cfg-20230419
CITIZENS FINANCIAL GROUP INC/RI0000759944false00007599442023-04-192023-04-190000759944us-gaap:CommonStockMember2023-04-192023-04-190000759944us-gaap:SeriesDPreferredStockMember2023-04-192023-04-190000759944us-gaap:SeriesEPreferredStockMember2023-04-192023-04-19


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

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): April 19, 2023

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 2.02   Results of Operations and Financial Condition.
On April 19, 2023, Citizens Financial Group, Inc. (the “Company”) issued a press release announcing its first quarter 2023 earnings and posted on its website the press release and a financial supplement. Copies of the press release and financial supplement are being furnished as Exhibits 99.1 and 99.3, respectively.

Item 7.01 Regulation FD Disclosure.

For the benefit of investors, the Company has posted on its website an investor presentation in connection with its earnings conference call. A copy of the investor presentation is being furnished as Exhibit 99.2.

The information in this Form 8-K and Exhibits attached hereto are being furnished pursuant to Items 2.02 and 7.01, respectively, and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall this information be deemed incorporated by reference into any filings under the Securities Act of 1933, as amended.
Item 9.01   Financial Statements and Exhibits.
 Exhibit NumberDescription
(d)Exhibit 99.1  
Exhibit 99.2  
Exhibit 99.3  
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 Chairman and Chief Financial Officer
Date:  April 19, 2023




citizenslogoa05.jpg

Citizens Financial Group, Inc. Reports First Quarter 2023 Net Income of
$511 million and EPS of $1.00
Underlying Net Income of $560 million and EPS of $1.10*

Key Financial Data1Q234Q221Q22
First Quarter 2023 Highlights
 
Income
Statement		($s in millions)
■Completed Investors conversion; New York Metro and New Jersey market entry progressing well
■Underlying EPS of $1.10 and ROTCE of 15.8%
■Underlying PPNR of $898 million, with lower NII and fees, seasonally higher expense
–NII down 3% QoQ given lower day count and slightly lower interest-earning assets; stable net interest margin
–Fees down 4% QoQ with lower capital markets and service charges partly offset by higher FX and derivatives product revenue
■Underlying efficiency ratio of 57.8% compares with 54.4% at 4Q22 and 64.3% at 1Q22; Positive operating leverage of 13% YoY
■Continued strong credit performance with ACL/loans ratio up 4 bps to 1.47%
■Period-end loans down 1% and average loans down slightly QoQ, including planned auto run off
–Loan yield up 50 bps QoQ
■Period-end deposits down 4.7% QoQ; average deposits down 2.6%; deposits stable in March
–Total deposit costs up 40 bps QoQ
■Period-end LDR of 89.8%; liquidity position remains strong; available liquidity of ~$66 billion
■Strong CET1 ratio at upper end of target range at 10.0%; repurchased $400 million in shares
■TBV/share of $29.44, up 6% QoQ
Total revenue$2,128 $2,200 $1,645 
Pre-provision profit832 960 539 
Underlying pre-provision profit898 1,003 587 
Provision for credit losses168 132 3 
Net income511 653 420 
Underlying net income560 685 476 
Balance Sheet
&
Credit Quality		($s in billions)
Period-end loans and leases$154.7 $156.7 $131.3 
Average loans and leases156.5 157.1 129.2 
Period-end deposits172.2 180.7 158.8 
Average deposits174.4 179.0 155.1 
Period-end loans-to-deposit ratio89.8 %86.7 %82.7 %
NCO ratio0.34 %0.22 %0.19 %
Financial MetricsDiluted EPS$1.00 $1.25 $0.93 
Underlying EPS1.10 1.32 1.07 
ROTCE14.4 %18.5 %11.4 %
Underlying ROTCE15.8 19.4 13.0 
Net interest margin, FTE3.30 3.30 2.75 
Efficiency ratio60.9 56.4 67.2 
Underlying efficiency ratio57.8 54.4 64.3 
CET110.0 %10.0 %9.7 %
TBV/Share$29.44 $27.88 $30.97 

Notable Items1Q23
($s in millions except per share data)Pre-tax $EPS
Integration related$(52)$(0.08)
TOP revenue and efficiency initiatives(14)(0.02)
Total:$(66)$(0.10)
Comments from Chairman and CEO Bruce Van Saun
“The first quarter brought unexpected challenges in the environment, but we proved adaptable and resilient, successfully navigating through them and delivering solid financial results,“ said Chairman and CEO Bruce Van Saun. “Our capital, liquidity and funding position remains strong, and our deposits were broadly stable over the month of March. We remain focused on our deposit initiatives, taking care of our customers and protecting key investments while trimming expenses where we can. We are hopeful that market turmoil continues to subside, and we expect that we will be able to deliver attractive mid-teens
*Results presented on an Underlying basis are non-GAAP Financial Measures. See page 16 for additional information on our use of Non-GAAP Financial Measures.
Citizens Financial Group, Inc.
ROTCE for the year.”
Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on May 17, 2023 to shareholders of record at the close of business on May 3, 2023.
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Citizens Financial Group, Inc.
Earnings highlights(1):
Quarterly Trends
 1Q23 change from
($s in millions, except per share data)1Q234Q221Q224Q221Q22
Earnings$/bps%$/bps%
Net interest income$1,643 $1,695 $1,147 $(52)(3) %$496 43  %
Noninterest income485 505 498 (20)(4)(13)(3)
Total revenue2,128 2,200 1,645 (72)(3)483 29 
Noninterest expense1,296 1,240 1,106 56 5 190 17 
Pre-provision profit832 960 539 (128)(13)293 54 
Provision (benefit) for credit losses168 132 3 36 27165 NM
Net income511 653 420 (142)(22)91 22 
Preferred dividends23 32 24 (9)(28)(1)(4)
Net income available to common stockholders$488 $621 $396 $(133)(21) %$92 23  %
After-tax notable Items49 32 56 17 53(7)(13)
Underlying net income$560 $685 $476 $(125)(18) %$84 18  %
Underlying net income available to common stockholders537 653 452 (116)(18)85 19
Average common shares outstanding
Basic (in millions)485.4 493.3 422.4 (7.8)(2)63.0 15 
Diluted (in millions)487.7 495.5 424.7 (7.8)(2)63.0 15 
Diluted earnings per share$1.00 $1.25 $0.93 $(0.25)(20) %$0.07 8  %
Underlying diluted earnings per share1.10 1.32 1.07 (0.22)(17)0.03 3 
Performance metrics
Net interest margin3.29 %3.29 %2.75 %—  bps54  bps
Net interest margin, FTE3.30 3.30 2.75 — 55 
Effective income tax rate23.0 21.2 21.7 181 127 
Efficiency ratio60.9 56.4 67.2 454 (633)
Underlying efficiency ratio57.8 54.4 64.3 342 (644)
Return on average common equity9.1 11.6 7.7 (245)146 
Return on average tangible common equity14.4 18.5 11.4 (408)302 
Underlying return on average tangible common equity15.8 19.4 13.0 (360)281 
Return on average total assets0.93 1.15 0.90 (22)3 
Return on average total tangible assets0.97 1.19 0.94 (22)3 
Underlying return on average total tangible assets1.06 %1.25 %1.06 %(19) bps—  bps
Capital adequacy(2,3)
Common equity tier 1 capital ratio10.0 %10.0 %9.7 %
Total capital ratio12.9 12.8 12.5 
Tier 1 leverage ratio9.4 9.3 9.6 
Tangible common equity ratio6.6 6.3 7.1 
Allowance for credit losses to loans and leases1.47 %1.43 %1.43 %4  bps4  bps
Asset quality(3)
Nonaccrual loans and leases to loans and leases0.64 %0.60 %0.60 %4  bps4  bps
Allowance for credit losses to nonaccrual loans and leases229 237 238 (8)(9)
Net charge-offs as a % of average loans and leases0.34 %0.22 %0.19 %12  bps15  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.







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Citizens Financial Group, Inc.
The following table provides information on Underlying results which exclude the impact of notable items.

Underlying results:

Quarterly Trends
 1Q23 change from
($s in millions, except per share data)1Q234Q221Q224Q221Q22
$/bps%$/bps%
Net interest income$1,643 $1,695 $1,147 $(52)(3) %$496 43  %
Noninterest income485 505 498 (20)(4)(13)(3)
Total revenue$2,128 $2,200 $1,645 $(72)(3) %$483 29  %
Noninterest expense$1,230 $1,197 $1,058 $33 3  %$172 16  %
Provision (benefit) for credit losses168 132 (21)36 27189 NM
Net income available to common stockholders$537 $653 $452 $(116)(18)%$85 19 %
Performance metrics
EPS$1.10 $1.32 $1.07 $(0.22)(17) %$0.03 3  %
Efficiency ratio57.8  %54.4  %64.3  %342  bps(644) bps
Return on average tangible common equity15.8  %19.4  %13.0  %(360) bps281  bps
Operating leverage(6.1) %13.0  %




Consolidated balance sheet review(1):

 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
$/bps%$/bps%
Total assets$222,256 $226,733 $192,097 $(4,477)(2) %$30,159 16  %
Total loans and leases154,688 156,662 131,305 (1,974)(1)23,383 18 
Total loans held for sale1,855 982 1,816 873 89 39 2 
Deposits172,194 180,724 158,776 (8,530)(5)13,418 9 
Stockholders' equity24,201 23,690 22,074 511 2 2,127 10 
Stockholders' common equity22,187 21,676 20,060 511 2 2,127 11 
Tangible common equity$14,247 $13,728 $13,100 $519 4  %$1,147 9  %
Loans-to-deposit ratio (period-end)(2)
89.8 %86.7  %82.7  %314  bps713  bps
Loans-to-deposit ratio (average)(2)
89.8 %87.7 %83.3 %202  bps648  bps
1) Represents period-end unless otherwise noted.
2) Excludes loans held for sale.

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Citizens Financial Group, Inc.

Notable items:
Quarterly results reflect notable items primarily related to integration costs associated with the acquisitions of HSBC, ISBC and JMP Group LLC, as well as TOP revenue and efficiency initiatives. First quarter 2022 results include a notable item representing the day-one CECL provision expense ("double count") related to the HSBC transaction. These notable items have been excluded from reported results to better reflect Underlying operating results.
Notable items - integration related1Q234Q221Q22
($s in millions, except per share data)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
Salaries & benefits$(7)$(5)$(13)$(9)$(4)$(3)
Outside services(25)(19)(15)(12)(28)(21)
Equipment and software(3)(2)(1)(1)— — 
Occupancy(16)(12)— — — — 
Other expense(1)(1)(6)(4)(5)(3)
   Noninterest expense$(52)$(39)$(35)$(26)$(37)$(27)
EPS Impact - Noninterest expense $(0.08)$(0.06)$(0.07)
HSBC Day 1 CECL provision expense (“double count”)$— $— $— $— $(24)$(18)
EPS Impact - Provision for credit losses$— $— $(0.04)
Total integration related$(52)$(39)$(35)$(26)$(61)$(45)
EPS Impact - Total integration related$(0.08)$(0.06)$(0.11)
Other notable items - TOP related1Q234Q221Q22
($s in millions, except per share data)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
Other notable items- TOP & other actions
Tax notable items$— $— $— $— $— $(3)
Salaries & benefits(9)(7)(2)(2)(2)(1)
Outside services(2)(1)(2)(1)(7)(5)
Equipment and software(1)(1)(1)— (2)(2)
Occupancy(2)(1)(2)(2)— — 
Other expense— — (1)(1)— — 
   Noninterest expense$(14)$(10)$(8)$(6)$(11)$(8)
Total Other Notable Items$(14)$(10)$(8)$(6)$(11)$(11)
EPS Impact - Other Notable Items $(0.02)$(0.01)$(0.03)
Total Notable Items$(66)$(49)$(43)$(32)$(72)$(56)
Total EPS Impact$(0.10)$(0.07)$(0.14)















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Citizens Financial Group, Inc.
Discussion of results:
Net interest income 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
$/bps%$/bps%
Interest income:
Interest and fees on loans and leases and loans held for sale$2,067 $1,919 $1,071 $148 8  %$996 93  %
Investment securities266 258 138 8 3 128 93 
Interest-bearing deposits in banks69 75 4 (6)(8)65 NM
Total interest income$2,402 $2,252 $1,213 $150 7  %$1,189 98  %
Interest expense:
Deposits$550 $396 $25 $154 39  %$525 NM
Short-term borrowed funds6 2 — 4 200 6 100 
Long-term borrowed funds203 159 41 44 28 162 NM
Total interest expense$759 $557 $66 $202 36  %$693 NM
Net interest income$1,643 $1,695 $1,147 $(52)(3) %$496 43  %
Net interest margin, FTE3.30  %3.30  %2.75  %—  bps55  bps
First quarter 2023vs.fourth quarter 2022
Net interest income of $1.6 billion decreased 3%, reflecting the impact of a lower day count (-$29 million) and slightly lower interest-earning assets (-$14 million). The company continues to dynamically hedge its interest rate position, contributing to a stable NIM in spite of intensifying deposit dynamics.
•Net interest margin of 3.30% was stable, as higher earning-asset yields and the benefits of lower cash balances were offset by higher funding costs.
First quarter 2023vs.first quarter 2022
Net interest income of $1.6 billion increased 43%, reflecting higher net interest margin and 20% growth in average interest-earning assets, including the impact of the HSBC and ISBC transactions.
•Net interest margin of 3.30% increased 55 basis points, reflecting higher interest-earning-asset yields given higher market interest rates and interest-earning asset growth, partially offset by increased funding costs.





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Citizens Financial Group, Inc.
Noninterest Income 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
$%$%
Service charges and fees$100 $105 $98 $(5)(5) %$2 2  %
Capital markets fees83 98 93 (15)(15)(10)(11)
Card fees72 71 60 1 1 12 20 
Mortgage banking fees57 54 69 3 6 (12)(17)
Trust and investment services fees63 61 61 2 3 2 3 
Foreign exchange and derivative products48 35 51 13 37 (3)(6)
Letter of credit and loan fees40 41 38 (1)(2)2 5 
Securities gains, net5 4 4 1 251 25 
Other income(1)
17 36 24 (19)(53)(7)(29)
Noninterest income$485 $505 $498 $(20)(4) %$(13)(3) %
1) Includes bank-owned life insurance income and other miscellaneous income for all periods presented.
First quarter 2023vs.fourth quarter 2022
Noninterest income of $485 million decreased $20 million, or 4%.
•Service charges and fees decreased $5 million, reflecting seasonal impacts.
•Capital markets fees decreased $15 million, given lower syndications and M&A advisory fees.
•Mortgage banking fees increased $3 million, given higher production volume and improved margins, partially offset by lower servicing fees.
•Trust and investment services fees increased $2 million, primarily reflecting seasonally higher advisory fees.
•Foreign exchange and derivative products revenue increased $13 million, primarily reflecting increased client interest rate and commodities hedging activity given higher market volatility.
•Other income decreased $19 million, reflecting higher derivative expense associated with hedging customer risk given wider spreads, as well as sundry other items.
First quarter 2023vs.first quarter 2022
Noninterest income of $485 million decreased $13 million, or 3%.
•Service charges and fees increased $2 million, reflecting the benefit of acquisitions and improvement in Treasury Solutions fees, partially offset by the elimination of non-sufficient funds fees in Consumer.
•Capital markets fees decreased $10 million, reflecting lower syndication fees, partially offset by higher M&A advisory and underwriting fees.
•Mortgage banking fees decreased $12 million, driven by lower production volumes, partly offset by improved gain-on-sale margins and higher servicing revenue.
•Trust and investment services fees increased $2 million, reflecting increased investment sales, partially offset by lower fees on assets under management.
•Card fees increased $12 million, given higher transaction volumes.
•Other income decreased $7 million, reflecting higher derivative expense associated with hedging customer risk.

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Citizens Financial Group, Inc.
Noninterest Expense 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
$%$%
Salaries and employee benefits$658 $633 $594 $25 4 %$64 11 %
Outside services176 170 169 6 4 7 4 
Equipment and software169 170 150 (1)(1)19 13 
Occupancy124 110 83 14 13 41 49 
Other operating expense169 157 110 12 8 59 54 
Noninterest expense$1,296 $1,240 $1,106 $56 5 %$190 17 %
Notable items$66 $43 $48 $23 53 %$18 38%
Underlying, as applicable
Salaries and employee benefits$642 $618 $588 $24 4 %$54 9 %
Outside services149 153 134 (4)(3)15 11 
Equipment and software165 168 148 (3)(2)17 11 
Occupancy106 108 83 (2)(2)23 28 
Other operating expense168 150 105 18 12 63 60 
Underlying noninterest expense$1,230 $1,197 $1,058 $33 2.8 %$172 16 %
First quarter 2023vs.fourth quarter 2022
Underlying noninterest expense of $1.2 billion was up 2.8% reflecting higher salaries and employee benefits given seasonal increases in payroll taxes and 401k costs. Other operating expense increased primarily reflecting higher FDIC insurance cost as a result of the industry-wide 2 basis point surcharge effective January 1, 2023. Other categories remain broadly stable reflecting strong expense discipline and the benefit of efficiency initiatives.
The effective tax rate was 23.0%, up modestly from 21.2% due to adoption of a new accounting standard for investments in tax credits and higher disallowed FDIC premiums.
First quarter 2023vs.first quarter 2022
Underlying noninterest expense of $1.2 billion, increased 16%, or 6%, excluding the HSBC and ISBC transactions, largely reflecting higher FDIC insurance and fraud losses, partially offset by the benefit of efficiency initiatives.
The effective tax rate of 23.0% was up modestly from 21.7% in first quarter 2022.

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Citizens Financial Group, Inc.
Interest-earning assets 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
Period-end interest-earning assets$%$%
Investments$34,893 $35,052 $28,116 $(159)—  %$6,777 24  %
Interest-bearing deposits in banks7,011 9,361 9,398 (2,350)(25)(2,387)(25)
Commercial loans and leases80,866 82,180 61,521 (1,314)(2)19,345 31 
Retail loans73,822 74,482 69,784 (660)(1)4,038 6 
Total loans and leases154,688 156,662 131,305 (1,974)(1)23,383 18 
Loans held for sale, at fair value855 774 1,717 81 10 (862)(50)
Other loans held for sale1,000 208 99 792 NM901 NM
Total loans and leases and loans held for sale156,543 157,644 133,121 (1,101)(1)23,422 18 
Total period-end interest-earning assets$198,447 $202,057 $170,635 $(3,610)(2) %$27,812 16  %
Average interest-earning assets
Investments$38,955 $38,772 $29,247 $183 —  %$9,708 33  %
Interest-bearing deposits in banks5,899 6,915 8,055 (1,016)(15)(2,156)(27)
Commercial loans and leases82,321 82,468 60,573 (147)— 21,748 36 
Retail loans74,171 74,631 68,581 (460)(1)5,590 8 
Total loans and leases156,492 157,099 129,154 (607)— 27,338 21 
Loans held for sale, at fair value1,009 1,179 2,366 (170)(14)(1,357)(57)
Other loans held for sale197 557 454 (360)(65)(257)(57)
Total loans and leases and loans held for sale157,698 158,835 131,974 (1,137)(1)25,724 19 
Total average interest-earning assets$202,552 $204,522 $169,276 $(1,970)(1) %$33,276 20  %

First quarter 2023vs.fourth quarter 2022
Period-end interest-earning assets of $198.4 billion decreased $3.6 billion, or 2%, driven by $2.4 billion decrease in cash held in interest-bearing deposits, as well as a $2.0 billion decrease in total loans and leases. The decrease in loans and leases reflects a $1.3 billion decrease in commercial given balance sheet optimization actions and lower line utilization as companies are reducing inventories in anticipation of a softer economic environment. Results also reflect a $660 million decrease in retail, given planned run off in auto, partially offset by growth in home equity and mortgage. Excluding the planned auto run off, period-end total loans are down 0.8% and retail loans are up 0.2%.
Average interest-earning assets of $202.6 billion decreased $2.0 billion driven by a $1.0 billion decrease in cash held in interest-bearing deposits, a $607 million decrease in total loans and leases and a $530 million decrease in loans held for sale. The decrease in loans and leases reflects a $460 million decrease in retail given planned run off in auto, partially offset by growth in home equity and mortgage. Excluding the planned auto run off, average total loans are up slightly and retail loans are up 0.5%.
The average effective duration of the securities portfolio was 5.8 years compared with 5.8 years at December 31, 2022 and 5.3 years at March 31, 2022.
First quarter 2023vs.first quarter 2022
Period-end interest-earning assets of $198.4 billion increased $27.8 billion, or 16%, as a $23.4 billion increase in loans and a $6.8 billion increase in investments was partly offset by a $2.4 billion decrease in cash held in interest-bearing deposits. Excluding the impact of the HSBC and ISBC transactions, loan growth was 4% with 7% growth in commercial and stable retail loans with strength in mortgage and home equity, offset by planned run off in auto and personal unsecured installment loans. Excluding the planned auto run off, period-end total loan growth is 7% and retail loan growth is 6%.
Average interest-earning assets of $202.6 billion increased $33.3 billion, or 20%, as a $27.3 billion increase in loans and a $9.7 billion increase in investments were partly offset by a $2.2 billion decrease in cash held in interest-bearing deposits. Results also reflect a $1.6 billion decrease in loans held for sale. Excluding the impact of the HSBC and ISBC transactions, total average loan growth was 6%, with 11% growth in commercial. Retail loans increased 1%, driven by mortgage and home equity,
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Citizens Financial Group, Inc.
largely offset by planned run off of auto and personal unsecured installment loans. Excluding the planned auto run off, average total loan growth is 9% and retail loan growth is 7%.
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Citizens Financial Group, Inc.
    
