BUSINESS OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2019

NOTE 17 - BUSINESS OPERATING SEGMENTS

Citizens is managed by its Chief Executive Officer on a segment basis. The Company’s two business operating segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has a segment head who reports directly to the Chief Executive Officer. The Chief Executive Officer has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the Chief Executive Officer. For more information on our business operating segments, as well as Other non-segment operations, see Note 25 “Business Operating Segments,” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2018.



	As of and for the Three Months Ended June 30, 2019
(in millions)	Consumer Banking		Commercial Banking		Other			Consolidated
Net interest income		$799		$371		($4	)		$1,166
Noninterest income	277		149		36			462
Total revenue	1,076		520		32			1,628
Noninterest expense	715		217		19			951
Profit before provision for credit losses	361		303		13			677
Provision for credit losses	78		25		(6		)	97
Income before income tax expense (benefit)	283		278		19			580
Income tax expense (benefit)	70		62		(5		)	127
Net income		$213		$216		$24			$453
Total average assets		$65,485		$56,135		$39,869			$161,489



	As of and for the Three Months Ended June 30, 2018
(in millions)	Consumer Banking		Commercial Banking		Other			Consolidated
Net interest income		$759		$376		($14	)		$1,121
Noninterest income	228		140		20			388
Total revenue	987		516		6			1,509
Noninterest expense	658		200		17			875
Profit (loss) before provision for credit losses	329		316		(11		)	634
Provision for credit losses	66		9		10			85
Income (loss) before income tax expense (benefit)	263		307		(21		)	549
Income tax expense (benefit)	66		70		(12		)	124
Net income (loss)		$197		$237		($9	)		$425
Total average assets		$61,232		$52,170		$39,851			$153,253



	As of and for the Six Months Ended June 30, 2019
(in millions)	Consumer Banking		Commercial Banking		Other			Consolidated
Net interest income		$1,587		$743		($4	)		$2,326
Noninterest income	524		299		67			890
Total revenue	2,111		1,042		63			3,216
Noninterest expense	1,415		426		47			1,888
Profit before provision for credit losses	696		616		16			1,328
Provision for credit losses	145		46		(9		)	182
Income before income tax expense (benefit)	551		570		25			1,146
Income tax expense (benefit)	136		127		(9		)	254
Net income		$415		$443		$34			$892
Total average assets		$65,247		$55,884		$39,824			$160,955



	As of and for the Six Months Ended June 30, 2018
(in millions)	Consumer Banking		Commercial Banking		Other			Consolidated
Net interest income		$1,492		$733		($13	)		$2,212
Noninterest income	450		265		44			759
Total revenue	1,942		998		31			2,971
Noninterest expense	1,314		408		36			1,758
Profit (loss) before provision for credit losses	628		590		(5		)	1,213
Provision for credit losses	138		5		20			163
Income (loss) before income tax expense (benefit)	490		585		(25		)	1,050
Income tax expense (benefit)	123		133		(19		)	237
Net income (loss)		$367		$452		($6	)		$813
Total average assets		$61,290		$51,286		$39,817			$152,393

There have been no significant changes in the management accounting practices utilized by the Company regarding the basis of presentation for segment results as discussed in Note 25 “Business Operating Segments,” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2018.