4Q23 and 2023 Financial Results January 17, 2024
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,” “guidance” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: • Negative economic, business and political conditions, including as a result of the interest rate environment, supply chain disruptions, inflationary pressures and labor shortages, that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits; • The general state of the economy and employment, as well as general business and economic conditions, and changes in the competitive environment; • Our capital and liquidity requirements under regulatory standards and our ability to generate capital and liquidity on favorable terms; • The effect of changes in our credit ratings on our cost of funding, access to capital markets, ability to market our securities, and overall liquidity position; • The effect of changes in the level of commercial and consumer deposits on our funding costs and net interest margin; • Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including the anticipated benefits of the Investors acquisition and HSBC transaction; • The effects of geopolitical instability, including the wars in Ukraine and Israel, on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks; • Our ability to meet heightened supervisory requirements and expectations; • Liabilities and business restrictions resulting from litigation and regulatory investigations; • The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; • Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets; • Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses; • Environmental risks, such as physical or transition risks associated with climate change, and social and governance risks, that could adversely affect our reputation, operations, business, and customers; • A failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; and • Management’s ability to identify and manage these and other risks. In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends. More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the Securities and Exchange Commission. Non-GAAP Financial Measures: This document contains non-GAAP financial measures denoted as Underlying. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. 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 4Q23 and FY2023 GAAP summary Full Year 4Q23 3Q23 4Q22 Q/Q Y/Y 2023 vs. 2022 $s in millions $/bps % $/bps % 2023 2022 $/bps % Net interest income $ 1,488 $ 1,522 $ 1,695 $ (34) (2) % $ (207) (12) % $ 6,241 $ 6,012 $ 229 4 % Noninterest income 500 492 505 8 2 (5) (1) 1,983 2,009 (26) (1) Total revenue 1,988 2,014 2,200 (26) (1) (212) (10) 8,224 8,021 203 3 Noninterest Expense 1,612 1,293 1,240 319 25 372 30 5,507 4,892 615 13 Pre-provision profit 376 721 960 (345) (48) (584) (61) 2,717 3,129 (412) (13) Provision for credit losses 171 172 132 (1) (1) 39 30 687 474 213 45 Income before income tax expense 205 549 828 (344) (63) (623) (75) 2,030 2,655 (625) (24) Income tax expense 16 119 175 (103) (87) (159) (91) 422 582 (160) (27) Net income $ 189 $ 430 $ 653 $ (241) (56) % $ (464) (71) % $ 1,608 $ 2,073 $ (465) (22) % Preferred dividends 30 30 32 — — (2) (6) 117 113 4 4 Net income available to common stockholders $ 159 $ 400 $ 621 $ (241) (60) % $ (462) (74) % $ 1,491 $ 1,960 $ (469) (24) % $s in billions Average interest-earning assets $ 203.1 $ 199.6 $ 204.5 $ 3.5 2 % $ (1.4) (1) % $ 201.7 $ 194.1 $ 7.6 4 % Average deposits $ 177.1 $ 176.5 $ 179.0 $ 0.7 — % $ (1.9) (1) % $ 175.3 $ 172.1 $ 3.2 2 % Performance metrics Net interest margin(1) 2.90 % 3.03 % 3.29 % (13) bps (39) bps 3.09 % 3.10 % (1) bps Net interest margin, FTE(1) 2.91 3.03 3.30 (12) (39) 3.10 3.10 — Loan-to-deposit ratio (period-end) 82.3 84.0 86.7 (173) (439) 82.3 86.7 (439) ROTCE 4.7 12.0 18.5 (728) (1,374) 10.9 13.9 (299) Efficiency ratio 81.1 64.2 56.4 1,692 2,477 67.0 61.0 598 Noninterest income as a % of total revenue 25 % 24 % 23 % 72 bps 224 bps 24 % 25 % (92) bps Full-time equivalent colleagues 17,570 18,214 18,889 (644) (4) (1,319) (7) 17,570 18,889 (1,319) (7) % Operating leverage (26.0) % (39.7) % (10.1) % Per common share Diluted earnings $ 0.34 $ 0.85 $ 1.25 $ (0.51) (60) % $ (0.91) (73) % $ 3.13 $ 4.10 $ (0.97) (24) % Tangible book value $ 30.91 $ 27.73 $ 27.88 $ 3.18 11 % $ 3.03 11 % $ 30.91 $ 27.88 $ 3.03 11 % Average diluted shares outstanding (in millions) 468.2 471.2 495.5 (3.0) (1) % (27.3) (6) % 476.7 477.8 (1.1) — % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
4 4Q23 and FY23 Underlying financial summary(1) Full Year Q/Q Y/Y 2023 2022 2023 vs. 2022 $s in millions 4Q23 $/bps % $/bps % $/bps % Net interest income $ 1,488 $ (34) (2) % $ (207) (12) % $ 6,241 $ 6,012 $ 229 4% Noninterest income 500 8 2 (5) (1) 1,983 2,040 (57) (3) Total revenue 1,988 (26) (1) (212) (10) 8,224 8,052 172 2 Noninterest expense 1,267 (4) — 70 6 5,001 4,630 371 8 Pre-provision profit 721 (22) (3) (282) (28) 3,223 3,422 (199) (6) Provision for credit losses 171 (1) (1) 39 30 687 305 382 125 Net income available to common stockholders $ 396 $ (22) (5) % $ (257) (39) % $ 1,848 $ 2,312 $ (464) (20)% Performance metrics Diluted EPS $ 0.85 $ (0.04) (4) % $ (0.47) (36) % $ 3.88 $ 4.84 $ (0.96) (20)% Efficiency ratio 63.8 69 bps 935 bps 60.8 57.5 330 bps Noninterest income as a % of total revenue 25 % 72 bps 224 bps 24 % 25 % (121) bps ROTCE 11.8 % (67) bps (756) bps 13.5 % 16.4 % (288) bps Tangible book value per share $ 30.91 $ 3.18 11 % $ 3.03 11 % $ 30.91 $ 27.88 $ 3.03 11% 4Q23 FY2023 Notable Items Impacts Pre-tax EPS Pre-tax EPS ($s in millions except per share data) Integration related $ (5) $ (0.01) $ (104) $ (0.16) TOP and Other items (115) (0.15) (177) (0.24) FDIC special assessment (225) (0.35) (225) (0.35) Total: $ (345) $ (0.51) $ (506) $ (0.75) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
5 ■ CFG performance reflects solid Legacy Core results, investment in Private Bank and impact from Non-Core ■ Private Bank expected to reach breakeven in 2H2024 ■ Non-Core has run down $2.6 billion in 2H2023 4Q23 Underlying financial performance detail(1) (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(2) Private Bank Core Non-Core(3) Total CFG Net interest income $1,528 $4.8 $1,533 $(45) $1,488 Noninterest income 500 0.4 500 — 500 Total revenue 2,028 5.2 2,033 (45) 1,988 Noninterest Expense 1,199 40.6 1,239 28 1,267 Pre-provision profit 829 (35.3) 794 (73) 721 Provision for credit losses 147 — 147 24 171 Income before income tax expense 682 (35.3) 647 (97) 550 Income tax expense 158 (9.2) 149 (25) 124 Net income 524 (26.1) 498 (72) 426 Preferred dividends 30 — 30 — 30 Net income available to common stockholders $494 $(26.1) $468 $(72) $396 Contribution to total CFG Diluted EPS $1.06 $(0.06) $1.00 $(0.15) $0.85 $s in billions Interest-earning assets (spot) $186 $0.3 $186 $11.1 $197 Loans (spot) 135 0.3 135 11.1 146 Deposits (spot) 176 1.2 177 — 177 Risk-weighted assets (spot) 161 0.3 161 11.2 173 Performance metrics: Net interest margin, FTE(4) 3.18% NM 3.19% (1.54)% 2.91% Loan-to-deposit ratio (spot) 76.4 20.9 76.0 NM 82.3 CET1 capital ratio(5) 11.5 NM 11.5 NM 10.6 ROTCE 14.8 NM 14.3 NM 11.8 Efficiency ratio 59.2 NM 61.0 NM 63.8 Noninterest income as a % of total revenue 24.6 NM 24.6 NM 25.2 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
6 2023 Underlying financial performance detail(1) (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(2) Private Bank Core Non-Core(3) Total CFG Net interest income $6,365 $5.1 $6,370 $(129) $6,241 Noninterest income 1,983 0.5 1,983 — 1,983 Total revenue 8,347 5.5 8,353 (129) 8,224 Noninterest Expense 4,802 76.3 4,878 123 5,001 Pre-provision profit 3,546 (70.7) 3,475 (252) 3,223 Provision for credit losses 609 — 609 78 687 Income before income tax expense 2,937 (70.7) 2,866 (330) 2,536 Income tax expense 675 (18.4) 657 (86) 571 Net income 2,261 (52.3) 2,209 (244) 1,965 Preferred dividends 117 — 117 — 117 Net income available to common stockholders $2,144 $(52.3) $2,092 $(244) $1,848 Contribution to total CFG Diluted EPS $4.50 $(0.11) $4.39 $(0.51) $3.88 $s in billions Interest-earning assets (spot) $186 $0.3 $186 $11.1 $197 Loans (spot) 135 0.3 135 11.1 146 Deposits (spot) 176 1.2 177 — 177 Risk-weighted assets (spot) 161 0.3 161 11.2 173 Performance metrics: Net interest margin, FTE(4) 3.39% NM 3.40% (0.94)% 3.10% Loan-to-deposit ratio (spot) 76.4 20.9 76.0 NM 82.3 CET1 capital ratio(5) 11.5 NM 11.5 NM 10.6 ROTCE 15.7 NM 15.3 NM 13.5 Efficiency ratio 57.5 NM 58.4 NM 60.8 Noninterest income as a % of total revenue 23.8 NM 23.7 NM 24.1 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