Deposits 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
Period-end deposits$%$%
Demand(1)
$44,326 $49,283 $50,113 $(4,957)(10) %$(5,787)(12) %
Money market48,905 49,905 45,342 (1,000)(2)3,563 8 
Checking with interest34,496 39,721 32,417 (5,225)(13)2,079 6 
Savings29,789 29,805 26,104 (16)— 3,685 14 
Term14,678 12,010 4,800 2,668 22 9,878 206 
Total period-end deposits$172,194 $180,724 $158,776 $(8,530)(4.7) %$13,418 8.5  %
Average deposits
Demand(1)
$46,135 $50,706 $48,641 $(4,571)(9) %$(2,506)(5) %
Money market49,942 50,228 47,220 (286)(1)2,722 6 
Checking with interest35,974 36,952 30,417 (978)(3)5,557 18 
Savings29,460 29,780 23,835 (320)(1)5,625 24 
Term12,839 11,378 4,970 1,461 13 7,869 158 
Total average deposits$174,350 $179,044 $155,083 $(4,694)(2.6) %$19,267 12.4  %
1) Upon the Investors conversion in first quarter 2023, approximately ~$1 billion of their customer demand accounts were mapped to checking with interest at nominal cost. This impacted the period-end demand decrease by ~2% and average by ~1%
First quarter 2023vs.fourth quarter 2022
Total period-end deposits of $172.2 billion were down 4.7%, while average deposits of $174.4 billion were down 2.6%. The decrease in deposits was driven by seasonal and rate-related outflows experienced in the first two months of first quarter 2023. Total deposits were broadly stable in March.
First quarter 2023vs.first quarter 2022
Total period-end deposits of $172.2 billion increased $13.4 billion, or 8.5%, driven by the $16.8 billion impact of the HSBC and ISBC transactions. Excluding these transactions, deposits are down 2.2%, primarily due to rate-related outflows.
Average deposits of $174.4 billion increased $19.3 billion, or 12.4%, including the $21.2 billion impact of the HSBC and ISBC transactions. Excluding these transactions, deposits were down 1.3%.


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Citizens Financial Group, Inc.
Borrowed Funds 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
Period-end borrowed funds$%$%
Short-term borrowed funds$1,018 $3 $25 $1,015 NM$993 NM
Long-term borrowed funds
FHLB advances11,779 8,519 20 3,260 3811,759 NM
Senior debt5,263 5,555 4,290 (292)(5)973 23 
Subordinated debt and other debt1,813 1,813 1,584 — — 229 14 
Total borrowed funds$19,873 $15,890 $5,919 $3,983 25  %$13,954 236  %
Average borrowed funds
Short-term borrowed funds$542 $262 $29 $280 107 %$513 NM
Long-term borrowed funds
FHLB advances10,362 8,818 20 1,544 1810,342 NM
Senior debt5,606 5,397 4,461 209 4 1,145 26 
Subordinated debt and other debt1,812 1,812 1,585 — — 227 14 
Total average borrowed funds$18,322 $16,289 $6,095 $2,033 12  %$12,227 201  %
First quarter 2023vs.fourth quarter 2022
Period-end borrowed funds increased by $4.0 billion, primarily due to an increase in FHLB advances of $3.3 billion.
Average borrowed funds increased by $2.0 billion, primarily due to an increase in FHLB advances.
First quarter 2023vs.first quarter 2022
Period-end borrowed funds increased by $14.0 billion and average borrowed funds increased by $12.2 billion, reflecting the impact of the ISBC acquisition balance sheet and issuance of senior and subordinated debt.
12
Citizens Financial Group, Inc.
Capital 1Q23 change from
($s and shares in millions, except per share data)1Q234Q221Q224Q221Q22
Period-end capital$%$%
Stockholders' equity$24,201 $23,690 $22,074 $511 2  %$2,127 10  %
Stockholders' common equity22,187 21,676 20,060 511 2 2,127 11 
Tangible common equity14,247 13,728 13,100 519 4 1,147 9 
Tangible book value per common share$29.44 $27.88 $30.97 $1.56 6  %$(1.53)(5) %
Common shares - at end of period484.0 492.3 423.0 (8.3)(2)61.0 14 
Common shares - average (diluted)487.7 495.5 424.7 (7.8)(2) %63.0 15  %
Common equity tier 1 capital ratio(1)
10.0 %10.0 %9.7 %
Total capital ratio(1)
12.9 12.8 12.5 
Tangible common equity ratio6.6 %6.3 %7.1 %
Tier 1 leverage ratio(1)
9.4 %9.3 %9.6 %
1) Current reporting-period regulatory capital ratios are preliminary.
First quarter 2023
•The CET1 capital ratio was 10.0% as of March 31, 2023 compared with 10.0% at December 31, 2022 and 9.7% at March 31, 2022. This is at the top of the targeted CET1 range of 9.5%-10%.
•Total capital ratio of 12.9% compares with 12.8% at December 31, 2022 and 12.5% as of March 31, 2022.
•Tangible common equity ratio of 6.6% compares with 6.3% at December 31, 2022 and 7.1% as of March 31, 2022.
•Tangible book value per common share of $29.44 increased 6% compared with fourth quarter 2022.
•Citizens paid $205 million in common dividends to shareholders during first quarter 2023. This compares with $208 million in common dividends during fourth quarter 2022 and $165 million during first quarter 2022.
•Citizens repurchased $400 million of common stock during first quarter 2023. Total payout ratio to shareholders in 1Q23 was 113%.
13
Citizens Financial Group, Inc.
Credit quality review 1Q23 change from
($s in millions)1Q234Q221Q224Q221Q22
$/bps%$/bps%
Nonaccrual loans and leases(1)
$996 $944 $789 $52 6  %$207 26  %
90+ days past due and accruing(2)
424 367 826 57 16 (402)(49)
Net charge-offs133 88 59 45 51 74 125 
Provision (benefit) for credit losses168 132 3 36 27165 NM
Allowance for credit losses $2,275 $2,240 $1,878 $35 2  %$397 21  %
Nonaccrual loans and leases to loans and leases0.64  %0.60  %0.60  %4  bps4 
Net charge-offs as a % of total loans and leases0.34 0.22 0.19 12 15 
Allowance for credit losses to loans and leases1.47 1.43 1.43 4 4 
Allowance for credit losses to nonaccrual loans and leases229  %237  %238  %(8) bps(9) 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 $309 million, $316 million, and $792 million of loans fully or partially guaranteed by the FHA, VA, and USDA for March 31, 2023, December 31, 2022, and March 31, 2022, respectively.
First quarter 2023vs.fourth quarter 2022
•The nonaccrual loans to total loans ratio of 0.64% compares with 0.60% at December 31, 2022.
•Nonaccrual loans of $996 million increased $52 million, or 6%, reflecting an $85 million increase in commercial, partly offset by a $33 million decrease in retail.
•Net charge-offs of $133 million, or 34 basis points of average loans and leases, were up 12 basis points from the prior quarter. The increase in net charge-offs of $45 million reflects a $36 million increase in commercial.
•The first quarter 2023 provision for credit losses of $168 million compares with $132 million for fourth quarter 2022. The reserve build of $35 million increased the allowance for credit losses ratio to 1.47%, up from 1.43% as of December 31, 2022.
•The allowance for credit losses to nonaccrual loans and leases ratio of 229% compares with 237% as of December 31, 2022.
First quarter 2023vs.first quarter 2022
•The nonaccrual loans to total loans ratio of 0.64% increased from 0.60% at March 31, 2022.
•Nonaccrual loans increased $207 million, or 26%, reflecting the incorporation of ISBC and an increase in commercial.
•Net charge-offs of 34 basis points of average loans and leases compares with 19 basis points in first quarter 2022.
•Net charge-offs of $133 million increased $74 million reflecting a $33 million increase in retail, primarily other retail, auto and home equity, and a $41 million increase in commercial as credit losses continue to gradually normalize off pandemic era lows.
•Provision for credit losses of $168 million compares with a $3 million provision in first quarter 2022.
•Allowance for credit losses of $2.3 billion was up $397 million compared with March 31, 2022, primarily reflecting the additions of the HSBC and ISBC portfolios. Allowance for credit losses ratio of 1.47% as of March 31, 2023, compares with 1.43% as of March 31, 2022.
•The allowance for credit losses to nonaccrual loans and leases ratio of 229% compares with 238% as of March 31, 2022.
14
Citizens Financial Group, Inc.

Corresponding Financial Tables and Information
Investors are encouraged to review the foregoing summary and discussion of Citizens’ earnings and financial condition in conjunction with the detailed financial tables and other information available on the Investor Relations portion of the company’s website at www.citizensbank.com/about-us.
Media:    Peter Lucht - (781) 655-2289
Investors: Kristin Silberberg - (203) 900-6854
Conference Call
CFG management will host a live conference call today with details as follows:
Time:    9:00 am ET
Dial-in: (877) 336-4440, conference ID 6086305
Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations.
Replay Information: A replay of the conference call will be available beginning at 12:00 pm ET on April 19, 2023 through May 19, 2023. Please dial (866) 207-1041 and enter access code 2817435. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $222.3 billion in assets as of March 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 3,400 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. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

15
Citizens Financial Group, Inc.

Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures:
This document contains non-GAAP financial measures denoted as Underlying results and excluding HSBC and ISBC. 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.
16
Citizens Financial Group, Inc.

Non-GAAP financial measures and reconciliations
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q221Q224Q221Q22
$%$%
Total revenue, Underlying:
Total revenue (GAAP)A$2,128 $2,200 $1,645 ($72)(3 %)$483 29 %
Less: Notable items— — — — — — — 
Total revenue, Underlying (non-GAAP)B$2,128 $2,200 $1,645 ($72)(3 %)$483 29 %
Noninterest expense, Underlying:
Noninterest expense (GAAP)C$1,296 $1,240 $1,106 $56 5 %$190 17 %
Less: Notable items66 43 48 23 53 18 38
Noninterest expense, Underlying (non-GAAP)D$1,230 $1,197 $1,058 $33 3 %$172 16 %
Pre-provision profit:
Total revenue (GAAP)A$2,128 $2,200 $1,645 ($72)(3 %)$483 29 %
Less: Noninterest expense (GAAP)C1,296 1,240 1,106 56 5 190 17 
Pre-provision profit (GAAP)$832 $960 $539 ($128)(13 %)$293 54 %
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)B$2,128 $2,200 $1,645 ($72)(3 %)$483 29 %
Less: Noninterest expense, Underlying (non-GAAP)D1,230 1,197 1,058 33 3 172 16 
Pre-provision profit, Underlying (non-GAAP)$898 $1,003 $587 ($105)(10 %)$311 53 %
Provision (benefit) for credit losses, Underlying:
Provision (benefit) for credit losses (GAAP)$168 $132 $3 $36 27%$165 NM
Less: Notable items— — 24 — —(24)(100)
Provision (benefit) for credit losses, Underlying (non-GAAP)$168 $132 ($21)$36 27%$189 NM
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)E$664 $828 $536 ($164)(20 %)$128 24 %
Less: Expense before income tax benefit related to notable items(66)(43)(72)(23)(53)6 8
Income before income tax expense, Underlying (non-GAAP)F$730 $871 $608 ($141)(16 %)$122 20 %
Income tax expense, Underlying:
Income tax expense (GAAP)G$153 $175 $116 ($22)(13 %)$37 32 %
Less: Income tax benefit related to notable items(17)(11)(16)(6)(55)(1)(6)
Income tax expense, Underlying (non-GAAP)H$170 $186 $132 ($16)(9 %)$38 29 %
Net income, Underlying:
Net income (GAAP)I$511 $653 $420 ($142)(22 %)$91 22 %
Add: Notable items, net of income tax benefit49 32 56 17 53(7)(13)
Net income, Underlying (non-GAAP)J$560 $685 $476 ($125)(18 %)$84 18 %
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)K$488 $621 $396 ($133)(21 %)$92 23 %
Add: Notable items, net of income tax benefit49 32 56 17 53(7)(13)
Net income available to common stockholders, Underlying (non-GAAP)L$537 $653 $452 ($116)(18 %)$85 19 %
17
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q221Q224Q221Q22
$/bps%$/bps%
Operating leverage:
Total revenue (GAAP)A$2,128 $2,200 $1,645 ($72)(3.28 %)$483 29.39 %
Less: Noninterest expense (GAAP)C1,296 1,240 1,106 56 4.53 190 17.22 
Operating leverage(7.81 %)12.17 %
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)B$2,128 $2,200 $1,645 ($72)(3.27 %)$483 29.39 %
Less: Noninterest expense, Underlying (non-GAAP)D1,230 1,197 1,058 33 2.80 172 16.43 
Operating leverage, Underlying (non-GAAP)(6.07 %)12.96 %
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio C/A60.90 %56.36 %67.23 %454  bps(633) bps
Efficiency ratio, Underlying (non-GAAP)D/B57.84 54.42 64.28 342  bps(644) bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rateG/E22.97 %21.16 %21.70 %181  bps127  bps
Effective income tax rate, Underlying (non-GAAP)H/F23.25 21.37 21.70 188  bps155  bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)M$21,702 $21,276 $20,981 $426 2 %$721 3 %
Return on average common equityK/M9.11 %11.56 %7.65 %(245) bps146  bps
Return on average common equity, Underlying (non-GAAP)L/M10.01 12.15 8.75 (214) bps126  bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)M$21,702 $21,276 $20,981 $426 2 %$721 3 %
Less: Average goodwill (GAAP)8,177 8,171 7,156 6 — 1,021 14 
Less: Average other intangibles (GAAP)192 199 80 (7)(4)112 140
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)422 424 383 (2)— 39 10 
Average tangible common equityN$13,755 $13,330 $14,128 $425 3 %($373)(3 %)
Return on average tangible common equity K/N14.38 %18.46 %11.36 %(408) bps302  bps
Return on average tangible common equity, Underlying (non-GAAP)L/N15.80 19.40 12.99 (360) bps281  bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)O$222,711 $224,970 $188,317 ($2,259)(1 %)$34,394 18 %
Return on average total assetsI/O0.93 %1.15 %0.90 %(22) bps3  bps
Return on average total assets, Underlying (non-GAAP)J/O1.02 1.21 1.03 (19) bps(1) bps
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)P$222,711 $224,970 $188,317 ($2,259)(1 %)$34,39418 %
Less: Average goodwill (GAAP)8,177 8,171 7,156 6 — 1,021 14 
Less: Average other intangibles (GAAP)192 199 80 (7)(4)112 140
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)422 424 383 (2)— 39 10 
Average tangible assetsQ$214,764 $217,024 $181,464 ($2,260)(1 %)$33,300 18 %
Return on average total tangible assets I/Q0.97 %1.19 %0.94 %(22) bps3  bps
Return on average total tangible assets, Underlying (non-GAAP)J/Q1.06 1.25 1.06 (19) bps—  bps
18
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q221Q224Q221Q22
$/bps%$/bps%
Tangible book value per common share:
Common shares - at period-end (GAAP)R483,982,264 492,282,158 423,031,985 (8,299,894)(2 %)60,950,279 14 %
Common stockholders' equity (GAAP)$22,187 $21,676 $20,060 $511 2 $2,127 11 
Less: Goodwill (GAAP)8,177 8,173 7,232 4 — 945 13 
Less: Other intangible assets (GAAP)185 197 115 (12)(6)70 61
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP)422 422 387 — — 35 9 
Tangible common equityS$14,247 $13,728 $13,100 $519 4 %$1,147 9 %
Tangible book value per common shareS/R$29.44 $27.88 $30.97 $1.56 6 %($1.53)(5 %)
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)T485,444,313 493,293,981 422,401,747 (7,849,668)(2 %)63,042,566 15 %
Average common shares outstanding - diluted (GAAP)U487,712,146 495,478,398 424,670,871 (7,766,252)(2)63,041,275 15 
Net income per average common share - basic (GAAP)K/T$1.00 $1.26 $0.94 ($0.26)(21)$0.06 6 
Net income per average common share - diluted (GAAP)K/U1.00 1.25 0.93 (0.25)(20)0.07 8 
Net income per average common share - basic, Underlying (non-GAAP)L/T1.10 1.32 1.07 (0.22)(17)0.03 3 
Net income per average common share - diluted, Underlying (non-GAAP)L/U1.10 1.32 1.07 (0.22)(17)0.03 3 


19
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q221Q224Q221Q22
$/bps%$/bps%
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)$658 $633 $594 $25 4 %$64 11 %
Less: Notable items16 15 6 1 710 167 
Salaries and employee benefits, Underlying (non-GAAP)$642 $618 $588 $24 4 %$54 9 %
Outside services, Underlying:
Outside services (GAAP)$176 $170 $169 $6 4 %$7 4 %
Less: Notable items27 17 35 10 59 (8)(23)
Outside services, Underlying (non-GAAP)$149 $153 $134 ($4)(3 %)$15 11 %
Equipment and software, Underlying:
Equipment and software (GAAP)
$169 $170 $150 ($1)(1 %)$19 13 %
Less: Notable items4 2 2 2 100 2 100 
Equipment and software, Underlying (non-GAAP)$165 $168 $148 ($3)(2 %)$17 11 %
Occupancy, Underlying:
Occupancy (GAAP)$124 $110 $83 $14 13 %$41 49 %
Less: Notable items18 2 — 16 NM18 100 
Occupancy, Underlying (non-GAAP)$106 $108 $83 ($2)(2 %)$23 28 %
Other operating expense, Underlying:
Other operating expense (GAAP)$169 $157 $110 $12 8 %$59 54 %
Less: Notable items1 7 5 (6)(86)(4)(80)
Other operating expense, Underlying (non-GAAP)$168 $150 $105 $18 12 %$63 60 %


























