EX-99.1 2 a3q22earningsrelease.htm EX-99.1 Document
        

citizenslogoa05a.jpg

Citizens Financial Group, Inc. Reports Third Quarter 2022 Net Income of
$636 million and EPS of $1.23
Underlying Net Income of $669 million and EPS of $1.30*

Key Financial Data3Q222Q223Q21
Third Quarter 2022 Highlights
 
Income
Statement		($s in millions)
■Underlying EPS of $1.30 and ROTCE of 17.9%
■Underlying PPNR of $982 million, up 16% QoQ
–NII up 11% QoQ given improved net interest margin, up 21bps, and interest-earning asset growth
–Fees down 2% QoQ with FX and derivative products revenue down from record prior quarter
–Expenses well controlled, up 1% QoQ
■Strong positive underlying operating leverage QoQ of 6.0%
–Underlying efficiency ratio improved to 54.9%
■Continued strong credit performance with NCO ratio of 19 bps
■Average loans up 2% QoQ led by strength in commercial; period-end loans stable
–Loan yield up 62 bps QoQ
■Average deposits up 1% QoQ, with period-end deposits stable; deposit costs up 27 bps
■Period-end LDR of 87%; liquidity position remains strong
■CET1 ratio slightly above target midpoint at 9.8%
■TBV/share of $26.62, down 8.6% QoQ
Total revenue$2,177 $1,999 $1,659 
Pre-provision profit936 694 648 
Underlying pre-provision profit982 850 671 
Provision (benefit) for credit losses123 216 (33)
Underlying provision (benefit) for credit losses123 71 (33)
Net income636 364 530 
Underlying net income669 595 546 
Balance Sheet
&
Credit Quality		($s in billions)
Period-end loans and leases$156.1 $156.2 $123.3 
Average loans and leases156.9 153.9 122.6 
Period-end deposits178.6 178.9 152.2 
Average deposits177.6 176.4 151.9 
Period-end loans-to-deposit ratio87.4 %87.3 %81.0 %
NCO ratio0.19 %0.13 %0.14 %
Financial MetricsDiluted EPS$1.23 $0.67 $1.18 
Underlying EPS1.30 1.14 1.22 
ROTCE17.0 %9.1 %13.7 %
Underlying ROTCE17.9 15.5 14.2 
Net interest margin, FTE3.25 3.04 2.72 
Efficiency ratio57.0 65.3 60.9 
Underlying efficiency ratio54.9 58.2 59.5 
CET19.8 %9.6 %10.3 %
TBV/Share$26.62 $29.14 $34.44 

Third Quarter 2022 ImpactsPre-tax $EPS
Notable Items($s in millions except per share data)
Integration related$(37)$(0.06)
TOP revenue and efficiency initiatives(9)(0.01)
Total:$(46)$(0.07)
Comments from Chairman and CEO Bruce Van Saun
“This was another excellent quarter for Citizens”, said Chairman and CEO Bruce Van Saun. “We continue to capture the benefit of higher rates, with deposit costs under control, higher net interest margin and net interest income. Our balance sheet management strategies have delivered stable deposits and attractive commercial loan growth, while rationalizing selective acquired portfolios and auto. Our integration efforts around the New York Metro acquisitions are progressing well, and we
*Results presented on an Underlying basis are non-GAAP Financial Measures. See page 15 for additional information on our use of Non-GAAP Financial Measures.
Citizens Financial Group, Inc.
continue to drive strong execution of our strategic initiatives while exhibiting our usual expense discipline. Credit metrics remain favorable, and we feel well-prepared for changes in the macro environment.”
Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on November 16, 2022 to shareholders of record at the close of business on November 2, 2022.
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Citizens Financial Group, Inc.
Earnings highlights(1):
Quarterly Trends
 3Q22 change from
($s in millions, except per share data)3Q222Q223Q212Q223Q21
Earnings$/bps%$/bps%
Net interest income$1,665 $1,505 $1,145 $160 11  %$520 45  %
Noninterest income512 494 514 18 4 (2)— 
Total revenue2,177 1,999 1,659 178 9 518 31 
Noninterest expense1,241 1,305 1,011 (64)(5)230 23 
Pre-provision profit936 694 648 242 35 288 44 
Provision (benefit) for credit losses123 216 (33)(93)(43)156 NM
Net income636 364 530 272 75 106 20 
Preferred dividends25 32 26 (7)(22)(1)(4)
Net income available to common stockholders$611 $332 $504 $279 84  %$107 21  %
After-tax notable Items33 231 16 (198)(86)17 106
Underlying net income$669 $595 $546 $74 12  %$123 23  %
Underlying net income available to common stockholders644 563 520 81 14124 24
Average common shares outstanding
Basic (in millions)495.7 491.5 426.1 4.2 1 69.6 16 
Diluted (in millions)497.5 493.3 427.8 4.2 1 69.6 16 
Diluted earnings per share$1.23 $0.67 $1.18 $0.56 84  %$0.05 4  %
Underlying diluted earnings per share1.30 1.14 1.22 0.16 140.08 7
Performance metrics
Net interest margin3.24 %3.04 %2.72 %20  bps52  bps
Net interest margin, FTE3.25 3.04 2.72 21 53 
Effective income tax rate21.8 23.8 22.4 (197)(55)
Efficiency ratio57.0 65.3 60.9 (825)(390)
Underlying efficiency ratio54.9 58.2 59.5 (326)(465)
Return on average common equity10.9 5.9 9.4 496 152 
Return on average tangible common equity17.0 9.1 13.7 783 325 
Underlying return on average tangible common equity17.9 15.5 14.2 246 374 
Return on average total assets1.12 0.66 1.13 46 (1)
Return on average total tangible assets1.16 0.69 1.17 47 (1)
Underlying return on average total tangible assets1.22 %1.12 %1.21 %10  bps1  bps
Capital adequacy(2,3)
Common equity tier 1 capital ratio9.8 %9.6 %10.3 %
Total capital ratio12.6 12.3 13.4 
Tier 1 leverage ratio9.2 9.3 9.7 
Allowance for credit losses to loans and leases1.41 %1.37 %1.63 %4  bps(22) bps
Asset quality(3)
Nonaccrual loans and leases to loans and leases0.55 %0.54 %0.61 %1  bps(6) bps
Allowance for credit losses to nonaccrual loans and leases258 256 268 161 (1,065)
Net charge-offs as a % of average loans and leases0.19 %0.13 %0.14 %6  bps5  bps
1) Unless otherwise noted, references to balance sheet items are on an average basis, loans exclude loans held for sale, earnings per share
represent fully diluted per common share and references to NIM are on a FTE basis.
2) Current reporting-period regulatory capital ratios are preliminary.
3) Capital adequacy and asset-quality ratios calculated on a period-end basis, except net charge-offs.







