)(27 %)
Less: Income tax expense (benefit) related to notable items(108)(4)(11)(104)NM(97)NM(149)(110)(39)(35)
Income tax expense, Underlying (non-GAAP)H$124 $123 $186 $1 1 %($62)(33 %)$571 $692 ($121)(17 %)
Net income, Underlying:
Net income (GAAP)I$189 $430 $653 ($241)(56 %)($464)(71 %)$1,608 $2,073 ($465)(22 %)
Add: Notable items, net of income tax benefit237 18 32 219 NM205 NM357 352 5 1 
Net income, Underlying (non-GAAP)J$426 $448 $685 ($22)(5 %)($259)(38 %)$1,965 $2,425 ($460)(19 %)
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)K$159 $400 $621 ($241)(60 %)($462)(74 %)$1,491 $1,960 ($469)(24 %)
Add: Notable items, net of income tax benefit237 18 32 219 NM205 NM357 352 5 1 
Net income available to common stockholders, Underlying (non-GAAP)L$396 $418 $653 ($22)(5 %)($257)(39 %)$1,848 $2,312 ($464)(20 %)
15
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDSFULL YEAR
4Q23 Change2023 Change
4Q233Q234Q223Q234Q22202320222022
$/bps%$/bps%$/bps%
Operating leverage:
Total revenue (GAAP)A$1,988 $2,014 $2,200 ($26)(1.39 %)($212)(9.70 %)$8,224 $8,021 $203 2.53 %
Less: Noninterest expense (GAAP)C1,612 1,293 1,240 319 24.60 372 30.00 5,507 4,892 615 12.58 
Operating leverage(25.99 %)(39.70 %)(10.05 %)
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)B$1,988 $2,014 $2,200 ($26)(1.39 %)($212)(9.70 %)$8,224 $8,052 $172 2.13 %
Less: Noninterest expense, Underlying (non-GAAP)D1,267 1,271 1,197 (4)(0.30)70 5.82 5,001 4,630 371 8.00 
Operating leverage, Underlying (non-GAAP)(1.09 %)(15.52 %)(5.87 %)
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio C/A81.13 %64.21 %56.36 %1,692  bps2,477  bps66.97 %60.99 %598  bps
Efficiency ratio, Underlying (non-GAAP)D/B63.77 63.08 54.42 69  bps935  bps60.81 57.51 330  bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rateG/E7.59 %21.51 %21.16 %(1,392) bps(1,357) bps20.76 %21.93 %(117) bps
Effective income tax rate, Underlying (non-GAAP)H/F22.25 21.69 21.37 56  bps88  bps22.48 22.19 29  bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)M$21,209 $21,177 $21,276 $32 — %($67)— %$21,592 $21,724 ($132)(1 %)
Less: Average goodwill (GAAP)8,188 8,188 8,171 — — 17 — 8,184 7,872 312 4 
Less: Average other intangibles (GAAP)163 173 199 (10)(6)(36)(18)177 181 (4)(2)
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)421 422 424 (1)— (3)(1)422 413 9 2 
Average tangible common equityN$13,279 $13,238 $13,330 $41 — %($51)— %$13,653 $14,084 ($431)(3 %)
Return on average tangible common equity K/N4.72 %12.00 %18.46 %(728) bps(1,374) bps10.92 %13.91 %(299) bps
Return on average tangible common equity, Underlying (non-GAAP)L/N11.84 12.51 19.40 (67) bps(756) bps13.53 16.41 (288) bps
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)O$223,653 $220,162 $224,970 $3,4912 %($1,317)(1 %)$222,221 $215,061 $7,160 3 %
Less: Average goodwill (GAAP)8,188 8,188 8,171 — — 17 — 8,184 7,872 312 4 
Less: Average other intangibles (GAAP)163 173 199 (10)(6)(36)(18)177 181 (4)(2)
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)421 422 424 (1)— (3)(1)422 413 9 2 
Average tangible assetsP$215,723 $212,223 $217,024 $3,500 2 %($1,301)(1 %)$214,282 $207,421 $6,861 3 %
Return on average total tangible assets I/P0.35 %0.81 %1.19 %(46) bps(84) bps0.75 %1.00 %(25) bps
Return on average total tangible assets, Underlying (non-GAAP)J/P0.78 0.84 1.25 (6) bps(47) bps0.92 1.17 (25) bps












16
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDSFULL YEAR
4Q23 Change2023 Change
4Q233Q234Q223Q234Q22202320222022
$/bps%$/bps%$/bps%
Tangible book value per common share:
Common shares - at period-end (GAAP)Q466,418,055 466,221,795 492,282,158 196,260 — %(25,864,103)(5 %)466,418,055 492,282,158 (25,864,103)(5 %)
Common stockholders' equity (GAAP)$22,329 $20,864 $21,676 $1,465 7 $653 3 $22,329 $21,676 $653 3 
Less: Goodwill (GAAP)8,188 8,188 8,173 — — 15 — 8,188 8,173 15 — 
Less: Other intangible assets (GAAP)157 167 197 (10)(6)(40)(20)157 197 (40)(20)
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP)433 421 422 12 3 11 3 433 422 11 3 
Tangible common equityR$14,417 $12,930 $13,728 $1,487 12 %$689 5 %$14,417 $13,728 $689 5 %
Tangible book value per common shareR/Q$30.91 $27.73 $27.88 $3.18 11 %$3.03 11 %$30.91 $27.88 $3.03 11 %
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)S466,234,324 469,481,085 493,293,981 (3,246,761)(1 %)(27,059,657)(5 %)475,089,384 475,959,815 (870,431)— %
Average common shares outstanding - diluted (GAAP)T468,159,167 471,183,719 495,478,398 (3,024,552)(1)(27,319,231)(6)476,693,148 477,803,142 (1,109,994)— 
Net income per average common share - basic (GAAP)K/S$0.34 $0.85 $1.26 ($0.51)(60)($0.92)(73)$3.14 $4.12 ($0.98)(24)
Net income per average common share - diluted (GAAP)K/T0.34 0.85 1.25 (0.51)(60)(0.91)(73)3.13 4.10 (0.97)(24)
Net income per average common share - basic, Underlying (non-GAAP)L/S0.85 0.89 1.32 (0.04)(4)(0.47)(36)3.89 4.86 (0.97)(20)
Net income per average common share - diluted, Underlying (non-GAAP)L/T0.85 0.89 1.32 (0.04)(4)(0.47)(36)3.88 4.84 (0.96)(20)


17
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDSFULL YEAR
4Q23 Change2023 Change
4Q233Q234Q223Q234Q22202320222022
$/bps%$/bps%$/bps%
Other income, Underlying:
Other income (GAAP)$20 $18 $36 $2 11($16)(44%)$78 $82 ($4)(5 %)
Less: Notable items— — — — — — — — (31)31 100 
Other income, Underlying (non-GAAP)$20 $18 $36 $2 11 ($16)(44 %)$78 $113 ($35)(31 %)
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)$667 $659 $633 $8 1 %$34 5 %$2,599 $2,549 $50 — 2 %
Less: Notable items32 5 15 27 NM17 113 67 110 (43)(39)
Salaries and employee benefits, Underlying (non-GAAP)$635 $654 $618 ($19)(3 %)$17 3 %$2,532 $2,439 $93 4 %
Equipment and software, Underlying:
Equipment and software (GAAP)
$215 $191 $170 $24 13 %$45 26 %$756 $648 $108 17 %
Less: Notable items37 6 2 31 NM35 NM51 10 41 NM
Equipment and software, Underlying (non-GAAP)$178 $185 $168 ($7)(4 %)$10 6 %$705 $638 $67 11 %
Outside services, Underlying:
Outside services (GAAP)$174 $160 $170 $14 9 %$4 2 %$687 $700 ($13)— (2 %)
Less: Notable items13 7 17 6 86 (4)(24)68 113 (45)(40)
Outside services, Underlying (non-GAAP)$161 $153 $153 $8 5 %$8 5 %$619 $587 $32 5 %
Occupancy, Underlying:
Occupancy (GAAP)$125 $107 $110 $18 17 %$15 14 %$492 $410 $82 20 %
Less: Notable items20 2 2 18 NM18 NM70 5 65 NM
Occupancy, Underlying (non-GAAP)$105 $105 $108 $— — %($3)(3 %)$422 $405 $17 4 %
Other operating expense, Underlying:
Other operating expense (GAAP)$431 $176 $157 $255 145 %$274 175 %$973 $585 $388 — 66 %
Less: Notable items243 2 7 241 NM236 NM250 24 226 NM
Other operating expense, Underlying (non-GAAP)$188 $174 $150 $14 8 %$38 25 %$723 $561 $162 29 %




























18
Citizens Financial Group, Inc.
Non-GAAP measures and reconciliations - excluding the impact of Private Bank
(in millions, except ratio data)

4Q23
Total revenue, Underlying excluding Private Bank:
Total revenue (GAAP)$1,988 
Less: Notable items— 
Less: Private Bank Total revenue (GAAP)5 
Total revenue, Underlying excluding Private Bank (non-GAAP)A$1,983 
Noninterest expense, Underlying excluding Private Bank:
Noninterest expense (GAAP)$1,612 
Less: Notable items345 
Noninterest expense, Underlying (non-GAAP)B$1,267 
Private Bank Noninterest expense (GAAP)$42 
Less: Private Bank Notable Items2 
Noninterest expense, Underlying Private Bank (non-GAAP)C$40 
Noninterest expense, Underlying excluding Private Bank (non-GAAP)B-C$1,227 
Efficiency ratio, Underlying excluding Private Bank:
Efficiency ratio, excluding Private Bank (non-GAAP)(B-C)/A61.9 %
19
Citizens Financial Group, Inc.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook,” “guidance” 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, business and political conditions, including as a result of the interest rate environment, supply chain disruptions, inflationary pressures and labor shortages, that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits;
•The general state of the economy and employment, as well as general business and economic conditions, and changes in the competitive environment;
•Our capital and liquidity requirements under regulatory standards and our ability to generate capital and liquidity on favorable terms;
•The effect of changes in our credit ratings on our cost of funding, access to capital markets, ability to market our securities, and overall liquidity position;
•The effect of changes in the level of commercial and consumer deposits on our funding costs and net interest margin;
•Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including the anticipated benefits of the Investors acquisition and HSBC transaction;
•The effects of geopolitical instability, including the wars in Ukraine and Israel, on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks;
•Our ability to meet heightened supervisory requirements and expectations;
•Liabilities and business restrictions resulting from litigation and regulatory investigations;
•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;
•Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses;
•Environmental risks, such as physical or transition risks associated with climate change, and social and governance risks, that could adversely affect our reputation, operations, business, and customers;
•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 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 from or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the Securities and Exchange Commission.
Note: Per share amounts and ratios presented in this document are calculated using whole dollars.
20
Financial Supplement Fourth Quarter and Full Year 2023 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, Annualized Yields and Rates 8 Mortgage Banking Fees 10 Segment Financial Highlights 11 Credit-Related Information: Nonaccrual loans and leases 15 Loans and Leases 90 Days or More Past Due and Accruing 16 Charge-offs, Recoveries, and Related Ratios 17 Summary of Changes in the Components of the Allowance for Credit Losses 19 Capital and Ratios 20 Non-GAAP Financial Measures and Reconciliations 21 The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The Company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward-looking statements language contained in the Company’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC’s website (www.sec.gov) or on the Company’s website (www.citizensbank.com). The Company’s future financial performance is subject to the risks and uncertainties described in its SEC filings. 2