7 Overview(1) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. 4Q23: Quarter highlights – Underlying EPS of $0.85 and ROTCE of 11.8%; includes $(0.06) for the Private Bank start-up investment and $(0.15) impact from the Non- Core portfolio – Underlying PPNR of $721 million, with higher fees, slightly lower NII and stable expenses – Period-end loans down 3% and average loans down 2% QoQ given commercial balance sheet optimization and lower client demand, as well as Non-Core portfolio run off – Period-end and average deposits broadly stable – Strong CET1 ratio of 10.6%(2); 9.0% adjusted for AOCI opt-out removal; TCE ratio 6.7%, up 79 bps QoQ – Period-end LDR improved from 84% to 82% QoQ; ~67% consumer deposits; ~71% secured/insured(3) – Achieved target liquidity profile, with pro forma Category 1 Bank LCR rising from 109% to 117% QoQ ◦ Reduced period-end FHLB borrowings by $3.3 billion QoQ to $3.8 billion – Continue to be well reserved for credit issues: ACL 1.59% vs. ~1.3% pro forma day-one CECL ◦ General Office reserve of 10.2% at December 31, 2023 – Executing Non-Core strategy to run off non-strategic lending and high-cost funding ◦ $2.6 billion of Non-Core loan portfolio run off in 2H2023 ◦ $2.7 billion of auto-collateralized funding at year-end; third issuance of $1.5 billion executed in January 2024 – Citizens Private Bank launched and off to good start; ~$1.2 billion of deposits and ~$0.4 billion in investments at year end – Well positioned in NYC metro: performance tracking well, gaining market share – Poised to capitalize on increasing Private Capital opportunity – TOP 8 program achieved ~$115 million year-end pre-tax run rate benefit; TOP 9 targeting ~$135 million pre-tax run-rate benefit by year end 2024; targeting ~1-1.5% growth in 2024 Underlying expenses, a reduction of ~1.4% excluding the Private Bank impact Well positioned for medium-term relative outperformance through strategic initiatives Further balance sheet strengthening Solid 2023 full-year results – Underlying net income of $2.0 billion, with EPS of $3.88 and ROTCE of 13.5%; includes $(0.11) for the Private Bank start-up investment and $(0.51) impact from the Non-Core portfolio
8 3.03% 0.03% 0.03% (0.03)% (0.03)% (0.03)% 3.00% (0.09)% 2.91% 3Q23 Asset Yields Non-Core Impact Deposit Pricing NIB Migration Swaps Sub-total Liquidity Build 4Q23 $204.5B $202.6B $201.5B $199.6B $203.1B $1,695 $1,643 $1,588 $1,522 $1,488 3.30% 3.30% 3.17% 3.03% 2.91% 4Q22 1Q23 2Q23 3Q23 4Q23 ■ NII down 2%, reflecting lower NIM, partially offset by a 2% increase in average interest-earning assets, as higher cash and securities were partially offset by lower loans – NIM of 2.91% decreased 12 bps, reflecting the impact of increased liquidity (cash and securities - 9 bps) and higher funding costs (6 bps), partially offset by the benefit of Non-Core run off (3 bps) – Interest-earning asset yields up 7 bps to 5.20% – Interest-bearing deposit costs up 19 bps to 279 bps; cumulative beta of 51% Net interest income NII and NIM Average interest-earning assets Net interest income NIM, FTE Net interest income decline reflects higher funding costs Linked Quarter NIM walk from 3Q23 to 4Q23 $s in millions $s in millions, except earning assets
9 ■ Noninterest income increased 2% – Capital markets fees increased $20 million given increased bond and equity underwriting and M&A advisory fees, though several M&A deals pushed to Q1 – Card fees decreased $4 million, primarily reflecting lower interchange and higher rewards expense – Trust and investment services fees increased $5 million, reflecting increased sales activity – Mortgage banking fees decreased $12 million, driven by lower production fees and MSR valuation, net of hedging, partially offset by higher servicing fees – FX and derivative products revenue decreased $5 million, reflecting lower client activity in interest rate hedging $505 $485 $506 $492 $500 4Q22 1Q23 2Q23 3Q23 4Q23 Noninterest income $s in millions Fees up 2% QoQ reflecting improvement in Capital Markets and Wealth See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Linked Quarter Year-Over-YearNoninterest income ■ Noninterest income decreased 1% – Capital markets fees decreased $11 million, primarily given lower M&A advisory fees – Trust and investment services fees increased $7 million, reflecting increased sales activity and asset management fees – Mortgage banking fees increased $3 million, driven by higher MSR valuation, net of hedging, partially offset by lower servicing and production fees – FX and derivative products revenue increased $8 million, primarily reflecting increased client activity in commodities hedging $s in millions 4Q23 3Q23 4Q22 $ Q/Q Y/Y Service charges and fees $ 104 $ 105 $ 105 $ (1) $ (1) Capital markets fees 87 67 98 20 (11) Card fees 70 74 71 (4) (1) Trust and investment services fees 68 63 61 5 7 Mortgage banking fees 57 69 54 (12) 3 FX and derivative products 43 48 35 (5) 8 Letter of credit and loan fees 42 43 41 (1) 1 Securities gains, net 9 5 4 4 5 Other income(1) 20 18 36 2 (16) Noninterest income, reported $ 500 $ 492 $ 505 $ 8 $ (5)
10 ■ Underlying noninterest expense of $1.27 billion increased 6%; up 2% excluding $41 million in expenses related to the Private Bank start-up investment – Reflects an increase in salaries and employee benefits primarily reflecting the Private Bank start-up investment, partly offset by lower headcount – Higher equipment and software expense driven by increased software maintenance and amortization costs – Higher other operating expense reflects increased deposit insurance, pension costs and fraud Noninterest expense(1) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Efficiency ratio Down slightly QoQ; remain highly disciplined on expenses Linked Quarter Year-Over-Year56.4% 60.9% 62.3% 64.2% 81.1% 54.4% 57.8% 58.9% 63.1% 63.8% Underlying Notable items 4Q22 1Q23 2Q23 3Q23 4Q23 4Q23 3Q23 4Q22 $ $s in millions Q/Q Y/Y Salaries & employee benefits $ 635 $ 654 $ 618 $ (19) $ 17 Equipment & software 178 185 168 (7) 10 Outside services 161 153 153 8 8 Occupancy 105 105 108 — (3) Other operating expense 188 174 150 14 38 Noninterest expense, underlying $ 1,267 $ 1,271 $ 1,197 $ (4) $ 70 Notable items (1) 345 22 43 323 302 Noninterest expense, reported $ 1,612 $ 1,293 $ 1,240 $ 319 $ 372 Full-time equivalents (FTEs) 17,570 18,214 18,889 (644) (1,319) ■ Underlying noninterest expense of $1.27 billion, decreased $4 million; broadly stable including the Private Bank start-up investment – Reflects a decrease in salaries and employee benefits given headcount reduction initiatives – Equipment and software decreased reflecting lower vendor costs – Outside services increased related to strategic initiatives – Other operating expense increased primarily due to higher fraud, deposit insurance and travel expenses, partially offset by lower advertising cost ■ Reported noninterest expense of $1.61 billion, increased $319 million reflecting notable items of $323 million, namely the industry-wide FDIC special assessment of $225 million, and costs associated with the reduction of ~650 headcount, or ~3.5%, the exit of the Wholesale Mortgage and Auto businesses, and facilities rationalization
11 $157.1 $156.5 $153.7 $150.8 $148.0 $140.4 $140.9 $139.3 $137.8 $136.3 $16.7 $15.6 $14.4 $13.0 $11.7 Core Non-Core Loan yield 4Q22 1Q23 2Q23 3Q23 4Q23 ~10% QoQ ■ Average loans down $2.8 billion, or 2%, driven by planned Non- Core portfolio run off – Core loans down 1% with commercial down $2.2 billion, or 3%, given C&I balance sheet optimization actions and lower client demand, and retail, up 1%, driven by growth in mortgage and home equity ■ Period-end loans down $3.8 billion, or 3%, driven by planned Non-Core portfolio run off – Core loans down 2% with retail growth in mortgage and home equity more than offset by commercial balance sheet optimization actions ■ Loan yield of 5.71%, up 5 bps QoQ Loans and leases $s in billions Loans down modestly reflecting continued balance sheet optimization ■ Average loans down $9.1 billion, or 6%, driven by Non-Core portfolio run off – Core loans down 3% with commercial down $6.4 billion, or 8%, driven by C&I balance sheet optimization actions and lower client demand, largely offset by retail, up 4%, driven by growth in mortgage and home equity ■ Period-end loans down $10.7 billion, or 7%, driven by Non-Core Portfolio run off – Core loans down 4% with commercial down $7.7 billion, or 9%, driven by C&I balance sheet optimization actions and lower client demand, largely offset by retail, up 3%, driven by growth in mortgage and home equity Average loans and leases $156.7 $154.7 $151.3 $149.7 $146.0 $140.6 $139.6 $137.6 $137.4 $134.9 $16.1 $15.1 $13.7 $12.3 $11.1 Core Non-Core 4Q22 1Q23 2Q23 3Q23 4Q23 $s in billions Period-end loans and leases 4.75% 5.25% 5.52% 5.66% 5.71% Linked Quarter Year-Over-Year ~10% QoQ ~1% QoQ ~2% QoQ
12 $179.0 $174.4 $173.2 $176.5 $177.1 4Q22 1Q23 2Q23 3Q23 4Q23 Deposit performance and cost of funds Deposits broadly stable QoQ $s in billions 4Q23 Average deposits 0.88% 1.28% 1.68% 2.02% 2.18% 1.23% 1.74% 2.21% 2.60% 2.79% Total deposit costs Interest-bearing deposit costs Commercial Consumer Other Year-Over-Year 4Q23 Period-end deposits Term Linked Quarter ■ Period-end deposits broadly stable, with lower Commercial offset by an increase in Consumer, driven by the Private Bank – Efforts to optimize the liquidity value of deposits continue, with ~$3.5 billion in deposits from financial institutions and municipalities run off during the quarter ■ Average deposits broadly stable, up $678 million – Consumer deposits up $495 million – Commercial down $259 million ■ Citizens Access 4Q23 average and period-end balance of $11.0 billion ■ Total deposit costs increased 16 bps ■ Interest-bearing deposit costs increased 19 bps; well-controlled cumulative beta of 51% ■ Total cost of funds of 244 bps, up 20 bps ■ Period-end deposits down $3.4 billion, or 2%; average deposits down $1.9 billion, or 1%, primarily due to rate-related outflows ■ Total deposit costs up 130 bps and interest-bearing deposit costs up 156 bps ■ Total cost of funds up 131 bps $s in billions $180.7 $172.2 $177.7 $178.2 $177.3 Commercial Consumer Other 4Q22 1Q23 2Q23 3Q23 4Q23