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

Underlying results:

Quarterly Trends
 3Q22 change from
($s in millions, except per share data)3Q222Q223Q212Q223Q21
$/bps%$/bps%
Net interest income$1,665 $1,505 $1,145 $160 11  %$520 45  %
Noninterest income512 525 514 (13)(2)(2)— 
Total revenue$2,177 $2,030 $1,659 $147 7  %$518 31  %
Noninterest expense$1,195 $1,180 $988 $15 1  %$207 21  %
Provision (benefit) for credit losses123 71 (33)52 73156 NM
Net income available to common stockholders$644 $563 $520 $81 14 %$124 24 %
Performance metrics
EPS$1.30 $1.14 $1.22 $0.16 14  %$0.08 7  %
Efficiency ratio54.9  %58.2  %59.5  %(326) bps(465) bps
Return on average tangible common equity17.9  %15.5  %14.2  %246  bps374  bps
Operating leverage6.0  %10.2  %




Consolidated balance sheet review(1):

 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
$/bps%$/bps%
Total assets$224,684 $226,712 $187,007 $(2,028)(1) %$37,677 20  %
Total loans and leases156,140 156,172 123,318 (32)— 32,822 27 
Total loans held for sale1,962 3,455 3,270 (1,493)(43)(1,308)(40)
Deposits178,566 178,925 152,221 (359)— 26,345 17 
Stockholders' equity23,146 24,328 23,423 (1,182)(5)(277)(1)
Stockholders' common equity21,132 22,314 21,409 (1,182)(5)(277)(1)
Tangible common equity$13,197 $14,444 $14,677 $(1,247)(9) %$(1,480)(10) %
Loans-to-deposit ratio (period-end)(2)
87.4 %87.3  %81.0  %16  bps643  bps
Loans-to-deposit ratio (average)(2)
88.3 %87.2 %80.8 %108  bps757  bps
1) Represents period end unless otherwise noted.
2) Excludes loans held for sale.

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Citizens Financial Group, Inc.

Notable items:
Quarterly results for second and third quarter 2022 and third quarter 2021 reflect notable items primarily related to integration costs associated with the acquisitions of HSBC, ISBC and JMP Group LLC, as well as TOP revenue and efficiency initiatives. In addition, second quarter 2022 results include a notable item representing the day-one CECL provision expense ("double count") related to the ISBC transaction. These notable items have been excluded from reported results to better reflect Underlying operating results.
Notable items - integration related3Q222Q223Q21
($s in millions, except per share data)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
  Noninterest income$— $— $(31)$(23)$— $— 
EPS Impact - Noninterest income$— $(0.05)$— 
Salaries & benefits$(17)$(12)$(64)$(48)$— $— 
Outside services(11)(8)(35)(26)(4)(3)
Occupancy(2)(1)— — — — 
Other expense(7)(5)(5)(4)— — 
   Noninterest expense$(37)$(26)$(104)$(78)$(4)$(3)
EPS Impact - Noninterest expense $(0.06)$(0.16)$(0.01)
ISBC Day 1 CECL provision expense (“double count”)$— $— $(145)$(108)$— $— 
EPS Impact - Provision for credit losses$— $(0.22)$— 
  Tax integration cost$— $— $— $(6)$— $— 
EPS Impact - Tax integration cost$— $(0.01)$— 
Total integration related$(37)$(26)$(280)$(215)$(4)$(3)
EPS Impact - Total integration related$(0.06)$(0.44)$(0.01)
Other notable items - TOP related3Q222Q223Q21
($s in millions, except per share data)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-tax
Other notable items- TOP & other actions
Salaries & benefits$— $— $(8)$(6)$13 $9 
Equipment and software— — (6)(4)(7)(5)
Outside services(9)(7)(6)(5)(8)(6)
Occupancy— — (1)(1)(1)— 
Other expense— — — — (16)(11)
   Noninterest expense$(9)$(7)$(21)$(16)$(19)$(13)
Total Other Notable Items$(9)$(7)$(21)$(16)$(19)$(13)
EPS Impact - Other Notable Items $(0.01)$(0.03)$(0.03)
Total Notable Items$(46)$(33)$(301)$(231)$(23)$(16)
Total EPS Impact$(0.07)$(0.47)$(0.04)












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Citizens Financial Group, Inc.