 
CONSOLIDATED FINANCIAL HIGHLIGHTS (dollars in millions, except per share data) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % SELECTED OPERATING DATA Total revenue $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,021 $203 3% Noninterest expense 1,612 1,293 1,306 1,296 1,240 319 25 372 30 5,507 4,892 615 13 Profit before provision (benefit) for credit losses 376 721 788 832 960 (345) (48) (584) (61) 2,717 3,129 (412) (13) Provision (benefit) for credit losses 171 172 176 168 132 (1) (1) 39 30 687 474 213 45 NET INCOME 189 430 478 511 653 (241) (56) (464) (71) 1,608 2,073 (465) (22) Net income, Underlying1 426 448 531 560 685 (22) (5) (259) (38) 1,965 2,425 (460) (19) Net income available to common stockholders 159 400 444 488 621 (241) (60) (462) (74) 1,491 1,960 (469) (24) Net income available to common stockholders, Underlying1 396 418 497 537 653 (22) (5) (257) (39) 1,848 2,312 (464) (20) PER COMMON SHARE DATA Basic earnings $0.34 $0.85 $0.93 $1.00 $1.26 ($0.51) (60%) ($0.92) (73%) $3.14 $4.12 ($0.98) (24%) Diluted earnings 0.34 0.85 0.92 1.00 1.25 (0.51) (60) (0.91) (73) 3.13 4.10 (0.97) (24) Basic earnings, Underlying1 0.85 0.89 1.04 1.10 1.32 (0.04) (4) (0.47) (36) 3.89 4.86 (0.97) (20) Diluted earnings, Underlying1 0.85 0.89 1.04 1.10 1.32 (0.04) (4) (0.47) (36) 3.88 4.84 (0.96) (20) Cash dividends declared and paid per common share 0.42 0.42 0.42 0.42 0.42 — — — — 1.68 1.62 0.06 4 Book value per common share 47.87 44.75 45.44 45.84 44.03 3.12 7 3.84 9 47.87 44.03 3.84 9 Tangible book value per common share 30.91 27.73 28.72 29.44 27.88 3.18 11 3.03 11 30.91 27.88 3.03 11 Dividend payout ratio 124 % 49 % 45 % 42 % 33 % 7,412 bps 9,053 bps 54 % 39% 1,450 bps Dividend payout ratio, Underlying1 49 47 40 38 32 200 bps 1,700 bps 43 33 1,000 bps COMMON SHARES OUTSTANDING Average: Basic 466,234,324 469,481,085 479,470,543 485,444,313 493,293,981 (3,246,761) (1%) (27,059,657) (5%) 475,089,384 475,959,815 (870,431) —% Diluted 468,159,167 471,183,719 480,975,281 487,712,146 495,478,398 (3,024,552) (1) (27,319,231) (6) 476,693,148 477,803,142 (1,109,994) — Common shares at period-end 466,418,055 466,221,795 474,682,759 483,982,264 492,282,158 196,260 — (25,864,103) (5) 466,418,055 492,282,158 (25,864,103) (5) 1 These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations." 3

 
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (dollars in millions, except per share data) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % FINANCIAL RATIOS Net interest margin 2.90 % 3.03 % 3.16 % 3.29 % 3.29 % (13) bps (39) bps 3.09 % 3.10 % (1) bps Net interest margin, FTE1 2.91 3.03 3.17 3.30 3.30 (12) (39) 3.10 3.10 — Return on average common equity 2.96 7.50 8.00 9.11 11.56 (454) (860) 6.90 9.02 (212) Return on average common equity, Underlying2 7.41 7.82 8.97 10.01 12.15 (41) (474) 8.56 10.64 (208) Return on average tangible common equity 4.72 12.00 12.42 14.38 18.46 (728) (1,374) 10.92 13.91 (299) Return on average tangible common equity, Underlying2 11.84 12.51 13.93 15.80 19.40 (67) (756) 13.53 16.41 (288) Return on average total assets 0.33 0.78 0.86 0.93 1.15 (45) (82) 0.72 0.96 (24) Return on average total assets, Underlying2 0.76 0.81 0.96 1.02 1.21 (5) (45) 0.88 1.13 (25) Return on average total tangible assets 0.35 0.81 0.89 0.97 1.19 (46) (84) 0.75 1.00 (25) Return on average total tangible assets, Underlying2 0.78 0.84 0.99 1.06 1.25 (6) (47) 0.92 1.17 (25) Effective income tax rate 7.59 21.51 22.09 22.97 21.16 (1,392) (1,357) 20.76 21.93 (117) Effective income tax rate, Underlying2 22.25 21.69 22.51 23.25 21.37 56 88 22.48 22.19 29 Efficiency ratio 81.13 64.21 62.34 60.90 56.36 1,692 2,477 66.97 60.99 598 Efficiency ratio, Underlying2 63.77 63.08 58.86 57.84 54.42 69 935 60.81 57.51 330 Noninterest income as a % of total revenue 25.16 24.44 24.14 22.81 22.92 72 224 24.12 25.04 (92) Noninterest income as a % of total revenue, Underlying2 25.16 24.44 24.14 22.81 22.92 72 224 24.12 25.33 (121) CAPITAL RATIOS - PERIOD-END (PRELIMINARY) CET1 capital ratio 10.6 % 10.4 % 10.3 % 10.0 % 10.0 % Tier 1 capital ratio 11.8 11.5 11.4 11.1 11.1 Total capital ratio 13.7 13.4 13.3 12.9 12.8 Tier 1 leverage ratio 9.3 9.4 9.4 9.4 9.3 Tangible common equity ratio 6.7 5.9 6.3 6.6 6.3 SELECTED BALANCE SHEET DATA Loan-to-deposit ratio (period-end balances) 82.30 % 84.03 % 85.17 % 89.83 % 86.69 % (173) bps (439) bps 82.30 % 86.69 % (439) bps Loan-to-deposit ratio (average balances) 83.54 85.46 88.73 89.76 87.74 (192) bps (420) bps 86.83 86.77 6 bps Full-time equivalent colleagues (period-end) 17,570 18,214 18,468 18,547 18,889 (644) (4) (1,319) (7) 17,570 18,889 (1,319) (7) 1Net 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. 2These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations." 4

 
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (dollars in millions) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $ % INTEREST INCOME Interest and fees on loans and leases $2,144 $2,166 $2,132 $2,047 $1,893 ($22) (1%) $251 13% $8,489 $5,968 $2,521 42% Interest and fees on loans held for sale 18 20 20 15 16 (2) (10) 2 13 73 67 6 9 Interest and fees on other loans held for sale 4 8 12 5 10 (4) (50) (6) (60) 29 57 (28) (49) Investment securities 339 290 267 266 258 49 17 81 31 1,162 840 322 38 Interest-bearing deposits in banks 171 111 100 69 75 60 54 96 128 451 128 323 NM Total interest income 2,676 2,595 2,531 2,402 2,252 81 3 424 19 10,204 7,060 3,144 45 INTEREST EXPENSE Deposits 974 898 723 550 396 76 8 578 146 3,145 651 2,494 NM Short-term borrowed funds 7 8 22 6 2 (1) (13) 5 250 43 23 20 87 Long-term borrowed funds 207 167 198 203 159 40 24 48 30 775 374 401 107 Total interest expense 1,188 1,073 943 759 557 115 11 631 113 3,963 1,048 2,915 NM Net interest income 1,488 1,522 1,588 1,643 1,695 (34) (2) (207) (12) 6,241 6,012 229 4 NONINTEREST INCOME Service charges and fees 104 105 101 100 105 (1) (1) (1) (1) 410 420 (10) (2) Capital markets fees 87 67 82 83 98 20 30 (11) (11) 319 368 (49) (13) Card fees 70 74 80 72 71 (4) (5) (1) (1) 296 273 23 8 Trust and investment services fees 68 63 65 63 61 5 8 7 11 259 249 10 4 Mortgage banking fees 57 69 59 57 54 (12) (17) 3 6 242 261 (19) (7) Foreign exchange and derivative products 43 48 44 48 35 (5) (10) 8 23 183 188 (5) (3) Letter of credit and loan fees 42 43 43 40 41 (1) (2) 1 2 168 159 9 6 Securities gains, net 9 5 9 5 4 4 80 5 125 28 9 19 211 Other income 20 18 23 17 36 2 11 (16) (44) 78 82 (4) (5) Total noninterest income 500 492 506 485 505 8 2 (5) (1) 1,983 2,009 (26) (1) TOTAL REVENUE 1,988 2,014 2,094 2,128 2,200 (26) (1) (212) (10) 8,224 8,021 203 3 Provision (benefit) for credit losses 171 172 176 168 132 (1) (1) 39 30 687 474 213 45 NONINTEREST EXPENSE Salaries and employee benefits 667 659 615 658 633 8 1 34 5 2,599 2,549 50 2 Equipment and software 215 191 181 169 170 24 13 45 26 756 648 108 17 Outside services 174 160 177 176 170 14 9 4 2 687 700 (13) (2) Occupancy 125 107 136 124 110 18 17 15 14 492 410 82 20 Other operating expense 431 176 197 169 157 255 145 274 175 973 585 388 66 Total noninterest expense 1,612 1,293 1,306 1,296 1,240 319 25 372 30 5,507 4,892 615 13 Income before income tax expense 205 549 612 664 828 (344) (63) (623) (75) 2,030 2,655 (625) (24) Income tax expense 16 119 134 153 175 (103) (87) (159) (91) 422 582 (160) (27) Net income $189 $430 $478 $511 $653 ($241) (56%) ($464) (71%) $1,608 $2,073 ($465) (22%) Net income, Underlying1 $426 $448 $531 $560 $685 ($22) (5%) ($259) (38%) $1,965 $2,425 ($460) (19%) Net income available to common stockholders $159 $400 $444 $488 $621 ($241) (60%) ($462) (74%) $1,491 $1,960 ($469) (24%) Net income available to common stockholders, Underlying1 $396 $418 $497 $537 $653 ($22) (5%) ($257) (39%) $1,848 $2,312 ($464) (20%) 1 These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations." 5

