| Metric / Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Amount of Principal Forgiven** | **$0 million**  **[0000759944-24-000176_cfg-20240930.htm:64]**  | **$2 million**  **[0000759944-24-000148_cfg-20240630.htm:65]**  | **$2 million**  **[0000759944-24-000090_cfg-20240331.htm:60]**  | **$5 million**  **[0000759944-24-000039_cfg-20231231.htm:154]**  | **$0 million**  **[0000759944-23-000149_cfg-20230930.htm:72]**  | **$1 million**  **[0000759944-23-000124_cfg-20230630.htm:68]**  | **Varies by category**  **[0000759944-23-000084_cfg-20230331.htm:58]**  | N/A |
| **Commercial Criticized Balances** | **$8.6 billion**  **[0000759944-24-000176_cfg-20240930.htm:21]**  | **$8.4 billion**  **[0000759944-24-000148_cfg-20240630.htm:21]**  | **$8.7 billion**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **$8.4 billion**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **$9.0 billion**  **[0000759944-23-000149_cfg-20230930.htm:22]**  | **$8.0 billion**  **[0000759944-23-000124_cfg-20230630.htm:21]**  | **$7.4 billion**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **$5.5 billion**  **[0000759944-23-000029_cfg-20221231.htm:81]**  |
| **Commercial Real Estate Criticized Balances** | **$5.5 billion**  **[0000759944-24-000176_cfg-20240930.htm:21]**  | **$5.4 billion**  **[0000759944-24-000148_cfg-20240630.htm:21]**  | **$5.4 billion**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **$5.0 billion**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **$5.1 billion**  **[0000759944-23-000149_cfg-20230930.htm:22]**  | **$4.3 billion**  **[0000759944-23-000124_cfg-20230630.htm:21]**  | **$3.7 billion**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **$2.4 billion**  **[0000759944-23-000029_cfg-20221231.htm:82]**  |
| **Commercial and Industrial Criticized Balances** | **$3.1 billion**  **[0000759944-24-000176_cfg-20240930.htm:21]**  | **$3.0 billion**  **[0000759944-24-000148_cfg-20240630.htm:21]**  | **$3.3 billion**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **$3.4 billion**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **$3.8 billion**  **[0000759944-23-000149_cfg-20230930.htm:22]**  | **$3.6 billion**  **[0000759944-23-000124_cfg-20230630.htm:21]**  | **$3.6 billion**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **$3.1 billion**  **[0000759944-23-000029_cfg-20221231.htm:82]**  |
| **Nonaccrual Loans and Leases to Total Loans and Leases** | **1.19%**  **[0000759944-24-000176_cfg-20240930.htm:20]**  | **1.08%**  **[0000759944-24-000148_cfg-20240630.htm:20]**  | **1.02%**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **0.93%**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **0.87%**  **[0000759944-23-000149_cfg-20230930.htm:21]**  | **0.79%**  **[0000759944-23-000124_cfg-20230630.htm:20]**  | **0.64%**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **0.60%**  **[0000759944-23-000029_cfg-20221231.htm:80]**  |
| **Allowance for Loan and Lease Losses to Nonaccrual Loans and Leases** | **123%**  **[0000759944-24-000176_cfg-20240930.htm:20]**  | **139%**  **[0000759944-24-000148_cfg-20240630.htm:20]**  | **142%**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **154%**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **160%**  **[0000759944-23-000149_cfg-20230930.htm:21]**  | **172%**  **[0000759944-23-000124_cfg-20230630.htm:20]**  | **203%**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **210%**  **[0000759944-23-000029_cfg-20221231.htm:80]**  |
| **Allowance for Credit Losses to Nonaccrual Loans and Leases** | **136%**  **[0000759944-24-000176_cfg-20240930.htm:20]**  | **151%**  **[0000759944-24-000148_cfg-20240630.htm:20]**  | **157%**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **170%**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **179%**  **[0000759944-23-000149_cfg-20230930.htm:21]**  | **193%**  **[0000759944-23-000124_cfg-20230630.htm:20]**  | **229%**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **237%**  **[0000759944-23-000029_cfg-20221231.htm:80]**  |
| **Ratio of Net Charge-Offs to Average Loans and Leases** | **0.54%**  **[0000759944-24-000176_cfg-20240930.htm:20]**  | **0.52%**  **[0000759944-24-000148_cfg-20240630.htm:20]**  | **0.50%**  **[0000759944-24-000090_cfg-20240331.htm:17]**  | **0.40%**  **[0000759944-24-000039_cfg-20231231.htm:76]**  | **0.40%**  **[0000759944-23-000149_cfg-20230930.htm:21]**  | **0.40%**  **[0000759944-23-000124_cfg-20230630.htm:20]**  | **0.34%**  **[0000759944-23-000084_cfg-20230331.htm:18]**  | **0.18%**  **[0000759944-23-000029_cfg-20221231.htm:81]**  |
| **Contingent Commitments Related to Renewable Energy Investments** | **$61 million**  **[0000759944-24-000176_cfg-20240930.htm:72]**  | **$63 million**  **[0000759944-24-000148_cfg-20240630.htm:71]**  | **$63 million**  **[0000759944-24-000090_cfg-20240331.htm:64]**  | **$67 million**  **[0000759944-24-000039_cfg-20231231.htm:165]**  | **$7 million**  **[0000759944-23-000149_cfg-20230930.htm:79]**  | **$7 million**  **[0000759944-23-000124_cfg-20230630.htm:74]**  | **$7 million**  **[0000759944-23-000084_cfg-20230331.htm:62]**  | **$7 million**  **[0000759944-23-000084_cfg-20230331.htm:62]**  |
| **Tax Credits Recognized** | **$99 million**  **[0000759944-24-000176_cfg-20240930.htm:72]**  | **$94 million**  **[0000759944-24-000148_cfg-20240630.htm:71]**  | **$97 million**  **[0000759944-24-000090_cfg-20240331.htm:64]**  | **$334 million (annual)**  **[0000759944-24-000039_cfg-20231231.htm:166]**  | **$76 million**  **[0000759944-23-000149_cfg-20230930.htm:80]**  | **$87 million**  **[0000759944-23-000124_cfg-20230630.htm:75]**  | **$87 million**  **[0000759944-23-000084_cfg-20230331.htm:63]**  | **$236 million (annual)**  **[0000759944-23-000029_cfg-20221231.htm:167]**  |
| **Other Tax Benefits Recognized** | **$21 million**  **[0000759944-24-000176_cfg-20240930.htm:72]**  | **$24 million**  **[0000759944-24-000148_cfg-20240630.htm:71]**  | **$23 million**  **[0000759944-24-000090_cfg-20240331.htm:64]**  | **$71 million (annual)**  **[0000759944-24-000039_cfg-20231231.htm:166]**  | **$17 million**  **[0000759944-23-000149_cfg-20230930.htm:80]**  | **$20 million**  **[0000759944-23-000124_cfg-20230630.htm:75]**  | **$18 million**  **[0000759944-23-000084_cfg-20230331.htm:63]**  | **$59 million (annual)**  **[0000759944-23-000029_cfg-20221231.htm:167]**  |
| **Amortization Related to Tax Credit Programs** | **$88 million**  **[0000759944-24-000176_cfg-20240930.htm:72]**  | **$89 million**  **[0000759944-24-000148_cfg-20240630.htm:71]**  | **$99 million**  **[0000759944-24-000090_cfg-20240331.htm:64]**  | **$320 million (annual)**  **[0000759944-24-000039_cfg-20231231.htm:166]**  | **$71 million**  **[0000759944-23-000149_cfg-20230930.htm:80]**  | **$85 million**  **[0000759944-23-000124_cfg-20230630.htm:75]**  | **$81 million**  **[0000759944-23-000084_cfg-20230331.htm:63]**  | **$57 million**  **[0000759944-23-000029_cfg-20221231.htm:167]**  |
| **Net Benefit (Expense) in Income Tax Expense from Tax Credit Programs** | **$32 million**  **[0000759944-24-000176_cfg-20240930.htm:72]**  | **$29 million**  **[0000759944-24-000148_cfg-20240630.htm:71]**  | **$21 million**  **[0000759944-24-000090_cfg-20240331.htm:64]**  | **N/A** | **$22 million**  **[0000759944-23-000149_cfg-20230930.htm:80]**  | **$22 million**  **[0000759944-23-000124_cfg-20230630.htm:75]**  | **$24 million**  **[0000759944-23-000084_cfg-20230331.htm:63]**  | **$12 million**  **[0000759944-23-000029_cfg-20221231.htm:167]**  |
| **Net Benefit (Expense) in Noninterest Income from Tax Credit Programs** | **$(2) million**  **[0000759944-24-000176_cfg-20240930.htm:72]**  | **$(1) million**  **[0000759944-24-000148_cfg-20240630.htm:71]**  | **$(2) million**  **[0000759944-24-000090_cfg-20240331.htm:64]**  | **$(5) million (annual)**  **[0000759944-24-000039_cfg-20231231.htm:166]**  | **$0 million**  **[0000759944-23-000149_cfg-20230930.htm:80]**  | **$(1) million**  **[0000759944-23-000124_cfg-20230630.htm:75]**  | **$(2) million**  **[0000759944-23-000084_cfg-20230331.htm:63]**  | **N/A** |
| **Weighted Average Constant Prepayment Rate** | **8.3%**  **[0000759944-24-000176_cfg-20240930.htm:70]**  | **7.1%**  **[0000759944-24-000148_cfg-20240630.htm:69]**  | **7.0%** [146] | **N/A** | **N/A** | **N/A** | **N/A** | **N/A** |