Discussion of results:
Net interest income 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
$/bps%$/bps%
Interest income:
Interest and fees on loans and leases and loans held for sale$1,690 $1,412 $1,100 $278 20  %$590 54  %
Investment securities243 201 116 42 21 127 109 
Interest-bearing deposits in banks36 13 6 23 177 30 NM
Total interest income$1,969 $1,626 $1,222 $343 21  %$747 61  %
Interest expense:
Deposits$176 $54 $35 $122 226  %$141 NM
Short-term borrowed funds11 10 — 1 10 11 100 
Long-term borrowed funds117 57 42 60 105 75 179 
Total interest expense$304 $121 $77 $183 151  %$227 NM
Net interest income$1,665 $1,505 $1,145 $160 11  %$520 45  %
Net interest margin, FTE3.25  %3.04  %2.72  %21  bps53  bps
Third quarter 2022vs.second quarter 2022
Net interest income of $1.7 billion increased 11%, reflecting a higher net interest margin and 2% growth in interest-earning assets, including average loan growth of 2% and average investments growth of 7%.
•Net interest margin of 3.25% increased 21 basis points, reflecting higher earning-asset yields given higher market interest rates, partially offset by increased funding costs.
Third quarter 2022vs.third quarter 2021
Net interest income of $1.7 billion increased 45%, reflecting a higher net interest margin and 22% growth in interest-earning assets, including the impact of the HSBC and ISBC transactions.
•Net interest margin of 3.25% increased 53 basis points, reflecting higher earning-asset yields given higher market interest rates, the impact of the HSBC and ISBC transactions and the deployment of cash into loan growth, partially offset by increased funding costs.



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Citizens Financial Group, Inc.
5
Noninterest Income 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
$%$%
Capital markets fees$89 $88 $72 $1 1  %$17 24  %
Service charges and fees109 108 110 1 1 (1)(1)
Mortgage banking fees66 72 108 (6)(8)(42)(39)
Card fees71 71 66 — — 5 8 
Trust and investment services fees61 66 61 (5)(8)— — 
Letter of credit and loan fees40 40 39 — — 1 3 
Foreign exchange and derivative products42 60 29 (18)(30)13 45 
Securities gains, net— 1 3 (1)(100)(3)(100)
Other income(1)
34 (12)26 46 NM8 31
Noninterest income$512 $494 $514 $18 4  %$(2)—  %
Notable items$— $(31)$— $31 100 $— — 
Underlying noninterest income$512 $525 $514 $(13)(2) %$(2)—  %
Third quarter 2022vs.second quarter 2022
Underlying noninterest income of $512 million decreased $13 million, or 2%.
•Capital markets fees increased $1 million, reflecting higher M&A advisory fees offset by lower loan syndication fees.
•Mortgage banking fees decreased $6 million, driven mainly by lower production volume given higher interest rates.
•Trust and investment services fees decreased $5 million due to the impact of lower asset values on portfolio billing.
•Foreign exchange and derivative products revenue decreased $18 million, reflecting a moderation of client hedging activity from record levels.
•On an Underlying basis, other income increased $15 million reflecting a seasonal improvement related to tax-advantaged investments and higher leasing income. Other income in second quarter 2022 included a notable item of $31 million related to mark-to-market losses on ISBC loans classified as held-for-sale.
Third quarter 2022vs.third quarter 2021
Underlying noninterest income of $512 million was broadly stable compared to third quarter 2021.
•Capital markets fees increased $17 million, reflecting the impact of acquisitions, partially offset by lower underwriting.
•Mortgage banking fees decreased $42 million, driven by lower gain-on-sale margins and production volumes, partially offset by higher servicing revenue.
•Card fees increased $5 million, given higher transaction volumes.
•Foreign exchange and derivative products revenue increased $13 million reflecting increased client interest rate, commodity and foreign exchange hedging activity.
•Other income increased $8 million, reflecting higher investment and leasing income.