13 NIB 21% Money Market 30%Checking With Interest 18% Citizens Access Savings 6% Savings 10% Term 15% 65% 70% 71% 3Q23 3Q23 4Q23 53% 67% 67% 3Q23 3Q23 4Q23 Branch Deposits 48% Citizens Access 6% Wealth 1% Business Banking 12% Commercial 26% Treasury/ Other 7% (As of 12/31/23) Highly diversified and retail-oriented deposit base $177B Period-end deposits Peer Avg(1) Business mix Product mix See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Total deposits insured/secured(2) % Consumer Banking deposits Peer Avg(1) 46% 44% 42% 23% 22% 21% 23% 22% 21% NIB Low-cost deposits 2Q23 3Q23 4Q23 % NIB and low-cost deposits (3)
14 $2,240 $2,275 $2,299 $2,318 $2,318 1.43% 1.47% 1.52% 1.55% 1.59% Allowance for credit losses Allowance to loan coverage ratio 4Q22 1Q23 2Q23 3Q23 4Q23 $944 $996 $1,191 $1,296 $1,364 0.60% 0.64% 0.79% 0.87% 0.93% Nonaccrual loans Nonaccrual loans to total loans 4Q22 1Q23 2Q23 3Q23 4Q23 ■ NCOs of $171 million, or 46 bps of average loans and leases ■ Nonaccrual loans increased 5% QoQ to 93 bps of total loans primarily driven by an increase in C&I and a modest increase in the General Office segment of commercial real estate – Trends in credit quality such as criticized loans appear to be broadly stabilizing ■ Provision for credit losses of $171 million; ACL coverage ratio of 1.59%, up 4 bps QoQ reflecting stable reserves with lower loan balances given Non-Core run off and balance sheet optimization actions in commercial ■ ACL to nonaccrual loans and leases ratio of 170% compares with 179% as of 3Q23 and 237% as of 4Q22 $132 $168 $176 $172 $171 $88 $133 $152 $153 $171 0.22% 0.34% 0.40% 0.40% 0.46% Provision for credit losses Net charge-offs Net c/o ratio 4Q22 1Q23 2Q23 3Q23 4Q23 Credit quality overview $s in millions $s in millions See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Nonaccrual loans $s in millions Allowance for credit losses HighlightsCredit provision expense; net charge-offs (1)
15 3Q23 4Q23 ACL % Coverage ACL % Coverage Retail $ 893 1.23 % $ 893 1.25 % Commercial 1,425 1.84 1,425 1.91 C&I 707 1.51 666 1.52 CRE 692 2.35 733 2.49 Leasing 26 2.14 26 2.24 Total $ 2,318 1.55 % $ 2,318 1.59 % Memo: General Office ACL $ 354 9.5 % $ 370 10.2 % NCOs $ 44 $ 48 Allowance for credit losses ■ The increase in the ACL reserve coverage to 1.59% primarily reflects the decrease in loan balances and includes higher reserves for CRE exposures, primarily General Office ■ The key macroeconomic assumptions underlying the reserve reflect a moderate recession over the two- year reasonable and supportable period ■ Qualitative factors and sensitivities are also incorporated in the allowance framework to account for other considerations not fully captured in reserve models $s in millions CommentaryAllowance for credit losses Current assumptions Property valuations, peak-to-trough % decline ~67% Avg. Loss Severity (%) ~46% Default rate (%) ~21-24% Scenario losses implied ~$370 million General Office ACL Coverage 10.2% CRE General Office key reserve assumptions ■ CRE General Office portfolio of $3.6 billion, down ~$100 million, or 3%, QoQ driven by paydowns and charge-offs ■ Strong ACL coverage of General Office; ACL informed by a specific CRE downside macro scenario combined with a loan-by-loan analysis – Increased ACL coverage for CRE General Office to 10.2% from 9.5% while absorbing ~$148 million over 2Q, 3Q and 4Q23 NCOs, which is another ~4% of loans ■ Capital impacts of higher stress scenarios very modest CRE General Office commentary
16 ■ 4Q23 CET1 ratio of 10.6%(1) compares with 10.4% in 3Q23 – 9.0% CET1 ratio adjusted for AOCI opt-out removal ■ TBV/share of $30.91, up 11% QoQ, primarily due to AOCI impacts – Tangible common equity ratio of 6.7%, up 79 bps QoQ ■ Paid $198 million in common dividends to shareholders in 4Q23 ■ No share repurchases in 4Q23 given the decision to pause to cover the impact of the FDIC special assessment – Remaining Board-authorized capacity of $1.094 billion at December 31, 2023 – Expect to resume repurchases in 1Q24 ■ Capital ratios consistently remain top quartile of peer group (see slide 36) ■ Shareholder payout ratio of ~95% on an Underlying basis for FY2023 Capital position continues to strengthen $s in billions (period-end) 4Q22 1Q23 2Q23 3Q23 4Q23 Basel III basis(1)(2) Common equity tier 1 capital $ 18.6 $ 18.4 $ 18.4 $ 18.4 $ 18.4 Risk-weighted assets $ 185.2 $ 183.2 $ 179.0 $ 176.4 $ 172.6 Common equity tier 1 ratio 10.0 % 10.0 % 10.3 % 10.4 % 10.6 % Tier 1 capital ratio 11.1 % 11.1 % 11.4 % 11.5 % 11.8 % Total capital ratio 12.8 % 12.9 % 13.3 % 13.4 % 13.7 % Tangible common equity ratio 6.3 % 6.6 % 6.3 % 5.9 % 6.7 % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. TBV/share CET1 $ % 3Q23 10.4% $27.73 Net Income 0.11 0.41 1.5% Common and preferred dividends (0.13) (0.49) (1.8) RWA decrease 0.23 Treasury stock — — — Goodwill and intangibles 0.01 0.03 0.1 AOCI — 3.18 11.5 Other 0.01 0.05 0.2 Total change 0.23 3.18 11.5% 4Q23 10.6% $30.91 CET1 ratio remains strong(3) Highlights
17 High-quality loans Wealth AUM DDA 33% CWI 5% Savings 58% Term 4% ■ Deliver a world-class service model ■ Market and expand the brand ■ Hire and lift-out multiple wealth teams ■ Open 5-6 new Private Bank offices Financial expectations 2024 Deposit growth Strategic focus areas Citizens Private Bank update ■ ~75% of deposits are Commercial ■ DDA/CWI is 38% of deposit mix ~$0.4B Commerical 62% Consumer 38% $1.21 $— 33% DDA CWI Interest Bearing 12/31/23 as of 12/31/2023 as of 12/31/23 with a yield of ~8% ~$0.3B Deposits Strong growth; accretive DDA mix focused on operating relationships Lending Diversified, high quality growth led by strong commercial pipeline Wealth Scale through hiring and addition of targeted expertise P&L Achieves breakeven in 2H24 $1.2B Strong momentum into 2024 Positioning for continued success
18 customer acquisition rate at HSBC branches vs. CFG legacy major metro in 2023 Business initiatives update Driven significant operational efficiency and client experience gains through digital transformation; expanded functionality of Digital Butler service Strong league table results Middle market bookrunner by deal count Enhanced sponsor coverage model to drive Private Capital strategy, seeing positive results; hired coverage bankers and strengthened industry teams Advisory, subscription finance, LBOs, public market capital; increasing lead lefts from Sponsors 12 months ended December 31, 2023 Capturing the Private Capital Opportunity Growing Commercial payments Improving client satisfaction and efficiency through digitization Sponsor #2 Overall #10 Growing payments fees by expanding payment capabilities - push to alternative channels, better client connectivity, enterprise resource planning (ERP)-based capabilities 2022 2023 Commercial payments fees 8% 95% Commercial client satisfaction, remains at all-time high Top 2-Box Score Building a leading NY/NJ Bank Elevated customer acquisition levels Gaining scale Outsized deposit growth 3% 14% Legacy Major Metro HSBC + ISBC 1.4x HSBC and ISBC consumer deposits per branch growth significantly outpaced legacy major metro branches in 2023 HSBC retail households per branch now exceeds legacy major metro 2,550 2,850 2,775 HSBC Conversion (Feb-22) HSBC (Dec-23) Legacy Major Metro (Dec-23)
19 Targeting ~1-1.5% growth in 2024 Underlying expense, a reduction of ~1.4% excluding the Private Bank impact Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 '19-21 TOP 6 2022 TOP 7 2023 TOP 8 2024 TOP 9 ~$200 TOP programs key to restoring positive operating leverage Transforming how we operate and deliver for customers and colleagues TOP program benefits $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$115 TOP 8 achieved pre-tax run-rate benefit of ~$115 million as of YE2023 TOP 9 targeting ~$135 million pre-tax run-rate benefit by YE2024 ~$135 TOP program/ expense management ■ Launched TOP 9; areas of focus include – Re-imagine operations with process reengineering, automation and AI – Simplify organization structure – Generate additional procurement efficiencies – Improve customer journeys utilizing generative AI – Exits of the Wholesale Mortgage and Auto businesses – Facilities rationalization ■ In addition, we are adjusting our expense base through further meaningful actions – ~650 headcount reduction in 4Q23 – Tightening on discretionary expense categories