c43663fe8deba396047a5eeb138af56348d30acab55a5cd670ece10e89271571

2c5794320e56a427de2bc8d2bdca0552d1fd7428ba71a20c79df600382b5aa42

Citizens Financial Group, Inc. (CFG) is a financial services company that operates primarily through two main business segments: Consumer Banking and Commercial Banking, with a third segment classified as Non-Core. CFG provides a range of financial products and services to individuals, small businesses, and large corporations, including deposits, lending, credit cards, and wealth management services **[0000759944-24-000039_cfg-20231231.htm:9]** **[0000759944-24-000056_ars.htm:40]** **[0000759944-24-000056_ars.htm:226]** **[0000759944-24-000039_cfg-20231231.htm:194]**. The company serves its customers through a network of branches and ATMs, as well as digital banking platforms nationwide **[0000759944-24-000039_cfg-20231231.htm:9]** **[0000759944-24-000056_ars.htm:40]** **[0000759944-24-000056_ars.htm:226]** **[0000759944-24-000039_cfg-20231231.htm:194]**.

1. **Consumer Banking** - Serves individuals and small businesses with annual revenues up to $25 million, offering products such as deposits, mortgage and home equity lending, credit cards, small business loans, and wealth management services. Operates through a network of approximately 1,100 branches and 3,200 ATMs, and provides digital banking services nationwide **[0000759944-24-000039_cfg-20231231.htm:9]** **[0000759944-24-000056_ars.htm:40]** **[0000759944-24-000056_ars.htm:226]** **[0000759944-24-000039_cfg-20231231.htm:194]**.
   
2. **Commercial Banking** - Caters to companies and institutions with annual revenues ranging from $25 million to over $3 billion, providing financial products and solutions including lending, leasing, deposit and treasury management services, foreign exchange, risk management solutions, and capital markets capabilities. Focuses on middle-market companies, large corporations, and institutions, with specialized industry teams in areas such as Aerospace, Defense, and Government Services **[0000759944-24-000039_cfg-20231231.htm:9]** **[0000759944-24-000039_cfg-20231231.htm:194]** **[0000759944-24-000056_ars.htm:228]** **[0000759944-24-000056_ars.htm:42]**.

3. **Non-Core** - Includes CFG's indirect auto and certain purchased consumer loan portfolios, which were transferred from the Consumer Banking segment as part of a balance sheet optimization strategy. Reflects CFG's decision to discontinue the origination of certain non-strategic lending portfolios **[0000759944-24-000039_cfg-20231231.htm:194]** **[0000759944-24-000056_ars.htm:228]**.

d23197b85c6167cbf7f9bda5974f603a2f4a4600eb770e5d8a6c943cad75bc18

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Consumer Banking**     |         |         |         |         |         |         |         |         |
| Net Interest Income      | 1,106  **[0000759944-23-000005_q422financialsupplement.htm:32]**  | 1,096  **[0000759944-23-000084_cfg-20230331.htm:76]**  | 1,104  **[0000759944-23-000124_cfg-20230630.htm:91]**  | N/A     | N/A     | 1,093  **[0000759944-24-000090_cfg-20240331.htm:79]**  | 1,120  **[0000759944-24-000148_cfg-20240630.htm:16]**  | 1,156  **[0000759944-24-000176_cfg-20240930.htm:16]**  |
| Noninterest Income       | 256  **[0000759944-23-000005_q422financialsupplement.htm:32]**    | 256  **[0000759944-23-000084_cfg-20230331.htm:76]**    | 268  **[0000759944-23-000124_cfg-20230630.htm:91]**    | N/A     | N/A     | 258  **[0000759944-24-000090_cfg-20240331.htm:79]**    | 277  **[0000759944-24-000148_cfg-20240630.htm:16]**    | 285  **[0000759944-24-000176_cfg-20240930.htm:16]**    |
| Total Revenue            | 1,362  **[0000759944-23-000005_q422financialsupplement.htm:32]**  | 1,352  **[0000759944-23-000084_cfg-20230331.htm:76]**  | 1,372  **[0000759944-23-000124_cfg-20230630.htm:91]**  | 1,345  **[0000759944-23-000149_cfg-20230930.htm:95]**  | 1,346  **[0000759944-24-000005_a4q23earningspresentatio.htm:27]**  | 1,351  **[0000759944-24-000090_cfg-20240331.htm:79]**  | 1,397  **[0000759944-24-000148_cfg-20240630.htm:16]**  | 1,441  **[0000759944-24-000176_cfg-20240930.htm:16]**  |
| **Commercial Banking**   |         |         |         |         |         |         |         |         |
| Net Interest Income      | 594  **[0000759944-23-000005_q422financialsupplement.htm:32]**    | 597  **[0000759944-23-000084_cfg-20230331.htm:76]**    | 584  **[0000759944-23-000124_cfg-20230630.htm:91]**    | N/A     | N/A     | 514  **[0000759944-24-000090_cfg-20240331.htm:79]**    | 494  **[0000759944-24-000148_cfg-20240630.htm:16]**    | 478  **[0000759944-24-000176_cfg-20240930.htm:16]**    |
| Noninterest Income       | 198  **[0000759944-23-000005_q422financialsupplement.htm:32]**    | 201  **[0000759944-23-000084_cfg-20230331.htm:76]**    | 207  **[0000759944-23-000124_cfg-20230630.htm:91]**    | N/A     | N/A     | 227  **[0000759944-24-000090_cfg-20240331.htm:79]**    | 242  **[0000759944-24-000148_cfg-20240630.htm:16]**    | 207  **[0000759944-24-000176_cfg-20240930.htm:16]**    |
| Total Revenue            | 792  **[0000759944-23-000005_q422financialsupplement.htm:32]**    | 798  **[0000759944-23-000084_cfg-20230331.htm:76]**    | 791  **[0000759944-23-000124_cfg-20230630.htm:91]**    | 740  **[0000759944-23-000149_cfg-20230930.htm:95]**  | 747  **[0000759944-24-000005_a4q23earningspresentatio.htm:27]**  | 741  **[0000759944-24-000090_cfg-20240331.htm:79]**  | 736  **[0000759944-24-000148_cfg-20240630.htm:16]**  | 685  **[0000759944-24-000176_cfg-20240930.htm:16]**  |
| **Non-Core/Other**       |         |         |         |         |         |         |         |         |
| Net Interest Income      | (5)  **[0000759944-23-000005_q422financialsupplement.htm:32]**    | N/A         | (100)  **[0000759944-23-000124_cfg-20230630.htm:91]**  | N/A     | N/A     | (128)  **[0000759944-24-000090_cfg-20240331.htm:79]**  | (31)  **[0000759944-24-000148_cfg-20240630.htm:16]**  | (28)  **[0000759944-24-000176_cfg-20240930.htm:16]**  |
| Noninterest Income       | 51  **[0000759944-23-000005_q422financialsupplement.htm:32]**     | N/A         | 31  **[0000759944-23-000124_cfg-20230630.htm:91]**     | N/A     | N/A     | 32  **[0000759944-24-000090_cfg-20240331.htm:79]**     | 0  **[0000759944-24-000148_cfg-20240630.htm:16]**     | 0  **[0000759944-24-000176_cfg-20240930.htm:16]**     |
| Total Revenue            | 46  **[0000759944-23-000005_q422financialsupplement.htm:32]**     | N/A         | (69)  **[0000759944-23-000124_cfg-20230630.htm:91]**   | (41)  **[0000759944-23-000149_cfg-20230930.htm:95]**  | (65)  **[0000759944-24-000005_a4q23earningspresentatio.htm:27]**  | (96)  **[0000759944-24-000090_cfg-20240331.htm:79]**  | (31)  **[0000759944-24-000148_cfg-20240630.htm:16]**  | (28)  **[0000759944-24-000176_cfg-20240930.htm:16]**  |
| **Consolidated Total Revenue** | 2,200  **[0000759944-23-000005_q422financialsupplement.htm:32]**  | 2,128  **[0000759944-23-000084_cfg-20230331.htm:76]**  | 2,094  **[0000759944-23-000124_cfg-20230630.htm:91]**  | 2,014  **[0000759944-23-000149_cfg-20230930.htm:95]**  | 1,988  **[0000759944-24-000005_a4q23earningspresentatio.htm:27]**  | 1,959  **[0000759944-24-000090_cfg-20240331.htm:79]**  | 1,963  **[0000759944-24-000141_q224financialsupplement.htm:33]**  | 1,901  **[0000759944-24-000170_a3q24earningsrelease.htm:0]**  |