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Citizens Financial Group, Inc.
Noninterest Expense 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
$%$%
Salaries and employee benefits$639 $683 $509 $(44)(6)%$130 26 %
Equipment and software159 169 157 (10)(6)2 1 
Outside services172 189 144 (17)(9)28 19 
Occupancy106 111 77 (5)(5)29 38 
Other operating expense165 153 124 12 8 41 33 
Noninterest expense$1,241 $1,305 $1,011 $(64)(5)%$230 23 %
Notable items$46 $125 $23 $(79)(63)%$23 100%
Underlying, as applicable
Salaries and employee benefits$622 $611 $522 $11 2 %$100 19 %
Equipment and software159 163 150 (4)(2)9 6 
Outside services152 148 132 4 3 20 15 
Occupancy104 110 76 (6)(5)28 37 
Other operating expense158 148 108 10 7 50 46 
Underlying noninterest expense$1,195 $1,180 $988 $15 1 %$207 21 %
Third quarter 2022vs.second quarter 2022
Underlying noninterest expense of $1.195 billion, up 1% given a modest increase in salaries and employee benefits and higher advertising costs, largely offset by lower occupancy expense related to merger integration. Results reflect strong expense discipline and the benefit of efficiency initiatives.
The effective tax rate was 21.8%, down from 23.7% reflecting nonrecurring tax impacts from the ISBC acquisition in second quarter 2022.
Third quarter 2022vs.third quarter 2021
Underlying noninterest expense of $1.195 billion remains well-controlled. On an Underlying basis and excluding the HSBC and ISBC transactions, and the Commercial fee-based acquisitions that closed after second quarter 2021, noninterest expense increased 4% reflecting higher salaries and employee benefits, as well as higher other operating expenses, namely FDIC insurance, travel and advertising costs, partially offset by the benefit of efficiency initiatives.
The effective tax rate of 21.8% was down from 22.4% in third quarter 2021.
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Citizens Financial Group, Inc.
Interest-earning assets 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
Period-end interest-earning assets$%$%
Investments$34,813 $35,828 $28,107 $(1,015)(3) %$6,706 24  %
Interest-bearing deposits in banks7,186 5,527 12,860 1,659 30 (5,674)(44)
Commercial loans and leases81,114 81,445 57,955 (331)— 23,159 40 
Retail loans75,026 74,727 65,363 299 — 9,663 15 
Total loans and leases156,140 156,172 123,318 (32)— 32,822 27 
Loans held for sale, at fair value1,048 1,377 3,177 (329)(24)(2,129)(67)
Other loans held for sale914 2,078 93 (1,164)(56)821 NM
Total loans and leases and loans held for sale158,102 159,627 126,588 (1,525)(1)31,514 25 
Total period-end interest-earning assets$200,101 $200,982 $167,555 $(881)—  %$32,546 19  %
Average interest-earning assets
Investments$38,510 $35,903 $27,468 $2,607 7  %$11,042 40  %
Interest-bearing deposits in banks5,203 4,630 13,749 573 12 (8,546)(62)
Commercial loans and leases82,047 79,684 58,681 2,363 3 23,366 40 
Retail loans74,832 74,170 63,960 662 1 10,872 17 
Total loans and leases156,879 153,854 122,641 3,025 2 34,238 28 
Loans held for sale, at fair value1,600 1,937 3,299 (337)(17)(1,699)(52)
Other loans held for sale1,385 2,353 112 (968)(41)1,273 NM
Total loans and leases and loans held for sale159,864 158,144 126,052 1,720 1 33,812 27 
Total average interest-earning assets$203,577 $198,677 $167,269 $4,900 2  %$36,308 22  %

Third quarter 2022vs.second quarter 2022
Period-end interest-earning assets of $200.1 billion decreased $881 million, as a $1.5 billion decrease in loans held for sale and a $1.0 billion decrease in investments were partially offset by a $1.7 billion increase in cash held in interest-bearing deposits.
Average interest-earning assets of $203.6 billion increased $4.9 billion, or 2%, as a $3.0 billion increase in loans and a $2.6 billion increase in investments was partly offset by a $1.3 billion decrease in loans held for sale. Loan growth of 2% was driven by commercial, reflecting growth in C&I and CRE given increased line utilization and slower paydowns.
The average effective duration of the securities portfolio was 5.9 years compared with 5.7 years at June 30, 2022 and 3.9 years at September 30, 2021.
Third quarter 2022vs.third quarter 2021
Period-end interest-earning assets of $200.1 billion increased $32.5 billion, or 19%, as a $32.8 billion increase in loans and a $6.7 billion increase in investments was partly offset by a $5.7 billion decrease in cash held in interest-bearing deposits reflecting the deployment of elevated liquidity. Excluding the impact of the HSBC and ISBC transactions, loan growth was 9% with 13% growth in commercial led by C&I, and 6% growth in retail given strength in mortgage and home equity, partially offset by planned run off in auto and personal unsecured installment loans.
Average interest-earning assets of $203.6 billion increased $36.3 billion, or 22%, as a $34.2 billion increase in loans and an $11.0 billion increase in investments was partly offset by a $8.5 billion decrease in cash held in interest-bearing deposits reflecting the deployment of elevated liquidity. Excluding the impact of the HSBC and ISBC transactions, loan growth was 10%, with 13% growth in commercial, reflecting higher line utilization, partly offset by a reduction in PPP. Commercial growth was 18% excluding the impact of the HSBC and ISBC transactions and PPP. Retail loans increased 8%, driven by mortgage, home equity, auto and education, partially offset by planned run off of personal unsecured installment loans.
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Citizens Financial Group, Inc.
    