20 ■ Non-Core portfolio of $11.1 billion retail loans at 12/31/23 – $1.2 billion QoQ decline in 4Q – ~4.2% WA loan yield (~95% fixed rate); ~5.8% WA funding cost ■ Retail products targeted for growth include areas with greatest relationship potential – Home equity, card, mortgage Balance sheet optimization - loans Non-Core and Consumer portfolios $12.3 $11.1 $7.6 $4.7 $9.3 $8.3 $5.3 $3.0 $3.0 $2.8 $2.3 $1.7 Education and Other Retail (Purchased) Indirect Auto 3Q23 4Q23 4Q24 4Q25 Focusing on relationship-based lending with attractive risk-adjusted returns1 Commercial BSO ■ Originations in 2023 were highly selective, with a focus on generating a higher-return profile – Front-book originations with mid-teens return profile, reflecting multi-product relationships – Increased lead roles / bilateral originations from ~47% in FY22 to ~60% in FY23 – Spreads improved ~50 bps 4Q23 YoY, with similar-to-improving credit profile ■ Exited ~$6 billion in commercial credit-only client relationships in 2023, including loan sales – Single-digit return profile Enhancing risk profile, liquidity and returns
21 FY2024 Outlook vs. 2023 2023 Underlying(1) 2024 Underlying outlook Net interest income $6,241 Down 6-9%; net swaps impact of ~4-5% NIM 3.10%; 4Q23 2.91% FY2024 average 2.80-2.85%; 4Q24 exit NIM ~2.85% Loans $152.2B average loans $146.0B spot loans Average loans down 2-3% reflecting Non-Core run off and the 2023 decline Spot loans up 3-5% driven by Private Bank and 2H24 Commercial activity Earning assets $201.7B average earning assets Average earning assets up slightly reflecting 2023 liquidity build Noninterest income $1,983 Up 6-9%, market dependent Noninterest expense $5,001 Up ~1-1.5% Net charge-off ratio 40 bps ~50 bps; ACL likely to see releases over course of year CET1 ratio(2) 10.6% ~10.5%; share repurchases dependent on market conditions and loan growth Tax rate 22.5% ~21-22% ■ FY2024 average real GDP of ~1-2%, CPI of ~2-3% and FY2024 unemployment rate of ~4% ■ Forward curve as of early January: – YE2024 Fed Funds target of 4.25% with 25 bp cuts in May, June, July, September and December – 10-year Treasury rate ~3.90% by YE2024 ■ Focusing on driving strategic initiatives, balance sheet optimization and deepening customer relationships ■ Expect to return to sequential positive operating leverage in 2H24, with PPNR trough in 2Q24 ■ Terminal deposit beta in 2Q24 before rate cuts of low 50s, with 2024 spot deposit growth of 1-2% Full-year 2024 outlook commentary Key 2024 economic and rate assumptions See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
22 $4,925 $(185) $85 CFG ex Private Bank FY23 TOP/ Other efficiencies Strategic investments Compensation/ Other CFG ex Private Bank FY24 $76 $76 Private Bank FY23 Full-year Impact Strategic investments Private Bank FY24 Underlying expenses in $s in millions Underlying expense outlook(1) Incremental expense growth impact of ~2.5-2.8% to total CFG Private Bank CFG ex Private Bank Down ~1.3-1.5% $5,001 $5,075 Total CFG FY23 Total CFG FY24 Total CFG Up ~1.0-1.5% ~ ~$25-$35 ~ ~$4,855 * *Adjustment to reflect annualized impact of Private Bank based on 2H23 expense run-rate See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. ~$48-$63 ~$208 ~ 63
23 $(75) $(50) $(25) $— $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Significant NII contribution from Non-Core and swaps in 2025 and beyond Terminated swaps (fixed impact; not dependent on rates) Active swaps - impact based on forward curve Expected incremental quarterly NII & NIM contribution from Non-Core and swaps portfolio relative to 4Q23* Non-Core portfolio - impact based on forward curve* Net impact $(50) $(25) $— $25 $50 $75 $100 $125 $150 $175 $200 $225 ** Excludes impact from the Core portfolio. Assumes forward curve as of early January which indicates a ~4.25% Fed funds rate by end of 2024 *Non-Core includes benefit from denominator effects; accounts for ~65% of the NIM tailwind by 4Q27 4Q24 4Q25 4Q26 4Q27 4Q23 to 4Q27 NIM Tailwind** Non-Core* ~25 bps Terminated swaps ~22 bps Active swaps ~10 bps Total ~57 bps + ~2 bps* + ~34bps Medium-term CFG NIM range Net Cumulative NIM Impact ~3.25-3.40% + ~57 bps Active swaps $ (48) Terminated swaps (117) Total swaps (165) Non-Core (45) Total NII $ (210) Net NIM impact ~(60) bps 4Q23 NII contribution $s in millions $s in millions + ~55 bps ~$(30) ~$110 ~$205 ~$210
24 Medium-term financial targets(1) Medium-term financial targets ROTCE(1) CET1 Dividend Payout Ratio Efficiency Ratio(1) ~16-18% ~10.0-10.5% ~35-40% Mid-50's % Key economic assumptions ■ Real GDP growth of ~1-2% for 2024; trending toward ~3% annually over the medium term ■ Unemployment rate of ~4% by YE2024; stable from there over the medium term ■ Expect Fed to finish cutting in 2025 after reaching Fed Funds target of ~3.25% by YE2025 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
25 Path to medium-term ROTCE target(1) ROTCE improvement drivers Legacy Core Private Bank Non-Core Total CFG Medium-term ROTCE ■ NII tailwind given swap portfolio run off ■ Positive operating leverage ■ Significant share repurchases ■ Prudent credit risk appetite (~35-40 bps NCOs) ~15-17% ~20-24% ■ Successful execution against business plan ■ Meaningful revenue growth ■ Positive operating leverage ■ Attractive credit profile ~16-18% ■ Runs off with capital and liquidity redeployed See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
26 1Q24 outlook vs. 4Q23 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. 4Q23 Underlying(1) 1Q24 Underlying outlook Net interest income $1,488MM ■ Down ~3%; reflects day count impact of ~$12MM Noninterest income $500MM ■ Up mid-single digits Noninterest expense $1,267MM ■ Up 1-2% reflecting seasonal factors Net charge-offs 46 bps ■ ~50 bps; ACL will continue to benefit from Non-Core run off CET1 ratio(2) 10.6% ■ ~10.5%; share repurchases expected of ~$300 million Tax rate 22.3% ■ ~21-22%
27 Investment thesis Citizens continues to have a series of unique initiatives that will lead to relative medium-term outperformance – Citizens Private Bank successfully launched and gathering momentum into 2024 – Well positioned in NYC metro to gain market share; performance tracking well – All other initiatives tracking well: Private Capital, Citizens Pay, Citizens Access, TOP 9 launched Citizens has a robust capital, liquidity and funding position Citizens has performed well since the IPO given its sound strategy, capable & experienced leadership and a strong customer-focused culture – Track record of strong execution – Commitment to operating and financial discipline – Excellence in our capabilities, highly competitive with mega-banks and peers Citizens is well positioned to deliver ~16 to 18% ROTCE over the medium-term given strategic initiatives and 2025 to 2027 NII tailwinds. Represents attractive opportunity for investors at current valuation and dividend yield – Committed to maintaining our strong capital and liquidity position, while further strengthening funding and performance with balance sheet optimization, including Non-Core strategy – Relative strength allows Citizens to take advantage of opportunities – Focused on deploying capital to best relationship/highest risk-adjusted return areas – Flexibility to continue returning capital to shareholders
Appendix ■ Financial Performance ■ Balance Sheet Optimization ■ Interest Rate Risk Management ■ Credit
29 Net income available to common shareholders and EPS $s in millions, except per share data ê3% $743 $721 3Q23 4Q23 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 ê2% $3.5 2 $3.5 6 ê4% $150.8 $148.0 3Q23 4Q23 $176.5 $177.1 3Q23 4Q23 1.08% 1.02% 0.84% 0.78% 3Q23 4Q23 15.3% 14.8% 12.5% 11.8% 3Q23 4Q23 $418 $396 $0.89 $0.85 3Q23 4Q23 ê5% Pre-provision profit $s in millions See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. ê67 bps ê6 bpsstable
30 $1,003 $721 4Q22 4Q23 Year-over-year Underlying results(1) Return on average total tangible assets ê28% Average loans $s in billions ê6% 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 ê47 bps $3.5 6 $157.1 $148.0 4Q22 4Q23 $179.0 $177.1 4Q22 4Q23 1.40% 1.02%1.25% 0.78% 4Q22 4Q23 20.1% 14.8%19.4% 11.8% 4Q22 4Q23 ê1% Pre-provision profit $s in millions ê756 bps $653 $396$1.32 $0.85 4Q22 4Q23 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. ê36% ê39%
31 $3,422 $3,223 FY2022 FY2023 Full year underlying results(1) Return on average total tangible assets ê6% Average loans $s in billions 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 ê25 bp $3.5 6 $149.3 $152.2 FY2022 FY2023 $172.1 $175.3 FY2022 FY2023 1.21% 1.13% 1.17% 0.92% FY2022 FY2023 é2% Pre-provision profit $s in millions ê288 bps $2,312 $1,848 $4.84 $3.88 FY2022 FY2023 ê20% ê20% *Excluding Private Bank & Non-Core has a (100) bps impact 16.4% 15.7% 13.5% FY2022 FY2023 é2% See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
32 4Q23 Scorecard *Excluded impact from FDIC special assessment 4Q23 Underlying outlook(1) 4Q23 Underlying results Net interest income Down ~2% Down ~2% Noninterest income Up 3-4%, market dependent Up 2% Noninterest expense Broadly stable* Flat Net charge-offs Mid-40s; ACL will continue to benefit from Non-Core loan run off 46 bps CET1 ratio(2) ~10.5% 10.6% Tax rate ~22% ~22.3% See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