674c8a43597a0024e972e4cbc15c0c0b39978195ec3769cde8b5225e5897af69

1. Given that you've terminated $4 billion of swaps in the third quarter and the forward curve now implies fewer rate cuts, how will this decision impact your net interest margin guidance, and can you elaborate on the accounting treatment and its effect on earnings in the coming quarters?
2. With your general office commercial real estate exposure still at $3.2 billion and reserves increasing to 12.1%, how confident are you that you've adequately provisioned for potential future losses, especially considering the ongoing challenges in the office sector?
3. You anticipate deposit betas nearing 40% by the end of the fourth quarter; given the competitive deposit environment, what strategies are you implementing to manage deposit costs, and how sustainable is it to expect stable or improving deposit costs while maintaining deposit balances?
4. Your net interest margin guidance relies on front book/back book dynamics contributing to expansion; can you specify the volumes and yields of loans and securities expected to reprice, and quantify the anticipated impact on NIM given current rate expectations?
5. The Private Bank is expected to start contributing to earnings in the fourth quarter; considering the significant investments and rapid expansion, what risks do you foresee in achieving profitability, and how sustainable is the growth in deposits and loans in this segment?

08b49178b5e4eac4578122fbfdaaa739545e7c6e972c076cf8f05bf62fc7f326

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

870623c3ad2a6f18e7fa30e1fee876af02e2a6b2dccf19ceeb47ee9060fcffe2

**Amount of Principal Forgiven**

**Commercial Criticized Balances**

**Commercial Real Estate Criticized Balances**

**Commercial and Industrial Criticized Balances**

**Allowance for Loan and Lease Losses to Nonaccrual Loans and Leases**

**Allowance for Credit Losses to Nonaccrual Loans and Leases**

**Ratio of Net Charge-Offs to Average Loans and Leases**

**Contingent Commitments Related to Renewable Energy Investments**

**Tax Credits Recognized**

**Other Tax Benefits Recognized**

**Amortization Related to Tax Credit Programs**

**Net Benefit (Expense) in Income Tax Expense from Tax Credit Programs**

**Net Benefit (Expense) in Noninterest Income from Tax Credit Programs**

**Weighted Average Constant Prepayment Rate**

57375e3f90d2d7222c83848ce004f3cdadfc2bd353593ce61090cba999037dbd

Consumer Banking

- Net Interest Income

- Noninterest Income

- Total Revenue

Commercial Banking

Non-Core

Other

Consolidated Total Revenue

13d73e55f80d342f44613bcd60fd3a4d9e74fe18e7fcdfc6b4151cf296d68a02

CFG lifts NIM outlook to 3.05-3.10% by 2025 (3.5% by 2027) on asset sensitivity, fueling ~1.5% positive operating leverage. Private Bank drives ~$1B in quarterly loan growth, targeting 20% ROTCE by end of '24. CRE office exposure remains a key credit risk.

0c87fe358e1946f6e37c9186de8905480fb38e14e3d99821ae446713d1fa722c

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

a1a12c256b1f002e586597b0aa06f508a9b93726d2210fa04880f934f0fbdf8a

c727f30414b414b13513f520c77d9cc3f134b59346a49e1e7cd8130146758d28

- Community banks
- Super-regional and national financial institutions
- Credit unions
- Savings and loan associations
- Mortgage banking firms
- Consumer finance companies
- Securities brokerage firms
- Insurance companies
- Money market funds
- Hedge funds
- Private equity firms
- FinTech companies

6e608a30b96a278e6d60a5aa22e53e5d32249993e0795267c62c860594e1f945

Brooklyn

Manhattan

Other NYC

New York - ex. NYC

New Jersey

Pennsylvania

California

Texas

Massachusetts

Florida

Other Southeast

Total Revenue

7ede9f1720cbdcf25508912e2544128aa031bed1da207726b22395613a31c745

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Net Interest Income (NII)**: Expected to be up about **1.5% to 2.5%**, driven by a **5 basis point improvement in net interest margin**  **[CFG_3402889_4]** .
  2. **Noninterest Income**: Expected to be up mid- to high single digits, reflecting expected seasonal strength in capital markets  **[CFG_3402889_4]** .
  3. **Noninterest Expense**: Projected to be up about **2%**  **[CFG_3402889_5]** .
  4. **Operating Leverage**: Expected to achieve positive operating leverage  **[CFG_3402889_5]** .
  5. **Net Charge-offs**: Expected to be broadly stable  **[CFG_3402889_5]** .
  6. **Allowance for Credit Losses (ACL)**: Should continue to benefit from noncore runoff and improving loan mix  **[CFG_3402889_5]** .
  7. **CET1 Ratio**: Expected to be broadly stable with about **$200 million to $250 million** of share repurchases  **[CFG_3402889_5]** .
  8. **Deposit Beta**: Expected to be around **40%** by the end of the fourth quarter  **[CFG_3402889_12]** .
  9. **Net Interest Margin (NIM)**: Expected to expand by **5 basis points** into the fourth quarter  **[CFG_3402889_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **Net Interest Income (NII)**: Expected to be down **1% to 2%**, driven by one last step up in swap costs for the cycle  **[CFG_3393392_6]** .
  2. **Noninterest Income**: Expected to be up slightly, reflecting seasonally lower capital markets more than offset by a pickup across other categories  **[CFG_3393392_6]** .
  3. **Noninterest Expense**: Expected to be stable  **[CFG_3393392_6]** .
  4. **Net Charge-Offs**: Expected to be down modestly  **[CFG_3393392_6]** .
  5. **Allowance for Credit Losses (ACL)**: Should continue to benefit from noncore runoff  **[CFG_3393392_6]** .
  6. **Common Equity Tier 1 (CET1) Ratio**: Expected to come in about **10.5%**  **[CFG_3393392_6]** .
  7. **Share Repurchase**: Approximately **$250 million to $300 million** of share repurchase currently planned  **[CFG_3393392_6]** .
  8. **Interest Rate Outlook**: Contemplates a **25 basis point rate cut** in each of September and December  **[CFG_3393392_6]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Net Interest Income (NII)**: Expected to decrease by about **2%** for the second quarter. For the full year 2024, NII is expected to land within the range of **down 6% to 9%**  **[CFG_3379930_5]** .
  2. **Net Interest Margin (NIM)**: Expected to come in a little better than initially expected, offsetting the impact of lower loan demand. The medium-term NIM range is projected to be **3.25% to 3.4%**  **[CFG_3379930_6]** **[CFG_3379930_5]** .
  3. **Noninterest Income**: Expected to be up approximately **3% to 4%** for the second quarter  **[CFG_3379930_5]** .
  4. **Noninterest Expense**: Expected to be stable to down slightly for the second quarter  **[CFG_3379930_5]** .
  5. **Net Charge-Offs (NCOs)**: Expected to be about **50 basis points** for the second quarter and trending in line with expectations for the year  **[CFG_3379930_5]** .
  6. **Allowance for Credit Losses (ACL)**: Should continue to benefit from the noncore runoff  **[CFG_3379930_5]** .
  7. **Common Equity Tier 1 (CET1) Ratio**: Expected to come in at about **10.5%** for the second quarter, with approximately **$200 million** of share repurchases currently planned  **[CFG_3379930_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Interest Margin (NIM)**: Expected to average in the **2.8% to 2.85% range** for the full year, exiting the year around **2.85%**  **[CFG_3370328_7]** .
  2. **Net Interest Income (NII)**: Expected to be down **6% to 9%** for the full year 2024, with changes in the swap book contributing to about half of that decline  **[CFG_3370328_6]** .
  3. **Noninterest Income**: Expected to be up in the **6% to 9% range**, depending on the market environment, led by a rebound in capital markets  **[CFG_3370328_7]** .
  4. **Expenses**: Expected to be up about **1% to 1.5%**. Excluding the private bank, expenses would be down **1.3% to 1.5%**  **[CFG_3370328_7]** .
  5. **Common Equity Tier 1 (CET1) Ratio**: Expected to end the year at about **10.5%**, which is at the upper end of their target range  **[CFG_3370328_7]** .
  6. **Share Repurchases**: Plan to resume share repurchases in the first quarter in the **$300 million range**, with more over the course of the year, depending on market conditions and loan growth  **[CFG_3370328_7]** .
  7. **Net Charge-Offs (NCOs)**: Expected to be about **50 basis points** for the year  **[CFG_3370328_7]** .
  8. **Loan Growth**: Average loans expected to be down roughly **2% to 3%**, with spot loan growth of **3% to 5%** over the course of the year  **[CFG_3370328_6]** .
  9. **Deposit Growth**: Spot growth expected to be **1% to 2%**  **[CFG_3370328_6]** .
  10. **Dividend Payout**: Targeting a dividend payout of **35% to 40%**  **[CFG_3370328_7]** .
  11. **Operating Leverage**: Expect to return to sequential positive operating leverage in the second half of the year  **[CFG_3370328_7]** .
  12. **Capital Return**: Expect a **95%** capital return performance in 2023, with a range of **75% to 100%** over time  **[CFG_3370328_24]** .
  13. **Private Bank**: Expected to contribute meaningfully as it matures  **[CFG_3370328_7]** .