Deposits 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
Period-end deposits$%$%
Demand$51,888 $54,169 $48,184 $(2,281)(4) %$3,704 8  %
Money market49,081 48,063 48,935 1,018 2 146 — 
Checking with interest38,040 39,611 27,985 (1,571)(4)10,055 36 
Savings29,882 27,959 21,166 1,923 7 8,716 41 
Term9,675 9,123 5,951 552 6 3,724 63 
Total period-end deposits$178,566 $178,925 $152,221 $(359)—  %$26,345 17  %
Average deposits
Demand$53,293 $54,189 $47,873 $(896)(2) %$5,420 11  %
Money market47,374 48,795 49,159 (1,421)(3)(1,785)(4)
Checking with interest38,297 38,747 27,965 (450)(1)10,332 37 
Savings28,741 27,661 20,803 1,080 4 7,938 38 
Term9,913 6,970 6,071 2,943 42 3,842 63 
Total average deposits$177,618 $176,362 $151,871 $1,256 1  %$25,747 17  %
Third quarter 2022vs.second quarter 2022
Total period-end deposits of $178.6 billion were broadly stable, as declines in demand deposits and checking with interest were largely offset by growth in savings, money market accounts and term.
Average deposits of $177.6 billion were up 1%, driven by growth in term and savings, partially offset by decreases in money market accounts, demand deposits and checking with interest.
Third quarter 2022vs.third quarter 2021
Total period-end deposits of $178.6 billion increased $26.3 billion, or 17%, driven by the $25.6 billion impact of the HSBC and ISBC transactions. Excluding these transactions, deposits were broadly stable with growth in checking with interest, savings and term, largely offset by a decrease in money market accounts and demand deposits.
Average deposits of $177.6 billion increased $25.7 billion, or 17%, including the $25.7 billion impact of the HSBC and ISBC transactions. Excluding these transactions, deposits were up slightly, with growth in savings, checking with interest and term, offset by decreases in money market accounts and demand deposits.


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Citizens Financial Group, Inc.
Borrowed Funds 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
Period-end borrowed funds$%$%
Short-term borrowed funds$263 $3,763 $8 $(3,500)(93) %$255 NM
Long-term borrowed funds
FHLB advances9,519 8,269 20 1,250 159,499 NM
Senior debt4,954 4,176 5,345 778 19 (391)(7)
Subordinated debt and other debt1,813 1,995 1,582 (182)(9)231 15 
Total borrowed funds$16,549 $18,203 $6,955 $(1,654)(9) %$9,594 138  %
Average borrowed funds
Short-term borrowed funds$2,043 $3,995 $23 $(1,952)(49) %$2,020 NM
Long-term borrowed funds
FHLB advances9,226 4,437 19 4,789 1089,207 NM
Senior debt4,633 4,022 5,356 611 15 (723)(13)
Subordinated debt and other debt1,988 1,763 1,581 225 13 407 26 
Total average borrowed funds$17,890 $14,217 $6,979 $3,673 26  %$10,911 156  %
Third quarter 2022vs.second quarter 2022
•Period-end borrowed funds decreased by $1.7 billion, primarily due to a net reduction in FHLB advances, partially offset by an increase in senior debt. Short-term FHLB advances decreased $3.5 billion, partially offset by an increase in long-term FHLB advances of $1.3 billion, for a net reduction in FHLB advances of $2.3 billion. Average borrowed funds increased by $3.7 billion, given loan and investments growth and an increase in senior debt, partially offset by a decline in short-term FHLB advances.
Third quarter 2022vs.third quarter 2021
•Period-end borrowed funds increased by $9.6 billion, given an increase in long-term FHLB advances primarily related to the ISBC balance sheet, partly offset by a decrease in senior debt. Average borrowed funds increased by $10.9 billion given an increase in long-term and short-term FHLB advances primarily related to the ISBC balance sheet, partly offset by a decrease in senior debt.