33 Balance Sheet Optimization - Overview Deposits and wholesale funding (slide 34) Driving enhanced risk profile and returns Securities portfolio (slide 35) Capital (slide 36-37) 1 2 3 4 Loans (slide 20)
34 $180.7 $178.2 $(3.5) $2.6 $177.3 4Q22 3Q23 BSO actions Core growth 4Q23 Balance sheet optimization - deposits and wholesale funding Solid deposit performance in 2023 $15.9 $17.6 $14.0 $5.6 $5.3 $5.2 $1.8 $1.8 $1.8 $3.2 $2.7 $8.5 $7.0 $3.8 Senior debt Subordinated debt Other Collateralized borrowings FHLB 4Q22 3Q23 4Q23 Favorable remixing of wholesale funding 3Q23 YTD deposits -1.4%, outperforming H8* at -3.6% ■ FHLB down $4.7 billion in 2023 reflecting success in improving LDR with BSO initiatives ■ Raised ~$3 billion auto collateralized borrowings with two 2023 issuances – Down ~$0.6 billion QoQ with auto run off – Additional $1.5 billion issuance executed in January 2024 ■ Senior debt relatively stable in 2023; planning programmatic issuance for 2024 and beyond +1.5% QoQ deposit growth ex BSO actions $3.3B QoQ *Federal Reserve H8 data represents Large Bank deposit balances Commentary Commentary 2 3 ■ Improvements in deposit franchise demonstrated with better core deposit performance than most peers, while maintaining peer-like deposit beta ■ Efforts to optimize the liquidity value of deposits continue – During 4Q23, exited ~$3.5B in deposits with financial institutions and municipalities $4.7B YoY FHLB $s in billions $s in billions
35 Securities portfolio - high quality, low-risk store of liquidity; enhanced hedging to protect capital Balance sheet optimization - securities portfolio as of 12/31/23 ...with a high-quality portfolio ■ Maintain strong liquidity profile – LCR under Category I Bank rules at 12/31/23 in excess of requirements – Given likely regulatory changes with AOCI opt-out removal, actions were taken in 4Q to lower portfolio duration and protect capital from AFS mark-to-market volatility ◦ Added $5.4B pay-fixed swaps at ~3.8% WA pay rate ◦ Majority of cash flows invested on a floating- rate basis Investment portfolio strategy ■ 96% U.S. Treasury, Gov't or Gov't-backed securities ■ ~84% fixed-rate; ~71% fixed-rate with hedges ■ ~75% AFS/~25% HTM Highly liquid and well-diversified Maintaining strong liquidity, while shortening duration... U.S Treasuries 11% U.S Govt Guaranteed 21% "GSE" Fannie Mac and Freddie Mac 64% Other 4% $42 $47 $48 $32 $30 $27 $5$1 $3 $6$9 $14 $10 Cash Floating Fixed Hedged Fixed 4Q22 3Q23 4Q23Duration Securities 5.8 5.2 3.9 Cash & Securities 4.7 3.8 3.2 ~$38B(1) securities portfolio 2.66% 2.74% 2.81% 2.95% 3.25% 2.56% 2.41% 2.52% 2.57% CFG Peer Median 4Q22 1Q23 2Q23 3Q23 4Q23 ...and improving securities yields relative to peer median... $38B(1) 4 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. $s in billions
36 Balance sheet optimization - capital Capital ratios remain near top of peer group Tangible Common Equity CET1 Ratio adjusted for AOCI opt-out removal CET1 Ratio(1) 10.9% 10.8% 10.6% 10.4% 10.3% 10.1% 9.9% 9.8% 9.8% 9.8% 9.7% Peer 1 Peer 2 CFG (4Q23) CFG (3Q23) Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 10.6% 9.0% 8.3% 7.9% 7.8% 7.5% 7.0% 6.5% 6.2% 6.2% 6.0% Peer 1 CFG (4Q23) CFG (3Q23) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 7.8% 6.7% 5.9% 5.8% 5.7% 5.7% 5.0% 5.0% 4.6% 4.5% 4.0% Peer 1 CFG (4Q23) CFG (3Q23) Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ■ Strong capital position and BSO activities have facilitated significant capital return to shareholders – ~95% shareholder payout ratio in 2023 on an Underlying basis reflects ~$808 million in dividends and ~$906 million in share repurchases ■ Well positioned for changing regulatory environment – CET1 ratio under current rules of 10.6%(1), and 9.0% adjusted for AOCI opt-out removal; among the strongest within the peer group – Expect both ratios to converge to the 10.0-10.5% range over the medium term 5A Peer data as of September 30, 2023. Peers include CMA, FITB, HBAN, KEY, MTB, PNC, RF, TFC and USB. See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
37 Balance sheet optimization - capital Protecting CET1 - AFS marks; duration decreasing with securities portfolio hedging; less sensitivity to rates. Illustrate how sensitivity to a 50 bp move has fallen from 12/31/22 to 9/30/23 to 12/31/23 Capital will benefit from projected AOCI accretion AOCI accretion benefit to generate significant capital... AOCI burndown contribution to TCE and CET1 - considering pulling forward appendix detail here ...As recent actions limit AOCI volatility to protect capital$(2.3) $(1.8) $(1.5) $(1.3) $(0.3) $(0.3) $(0.3) $(0.3) $(1.1) $(0.5) $(0.1) Swaps** Pension Securities 12/31/2023 12/31/2024 12/31/2025 12/31/2026 $(3.7) $(2.7) $(2.0) $(1.6) ~56% TCE CET1* $(2.7) $(2.2) $(1.8) $(1.6) 5B Commentary ■ Expect significant capital generation via accretion to AOCI as unrealized losses "burn off" – ~$1 billion in unrealized losses related to securities and pension expected to "burn off" by YE2026, adding ~60* bps to the CET1 ratio adjusted for AOCI opt-out removal ■ Recent hedging actions in Q4 to reduce duration of securities portfolio protects capital by limiting volatility in AOCI – Immediate 50 bps parallel increase in rates would negatively impact CET1 ratio adjusted for AOCI opt-out removal by ~25 bps Burn-off by YE2026~38% *CET1 adjusted for AOCI opt-out removal accretion based on forward curve in early January; CET1 ratio impact for illustrative purposes assumes the RWA balance at 12/31/23 Projected accretion based on forward curve at 12/31/2023(1) Accretes to CET1* **Unrealized losses in swap portfolio includes both active and terminated swaps See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
38 ■ Maintaining significant protection to downside in rates well into 2026 with receive-fixed swap portfolio Interest rate risk management - swaps $16.5 $25.8 $30.1 $21.9 $7.6 2023 2024 2025 2026 2027 $20.5 $21.1 $21.9 $29.5 $30.5 4Q23 1Q24 2Q24 3Q24 4Q24 W.A. receive-fixed rate at 12/31/23 4.3% 3.7% 3.1% 3.1% 3.1% 4.2% 3.2% 3.2% 3.5% 3.7% NII impact from active swaps ($MM)* $(48) $(88) $(121) $(135) $(111) $(123) $(454) $(116) $56 $48 NII impact from terminated swaps ($MM) $(117) $(115) $(115) $(115) $(114) $(441) $(459) $(426) $(230) $(40) Total NII impact ($MM) $(165) $(203) $(235) $(250) $(225) $(564) $(913) $(542) $(174) $8 Protecting NII from adverse outcomes while reducing earnings volatility through economic cycles Receive-fixed cash flow swaps (avg. notional in $ billions at 12/31/23) ■ Increase in the 2024 swap position is incorporated in the FY24 NII guidance ■ Significant contribution to NII over 2025 to 2027 as the Fed normalizes rates and swaps run off – Estimated incremental annual benefit of ~$371 million in 2025; ~$368 million in 2026; and ~$182 million in 2027 – The funded balance sheet is inherently asset sensitive which partly offsets these benefits *Based on the forward curve in early January; includes impacts from variation margin and daily compounding effects with SOFR
39 $74.4B Commercial credit portfolio See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Commercial portfolio risk ratings(2) $s in billions 58% 59% 57% 25% 17% 17% 14% 17% 19% 3% 7% 7% 4Q19 3Q23 4Q23 B- and lower B+ to B BB+ to BB- AAA+ to BBB- $57.5 $74.4 Highlights $77.5($ in billions) Balances % of total CFG C&I Finance and Insurance Capital call facilities $ 5.8 4 % Other Finance and Insurance 6.0 4 Other Manufacturing 3.6 2 Technology 3.3 2 Accommodation and Food Services 2.9 2 Health, Pharma, Social Assistance 2.6 2 Professional, Scientific, and Technical 2.3 1 Wholesale Trade 2.4 2 Retail Trade 2.4 2 Other Services 2.1 1 Energy & Related 2.0 1 Rental and Leasing 1.1 1 Consumer Products Manufacturing 0.9 1 Administrative and Waste Management 1.5 1 Arts, Entertainment, and Recreation 1.6 1 Automotive 0.9 1 Other (1) 2.5 2 Total C&I $ 43.8 30 % CRE Multi-family $ 9.4 6 % Office 5.9 4 Industrial 4.0 3 Retail 3.4 2 Co-op 1.8 1 Data Center 0.8 1 Hospitality 0.6 — Other (1) 3.6 3 Total CRE $ 29.5 20 % Total Commercial loans & leases $ 74.4 51 % Total CFG $ 146.0 100 % 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
40 Suburban Class C 2% CBD Class C 4% Suburban Class A 42% CBD Class A 14% Suburban Class B 26% CBD Class B 12% 54% 100% 88% 100% 79% 61% 13% 42% 78% 85% 46% —% 12% —% 21% 39% 87% 58% 22% 15% New York, NY Washington, DC Dallas, TX Los Angeles, CA Philadelphia, PA Atlanta, GA Chicago, IL Boston, MA Baltimore, MD Seattle, WA Suburban CBD NY 14.0% VA 11.8% NJ 10.0% CA 9.5% TX 8.6% MD 6.3% PA 5.5% GA 4.7% IL 3.9% MA 3.5% OH 3.3% NC 2.7% WA 2.6% AZ 2.5% CO 2.3% Other 8.7% Commercial Real Estate - $5.9B Office portfolio: well diversified $3.6B General Office by state Other MN CT FL VT MO IN DC MI UT SC TN RI DE 24% 15% 61% General Office $3.6B Credit Tenant $1.4B Life Sciences $0.9B Property type $3.6B General Office class & location Top 10 General Office MSA breakdown Outstanding *Manhattan is ~$118 million $ 792 527 201 193 178 171 143 117 108 95 $ in millions (As of 12/31/23)