15ff038460e7dd030f6f03edc25d38785a3838e2dcfeb8f1da24ac106c5285b5

| Name                  | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------|--------------------------------------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Bruce Van Saun        | Chairman and Chief Executive Officer                                     | October 2013       | Bruce Van Saun has been serving as the Chairman and CEO of CFG since October 2013. He has extensive experience in the financial services industry, having previously served as Finance Director at The Royal Bank of Scotland Group plc and held senior positions at The Bank of New York Mellon, Deutsche Bank, Wasserstein Perella Group, and Kidder Peabody & Co.  **[0000759944-24-000054_cfg-20240311.htm:16]** **[0001193125-23-067779_d420471ddef14a.htm:11]** . |
| John F. Woods         | Vice Chair and Chief Financial Officer                                   | March 2017         | John F. Woods joined CFG in February 2017 and became CFO in March 2017. He was appointed Vice Chair in February 2019. Before CFG, he was CFO of MUFG Americas and held positions at J.P. Morgan Chase. He began his career with Arthur Andersen in 1986  **[0000759944-24-000054_cfg-20240311.htm:57]** **[0001193125-23-067779_d420471ddef14a.htm:44]** .                                                                                                 |
| Donald H. McCree III  | Vice Chair and Head of Commercial Banking                                | August 2015        | Donald H. McCree III has been Vice Chair and Head of Commercial Banking at CFG since August 2015. He previously held senior leadership positions at J.P. Morgan Chase & Co. for over 30 years  **[0000759944-24-000054_cfg-20240311.htm:56]** **[0001193125-23-067779_d420471ddef14a.htm:43]** .                                                                                                                                                          |
| Brendan Coughlin      | Vice Chair and Head of Consumer Banking                                  | January 2020       | Brendan Coughlin serves as Vice Chair and Head of Consumer Banking at CFG. He has been with CFG for over 19 years, holding various positions in Consumer Banking. He was named President of Consumer Lending in June 2015  **[0000759944-24-000054_cfg-20240311.htm:55]** **[0001193125-23-067779_d420471ddef14a.htm:41]** .                                                                                                                             |
| Elizabeth S. Johnson  | Vice Chair and Chief Experience Officer                                  | 2013               | Elizabeth S. Johnson is the Vice Chair and Chief Experience Officer at CFG. She joined CFG in 2013 as Head of Corporate Strategy and has held roles such as Chief Marketing Officer and Head of Virtual Channels  **[0000759944-24-000054_cfg-20240311.htm:55]** .                                                                                                                                         |
| Polly Nyquist Klane   | Executive Vice President, Chief Legal Officer, and General Counsel       | April 2022         | Polly Nyquist Klane joined CFG as Executive Vice President, Chief Legal Officer, and General Counsel in April 2022. She previously served as Deputy General Counsel at Capital One and Fannie Mae  **[0000759944-24-000054_cfg-20240311.htm:55]** **[0001193125-23-067779_d420471ddef14a.htm:42]** .                                                                                                                                                     |
| Susan LaMonica        | Executive Vice President and Chief Human Resources Officer               | 2011               | Susan LaMonica has been the Chief Human Resources Officer at CFG since 2011. She previously held senior leadership roles at J.P. Morgan Chase  **[0000759944-24-000054_cfg-20240311.htm:56]** **[0001193125-23-067779_d420471ddef14a.htm:43]** .                                                                                                                                                                                                         |
| Michael Ruttledge     | Executive Vice President, Chief Information Officer, and Head of Enterprise Security and Technology | 2019               | Michael Ruttledge is the Executive Vice President, CIO, and Head of Enterprise Security and Technology at CFG. He joined CFG in 2019 and has led the Next Generation Technology transformation  **[0000759944-24-000054_cfg-20240311.htm:57]** .                                                                                                                                                           |
| Richard Stein         | Executive Vice President and Chief Risk Officer                          | January 1, 2024    | Richard Stein joined CFG in May 2023 as Executive Vice President and Senior Risk Advisor. He was appointed Chief Risk Officer on January 1, 2024  **[0000759944-24-000054_cfg-20240311.htm:57]** .                                                                                                                                                                                                         |
| C. Jack Read          | Executive Vice President and Controller                                  | July 2018          | C. Jack Read is the Executive Vice President and Controller at CFG. He joined CFG in July 2018 and became Chief Accounting Officer in August 2018  **[0000759944-24-000054_cfg-20240311.htm:56]** **[0001193125-23-067779_d420471ddef14a.htm:43]** .                                                                                                                                                                                                     |
| Claude E. Wade        | Upcoming Board Member, will serve on the Risk Committee                  | March 1, 2025      | Claude E. Wade has been appointed to the Board of Directors of CFG, effective March 1, 2025. He will serve on the Board's Risk Committee. He currently serves as Executive Vice President, Chief Digital Officer, and Global Head of Business Operations at AIG  **[0000759944-24-000167_directorspressrelease-sept.htm:0]** **[0000759944-24-000167_cfg-20240919.htm:1]** .                                                                                       |
| Wendy A. Watson       | Current Board Member, Chair of the Audit Committee, member of the Risk Committee and the Compensation and Human Resources Committee | October 2010       | Wendy A. Watson has been a board member of CFG since October 2010. She is the Chair of the Audit Committee and a member of the Risk and Compensation and Human Resources Committees. She will retire in April 2025  **[0000759944-24-000054_cfg-20240311.htm:23]** **[0000759944-24-000167_cfg-20240919.htm:1]** **[0000759944-24-000167_directorspressrelease-sept.htm:0]** .                                                                                                                               |

9893915c71672beb589f8e5aff18f232774f1b6043903af3fe370df5c5f9f7d6

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **June 28, 2024**  **[0000759944-24-000176_cfg-20240930.htm:96]**  |
| End Date/Duration        | N/A             |
| Total additional amount  | **$656 million**  **[0000759944-24-000176_cfg-20240930.htm:96]**  |
| Remaining authorization amount | **$925 million**  **[0000759944-24-000176_cfg-20240930.htm:96]**  |
| Details                  | The program aims to return capital to shareholders. The timing and amount of repurchases depend on factors such as the company's capital position, financial performance, strategic initiatives, market conditions, and regulatory considerations.  **[0000759944-24-000176_cfg-20240930.htm:96]** **[0000759944-24-000148_cfg-20240630.htm:94]**  |

cbc79be1141960504e6d634efc79c01f39c8d90bf40e460e97387dbc4a2a330f

**Quarterly guidance for Q1 2025:**
- Net interest income: reduced net interest income due to fewer days in the quarter  **[CFG_3412798_5]**  (no prior guidance)  
- Noninterest income: lower capital markets fees  **[CFG_3412798_5]**  (no prior guidance)  
- Noninterest expense: higher expenses due to taxes on FICA reset and compensation payouts  **[CFG_3412798_5]**  (no prior guidance)  
- Credit trends: expected to improve  **[CFG_3412798_5]**  (no prior guidance)  
- CET1 ratio: 10.5% to 10.75%  **[CFG_3412798_5]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- Net interest income (NII): 3% to 5%  **[CFG_3412798_5]** **[CFG_3412798_4]**  (no prior guidance)  
- Net interest margin (NIM): 3.05% to 3.10%  **[CFG_3412798_10]**  (no prior guidance)  
- Loan growth: low single digits  **[CFG_3412798_4]**  (no prior guidance)  
- Noninterest income: 8% to 10%  **[CFG_3412798_5]**  (no prior guidance)  
- Expenses: 4%  **[CFG_3412798_5]** **[CFG_3412798_8]**  (no prior guidance)  
- Operating leverage: ~150 bps  **[CFG_3412798_5]**  (no prior guidance)  
- Net charge-offs: $650 million to $700 million  **[CFG_3412798_5]**  (no prior guidance)  
- Allowance for credit losses (ACL): likely to see reserve releases  **[CFG_3412798_5]**  (no prior guidance)  
- CET1 ratio: 10.5% to 10.75%  **[CFG_3412798_5]**  (no prior guidance)  
- Share repurchases: opportunistic  **[CFG_3412798_5]**  (no prior guidance)  