20
Citizens Financial Group, Inc.
Non-GAAP measures and reconciliations - excluding the impact of HSBC & ISBC Acquisitions
(in millions, except ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q221Q224Q221Q22
$/bps%$/bps%
Noninterest expense, Underlying excluding HSBC & ISBC:
Noninterest expense (GAAP)A$1,296 $1,240 $1,106 $56 5 %$190 17 %
Less: Notable items66 43 48 23 53 18 38
Less: HSBC & ISBC Acquisition Impact125 129 13 (4)(3)112 NM
Total Noninterest expense, Underlying excluding HSBC & ISBC (non-GAAP)B$1,105 $1,068 $1,045 $37 3 %$60 6 %
Total Loans, excluding HSBC & ISBC
Total Loans (GAAP)C$154,688 $156,662 131,305 (1,974)(1)%23,383 18 %
Less: HSBC & ISBC Acquisition Impact19,995 20,420 1,443 (425)(2)18,552 NM
Total Loans, excluding HSBC & ISBC (non-GAAP)D$134,693 $136,242 $129,862 ($1,549)(1 %)$4,831 4 %
Total Commercial Loans, excluding HSBC & ISBC
Total Commercial Loans (GAAP)E$80,866 $82,180 $61,521 ($1,314)(2 %)$19,345 31 %
Less: HSBC & ISBC Acquisition Impact14,770 15,093 33 (323)(2)14,737 NM
Total Commercial Loans, excluding HSBC & ISBC (non-GAAP)F$66,096 $67,087 $61,488 ($991)(1 %)$4,608 7 %
Total Retail Loans, excluding HSBC & ISBC
Total Retail Loans (GAAP)G$73,822 $74,482 $69,784 ($660)(1 %)$4,038 6 %
Less: HSBC & ISBC Acquisition Impact5,225 5,327 1,410 (102)(2)3,815 NM
Total Retail Loans, excluding HSBC & ISBC (non-GAAP)H$68,597 $69,155 $68,374 ($558)(1 %)$223 — %
Total Average Loans, excluding HSBC & ISBC
Average Loans (GAAP)I$156,492 $157,099 $129,154 ($607)— %$27,338 21 %
Less: HSBC & ISBC Acquisition Impact20,204 20,804 680 (600)(3)19,524 NM
Total Average Loans, excluding HSBC & ISBC (non-GAAP)J$136,288 $136,295 $128,474 ($7)— %$7,814 6 %
Average Commercial Loans, excluding HSBC & ISBC
Average Commercial Loans (GAAP)K$82,321 $82,468 $60,573 ($147)— %$21,748 36 %
Less: HSBC & ISBC Acquisition Impact14,930 15,518 16 (588)(4)14,914 NM
Average Commercial Loans, excluding HSBC & ISBC (non-GAAP)L$67,391 $66,950 $60,557 $441 1 %$6,834 11 %
Average Retail Loans, excluding HSBC & ISBC
Average Retail Loans (GAAP)M$74,171 $74,631 $68,581 ($460)(1 %)$5,590 8 %
Less: HSBC & ISBC Acquisition Impact5,274 5,286 665 (12)—4,609 NM
Average Retail Loans, excluding HSBC & ISBC (non-GAAP)N$68,897 $69,345 $67,916 ($448)(1 %)$981 1 %
21
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,” “hopeful,” “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 rate of growth in the economy and employment levels, as well as general business and economic conditions, and changes in the competitive environment;
•Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including the anticipated benefits of the HSBC and Investors transactions;
•The effects of geopolitical instability, including as a result of Russia’s invasion of Ukraine and the imposition of sanctions on Russia and other actions in response, 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;
•Our capital and liquidity requirements under regulatory capital standards and our ability to generate capital internally or raise capital on favorable terms;
•The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
•Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;
•The effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
•Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses;
•Environmental risks, such as physical or transitional 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, receipt of required regulatory approvals and other 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.
CFG-IR
22
1Q23 Financial Results April 19, 2023

 
2 Forward-looking statements and use of non-GAAP financial measures 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,” “hopeful,” “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 rate of growth in the economy and employment levels, as well as general business and economic conditions, and changes in the competitive environment; • Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including the anticipated benefits of the HSBC and Investors transactions; • The effects of geopolitical instability, including as a result of Russia’s invasion of Ukraine and the imposition of sanctions on Russia and other actions in response, 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; • Our capital and liquidity requirements under regulatory capital standards and our ability to generate capital internally or raise capital on favorable terms; • The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; • Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets; • The effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; • Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses; • Environmental risks, such as physical or transitional 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, receipt of required regulatory approvals and other 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. Non-GAAP Financial Measures: This document contains non-GAAP financial measures denoted as Underlying results and excluding HSBC and ISBC. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. The Appendix presents 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.

 
3 1Q23 GAAP financial summary 1Q23 4Q22 1Q22 Q/Q Y/Y $s in millions $/bps % $/bps % Net interest income $ 1,643 $ 1,695 $ 1,147 $ (52) (3) % $ 496 43 % Noninterest income 485 505 498 (20) (4) (13) (3) Total revenue 2,128 2,200 1,645 (72) (3) 483 29 Noninterest Expense 1,296 1,240 1,106 56 5 190 17 Pre-provision profit 832 960 539 (128) (13) 293 54 Provision (benefit) for credit losses 168 132 3 36 27 165 NM Income before income tax expense 664 828 536 (164) (20) 128 24 Income tax expense 153 175 116 (22) (13) 37 32 Net income $ 511 $ 653 $ 420 $ (142) (22) % $ 91 22 % Preferred dividends 23 32 24 (9) (28) (1) (4) Net income available to common stockholders $ 488 $ 621 $ 396 $ (133) (21) % $ 92 23 % $s in billions Average interest-earning assets $ 202.6 $ 204.5 $ 169.3 $ (2.0) (1) % $ 33.3 20 % Average deposits $ 174.4 $ 179.0 $ 155.1 $ (4.7) (3) % $ 19.3 12 % Performance metrics Net interest margin(1) 3.29 % 3.29 % 2.75 % — bps 54 bps Net interest margin, FTE(1) 3.30 3.30 2.75 — 55 Loans-to-deposit ratio (period-end) 89.8 86.7 82.7 314 713 ROACE 9.1 11.6 7.7 (245) 146 ROTCE 14.4 18.5 11.4 (408) 302 ROA 0.9 1.2 0.9 (22) 3 ROTA 1.0 1.2 0.9 (22) 3 Efficiency ratio 60.9 56.4 67.2 454 (633) Noninterest income as a % of total revenue 23 % 23 % 30 % (11) bps (745) bps FTEs(2) 18,547 18,889 17,843 (342) (2) % 704 4 % Operating leverage (7.8) % 12.2 % Per common share Diluted earnings $ 1.00 $ 1.25 $ 0.93 $ (0.25) (20) % $ 0.07 8 % Tangible book value $ 29.44 $ 27.88 $ 30.97 $ 1.56 5.6 % $ (1.53) (5) % Average diluted shares outstanding (in millions) 487.7 495.5 424.7 (7.8) (2) % 63.0 15 % See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34.

 
4 1Q23 Underlying financial summary(1) Q/Q Y/Y $s in millions 1Q23 $/bps % $/bps % Net interest income $ 1,643 $ (52) (3)% $ 496 43% Noninterest income 485 (20) (4) (13) (3) Total revenue 2,128 (72) (3) 483 29 Noninterest expense 1,230 33 3 172 16 Pre-provision profit 898 (105) (10) 311 53 Provision (benefit) for credit losses 168 36 27 189 NM Net income available to common stockholders $ 537 $ (116) (18)% $ 85 19% Performance metrics Diluted EPS $ 1.10 $ (0.22) (17)% $ 0.03 3% Efficiency ratio 57.8 342 bps (644) bps Noninterest income as a % of total revenue 23 % (11) bps (745) bps ROTCE 15.8 % (360) bps 281 bps Tangible book value per share $ 29.44 $ 1.56 6 $ (1.53) (5) Operating leverage (6)% 13% See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. 1Q23 Notable Items Impacts Pre-tax EPS ($s in millions except per share data) Integration related $ (52) $ (0.08) TOP revenue and efficiency initiatives (14) (0.02) Total: $ (66) $ (0.10)

 
5 Overview(1) See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. 1Q23: Navigating well in a dynamic environment – Underlying EPS of $1.10 and ROTCE of 15.8% – Underlying PPNR of $898 million, reflecting seasonality ▪ NII down 3% QoQ given lower day count and slightly lower interest-earning assets; stable net interest margin of 3.30% ▪ Fees down 4% QoQ with lower capital markets and service charges partly offset by higher FX and derivatives product revenue ▪ Underlying efficiency ratio of 57.8% compares with 54.4% at 4Q22 and 64.3% at 1Q22; positive operating leverage of 13% YoY – Period-end loans down 1% and average loans down slightly QoQ, including planned auto run off; loan yield up 50 bps QoQ – Period-end deposits down 4.7% QoQ; average deposits down 2.6%; cumulative beta of 36% – Provision for credit losses of $168 million and reserve build of $35 million Continued strong credit metrics – Allowance for credit losses coverage ratio of 1.47% up 4 bps QoQ; compares with pro forma day-1 CECL reserve of ~1.3% ▪ Increased allowance coverage of CRE general office to 6.7% – Prudent risk appetite across retail and commercial; NCOs of 34 bps up 12 bps QoQ; NPLs to loans of 0.64% vs. 0.60% at 4Q22 Strong capital, liquidity and funding – CET1 ratio at upper end of target range at 10.0%(2) – Tangible common equity ratio of 6.6%, up ~38 bps QoQ – Period-end LDR ratio of 89.8%; total available liquidity of ~$66 billion – Broadly stable deposits during period of market stress in March, reflecting strength of client relationships and deposit franchise – Consumer deposits are ~67% of our deposit base; quarter-end insured/secured deposits at ~68% of total deposits(3) Continue to focus on prudent offense while strengthening expense discipline – NYC Metro and New Jersey market entry progressing well; completed Investors conversion – Continued focus on deposit initiatives to attract new clients; ~5K net new Business Banking and ~350 net new Commercial Banking clients above trend added in 1Q23 – TOP 8 is well underway, current target is ~$100 million pre-tax run-rate benefit by YE2023; seeking new initiatives to augment

 
6 Current areas of interest in the banking industry Quality deposit franchise Strength of capital base Maintaining a strong liquidity position CRE sector concerns Potential regulatory changes ■ Consumer deposit base represents ~67% of total deposits, near top of peer group ■ Commercial deposits are diversified across industry segments, relatively granular in size, and we are primary bank for ~66% of commercial deposit base ■ ~68% of our deposits are insured by the FDIC or secured(2) ■ Total deposits were broadly stable in March ■ Citizens maintains a strong liquidity position with rigorous stress testing and appropriate buffers above required limits ■ Current LCR level exceeds what would be required as a Category III bank ■ Citizens has a diverse funding base with significant available liquidity of ~$66 billion at March 31, 2023 ■ Citizens has one of the highest capital levels in our regional bank peer group ■ CET1 ratio of 10.0%(1); 8.7% including unrealized losses on AFS & HTM securities AOCI ■ Tangible common equity ratio of 6.6%, up ~38 bps QoQ ■ Weakness in office sector stems from remote work shift, higher interest rates affecting refinance options and weakening economy ■ Our office portfolio is reasonably well positioned across type, geography and suburban/ central business district; virtually all are income producing and current on payments ■ While criticized assets and work-outs will increase, expect losses to be manageable; reserve levels for general office currently at 6.7% ■ What happened in March was an idiosyncratic bank situation, not a 'regional bank crisis' ■ Regulators expected to consider a range of potential changes to capital, liquidity and deposit insurance rules and processes ■ Likely to follow review/comment process with any changes occurring gradually See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34.

 
7 Strong capital position(1) Key messages ■ Prudent capital management, including the decision to prioritize returns over growth in recent quarters, has resulted in a strong capital position – CET1 ratio including impact from net unrealized losses on debt securities in AOCI and TCE ratio are among the strongest in the peer group – Generate ~25 basis points of capital post-dividend each quarter – Timing and amount of future share repurchases will be impacted by our view of external conditions CET1 Ratio(2) 10.4% 10.0% 10.0% 10.0% 9.6% 9.4% 9.3% 9.1% 9.1% 9.0% 8.4% Peer 1 CFG (1Q23) CFG (4Q22) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 7.6% 6.6% 6.3% 5.6% 5.6% 5.3% 5.1% 4.9% 4.6% 4.5% 4.4% Peer 1 CFG (1Q23) CFG (4Q22) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 10.2% 8.7% 8.5% 7.6% 7.5% 7.3% 7.1% 6.6% 6.3% 6.3% 6.1% Peer 1 CFG (1Q23) CFG (4Q22) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 TCE ratio CET1 Ratio including impact from net unrealized losses on debt securities in AOCI(3) 7.2% 6.4% 6.0% 5.6% 5.1% 4.9% 4.6% 4.6% 4.2% 3.3% 3.1% Peer 1 CFG (1Q23) CFG (4Q22) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 TCE ratio including HTM marks See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34.

 
8 56% 65% 67% 4Q22 4Q22 1Q23 Branch Deposits 47% Citizens Access™ 5% Wealth 1% Business Banking 14% Commercial 26% Treasury/ Other 7% (As of 3/31/23) Highly diversified and retail-oriented deposit base $172B Deposits Peer Avg(1) 29% 27% 26% 3Q22 4Q22 1Q23 Business Mix Product Mix 60% 60% 68% 3Q22 4Q22 1Q23 See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. Demand 26% Money Market 29% Checking with interest 21% Citizens Access™ Savings 4% Savings 13% Term 7% Total Deposits insured/secured(2) % Consumer Banking Deposits DDA as % of Total Deposits

 
9 CFG Peer Average H8 Data* 2Q22 3Q22 4Q22 1Q23 (5)% (4)% (3)% (2)% (1)% 0% 1% 2% ■ The 4.7% decrease QoQ in spot deposits was driven by seasonality and rate-related outflows, and was ~1% greater than our forecast for Q1 at the beginning of the year ■ We had deposit growth in 2H22 verses industry and peer declines; deposit flows since mid-2022 through 3/31/23 broadly in line with H8 ■ Total deposits were broadly stable in March ■ ~75% of retail checking households are primary checking relationships; represents ~82% of retail branch deposits; DDA % of 25% relatively stable ■ ~66% of commercial deposits are core/primary vs. ~60% at 4Q22; DDA % of 31% relatively stable Period-end deposit performance since mid-2022 is in line with industry *Federal Reserve H8 data represents total industry deposit balances Commentary -4.7% QoQ+1.2% QoQ -0.2% QoQ Cumulative change in deposits since 6/30/22 ISBC acquisition 2Q22 Note: Peer average for 4Q22 adjusted lower to exclude MUFG impact for USB

 
10 Deposit growth strategies ■ Attractive opportunities in the NY Metro market post- conversion of Investors branches ■ Relationships with new Treasury Solutions clients as a result of the dislocation in March represent a meaningful and more diversified deposit opportunity ■ Continue to expand our cash management offerings – ESG-focused offerings: Green Deposits, with expansion into Social, and Carbon Offset Deposits – Opportunities tied to escrow and bankruptcy capabilities – Enhanced tools and invested in capabilities to drive higher operating deposits – Invested in capabilities like integrated receivables and payables ■ Have invested to expand our liquidity management capabilities to provide a comprehensive platform for clients to structure and manage their liquidity – Invested in people and skill-sets – Add-on features and functionality to core cash management platform – Accelerated efforts to deploy new payments channels and capabilities ■ Continuing to accelerate efforts to drive strong relative performance to peers in low-cost deposit categories over the short and longer term horizon – Focused on driving primary, engaged households with distinctive capabilities • Citizens PlusTM, Paid Early, Peace of MindTM, seamless direct deposit switching capability, etc. – Building on strong momentum with entry into NY Metro market • Opportunity to raise branch productivity to legacy CFG levels ■ Driving strong relative performance on interest bearing deposit balance growth and cost containment – Launching targeted "Active Savers" campaigns in 2Q23 enabling customers to grow savings with enhanced digital tools and features (debit card round-ups, recurring transfers, etc.) – Leverage data analytics to deliver targeted CD and money market offers to high potential mass affluent customers – Remain competitively priced with Citizens AccessTM Consumer Commercial

 
11 Commercial Real Estate sector concerns Commentary ■ CRE portfolio is well diversified across asset type, geography, and borrowers with the emphasis on strong sponsor selection ■ Strong client selection including institutional and private investors with long-term Citizens relationships ■ Continue to build reserve position reflective of risks in general office ■ CRE general office average LTV at origination of ~60% CRE by property type(1) Property Type Balance ($ in billions) % of total CFG loans NPL ($ in millions) NPL % ACL $ ACL/NPL Ratio ACL Coverage Multifamily + Co-op $ 10.5 6.8 % $ 21 0.2 % $ 88 418 % 0.8 % Office - credit-tenant/life sciences 2.2 1.4 — — 9 N/M 0.4 Office - general 4.1 2.7 58 1.4 272 465 6.7 Retail 3.5 2.3 12 0.3 49 419 1.4 Industrial & Warehouse 3.6 2.3 — — 38 N/M 1.1 Other 5.2 3.4 48 0.9 121 250 2.3 Total $ 29.0 18.7 % $ 140 0.5 % $ 577 413 % 2.0 % See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. (As of 3/31/2023)

 
12 31% 13% 7% 21% 12% 8% 8% Commercial Real Estate - $6.3B Office Portfolio: well diversified Geography Mid-Atlantic Midwest New England Other NC 4 % WA 3 % GA 3 % DC 2 % Other 9 % 25% 11%64% Other General office $4.1B Credit tenant $1.5B Life sciences $0.7B Property type Class A 57% Class B 37% Class C 6% $4.1B General office breakdown Suburban 68% Central Business District 32% Income producing 90% Construction 6% REIT 4% TX CA VA

 
13 3.30% 0.44% (0.44)% 3.30% 4Q22 Asset Yields Funding Costs 1Q23 $169.3B $198.7B $203.6B $204.5B $202.6B $1,147 $1,505 $1,665 $1,695 $1,643 2.75% 3.04% 3.25% 3.30% 3.30% 1Q22 2Q22 3Q22 4Q22 1Q23 ■ NII down 3% given lower day count (-$29MM) and slightly lower interest-earning assets (-$14MM) – NIM of 3.30% was stable, as higher earning-asset yields were offset by higher funding costs – Interest-earning asset yields increased 41 bps to 4.76% – Interest-bearing deposit costs up 51 bps to 174 bps; well-controlled cumulative beta of 36% Net interest income $s in millions, except earning assets NII and NIM Average interest-earning assets Net interest income NIM, FTE 3.30% NIM stable QoQ ■ NII up 43%, reflecting higher NIM and 20% growth in average interest-earning assets, including the impact of the HSBC and ISBC transactions – NIM of 3.30%, up 55 bps, reflects higher earning- asset yields given higher market interest rates and interest-earning asset growth, partially offset by increased funding costs – Interest-earning asset yields increased 188 bps – Interest-bearing deposit costs up 164 bps NIM 4Q22 to 1Q23 Year-Over-Year Linked Quarter