 
CONSOLIDATED BALANCE SHEETS (unaudited) (dollars in millions, except par value) PERIOD-END BALANCES AS OF DECEMBER 31, 2023 CHANGE Dec 31, 2023 Sept 30, 2023 June 30, 2023 Mar 31, 2023 Dec 31, 2022 September 30, 2023 December 31, 2022 $ % $ % ASSETS Cash and due from banks $1,794 $1,395 $1,689 $1,283 $1,489 $399 29% $305 20% Interest-bearing cash and due from banks 9,834 14,005 9,878 6,691 9,058 (4,171) (30) 776 9 Interest-bearing deposits in banks 405 324 284 320 303 81 25 102 34 Debt securities available for sale, at fair value 29,777 25,069 24,755 23,845 24,007 4,708 19 5,770 24 Debt securities held to maturity 9,184 9,320 9,520 9,677 9,834 (136) (1) (650) (7) Loans held for sale, at fair value 676 749 1,225 855 774 (73) (10) (98) (13) Other loans held for sale 103 99 196 1,000 208 4 4 (105) (50) Loans and leases 145,959 149,746 151,320 154,688 156,662 (3,787) (3) (10,703) (7) Less: Allowance for loan and lease losses (2,098) (2,080) (2,044) (2,017) (1,983) (18) 1 (115) 6 Net loans and leases 143,861 147,666 149,276 152,671 154,679 (3,805) (3) (10,818) (7) Derivative assets 440 522 719 569 842 (82) (16) (402) (48) Premises and equipment 895 878 876 866 844 17 2 51 6 Bank-owned life insurance 3,291 3,275 3,263 3,244 3,236 16 — 55 2 Goodwill 8,188 8,188 8,188 8,177 8,173 — — 15 — Other intangible assets 157 167 175 185 197 (10) (6) (40) (20) Other assets 13,359 13,613 13,022 12,873 13,089 (254) (2) 270 2 TOTAL ASSETS $221,964 $225,270 $223,066 $222,256 $226,733 ($3,306) (1%) ($4,769) (2%) LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Deposits: Noninterest-bearing $37,107 $38,561 $40,286 $44,326 $49,283 ($1,454) (4%) ($12,176) (25%) Interest-bearing 140,235 139,636 137,381 127,868 131,441 599 — 8,794 7 Total deposits 177,342 178,197 177,667 172,194 180,724 (855) — (3,382) (2) Short-term borrowed funds 505 232 1,099 1,018 3 273 118 502 NM Derivative liabilities 1,562 2,109 2,270 1,704 1,909 (547) (26) (347) (18) Long-term borrowed funds: FHLB advances 3,786 7,036 5,029 11,779 8,519 (3,250) (46) (4,733) (56) Senior debt 5,170 5,258 5,258 5,263 5,555 (88) (2) (385) (7) Subordinated debt and other debt 4,511 5,060 3,813 1,813 1,813 (549) (11) 2,698 149 Total long-term borrowed funds 13,467 17,354 14,100 18,855 15,887 (3,887) (22) (2,420) (15) Other liabilities 4,746 4,500 4,345 4,284 4,520 246 5 226 5 TOTAL LIABILITIES 197,622 202,392 199,481 198,055 203,043 (4,770) (2) (5,421) (3) STOCKHOLDERS' EQUITY Preferred stock: $25.00 par value, 100,000,000 shares authorized for each of the periods presented 2,014 2,014 2,014 2,014 2,014 — — — — 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 22,250 22,231 22,207 22,183 22,142 19 — 108 — Retained earnings 9,816 9,856 9,655 9,416 9,159 (40) — 657 7 Treasury stock, at cost (5,986) (5,986) (5,734) (5,475) (5,071) — — (915) (18) Accumulated other comprehensive income (loss) (3,758) (5,243) (4,563) (3,943) (4,560) 1,485 28 802 18 TOTAL STOCKHOLDERS' EQUITY 24,342 22,878 23,585 24,201 23,690 1,464 6 652 3 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $221,964 $225,270 $223,066 $222,256 $226,733 ($3,306) (1%) ($4,769) (2%) Memo: Total tangible common equity $14,417 $12,930 $13,630 $14,247 $13,728 $1,487 12% $689 5% 6

 
LOANS AND DEPOSITS (dollars in millions) PERIOD-END BALANCES AS OF DECEMBER 31, 2023 CHANGE Dec 31, 2023 Sept 30, 2023 June 30, 2023 Mar 31, 2023 Dec 31, 2022 Sept 30, 2023 December 31, 2022 $ % $ % LOANS AND LEASES Commercial and industrial $43,826 $46,753 $48,038 $50,450 $51,836 ($2,927) (6%) ($8,010) (15%) Commercial real estate 29,471 29,486 28,947 28,999 28,865 (15) — 606 2 Leases 1,148 1,218 1,294 1,417 1,479 (70) (6) (331) (22) Total commercial 74,445 77,457 78,279 80,866 82,180 (3,012) (4) (7,735) (9) Residential mortgages 31,332 30,983 30,769 30,362 29,921 349 1 1,411 5 Home equity 15,040 14,729 14,487 14,135 14,043 311 2 997 7 Automobile 8,258 9,290 10,428 11,535 12,292 (1,032) (11) (4,034) (33) Education 11,834 12,134 12,246 12,634 12,808 (300) (2) (974) (8) Other retail 5,050 5,153 5,111 5,156 5,418 (103) (2) (368) (7) Total retail 71,514 72,289 73,041 73,822 74,482 (775) (1) (2,968) (4) Total loans and leases $145,959 $149,746 $151,320 $154,688 $156,662 ($3,787) (3%) ($10,703) (7%) Loans held for sale, at fair value 676 749 1,225 855 774 (73) (10) (98) (13) Other loans held for sale 103 99 196 1,000 208 4 4 (105) (50) Loans and leases and loans held for sale $146,738 $150,594 $152,741 $156,543 $157,644 ($3,856) (3%) ($10,906) (7%) DEPOSITS Demand $37,107 $38,561 $40,286 $44,326 $49,283 ($1,454) (4%) ($12,176) (25%) Money market 53,812 53,517 52,542 48,905 49,905 295 1 3,907 8 Checking with interest 31,876 33,355 35,028 34,496 39,721 (1,479) (4) (7,845) (20) Savings 27,983 29,139 29,824 29,789 29,805 (1,156) (4) (1,822) (6) Term 26,564 23,625 19,987 14,678 12,010 2,939 12 14,554 121 Total deposits $177,342 $178,197 $177,667 $172,194 $180,724 ($855) —% ($3,382) (2%) 7

 
(dollars in millions) QUARTERLY TRENDS 4Q23 Change 4Q23 3Q23 4Q22 3Q23 4Q22 Average Balances Interest Rate Average Balances Interest Rate Average Balances Interest Rate Average Balances Interest Rate Average Balances Interest Rate INTEREST-EARNING ASSETS Interest-bearing cash and due from banks and deposits in banks $12,387 $171 5.43% $8,005 $111 5.42% $6,915 $75 4.22% $4,382 $60 1 bps $5,472 $96 121 bps Taxable investment securities 41,497 339 3.25 39,271 290 2.95 38,770 258 2.66 2,226 49 30 2,727 81 59 Non-taxable investment securities 2 — 2.66 2 — 2.68 2 — 2.39 — — (2) — — 27 Total investment securities 41,499 339 3.25 39,273 290 2.95 38,772 258 2.66 2,226 49 30 2,727 81 59 Commercial and industrial 45,433 706 6.07 47,658 750 6.17 52,311 652 4.89 (2,225) (44) (10) (6,878) 54 118 Commercial real estate 29,460 476 6.32 29,353 467 6.23 28,735 382 5.19 107 9 9 725 94 113 Leases 1,185 10 3.54 1,250 12 3.56 1,422 12 3.25 (65) (2) (2) (237) (2) 29 Total commercial 76,078 1,192 6.13 78,261 1,229 6.15 82,468 1,046 4.97 (2,183) (37) (2) (6,390) 146 116 Residential mortgages 31,146 276 3.55 30,838 267 3.46 29,677 246 3.32 308 9 9 1,469 30 23 Home equity 14,889 302 8.04 14,589 286 7.77 13,869 204 5.84 300 16 27 1,020 98 220 Automobile 8,752 94 4.24 9,849 103 4.16 12,692 125 3.90 (1,097) (9) 8 (3,940) (31) 34 Education 11,971 156 5.17 12,147 156 5.11 12,929 148 4.54 (176) — 6 (958) 8 63 Other retail 5,133 124 9.64 5,107 125 9.67 5,464 124 9.02 26 (1) (3) (331) — 62 Total retail 71,891 952 5.27 72,530 937 5.14 74,631 847 4.52 (639) 15 13 (2,740) 105 75 Total loans and leases 147,969 2,144 5.71 150,791 2,166 5.66 157,099 1,893 4.75 (2,822) (22) 5 (9,130) 251 96 Loans held for sale, at fair value 1,047 18 6.79 1,204 20 6.72 1,179 16 5.32 (157) (2) 7 (132) 2 147 Other loans held for sale 219 4 7.72 321 8 9.01 557 10 6.70 (102) (4) (129) (338) (6) 102 Total interest-earning assets 203,121 2,676 5.20 199,594 2,595 5.13 204,522 2,252 4.35 3,527 81 7 (1,401) 424 85 Noninterest-earning assets 20,532 20,568 20,448 (36) 84 TOTAL ASSETS $223,653 $220,162 $224,970 $3,491 ($1,317) INTEREST-BEARING LIABILITIES Checking with interest $31,788 113 1.40 $33,545 126 1.49 $36,952 77 0.82 ($1,757) (13) (9) ($5,164) $36 58 Money market 53,003 444 3.32 52,057 415 3.17 50,228 208 1.65 946 29 15 2,775 236 167 Regular savings 28,455 123 1.72 29,516 123 1.65 29,780 58 0.78 (1,061) — 7 (1,325) 65 94 Term 25,492 294 4.59 21,604 234 4.29 11,378 53 1.83 3,888 60 30 14,114 241 276 Total interest-bearing deposits 138,738 974 2.79 136,722 898 2.60 128,338 396 1.23 2,016 76 19 10,400 578 156 Short-term borrowed funds 491 7 5.63 506 8 6.21 262 2 3.83 (15) (1) (58) 229 5 180 FHLB advances 5,751 83 5.62 4,023 56 5.54 8,818 82 3.67 1,728 27 8 (3,067) 1 195 Senior debt 5,217 57 4.34 5,259 56 4.33 5,397 55 4.05 (42) 1 1 (180) 2 29 Subordinated debt and other debt 4,720 67 5.71 3,920 55 5.43 1,812 22 4.59 800 12 28 2,908 45 112 Total long-term borrowed funds 15,688 207 5.22 13,202 167 5.02 16,027 159 3.91 2,486 40 20 (339) 48 131 Total borrowed funds 16,179 214 5.24 13,708 175 5.07 16,289 161 3.90 2,471 39 17 (110) 53 134 Total interest-bearing liabilities 154,917 1,188 3.04 150,430 1,073 2.83 144,627 557 1.53 4,487 115 21 10,290 631 151 Demand deposits 38,390 39,728 50,706 (1,338) (12,316) Other noninterest-bearing liabilities 7,123 6,813 6,347 310 776 TOTAL LIABILITIES 200,430 196,971 201,680 3,459 (1,250) STOCKHOLDERS' EQUITY 23,223 23,191 23,290 32 (67) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $223,653 $220,162 $224,970 $3,491 ($1,317) INTEREST RATE SPREAD 2.16 % 2.30 % 2.82 % (14) (66) NET INTEREST MARGIN AND NET INTEREST INCOME $1,488 2.90 % $1,522 3.03 % $1,695 3.29 % ($34) (13) ($207) (39) NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1 $1,492 2.91 % $1,526 3.03 % $1,699 3.30 % ($34) (12) ($207) (39) Memo: Total deposits (interest-bearing and demand) $177,128 $974 2.18 % $176,450 $898 2.02 % $179,044 $396 0.88 % $678 $76 16 bps ($1,916) $578 130 bps AVERAGE BALANCE SHEETS, ANNUALIZED YIELDS AND RATES 1Net 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. 8