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Citizens Financial Group, Inc.
Capital 3Q22 change from
($s and shares in millions, except per share data)3Q222Q223Q212Q223Q21
Period-end capital$%$%
Stockholders' equity$23,146 $24,328 $23,423 $(1,182)(5) %$(277)(1) %
Stockholders' common equity21,132 22,314 21,409 (1,182)(5)(277)(1)
Tangible common equity13,197 14,444 14,677 (1,247)(9)(1,480)(10)
Tangible book value per common share$26.62 $29.14 $34.44 $(2.52)(9) %$(7.82)(23) %
Common shares - at end of period495.8 495.7 426.2 0.2 — 69.6 16 
Common shares - average (diluted)497.5 493.3 427.8 4.2 1  %69.6 16  %
Common equity tier 1 capital ratio(1)
9.8 %9.6 %10.3 %
Total capital ratio(1)
12.6 12.3 13.4 
Tier 1 leverage ratio(1)
9.2 %9.3 %9.7 %
1) Current reporting-period regulatory capital ratios are preliminary.
Third quarter 2022
•The CET1 capital ratio was 9.8% as of September 30, 2022 compared with 9.6% at June 30, 2022 and 10.3% at September 30, 2021.
•Total capital ratio of 12.6% compares with 12.3% at June 30, 2022 and 13.4% as of September 30, 2021.
•Tangible book value per common share of $26.62 decreased 8.6% compared with second quarter 2022, primarily driven by the negative impact of higher long-term rates on the investment securities and swap portfolios.
•Citizens paid $210 million in common dividends to shareholders during third quarter 2022. This compares with $195 million in common dividends during second quarter 2022 and $167 million during third quarter 2021.
12
Citizens Financial Group, Inc.
Credit quality review 3Q22 change from
($s in millions)3Q222Q223Q212Q223Q21
$/bps%$/bps%
Nonaccrual loans and leases(1)
$852 $839 $747 $13 2  %$105 14  %
90+ days past due and accruing(2)
462 712 312 (250)(35)150 48
Net charge-offs74 49 44 25 51 30 68 
Provision (benefit) for credit losses123 216 (33)(93)(43)156 NM
Allowance for credit losses $2,196 $2,147 $2,004 $49 2  %$192 10  %
Nonaccrual loans and leases to loans and leases0.55  %0.54  %0.61  %1  bps(6)
Net charge-offs as a % of total loans and leases0.19 0.13 0.14 6 5 
Allowance for credit losses to loans and leases1.41 1.37 1.63 4 (22)
Allowance for credit losses to nonaccrual loans and leases257.7  %256.0  %268.3  %161  bps(1,065) bps
1) Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing.
2) 90+ days past due and accruing includes $425 million, $623 million, and $289 million of loans fully or partially guaranteed by the FHA, VA, and USDA for September 30, 2022, June 30, 2022, and September 30, 2021, respectively.
Third quarter 2022vs.second quarter 2022
•The nonaccrual loans to total loans ratio was 0.55%, stable with 0.54% at June 30, 2022.
•Nonaccrual loans of $852 million increased $13 million, or 2%, reflecting a $32 million increase in commercial, partially offset by a $19 million decline in retail, primarily mortgage.
•Net charge-offs of $74 million, or 19 basis points of average loans and leases, were up 6 basis points from the prior quarter. Net charge-offs increased $25 million given a $20 million increase in retail driven by unsecured, auto and home equity, and a $5 million increase in commercial.
•The third quarter 2022 provision for credit losses of $123 million compares with $216 million for second quarter 2022 which includes a $145 million day-one CECL provision expense (“double count”) tied to the ISBC transaction. Excluding this item, provision was up $52 million and the reserve build was $49 million. This reflects an increased risk of recession, partly offset by improvement in portfolio mix, and results in an allowance for credit losses ratio of 1.41%, up from 1.37% as of June 30, 2022.
•The allowance for credit losses to nonaccrual loans and leases ratio of 258% compares with 256% as of June 30, 2022.
Third quarter 2022vs.third quarter 2021
•The nonaccrual loans to total loans ratio of 0.55% decreased from 0.61% at September 30, 2021 largely tied to the addition of the ISBC and HSBC portfolios.
•Nonaccrual loans increased $105 million, or 14%, largely reflecting the incorporation of ISBC.
•Net charge-offs of 19 basis points of average loans and leases compares with 14 basis points in third quarter 2021.
•Net charge-offs of $74 million increased $30 million reflecting a $29 million increase in retail, primarily unsecured, auto and home equity, and a $1 million increase in commercial.
•Provision for credit losses of $123 million compares with a $33 million benefit in third quarter 2021.
•Allowance for credit losses of $2.2 billion was up $192 million compared with with September 30, 2021, primarily reflecting the additions of the ISBC and HSBC portfolios. Allowance for credit losses ratio of 1.41% as of September 30, 2022, compares with 1.63% as of September 30, 2021.
•The allowance for credit losses to nonaccrual loans and leases ratio of 258% compares with 268% as of September 30, 2021.
13
Citizens Financial Group, Inc.

Corresponding Financial Tables and Information
Investors are encouraged to review the foregoing summary and discussion of Citizens’ earnings and financial condition in conjunction with the detailed financial tables and other information available on the Investor Relations portion of the company’s website at www.citizensbank.com/about-us.
Media:    Peter Lucht - (781) 655-2289
Investors: Kristin Silberberg - (203) 900-6854
Conference Call
CFG management will host a live conference call today with details as follows:
Time:    9:00 am ET
Dial-in: (877) 336-4440, conference ID 6086305
Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations.
Replay Information: A replay of the conference call will be available beginning at 12:00 pm ET on October 19, 2022 through November 19, 2022. Please dial (866) 207-1041 and enter access code 8979691. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $224.7 billion in assets as of September 30, 2022. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,400 ATMs and more than 1,200 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn or Facebook.

14
Citizens Financial Group, Inc.

Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures:
This document contains non-GAAP financial measures denoted as Underlying results, excluding HSBC and ISBC, excluding acquisitions and excluding PPP. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. See the following pages for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.
Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.
15
Citizens Financial Group, Inc.