 
14 ■ Noninterest income decreased 3% – Service charges and fees increased $2 million, reflecting the benefit of acquisitions and improvement in Treasury Solutions fees – Capital markets fees decreased $10 million, reflecting lower syndication fees, partially offset by higher M&A advisory and underwriting fees – Mortgage banking fees decreased $12 million, driven by lower production volumes, partly offset by improved gain-on-sale margins and higher servicing revenue – Card fees increased $12 million, given higher transaction volumes $498 $525 $512 $505 $485 1Q22 2Q22 3Q22 4Q22 1Q23 Noninterest income(1) $s in millions ■ Noninterest income decreased 4% – Service charges and fees decreased $5 million, reflecting seasonal impacts – Capital markets fees decreased $15 million given lower syndications and M&A advisory fees – Mortgage banking fees increased $3 million given higher production volume and improved margins, partly offset by lower servicing fees – Trust and investment services fees increased $2 million, reflecting seasonally higher advisory fees – FX and derivative products revenue increased $13 million given higher client interest rate and commodities hedging activity – Other income decreased $19 million, reflecting higher derivative expense associated with hedging customer risk given wider spreads, as well as sundry other items Solid fee performance in spite of seasonality and a challenging market environment See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. $s in millions 1Q23 4Q22 1Q22 $ Q/Q Y/Y Service charges and fees $ 100 $ 105 $ 98 $ (5) $ 2 Capital markets fees 83 98 93 (15) (10) Card fees 72 71 60 1 12 Mortgage banking fees 57 54 69 3 (12) Trust and investment services fees 63 61 61 2 2 FX and derivative products 48 35 51 13 (3) Letter of credit and loan fees 40 41 38 (1) 2 Securities gains, net 5 4 4 1 1 Other income(2) 17 36 24 (19) (7) Noninterest income $ 485 $ 505 $ 498 $ (20) $ (13) Linked Quarter Year-Over-YearNoninterest income

 
15 64.3% 58.2% 54.9% 54.4% 57.8% 1Q22 2Q22 3Q22 4Q22 1Q23 Underlying, as applicable 1Q23 4Q22 1Q22 $ $s in millions Q/Q Y/Y Salaries & employee benefits $ 642 $ 618 $ 588 $ 24 $ 54 Outside services 149 153 134 (4) 15 Equipment & software 165 168 148 (3) 17 Occupancy 106 108 83 (2) 23 Other operating expense 168 150 105 18 63 Noninterest expense $ 1,230 $ 1,197 $ 1,058 $ 33 $ 172 Full-time equivalents (FTEs) 18,547 18,889 17,843 (342) 704 Noninterest expense(1) ■ Underlying noninterest expense up 2.8% – Reflects higher salaries and employee benefits, given seasonal increases in payroll taxes and 401k costs – Other operating expense increased primarily reflecting higher FDIC insurance cost given industry- wide 2 bp surcharge effective January 1, 2023 – Other categories remain broadly stable reflecting strong expense discipline and the benefit of efficiency initiatives ■ Underlying noninterest expense of $1.2 billion, increased 16%, or 6% excluding HSBC/ISBC – Reflects higher FDIC insurance and fraud losses, partially offset by the benefit of efficiency initiatives See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. Underlying efficiency ratio Disciplined on expenses while prioritizing key strategic investments Linked Quarter Year-Over-Year

 
16 ■ Average loans down slightly – Commercial broadly stable – Retail down slightly given planned run off in auto, partly offset by growth in mortgage and home equity; up 0.5% ex-auto run off ■ Period-end loans down 1% – Commercial down 2% due to balance sheet optimization actions, as well as lower line utilization – Retail down 1% with planned run off in auto partly offset by growth in home equity and mortgage; up 0.2% ex-auto run off ■ Average loan yield of 5.25%, up 50 bps QoQ $156.9 $157.1 $156.5 $129.2 $153.8 $128.5 $132.0 $156.9 $157.1 $156.5 $0.7 $21.8 CFG standalone HSBC/ISBC 1Q22 2Q22 3Q22 4Q22 1Q23 Loans and leases(1) $s in billions Period-end loans down slightly reflecting balance sheet optimization ■ Average loans up $27.3 billion, or 21%; excluding HSBC/ISBC, up 6% (9% ex-auto run off) – Commercial up 11% reflecting growth in C&I and CRE – Retail up 1% with growth in mortgage and home equity, partly offset by planned run off of auto and personal unsecured installment loans; up 7% ex-auto run off ■ Period-end loans up $23.4 billion, or 18%; excluding HSBC/ISBC, up 4% (7% ex-auto run off) – Commercial up 7% primarily driven by growth in C&I and CRE – Retail up slightly driven by mortgage and home equity, largely offset by planned run off in auto and personal unsecured installment loans; up 6% ex-auto run off Average loans and leases(2) $156.1 $156.7 $154.7 $131.3 $156.2 $129.9 $134.5 $156.1 $156.7 $154.7 $1.4 $21.7 CFG standalone HSBC/ISBC 1Q22 2Q22 3Q22 4Q22 1Q23 $s in billions Period-end loans and leases(2) See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. 3.26% 3.55% 4.17% 4.75% 5.25% Linked Quarter Year-Over-Year

 
17 $155.1 $176.4 $177.6 $179.0 $174.4 1Q22 2Q22 3Q22 4Q22 1Q23 Average funding and cost of funds(1) Deposits broadly stable during March disruption $s in billions 1Q23 Average deposits See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. 0.07% 0.12% 0.39% 0.88% 1.28% 0.10% 0.18% 0.56% 1.23% 1.74% Total deposit costs Interest-bearing deposit costs Commercial Consumer Other Year-Over-Year1Q23 Average deposit mix 26% 29% 21% 4% 13% 7% Demand Checking with interest Citizens Access Savings Savings Money Market Term Linked Quarter ■ Average deposits down $4.7 billion, or 2.6%; Period-end deposits down $8.5 billion, or 4.7%, driven by seasonal and rate-related outflows – Deposit decrease occurred in January/February, broadly stable in March ■ Citizens Access™ 1Q23 average balance of $8.1 billion; period- end balance of $8.8 billion ■ Total deposit costs increased 40 bps ■ Interest bearing deposit costs increased 51 bps; sequential beta 73%; cumulative beta 36% ■ Total cost of funds of 159 bps, up 46 bps ■ Period-end FHLB advances of $11.8 billion, up $3.3 billion ■ Period-end deposit growth of $13.4 billion, or 8.5%, including $16.8 billion related to HSBC/ISBC – Deposits down 2.2% excluding HSBC/ISBC ■ Average deposits up $19.3 billion, or 12.4%, including $21.2 billion related to HSBC/ISBC – Deposits down 1.3% excluding HSBC/ISBC ■ Total deposit costs up 121 bps and interest-bearing deposit costs up 164 bps ■ Total cost of funds up 143 bps

 
18 $789 $852 $944 $996 $839 $86 0.60% 0.54% 0.55% 0.60% 0.64% Nonaccrual loans Nonaccrual loans - ISBC Nonaccrual loans to total loans 1Q22 2Q22 3Q22 4Q22 1Q23 $1,878 $2,196 $2,240 $2,275$2,147 $247 1.43% 1.37% 1.41% 1.43% 1.47% Allowance for credit losses Allowance for credit losses - ISBC Allowance to loan coverage ratio 1Q22 2Q22 3Q22 4Q22 1Q23 ■ NCOs of $133 million, or 34 bps of average loans and leases, up 12 bps QoQ ■ Nonaccrual loans increased 4 bps QoQ to 64 bps of total loans driven by an increase in commercial, partly offset by a decrease in retail ■ Provision for credit losses of $168 million, with a reserve build of $35 million; ACL coverage ratio of 1.47%, up 4 bps QoQ ■ ACL to nonaccrual loans and leases ratio of 229% compares with 237% as of 4Q22 and 238% as of 1Q22 $(21) $71 $123 $132 $168 $59 $49 $74 $88 $133 0.19% 0.13% 0.19% 0.22% 0.34% 1Q22 2Q22 3Q22 4Q22 1Q23 Credit quality overview $s in millions $s in millions See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. Credit provision expense (benefit); net charge-offs Nonaccrual loans $s in millions Allowance for credit losses (2) Underlying provision expense (benefit) for credit losses Net charge-offs Net charge-off ratio (1) Highlights

 
19 4Q22 1Q23 ACL % Coverage ACL % Coverage Retail $ 973 1.31 % $ 949 1.29 % Commercial 1,267 1.54 1,326 1.64 C&I 706 1.36 724 1.44 CRE 538 1.86 577 1.99 Leasing 23 1.59 24 1.72 Total $ 2,240 1.43 % $ 2,275 1.47 % Allowance for credit losses ■ The increase in the ACL reserve coverage to 1.47% primarily reflects higher reserves against CRE exposures ■ The key macroeconomic assumptions underlying the reserve reflect a moderate recession over the two-year reasonable and supportable period ■ Peak unemployment of ~6% and peak-to-trough GDP decline of ~1% compare with ~6% and ~1.5%, respectively, in prior quarter. Collateral values peak-to-trough declines broadly stable with prior quarter ■ Additionally, qualitative factors are incorporated in the allowance framework to account for other considerations ■ Additional detail on the CRE portfolio is provided on pages 11 and 12 $s in millions CommentaryAllowance for credit losses

 
20 ■ 1Q23 CET1 ratio of 10.0%(1) compares with 10.0% in 4Q22 ■ TBV/share of $29.44, up 6% QoQ ■ Tangible common equity ratio of 6.6%, up 38 bps QoQ ■ Paid $205 million in common dividends to shareholders in 1Q23 ■ Repurchased $400 million of common stock in 1Q23 – Remaining Board-authorized capacity of $1.6 billion at March 31, 2023 ■ Timing and amount of future share repurchases will be impacted by our view of external conditions Capital remains strong $s in billions (period-end) 1Q22 2Q22 3Q22 4Q22 1Q23 Basel III basis(1)(2) Common equity tier 1 capital $ 15.6 $ 17.9 $ 18.3 $ 18.6 $ 18.4 Risk-weighted assets $ 161.9 $ 187.7 $ 187.2 $ 185.2 $ 183.2 Common equity tier 1 ratio 9.7 % 9.6 % 9.8 % 10.0 % 10.0 % Tier 1 capital ratio 10.9 % 10.6 % 10.9 % 11.1 % 11.1 % Total capital ratio 12.5 % 12.3 % 12.6 % 12.8 % 12.9 % Tangible common equity ratio 7.1 % 6.6 % 6.1 % 6.3 % 6.6 % See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. TBV/share CET1 $ % 4Q22 10.0 % $27.88 Net Income 0.28 1.06 3.8 % Common and preferred dividends (0.12) (0.47) (1.7) % RWA decrease 0.10 Treasury stock (0.22) (0.24) (0.9) % Goodwill and intangibles — (0.01) — % AOCI — 1.28 4.6 % Other (0.04) (0.06) (0.2) % Total change — 1.56 5.6 % 1Q23 10.0 % $29.44 CET1 ratio remains strong(3) Highlights

 
21 Entry into New York Metro progressing well 21 Capitalizing on opportunities to capture market share in NYC/NJ Top 10 market share(1) with ~200 branches and ~$23B in deposits 1 million+ Customer accounts migrated 1,500+ New colleagues ~200 New branches in key growth markets Sales volumes beating expectations with growing momentum ~1.5x Customer acquisition rate at HSBC branches versus CFG legacy markets(3) Up 3% Retail deposit growth in HSBC branches Mar 2022 – Feb 2023(4) ~3x Improvement in customer acquisition rate at Investors branches post-conversion(2) Executing initiatives to build our brand, win new customers and deepen relationships ~1,350 commercial clients and ~2,000 prospects Growing NY Metro Commercial pipeline 2022: Building our brand 2023: Accelerating growth Focus on accelerating growth Strong early momentum Successfully executed conversions See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34.

 
22 ■ TOP 8 underway and progressing well ■ In light of the environment, looking for opportunities to augment the program ■ Further efficiencies under consideration: – Further simplification of operating models – Demand management procurement opportunities – Re-imagination of operations leveraging automation and AI – Migration of non-core operations activities to a managed services model Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 2019- 2021 TOP 6 2022 TOP 7 2023 TOP 8 ~$200 Transforming how we operate the bank and deliver for customers TOP program benefits TOP 8 program $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$100 TOP 8 targeting pre-tax run-rate benefit of ~$100 million by YE2023

 
23 2Q23 outlook vs. 1Q23 See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. 1Q23 Underlying(1) 2Q23 Underlying outlook Net interest income $1,643MM Down ~3% Noninterest income $485MM Up mid to high single digits Noninterest expense $1,230MM Stable to down slightly Net charge-off ratio 34 bps Mid 30's basis points CET1 ratio(2) 10.0% Above 10%; assume some repurchases Tax rate 23.3% ~22.5%

 
24 Updates to FY2023 outlook vs. 2022 See pages 37-38 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 36. 2022 Underlying(1) Original January 2023 Guide April 2023 Update Net interest income $6,012MM Up 11-14% Up 5-7% Noninterest income $2,040MM Up 7-9% Up mid-single digits Noninterest expense $4,630MM Up ~7%; up 3.5-4% ex HSBC/ISBC full-year acquisition impact and FDIC premium increase FY2023 efficiency ratio 200 basis points lower Up ~5% Net charge-off ratio 18 bps Low to mid 30's basis points Mid to high 30's basis points CET1 ratio(2) 10.0% Upper end of 9.5-10% target range Expect capital return to shareholders to approach 100% 10.0-10.25% Tax rate 22% ~22% ~22.5% ■ Focused on maintaining strong capital, liquidity and funding position while sustaining attractive ROTCE ■ Forecasting remains challenging given continued uncertainty in the current environment ■ Focused on initiatives that will have deposits stabilize/grow modestly from Q1 levels ■ Current ACL level covers moderate recession and known risks; less need for further builds given anticipated spot loan decline as Auto runs down ■ Assuming stable market conditions expect share repurchases to build over the course of the year Full-year 2023 outlook commentary Economic and rate assumptions ■ FY2023 average real GDP of ~1%, CPI of ~4% and YE2023 unemployment rate of ~4% ■ Expect Fed to raise 25 basis points in May and remain on hold until one 25 basis point easing in late 2023 ■ 10-year Treasury rate ~3.50 at year-end

 
25 Navigating well through a dynamic environment – CET1 ratio of 10.0%(1), at upper end of target range – CET1 ratio and TCE ratio including impact from net unrealized losses on debt securities in AOCI are among the strongest in the peer group – Repurchased $400 million of common stock in 1Q23; Timing and amount of future share repurchases will be impacted by our view of external conditions – Citizens will continue to manage capital prudently, prioritizing returns over growth – Continuing to invest in strategic initiatives that will deliver superior revenue growth in the medium term – Re-affirm commitment to medium-term financial targets – NY Metro market entry progressing well; provides significant revenue growth potential – TOP 8 well underway targeting ~$100 million pre-tax run-rate benefit by YE2023; Looking to augment TOP 8 with additional initiatives while protecting strategic investment spend Citizens operates from a position of capital strength Citizens maintains a strong liquidity position and a quality deposit franchise – Rigorous stress testing ensures liquidity levels are managed above required limits with appropriate buffers – Highly diversified retail-orientated deposit base; 67% Consumer deposits; ~68% of deposits are FDIC insured or secured – Deposits were broadly stable during period of market stress in March, reflecting strength of client relationships and deposit franchise Disciplined offense to drive strong performance over the medium term Credit metrics and overall position remain solid – NCOs of 34 bps, continuing to normalize off pandemic era lows – Continue to build reserve position reflective of risks in general office; ACL coverage ratio of 1.47%, up 4 bps QoQ

 
Appendix

 
27 Net income available to common shareholders and EPS $s in millions, except per share data ê10% $1,003 $898 4Q22 1Q23 Linked-quarter Underlying results(1) Return on average total tangible assets Return on average tangible common equity Average loans $s in billions Average deposits $s in billions ê0.4% $3.5 2 $3.5 6 ê17% $157.1 $156.5 4Q22 1Q23 $179.0 $174.4 4Q22 1Q23 1.25% 1.06% 4Q22 1Q23 19.4% 15.8% 4Q22 1Q23 $653 $537 $1.32 $1.10 4Q22 1Q23 ê18% Pre-provision profit $s in millions See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. ê360 bps ê19 bps ê3%

 
28 $587 $898 1Q22 1Q23 Year-over-year Underlying results(1) Return on average total tangible assets é53% Average loans $s in billions é21% Net income available to common shareholders and EPS $s in millions, except per share data Return on average tangible common equity Average deposits $s in billions $3.5 2 0 bps $3.5 6 $129.2 $156.5 1Q22 1Q23 $155.1 $174.4 1Q22 1Q23 1.06% 1.06% 1Q22 1Q23 13.0% 15.8% 1Q22 1Q23 é12.4% Pre-provision profit $s in millions é281 bps $452 $537 $1.07 $1.10 1Q22 1Q23 See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. é3% é19%

 
29 Stabilizing and protecting NII and NIM Cash flow hedges are the primary tool to manage interest rate exposure Receive fixed cash flow swaps - average notional balances $ billions at 3/31/23 ALM hedging update (1) Expressed on a 1-month Libor equivalent basis; expect to reclassify approximately $100 million per quarter from AOCI to NII in relation to terminated swaps through the end of 2025 W.A. receive fixed rate at 3/31/23(1) 3.2% 3.1% 3.2% 3.2% 2.8%4.3% Impact from amortization of terminated swaps ($MM) ($444) ($411) ($214) ($26) ($2)($341) Remaining 3 quarters ■ Continue to manage hedges to maintain significant protection to downside in rates well into 2026 ■ Asset sensitivity for 1Q23 is at a more neutral level compared to 4Q22 – ~1.1% positive impact to NII over the next 12 months with a gradual 200 basis point increase in rates above forward curve; ~2.6% negative impact assuming a gradual 200 basis point decrease

 
30 $80.9B Commercial credit portfolio See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. Commercial portfolio risk ratings(2) $s in billions 58% 64% 62% 25% 18% 17% 14% 14% 15% 3% 4% 6% 4Q19 4Q22 1Q23 B- and lower B+ to B BB+ to BB- AAA+ to BBB- $57.5 $80.9 Highlights $82.2($ in billions) Balances % of total CFG C&I Finance and Insurance Capital call facilities $ 6.5 4 % Other Finance and Insurance 5.8 4 Other Manufacturing 4.3 3 Technology 4.2 3 Accommodation and Food Services 3.4 2 Health, Pharma, Social Assistance 3.1 2 Professional, Scientific, and Technical 2.8 2 Wholesale Trade 2.8 2 Other Services 2.5 2 Retail Trade 2.3 1 Energy & Related 2.1 1 Rental and Leasing 1.6 1 Consumer Products Manufacturing 1.4 1 Administrative and Waste Management 1.7 1 Arts, Entertainment, and Recreation 1.6 1 Automotive 1.3 1 Other (1) 3.0 2 Total C&I $ 50.5 33 % CRE Multi-family $ 8.6 6 % Office 6.3 4 Retail 3.5 2 Industrial 3.6 2 Co-op 1.9 1 Data Center 0.8 1 Hospitality 0.7 — Other (1) 3.8 2 Total CRE $ 29.0 19 % Total Commercial loans & leases $ 80.9 52 % Total CFG $ 154.7 100 % Diverse and granular portfolio ■ Disciplined capital allocation and risk appetite – Highly experienced leadership team – Focused client selection ■ C&I portfolio has focused growth on larger, mid-corporate customers, thereby improving overall asset quality ■ Leveraged loans ~1.7% of total CFG loans, granular hold positions with an average outstanding of ~$12 million ■ CRE portfolio is well diversified across asset type, geography, and borrowers with the emphasis on strong sponsor selection