 
(dollars in millions) FULL YEAR 2023 Change 2023 2022 2022 Average Balances Interest Rate Average Balances Interest Rate Average Balances Interest Rate INTEREST-EARNING ASSETS Interest-bearing cash and due from banks and deposits in banks $8,531 $451 5.22% $6,195 $128 2.04% $2,336 $323 318 bps Taxable investment securities 39,437 1,162 2.94 35,639 840 2.35 3,798 322 59 Non-taxable investment securities 2 — 2.68 3 — 2.33 (1) — 35 Total investment securities 39,439 1,162 2.94 35,642 840 2.35 3,797 322 59 Commercial and industrial 48,693 2,956 5.99 50,002 1,942 3.83 (1,309) 1,014 216 Commercial real estate 29,206 1,804 6.09 24,746 1,026 4.09 4,460 778 200 Leases 1,305 46 3.53 1,521 46 3.00 (216) — 53 Total commercial 79,204 4,806 5.99 76,269 3,014 3.90 2,935 1,792 209 Residential mortgages 30,660 1,052 3.43 27,759 876 3.16 2,901 176 27 Home equity 14,475 1,092 7.54 13,057 555 4.25 1,418 537 329 Automobile 10,374 429 4.13 13,729 507 3.69 (3,355) (78) 44 Education 12,333 621 5.04 13,047 560 4.29 (714) 61 75 Other retail 5,171 489 9.46 5,483 456 8.31 (312) 33 115 Total retail 73,013 3,683 5.04 73,075 2,954 4.04 (62) 729 100 Total loans and leases 152,217 8,489 5.53 149,344 5,968 3.97 2,873 2,521 156 Loans held for sale, at fair value 1,160 73 6.26 1,767 67 3.77 (607) 6 249 Other loans held for sale 339 29 8.43 1,188 57 4.71 (849) (28) 372 Total interest-earning assets 201,686 10,204 5.02 194,136 7,060 3.61 7,550 3,144 141 Noninterest-earning assets 20,535 20,925 (390) TOTAL ASSETS $222,221 $215,061 $7,160 INTEREST-BEARING LIABILITIES Checking with interest $33,960 446 1.31 $36,127 142 0.39 ($2,167) 304 92 Money market 51,178 1,494 2.92 48,410 320 0.66 2,768 1,174 226 Regular savings 29,266 433 1.48 27,524 100 0.37 1,742 333 111 Term 19,320 772 4.00 8,330 89 1.07 10,990 683 293 Total interest-bearing deposits 133,724 3,145 2.35 120,391 651 0.54 13,333 2,494 181 Short-term borrowed funds 746 43 5.70 1,584 23 1.47 (838) 20 423 FHLB advances 7,431 383 5.09 5,659 149 2.60 1,772 234 249 Senior debt 5,335 231 4.33 4,631 144 3.11 704 87 122 Subordinated debt and other debt 3,087 161 5.21 1,788 81 4.44 1,299 80 77 Total long-term borrowed funds 15,853 775 4.86 12,078 374 3.07 3,775 401 179 Total borrowed funds 16,599 818 4.89 13,662 397 2.88 2,937 421 201 Total interest-bearing liabilities 150,323 3,963 2.63 134,053 1,048 0.78 16,270 2,915 185 Demand deposits 41,581 51,717 (10,136) Other noninterest-bearing liabilities 6,711 5,553 1,158 TOTAL LIABILITIES 198,615 191,323 7,292 STOCKHOLDERS' EQUITY 23,606 23,738 (132) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $222,221 $215,061 $7,160 INTEREST RATE SPREAD 2.39 % 2.83 % (44) NET INTEREST MARGIN AND NET INTEREST INCOME $6,241 3.09 % $6,012 3.10 % $229 (1) NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1 $6,258 3.10 % $6,023 3.10 % $235 — Memo: Total deposits (interest-bearing and demand) $175,305 $3,145 1.79 % $172,108 $651 0.38 % $3,197 $2,494 141 bps AVERAGE BALANCE SHEETS, ANNUALIZED YIELDS AND RATES 1Net 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

 
MORTGAGE BANKING FEES SUMMARY (dollars in millions) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % MORTGAGE BANKING FEES Production revenue $11 $19 $23 $18 $12 ($8) (42%) ($1) (8%) $71 $84 ($13) (15%) Mortgage servicing revenue 37 35 34 37 40 2 6 (3) (8) 143 147 (4) (3) MSR valuation changes, net of hedge impact 9 15 2 2 2 (6) (40) 7 NM 28 30 (2) (7) Total mortgage banking fees $57 $69 $59 $57 $54 ($12) (17%) $3 6% $242 $261 ($19) (7%) Pull-through adjusted locks $1,412 $2,397 $2,870 $2,078 $1,665 ($985) (41%) ($253) (15%) $8,757 $13,413 ($4,656) (35%) Production revenue as a percentage of Pull-through adjusted locks 0.78 % 0.79 % 0.79 % 0.90 % 0.72 % (1) bps 6 bps 0.81% 0.63% 19 bps RESIDENTIAL REAL ESTATE ORIGINATIONS Retail $958 $1,146 $1,260 $1,011 $1,103 ($188) (16%) ($145) (13%) $4,375 $8,951 ($4,576) (51%) Third Party 1,214 2,285 2,350 1,333 1,652 (1,071) (47) (438) (27) 7,182 12,019 (4,837) (40) Total $2,172 $3,431 $3,610 $2,344 $2,755 ($1,259) (37%) (583) (21%) $11,557 $20,970 ($9,413) (45%) Originated for sale $1,595 $2,815 $2,874 $1,651 $2,044 ($1,220) (43%) ($449) (22%) $8,935 $15,073 ($6,138) (41%) Originated for investment 577 616 736 693 711 (39) (6) (134) (19) 2,622 5,897 (3,275) (56) Total $2,172 $3,431 $3,610 $2,344 $2,755 ($1,259) (37%) ($583) (21%) $11,557 $20,970 ($9,413) (45%) MORTGAGE SERVICING INFORMATION (UPB) Loans serviced for others $97,420 $97,603 $96,591 $96,346 $96,698 ($183) —% $722 1% $97,420 $96,698 $722 1% Owned loans serviced 31,640 31,436 31,636 30,827 30,135 204 1 1,505 5 31,640 30,135 1,505 5 Total $129,060 $129,039 $128,227 $127,173 $126,833 $21 —% $2,227 2% $129,060 $126,833 $2,227 2% MSR at fair value $1,552 $1,620 $1,524 $1,496 $1,530 ($68) (4%) $22 1% $1,552 $1,530 $22 1% 10

 
SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING (dollars in millions) QUARTERLY TRENDS FULL YEAR CONSUMER BANKING1 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Net interest income $1,086 $1,067 $1,023 $1,011 $1,014 $19 2% $72 7% $4,187 $3,649 $538 15% Noninterest income 265 278 268 256 256 (13) (5) 9 4 1,067 1,063 4 — Total revenue 1,351 1,345 1,291 1,267 1,270 6 — 81 6 5,254 4,712 542 12 Noninterest expense 905 905 875 857 831 — — 74 9 3,542 3,255 287 9 Profit (loss) before credit losses 446 440 416 410 439 6 1 7 2 1,712 1,457 255 18 Net charge-offs 82 67 68 63 57 15 22 25 44 280 174 106 61 Income (loss) before income tax expense (benefit) 364 373 348 347 382 (9) (2) (18) (5) 1,432 1,283 149 12 Income tax expense (benefit) 95 97 91 90 98 (2) (2) (3) (3) 373 328 45 14 Net income (loss) $269 $276 $257 $257 $284 ($7) (3%) ($15) (5%) $1,059 $955 $104 11% AVERAGE BALANCES Total assets $73,334 $72,964 $72,583 $71,872 $71,688 $370 1% $1,646 2% $72,693 $68,027 $4,666 7% Total loans and leases2 66,906 66,641 66,289 65,570 65,619 265 — 1,287 2 66,356 62,523 3,833 6 Deposits 118,474 117,979 115,847 115,578 117,164 495 — 1,310 1 116,980 114,482 2,498 2 Interest-earning assets 67,524 67,273 66,933 66,251 66,338 251 — 1,186 2 66,999 63,289 3,710 6 KEY METRICS Net interest margin 6.40 % 6.28 % 6.12 % 6.20 % 6.07 % 12 bps 33 bps 6.25 % 5.77 % 48 bps Efficiency ratio 67.08 67.18 67.74 67.70 65.39 (10) bps 169 bps 67.42 69.08 (166) bps Loan-to-deposit ratio (period-end balances) 55.52 55.81 55.35 56.37 54.91 (29) bps 61 bps 55.52 54.91 61 bps Loan-to-deposit ratio (average balances) 55.88 55.71 56.44 56.25 55.14 17 bps 74 bps 56.07 53.18 289 bps Return on average total tangible assets 1.47 1.51 1.43 1.46 1.59 (4) bps (12) bps 1.47 1.41 6 bps 1 During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment. In addition, the Company revised its funds transfer pricing ("FTP") methodology relative to the funding of Non-Core assets, with the FTP charge based on a marginal high-cost funding waterfall approach. Prior period results have been revised to conform to the new segment presentation. 2 Includes loans held for sale. 11