3eac13aeaa409fb22de1b0dea95077c01c56ccbe1ab5bfb0c926b5f64d513344

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2000  **[0000759944-24-000039_cfg-20231231.htm:117]**    | Present  | Current auditor   |

82c7a9c60640f06558cc8adc5317894df4b91d8bbb865c31ae79fc2aba5fa6a4

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1.986 billion (flat vs. $1.988 billion in Q4 2023)  **[0000759944-24-000039_cfg-20231231.htm:196]** **[0000759944-25-000005_q424financialsupplement.htm:3]** **[0000759944-25-000005_a4q24earningsrelease.htm:1]** **[0000759944-25-000005_q424financialsupplement.htm:1]**   
- Net Income: **$401 million (+112% YoY)** ($189 million in Q4 2023)  **[0000759944-24-000039_cfg-20231231.htm:120]** **[0000759944-25-000005_q424financialsupplement.htm:3]** **[0000759944-25-000005_a4q24earningsrelease.htm:1]** **[0000759944-25-000005_q424financialsupplement.htm:1]**   
- Basic EPS: **$0.83 (+137% YoY)** ($0.35 in Q4 2023)  **[0000759944-24-000039_cfg-20231231.htm:120]** **[0000759944-25-000005_q424financialsupplement.htm:1]**   
- Interest Expense: $1.05 billion (-12% YoY) ($1.188 billion in Q4 2023)  **[0000759944-24-000039_cfg-20231231.htm:120]** **[0000759944-25-000005_q424financialsupplement.htm:3]**   

628f94f8c15485c7f15e5f372658ffe75b11e6a9a2b9a5aeace6b02fad3b544c

| Year | Amount Due (in millions) | Debt Type | Interest Rate (%) | % of Total Debt |
|------|--------------------------|-----------|-------------------|-----------------|
| 2024 | $17 **[0000759944-24-000176_cfg-20240930.htm:74]** | 4.023% fixed-rate subordinated debt **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** | 4.023 **[0000759944-24-000176_cfg-20240930.htm:73]** | 0.1% = (17 / 13,944) * 100 **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** |
| 2025 | $1,945 **[0000759944-24-000176_cfg-20240930.htm:74]** | 4.350% fixed-rate subordinated debt, 4.300% fixed-rate subordinated debt, 2.250% senior unsecured notes, 6.064% fixed/floating-rate senior unsecured notes **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** | 4.350, 4.300, 2.250, 6.064 **[0000759944-24-000176_cfg-20240930.htm:73]** | 14.0% = (1,945 / 13,944) * 100 **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** |
| 2026 | $3,330 **[0000759944-24-000176_cfg-20240930.htm:74]** | 2.850% fixed-rate senior unsecured notes, 5.284% fixed/floating-rate senior unsecured notes, 3.750% senior unsecured notes **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** | 2.850, 5.284, 3.750 **[0000759944-24-000176_cfg-20240930.htm:73]** | 23.9% = (3,330 / 13,944) * 100 **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** |
| 2027 | $8 **[0000759944-24-000176_cfg-20240930.htm:74]** | N/A **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** | N/A **[0000759944-24-000176_cfg-20240930.htm:73]** | 0.1% = (8 / 13,944) * 100 **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** |
| 2028 | $2,696 **[0000759944-24-000176_cfg-20240930.htm:74]** | 4.575% fixed/floating-rate senior unsecured notes **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** | 4.575 **[0000759944-24-000176_cfg-20240930.htm:73]** | 19.3% = (2,696 / 13,944) * 100 **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** |
| 2029 and thereafter | $5,948 **[0000759944-24-000176_cfg-20240930.htm:74]** | 5.841% fixed/floating-rate senior unsecured notes, 2.500% fixed-rate senior unsecured notes, 3.250% fixed-rate senior unsecured notes, 3.750% fixed-rate reset subordinated debt, 4.300% fixed-rate reset subordinated debt, 4.350% fixed-rate reset subordinated debt, 5.718% fixed/floating-rate senior unsecured notes, 2.638% fixed-rate subordinated debt, 6.645% fixed/floating-rate senior unsecured notes, 5.641% fixed-rate reset subordinated debt **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** | 5.841, 2.500, 3.250, 3.750, 4.300, 4.350, 5.718, 2.638, 6.645, 5.641 **[0000759944-24-000176_cfg-20240930.htm:73]** | 42.7% = (5,948 / 13,944) * 100 **[0000759944-24-000176_cfg-20240930.htm:73]** **[0000759944-24-000176_cfg-20240930.htm:74]** |

f53bacfd5e452fced0c52897feb9c9ee8c090d58366f21fc01cc64b4fc0e361c

4ff4aa0770efe9f94b31946f6bab9dc4f126432e51b3506b6df920bd145e0819

1. **NIM Expansion Outlook**  
   **Q:** What drives the expected 5bps NIM expansion in Q4 and reaching near 3% NIM by end of 2025?  
   **A:** The expected **5 basis point** NIM expansion in the fourth quarter is driven by several tailwinds: ongoing contribution from noncore items (about **2bps per quarter**), active balance sheet management including fixed asset repricing, and improving deposit migration trends shifting from a headwind to neutral or slightly positive. Additionally, receipt swaps that were previously a headwind will become a tailwind. Looking ahead, **18bps** of time-based benefits are "baked in," bringing NIM to **2.95%**, with another **~5bps** from factors like front book/back book benefits, strategic deposit initiatives, and proactive downrate protection strategies. We aim to reach near **3% NIM** by the end of 2025.  **[CFG_3402889_6]** 

2. **Loan Growth Confidence**  
   **Q:** What's driving confidence in loan growth for Q4 and into 2025?  
   **A:** While not expecting significant loan growth in the fourth quarter, we're seeing positive trends, particularly in the Private Bank, with the largest quarterly increase and a strong pipeline. As rates come down, clients are more willing to borrow. In the Commercial Bank, increased activity in private equity is boosting utilization, especially in subscription lines. On the consumer side, non-core loan runoffs are slowing from **$1.2-$1.3 billion** per quarter last year to **$800-$900 million** now. We're seeing growth in mortgage and home equity, and we expect these dynamics to contribute to loan growth into 2025.  **[CFG_3402889_9]** 

3. **Credit Quality and NPAs**  
   **Q:** Are NPAs peaking, and what's the outlook on credit quality?  
   **A:** We believe NPAs are peaking this quarter, particularly in the general office portfolio, which we're actively managing with significant reserves. While there was a blip in CRE NPAs, the overall problem loan population is consistent, and criticized and classified loans have been stable for **four quarters**. In consumer credit, net charge-offs have normalized to pre-COVID levels of **50-55bps**, and we're not observing any concerning trends. Auto delinquencies are performing as expected, reflecting portfolio dynamics rather than underlying credit deterioration.  **[CFG_3402889_9]** 

4. **Deposit Beta Expectations**  
   **Q:** What deposit beta are you assuming for the projected NIM expansion?  
   **A:** We anticipate our deposit beta to be nearing **40%** by the end of the fourth quarter, driven by proactive management of deposit costs. Over the rate-cutting cycle, we expect down-cycle betas to approximate our up-cycle betas, gradually migrating to around **50-55%**. This progression supports the NIM expansion into the fourth quarter and beyond.  **[CFG_3402889_11]** **[CFG_3402889_13]** 

5. **Swap Terminations Impact**  
   **Q:** How does terminating $4 billion of swaps affect NIM and accounting?  
   **A:** We opportunistically terminated **$4 billion** of short-dated receive-fixed swaps maturing in May 2025 when the yield curve was pricing in **7-8 rate cuts**, locking in the protective benefit. The impact of the termination is amortized over the remaining life of the swaps through May, resulting in a more favorable impact on NIM than if we had held the swaps. This strategic move aligns with our proactive interest rate risk management.  **[CFG_3402889_11]** 

6. **Operating Leverage Outlook**  
   **Q:** What's the medium-term outlook for operating leverage?  
   **A:** We see significant opportunity for operating leverage driven by NIM reflation to the **3.25% to 3.40%** range, providing strong tailwinds over time. The NIM improvement largely drops straight to the bottom line as it doesn't entail additional expenses. While fee growth, particularly in capital markets and wealth, comes with associated costs, overall operating leverage should be quite positive when we look out over the **2025 to 2027** period.  **[CFG_3402889_7]** 