 
31 38% 41% 42% 33% 33% 32% 18% 17% 16% 5% 5% 5% 6% 4% 5% 4Q19 4Q22 1Q23 41% 19% 16% 4% 13% 7% $73.8B Retail credit portfolio See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. 800+ 740-799 680-739 640-679 <640 $61.6 $73.8 $s in billions Retail portfolio FICOs(2) $74.5 Home equity Retail loans(1) Residential mortgages Auto Education - in school Education - refinance Other retail ~94% of retail portfolio > 680 Super-prime/prime* ~76% of retail portfolio Secured ■ Mortgage – FICO ~785 – Weighted-average LTV of ~55% ■ Home equity – FICO ~765 – ~42% secured by 1st lien – ~97% CLTV less than 80% – ~87% CLTV less than 70% ■ Auto – FICO ~740 – Weighted-average LTV of ~82% ■ Education – FICO ~785 ■ Other retail: – Credit card – FICO ~735 – Citizens PayTM – FICO ~725; incorporates loss sharing High quality, diverse portfolio '* Super-prime/prime defined as FICO of 680 or above at origination

 
32 Delinquency by product type See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34. December 31, 2022 (%) March 31, 2023 (%) Days Past Due and Accruing Days Past Due and Accruing Current 30-59 60-89 90+ Nonaccrual Current 30-59 60-89 90+ Nonaccrual Commercial and industrial 99.14 % 0.29 % 0.05 % 0.04 % 0.48 % 99.12 % 0.24 % 0.01 % 0.04 % 0.59 % Commercial real estate 99.30 % 0.18 % 0.16 % — % 0.36 % 98.48 % 0.80 % 0.02 % 0.22 % 0.48 % Leases 99.73 % 0.27 % — % — % — % 99.93 % 0.07 % — % — % — % Total commercial 99.20 % 0.25 % 0.09 % 0.03 % 0.43 % 98.91 % 0.43 % 0.02 % 0.10 % 0.54 % Residential mortgages(1) 97.68 % 0.32 % 0.15 % 1.07 % 0.78 % 97.35 % 0.67 % 0.24 % 1.03 % 0.71 % Home equity 97.68 % 0.46 % 0.14 % — % 1.72 % 97.66 % 0.48 % 0.16 % — % 1.70 % Automobile 97.93 % 1.24 % 0.37 % — % 0.46 % 98.17 % 1.11 % 0.29 % — % 0.43 % Education 99.30 % 0.28 % 0.13 % 0.03 % 0.26 % 99.43 % 0.26 % 0.11 % 0.02 % 0.18 % Other retail 97.71 % 0.81 % 0.55 % 0.41 % 0.52 % 97.64 % 0.81 % 0.52 % 0.45 % 0.58 % Total retail 98.02 % 0.52 % 0.21 % 0.46 % 0.79 % 97.91 % 0.64 % 0.23 % 0.46 % 0.76 % Total 98.65 % 0.38 % 0.14 % 0.23 % 0.60 % 98.44 % 0.53 % 0.12 % 0.27 % 0.64 %

 
33 Allocation of allowance for credit losses by product type December 31, 2022 March 31, 2023 $s in millions Loans and Leases Allowance Coverage Loans and Leases Allowance Coverage Allowance for Loans and Lease Losses Commercial and industrial(1) $51,836 $581 1.12 % $50,450 $601 1.19 % Commercial real estate 28,865 456 1.58 28,999 486 1.67 Leases 1,479 23 1.59 1,417 24 1.72 Total commercial 82,180 1,060 1.29 80,866 1,111 1.37 Residential mortgages 29,921 207 0.69 30,362 207 0.68 Home equity 14,043 89 0.63 14,135 95 0.67 Automobile 12,292 131 1.07 11,535 121 1.05 Education 12,808 268 2.09 12,634 266 2.11 Other retail 5,418 228 4.21 5,156 217 4.22 Total retail loans 74,482 923 1.24 73,822 906 1.23 Total loans and leases $156,662 $1,983 1.27 $154,688 $2,017 1.30 Allowance for Unfunded Lending Commitments(2)* Commercial(1) $207 1.54 % $215 1.64 % Retail 50 1.31 43 1.29 Total allowance for unfunded lending commitments $257 $258 Allowance for credit losses(2) $156,662 $2,240 1.43 % $154,688 $2,275 1.47 % *Coverage ratios reflect total allowance for credit losses for the respective portfolio. See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 34.

 
34 Notable items(1) Quarterly results reflect notable items primarily related to integration costs associated with the acquisitions of HSBC, ISBC and JMP Group LLC, as well as TOP revenue and efficiency initiatives. First quarter 2022 results include a notable item representing the day-one CECL provision expense ("double count") related to the HSBC transaction. These notable items have been excluded from reported results to better reflect Underlying operating results. See pages 35-36 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described above. Notable items - integration related 1Q23 4Q22 1Q22 $s in millions, except per share data Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Noninterest income $ — $ — $ — $ — $ — $ — EPS Impact -Noninterest income $ — $ — $ — Salaries & benefits $ (7) $ (5) $ (13) $ (9) $ (4) $ (3) Outside services (25) (19) (15) (12) (28) (21) Equipment and software (3) (2) (1) (1) — — Occupancy (16) (12) — — — — Other expense (1) (1) (6) (4) (5) (3) Noninterest expense $ (52) $ (39) $ (35) $ (26) $ (37) $ (27) EPS Impact - Noninterest expense $ (0.08) $ (0.06) $ (0.07) HSBC Day 1 CECL provision expense (“double count”) $ — $ — $ — $ — $ (24) $ (18) EPS Impact - Provision for credit losses $ — $ — $ (0.04) Total Integration Costs $ (52) $ (39) $ (35) $ (26) $ (61) $ (45) EPS Impact - Total integration related $ (0.08) $ (0.06) $ (0.11) Other notable items - primarily tax and TOP 1Q23 4Q22 1Q22 $s in millions, except per share data Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Tax notable items $ — $ — $ — $ — $ — $ (3) Other notable items- TOP & other actions Salaries & benefits $ (9) $ (7) $ (2) $ (2) $ (2) $ (1) Outside services (2) (1) (2) (1) (7) (5) Equipment and software (1) (1) (1) — (2) (2) Occupancy (2) (1) (2) (2) — — Other expense — — (1) (1) — — Noninterest expense $ (14) $ (10) $ (8) $ (6) $ (11) $ (8) Total Other Notable Items $ (14) $ (10) $ (8) $ (6) $ (11) $ (11) EPS Impact - Other Notable Items $ (0.02) $ (0.01) $ (0.03) Total Notable Items $ (66) $ (49) $ (43) $ (32) $ (72) $ (56) Total EPS Impact $ (0.10) $ (0.07) $ (0.14)

 
35 Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results and excluding HSBC and ISBC. Where there is a reference to Underlying results in a paragraph or table, all measures that follow these references are on the same basis, when applicable. Allowance coverage ratios for loans and leases includes the allowance for funded loans and leases in the numerator and funded loans and leases in the denominator. Allowance coverage ratios for credit losses includes the allowance for funded loans and leases and allowance for unfunded lending commitments in the numerator and funded loans and leases in the denominator. General Notes a. References to net interest margin are on a fully taxable equivalent ("FTE") basis. b. Throughout this presentation, references to consolidated and/or commercial loans and loan growth include leases. Loans held for sale are also referred to as LHFS. c. Select totals may not sum due to rounding. d. Based on Basel III standardized approach. Capital Ratios are preliminary. e. Throughout this presentation, reference to balance sheet items are on an average basis and loans exclude held for sale unless otherwise noted. Notes Notes on slide 3 - 1Q23 GAAP financial summary 1) See general note a). 2) Full-time equivalent employees. Notes on slide 4 - 1Q23 Underlying financial summary 1) See note on non-GAAP financial measures. Notes on slide 5 - Overview 1) See note on non-GAAP financial measures. 2) See general note d). 3) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries Notes on slide 6 - Current areas of interest in the banking industry 1) See general note d). 2) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries Notes on slide 7 - Strong capital position 1) Peer data sourced from 4Q company disclosures 2) See general note d). 3) Any DTA impact on risk-weighted assets has been excluded Notes on slide 8 - Highly diversified and retail-oriented deposit base 1) Estimated based on available company disclosures 2) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries Notes on slide 11 - Commercial Real Estate sector concerns 1) See general note c). Notes on slide 14 - Noninterest income 1) See above note on non-GAAP financial measures. 2) Includes bank-owned life insurance income and other miscellaneous income for all periods presented. Notes on slide 15 - Noninterest expense 1) See above note on non-GAAP financial measures. Notes on slide 16 - Loans and leases 1) See above note on non-GAAP financial measures. 2) See general note c). Notes on slide 17 - Average funding and cost of funds 1) See note on non-GAAP financial measures. Notes on slide 18 - Credit quality overview 1) See note on non-GAAP financial measures. 2) Allowance for credit losses to nonperforming loans and leases.

 
36 Notes continued Notes on slide 20 - Capital remains strong 1) See general note d). 2) For regulatory capital purposes, we have elected to delay the estimated impact of CECL on regulatory capital for a two-year period ended December 31,2021, followed by a three-year transition period ending December 31, 2024. As of December 31, 2021, the modified CECL transition amount was $384 million and is being transitioned out of regulatory capital over a three-year period. 3) See general note c). Notes on slide 21 - Entry into New York Metro progressing well 1) Top 10 market share in the NY MSA based on FDIC data as of June 30, 2022; branch deposits capped at $500 million 2) Branch originated sales only; Investors pre CD1 checking sales sourced from internal Investors reporting 3) New accounts reflect total checking Branch originations for 1Q23 and compare HSBC/ISBC volume per branch vs Legacy branches 4) Deposit Balances reflect average monthly balance as of Feb23 vs Mar22 for HSBC portfolio only (acquired and new) vs Legacy Notes on slide 23 - 2Q23 outlook vs. 1Q23 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 24 - Updates to FY2023 outlook vs. 2022 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 25 - Navigating well through a dynamic environment 1) See general note d). Notes on slide 27 - Linked-quarter Underlying results 1) See note on non-GAAP financial measures. Notes on slide 28 - Year-over-year Underlying results 1) See note on non-GAAP financial measures. Notes on slide 30 - Commercial credit portfolio 1) Includes deferred fees and costs. 2) Reflects period end balances. Notes on slide 31 - Retail credit portfolio 1) See general note c). 2) Reflects period-end loan balances. Notes on slide 32 - Delinquency by product 1) 90+ days past due and accruing includes $309 million and $316 million of loans fully or partially guaranteed by the FHA, VA, and USDA at March 31, 2023 and December 31, 2022, respectively. Notes on slide 33 - Allocation of allowance for credit losses by product type 1) Coverage ratio includes total commercial allowance for unfunded lending commitments and total commercial allowance for loan and lease losses in the numerator and total commercial loans and leases in the denominator. 2) Coverage ratio includes total retail allowance for unfunded lending commitments and total retail allowance for loan losses in the numerator and total retail loans in the denominator. Notes on slide 34 - Notable items 1) See note on non-GAAP financial measures.

 
37 Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 1Q23 Change 1Q23 4Q22 1Q22 4Q22 1Q22 2022 $ % $ % Noninterest income, Underlying: Noninterest income (GAAP) A $485 $505 $498 ($20) (4%) ($13) (3%) $2,009 Less: Notable items — — — — — — — (31) Noninterest income, Underlying (non-GAAP) B $485 $505 $498 ($20) (4%) ($13) (3%) $2,040 Total revenue, Underlying: Total revenue (GAAP) C $2,128 $2,200 $1,645 ($72) (3%) $483 29% $8,021 Less: Notable items — — — — — — — (31) Total revenue, Underlying (non-GAAP) D $2,128 $2,200 $1,645 ($72) (3%) $483 29% $8,052 Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,296 $1,240 $1,106 $56 5% $190 17% $4,892 Less: Notable items 66 43 48 23 53 18 38 262 Noninterest expense, Underlying (non-GAAP) F $1,230 $1,197 $1,058 $33 3% $172 16% $4,630 Pre-provision profit: Total revenue (GAAP) C $2,128 $2,200 $1,645 ($72) (3%) $483 29% $8,021 Less: Noninterest expense (GAAP) E 1,296 1,240 1,106 56 5 190 17 4,892 Pre-provision profit (GAAP) $832 $960 $539 ($128) (13%) $293 54% $3,129 Pre-provision profit, Underlying: Total revenue, Underlying (non-GAAP) D $2,128 $2,200 $1,645 ($72) (3%) $483 29% $8,052 Less: Noninterest expense, Underlying (non-GAAP) F 1,230 1,197 1,058 33 3 172 16 4,630 Pre-provision profit, Underlying (non-GAAP) $898 $1,003 $587 ($105) (10%) $311 53% $3,422 Provision (benefit) for credit losses, Underlying: Provision (benefit) for credit losses (GAAP) $168 $132 $3 $36 27% $165 NM $474 Less: Notable items — — 24 — — (24) (100) 169 Provision (benefit) for credit losses, Underlying (non-GAAP) $168 $132 ($21) $36 27% $189 NM $305 Income before income tax expense, Underlying: Income before income tax expense (GAAP) G $664 $828 $536 ($164) (20%) $128 24% $2,655 Less: Expense before income tax benefit related to notable items (66) (43) (72) (23) (53) 6 8 (462) Income before income tax expense, Underlying (non-GAAP) H $730 $871 $608 ($141) (16%) $122 20% $3,117 Income tax expense, Underlying: Income tax expense (GAAP) I $153 $175 $116 ($22) (13%) $37 32% $582 Less: Income tax benefit related to notable items (17) (11) (16) (6) (55) (1) (6) (110) Income tax expense, Underlying (non-GAAP) J $170 $186 $132 ($16) (9%) $38 29% $692 Net income, Underlying: Net income (GAAP) K $511 $653 $420 ($142) (22%) $91 22% $2,073 Add: Notable items, net of income tax benefit 49 32 56 17 53 (7) (13) 352 Net income, Underlying (non-GAAP) L $560 $685 $476 ($125) (18%) $84 18% $2,425 Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) M $488 $621 $396 ($133) (21%) $92 23% $1,960 Add: Notable items, net of income tax benefit 49 32 56 17 53 (7) (13) 352 Net income available to common stockholders, Underlying (non-GAAP) N $537 $653 $452 ($116) (18%) $85 19% $2,312

 
38 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS 1Q23 Change 1Q23 4Q22 1Q22 4Q22 1Q22 $/bps % $/bps % Operating leverage: Total revenue (GAAP) C $2,128 $2,200 $1,645 ($72) (3.28%) $483 29.39% Less: Noninterest expense (GAAP) E 1,296 1,240 1,106 56 4.53 190 17.22 Operating leverage (7.81%) 12.17% Operating leverage, Underlying: Total revenue, Underlying (non-GAAP) D $2,128 $2,200 $1,645 ($72) (3.27%) $483 29.39% Less: Noninterest expense, Underlying (non-GAAP) F 1,230 1,197 1,058 33 2.80 172 16.43 Operating leverage, Underlying (non-GAAP) (6.07%) 12.96% Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 60.90 % 56.36% 67.23 % 454 bps (633) bps Efficiency ratio, Underlying (non-GAAP) F/D 57.84 54.42 64.28 342 bps (644) bps Noninterest income as a % of total revenue, Underlying: Noninterest income as a % of total revenue A/C 23 % 23% 30 % (11) bps (745) bps Noninterest income as a % of total revenue, Underlying B/D 23 23 30 (11) bps (745) bpsEffective income tax rate and effective income tax rate, Underlying: Effective income tax rate I/G 22.97% 21.16% 21.70 % 181 bps 127 bps Effective income tax rate, Underlying (non-GAAP) J/H 23.25 21.37 21.70 188 bps 155 bps Return on average common equity and return on average common equity, Underlying: Average common equity (GAAP) O $21,702 $21,276 $20,981 $426 2% $721 3% Return on average common equity M/O 9.11 % 11.56% 7.65 % (245) bps 146 bps Return on average common equity, Underlying (non-GAAP) N/O 10.01 12.15 8.75 (214) bps 126 bps Return on average tangible common equity and return on average tangible common equity, Underlying: Average common equity (GAAP) O $21,702 $21,276 $20,981 $426 2% $721 3% Less: Average goodwill (GAAP) 8,177 8,171 7,156 6 — 1,021 14 Less: Average other intangibles (GAAP) 192 199 80 (7) (4) 112 140 Add: Average deferred tax liabilities related to goodwill (GAAP) 422 424 383 (2) — 39 10 Average tangible common equity P $13,755 $13,330 $14,128 $425 3% ($373) (3%) Return on average tangible common equity M/P 14.38 % 18.46% 11.36 % (408) bps 302 bps Return on average tangible common equity, Underlying (non-GAAP) N/P 15.80 19.40 12.99 (360) bps 281 bps Return on average total assets and return on average total assets, Underlying: Average total assets (GAAP) Q $222,711 $224,970 $188,317 ($2,259) (1%) $34,394 18% Return on average total assets K/Q 0.93 % 1.15% 0.90 % (22) bps 3 bps Return on average total assets, Underlying (non-GAAP) L/Q 1.02 1.21 1.03 (19) bps (1) bps $s in millions, except share, per share and ratio data

 
39 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS 1Q23 Change 1Q23 4Q22 1Q22 4Q22 1Q22 $/bps % $/bps % Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) Q $222,711 $224,970 $188,317 ($2,259) (1%) $34,394 18% Less: Average goodwill (GAAP) 8,177 8,171 7,156 6 — 1,021 14 Less: Average other intangibles (GAAP) 192 199 80 (7) (4) 112 140 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 422 424 383 (2) — 39 10 Average tangible assets R $214,764 $217,024 $181,464 ($2,260) (1%) $33,300 18% Return on average total tangible assets K/R 0.97 % 1.19% 0.94 % (22) bps 3 bps Return on average total tangible assets, Underlying (non-GAAP) L/R 1.06 1.25 1.06 (19) bps — bps Tangible book value per common share: Common shares - at period-end (GAAP) S 483,982,264 492,282,158 423,031,985 (8,299,894) (2%) 60,950,279 14% Common stockholders' equity (GAAP) $22,187 $21,676 $20,060 $511 2 $2,127 11 Less: Goodwill (GAAP) 8,177 8,173 7,232 4 — 945 13 Less: Other intangible assets (GAAP) 185 197 115 (12) (6) 70 61 Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) 422 422 387 — — 35 9 Tangible common equity T $14,247 $13,728 $13,100 $519 4% $1,147 9% Tangible book value per common share T/S $29.44 $27.88 $30.97 $1.56 6% ($1.53) (5%) 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 485,444,313 493,293,981 422,401,747 (7,849,668) (2%) 63,042,566 15% Average common shares outstanding - diluted (GAAP) V 487,712,146 495,478,398 424,670,871 (7,766,252) (2) 63,041,275 15 Net income per average common share - basic (GAAP) M/U $1.00 $1.26 $0.94 ($0.26) (21) $0.06 6 Net income per average common share - diluted (GAAP) M/V 1.00 1.25 0.93 (0.25) (20) 0.07 8 Net income per average common share - basic, Underlying (non-GAAP) N/U 1.10 1.32 1.07 (0.22) (17) 0.03 3 Net income per average common share - diluted, Underlying (non-GAAP) N/V 1.10 1.32 1.07 (0.22) (17) 0.03 3 Dividend payout ratio and dividend payout ratio, Underlying: Cash dividends declared and paid per common share W $0.42 $0.42 $0.39 $— —% $0.03 8% Dividend payout ratio W/(M/U) 42 % 33 % 41 % 900 bps 100 bps Dividend payout ratio, Underlying (non-GAAP) W/(N/U) 38 32 36 600 bps 200 bps $s in millions, except share, per share and ratio data