41 38% 43% 43% 33% 32% 32% 18% 16% 16% 5% 4% 4%6% 5% 5% 4Q19 3Q23 4Q23 43% 21% 12% 4% 13% 7% $71.5B Retail credit portfolio 800+ 740-799 680-739 640-679 <640 $61.6 $71.5 $s in billions $72.3 Home equity Retail loans(1) Residential mortgage 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 ~53% ■ Home equity – FICO ~765 – ~37% secured by 1st lien – ~98% CLTV less than 80% – ~87% CLTV less than 70% ■ Auto – FICO ~740 ■ Education – FICO ~785 ■ Other retail: – Credit card – FICO ~735 – Citizens Pay – FICO ~725; incorporates loss sharing High quality, diverse portfolio * Super-prime/prime defined as FICO of 680 or above at origination Retail portfolio FICOs(2) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
42 Allocation of allowance for credit losses by product type September 30, 2023 December 31, 2023 $s in millions Loans and Leases Allowance Coverage Loans and Leases Allowance Coverage Commercial and industrial(1) $ 46,753 $707 1.51 % $ 43,826 $666 1.52 % Commercial real estate 29,486 692 2.35 29,471 733 2.49 Leases 1,218 26 2.14 1,148 26 2.24 Total commercial 77,457 1,425 1.84 74,445 1,425 1.91 Residential mortgages 30,983 181 0.59 31,332 181 0.58 Home equity 14,729 144 0.97 15,040 137 0.91 Automobile 9,290 56 0.60 8,258 57 0.69 Education 12,134 270 2.23 11,834 266 2.25 Other retail 5,153 242 4.69 5,050 252 4.98 Total retail loans 72,289 893 1.23 71,514 893 1.25 Allowance for credit losses(2) $149,746 $2,318 1.55 % $145,959 $2,318 1.59 % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
43 Delinquency by product type See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. September 30, 2023 (%) December 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 99.40 % 0.05 % 0.02 % 0.01 % 0.52 % 99.14 % 0.14 % 0.04 % 0.01 % 0.67 % Commercial real estate 98.01 0.25 0.14 0.01 1.59 97.53 0.51 0.20 0.14 1.62 Leases 99.75 — — — 0.25 99.65 0.09 — — 0.26 Total commercial 98.87 0.13 0.07 0.01 0.92 98.52 0.28 0.10 0.06 1.04 Residential mortgages(1) 98.17 0.36 0.16 0.70 0.61 97.34 0.90 0.38 0.82 0.56 Home equity 97.43 0.56 0.19 — 1.82 97.34 0.55 0.22 — 1.89 Automobile 97.21 1.58 0.54 — 0.67 96.94 1.74 0.58 — 0.74 Education 99.19 0.39 0.21 0.02 0.19 99.14 0.41 0.19 0.02 0.24 Other retail 97.30 0.95 0.60 0.41 0.74 97.02 0.97 0.67 0.57 0.77 Total retail 98.01 0.60 0.26 0.33 0.80 97.56 0.85 0.36 0.40 0.83 Total 98.44 % 0.36 % 0.16 % 0.17 % 0.87 % 98.05 % 0.56 % 0.23 % 0.23 % 0.93 %
44 Notable items(1) Quarterly and full-year results reflect notable items primarily related to integration costs associated with recent acquisitions, as well as TOP revenue and efficiency initiatives and other expense reduction actions. In addition, fourth quarter 2023 includes a notable item for the FDIC special assessment. Full-year 2022 results include notable items representing the day-one CECL provision expense (“double count”) related to the HSBC and ISBC transactions. These notable items have been excluded from reported results to better reflect Underlying operating results. See pages 45-47 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 4Q23 3Q23 4Q22 FY 2023 FY 2022 $s in millions, except per share data Pre-tax After- tax Pre-tax After- tax Pre-tax After- tax Pre-tax After- tax Pre-tax After- tax Noninterest income $ — $ — $ — $ — $ — $ — $ — $ — $ (31) $ (23) EPS Impact -Noninterest income $ — $ — $ — $ — $ (0.05) Salaries & benefits $ (2) $ (1) $ (4) $ (3) $ (13) $ (9) $ (15) $ (11) $ (98) $ (72) Equipment and software — — — — (1) (1) (4) (3) (1) (1) Outside services (3) (2) (4) (3) (15) (12) (43) (31) (89) (67) Occupancy — — — — — — (41) (30) (2) (1) Other expense — — — — (6) (4) (1) (1) (23) (16) Noninterest expense $ (5) $ (3) $ (8) $ (6) $ (35) $ (26) $ (104) $ (76) $ (213) $ (157) EPS Impact - Noninterest expense $ (0.01) $ (0.02) $ (0.06) $ (0.16) $ (0.34) ISBC/HSBC Day 1 CECL provision expense (“double count”) $ — $ — $ — $ — $ — $ — $ — $ — $ (169) $ (126) EPS Impact - Provision for credit losses $ — $ — $ — $ — $ (0.26) Tax integration cost — — — — — — — — — (6) EPS Impact - Tax integration cost $ — $ — $ — $ — $ (0.01) Total Integration Costs $ (5) $ (3) $ (8) $ (6) $ (35) $ (26) $ (104) $ (76) $ (413) $ (312) EPS Impact - Total Integration-related $ (0.01) $ (0.02) $ (0.06) $ (0.16) $ (0.66) Other notable items - TOP & Other 4Q23 3Q23 4Q22 FY 2023 FY 2022 $s in millions, except per share data Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Tax notable items $ — $ 17 $ — $ — $ — $ — $ — $ 17 $ — $ (3) Salaries & benefits $ (30) $ (22) $ (1) $ — $ (2) $ (2) $ (52) $ (38) $ (12) $ (9) Equipment and software (37) (27) (6) (5) (1) — (47) (35) (9) (6) Outside services (10) (7) (3) (3) (2) (1) (25) (19) (24) (18) Occupancy (20) (15) (2) (2) (2) (2) (29) (22) (3) (3) FDIC Assessment(1) (225) (167) — — — — (225) (167) — — Other expense (18) (13) (2) (2) (1) (1) (24) (17) (1) (1) Noninterest expense $ (340) $ (251) $ (14) $ (12) $ (8) $ (6) $ (402) $ (298) $ (49) $ (37) Total Other Notable Items $ (340) $ (234) $ (14) $ (12) $ (8) $ (6) $ (402) $ (281) $ (49) $ (40) EPS Impact - Other Notable Items $ (0.50) $ (0.02) $ (0.01) $ (0.59) $ (0.08) Total Notable Items $ (345) $ (237) $ (22) $ (18) $ (43) $ (32) $ (506) $ (357) $ (462) $ (352) Total EPS Impact $ (0.51) $ (0.04) $ (0.07) $ (0.75) $ (0.74) (1) The FDIC special assessment earnings per share impact is $(0.35) for fourth quarter 2023 and full year 2023.
45 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. 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 - 4Q23 and FY2023 GAAP financial summary 1) See general note a). Notes on slide 4 - 4Q23 and FY23 Underlying financial summary 1) See note on non-GAAP financial measures. Notes on slide 5 - 4Q23 Underlying financial performance detail 1) See note on non-GAAP financial measures. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2023, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d). Notes on slide 6 - 2023 Underlying financial performance detail 1) See note on non-GAAP financial measures. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2023, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d). Notes on slide 7 - 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 9 - Noninterest income 1) Includes bank-owned life insurance income and other miscellaneous income for all periods presented. Notes on slide 10 - Noninterest expense 1) See above note on non-GAAP financial measures. See Notable Items slide 44 for more detail. Notes on slide 13 - 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. 3) Includes branch-based checking with interest and savings. Notes on slide 14 - Credit quality overview 1) Allowance for credit losses to nonaccrual loans and leases. Notes on slide 16 - Capital position continues to strengthen 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).
46 Notes continued Notes on slide 21 - FY 2024 Outlook vs. 2023 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 22 - Underlying expense outlook 1) See note on non-GAAP financial measures. Notes on slide 24 - Medium-term financial targets 1) See note on non-GAAP financial measures. Notes on slide 25 - Path to medium-term ROTCE target 1) See note on non-GAAP financial measures. Notes on slide 26 - 1Q24 outlook vs. 4Q23 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 29 - Linked-quarter Underlying results 1) See note on non-GAAP financial measures. Notes on slide 30 - Year-over-year Underlying results 1) See note on non-GAAP financial measures. Notes on slide 31 - Full year underlying results 1) See note on non-GAAP financial measures. Notes on slide 32 - 4Q23 Scorecard 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 35 - Balance sheet optimization - securities portfolio 1) Represents fair value balances. Notes on slide 36 - Balance sheet optimization - capital 1) See general note d). Notes on slide 37 - Balance sheet optimization - capital 1) See general note c). Notes on slide 39 - Commercial credit portfolio 1) Includes deferred fees and costs. 2) Reflects period end balances. Notes on slide 41 - Retail credit porftolio 1) See general note c). 2) Reflects period end balances. Notes on slide 42 - 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 reflects total allowance for credit losses for the respective portfolio. Notes on slide 43 - Delinquency by product type 1) 90+ days past due and accruing includes $243 million and $216 million of loans fully or partially guaranteed by the FHA, VA, and USDA at December 31, 2023 and September 30, 2023, respectively. Notes on slide 44 - Notable items 1) See note on non-GAAP financial measures.
47 Notes continued Notes on slide 56 - Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core 1) Consumer Banking excludes Private Bank. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2023, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d). Notes on slide 57 - Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core 1) Consumer Banking excludes Private Bank. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2023, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d).