 
SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING (dollars in millions) QUARTERLY TRENDS FULL YEAR COMMERCIAL BANKING 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Net interest income $551 $560 $584 $597 $595 ($9) (2%) ($44) (7%) $2,292 $2,103 $189 9% Noninterest income 196 180 207 201 198 16 9 (2) (1) 784 845 (61) (7) Total revenue 747 740 791 798 793 7 1 (46) (6) 3,076 2,948 128 4 Noninterest expense 324 325 315 331 318 (1) — 6 2 1,295 1,223 72 6 Profit (loss) before credit losses 423 415 476 467 475 8 2 (52) (11) 1,781 1,725 56 3 Net charge-offs 65 67 71 47 12 (2) (3) 53 NM 250 46 204 NM Income (loss) before income tax expense (benefit) 358 348 405 420 463 10 3 (105) (23) 1,531 1,679 (148) (9) Income tax expense (benefit) 89 88 100 101 105 1 1 (16) (15) 378 375 3 1 Net income (loss) $269 $260 $305 $319 $358 $9 3% ($89) (25%) $1,153 $1,304 ($151) (12%) AVERAGE BALANCES Total assets $72,758 $74,997 $77,546 $78,891 $79,591 ($2,239) (3%) ($6,833) (9%) $76,028 $74,919 $1,109 1% Total loans and leases1 69,899 71,898 74,295 75,734 75,773 (1,999) (3) (5,874) (8) 72,937 70,992 1,945 3 Deposits 46,962 47,221 45,494 48,966 52,303 (259) (1) (5,341) (10) 47,155 49,898 (2,743) (5) Interest-earning assets 70,267 72,275 74,687 76,130 76,097 (2,008) (3) (5,830) (8) 73,321 71,276 2,045 3 KEY METRICS Net interest margin 3.11 % 3.07 % 3.13 % 3.18 % 3.10 % 4 bps 1 bps 3.12 % 2.95 % 17 bps Efficiency ratio 43.44 43.93 39.76 41.47 40.18 (49) bps 326 bps 42.10 41.50 60 bps Loan-to-deposit ratio (period-end balances) 146.09 145.77 150.41 162.54 141.44 32 bps 465 bps 146.09 141.44 465 bps Loan-to-deposit ratio (average balances) 147.64 150.96 160.89 153.33 143.49 (332) bps 415 bps 153.12 139.65 1,347 bps Return on average total tangible assets 1.48 1.39 1.59 1.66 1.80 9 bps (32) bps 1.53 1.76 (23) bps 1 Includes loans held for sale. 12

 
SEGMENT FINANCIAL HIGHLIGHTS - NON-CORE (dollars in millions) QUARTERLY TRENDS FULL YEAR NON-CORE1 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Net interest income ($45) ($41) ($28) ($15) $19 ($4) (10%) ($64) NM ($129) $378 ($507) NM Noninterest income — — — — — — — — — — — — — Total revenue (45) (41) (28) (15) 19 (4) (10) (64) NM (129) 378 (507) NM Noninterest expense 28 30 33 32 31 (2) (7) (3) (10) 123 136 (13) (10) Profit (loss) before credit losses (73) (71) (61) (47) (12) (2) (3) (61) NM (252) 242 (494) NM Net charge offs 24 20 13 21 19 4 20 5 26 78 52 26 50 Income (loss) before income tax expense (benefit) (97) (91) (74) (68) (31) (6) (7) (66) (213) (330) 190 (520) NM Income tax expense (benefit) (25) (24) (19) (18) (8) (1) (4) (17) (213) (86) 48 (134) NM Net income (loss) ($72) ($67) ($55) ($50) ($23) ($5) (7%) ($49) (213%) ($244) $142 ($386) NM AVERAGE BALANCES Total assets $11,776 $13,113 $14,456 $15,686 $16,752 ($1,337) (10%) ($4,976) (30%) $13,745 $18,121 ($4,376) (24%) Total loans and leases2 11,701 13,010 14,395 15,620 16,683 (1,309) (10) (4,982) (30) 13,669 18,048 (4,379) (24) Interest-earning assets 11,726 13,010 14,395 15,620 16,683 (1,284) (10) (4,957) (30) 13,675 18,048 (4,373) (24) KEY METRICS Net interest margin (1.54) % (1.24) % (0.77) % (0.40) % 0.47 % (30) bps (201) bps (0.94) % 2.10 % (304) bps Return on average total tangible assets (2.42) (2.03) (1.53) (1.30) (0.54) (39) bps (188) bps (1.78) 0.78 (256) bps 1 During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment. In addition, the Company revised its funds transfer pricing ("FTP") methodology relative to the funding of Non-Core assets, with the FTP charge based on a marginal high-cost funding waterfall approach. Prior period results have been revised to conform to the new segment presentation. 2 Includes loans held for sale. 13

 
SEGMENT FINANCIAL HIGHLIGHTS - OTHER (dollars in millions) QUARTERLY TRENDS FULL YEAR OTHER1,2 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $ % Net interest income ($104) ($64) $9 $50 $67 ($40) (63%) ($171) NM ($109) ($118) $9 8% Noninterest income 39 34 31 28 51 5 15 (12) (24) 132 101 31 31 Total revenue (65) (30) 40 78 118 (35) (117) (183) NM 23 (17) 40 NM Noninterest expense 355 33 83 76 60 322 NM 295 NM 547 278 269 97 Profit (loss) before provision (benefit) for credit losses (420) (63) (43) 2 58 (357) NM (478) NM (524) (295) (229) (78) Provision (benefit) for credit losses — 18 24 37 44 (18) (100) (44) (100) 79 202 (123) (61) Income (loss) before income tax expense (benefit) (420) (81) (67) (35) 14 (339) NM (434) NM (603) (497) (106) (21) Income tax expense (benefit) (143) (42) (38) (20) (20) (101) (240) (123) NM (243) (169) (74) (44) Net income (loss) ($277) ($39) ($29) ($15) $34 ($238) NM ($311) NM ($360) ($328) ($32) (10) AVERAGE BALANCES Total assets $65,785 $59,088 $57,788 $56,262 $56,939 $6,697 11% $8,846 16% $59,755 $53,994 $5,761 11% Total loans and leases3 729 766 748 773 760 (37) (5) (31) (4) 755 736 19 3 Deposits 11,692 11,250 11,908 9,806 9,577 442 4 2,115 22 11,170 7,728 3,442 45 Interest-earning assets 53,604 47,035 45,482 44,550 45,405 6,569 14 8,199 18 47,691 41,522 6,169 15 1 Includes assets, liabilities, capital, revenues, provision for credit losses, expenses and income tax expense not attributed to our Consumer Banking, Commercial Banking, or Non-Core segments as well as treasury and community development. 2 During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment. In addition, the Company revised its funds transfer pricing ("FTP") methodology relative to the funding of Non-Core assets, with the FTP charge based on a marginal high-cost funding waterfall approach. Prior period results have been revised to conform to the new segment presentation. 3 Includes loans held for sale. 14

 
CREDIT-RELATED INFORMATION (dollars in millions) AS OF DECEMBER 31, 2023 CHANGE Dec 31, 2023 Sept 30, 2023 June 30, 2023 Mar 31, 2023 Dec 31, 2022 Sept 30, 2023 December 31, 2022 $/bps/% % $/bps/% % NONACCRUAL LOANS AND LEASES Commercial and industrial $294 $242 $280 $297 $249 $52 21% $45 18% Commercial real estate 477 470 352 140 103 7 1 374 NM Leases 3 3 3 — — — — 3 100 Total commercial 774 715 635 437 352 59 8 422 120 Residential mortgages1 177 190 201 216 234 (13) (7) (57) (24) Home equity 285 268 251 240 241 17 6 44 18 Automobile 61 62 51 50 56 (1) (2) 5 9 Education 28 23 22 23 33 5 22 (5) (15) Other retail 39 38 31 30 28 1 3 11 39 Total retail 590 581 556 559 592 9 2 (2) — Nonaccrual loans and leases 1,364 1,296 1,191 996 944 68 5 420 44 Repossessed assets 14 15 11 14 16 (1) (7) (2) (13) Nonaccrual loans and leases and repossessed assets $1,378 $1,311 $1,202 $1,010 $960 $67 5% $418 44% NONACCRUAL LOANS AND LEASES BY PRODUCT2 Commercial $774 $715 $635 $437 $352 $59 8% $422 120% Retail 604 596 567 573 608 8 1 (4) (1) Total nonaccrual loans and leases $1,378 $1,311 $1,202 $1,010 $960 $67 5% $418 44% ASSET QUALITY RATIOS Allowance for loan and lease losses to loans and leases 1.44% 1.39% 1.35% 1.30% 1.27% 5 bps 17 bps Allowance for credit losses to loans and leases 1.59 1.55 1.52 1.47 1.43 4 16 Allowance for loan and lease losses to nonaccrual loans and leases 154 160 172 203 210 (6%) (56%) Allowance for credit losses to nonaccrual loans and leases 170 179 193 229 237 (9%) (67%) Nonaccrual loans and leases to loans and leases 0.93 0.87 0.79 0.64 0.60 6 bps 33 bps 1Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing. 2Nonaccrual loans and leases by product includes repossessed assets. 15

 
CREDIT-RELATED INFORMATION, CONTINUED (dollars in millions) AS OF DECEMBER 31, 2023 CHANGE Dec 31, 2023 Sept 30, 2023 June 30, 2023 Mar 31, 2023 Dec 31, 2022 Sept 30, 2023 December 31, 2022 $/bps % $/bps % LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING Commercial and industrial $6 $4 $2 $21 $21 $2 50% ($15) (71%) Commercial real estate 40 3 — 63 1 37 NM 39 NM Leases — — — — — — — — — Total commercial 46 7 2 84 22 39 NM 24 109 Residential mortgages1 256 217 257 314 319 39 18 (63) (20) Home equity — — — — — — — — — Automobile — — — — — — — — — Education 2 3 3 3 4 (1) (33) (2) (50) Other retail 29 21 20 23 22 8 38 7 32 Total retail 287 241 280 340 345 46 19 (58) (17) Total loans and leases $333 $248 $282 $424 $367 $85 34% ($34) (9%) 1 90+ days past due and accruing includes $243 million, $216 million, $256 million, $309 million, and $316 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively. 16