 
40 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS 1Q23 Change 1Q23 4Q22 1Q22 4Q22 1Q22 $/bps % $/bps % Salaries and employee benefits, Underlying: Salaries and employee benefits (GAAP) $658 $633 $594 $25 4% $64 11% Less: Notable items 16 15 6 1 7 10 167 Salaries and employee benefits, Underlying (non-GAAP) $642 $618 $588 $24 4% $54 9% Outside services, Underlying: Outside services (GAAP) $176 $170 $169 $6 4% $7 4% Less: Notable items 27 17 35 10 59 (8) (23) Outside services, Underlying (non-GAAP) $149 $153 $134 ($4) (3%) $15 11% Equipment and software, Underlying: Equipment and software (GAAP) $169 $170 $150 ($1) (1%) $19 13% Less: Notable items 4 2 2 2 100 2 100 Equipment and software, Underlying (non-GAAP) $165 $168 $148 ($3) (2%) $17 11% Occupancy, Underlying: Occupancy (GAAP) $124 $110 $83 $14 13% $41 49% Less: Notable items 18 2 — 16 NM 18 100 Occupancy, Underlying (non-GAAP) $106 $108 $83 ($2) (2%) $23 28% Other operating expense, Underlying: Other operating expense (GAAP) $169 $157 $110 $12 8% $59 54% Less: Notable items 1 7 5 (6) (86) (4) (80) Other operating expense, Underlying (non-GAAP) $168 $150 $105 $18 12% $63 60% $s in millions, except share, per share and ratio data

 
41 Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 3Q22 2Q22 Noninterest income, Underlying: Noninterest income (GAAP) A $512 $494 Less: Notable items — (31) Noninterest income, Underlying (non-GAAP) $512 $525 Total revenue, Underlying: B Total revenue (GAAP) C $2,177 $1,999 Less: Notable items — (31) Total revenue, Underlying (non-GAAP) D $2,177 $2,030 Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,241 $1,305 Less: Notable items 46 125 Noninterest expense, Underlying (non-GAAP) F $1,195 $1,180 Provision (benefit) for credit losses, Underlying: Provision (benefit) for credit losses (GAAP) $123 $216 Less: Notable items — 145 Provision (benefit) for credit losses, Underlying (non-GAAP) $123 $71 Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 57.02 % 65.27% Efficiency ratio, Underlying (non-GAAP) F/D 54.90 58.16

 
42 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS 1Q23 Change 1Q23 4Q22 4Q22 $/bps % CET1 Ratio Adjusted for AFS & HTM unrealized losses CET1 capital $ 18,370 $ 18,574 $ (204) (1) % Less: AFS securities - AOCI 1,516 1,840 (324) (18) % Less: HTM securities - AOCI 907 931 (24) (3) % CET1 capital adjusted for AFS & HTM AOCI A $15,947 $15,803 $144 1 % Risk-weighted assets B 183,246 185,224 (1,978) (1) % Less: HTM securities - AOCI 161 165 (4) (2) % Less: AFS securities - AOCI 267 308 (41) (13) % Adjusted risk-weighted assets C $182,818 $184,751 (1,933) (1) % CET1 capital ratio adjusted for AFS & HTM AOCI A/C 8.7 % 8.5 % 0.2 % 2 % TCE Ratio Adjusted for HTM marks Tangible common equity $14,247 $13,728 $519 4 % Add: HTM unrealized loss, after-tax 458 590 (132) (22) % Tangible common equity including HTM marks D $13,789 $13,138 $651 5 % Tangible assets 214,316 218,785 (4,469) (2) % Add: HTM unrealized loss, pre-tax 613 792 (179) (23) % Adjusted Tangible assets E 213,703 217,993 (4,290) (2) % TCE Ratio Including HTM Marks D/E 6.4 % 6.0 % 0.4 % 7 % $s in millions, except share, per share and ratio data

 
43 Non-GAAP financial measures and reconciliations - excluding the impact of HSBC & ISBC Acquisitions QUARTERLY TRENDS 1Q23 Change 1Q23 4Q22 1Q22 4Q22 1Q22 $/bps % $/bps % Noninterest expense, Underlying excluding HSBC & ISBC: Noninterest expense (GAAP) A $1,296 $1,240 $1,106 $56 5% $190 17% Less: Notable items 66 43 48 23 53 18 38 Less: HSBC & ISBC Acquisition Impact 125 129 13 (4) (3) 112 NM Total Noninterest expense, Underlying excluding HSBC & ISBC (non-GAAP) B $1,105 $1,068 $1,045 $37 3% $60 6% Total Loans, excluding HSBC & ISBC Total Loans (GAAP) C $154,688 $156,662 $131,305 ($1,974) (1%) $23,383 18% Less: HSBC & ISBC Acquisition Impact 19,995 20,420 1,443 (425) (2) 18,552 NM Total Loans, excluding HSBC & ISBC (non-GAAP) D $134,693 $136,242 $129,862 ($1,549) (1%) $4,831 4% Total Commercial Loans, excluding HSBC & ISBC Total Commercial Loans (GAAP) E $80,866 $82,180 $61,521 ($1,314) (2%) $19,345 31% Less: HSBC & ISBC Acquisition Impact 14,770 15,093 33 (323) (2) 14,737 NM Total Commercial Loans, excluding HSBC & ISBC (non-GAAP) F $66,096 $67,087 $61,488 ($991) (1%) $4,608 7% Total Retail Loans, excluding HSBC & ISBC Total Retail Loans (GAAP) G $73,822 $74,482 $69,784 ($660) (1%) $4,038 6% Less: HSBC & ISBC Acquisition Impact 5,225 5,327 1,410 (102) (2) 3,815 NM Total Retail Loans, excluding HSBC & ISBC (non-GAAP) H $68,597 $69,155 $68,374 ($558) (1%) $223 —% Total Average Loans, excluding HSBC & ISBC Average Loans (GAAP) I $156,492 $157,099 $129,154 ($607) —% $27,338 21% Less: HSBC & ISBC Acquisition Impact 20,204 20,804 680 (600) (3) 19,524 NM Total Average Loans, excluding HSBC & ISBC (non-GAAP) J $136,288 $136,295 $128,474 ($7) —% $7,814 6% Average Commercial Loans, excluding HSBC & ISBC Average Commercial Loans (GAAP) K $82,321 $82,468 $60,573 ($147) —% $21,748 36% Less: HSBC & ISBC Acquisition Impact 14,930 15,518 16 (588) (4) 14,914 NM Average Commercial Loans, excluding HSBC & ISBC (non-GAAP) L $67,391 $66,950 $60,557 $441 1% $6,834 11% Average Retail Loans, excluding HSBC & ISBC Average Retail Loans (GAAP) M $74,171 $74,631 $68,581 ($460) (1%) $5,590 8% Less: HSBC & ISBC Acquisition Impact 5,274 5,286 665 (12) — 4,609 NM Average Retail Loans, excluding HSBC & ISBC (non-GAAP) N $68,897 $69,345 $67,916 ($448) (1%) $981 1% $s in millions, except ratio data

 

 
















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Financial Supplement

First Quarter 2023





















1

Table of ContentsPage
Credit-Related Information:
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
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
SELECTED OPERATING DATA
Total revenue$2,128 $2,200 $2,177 $1,999 $1,645 ($72)(3 %)$483 29 %
Noninterest expense1,296 1,240 1,241 1,305 1,106 56 5 190 17 
Profit before provision (benefit) for credit losses832 960 936 694 539 (128)(13)293 54 
Provision (benefit) for credit losses168 132 123 216 3 36 27 165 NM
NET INCOME511 653 636 364 420 (142)(22)91 22 
Net income, Underlying1
560 685 669 595 476 (125)(18)84 18 
Net income available to common stockholders488 621 611 332 396 (133)(21)92 23 
Net income available to common stockholders, Underlying1
537 653 644 563 452 (116)(18)85 19 
PER COMMON SHARE DATA
Basic earnings$1.00 $1.26 $1.23 $0.68 $0.94 ($0.26)(21 %)$0.06 6 %
Diluted earnings1.00 1.25 1.23 0.67 0.93 (0.25)(20)0.07 8 
Basic earnings, Underlying1
1.10 1.32 1.30 1.14 1.07 (0.22)(17)0.03 3 
Diluted earnings, Underlying1
1.10 1.32 1.30 1.14 1.07 (0.22)(17)0.03 3 
Cash dividends declared and paid per common share 0.42 0.42 0.42 0.39 0.39 — — 0.03 8 
Book value per common share45.84 44.03 42.62 45.02 47.42 1.81 4 (1.58)(3)
Tangible book value per common share29.44 27.88 26.62 29.14 30.97 1.56 6 (1.53)(5)
Dividend payout ratio42 %33 %34 %57 %41 %900  bps100  bps
Dividend payout ratio, Underlying1
38 32 32 34 36 600  bps200  bps
COMMON SHARES OUTSTANDING
Average: Basic485,444,313 493,293,981 495,651,083 491,497,026 422,401,747 (7,849,668)(2 %)63,042,566 15 %
   Diluted487,712,146 495,478,398 497,477,501 493,296,114 424,670,871 (7,766,252)(2)63,041,275 15 
Common shares at period-end483,982,264 492,282,158 495,843,793 495,650,259 423,031,985 (8,299,894)(2)60,950,279 14 
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
(in millions, except ratio and headcount data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
FINANCIAL RATIOS
Net interest margin3.29 %3.29 %3.24 %3.04 %2.75 %—  bps54  bps
Net interest margin, FTE1
3.30 3.30 3.25 3.04 2.75 — 55 
Return on average common equity9.11 11.56 10.91 5.95 7.65 (245)146 
Return on average common equity, Underlying2
10.01 12.15 11.52 10.06 8.75 (214)126 
Return on average tangible common equity14.38 18.46 16.96 9.13 11.36 (408)302 
Return on average tangible common equity, Underlying2
15.80 19.40 17.91 15.45 12.99 (360)281 
Return on average total assets0.93 1.15 1.12 0.66 0.90 (22)3 
Return on average total assets, Underlying2
1.02 1.21 1.18 1.08 1.03 (19)(1)
Return on average total tangible assets0.97 1.19 1.16 0.69 0.94 (22)3 
Return on average total tangible assets, Underlying2
1.06 1.25 1.22 1.12 1.06 (19)— 
Effective income tax rate22.97 21.16 21.80 23.77 21.70 181 127 
Effective income tax rate, Underlying2
23.25 21.37 22.00 23.69 21.70 188 155 
Efficiency ratio60.90 56.36 57.02 65.27 67.23 454 (633)
Efficiency ratio, Underlying2
57.84 54.42 54.90 58.16 64.28 342 (644)
Noninterest income as a % of total revenue22.81 22.92 23.54 24.72 30.26 (11)(745)
Noninterest income as a % of total revenue, Underlying2
22.81 22.92 23.54 25.88 30.26 (11)(745)
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio10.0 %10.0 %9.8 %9.6 %9.7 %
Tier 1 capital ratio11.1 11.1 10.9 10.6 10.9 
Total capital ratio12.9 12.8 12.6 12.3 12.5 
Tier 1 leverage ratio9.4 9.3 9.2 9.3 9.6 
Tangible common equity ratio6.6 6.3 6.1 6.6 7.1 
SELECTED BALANCE SHEET DATA
Loan-to-deposit ratio (period-end balances)89.83 %86.69 %87.44 %87.28 %82.70 %314  bps713  bps
Loan-to-deposit ratio (average balances)89.76 87.74 88.32 87.24 83.28 202  bps648  bps
Full-time equivalent colleagues (period-end)18,547 18,889 19,235 19,583 17,843 (342)(2)704 4 
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)
(in millions)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$%$%
INTEREST INCOME
Interest and fees on loans and leases$2,047 $1,893 $1,657 $1,370 $1,048 $154 8 %$999 95 %
Interest and fees on loans held for sale15 16 18 17 16 (1)(6)(1)(6)
Interest and fees on other loans held for sale5 10 15 25 7 (5)(50)(2)(29)
Investment securities266 258 243 201 138 8 3 128 93 
Interest-bearing deposits in banks69 75 36 13 4 (6)(8)65 NM
Total interest income2,402 2,252 1,969 1,626 1,213 150 7 1,189 98 
INTEREST EXPENSE
Deposits550 396 176 54 25 154 39 525 NM
Short-term borrowed funds6 2 11 10 — 4 200 6 100 
Long-term borrowed funds203 159 117 57 41 44 28 162 NM
Total interest expense759 557 304 121 66 202 36 693 NM
Net interest income1,643 1,695 1,665 1,505 1,147 (52)(3)496 43 
NONINTEREST INCOME
Service charges and fees100 105 109 108 98 (5)(5)2 2 
Capital markets fees83 98 89 88 93 (15)(15)(10)(11)
Card fees72 71 71 71 60 1 1 12 20 
Mortgage banking fees57 54 66 72 69 3 6 (12)(17)
Trust and investment services fees63 61 61 66 61 2 3 2 3 
Foreign exchange and derivative products48 35 42 60 51 13 37 (3)(6)
Letter of credit and loan fees40 41 40 40 38 (1)(2)2 5 
Securities gains, net5 4 — 1 4 1 25 1 25 
Other income17 36 34 (12)24 (19)(53)(7)(29)
Total noninterest income485 505 512 494 498 (20)(4)(13)(3)
TOTAL REVENUE2,128 2,200 2,177 1,999 1,645 (72)(3)483 29 
Provision (benefit) for credit losses168 132 123 216 3 36 27 165 NM
NONINTEREST EXPENSE
Salaries and employee benefits658 633 639 683 594 25 4 64 11 
Outside services176 170 172 189 169 6 4 7 4 
Equipment and software 169 170 159 169 150 (1)(1)19 13 
Occupancy124 110 106 111 83 14 13 41 49 
Other operating expense169 157 165 153 110 12 8 59 54 
Total noninterest expense1,296 1,240 1,241 1,305 1,106 56 5 190 17 
Income before income tax expense664 828 813 478 536 (164)(20)128 24 
Income tax expense153 175 177 114 116 (22)(13)37 32 
Net income$511 $653 $636 $364 $420 ($142)(22 %)$91 22 %
Net income, Underlying1
$560 $685 $669 $595 $476 ($125)(18 %)$84 18 %
Net income available to common stockholders$488 $621 $611 $332 $396 ($133)(21 %)$92 23 %
Net income available to common stockholders, Underlying1
$537 $653 $644 $563 $452 ($116)(18 %)$85 19 %
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)
(in millions)
PERIOD-END BALANCESAS OFMARCH 31, 2023 CHANGE
Mar 31, 2023Dec 31, 2022Sept 30, 2022June 30, 2022Mar 31, 2022December 31, 2022March 31, 2022
$%$%
ASSETS
Cash and due from banks$1,283 $1,489 $1,235 $1,456 $1,223 ($206)(14 %)$60 5 %
Interest-bearing cash and due from banks6,691 9,058 6,925 5,058 8,713 (2,367)(26)(2,022)(23)
Interest-bearing deposits in banks320 303 261 469 685 17 6 (365)(53)
Debt securities available for sale, at fair value23,845 24,007 23,478 24,961 25,319 (162)(1)(1,474)(6)
Debt securities held to maturity9,677 9,834 10,071 9,567 2,056 (157)(2)7,621 NM
Loans held for sale, at fair value855 774 1,048 1,377 1,717 81 10 (862)(50)
Other loans held for sale1,000 208 914 2,078 99 792 NM901 NM
Loans and leases154,688 156,662 156,140 156,172 131,305 (1,974)(1)23,383 18 
Less: Allowance for loan and lease losses(2,017)(1,983)(1,980)(1,964)(1,720)(34)2 (297)17 
Net loans and leases152,671 154,679 154,160 154,208 129,585 (2,008)(1)23,086 18 
Derivative assets569 842 1,352 1,669 1,675 (273)(32)(1,106)(66)
Premises and equipment866 844 827 885 793 22 3 73 9 
Bank-owned life insurance3,244 3,236 3,222 3,207 2,960 8 — 284 10 
Goodwill8,177 8,173 8,160 8,081 7,232 4 — 945 13 
Other intangible assets185 197 199 211 115 (12)(6)70 61 
Other assets12,873 13,089 12,832 13,485 9,925 (216)(2)2,948 30 
TOTAL ASSETS$222,256 $226,733 $224,684 $226,712 $192,097 ($4,477)(2 %)$30,159 16 %
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing$44,326 $49,283 $51,888 $54,169 $50,113 ($4,957)(10 %)($5,787)(12 %)
Interest-bearing127,868 131,441 126,678 124,756 108,663 (3,573)(3)19,205 18 
Total deposits172,194 180,724 178,566 178,925 158,776 (8,530)(5)13,418 8 
Short-term borrowed funds1,018 3 263 3,763 25 1,015 NM993 NM
Derivative liabilities1,704 1,909 2,227 1,004 635 (205)(11)1,069 168 
Long-term borrowed funds:
FHLB advances11,779 8,519 9,519 8,269 20 3,260 38 11,759 NM
Senior debt5,263 5,555 4,954 4,176 4,290 (292)(5)973 23 
Subordinated debt and other debt1,813 1,813 1,813 1,995 1,584 — — 229 14 
Total long-term borrowed funds18,855 15,887 16,286 14,440 5,894 2,968 19 12,961 220 
Other liabilities4,284 4,520 4,196 4,252 4,693 (236)(5)(409)(9)
TOTAL LIABILITIES198,055 203,043 201,538 202,384 170,023 (4,988)(2)28,032 16 
STOCKHOLDERS' EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented2,014 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 presented6 6 6 6 6 — — — — 
Additional paid-in capital22,183 22,142 22,121 22,100 19,021 41 — 3,162 17 
Retained earnings9,416 9,159 8,748 8,346 8,209 257 3 1,207 15 
Treasury stock, at cost(5,475)(5,071)(4,920)(4,920)(4,918)(404)(8)(557)(11)
Accumulated other comprehensive income (loss)(3,943)(4,560)(4,823)(3,218)(2,258)617 14 (1,685)(75)
TOTAL STOCKHOLDERS' EQUITY24,201 23,690 23,146 24,328 22,074 511 2 2,127 10 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$222,256 $226,733 $224,684 $226,712 $192,097 ($4,477)(2 %)$30,159 16 %
Memo: Total tangible common equity$14,247 $13,728 $13,197 $14,444 $13,100 $519 4 %$1,147 9 %

6

LOANS AND DEPOSITS
(in millions)
PERIOD-END BALANCESAS OFMARCH 31, 2023 CHANGE
Mar 31, 2023Dec 31, 2022Sept 30, 2022June 30, 2022Mar 31, 2022Dec 31, 2022March 31, 2022
$%$%
LOANS AND LEASES
Commercial and industrial$50,450 $51,836 $50,989 $51,801 $45,724 ($1,386)(3 %)$4,726 10 %
Commercial real estate28,999 28,865 28,681 28,070 14,268 134 — 14,731 103 
Leases1,417 1,479 1,444 1,574 1,529 (62)(4)(112)(7)
Total commercial80,866 82,180 81,114 81,445 61,521 (1,314)(2)19,345 31 
Residential mortgages30,362 29,921 29,548 29,088 24,211 441 1 6,151 25 
Home equity14,135 14,043 13,684 13,122 12,264 92 1 1,871 15 
Automobile11,535 12,292 13,155 13,868 14,439 (757)(6)(2,904)(20)
Education12,634 12,808 13,094 13,141 13,306 (174)(1)(672)(5)
Other retail5,156 5,418 5,545 5,508 5,564 (262)(5)(408)(7)
Total retail73,822 74,482 75,026 74,727 69,784 (660)(1)4,038 6 
Total loans and leases$154,688 $156,662$156,140$156,172$131,305($1,974)(1 %)$23,383 18 %
Loans held for sale, at fair value855 774 1,048 1,377 1,717 81 10 (862)(50)
Other loans held for sale1,000 208 914 2,078 99 792 NM901 NM
Loans and leases and loans held for sale$156,543 $157,644 $158,102 $159,627 $133,121 ($1,101)(1 %)$23,422 18 %
DEPOSITS
Demand$44,326 $49,283 $51,888 $54,169 $50,113 ($4,957)(10 %)($5,787)(12 %)
Money market48,905 49,905 49,081 48,063 45,342 (1,000)(2)3,563 8 
Checking with interest34,496 39,721 38,040 39,611 32,417 (5,225)(13)2,079 6 
Savings29,789 29,805 29,882 27,959 26,104 (16)— 3,685 14 
Term14,678 12,010 9,675 9,123 4,800 2,668 22 9,878 206 
Total deposits$172,194 $180,724 $178,566 $178,925 $158,776 ($8,530)(5 %)$13,418 8 %