48 Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 4Q22 3Q23 4Q22 2023 2022 2022 $ % $ % $ % Noninterest income, Underlying: Noninterest income (GAAP) A $500 $492 $505 $8 2% ($5) (1%) $1,983 $2,009 ($26) (1%) Less: Notable items — — — — — — — — (31) 31 100 Noninterest income, Underlying (non-GAAP) B $500 $492 $505 $8 2% ($5) (1%) $1,983 $2,040 ($57) (3%) Total revenue, Underlying: Total revenue (GAAP) C $1,988 $2,014 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,021 $203 3% Less: Notable items — — — — — — — — (31) 31 100 Total revenue, Underlying (non-GAAP) D $1,988 $2,014 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,052 $172 2% Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,612 $1,293 $1,240 $319 25% $372 30% $5,507 $4,892 $615 13% Less: Notable items 345 22 43 323 NM 302 NM 506 262 244 93 Noninterest expense, Underlying (non-GAAP) F $1,267 $1,271 $1,197 ($4) —% $70 6% $5,001 $4,630 $371 8% Pre-provision profit: Total revenue (GAAP) C $1,988 $2,014 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,021 $203 3% Less: Noninterest expense (GAAP) E 1,612 1,293 1,240 319 25 372 30 5,507 4,892 615 13 Pre-provision profit (GAAP) $376 $721 $960 ($345) (48%) ($584) (61%) $2,717 $3,129 ($412) (13%) Pre-provision profit, Underlying: Total revenue, Underlying (non-GAAP) D $1,988 $2,014 $2,200 ($26) (1%) ($212) (10%) $8,224 $8,052 $172 2% Less: Noninterest expense, Underlying (non-GAAP) F 1,267 1,271 1,197 (4) — 70 6 5,001 4,630 371 8 Pre-provision profit, Underlying (non-GAAP) $721 $743 $1,003 ($22) (3%) ($282) (28%) $3,223 $3,422 ($199) (6%) Provision for credit losses, Underlying: Provision for credit losses (GAAP) $171 $172 $132 ($1) (1%) $39 30% $687 $474 $213 45% Less: Notable items — — — — — — — — 169 (169) (100) Provision for credit losses, Underlying (non-GAAP) $171 $172 $132 ($1) (1%) $39 30% $687 $305 $382 125% Income before income tax expense, Underlying: Income before income tax expense (GAAP) G $205 $549 $828 ($344) (63%) ($623) (75%) $2,030 $2,655 ($625) (24%) Less: Income (expense) before income tax expense (benefit) related to notable items (345) (22) (43) (323) NM (302) NM (506) (462) (44) (10) Income before income tax expense, Underlying (non- GAAP) H $550 $571 $871 ($21) (4%) ($321) (37%) $2,536 $3,117 ($581) (19%) Income tax expense, Underlying: Income tax expense (GAAP) I $16 $119 $175 ($103) (87%) ($159) (91%) $422 $582 ($160) (27%) items (108) (4) (11) (104) NM (97) NM (149) (110) (39) (35) Income tax expense, Underlying (non-GAAP) J $124 $123 $186 $1 1% ($62) (33%) $571 $692 ($121) (17%) Net income, Underlying: Net income (GAAP) K $189 $430 $653 ($241) (56%) ($464) (71%) $1,608 $2,073 ($465) (22%) Add: Notable items, net of income tax benefit 237 18 32 219 NM 205 NM 357 352 5 1 Net income, Underlying (non-GAAP) L $426 $448 $685 ($22) (5%) ($259) (38%) $1,965 $2,425 ($460) (19%) Underlying: Net income available to common stockholders (GAAP) M $159 $400 $621 ($241) (60%) ($462) (74%) $1,491 $1,960 ($469) (24%) Add: Notable items, net of income tax benefit 237 18 32 219 NM 205 NM 357 352 5 1 Underlying (non-GAAP) N $396 $418 $653 ($22) (5%) ($257) (39%) $1,848 $2,312 ($464) (20%)
49 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Operating leverage: Total revenue (GAAP) C $1,988 $2,014 $2,200 ($26) (1.39%) ($212) (9.70%) $8,224 $8,021 $203 2.53% Less: Noninterest expense (GAAP) E 1,612 1,293 1,240 319 24.60 372 30.00 5,507 4,892 615 12.58 Operating leverage (25.99%) (39.70%) (10.05%) Operating leverage, Underlying: Total revenue, Underlying (non-GAAP) D $1,988 $2,014 $2,200 ($26) (1.39%) ($212) (9.70%) $8,224 $8,052 $172 2.13% Less: Noninterest expense, Underlying (non-GAAP) F 1,267 1,271 1,197 (4) (0.30) 70 5.82 5,001 4,630 371 8.00 Operating leverage, Underlying (non-GAAP) (1.09%) (15.52%) (5.87%) Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 81.13 % 64.21% 56.36 % 1,692 bps 2,477 bps 66.97 % 60.99 % 598 bps Efficiency ratio, Underlying (non-GAAP) F/D 63.77 63.08 54.42 69 bps 935 bps 60.81 57.51 330 bpsEffective income tax rate and effective income tax rate, Underlying: Effective income tax rate I/G 7.59% 21.51% 21.16 % (1,392) bps (1,357) bps 20.76 % 21.93 % (117) bps Effective income tax rate, Underlying (non-GAAP) J/H 22.25 21.69 21.37 56 bps 88 bps 22.48 22.19 29 bps Return on average tangible common equity and return on average tangible common equity, Underlying: Average common equity (GAAP) O $21,209 $21,177 $21,276 $32 —% ($67) —% $21,592 $21,724 ($132) (1%) Less: Average goodwill (GAAP) 8,188 8,188 8,171 — — 17 — 8,184 7,872 312 4 Less: Average other intangibles (GAAP) 163 173 199 (10) (6) (36) (18) 177 181 (4) (2) Add: Average deferred tax liabilities related to goodwill (GAAP) 421 422 424 (1) — (3) (1) 422 413 9 2 Average tangible common equity P $13,279 $13,238 $13,330 $41 —% ($51) —% $13,653 $14,084 ($431) (3%) Return on average tangible common equity M/P 4.72 % 12.00% 18.46 % (728) bps (1,374) bps 10.92 % 13.91 % (299) bps Return on average tangible common equity, Underlying (non-GAAP) N/P 11.84 12.51 19.40 (67) bps (756) bps 13.53 16.41 (288) bps Return on average total assets and return on average total assets, Underlying: Average total assets (GAAP) Q $223,653 $220,162 $224,970 $3,491 2% ($1,317) (1%) $222,221 $215,061 $7,160 3% Return on average total assets K/Q 0.33 % 0.78% 1.15 % (45) bps (82) bps 0.72 % 0.96 % (24) bps Return on average total assets, Underlying (non-GAAP) L/Q 0.76 0.81 1.21 (5) bps (45) bps 0.88 1.13 (25) bps $s in millions, except share, per share and ratio data
50 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) Q $223,653 $220,162 $224,970 $3,491 2% ($1,317) (1%) $222,221 $215,061 $7,160 3% Less: Average goodwill (GAAP) 8,188 8,188 8,171 — — 17 — 8,184 7,872 312 4 Less: Average other intangibles (GAAP) 163 173 199 (10) (6) (36) (18) 177 181 (4) (2) Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 421 422 424 (1) — (3) (1) 422 413 9 2 Average tangible assets R $215,723 $212,223 $217,024 $3,500 2% ($1,301) (1%) $214,282 $207,421 $6,861 3% Return on average total tangible assets K/R 0.35 % 0.81% 1.19 % (46) bps (84) bps 0.75 % 1.00 % (25) bps Return on average total tangible assets, Underlying (non-GAAP) L/R 0.78 0.84 1.25 (6) bps (47) bps 0.92 1.17 (25) bps Tangible book value per common share: Common shares - at period-end (GAAP) S 466,418,055 466,221,795 492,282,158 196,260 —% (25,864,103) (5%) 466,418,055 492,282,158 (25,864,103) (5%) Common stockholders' equity (GAAP) $22,329 $20,864 $21,676 $1,465 7 $653 3 $22,329 $21,676 $653 3 Less: Goodwill (GAAP) 8,188 8,188 8,173 — — 15 — 8,188 8,173 15 — Less: Other intangible assets (GAAP) 157 167 197 (10) (6) (40) (20) 157 197 (40) (20) Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) 433 421 422 12 3 11 3 433 422 11 3 Tangible common equity T $14,417 $12,930 $13,728 $1,487 12% $689 5% $14,417 $13,728 $689 5% Tangible book value per common share T/S $30.91 $27.73 $27.88 $3.18 11% $3.03 11% $30.91 $27.88 $3.03 11% Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying: Average common shares outstanding - basic (GAAP) U 466,234,324 469,481,085 493,293,981 (3,246,761) (1%) (27,059,657) (5%) 475,089,384 475,959,815 (870,431) —% Average common shares outstanding - diluted (GAAP) V 468,159,167 471,183,719 495,478,398 (3,024,552) (1) (27,319,231) (6) 476,693,148 477,803,142 (1,109,994) — Net income per average common share - basic (GAAP) M/U $0.34 $0.85 $1.26 ($0.51) (60) ($0.92) (73) $3.14 $4.12 ($0.98) (24) Net income per average common share - diluted (GAAP) M/V 0.34 0.85 1.25 (0.51) (60) (0.91) (73) 3.13 4.10 (0.97) (24) Net income per average common share - basic, Underlying (non-GAAP) N/U 0.85 0.89 1.32 (0.04) (4) (0.47) (36) 3.89 4.86 (0.97) (20) Net income per average common share - diluted, Underlying (non-GAAP) N/V 0.85 0.89 1.32 (0.04) (4) (0.47) (36) 3.88 4.84 (0.96) (20) Dividend payout ratio and dividend payout ratio, Underlying: Cash dividends declared and paid per common share W $0.42 $0.42 $0.42 $— —% $— —% $1.68 $1.62 $0.06 4 Dividend payout ratio W/(M/U) 124 % 49 % 33 % 7,412 bps 9,053 bps 54 % 39 % 1,450 bps Dividend payout ratio, Underlying (non-GAAP) W/(N/U) 49 47 32 200 bps 1,700 bps 43 33 1,000 bps $s in millions, except share, per share and ratio data