 
CREDIT-RELATED INFORMATION, CONTINUED (dollars in millions) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $ % CHARGE-OFFS, RECOVERIES AND RELATED RATIOS GROSS CHARGE-OFFS Commercial and industrial $24 $25 $17 $55 $21 ($1) (4%) $3 14 $121 $68 $53 78% Commercial real estate 49 49 62 4 — — — 49 100 164 2 162 NM Leases — — — — — — — — — — — — — Total commercial 73 74 79 59 21 (1) (1) 52 248 285 70 215 NM Residential mortgages 3 1 1 1 1 2 200 2 200 6 5 1 20 Home equity 4 3 3 2 2 1 33 2 100 12 9 3 33 Automobile 31 28 24 30 27 3 11 4 15 113 93 20 22 Education 35 27 26 23 24 8 30 11 46 111 78 33 42 Other retail 60 58 56 56 51 2 3 9 18 230 179 51 28 Total retail 133 117 110 112 105 16 14 28 27 472 364 108 30 Total gross charge-offs $206 $191 $189 $171 $126 $15 8% $80 63% $757 $434 $323 74% GROSS RECOVERIES Commercial and industrial $3 $3 $2 $3 $5 $— —% ($2) (40%) $11 $17 ($6) (35%) Commercial real estate 1 1 — 1 — — — 1 100 3 1 2 200 Leases — — 1 3 — — — — — 4 — 4 100 Total commercial 4 4 3 7 5 — — (1) (20) 18 18 — — Residential mortgages 1 2 1 — 1 (1) (50) — — 4 6 (2) (33) Home equity 5 6 6 5 6 (1) (17) (1) (17) 22 37 (15) (41) Automobile 14 13 16 15 14 1 8 — — 58 57 1 2 Education 5 5 4 5 5 — — — — 19 19 — — Other retail 6 8 7 6 7 (2) (25) (1) (14) 27 27 — — Total retail 31 34 34 31 33 (3) (9) (2) (6) 130 146 (16) (11) Total gross recoveries $35 $38 $37 $38 $38 ($3) (8%) ($3) (8%) $148 $164 ($16) (10%) NET CHARGE-OFFS (RECOVERIES) Commercial and industrial $21 $22 $15 $52 $16 ($1) (5%) $5 31 $110 $51 $59 116 Commercial real estate 48 48 62 3 — — — 48 100 161 1 160 NM Leases — — (1) (3) — — — — — (4) — (4) — Total commercial 69 70 76 52 16 (1) (1) 53 NM 267 52 215 NM Residential mortgages 2 (1) — 1 — 3 NM 2 100 2 (1) 3 NM Home equity (1) (3) (3) (3) (4) 2 67 3 75 (10) (28) 18 64 Automobile 17 15 8 15 13 2 13 4 31 55 36 19 53 Education 30 22 22 18 19 8 36 11 58 92 59 33 56 Other retail 54 50 49 50 44 4 8 10 23 203 152 51 34 Total retail 102 83 76 81 72 19 23 30 42 342 218 124 57 Total net charge-offs $171 $153 $152 $133 $88 $18 12% $83 94% $609 $270 $339 126% 17

 
CREDIT-RELATED INFORMATION, CONTINUED (dollars in millions) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES Commercial and industrial 0.18% 0.18% 0.12% 0.40% 0.12% — bps 6 bps 0.23% 0.10% 13 bps Commercial real estate 0.66 0.65 0.86 0.05 — 1 66 0.56 — 56 Leases (0.04) — (0.22) (0.85) (0.06) (4) 2 (0.29) (0.03) (26) Total commercial 0.36 0.35 0.38 0.26 0.07 1 29 0.34 0.07 27 Residential mortgages 0.02 (0.02) — 0.01 — 4 2 — — — Home equity (0.04) (0.08) (0.08) (0.07) (0.12) 4 8 (0.07) (0.22) 15 Automobile 0.77 0.60 0.30 0.51 0.42 17 35 0.53 0.26 27 Education 1.00 0.72 0.68 0.57 0.59 28 41 0.74 0.45 29 Other retail 4.13 3.95 3.84 3.81 3.21 18 92 3.93 2.77 116 Total retail 0.56 0.46 0.41 0.44 0.39 10 17 0.47 0.30 17 Total loans and leases 0.46 % 0.40 % 0.40 % 0.34 % 0.22 % 6 bps 24 bps 0.40 % 0.18 % 22 bps Memo: Average loans Commercial and industrial $45,433 $47,658 $49,770 $51,993 $52,311 ($2,225) (5%) ($6,878) (13%) $48,693 $50,002 ($1,309) (3%) Commercial real estate 29,460 29,353 29,115 28,892 28,735 107 — 725 3 29,206 24,746 4,460 18 Leases 1,185 1,250 1,352 1,436 1,422 (65) (5) (237) (17) 1,305 1,521 (216) (14) Total commercial 76,078 78,261 80,237 82,321 82,468 (2,183) (3) (6,390) (8) 79,204 76,269 2,935 4 Residential mortgages 31,146 30,838 30,566 30,075 29,677 308 1 1,469 5 30,660 27,759 2,901 10 Home equity 14,889 14,589 14,340 14,073 13,869 300 2 1,020 7 14,475 13,057 1,418 11 Automobile 8,752 9,849 10,997 11,937 12,692 (1,097) (11) (3,940) (31) 10,374 13,729 (3,355) (24) Education 11,971 12,147 12,430 12,796 12,929 (176) (1) (958) (7) 12,333 13,047 (714) (5) Other retail 5,133 5,107 5,155 5,290 5,464 26 1 (331) (6) 5,171 5,483 (312) (6) Total retail 71,891 72,530 73,488 74,171 74,631 (639) (1) (2,740) (4) 73,013 73,075 (62) — Total loans and leases $147,969 $150,791 $153,725 $156,492 $157,099 ($2,822) (2%) ($9,130) (6%) $152,217 $149,344 $2,873 2% 18

 
CREDIT-RELATED INFORMATION, CONTINUED (dollars in millions) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $ % SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES Allowance for loan and lease losses - beginning $2,080 $2,044 $2,017 $1,983 $1,980 $36 2% $100 5% $1,983 $1,758 $225 13% Allowance on PCD loans and leases at acquisition: Commercial — — — — — — — — — — 99 (99) (100) Retail — — — — — — — — — — 2 (2) (100) Total Allowance on PCD loans and leases at acquisition — — — — — — — — — — 101 (101) (100) Charge-offs: Commercial 73 74 79 59 21 (1) (1) 52 248 285 70 215 NM Retail 133 117 110 112 105 16 14 28 27 472 364 108 30 Total charge-offs 206 191 189 171 126 15 8 80 63 757 434 323 74 Recoveries: Commercial 4 4 3 7 5 — — (1) (20) 18 18 — — Retail 31 34 34 31 33 (3) (9) (2) (6) 130 146 (16) (11) Total recoveries 35 38 37 38 38 (3) (8) (3) (8) 148 164 (16) (10) Net charge-offs 171 153 152 133 88 18 12 83 94 609 270 339 126 Provision (benefit) for loan and lease losses: Commercial 86 146 122 103 46 (60) (41) 40 87 457 192 265 138 Retail 103 43 57 64 45 60 140 58 129 267 202 65 32 Total provision (benefit) for loan and lease losses 189 189 179 167 91 — — 98 108 724 394 330 84 Allowance for loan and lease losses - ending $2,098 $2,080 $2,044 $2,017 $1,983 $18 1% $115 6% $2,098 $1,983 $115 6% Allowance for unfunded lending commitments - beginning $238 $255 $258 $257 $216 ($17) (7%) $22 10% $257 $176 $81 46% Allowance on PCD unfunded lending commitments at acquisition — — — — — — —% — — — 1 (1) (100) Provision (benefit) for unfunded lending commitments (18) (17) (3) 1 41 (1) (6%) (59) NM (37) 80 (117) NM Allowance for unfunded lending commitments - ending $220 $238 $255 $258 $257 ($18) (8%) ($37) (14) $220 $257 ($37) (14) Total allowance for credit losses - ending $2,318 $2,318 $2,299 $2,275 $2,240 $— —% $78 3% $2,318 $2,240 $78 3% Memo: Total allowance for credit losses by product Commercial $1,425 $1,425 $1,370 $1,326 $1,267 $— —% $158 12% $1,425 $1,267 $158 12% Retail 893 893 929 949 973 — — (80) (8) 893 973 (80) (8) Total allowance for credit losses $2,318 $2,318 $2,299 $2,275 $2,240 $— —% $78 3% $2,318 $2,240 $78 3% 19

 
CAPITAL AND RATIOS (dollars in millions) AS OF FULL YEAR DECEMBER 31, 2023 CHANGE 2023 Change Dec 31, 2023 Sept 30, 2023 June 30, 2023 Mar 31, 2023 Dec 31, 2022 Sept 30, 2023 December 31, 2022 2023 2022 2022 $ % $ % $ % CAPITAL RATIOS AND COMPONENTS (PRELIMINARY) CET1 capital $18,358 $18,360 $18,381 $18,370 $18,574 ($2) —% ($216) (1%) Tier 1 capital 20,372 20,374 20,395 20,384 20,588 (2) — (216) (1) Total capital 23,608 23,682 23,748 23,720 23,755 (74) — (147) (1) Risk-weighted assets 172,601 176,407 179,034 183,246 185,224 (3,806) (2) (12,623) (7) Adjusted average assets1 219,591 215,877 217,264 217,998 220,779 3,714 2 (1,188) (1) CET1 capital ratio 10.6 % 10.4 % 10.3 % 10.0 % 10.0 % Tier 1 capital ratio 11.8 11.5 11.4 11.1 11.1 Total capital ratio 13.7 13.4 13.3 12.9 12.8 Tier 1 leverage ratio 9.3 9.4 9.4 9.4 9.3 TANGIBLE COMMON EQUITY (PERIOD-END) Common stockholders' equity $22,329 $20,864 $21,571 $22,187 $21,676 $1,465 7% $653 3% $22,329 $21,676 $653 3% Less: Goodwill 8,188 8,188 8,188 8,177 8,173 — — 15 — 8,188 8,173 15 — Less: Other intangible assets 157 167 175 185 197 (10) (6) (40) (20) 157 197 (40) (20) Add: Deferred tax liabilities2 433 421 422 422 422 12 3 11 3 433 422 11 3 Total tangible common equity $14,417 $12,930 $13,630 $14,247 $13,728 $1,487 12% $689 5% $14,417 $13,728 $689 5% TANGIBLE COMMON EQUITY (AVERAGE) Common stockholders' equity $21,209 $21,177 $22,289 $21,702 $21,276 $32 —% ($67) —% $21,592 $21,724 ($132) (1%) Less: Goodwill 8,188 8,188 8,182 8,177 8,171 — — 17 — 8,184 7,872 312 4 Less: Other intangible assets 163 173 181 192 199 (10) (6) (36) (18) 177 181 (4) (2) Add: Deferred tax liabilities2 421 422 422 422 424 (1) — (3) (1) 422 413 9 2 Total tangible common equity $13,279 $13,238 $14,348 $13,755 $13,330 $41 —% ($51) —% $13,653 $14,084 ($431) (3%) INTANGIBLE ASSETS (PERIOD-END) Goodwill $8,188 $8,188 $8,188 $8,177 $8,173 $— —% $15 —% $8,188 $8,173 $15 —% Other intangible assets 157 167 175 185 197 (10) (6) (40) (20) 157 197 (40) (20) Total intangible assets $8,345 $8,355 $8,363 $8,362 $8,370 ($10) —% ($25) —% $8,345 $8,370 ($25) —% 1Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible assets, net of deferred taxes, and the accumulated other comprehensive income impact related to the adoption of post-retirement benefit plan guidance under GAAP. 2Deferred tax liabilities relate to tax-deductible goodwill and other intangible assets. 20

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (dollars in millions, except per share data) Non-GAAP Financial Measures This document contains non-GAAP financial measures denoted as Underlying. 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. 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. 21