7

AVERAGE BALANCE SHEETS, ANNUALIZED YIELDS AND RATES
(in millions, except rates)
QUARTERLY TRENDS1Q23 Change
1Q234Q221Q224Q221Q22
Average BalancesInterestRateAverage BalancesInterestRateAverage BalancesInterestRateAverage BalancesInterestRateAverage BalancesInterestRate
INTEREST-EARNING ASSETS
Interest-bearing cash and due from banks and deposits in banks$5,899 $69 4.65 %$6,915 $75 4.22 %$8,055 $4 0.21 %($1,016)($6)43 bps($2,156)$65 444 bps
Taxable investment securities38,953 266 2.74 38,770 258 2.66 29,245 138 1.88 183 8 89,708 128 86
Non-taxable investment securities2 — 2.68 2 — 2.39 2 — 2.60 — — 29— — 8
Total investment securities38,955 266 2.74 38,772 258 2.66 29,247 138 1.88 183 8 89,708 128 86
Commercial and industrial51,993 735 5.66 52,311 652 4.89 44,947 328 2.91 (318)83 777,046 407 275
Commercial real estate28,892 416 5.75 28,735 382 5.19 14,066 90 2.57 157 34 5614,826 326 318
Leases1,436 12 3.33 1,422 12 3.25 1,560 11 2.81 14 — 8(124)1 52
Total commercial82,321 1,163 5.65 82,468 1,046 4.97 60,573 429 2.83 (147)117 6821,748 734 282
Residential mortgages30,075 250 3.33 29,677 246 3.32 23,461 169 2.88 398 4 16,614 81 45
Home equity14,073 240 6.92 13,869 204 5.84 12,124 90 3.02 204 36 1081,949 150 390
Automobile11,937 119 4.04 12,692 125 3.90 14,534 127 3.55 (755)(6)14(2,597)(8)49
Education12,796 154 4.88 12,929 148 4.54 13,034 131 4.07 (133)6 34(238)23 81
Other retail5,290 121 9.25 5,464 124 9.02 5,428 102 7.63 (174)(3)23(138)19 162
Total retail74,171 884 4.81 74,631 847 4.52 68,581 619 3.65 (460)37 295,590 265 116
Total loans and leases156,492 2,047 5.25 157,099 1,893 4.75 129,154 1,048 3.26 (607)154 5027,338 999 199
Loans held for sale, at fair value1,009 15 5.87 1,179 16 5.32 2,366 16 2.70 (170)(1)55(1,357)(1)317
Other loans held for sale197 5 9.98 557 10 6.70 454 7 5.89 (360)(5)328(257)(2)409
Total interest-earning assets202,552 2,402 4.76 204,522 2,252 4.35 169,276 1,213 2.88 (1,970)150 4133,276 1,189 188
Noninterest-earning assets20,159 20,448 19,041 (289)1,118 
TOTAL ASSETS$222,711 $224,970 $188,317 ($2,259)$34,394 
INTEREST-BEARING LIABILITIES
Checking with interest$35,974 97 1.09 $36,952 77 0.82 $30,417 5 0.07 ($978)20 27$5,557 $92 102
Money market49,942 287 2.33 50,228 208 1.65 47,220 12 0.10 (286)79 682,722 275 223
Regular savings29,460 79 1.09 29,780 58 0.78 23,835 5 0.08 (320)21 315,625 74 101
Term12,839 87 2.72 11,378 53 1.83 4,970 3 0.29 1,461 34 897,869 84 243
Total interest-bearing deposits128,215 550 1.74 128,338 396 1.23 106,442 25 0.10 (123)154 5121,773 525 164
Short-term borrowed funds542 6 4.97 262 2 3.83 29 — 3.50 280 4 114513 6 147
FHLB advances10,362 121 4.68 8,818 82 3.67 20 — 0.81 1,544 39 10110,342 121 387
Senior debt5,606 61 4.39 5,397 55 4.05 4,461 24 2.12 209 6 341,145 37 227
Subordinated debt and other debt1,812 21 4.37 1,812 22 4.59 1,585 17 4.21 — (1)(22)227 4 16
Total long-term borrowed funds17,780 203 4.55 16,027 159 3.91 6,066 41 2.66 1,753 44 6411,714 162 189
Total borrowed funds18,322 209 4.57 16,289 161 3.90 6,095 41 2.66 2,033 48 6712,227 168 191
Total interest-bearing liabilities146,537 759 2.09 144,627 557 1.53 112,537 66 0.23 1,910 202 5634,000 693 186
Demand deposits46,135 50,706 48,641 (4,571)(2,506)
Other noninterest-bearing liabilities6,323 6,347 4,144 (24)2,179 
TOTAL LIABILITIES198,995 201,680 165,322 (2,685)33,673 
STOCKHOLDERS' EQUITY23,716 23,290 22,995 426 721 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$222,711 $224,970 $188,317 ($2,259)$34,394 
INTEREST RATE SPREAD2.67 %2.82 %2.65 %(15)2
NET INTEREST MARGIN AND NET INTEREST INCOME$1,643 3.29 %$1,695 3.29 %$1,147 2.75 %($52)—$496 54
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1
$1,647 3.30 %$1,699 3.30 %$1,149 2.75 %($52)—$498 55
Memo: Total deposits (interest-bearing and demand)$174,350 $550 1.28 %$179,044 $396 0.88 %$155,083 $25 0.07 %($4,694)$154 40 bps$19,267 $525 121 bps

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

MORTGAGE BANKING FEES SUMMARY
(in millions, except ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
MORTGAGE BANKING FEES
Production revenue$18 $12 $19 $22 $31 $650 %($13)(42 %)
Mortgage servicing revenue37 40 40 39 28 (3)(8)932 
MSR valuation changes, net of hedge impact2 2 7 11 10 —— (8)(80)
Total mortgage banking fees$57 $54 $66 $72 $69 $36 %($12)(17 %)
Pull-through adjusted locks$2,078 $1,665 $2,979 $3,833 $4,936 $41325 %($2,858)(58 %)
Production revenue as a percentage of Pull-through adjusted locks0.90 %0.72 %0.64 %0.57 %0.63 %18  bps27  bps
RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail$1,011 $1,103 $1,799 $2,774 $3,275 ($92)(8 %)($2,264)(69 %)
Third Party1,333 1,652 2,642 3,624 4,101 (319)(19)(2,768)(67)
Total$2,344 $2,755 $4,441 $6,398 $7,376 ($411)(15 %)(5,032)(68 %)
Originated for sale$1,651 $2,044 $3,212 $4,296 $5,521 ($393)(19 %)($3,870)(70 %)
Originated for investment693 711 1,229 2,102 1,855 (18)(3)(1,162)(63)
Total$2,344 $2,755 $4,441 $6,398 $7,376 ($411)(15 %)($5,032)(68 %)
MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others$96,346 $96,698 $96,415 $95,489 $92,804 ($352)— %$3,5424 %
Owned loans serviced30,827 30,135 30,081 29,893 25,283 6922 5,54422 
Total$127,173 $126,833 $126,496 $125,382 $118,087 $340— %$9,0868 %
MSR at fair value$1,496 $1,530 $1,524 $1,411 $1,241 ($34)(2 %)$25521 %
    

9

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING
(in millions, except ratio data)

QUARTERLY TRENDS
CONSUMER BANKING1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
Net interest income$1,096 $1,106 $1,085 $995 $857 ($10)(1 %)$239 28 %
Noninterest income256 256 270 280 257 — — (1)— 
Total revenue1,352 1,362 1,355 1,275 1,114 (10)(1)238 21 
Noninterest expense889 863 863 881 784 26 3 105 13 
Profit before provision (benefit) for credit losses463 499 492 394 330 (36)(7)133 40 
Net charge-offs83 76 62 39 49 7 9 34 69 
Income before income tax expense380 423 430 355 281 (43)(10)99 35 
Income tax expense99 108 111 90 72 (9)(8)27 38 
Net income$281 $315 $319 $265 $209 ($34)(11 %)$72 34 %
AVERAGE BALANCES
Total assets$87,558 $88,440 $89,560 $88,881 $77,551 ($882)(1 %)$10,007 13 %
Total loans and leases1
81,190 82,302 83,373 83,248 73,233 (1,112)(1)7,957 11 
Deposits115,578 117,164 117,448 118,482 104,663 (1,586)(1)10,915 10 
Interest-earning assets81,871 83,021 84,122 84,026 74,052 (1,150)(1)7,819 11 
KEY METRICS
Net interest margin5.44 %5.28 %5.12 %4.75 %4.69 %16  bps75  bps
Efficiency ratio65.81 63.38 63.76 69.06 70.38 243  bps(457) bps
Loan-to-deposit ratio (period-end balances)69.40 68.55 67.38 69.04 66.23 85  bps317  bps
Loan-to-deposit ratio (average balances)69.77 69.38 69.63 68.60 68.04 39  bps173  bps
Return on average total tangible assets1.31 1.42 1.43 1.20 1.10 (11) bps21  bps
1Includes loans held for sale.
















10

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING
(in millions, except ratio data)

QUARTERLY TRENDS
COMMERCIAL BANKING1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
Net interest income$597 $594 $559 $534 $416 $3 1 %$181 44 %
Noninterest income201 198 213 221 213 3 2 (12)(6)
Total revenue798 792 772 755 629 6 1 169 27 
Noninterest expense331 318 325 308 272 13 4 59 22 
Profit before provision (benefit) for credit losses467 474 447 447 357 (7)(1)110 31 
Net charge-offs47 12 12 10 12 35 NM35 NM
Income before income tax expense420 462 435 437 345 (42)(9)75 22 
Income tax expense101 104 101 96 74 (3)(3)27 36 
Net income$319 $358 $334 $341 $271 ($39)(11 %)$48 18 %
AVERAGE BALANCES
Total assets$78,891 $79,591 $80,067 $78,638 $61,118 ($700)(1 %)$17,773 29 %
Total loans and leases1
75,734 75,773 75,767 74,172 58,007 (39)— 17,727 31 
Deposits48,966 52,303 51,095 51,575 44,520 (3,337)(6)4,446 10 
Interest-earning assets76,130 76,097 76,025 74,422 58,312 33 — 17,818 31 
KEY METRICS
Net interest margin3.18 %3.10 %2.91 %2.88 %2.89 %8  bps29  bps
Efficiency ratio41.47 40.18 42.04 40.78 43.32 129  bps(185) bps
Loan-to-deposit ratio (period-end balances)162.54 141.44 142.25 142.31 132.70 2,110  bps2,984  bps
Loan-to-deposit ratio (average balances)153.33 143.49 145.57 139.31 128.49 984  bps2,484  bps
Return on average total tangible assets1.66 1.80 1.68 1.75 1.81 (14) bps(15) bps
1Includes loans held for sale.
















11

SEGMENT FINANCIAL HIGHLIGHTS - OTHER
(in millions)

QUARTERLY TRENDS
OTHER1
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$%$%
Net interest income($50)($5)$21 ($24)($126)($45)NM$76 60 %
Noninterest income28 51 29 (7)28 (23)(45)— — 
Total revenue(22)46 50 (31)(98)(68)NM76 78 
Noninterest expense76 59 53 116 50 17 29 26 52 
Loss before provision (benefit) for credit losses(98)(13)(3)(147)(148)(85)NM50 34 
Provision (benefit) for credit losses38 44 49 167 (58)(6)(14)96 NM
Loss before income tax benefit(136)(57)(52)(314)(90)(79)(139)(46)(51)
Income tax benefit(47)(37)(35)(72)(30)(10)(27)(17)(57)
Net loss($89)($20)($17)($242)($60)($69)NM($29)(48)
AVERAGE BALANCES
Total assets$56,262 $56,939 $55,846 $53,448 $49,648 ($677)(1 %)$6,614 13 %
Total loans and leases2
773 760 724 724 735 13 2 38 5 
Deposits9,806 9,577 9,075 6,305 5,900 229 2 3,906 66 
Interest-earning assets44,550 45,405 43,428 40,228 36,913 (855)(2)7,637 21 
1Includes assets, liabilities, capital, revenues, provision for credit losses, expenses and income tax expense not attributed to our Consumer or Commercial Banking segments as well as treasury and community development.
2Includes loans held for sale.
12

CREDIT-RELATED INFORMATION
(in millions, except ratio data)
AS OFMARCH 31, 2023 CHANGE
Mar 31, 2023Dec 31, 2022Sept 30, 2022June 30, 2022Mar 31, 2022Dec 31, 2022March 31, 2022
$/bps/%%$/bps/%%
NONACCRUAL LOANS AND LEASES
Commercial and industrial$297 $249 $234 $202 $200 $48 19 %$97 49 %
Commercial real estate140 103 37 37 11 37 36 129 NM
Leases— — — — 1 — — (1)(100)
Total commercial437 352 271 239 212 85 24 225 106 
Residential mortgages1
216 234 236 253 243 (18)(8)(27)(11)
Home equity240 241 235 240 239 (1)— 1 — 
Automobile50 56 52 50 52 (6)(11)(2)(4)
Education23 33 33 31 23 (10)(30)— — 
Other retail30 28 25 26 20 2 7 10 50 
Total retail559 592 581 600 577 (33)(6)(18)(3)
Nonaccrual loans and leases996 944 852 839 789 52 6 207 26 
Repossessed assets14 16 16 15 15 (2)(13)(1)(7)
Nonaccrual loans and leases and repossessed assets$1,010 $960 $868 $854 $804 $50 5 %$206 26 %
NONACCRUAL LOANS AND LEASES BY PRODUCT2
Commercial$437 $352 $271 $239 $212 $85 24 %$225 106 %
Retail573 608 597 615 592 (35)(6)(19)(3)
Total nonaccrual loans and leases$1,010 $960 $868 $854 $804 $50 5 %$206 26 %
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases1.30 %1.27 %1.27 %1.26 %1.31 %3  bps(1) bps
Allowance for credit losses to loans and leases1.47 1.43 1.41 1.37 1.43 4 4 
Allowance for loan and lease losses to nonaccrual loans and leases203 210 232 234 218 (7 %)(15 %)
Allowance for credit losses to nonaccrual loans and leases229 237 258 256 238 (8 %)(9 %)
Nonaccrual loans and leases to loans and leases0.64 0.60 0.55 0.54 0.60 4  bps4  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.



13

CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
AS OFMARCH 31, 2023 CHANGE
Mar 31, 2023Dec 31, 2022Sept 30, 2022June 30, 2022Mar 31, 2022Dec 31, 2022March 31, 2022
$/bps%$/bps%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial and industrial$21 $21 $13 $39 $13 $— — %$8 62 %
Commercial real estate63 1 2 33 — 62 NM63 100 
Leases— — — — 5 — — (5)(100)
Total commercial84 22 15 72 18 62 NM66 NM
Residential mortgages1
314 319 425 623 792 (5)(2)(478)(60)
Education3 4 4 3 2 (1)(25)1 50 
Other retail23 22 18 14 14 1 5 9 64 
Total retail340 345 447 640 808 (5)(1)(468)(58)
Total loans and leases$424 $367 $462 $712 $826 $57 16 %($402)(49 %)
1 90+ days past due and accruing includes $309 million, $316 million, $425 million, $623 million, and $792 million of loans fully or partially guaranteed by the FHA, VA, and USDA for March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.

14

CREDIT-RELATED INFORMATION, CONTINUED
(in millions)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$%$%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial and industrial$55 $21 $20 $13 $14 $34 162 %$41 NM
Commercial real estate4 — 2 — — 4 100 4 100 
Leases— — — — — — — — — 
Total commercial59 21 22 13 14 38 181 45 NM
Residential mortgages1 1 1 1 2 — — (1)(50)
Home equity2 2 3 2 2 — — — — 
Automobile30 27 24 21 21 3 11 9 43 
Education23 24 18 16 20 (1)(4)3 15 
Other retail56 51 48 38 42 5 10 14 33 
Total retail112 105 94 78 87 7 7 25 29 
Total gross charge-offs$171 $126 $116 $91 $101 $45 36 %$70 69 %
GROSS RECOVERIES
Commercial and industrial$3 $5 $6 $3 $3 ($2)(40 %)$— — %
Commercial real estate1 — 1 — — 1 100 1 100 
Leases3 — — — — 3 100 3 100 
Total commercial7 5 7 3 3 2 40 4 133 
Residential mortgages— 1 1 2 2 (1)(100)(2)(100)
Home equity5 6 9 11 11 (1)(17)(6)(55)
Automobile15 14 13 15 15 1 7 — — 
Education5 5 5 5 4 — — 1 25 
Other retail6 7 7 6 7 (1)(14)(1)(14)
Total retail31 33 35 39 39 (2)(6)(8)(21)
Total gross recoveries$38 $38 $42 $42 $42 $— — %($4)(10 %)
NET CHARGE-OFFS (RECOVERIES)
Commercial and industrial$52 $16 $14 $10 $11 $36 225 %$41 NM
Commercial real estate3 — 1 — — 3 100 3 100 
Leases(3)— — — — (3)(100)(3)(100)
Total commercial52 16 15 10 11 36 225 41 NM
Residential mortgages1 — — (1)— 1 100 1 100 
Home equity(3)(4)(6)(9)(9)1 25 6 67 
Automobile15 13 11 6 6 2 15 9 150 
Education18 19 13 11 16 (1)(5)2 13 
Other retail50 44 41 32 35 6 14 15 43 
Total retail81 72 59 39 48 9 13 33 69 
Total net charge-offs$133 $88 $74 $49 $59 $45 51 %$74 125 %

15

CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except rates)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial and industrial0.40 %0.12 %0.11 %0.08 %0.10 %28  bps30  bps
Commercial real estate0.05 — 0.01 — — 5 5 
Leases(0.85)(0.06)(0.11)(0.05)0.10 (79)(95)
Total commercial0.26 0.07 0.07 0.05 0.08 19 18 
Residential mortgages0.01 — 0.01 (0.01)— 1 1 
Home equity(0.07)(0.12)(0.17)(0.27)(0.32)5 25 
Automobile0.51 0.42 0.31 0.16 0.18 9 33 
Education0.57 0.59 0.38 0.34 0.49 (2)8 
Other retail3.81 3.21 3.02 2.25 2.61 60 120 
Total retail0.44 0.39 0.32 0.21 0.28 5 16 
Total loans and leases0.34 %0.22 %0.19 %0.13 %0.19 %12  bps15  bps
Memo: Average loans
Commercial and industrial$51,993 $52,311 $52,130 $50,517 $44,947 ($318)(1 %)$7,046 16 %
Commercial real estate28,892 28,735 28,388 27,592 14,066 157 1 14,826 105 
Leases1,436 1,422 1,529 1,575 1,560 14 1 (124)(8)
Total commercial82,321 82,468 82,047 79,684 60,573 (147)— 21,748 36 
Residential mortgages30,075 29,677 29,327 28,486 23,461 398 1 6,614 28 
Home equity14,073 13,869 13,400 12,811 12,124 204 1 1,949 16 
Automobile11,937 12,692 13,540 14,172 14,534 (755)(6)(2,597)(18)
Education12,796 12,929 13,081 13,144 13,034 (133)(1)(238)(2)
Other retail5,290 5,464 5,484 5,557 5,428 (174)(3)(138)(3)
Total retail74,171 74,631 74,832 74,170 68,581 (460)(1)5,590 8 
Total loans and leases$156,492 $157,099 $156,879 $153,854 $129,154 ($607)— %$27,338 21 %