7. **Front Book/Back Book Benefits**  
   **Q:** How do front book/back book dynamics contribute to NIM expansion?  
   **A:** As fixed-rate assets in our loan and securities portfolios turn over, we capture a spread benefit of **200 to 300 basis points** in the current rate environment. Approximately **$750 million** of residential mortgages and a similar amount of securities roll off quarterly, and the new assets are booked at higher yields. This ongoing dynamic significantly contributes to NIM expansion over the next couple of years.  **[CFG_3402889_6]** **[CFG_3402889_13]** 

8. **Securities Repositioning Plans**  
   **Q:** Will you utilize excess capital for securities repositioning?  
   **A:** We do not plan a large-scale securities repositioning. We actively manage the securities portfolio on an ongoing basis, but given the built-in momentum to raise NIM, there's no need to deploy capital for timing shifts in NIM expansion.  **[CFG_3402889_13]** 

956552d191054b7253de3b133cce8660800033d1d2dd001baecbb397eb036cf8

- **Prolonged Exposure to Commercial Real Estate Office Portfolio May Continue to Impact Credit Quality and Earnings:** The bank acknowledged that working through its general office portfolio is a **multiyear process** and is only in the **middle innings** of resolving these issues. This prolonged exposure could continue to weigh on credit costs and earnings in 2025 and beyond.  **[CFG_3412798_14]**
- **Reliance on Private Bank for Loan Growth Amidst Subdued Loan Demand Poses Risks:** The bank's projection of **mid-single-digit spot loan growth** depends heavily on the Private Bank, contributing about **$1 billion per quarter**. Excluding this, loan growth drops to **low single digits**, and overall loan demand remains **subdued**. If the Private Bank does not perform as expected, loan growth may be insufficient to meet targets.  **[CFG_3412798_17]**
- **Increased Expenses Due to Investments May Pressure Earnings:** The bank expects **expenses to be up about 4%** in 2025, primarily due to investments in the Private Bank and expansion into new markets. While these are intended to drive future growth, there is a risk that higher expenses may outpace revenue growth, potentially pressuring earnings if the investments do not yield expected returns.  **[CFG_3412798_8]** **[CFG_3412798_10]**

d91a00509157f17385e01441a9aa67f9b525c52543f6519236b3661713a8452d

1. **Credit Loss Expectations**  
   **Q:** Where will credit losses peak and what drives 50 bps guidance?  
   **A:** Management expects credit losses to average around **50 basis points** in 2024, slightly higher than the **46 bps** in Q4 2023, primarily due to predictable charge-offs in Commercial Real Estate General Office and continued normalization in consumer lending. They have good visibility into these areas and see no hotspots in C&I lending.  **[CFG_3370328_13]** 

2. **Net Interest Margin Outlook**  
   **Q:** Will NIM exceed 3% in 2025 as rates change?  
   **A:** The bank expects the net interest margin to exit 2024 at **2.85%** and cross the **3%** level in 2025, heading towards a medium-term range of **3.25% to 3.40%**. This outlook assumes deposit betas stabilize and down betas contribute positively as rates decline.  **[CFG_3370328_21]** 

3. **NII and PPNR Bottoming**  
   **Q:** When will NII and PPNR reach their lowest point?  
   **A:** Net Interest Income (NII) and Pre-Provision Net Revenue (PPNR) are expected to bottom in the second quarter of 2024, coinciding with the anticipated first rate cut. Factors such as fee growth and strong loan growth are expected to improve results afterward.  **[CFG_3370328_19]** 

4. **Interest Rate Sensitivity**  
   **Q:** How would more or fewer rate cuts affect NII?  
   **A:** The bank is positioned close to neutral for rate movements. If rate cuts are fewer than expected, it would be acceptable, as deposit migration is moderating and down betas are expected to contribute positively with the first rate cut anticipated in the second quarter.  **[CFG_3370328_17]** 

5. **Capital Return Plans**  
   **Q:** What are the expectations for capital returns to shareholders?  
   **A:** Management plans to maintain strong dividends and resume share buybacks, expecting a capital return ratio in the **75% to 100%** range over time. In 2023, they achieved a **95%** capital return performance.  **[CFG_3370328_24]** 

6. **Share Buyback Resumption**  
   **Q:** How much will you repurchase in Q1 2024?  
   **A:** The bank plans to repurchase approximately **$300 million** of shares in the first quarter of 2024, leveraging their strong capital position with a CET1 ratio of **10.6%**. Buybacks are expected to be more first-half oriented in 2024.  **[CFG_3370328_14]** 

7. **Expense Cuts and Efficiency**  
   **Q:** How are expense cuts being managed without hurting initiatives?  
   **A:** Management has reduced staff by **3.5%**, focusing on eliminating lower performers and redistributing work, while protecting risk, audit, and key investment areas like the private bank. They believe they are now lean and efficient.  **[CFG_3370328_11]** 

8. **Loan Growth Drivers**  
   **Q:** What are the drivers for loan growth in 2024?  
   **A:** Loan growth is expected to pick up in the second half of 2024, driven by increased commercial activity, higher loan utilization rates, and growth in private bank lending, particularly in areas like private equity and venture lending. Consumer lending opportunities in mortgages and HELOCs are also contributing factors.  **[CFG_3370328_9]** 

9. **ROTCE Targets**  
   **Q:** How will you achieve 15%-17% ROTCE, and what's the revenue mix?  
   **A:** The bank aims to increase fees to total revenues from **25%** to around **30%** over the medium term through balance sheet optimization and growth in fee-based activities like wealth management. They expect Return on Tangible Common Equity (ROTCE) to be supported by a return on tangible assets approaching **125 basis points**.  **[CFG_3370328_22]** 

10. **Capital Deployment Opportunities**  
    **Q:** Are there new investment opportunities or M&A plans?  
    **A:** The focus is on backing organic initiatives, especially the private bank and investments in areas like payments. While open to selective acquisitions in fee-based capabilities, they are primarily pursuing growth through team lift-outs and scaling up Citizens Private Wealth.  **[CFG_3370328_15]** 

11. **Basel III Impact**  
    **Q:** How might Basel III Endgame affect you?  
    **A:** Management expects minimal impact from Basel III proposals, as they have strong capital levels and can absorb regulatory changes. They are more concerned about potential RWA increases affecting lending activities and hope for adjustments in the final rules to avoid reducing lending appetite in key areas.  **[CFG_3370328_23]** 

12. **Consumer Deposit Betas**  
    **Q:** What are expectations for consumer deposit costs?  
    **A:** The bank expects consumer deposit betas to improve as rates decline. They have outperformed peers with DDA balances **300 basis points** better and net deposit growth **200 basis points** higher. The pace of consumers seeking higher-rate accounts is slowing, and they are well-positioned to manage deposit costs effectively.  **[CFG_3370328_25]** 

13. **Non-Office CRE Outlook**  
    **Q:** How is the non-office CRE portfolio performing, especially multifamily?  
    **A:** The multifamily portfolio is performing well, with small loan sizes, fixed-term loans, and good geographic diversification. Lower rates provide additional cushion in debt service coverage ratios, and capital markets remain active in this sector with ongoing transactions.  **[CFG_3370328_26]** 

14. **Fee Income Growth**  
    **Q:** What drives the 6%-9% fee income growth outlook?  
    **A:** Fee income growth is expected to be driven by strong capital markets activity, with robust pipelines in M&A advisory and underwriting. Wealth management fees are also anticipated to grow significantly, supported by investments in the private bank and hiring of key talent.  **[CFG_3370328_10]** 

15. **Expense Flexibility**  
    **Q:** Can expenses be reduced if revenue doesn't meet expectations?  
    **A:** While always seeking efficiency, management believes further significant expense cuts could jeopardize strategic initiatives like the private bank. They prefer to balance near-term delivery with medium-term growth objectives.  **[CFG_3370328_16]** 

16. **Liquidity Impact on NIM**  
    **Q:** Will liquidity builds continue to impact NIM?  
    **A:** The bank has achieved its liquidity build objectives, reaching around **117%** of Category 1 requirements, and does not expect liquidity to be a headwind to net interest margin going forward.  **[CFG_3370328_18]** 

17. **Private Bank Deposits**  
    **Q:** What is the cost and strategy of private bank deposit growth?  
    **A:** Private bank deposits are accretive to the low-cost profile, with a mix that is very attractive and includes a large proportion of DDA and low-cost checking accounts. They are not using promotions outside the norm and expect these deposits to fully fund loan growth.  **[CFG_3370328_12]** 

43596e8725d55f5e953dd566f7e18fcb8ecc2003acd6644c0746e0dda374ac83

08c9b61ac107a326807351982eba7d1316db7846ef941cad20d732e3ecd10b94

1. **Net Interest Margin Outlook**  
   **Q:** How has your NIM and NII guidance changed?  
   **A:** Management expects net interest margin (NIM) trends to improve, likely coming in at the **high end of the range** or even slightly above.  **[CFG_3379930_7]**  This is driven by better-than-expected deposit levels and lower interest-bearing deposit costs.  **[CFG_3379930_7]**  They also anticipate that net interest income (NII) will stay within the original guidance range, despite loan growth being towards the lower end.  **[CFG_3379930_7]** 