Non-GAAP financial measures and reconciliations
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$%$%
Noninterest income, Underlying:
Noninterest income (GAAP)$512 $494 $514 $18 4 %($2)— %
Less: Notable items— (31)— 31 100 — — 
Noninterest income, Underlying (non-GAAP)$512 $525 $514 ($13)(2 %)($2)— %
Total revenue, Underlying:
Total revenue (GAAP)A$2,177 $1,999 $1,659 $178 9 %$518 31 %
Less: Notable items— (31)— 31 100 — — 
Total revenue, Underlying (non-GAAP)B$2,177 $2,030 $1,659 $147 7 %$518 31 %
Noninterest expense, Underlying:
Noninterest expense (GAAP)C$1,241 $1,305 $1,011 ($64)(5 %)$230 23 %
Less: Notable items46 125 23 (79)(63)23 100
Noninterest expense, Underlying (non-GAAP)D$1,195 $1,180 $988 $15 1 %$207 21 %
Pre-provision profit:
Total revenue (GAAP)A$2,177 $1,999 $1,659 $178 9 %$518 31 %
Less: Noninterest expense (GAAP)C1,241 1,305 1,011 (64)(5)230 23 
Pre-provision profit (GAAP)$936 $694 $648 $242 35 %$288 44 %
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)B$2,177 $2,030 $1,659 $147 7 %$518 31 %
Less: Noninterest expense, Underlying (non-GAAP)D1,195 1,180 988 15 1 207 21 
Pre-provision profit, Underlying (non-GAAP)$982 $850 $671 $132 16 %$311 46 %
Provision (benefit) for credit losses, Underlying:
Provision (benefit) for credit losses (GAAP)$123 $216 ($33)($93)(43%)$156 NM
Less: Notable items— 145 — (145)(100)— — 
Provision (benefit) for credit losses, Underlying (non-GAAP)$123 $71 ($33)$52 73%$156 NM
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)E$813 $478 $681 $335 70 %$132 19 %
Less: Expense before income tax benefit related to notable items(46)(301)(23)255 85(23)(100)
Income before income tax expense, Underlying (non-GAAP)F$859 $779 $704 $80 10 %$155 22 %
Income tax expense, Underlying:
Income tax expense (GAAP)G$177 $114 $151 $63 55 %$26 17 %
Less: Income tax benefit related to notable items(13)(70)(7)57 81(6)(86)
Income tax expense, Underlying (non-GAAP)H$190 $184 $158 $6 3 %$32 20 %
Net income, Underlying:
Net income (GAAP)I$636 $364 $530 $272 75 %$106 20 %
Add: Notable items, net of income tax benefit33 231 16 (198)(86)17 106
Net income, Underlying (non-GAAP)J$669 $595 $546 $74 12 %$123 23 %
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)K$611 $332 $504 $279 84 %$107 21 %
Add: Notable items, net of income tax benefit33 231 16 (198)(86)17 106
Net income available to common stockholders, Underlying (non-GAAP)L$644 $563 $520 $81 14 %$124 24 %
16
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$/bps%$/bps%
Operating leverage:
Total revenue (GAAP)A$2,177 $1,999 $1,659 $178 8.88 %$518 31.19 %
Less: Noninterest expense (GAAP)C1,241 1,305 1,011 (64)(4.89)230 22.79 
Operating leverage13.77 %8.40 %
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)B$2,177 $2,030 $1,659 $147 7.20 %$518 31.19 %
Less: Noninterest expense, Underlying (non-GAAP)D1,195 1,180 988 15 1.19 207 20.96 
Operating leverage, Underlying (non-GAAP)6.01 %10.23 %
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio C/A57.02 %65.27 %60.92 %(825) bps(390) bps
Efficiency ratio, Underlying (non-GAAP)D/B54.90 58.16 59.55 (326) bps(465) bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rateG/E21.80 %23.77 %22.35 %(197) bps(55) bps
Effective income tax rate, Underlying (non-GAAP)H/F22.00 23.69 22.45 (169) bps(45) bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)M$22,246 $22,383 $21,326 ($137)(1 %)$920 4 %
Return on average common equityK/M10.91 %5.95 %9.39 %496  bps152  bps
Return on average common equity, Underlying (non-GAAP)L/M11.52 10.06 9.70 146  bps182  bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)M$22,246 $22,383 $21,326 ($137)(1 %)$920 4 %
Less: Average goodwill (GAAP)8,131 8,015 7,055 116 1 1,076 15 
Less: Average other intangibles (GAAP)228 213 52 15 7 176 NM
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)424 416 383 8 2 41 11 
Average tangible common equityN$14,311 $14,571 $14,602 ($260)(2 %)($291)(2 %)
Return on average tangible common equity K/N16.96 %9.13 %13.71 %783  bps325  bps
Return on average tangible common equity, Underlying (non-GAAP)L/N17.91 15.45 14.17 246  bps374  bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)O$225,473 $220,967 $186,108 $4,506 2 %$39,365 21 %
Return on average total assetsI/O1.12 %0.66 %1.13 %46  bps(1) bps
Return on average total assets, Underlying (non-GAAP)J/O1.18 1.08 1.16 10  bps2  bps
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)P$225,473 $220,967 $186,108 $4,5062 %$39,36521 %
Less: Average goodwill (GAAP)8,131 8,015 7,055 116 1 1,076 15 
Less: Average other intangibles (GAAP)228 213 52 15 7 176 NM
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)424 416 383 8 2 41 11 
Average tangible assetsQ$217,538 $213,155 $179,384 $4,383 2 %$38,154 21 %
Return on average total tangible assets I/Q1.16 %0.69 %1.17 %47  bps(1) bps
Return on average total tangible assets, Underlying (non-GAAP)J/Q1.22 1.12 1.21 10  bps1  bps
17
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$/bps%$/bps%
Tangible book value per common share:
Common shares - at period-end (GAAP)R495,843,793 495,650,259 426,199,576 193,534 — %69,644,217 16 %
Common stockholders' equity (GAAP)$21,132 $22,314 $21,409 ($1,182)(5)($277)(1)
Less: Goodwill (GAAP)8,160 8,081 7,065 79 1 1,095 15 
Less: Other intangible assets (GAAP)199 211 51 (12)(6)148 NM
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP)424 422 384 2 — 40 10 
Tangible common equityS$13,197 $14,444 $14,677 ($1,247)(9 %)($1,480)(10 %)
Tangible book value per common shareS/R$26.62 $29.14 $34.44 ($2.52)(9 %)($7.82)(23 %)
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)T495,651,083 491,497,026 426,086,717 4,154,057 1 %69,564,366 16 %
Average common shares outstanding - diluted (GAAP)U497,477,501 493,296,114 427,840,964 4,181,387 1 69,636,537 16 
Net income per average common share - basic (GAAP)K/T$1.23 $0.68 $1.18 $0.55 81 $0.05 4 
Net income per average common share - diluted (GAAP)K/U1.23 0.67 1.18 0.56 84 0.05 4 
Net income per average common share - basic, Underlying (non-GAAP)L/T1.30 1.14 1.22 0.16 14 0.08 7 
Net income per average common share - diluted, Underlying (non-GAAP)L/U1.30 1.14 1.22 0.16 14 0.08 7 