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (dollars in millions, except per share data) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $ % Noninterest income, Underlying: Noninterest income (GAAP) A $500 $492 $506 $485 $505 $8 2% ($5) (1%) $1,983 $2,009 ($26) (1%) Less: Notable items — — — — — — — — — — (31) 31 100 Noninterest income, Underlying (non-GAAP) B $500 $492 $506 $485 $505 $8 2% ($5) (1%) $1,983 $2,040 ($57) (3%) Total revenue, Underlying: Total revenue (GAAP) C $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,021 $203 3% Less: Notable items — — — — — — — — — — (31) 31 100 Total revenue, Underlying (non-GAAP) D $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,052 $172 2% Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,612 $1,293 $1,306 $1,296 $1,240 $319 25% $372 30% $5,507 $4,892 $615 13% Less: Notable items 345 22 73 66 43 323 NM 302 NM 506 262 244 93 Noninterest expense, Underlying (non-GAAP) F $1,267 $1,271 $1,233 $1,230 $1,197 ($4) —% $70 6% $5,001 $4,630 $371 8% Pre-provision profit: Total revenue (GAAP) C $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,021 $203 3% Less: Noninterest expense (GAAP) E 1,612 1,293 1,306 1,296 1,240 319 25 372 30 5,507 4,892 615 13 Pre-provision profit (GAAP) $376 $721 $788 $832 $960 ($345) (48%) ($584) (61%) $2,717 $3,129 ($412) (13%) Pre-provision profit, Underlying: Total revenue, Underlying (non-GAAP) D $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,052 $172 2% Less: Noninterest expense, Underlying (non-GAAP) F 1,267 1,271 1,233 1,230 1,197 (4) — 70 6 5,001 4,630 371 8 Pre-provision profit, Underlying (non-GAAP) $721 $743 $861 $898 $1,003 ($22) (3%) ($282) (28%) $3,223 $3,422 ($199) (6%) Provision (benefit) for credit losses, Underlying: Provision (benefit) for credit losses (GAAP) $171 $172 $176 $168 $132 ($1) (1%) $39 30% $687 $474 $213 45% Less: Notable items — — — — — — — — — — 169 (169) (100) Provision (benefit) for credit losses, Underlying (non- GAAP) $171 $172 $176 $168 $132 ($1) (1%) $39 30% $687 $305 $382 125% Income before income tax expense, Underlying: Income before income tax expense (GAAP) G $205 $549 $612 $664 $828 ($344) (63%) ($623) (75%) $2,030 $2,655 ($625) (24%) Less: Income (expense) before income tax expense (benefit) related to notable items (345) (22) (73) (66) (43) (323) NM (302) NM (506) (462) (44) (10) Income before income tax expense, Underlying (non- GAAP) H $550 $571 $685 $730 $871 ($21) (4%) ($321) (37%) $2,536 $3,117 ($581) (19%) Income tax expense, Underlying: Income tax expense (GAAP) I $16 $119 $134 $153 $175 ($103) (87%) ($159) (91%) $422 $582 ($160) (27%) Less: Income tax expense (benefit) related to notable items (108) (4) (20) (17) (11) (104) NM (97) NM (149) (110) (39) (35) Income tax expense, Underlying (non-GAAP) J $124 $123 $154 $170 $186 $1 1% ($62) (33%) $571 $692 ($121) (17%) Net income, Underlying: Net income (GAAP) K $189 $430 $478 $511 $653 ($241) (56%) ($464) (71%) $1,608 $2,073 ($465) (22%) Add: Notable items, net of income tax benefit 237 18 53 49 32 219 NM 205 NM 357 352 5 1 Net income, Underlying (non-GAAP) L $426 $448 $531 $560 $685 ($22) (5%) ($259) (38%) $1,965 $2,425 ($460) (19%) Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) M $159 $400 $444 $488 $621 ($241) (60%) ($462) (74%) $1,491 $1,960 ($469) (24%) Add: Notable items, net of income tax benefit 237 18 53 49 32 219 NM 205 NM 357 352 5 1 Net income available to common stockholders, Underlying (non-GAAP) N $396 $418 $497 $537 $653 ($22) (5%) ($257) (39%) $1,848 $2,312 ($464) (20%) 22

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (dollars in millions, except per share data) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Operating leverage: Total revenue (GAAP) C $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1.39%) ($212) (9.70%) $8,224 $8,021 $203 2.53% Less: Noninterest expense (GAAP) E 1,612 1,293 1,306 1,296 1,240 319 24.60 372 30.00 5,507 4,892 615 12.58 Operating leverage (25.99%) (39.70%) (10.05%) Operating leverage, Underlying: Total revenue, Underlying (non-GAAP) D $1,988 $2,014 $2,094 $2,128 $2,200 ($26) (1.39%) ($212) (9.70%) $8,224 $8,052 $172 2.13% Less: Noninterest expense, Underlying (non-GAAP) F 1,267 1,271 1,233 1,230 1,197 (4) (0.30) 70 5.82 5,001 4,630 371 8.00 Operating leverage, Underlying (non-GAAP) (1.09%) (15.52%) (5.87%) Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 81.13% 64.21% 62.34% 60.90% 56.36% 1,692 bps 2,477 bps 66.97 % 60.99 % 598 bps Efficiency ratio, Underlying (non-GAAP) F/D 63.77 63.08 58.86 57.84 54.42 69 bps 935 bps 60.81 57.51 330 bps Noninterest income as a % of total revenue, Underlying: Noninterest income as a % of total revenue A/C 25.16 % 24.44% 24.14% 22.81% 22.92% 72 bps 224 bps 24.12 % 25.04 % (92) bps Noninterest income as a % of total revenue, Underlying B/D 25.16 24.44 24.14 22.81 22.92 72 bps 224 bps 24.12 25.33 (121) bps Effective income tax rate and effective income tax rate, Underlying: Effective income tax rate I/G 7.59% 21.51% 22.09% 22.97% 21.16% (1,392) bps (1,357) bps 20.76 % 21.93 % (117) bps Effective income tax rate, Underlying (non-GAAP) J/H 22.25 21.69 22.51 23.25 21.37 56 bps 88 bps 22.48 22.19 29 bps Return on average common equity and return on average common equity, Underlying: Average common equity (GAAP) O $21,209 $21,177 $22,289 $21,702 $21,276 $32 —% ($67) —% $21,592 $21,724 ($132) (1%) Return on average common equity M/O 2.96% 7.50% 8.00% 9.11% 11.56% (454) bps (860) bps 6.90 % 9.02 % (212) bps Return on average common equity, Underlying (non- GAAP) N/O 7.41 7.82 8.97 10.01 12.15 (41) bps (474) bps 8.56 10.64 (208) bps Return on average tangible common equity and return on average tangible common equity, Underlying: Average common equity (GAAP) O $21,209 $21,177 $22,289 $21,702 $21,276 $32 —% ($67) —% $21,592 $21,724 ($132) (1%) Less: Average goodwill (GAAP) 8,188 8,188 8,182 8,177 8,171 — — 17 — 8,184 7,872 312 4 Less: Average other intangibles (GAAP) 163 173 181 192 199 (10) (6) (36) (18) 177 181 (4) (2) Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 421 422 422 422 424 (1) — (3) (1) 422 413 9 2 Average tangible common equity P $13,279 $13,238 $14,348 $13,755 $13,330 $41 —% ($51) —% $13,653 $14,084 ($431) (3%) Return on average tangible common equity M/P 4.72% 12.00% 12.42% 14.38% 18.46% (728) bps (1,374) bps 10.92 % 13.91 % (299) bps Return on average tangible common equity, Underlying (non-GAAP) N/P 11.84 12.51 13.93 15.80 19.40 (67) bps (756) bps 13.53 16.41 (288) bps Return on average total assets and return on average total assets, Underlying: Average total assets (GAAP) Q $223,653 $220,162 $222,373 $222,711 $224,970 $3,491 2% ($1,317) (1%) $222,221 $215,061 $7,160 3% Return on average total assets K/Q 0.33% 0.78% 0.86% 0.93% 1.15% (45) bps (82) bps 0.72 % 0.96 % (24) bps Return on average total assets, Underlying (non- GAAP) L/Q 0.76 0.81 0.96 1.02 1.21 (5) bps (45) bps 0.88 1.13 (25) bps 23

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (dollars in millions, except per share data) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) Q $223,653 $220,162 $222,373 $222,711 $224,970 $3,491 2% ($1,317) (1%) $222,221 $215,061 $7,160 3% Less: Average goodwill (GAAP) 8,188 8,188 8,182 8,177 8,171 — — 17 — 8,184 7,872 312 4 Less: Average other intangibles (GAAP) 163 173 181 192 199 (10) (6) (36) (18) 177 181 (4) (2) Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 421 422 422 422 424 (1) — (3) (1) 422 413 9 2 Average tangible assets R $215,723 $212,223 $214,432 $214,764 $217,024 $3,500 2% ($1,301) (1%) $214,282 $207,421 $6,861 3% Return on average total tangible assets K/R 0.35 % 0.81% 0.89% 0.97% 1.19% (46) bps (84) bps 0.75 % 1.00 % (25) bps Return on average total tangible assets, Underlying (non-GAAP) L/R 0.78 0.84 0.99 1.06 1.25 (6) bps (47) bps 0.92 1.17 (25) bps Tangible book value per common share: Common shares - at period-end (GAAP) S 466,418,055 466,221,795 474,682,759 483,982,264 492,282,158 196,260 —% (25,864,103) (5%) 466,418,055 492,282,158 (25,864,103) (5%) Common stockholders' equity (GAAP) $22,329 $20,864 $21,571 $22,187 $21,676 $1,465 7 $653 3 $22,329 $21,676 $653 3 Less: Goodwill (GAAP) 8,188 8,188 8,188 8,177 8,173 — — 15 — 8,188 8,173 15 — Less: Other intangible assets (GAAP) 157 167 175 185 197 (10) (6) (40) (20) 157 197 (40) (20) Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) 433 421 422 422 422 12 3 11 3 433 422 11 3 Tangible common equity T $14,417 $12,930 $13,630 $14,247 $13,728 $1,487 12% $689 5% $14,417 $13,728 $689 5% Tangible book value per common share T/S $30.91 $27.73 $28.72 $29.44 $27.88 $3.18 11% $3.03 11% $30.91 $27.88 $3.03 11% 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 466,234,324 469,481,085 479,470,543 485,444,313 493,293,981 (3,246,761) (1%) (27,059,657) (5%) 475,089,384 475,959,815 (870,431) —% Average common shares outstanding - diluted (GAAP) V 468,159,167 471,183,719 480,975,281 487,712,146 495,478,398 (3,024,552) (1) (27,319,231) (6) 476,693,148 477,803,142 (1,109,994) — Net income per average common share - basic (GAAP) M/U $0.34 $0.85 $0.93 $1.00 $1.26 ($0.51) (60) ($0.92) (73) $3.14 $4.12 ($0.98) (24) Net income per average common share - diluted (GAAP) M/V 0.34 0.85 0.92 1.00 1.25 (0.51) (60) (0.91) (73) 3.13 4.10 (0.97) (24) Net income per average common share - basic, Underlying (non-GAAP) N/U 0.85 0.89 1.04 1.10 1.32 (0.04) (4) (0.47) (36) 3.89 4.86 (0.97) (20) Net income per average common share - diluted, Underlying (non-GAAP) N/V 0.85 0.89 1.04 1.10 1.32 (0.04) (4) (0.47) (36) 3.88 4.84 (0.96) (20) Dividend payout ratio and dividend payout ratio, Underlying: Cash dividends declared and paid per common share W $0.42 $0.42 $0.42 $0.42 $0.42 $— —% $— —% $1.68 $1.62 $0.06 4% Dividend payout ratio W/(M/U) 124 % 49 % 45 % 42 % 33 % 7,412 bps 9,053 bps 54 % 39 % 1,450 bps Dividend payout ratio, Underlying (non-GAAP) W/(N/U) 49 47 40 38 32 200 bps 1,700 bps 43 33 1,000 bps 24