51 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS FULL YEAR 4Q23 Change 2023 Change 4Q23 3Q23 4Q22 3Q23 4Q22 2023 2022 2022 $/bps % $/bps % $/bps % Other income, Underlying Other income (GAAP) $20 $18 $36 $2 11% ($16) (44%) $78 $82 ($4) (5%) Less: Notable items — — — — — — — — (31) 31 100 Other income, Underlying (non-GAAP) $20 $18 $36 $2 11% ($16) (44%) $78 $113 ($35) (31%) Salaries and employee benefits, Underlying: Salaries and employee benefits (GAAP) $667 $659 $633 $8 1% $34 5% $2,599 $2,549 $50 2% Less: Notable items 32 5 15 27 NM 17 113 67 110 (43) (39) Salaries and employee benefits, Underlying (non-GAAP) $635 $654 $618 ($19) (3%) $17 3% $2,532 $2,439 $93 4% Equipment and software, Underlying: Equipment and software (GAAP) $215 $191 $170 $24 13% $45 26% $756 $648 $108 17% Less: Notable items 37 6 2 31 NM 35 NM 51 10 41 NM Equipment and software, Underlying (non- GAAP) $178 $185 $168 ($7) (4%) $10 6% $705 $638 $67 11% Outside services, Underlying: Outside services (GAAP) $174 $160 $170 $14 9% $4 2% $687 $700 ($13) (2%) Less: Notable items 13 7 17 6 86 (4) (24) 68 113 (45) (40) Outside services, Underlying (non-GAAP) $161 $153 $153 $8 5% $8 5% $619 $587 $32 5% Occupancy, Underlying: Occupancy (GAAP) $125 $107 $110 $18 17% $15 14% $492 $410 $82 20% Less: Notable items 20 2 2 18 NM 18 NM 70 5 65 NM Occupancy, Underlying (non-GAAP) $105 $105 $108 $— —% ($3) (3%) $422 $405 $17 4% Other operating expense, Underlying: Other operating expense (GAAP) $431 $176 $157 $255 145% $274 175% $973 $585 $388 66% Less: Notable items 243 2 7 241 NM 236 NM 250 24 226 NM Other operating expense, Underlying (non- GAAP) $188 $174 $150 $14 8% $38 25% $723 $561 $162 29% $s in millions, except share, per share and ratio data
52 Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 2Q23 1Q23 Noninterest income, Underlying: Noninterest income (GAAP) A $506 $485 Less: Notable items — — Noninterest income, Underlying (non-GAAP) B $506 $485 Total revenue, Underlying: Total revenue (GAAP) C $2,094 $2,128 Less: Notable items — — Total revenue, Underlying (non-GAAP) D $2,094 $2,128 Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,306 $1,296 Less: Notable items 73 66 Noninterest expense, Underlying (non-GAAP) F $1,233 $1,230 Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 62.3 % 60.9% Efficiency ratio, Underlying (non-GAAP) F/D 58.9 57.8
53 Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal 4Q23 3Q23 CET1 Ratio adjusted for AOCI opt-out removal CET1 capital $ 18,358 $ 18,360 Less: AFS securities - AOCI 1,511 2,341 HTM securities - AOCI(1) 827 854 DTA for AFS/HTM securities 14 26 Pension 333 367 DTA for Pension 1 2 CET 1 capital adjusted for AOCI opt-out removal A $15,672 $14,770 Risk-weighted assets 172,601 176,407 Less: HTM securities - AOCI 146 151 AFS securities - AOCI 243 376 DTA for AFS/HTM securities (1,901) (2,585) Pension 333 364 DTA for Pension (287) (318) Risk-weighted assets adjusted for AOCI opt-out removal B $174,067 $178,419 CET1 Ratio adjusted for AOCI opt-out removal A/B 9.0 % 8.3 % $s in millions, except share, per share and ratio data (1 "HTM securities - AOCI" refers to unrealized losses recognized on securities before transfer to HTM
54 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 4Q23 3Q23 4Q22 2023 2022 Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) $159 $400 $621 $1,491 $1,960 Add: Notable items, net of income tax benefit 237 18 32 357 352 Net income available to common stockholders, Underlying (non-GAAP) A $396 $418 $653 $1,848 $2,312 Private Bank Net income available to common stockholders, (GAAP) (27) (27) — (59) — Less: Private Bank Notable Items (1) (1) — (7) — Private Bank Net income available to common stockholders, Underlying (non-GAAP) B ($26) ($26) $— ($52) $— Non-Core Net income available to common stockholders, (GAAP) C ($72) ($67) ($23) ($244) $142 Net income available to common stockholders excluding Private Bank & Non-Core, Underlying (non-GAAP) D=(A-B-C) $494 $511 $676 $2,144 $2,170 Return on average tangible common equity and return on average tangible common equity, Underlying: Average common equity (GAAP) $21,209 $21,177 $21,276 $21,592 $21,724 Less: Average goodwill (GAAP) 8,188 8,188 8,171 8,184 7,872 Less: Average other intangibles (GAAP) 163 173 199 177 181 Add: Average deferred tax liabilities related to goodwill (GAAP) 421 422 424 422 413 Average tangible common equity E $13,279 $13,238 $13,330 $13,653 $14,084 Return on average tangible common equity excluding Private Bank & Non-Core, Underlying (non-GAAP) D/E 14.8 % 15.3 % 20.1 % 15.7 % 15.4 %
55 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 4Q23 3Q23 4Q22 2023 2022 Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) $223,653 $220,162 $224,970 $222,221 $215,061 Less: Average goodwill (GAAP) 8,188 8,188 8,171 8,184 7,872 Less: Average other intangibles (GAAP) 163 173 199 177 181 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 421 422 424 422 413 Average tangible assets $215,723 $212,223 $217,024 $214,282 $207,421 Less: Private Bank Average total assets (GAAP) 83 5 — 22 — Less: Non-Core Average total assets (GAAP) 11,776 13,113 16,752 13,745 18,121 Average tangible assets excluding Private Bank & Non-Core, Underlying (non-GAAP) A $203,864 $199,106 $200,272 $200,515 $189,300 Net income, Underlying: Net income (GAAP) $189 $430 $653 $1,608 $2,073 Add: Notable items, net of income tax benefit 237 18 32 357 352 Net income, Underlying (non-GAAP) B $426 $448 $685 $1,965 $2,425 Private Bank Net income (GAAP) (27) (27) — (59) — Less: Private Bank Notables (1) (1) — (7) — Net income Private Bank, Underlying (non-GAAP) C ($26) ($26) $— ($52) $— Non-Core Net income (GAAP) D (72) (67) (23) (244) 142 Net income excluding Private Bank & Non-Core, Underlying (non-GAAP) E=B-C-D $524 $541 $708 $2,261 $2,283 Return on average total tangible assets excluding Private Bank & Non-Core, Underlying (non-GAAP) E/A 1.02 % 1.08 % 1.40 % 1.13 % 1.21 %
56 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core* 4Q 2023 (GAAP) 4Q 2023 Notables 4Q 2023 (Non-GAAP) $s in millions Commercial Banking Consumer Banking(1) Other Legacy Core(2) Private Bank Non-Core Legacy Private Bank Non-Core Legacy Core Private Bank Non-Core Total Net interest income $ 551 $ 1,081 $ (104) $ 1,528 $ 4.8 $ (45) $ — $ — $ — $ 1,528 $ 4.8 $ (45) $ 1,488 Noninterest income 196 265 39 500 0.4 — — — — 500 0.4 — 500 Total revenue 747 1,346 (65) 2,028 5.2 (45) — — — 2,028 5.2 (45) 1,988 Noninterest Expense 324 863 355 1,542 42.2 28 343 1.7 — 1,199 40.6 28 1,267 Pre-provision profit 423 483 (420) 486 (37.0) (73) (343) (1.7) — 829 (35.3) (73) 721 Provision for credit losses 65 82 — 147 — 24 — — — 147 — 24 171 Income before income tax expense 358 401 (420) 339 (37.0) (97) (343) (1.7) — 682 (35.3) (97) 550 Income tax expense 89 105 (143) 51 (9.6) (25) (107) (0.4) — 158 (9.2) (25) 124 Net income 269 296 (277) 288 (27.4) (72) (236) (1.3) — 524 (26.1) (72) 426 Preferred dividends — — 30 30 — — — — — 30 — — 30 Net income available to common stockholders $ 269 $ 296 $ (308) $ 258 $ (27.4) $ (72) $ (236) $ (1.3) $ — $ 494 $ (26.1) $ (72) $ 396 Contribution to total CFG Diluted EPS $ 0.57 $ 0.64 $ (0.66) $ 0.55 $ (0.06) $ (0.15) $ (0.51) $ — $ — $ 1.06 $ (0.06) $ (0.15) $ 0.85 $s in billions Interest-earning assets (spot) $ 69 $ 68 $ 49 $ 186 $ 0.3 $ 11 $— $— $— $186 $0.3 $11 $197 Loans (spot) 68 66 1 135 0.3 11 — — — 135 0.3 11 146 Deposits (spot) 46 119 11 176 1.2 — — — — 176 1.2 — 177 Risk-weighted assets (spot) $ 90 $ 56 $ 15 $ 161 $ 0.3 $ 11 $— $— $— $161 $0.3 $11 $173 Performance metrics: Net interest margin, FTE(4) 3.18 % (1.54) % 3.18 % (1.54) % 2.91 % Loans-to-deposit ratio (spot) 76.4 % 20.9 % 76.4 % 20.9 % 82.3 % CET1 capital ratio(5) 11.5 % 11.5 % 10.6 % ROTCE 7.7 % 14.8 % 11.8 % Efficiency ratio 76.1 % 59.2 % 63.8 % Noninterest income as a % of total revenue 24.6 % 24.6 % 25.2 % (3) *Select totals may not sum due to rounding
57 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core* 4Q 2023 YTD (GAAP) 4Q 2023 YTD Notables 4Q 2023 YTD (Non-GAAP) $s in millions Commercial Banking Consumer Banking(1) Other Legacy Core(2) Private Bank Non-Core Legacy Private Bank Non-Core Legacy Core Private Bank Non-Core Total Net interest income $ 2,292 $ 4,182 $ (109) $ 6,365 $ 5.1 $ (129) $ — $ — $ — $ 6,365 $ 5.1 $ (129) $ 6,241 Noninterest income 784 1,067 132 1,983 0.5 — — — — 1,983 0.5 — 1,983 Total revenue 3,076 5,248 23 8,347 5.5 (129) — — — 8,347 5.5 (129) 8,224 Noninterest Expense 1,295 3,457 547 5,299 85.2 123 497 9 — 4,802 76.3 123 5,001 Pre-provision profit 1,781 1,792 (524) 3,049 (79.7) (252) (497) (9) — 3,546 (70.7) (252) 3,223 Provision for credit losses 250 280 79 609 — 78 — — — 609 — 78 687 Income before income tax expense 1,531 1,512 (603) 2,440 (79.7) (330) (497) (9) — 2,937 (70.7) (330) 2,536 Income tax expense 378 394 (243) 529 (20.8) (86) (146) (2) — 675 (18.4) (86) 571 Net income 1,153 1,118 (360) 1,911 (58.9) (244) (350) (7) — 2,261 (52.3) (244) 1,965 Preferred dividends — — 117 117 — — — — — 117 — — 117 Net income available to common stockholders $ 1,153 $ 1,118 $ (477) $ 1,794 $ (58.9) $ (244) $ (350) $ (7) $ — $ 2,144 $ (52.3) $ (244) $ 1,848 Contribution to total CFG Diluted EPS $ 2.42 $ 2.33 $ (1.00) $ 3.75 $ (0.12) $ (0.51) $ (0.75) $ (0.01) $ — $ 4.50 $ (0.11) $ (0.51) $ 3.88 $s in billions Interest-earning assets (spot) $ 69 $ 68 $ 49 $ 186 $ 0.3 $ 11 $— $— $— $186 $0.3 $11 $197 Loans (spot) 68 66 1 135 0.3 11 — — — 135 0.3 11 146 Deposits (spot) 46 119 11 176 1.2 — — — — 176 1.2 — 177 Risk-weighted assets (spot) $ 90 $ 56 $ 15 $ 161 $ 0.3 $ 11 $— $— $— $161 $0.3 $11 $173 Performance metrics: Net interest margin, FTE(4) 3.39 % (0.94) % 3.39 % (0.94) % 3.10 % Loans-to-deposit ratio (spot) 76.4 % 20.9 % 76.4 % 20.9 % 82.3 % CET1 capital ratio(5) 11.5 % 11.5 % 10.6 % ROTCE 13.1 % 15.7 % 13.5 % Efficiency ratio 63.5 % 57.5 % 60.8 % Noninterest income as a % of total revenue 23.8 % 23.8 % 24.1 % (3) *Select totals may not sum due to rounding