2. **Credit Quality and Office CRE**  
   **Q:** What is the outlook for credit quality, especially in office real estate?  
   **A:** Management sees **no surprises** in credit quality and is carefully managing office exposures.  **[CFG_3379930_8]**  They have a **10.6% reserve** for general office loans, based on an expected **71% decline in property values**.  **[CFG_3379930_8]**  Net charge-offs may peak **later this year or early next**, but they feel reserves are adequate and losses are progressing as expected.  **[CFG_3379930_8]** 

3. **Loan Growth Expectations**  
   **Q:** How do you see loan growth evolving this year?  
   **A:** Loan demand has been lighter than expected, with utilization levels lower in the first quarter.  **[CFG_3379930_10]**  However, management anticipates a **pickup in the second half**, driven by increased commercial activity and growth in the **private bank**.  **[CFG_3379930_10]**  They may come in at the **low end of initial expectations** for loan growth.  **[CFG_3379930_10]** 

4. **Deposit Migration and Costs**  
   **Q:** When will deposit migration stabilize, and how is it affecting NIM?  
   **A:** Negative deposit migration is **decelerating** and may stabilize until the first Federal Reserve rate cut.  **[CFG_3379930_9]**  **DDA balances have flattened**, and deposit performance has been **excellent**.  **[CFG_3379930_9]**  The impact on NIM is diminishing, and the cost of funds in the consumer segment may have **peaked in Q1**.  **[CFG_3379930_9]** 

5. **Capital Allocation and Buybacks**  
   **Q:** Will you continue share buybacks given your CET1 ratio?  
   **A:** With a strong capital position, management resumed buybacks, repurchasing **$300 million** in Q1 and planning **$200 million** in Q2.  **[CFG_3379930_11]**  Less loan growth frees up capital, allowing for continued buybacks if loan demand doesn't materialize.  **[CFG_3379930_11]** 

6. **Fee Income and Capital Markets**  
   **Q:** What is your outlook for fee income and capital markets activity?  
   **A:** The **capital markets**, **card fees**, and **wealth management** businesses are trending well and expected to be significant contributors in 2024.  **[CFG_3379930_14]**  Capital markets had a strong quarter, ranking **#1 in lead tables on the sponsor side**.  **[CFG_3379930_14]**  Some areas like service charges and mortgage were weaker but are expected to bounce back.  **[CFG_3379930_14]** 

7. **Swaps Impact on NII**  
   **Q:** How do swaps affect your NII guidance?  
   **A:** The impact of swaps is fully incorporated into NII guidance, with a **$35 million** cumulative net interest income impact from Q1 to Q4.  **[CFG_3379930_14]**  Management is confident in absorbing the step-up in swaps and maintaining the NIM outlook for the year.  **[CFG_3379930_14]** 

8. **Charge-Off Guidance**  
   **Q:** Could higher rates lead to higher net charge-offs than expected?  
   **A:** Management does not anticipate higher net charge-offs due to higher rates.  **[CFG_3379930_12]**  Broad credit quality remains **very good**, with no hotspots in C&I or consumer portfolios.  **[CFG_3379930_12]**  Office exposures are small relative to the loan book, and existing reserves are adequate.  **[CFG_3379930_12]** 

9. **Timing of Office Charge-Offs**  
   **Q:** When will office loan charge-offs peak?  
   **A:** Charge-offs on office loans may **peak later this year or early next**, but exact timing is uncertain.  **[CFG_3379930_13]**  It depends on loan extensions, negotiations, and capital put into transactions.  **[CFG_3379930_13]**  Management is comfortable with how it's progressing.  **[CFG_3379930_13]** 

10. **Fee Progression Details**  
    **Q:** Can you provide more details on fee progression and pipeline?  
    **A:** Capital markets activity has been strong, and the pace continues into Q2.  **[CFG_3379930_14]**  The conversion to **Mastercard** is driving positive developments in the card business.  **[CFG_3379930_14]**  Wealth management is benefiting from advisor hires and acquisitions, contributing to fee income growth.  **[CFG_3379930_14]** 

9367995f116b7a79918017ba030d214666f45bdb597a81d21f23b54b4f987e28

- **Limited turnover in back book assets**: The company indicated that the turnover in their back book for residential mortgages and securities is approximately **$750 million per quarter** for each category, which may not be sufficient to significantly impact earnings growth over the next couple of years.  **[CFG_3402889_15]**
- **No plans for significant securities repositioning**: Management stated that they do not plan to engage in large-scale securities repositioning, potentially limiting their ability to optimize the portfolio amid changing market conditions.  **[CFG_3402889_15]**
- **Dependence on built-in momentum to raise NIM**: The company is relying on existing momentum to improve Net Interest Margin (NIM), suggesting they may not be taking proactive measures to enhance profitability, which could be a risk if market conditions deteriorate.  **[CFG_3402889_15]**

fb2c247223a1f201af2940d1f63d355d73167ff4bededce9649493bed4ca36de

1. **Net Interest Margin Outlook**  
   **Q:** What gives confidence to raise NIM outlook higher?  
   **A:** The main reason is the higher rate outlook; the Fed's terminal rate is now expected to be closer to **4%**, up from well below 4% previously, and with their asset-sensitive balance sheet, this justifies raising the upper end of the NIM range to **3.50%**.  **[CFG_3412798_7]**  Additionally, a solid **10 basis point increase** in NIM during the fourth quarter and continued opportunistic hedging have boosted confidence.  **[CFG_3412798_7]** 

2. **Private Bank Investment and Expenses**  
   **Q:** Can higher costs from private bank investments be contained?  
   **A:** Investments in the private bank and commercial capabilities led to higher expenses in Q4. However, with improving revenue outlook, they are confident that costs can be managed. They are guiding to about **4%** expense growth next year, but stripping out Private Bank and Private Wealth, expenses are down roughly **2.5%**, and they expect to deliver positive operating leverage in **2025**.  **[CFG_3412798_8]** 

3. **Deposit Growth and Betas Impact**  
   **Q:** How are deposits and betas impacting NIM?  
   **A:** Strategic opportunities in the private bank and strong core retail deposits provide a solid foundation. Deposit betas outperformed expectations in Q4 at around **50%**, higher than the initially expected **40%**. Based on the rate outlook, betas are expected to increase to the low to mid-**50%** range by the time the terminal rate reaches **4%**, supporting confidence in the NIM trajectory.  **[CFG_3412798_9]** 

4. **NIM Exit Rate and Private Bank Investment**  
   **Q:** Is NIM exit rate between 3% to 3.10%? Will investment in private bank continue?  
   **A:** The NIM exit rate is adjusted upward to approximately **3.05% to 3.10%**.  **[CFG_3412798_10]**  The private bank, launched in mid-2023, is progressing well, delivering profitability in Q4 with about **$0.01** of EPS.  **[CFG_3412798_10]**  They are committed to growing the business profitably, potentially adding teams while maintaining financial discipline, aiming for a **20%** ROTCE target for the business by the end of next year.  **[CFG_3412798_10]** 

5. **ROTCE Targets Timing**  
   **Q:** When will the 16%-18% ROTCE target be achieved?  
   **A:** The medium-term ROTCE target of **16% to 18%** is expected to be reached by **2027**, with an upward progression through **2025** and **2026**.  **[CFG_3412798_10]** 

12165472700a14f13990f999b53b27ac275f9e971e21deb9e957220b1a417cad

- CFG anticipates a **200 to 300 basis point spread benefit** from front book back book dynamics over the next couple of years  **[CFG_3402889_15]** .
- **Approximately $750 million per quarter** in residential mortgages and securities are turning over, contributing to net interest margin growth  **[CFG_3402889_15]** .
- There's built-in momentum to raise **net interest margin (NIM)**, reducing the need to expend capital on securities repositioning  **[CFG_3402889_15]** .