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (dollars in millions, except per share data) QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 2Q23 1Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $/bps % Other income, Underlying: Other income (GAAP) $20 $18 $23 $17 $36 $2 11% ($16) (44%) $78 $82 ($4) (5%) Less: Notable items — — — — — — — — — — (31) 31 100 Other income, Underlying (non-GAAP) $20 $18 $23 $17 $36 $2 11 ($16) (44%) $78 $113 ($35) (31%) Salaries and employee benefits, Underlying: Salaries and employee benefits (GAAP) $667 $659 $615 $658 $633 $8 1% $34 5% $2,599 $2,549 $50 2% Less: Notable items 32 5 14 16 15 27 NM 17 113 67 110 (43) (39) Salaries and employee benefits, Underlying (non-GAAP) $635 $654 $601 $642 $618 ($19) (3%) $17 3% $2,532 $2,439 $93 4% Equipment and software, Underlying: Equipment and software (GAAP) $215 $191 $181 $169 $170 $24 13% $45 26% $756 $648 $108 17% Less: Notable items 37 6 4 4 2 31 NM 35 NM 51 10 41 NM Equipment and software, Underlying (non-GAAP) $178 $185 $177 $165 $168 ($7) (4%) $10 6% $705 $638 $67 11% Outside services, Underlying: Outside services (GAAP) $174 $160 $177 $176 $170 $14 9% $4 2% $687 $700 ($13) (2%) Less: Notable items 13 7 21 27 17 6 86 (4) (24) 68 113 (45) (40) Outside services, Underlying (non-GAAP) $161 $153 $156 $149 $153 $8 5% $8 5% $619 $587 $32 5% Occupancy, Underlying: Occupancy (GAAP) $125 $107 $136 $124 $110 $18 17% $15 14% $492 $410 $82 20% Less: Notable items 20 2 30 18 2 18 NM 18 NM 70 5 65 NM Occupancy, Underlying (non-GAAP) $105 $105 $106 $106 $108 $— —% ($3) (3%) $422 $405 $17 4% Other operating expense, Underlying: Other operating expense (GAAP) $431 $176 $197 $169 $157 $255 145% $274 175% $973 $585 $388 66% Less: Notable items 243 2 4 1 7 241 NM 236 NM 250 24 226 NM Other operating expense, Underlying (non-GAAP) $188 $174 $193 $168 $150 $14 8% $38 25% $723 $561 $162 29% 25

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS1 (dollars in millions) FOURTH QUARTER 2023 THIRD QUARTER 2023 Consumer Banking Commercial Banking Non-Core Other Consolidated Consumer Banking Commercial Banking Non-Core Other Consolidated Net income (loss) available to common stockholders: Net income (loss) A $269 $269 ($72) ($277) $189 $276 $260 ($67) ($39) $430 Less: Preferred stock dividends — — — 30 30 — — — 30 30 Net income (loss) available to common stockholders B $269 $269 ($72) ($307) $159 $276 $260 ($67) ($69) $400 Return on average total tangible assets: Average total assets (GAAP) $73,334 $72,758 $11,776 $65,785 $223,653 $72,964 $74,997 $13,113 $59,088 $220,162 Less: Average goodwill (GAAP) 542 770 — 6,876 8,188 542 770 — 6,876 8,188 Average other intangibles (GAAP) 98 35 — 30 163 103 39 — 31 173 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 26 10 — 385 421 24 12 — 386 422 Average tangible assets C $72,720 $71,963 $11,776 $59,264 $215,723 $72,343 $74,200 $13,113 $52,567 $212,223 Return on average total tangible assets A/C 1.47 % 1.48 % (2.42) % NM 0.35 % 1.51 % 1.39 % (2.03) % NM 0.81 % Efficiency ratio: Noninterest expense (GAAP) D $905 $324 $28 $355 $1,612 $905 $325 $30 $33 $1,293 Net interest income (GAAP) 1,086 551 (45) (104) 1,488 1,067 560 (41) (64) 1,522 Noninterest income (GAAP) 265 196 — 39 500 278 180 — 34 492 Total revenue (GAAP) E $1,351 $747 ($45) ($65) $1,988 $1,345 $740 ($41) ($30) $2,014 Efficiency ratio D/E 67.08 % 43.44 % NM NM 81.13 % 67.18 % 43.93 % NM NM 64.21 % SECOND QUARTER 2023 FIRST QUARTER 2023 Consumer Banking Commercial Banking Non-Core Other Consolidated Consumer Banking Commercial Banking Non-Core Other Consolidated Net income (loss) available to common stockholders: Net income (loss) A $257 $305 ($55) ($29) $478 $257 $319 ($50) ($15) $511 Less: Preferred stock dividends — — — 34 34 — — — 23 23 Net income (loss) available to common stockholders B $257 $305 ($55) ($63) $444 $257 $319 ($50) ($38) $488 Return on average total tangible assets: Average total assets (GAAP) $72,583 $77,546 $14,456 $57,788 $222,373 $71,872 $78,891 $15,686 $56,262 $222,711 Less: Average goodwill (GAAP) 540 766 — 6,876 8,182 538 763 — 6,876 8,177 Average other intangibles (GAAP) 109 41 — 31 181 115 43 — 34 192 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 23 11 — 388 422 23 12 — 387 422 Average tangible assets C $71,957 $76,750 $14,456 $51,269 $214,432 $71,242 $78,097 $15,686 $49,739 $214,764 Return on average total tangible assets A/C 1.43 % 1.59 % (1.53) % NM 0.89 % 1.46 % 1.66 % (1.30) % NM 0.97 % Efficiency ratio: Noninterest expense (GAAP) D $875 $315 $33 $83 $1,306 $857 $331 $32 $76 $1,296 Net interest income (GAAP) 1,023 584 (28) 9 1,588 1,011 597 (15) 50 1,643 Noninterest income (GAAP) 268 207 — 31 506 256 201 — 28 485 Total revenue (GAAP) E $1,291 $791 ($28) $40 $2,094 $1,267 $798 ($15) $78 $2,128 Efficiency ratio D/E 67.74 % 39.76 % NM NM 62.34 % 67.70 % 41.47 % NM NM 60.90 % 26

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS, CONTINUED1 (dollars in millions) FOURTH QUARTER 2022 Consumer Banking Commercial Banking Non-Core Other Consolidated Net income (loss) available to common stockholders: Net income (loss) A $284 $358 ($23) $34 $653 Less: Preferred stock dividends — — — 32 32 Net income (loss) available to common stockholders B $284 $358 ($23) $2 $621 Return on average total tangible assets: Average total assets (GAAP) $71,688 $79,591 $16,752 $56,939 $224,970 Less: Average goodwill (GAAP) 491 804 — 6,876 8,171 Average other intangibles (GAAP) 121 46 — 32 199 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 7 4 — 413 424 Average tangible assets C $71,083 $78,745 $16,752 $50,444 $217,024 Return on average total tangible assets A/C 1.59 % 1.80 % (0.54) % NM 1.19 % Efficiency ratio: Noninterest expense (GAAP) D $831 $318 $31 $60 $1,240 Net interest income (GAAP) 1,014 595 19 67 1,695 Noninterest income (GAAP) 256 198 — 51 505 Total revenue (GAAP) E $1,270 $793 $19 $118 $2,200 Efficiency ratio D/E 65.39 % 40.18 % NM NM 56.36 % 27

 
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS, CONTINUED1 (dollars in millions) FULL YEAR 2023 2022 Consumer Banking Commercial Banking Non-Core Other Consolidated Consumer Banking Commercial Banking Non-Core Other Consolidated Net income (loss) available to common stockholders: Net income (loss) A $1,059 $1,153 ($244) ($360) $1,608 $955 $1,304 $142 ($328) $2,073 Less: Preferred stock dividends — — — 117 117 — — — 113 113 Net income (loss) available to common stockholders B $1,059 $1,153 ($244) ($477) $1,491 $955 $1,304 $142 ($441) $1,960 Return on average total tangible assets: Average total assets (GAAP) $72,693 $76,028 $13,745 $59,755 $222,221 $68,027 $74,919 $18,121 $53,994 $215,061 Less: Average goodwill (GAAP) 540 767 — 6,877 8,184 388 616 — 6,868 7,872 Average other intangibles (GAAP) 106 39 — 32 177 88 30 — 63 181 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 24 11 — 387 422 6 2 — 405 413 Average tangible assets C $72,071 $75,233 $13,745 $53,233 $214,282 $67,557 $74,275 $18,121 $47,468 $207,421 Return on average total tangible assets A/C 1.47 % 1.53 % (1.78) % NM 0.75 % 1.41 % 1.76 % 0.78 % NM 1.00 % Efficiency ratio: Noninterest expense (GAAP) D $3,542 $1,295 $123 $547 $5,507 $3,255 $1,223 $136 $278 $4,892 Net interest income (GAAP) 4,187 2,292 (129) (109) 6,241 3,649 2,103 378 (118) 6,012 Noninterest income (GAAP) 1,067 784 — 132 1,983 1,063 845 — 101 2,009 Total revenue (GAAP) E $5,254 $3,076 ($129) $23 $8,224 $4,712 $2,948 $378 ($17) $8,021 Efficiency ratio D/E 67.42 % 42.10 % NM NM 66.97 % 69.08 % 41.50 % NM NM 60.99 % 1 During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment. In addition, the Company revised its funds transfer pricing ("FTP") methodology relative to the funding of Non-Core assets, with the FTP charge based on a marginal high-cost funding waterfall approach. Prior period results have been revised to conform to the new segment presentation. 28

 
v3.23.4
Document and Entity Information Document
Jan. 18, 2024
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 Jan. 18, 2024
Entity Incorporation, State or 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 203
Local Phone Number 900-6715
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Common Stock [Member]  
Document and Entity Information [Line Items]  
Title of 12(b) Security 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]  
Title of 12(b) Security 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]  
Title of 12(b) Security 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
Citizens Financial (NYSE:CFG-E)
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Citizens Financial (NYSE:CFG-E)
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