16

CREDIT-RELATED INFORMATION, CONTINUED
(in millions)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$%$%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning$1,983 $1,980 $1,964 $1,720 $1,758 $3 — %$225 13 %
Allowance on PCD loans and leases at acquisition:
Commercial— — — 99 — — — — — 
Retail— — — 2 — — — — — 
Total Allowance on PCD loans and leases at acquisition— — — 101 — — — — — 
Charge-offs:
Commercial59 21 22 13 14 38 181 45 NM
Retail 112 105 94 78 87 7 7 25 29 
Total charge-offs171 126 116 91 101 45 36 70 69 
Recoveries:
Commercial7 5 7 3 3 2 40 4 133 
Retail 31 33 35 39 39 (2)(6)(8)(21)
Total recoveries38 38 42 42 42 — — (4)(10)
Net charge-offs133 88 74 49 59 45 51 74 125 
Provision (benefit) for loan and lease losses:
Commercial103 46 58 120 (32)57 124 135 NM
Retail64 45 32 72 53 19 42 11 21 
Total provision (benefit) for loan and lease losses167 91 90 192 21 76 84 146 NM
Allowance for loan and lease losses - ending$2,017 $1,983 $1,980 $1,964 $1,720 $34 2 %$297 17 %
Allowance for unfunded lending commitments - beginning$257 $216 $183 $158 $176 $41 19 %$81 46 %
Allowance on PCD unfunded lending commitments at acquisition— — — 1 — — — %— — 
Provision (benefit) for unfunded lending commitments1 41 33 24 (18)(40)(98 %)19 NM
Allowance for unfunded lending commitments - ending$258 $257 $216 $183 $158 $1 — %$100 63 
Total allowance for credit losses - ending$2,275 $2,240 $2,196 $2,147 $1,878 $35 2 %$397 21 %
Memo: Total allowance for credit losses by product
Commercial $1,326 $1,267 $1,202 $1,153 $925 $59 5 %$401 43 %
Retail 949 973 994 994 953 (24)(2)(4)— 
Total allowance for credit losses$2,275 $2,240 $2,196 $2,147 $1,878 $35 2 %$397 21 %
17

CAPITAL AND RATIOS
(in millions, except ratio data)
AS OF
MARCH 31, 2023 CHANGE
Mar 31, 2023Dec 31, 2022Sept 30, 2022June 30, 2022Mar 31, 2022Dec 31, 2022March 31, 2022
$%$%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital$18,370 $18,574 $18,304 $17,946 $15,643 ($204)(1 %)$2,727 17 %
Tier 1 capital20,384 20,588 20,318 19,960 17,657 (204)(1)2,727 15 
Total capital23,720 23,755 23,516 23,184 20,301 (35)— 3,419 17 
Risk-weighted assets183,246 185,224 187,201 187,727 161,859 (1,978)(1)21,387 13 
Adjusted average assets1
217,998 220,779 220,076 215,727 183,089 (2,781)(1)34,909 19 
CET1 capital ratio10.0 %10.0 %9.8 %9.6 %9.7 %
Tier 1 capital ratio11.1 11.1 10.9 10.6 10.9 
Total capital ratio12.9 12.8 12.6 12.3 12.5 
Tier 1 leverage ratio9.4 9.3 9.2 9.3 9.6 
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders' equity$22,187 $21,676 $21,132 $22,314 $20,060 $511 2 %$2,127 11 %
Less: Goodwill8,177 8,173 8,160 8,081 7,232 4 — 945 13 
Less: Other intangible assets185 197 199 211 115 (12)(6)70 61 
Add: Deferred tax liabilities2
422 422 424 422 387 — — 35 9 
Total tangible common equity$14,247 $13,728 $13,197 $14,444 $13,100 $519 4 %$1,147 9 %
TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders' equity$21,702 $21,276 $22,246 $22,383 $20,981 $426 2 %$721 3 %
Less: Goodwill8,177 8,171 8,131 8,015 7,156 6 — 1,021 14 
Less: Other intangible assets192 199 228 213 80 (7)(4)112 140 
Add: Deferred tax liabilities2
422 424 424 416 383 (2)— 39 10 
Total tangible common equity$13,755 $13,330 $14,311 $14,571 $14,128 $425 3 %($373)(3 %)
INTANGIBLE ASSETS (PERIOD-END)
Goodwill$8,177 $8,173 $8,160 $8,081 $7,232 $4 — %$945 13 %
Other intangible assets185 197 199 211 115 (12)(6)70 61 
Total intangible assets$8,362 $8,370 $8,359 $8,292 $7,347 ($8)— %$1,015 14 %
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.




18


NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(in millions, except share, per-share and ratio 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.

19

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$%$%
Noninterest income, Underlying:
Noninterest income (GAAP)A$485 $505 $512 $494 $498 ($20)(4 %)($13)(3 %)
Less: Notable items— — — (31)— — — — — 
Noninterest income, Underlying (non-GAAP)B$485 $505 $512 $525 $498 ($20)(4 %)($13)(3 %)
Total revenue, Underlying:
Total revenue (GAAP)C$2,128 $2,200 $2,177 $1,999 $1,645 ($72)(3 %)$483 29 %
Less: Notable items— — — (31)— — — — — 
Total revenue, Underlying (non-GAAP)D$2,128 $2,200 $2,177 $2,030 $1,645 ($72)(3 %)$483 29 %
Noninterest expense, Underlying:
Noninterest expense (GAAP)E$1,296 $1,240 $1,241 $1,305 $1,106 $56 5 %$190 17 %
Less: Notable items66 43 46 125 48 23 53 18 38 
Noninterest expense, Underlying (non-GAAP)F$1,230 $1,197 $1,195 $1,180 $1,058 $33 3 %$172 16 %
Pre-provision profit:
Total revenue (GAAP)C$2,128 $2,200 $2,177 $1,999 $1,645 ($72)(3 %)$483 29 %
Less: Noninterest expense (GAAP)E1,296 1,240 1,241 1,305 1,106 56 5 190 17 
Pre-provision profit (GAAP)$832 $960 $936 $694 $539 ($128)(13 %)$293 54 %
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)D$2,128 $2,200 $2,177 $2,030 $1,645 ($72)(3 %)$483 29 %
Less: Noninterest expense, Underlying (non-GAAP)F1,230 1,197 1,195 1,180 1,058 33 3 172 16 
Pre-provision profit, Underlying (non-GAAP)$898 $1,003 $982 $850 $587 ($105)(10 %)$311 53 %
Provision (benefit) for credit losses, Underlying:
Provision (benefit) for credit losses (GAAP)$168 $132 $123 $216 $3 $36 27 %$165 NM
Less: Notable items— — — 145 24 — — (24)(100)
Provision (benefit) for credit losses, Underlying (non-GAAP)$168 $132 $123 $71 ($21)$36 27 %$189 NM
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)G$664 $828 $813 $478 $536 ($164)(20 %)$128 24 %
Less: Expense before income tax benefit related to notable items(66)(43)(46)(301)(72)(23)(53)6 8 
Income before income tax expense, Underlying (non-GAAP)H$730 $871 $859 $779 $608 ($141)(16 %)$122 20 %
Income tax expense, Underlying:
Income tax expense (GAAP)I$153 $175 $177 $114 $116 ($22)(13 %)$37 32 %
Less: Income tax benefit related to notable items(17)(11)(13)(70)(16)(6)(55)(1)(6)
Income tax expense, Underlying (non-GAAP)J$170 $186 $190 $184 $132 ($16)(9 %)$38 29 %
Net income, Underlying:
Net income (GAAP)K$511 $653 $636 $364 $420 ($142)(22 %)$91 22 %
Add: Notable items, net of income tax benefit49 32 33 231 56 17 53 (7)(13)
Net income, Underlying (non-GAAP)L$560 $685 $669 $595 $476 ($125)(18 %)$84 18 %
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)M$488 $621 $611 $332 $396 ($133)(21 %)$92 23 %
Add: Notable items, net of income tax benefit49 32 33 231 56 17 53 (7)(13)
Net income available to common stockholders, Underlying (non-GAAP)N$537 $653 $644 $563 $452 ($116)(18 %)$85 19 %
    


20

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(in millions, except share, per-share and ratio data)

QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
Operating leverage:
Total revenue (GAAP)C$2,128 $2,200 $2,177 $1,999 $1,645 ($72)(3.28 %)$483 29.39 %
Less: Noninterest expense (GAAP)E1,296 1,240 1,241 1,305 1,106 56 4.53 190 17.22 
Operating leverage(7.81 %)12.17 %
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)D$2,128 $2,200 $2,177 $2,030 $1,645 ($72)(3.27 %)$483 29.39 %
Less: Noninterest expense, Underlying (non-GAAP)F1,230 1,197 1,195 1,180 1,058 33 2.80 172 16.43 
Operating leverage, Underlying (non-GAAP)(6.07 %)12.96 %
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio E/C60.90 %56.36 %57.02 %65.27 %67.23 %454  bps(633) bps
Efficiency ratio, Underlying (non-GAAP)F/D57.84 54.42 54.90 58.16 64.28 342  bps(644) bps
Noninterest income as a % of total revenue, Underlying:
Noninterest income as a % of total revenueA/C22.81 %22.92 %23.54 %24.72 %30.26 %(11) bps(745) bps
Noninterest income as a % of total revenue, UnderlyingB/D22.81 22.92 23.54 25.88 30.26 (11) bps(745) bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rateI/G22.97 %21.16 %21.80 %23.77 %21.70 %181  bps127  bps
Effective income tax rate, Underlying (non-GAAP)J/H23.25 21.37 22.00 23.69 21.70 188  bps155  bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)O$21,702 $21,276 $22,246 $22,383 $20,981 $426 2 %$721 3 %
Return on average common equityM/O9.11 %11.56 %10.91 %5.95 %7.65 %(245) bps146  bps
Return on average common equity, Underlying (non-GAAP)N/O10.01 12.15 11.52 10.06 8.75 (214) bps126  bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)O$21,702 $21,276 $22,246 $22,383 $20,981 $426 2 %$721 3 %
Less: Average goodwill (GAAP)8,177 8,171 8,131 8,015 7,156 6 — 1,021 14 
Less: Average other intangibles (GAAP)192 199 228 213 80 (7)(4)112 140 
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)422 424 424 416 383 (2)— 39 10 
Average tangible common equityP$13,755 $13,330 $14,311 $14,571 $14,128 $425 3 %($373)(3 %)
Return on average tangible common equity M/P14.38 %18.46 %16.96 %9.13 %11.36 %(408) bps302  bps
Return on average tangible common equity, Underlying (non-GAAP)N/P15.80 19.40 17.91 15.45 12.99 (360) bps281  bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)Q$222,711 $224,970 $225,473 $220,967 $188,317 ($2,259)(1 %)$34,39418 %
Return on average total assetsK/Q0.93 %1.15 %1.12 %0.66 %0.90 %(22) bps3  bps
Return on average total assets, Underlying (non-GAAP)L/Q1.02 1.21 1.18 1.08 1.03 (19) bps(1) bps
21

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$/bps%$/bps%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)Q$222,711 $224,970 $225,473 $220,967 $188,317 ($2,259)(1 %)$34,39418 %
Less: Average goodwill (GAAP)8,177 8,171 8,131 8,015 7,156 6— 1,02114 
Less: Average other intangibles (GAAP)192 199 228 213 80 (7)(4)112140 
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)422 424 424 416 383 (2)— 3910 
Average tangible assetsR$214,764 $217,024 $217,538 $213,155 $181,464 ($2,260)(1 %)$33,30018 %
Return on average total tangible assets K/R0.97 %1.19 %1.16 %0.69 %0.94 %(22) bps3  bps
Return on average total tangible assets, Underlying (non-GAAP)L/R1.06 1.25 1.22 1.12 1.06 (19) bps—  bps
Tangible book value per common share:
Common shares - at period-end (GAAP)S483,982,264 492,282,158 495,843,793 495,650,259 423,031,985 (8,299,894)(2 %)60,950,27914 %
Common stockholders' equity (GAAP)$22,187 $21,676 $21,132 $22,314 $20,060 $5112 $2,12711 
Less: Goodwill (GAAP)8,177 8,173 8,160 8,081 7,232 4— 94513 
Less: Other intangible assets (GAAP)185 197 199 211 115 (12)(6)7061 
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP)422 422 424 422 387 —— 359 
Tangible common equityT$14,247 $13,728 $13,197 $14,444 $13,100 $5194 %$1,1479 %
Tangible book value per common shareT/S$29.44 $27.88 $26.62 $29.14 $30.97 $1.56 6 %($1.53)(5 %)
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)U485,444,313 493,293,981 495,651,083 491,497,026 422,401,747 (7,849,668)(2 %)63,042,566 15 %
Average common shares outstanding - diluted (GAAP)V487,712,146 495,478,398 497,477,501 493,296,114 424,670,871 (7,766,252)(2)63,041,275 15 
Net income per average common share - basic (GAAP)M/U$1.00 $1.26 $1.23 $0.68 $0.94 ($0.26)(21)$0.06 6 
Net income per average common share - diluted (GAAP)M/V1.00 1.25 1.23 0.67 0.93 (0.25)(20)0.07 8 
Net income per average common share - basic, Underlying (non-GAAP)N/U1.10 1.32 1.30 1.14 1.07 (0.22)(17)0.03 3 
Net income per average common share - diluted, Underlying (non-GAAP)N/V1.10 1.32 1.30 1.14 1.07 (0.22)(17)0.03 3 
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common shareW$0.42 $0.42 $0.42 $0.39 $0.39 $— — %$0.03 8 %
Dividend payout ratioW/(M/U)42 %33 %34 %57 %41 %900 bps100 bps
Dividend payout ratio, Underlying (non-GAAP)W/(N/U)38 32 32 34 36 600 bps200 bps
22

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
1Q23 Change
1Q234Q223Q222Q221Q224Q221Q22
$%$%
Other income, Underlying:
Other income (GAAP)$17 $36 $34 ($12)$24 ($19)(53)($7)(29 %)
Less: Notable items— — — (31)— — — — — 
Other income, Underlying (non-GAAP)$17 $36 $34 $19 $24 ($19)(53)($7)(29 %)
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)$658 $633 $639 $683 $594 $25 4 %$64 11 %
Less: Notable items16 15 17 72 6 1 7 10 167 
Salaries and employee benefits, Underlying (non-GAAP)$642 $618 $622 $611 $588 $24 4 %$54 9 %
Equipment and software, Underlying:
Equipment and software (GAAP)
$169 $170 $159 $169 $150 ($1)(1 %)$19 13 %
Less: Notable items4 2 — 6 2 2 100 2 100 
Equipment and software, Underlying (non-GAAP)$165 $168 $159 $163 $148 ($3)(2 %)$17 11 %
Outside services, Underlying:
Outside services (GAAP)$176 $170 $172 $189 $169 $6 4 %$7 4 %
Less: Notable items27 17 20 41 35 10 59 (8)(23)
Outside services, Underlying (non-GAAP)$149 $153 $152 $148 $134 ($4)(3 %)$15 11 %
Occupancy, Underlying:
Occupancy (GAAP)$124 $110 $106 $111 $83 $14 13 %$41 49 %
Less: Notable items18 2 2 1 — 16 NM18 100 
Occupancy, Underlying (non-GAAP)$106 $108 $104 $110 $83 ($2)(2 %)$23 28 %
Other operating expense, Underlying:
Other operating expense (GAAP)$169 $157 $165 $153 $110 $12 8 %$59 54 %
Less: Notable items1 7 7 5 5 (6)(86)(4)(80)
Other operating expense, Underlying (non-GAAP)$168 $150 $158 $148 $105 $18 12 %$63 60 %

23



NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS
(in millions, except ratio data)
FIRST QUARTER 2023FOURTH QUARTER 2022THIRD QUARTER 2022
Consumer BankingCommercial BankingOtherConsolidatedConsumer BankingCommercial BankingOtherConsolidatedConsumer BankingCommercial BankingOtherConsolidated
Net income (loss) available to common stockholders:
Net income (loss)A$281 $319 ($89)$511 $315 $358 ($20)$653 $319 $334 ($17)$636 
Less: Preferred stock dividends— — 23 23 — — 32 32 — — 25 25 
Net income (loss) available to common stockholdersB$281 $319 ($112)$488 $315 $358 ($52)$621 $319 $334 ($42)$611 
Return on average total tangible assets:
Average total assets (GAAP)$87,558 $78,891 $56,262 $222,711 $88,440 $79,591 $56,939 $224,970 $89,560 $80,067 $55,846 $225,473 
 Less: Average goodwill (GAAP)538 763 6,876 8,177 491 804 6,876 8,171 454 801 6,876 8,131 
          Average other intangibles (GAAP)115 43 34 192 121 46 32 199 106 38 84 228 
 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)23 12 387 422 7 4 413 424 6 3 415 424 
Average tangible assetsC$86,928 $78,097 $49,739 $214,764 $87,835 $78,745 $50,444 $217,024 $89,006 $79,231 $49,301 $217,538 
Return on average total tangible assets A/C1.31 %1.66 %NM0.97 %1.42 %1.80 %NM1.19 %1.43 %1.68 %NM1.16 %
Efficiency ratio:
Noninterest expense (GAAP)D$889 $331 $76 $1,296 $863 $318 $59 $1,240 $863 $325 $53 $1,241 
Net interest income (GAAP)1,096 597 (50)1,643 1,106 594 (5)1,695 1,085 559 21 1,665 
Noninterest income (GAAP)256 201 28 485 256 198 51 505 270 213 29 512 
Total revenue (GAAP)E$1,352 $798 ($22)$2,128 $1,362 $792 $46 $2,200 $1,355 $772 $50 $2,177 
Efficiency ratio D/E65.81 %41.47 %NM60.90 %63.38 %40.18 %NM56.36 %63.76 %42.04 %NM57.02 %
SECOND QUARTER 2022FIRST QUARTER 2022
Consumer BankingCommercial BankingOtherConsolidatedConsumer BankingCommercial BankingOtherConsolidated
Net income (loss) available to common stockholders:
Net income (loss)A$265 $341 ($242)$364 $209 $271 ($60)$420 
Less: Preferred stock dividends
— — 32 32 — — 24 24 
Net income (loss) available to common stockholdersB$265 $341 ($274)$332 $209 $271 ($84)$396 
Return on average total tangible assets:
Average total assets (GAAP)$88,881 $78,638 $53,448 $220,967 $77,551 $61,118 $49,648 $188,317 
 Less: Average goodwill (GAAP)445 731 6,839 8,015 160 120 6,876 7,156 
          Average other intangibles (GAAP)74 16 123 213 51 18 11 80 
 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)6 1 409 416 5 1 377 383 
Average tangible assetsC$88,368 $77,892 $46,895 $213,155 $77,345 $60,981 $43,138 $181,464 
Return on average total tangible assets A/C1.20 %1.75 %NM0.69 %1.10 %1.81 %NM0.94 %
Efficiency ratio:
Noninterest expense (GAAP)D$881 $308 $116 $1,305 $784 $272 $50 $1,106 
Net interest income (GAAP)995 534 (24)1,505 857 416 (126)1,147 
Noninterest income (GAAP)280 221 (7)494 257 213 28 498 
Total revenue (GAAP)E$1,275 $755 ($31)$1,999 $1,114 $629 ($98)$1,645 
Efficiency ratio D/E69.06 %40.78 %NM65.27 %70.38 %43.32 %NM67.23 %

24