e208ce8c00a2e3aa2ab09247f32f56e8d6f9cef79eb92918ce4282525d9e53f3

- **CFG's Private Bank is off to a strong start**, with **$1.2 billion in deposits** raised since its launch in late 2023, and expectations for **lending to pick up in 2024**, particularly in the **private equity and venture lending space**, driving future loan growth and strengthening client relationships.  **[CFG_3370328_9]** **[CFG_3370328_10]**
- **CFG anticipates noninterest income to increase by 6% to 9% in 2024**, driven by **strong capital markets activity**, including **robust pipelines in M&A advisory and underwriting**, as well as **expected strong growth in wealth management fees**, supported by the Private Bank investment and key hires made in Q4 2023.  **[CFG_3370328_10]**
- **CFG outperforms peers in its consumer deposit base**, with **DDA balances almost 300 basis points better** than peer average and **net deposit growth a couple of hundred basis points better** than peers in 2023, positioning the bank favorably for funding costs and liquidity, and **expected to continue this outperformance in 2024**.  **[CFG_3370328_25]**

ae18ff87605a35ebd5ffa64609083995bf30f549e7323a743bd339a738cdde44

- **High exposure to commercial real estate (CRE) loans**: CFG's commercial real estate loans are about 130% of risk-based capital plus reserves, and they plan to reduce their CRE exposure by at least 25% due to concerns over potential risks in the CRE sector.  **[CFG_3393392_19]**
- **Higher-than-expected stress capital buffer (SCB)**: The bank's SCB came in higher than anticipated, indicating increased regulatory capital requirements, which may limit capital deployment or returns to shareholders.  **[CFG_3393392_9]**
- **Reliance on deposits from venture capital and private equity firms**: A significant portion of CFG's private banking deposits comes from venture capital and private equity firms, which may be less stable sources of funding in volatile markets, potentially impacting liquidity.  **[CFG_3393392_20]**

1039bd284d4a505136fb334a49c5d9c5694fee08ee9c711b4f0cbb84d1d04450

- **Strong fee income growth driven by capital markets and wealth management, with record results in wealth and card fees, and a promising pipeline in capital markets**.  **[CFG_3393392_12]**
- **Anticipated loan growth in the second half of the year across private bank, commercial, and retail segments**, supported by increased client activity and new investments.  **[CFG_3393392_8]**
- **Deposits expected to grow in the second half, aided by contributions from the private bank and positive consumer trends**, improving funding mix and benefiting net interest income and margin.  **[CFG_3393392_25]**

2960bcc859612f7acc7c99cfa1c967ebb8825cbce00b298073dc888a206b9341

- **Net charge-offs in commercial real estate, particularly in the general office portfolio, are expected to peak late this year or early next year, but forecasting is difficult and depends on negotiations and capital injections, indicating potential for higher credit losses.**  **[CFG_3379930_13]**
- **Management acknowledges lower loan demand and expects lighter loan growth, which could negatively impact net interest income despite a stable net interest margin.**  **[CFG_3379930_20]**
- **There was a drop of approximately 36 basis points in Commercial & Industrial (C&I) loan yields quarter-over-quarter, attributed to swap maturities being replaced by forward starters at lower receipts, which may continue to impact net interest margin.**  **[CFG_3379930_21]**

299dcdba401a4c3d71add9a104b2588b4b4095bfa63aea8f4354e62c8facd1b1

- **Net Interest Margin (NIM) Expansion Driven by Asset Sensitivity**: The bank expects its NIM to increase, with an exit rate in 2025 of around **3.05% to 3.10%**  **[CFG_3412798_10]** , and has raised the upper end of its medium-term NIM target to **3.5%** by 2027.  **[CFG_3412798_7]**  This confidence is based on their **asset-sensitive balance sheet**, which benefits from higher rates, and strategic deposit management leading to improved deposit costs  **[CFG_3412798_16]** **[CFG_3412798_7]** .
- **Strong Growth in Private Bank and Private Wealth Initiatives**: The Private Bank is a significant growth driver, expected to contribute about **$1 billion** in loan growth per quarter  **[CFG_3412798_17]**  and be **5% accretive** to the bottom line in 2025  **[CFG_3412798_10]** **[CFG_3412798_8]** . By the end of next year, the Private Bank is starting to approach a **20% ROTCE target**  **[CFG_3412798_10]** , indicating strong profitability and return on equity.
- **Positive Operating Leverage Supported by Cost Management**: The bank anticipates delivering **positive operating leverage** of around **1.5%** in 2025  **[CFG_3412798_11]** , with further improvement expected in subsequent years due to NIM expansion.  **[CFG_3412798_7]**  Cost management initiatives, such as the **TOP program** which provides about a **1% benefit**, support disciplined expense growth even as the bank invests in growth initiatives.  **[CFG_3412798_8]**

a71c6845ae2348304138fc7b130fbcc530ee19390cfe0fb049ec6e6f596b1503

1. **Net Interest Margin Outlook**  
   **Q:** Can you discuss the fourth-quarter net interest margin expectations?  
   **A:** John Woods expects net interest margin (NIM) to rebound in the fourth quarter of 2024, exceeding initial expectations. Positive factors include the peaking of swap costs in the third quarter, contributions from loan growth, and benefits from deposit cost stabilization. The NIM is set to rise off a **third-quarter trough**, driven by factors such as **noncore run-off contributing about 2 basis points** of NIM expansion per quarter and positive front book/back book dynamics. A potential September rate cut by the Fed would be helpful but is not necessary for the rebound. **[CFG_3393392_10]**

2. **Capital Buffer and CRE Exposure**  
   **Q:** Are there plans to reduce the higher stress capital buffer?  
   **A:** Bruce Van Saun acknowledged disappointment with the higher Stress Capital Buffer (SEB) result but noted that it doesn't hinder their strategy due to sufficient capital. They plan to optimize the balance sheet by reducing commercial real estate (CRE) exposure over time, particularly in office and multifamily sectors. This shift will create capacity to lend in areas that deepen relationships, such as commercial and industrial (C&I) lending. **[CFG_3393392_9]**

3. **Office Loan Loss Reserves**  
   **Q:** What will allow office reserves to decrease?  
   **A:** Bruce Van Saun explained that uncertainty in the office sector remains high, affecting valuations and cap rates. The bank is conservatively maintaining a high reserve of **11.1%** on office loans and plans to let charge-offs run through while keeping the reserve stable. Improvement in the sector, possibly in 2025, would be needed before drawing down the reserve. **[CFG_3393392_11]**

4. **Loan Growth Outlook**  
   **Q:** Update on loan outlook for the second half?  
   **A:** John Woods sees positive signs for loan growth in the second half of the year. All three business segments—Private Bank, Commercial, and Retail—are expected to contribute. The Private Bank is growing loans by penetrating its customer base, Commercial activity is picking up, particularly in M&A advisory-related finance, and Retail is seeing opportunities in HELOC and mortgage lending. **[CFG_3393392_8]**

5. **Fee Income Outlook**  
   **Q:** Thoughts on investment banking pipeline and fee outlook?  
   **A:** John Woods anticipates a strong fee income performance despite typical third-quarter seasonal weakness in capital markets. The fee base is more diversified and resilient this year due to investments in Wealth and other areas. Donald McCree added that there is a pickup in new money activity, driven by private equity, M&A, and potential IPOs, suggesting a favorable backdrop for the second half and into 2025. **[CFG_3393392_11]**

6. **Cost Management**  
   **Q:** How are you managing costs amid investments and hires?  
   **A:** John Woods highlighted their ongoing TOP program, expected to generate about **$135 million** in run-rate benefits by year-end 2024. Savings come from vendor contributions, data and analytics, investments in fraud programs, and branch rationalization. These efficiencies help self-fund growth initiatives without increasing overall expenses. **[CFG_3393392_12]**

7. **Balance Sheet Growth**  
   **Q:** Is balance sheet growth aligned with business growth?  
   **A:** John Woods stated that while overall balance sheet growth has been flat, they plan to deploy excess liquidity into lending in the second half of 2024. Over the medium term, they anticipate balance sheet growth in line with business growth, adjusted for optimization initiatives. The Private Bank's expansion offers an opportunity to grow slightly faster than nominal GDP. **[CFG_3393392_10]**

8. **Capital Stack Optimization**  
   **Q:** Thoughts on capital stack and preferred stock levels?  
   **A:** John Woods explained they are comfortable with their capital position, aiming to maintain around **125%** of Risk-Weighted Assets in preferred stock, possibly up to **150%**. They see opportunities to refinance preferred stock to lower coupons, as some issues come into call periods in 2025, helping optimize their capital structure. **[CFG_3393392_12]**

174fb6d4d07e2a3f862118efc054a93e30c4c45a7a727862494f02047e59e76f

- **Citizens Financial Group's deposit franchise is strong, with non-interest-bearing deposits stable at 21%, and strategic initiatives like the Private Bank and New York Metro expansion contributing to growth.**  **[CFG_3379930_24]**
- **Net interest margin trends are improving, with expectations to come in at the higher end of the range due to better-than-expected deposit levels, controlled interest-bearing deposit costs, and favorable funding mix.**  **[CFG_3379930_9]**
- **The bank is experiencing a positive trajectory in fee income, particularly from capital markets, card fees, and wealth management services, driven by strategic investments positioning Citizens to benefit from a more constructive capital markets environment.**  **[CFG_3379930_14]**

4dcf62cfa824e78749b69e5965bddab2edf2295ddfe164c067a677618bff8e52

Citizens Financial Group Inc (CFG)

Financials