18
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$/bps%$/bps%
Other income, Underlying:
Other income (GAAP)$34 ($12)$26 $46 NM$8 31%
Less: Notable items— (31)— 31 100 — — 
Other income, Underlying (non-GAAP)$34 $19 $26 $15 79 $8 31 %
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)$639 $683 $509 ($44)(6 %)$130 26 %
Less: Notable items17 72 (13)(55)(76)30 231 
Salaries and employee benefits, Underlying (non-GAAP)$622 $611 $522 $11 2 %$100 19 %
Equipment and software, Underlying:
Equipment and software (GAAP)
$159 $169 $157 ($10)(6 %)$2 1 %
Less: Notable items— 6 7 (6)(100)(7)(100)
Equipment and software, Underlying (non-GAAP)$159 $163 $150 ($4)(2 %)$9 6 %
Outside services, Underlying:
Outside services (GAAP)$172 $189 $144 ($17)(9 %)$28 19 %
Less: Notable items20 41 12 (21)(51)8 67
Outside services, Underlying (non-GAAP)$152 $148 $132 $4 3 %$20 15 %
Occupancy, Underlying:
Occupancy (GAAP)$106 $111 $77 ($5)(5 %)$29 38 %
Less: Notable items2 1 1 1 100 1 100 
Occupancy, Underlying (non-GAAP)$104 $110 $76 ($6)(5 %)$28 37 %
Other operating expense, Underlying:
Other operating expense (GAAP)$165 $153 $124 $12 8 %$41 33 %
Less: Notable items7 5 16 2 40 (9)(56)
Other operating expense, Underlying (non-GAAP)$158 $148 $108 $10 7 %$50 46 %
19
Citizens Financial Group, Inc.
Non-GAAP measures and reconciliations - excluding the impact of HSBC & ISBC Acquisitions and PPP loans
(in millions, except ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$/bps%$/bps%
Average Commercial Loans, excluding HSBC, ISBC, and PPP
Average Commercial Loans (GAAP)A$82,047$79,684$58,681$2,3633%$23,36640%
Less: HSBC & ISBC Acquisition Impact$15,925$16,266$—($341)(2%)$15,925100%
Less: PPP$212$349$2,770($137)(39%)($2,558)(92%)
Average Commercial Loans, excluding HSBC, ISBC, and PPP (non-GAAP)B$65,910$63,069$55,911$2,8415%$9,99918%



Non-GAAP measures and reconciliations - excluding the impact of HSBC, ISBC, and Commercial fee-based acquisitions closed after 2Q21
(in millions, except ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$/bps%$/bps%
Noninterest expense, Underlying excluding HSBC, ISBC, and Commercial fee based acquisition expenses closed after 2Q21:
Noninterest expense (GAAP)A$1,241 $1,305 $1,011 ($64)(5 %)$230 23 %
Less: Notable items46 125 23 (79)(63)23 100
Less: HSBC & ISBC Acquisition Impact130 128 — 2 2130 100 
Less: Commercial fee based acquisition expenses closed after 2Q2137 29 1 8 28 36 NM
Total Noninterest expense, Underlying excluding HSBC, ISBC, and Commercial fee based acquisition expenses closed after 2Q21 (non-GAAP)B$1,028 $1,023 $987 $5 — %$41 4 %

20
Citizens Financial Group, Inc.
Non-GAAP measures and reconciliations - excluding the impact of HSBC & ISBC Acquisitions
(in millions, except ratio data)
QUARTERLY TRENDS
3Q22 Change
3Q222Q223Q212Q223Q21
$/bps%$/bps%
Total Loans, excluding HSBC & ISBC
Total Loans (GAAP)E$156,140 $156,172 123,318 (32)— %32,822 27 
Less: HSBC & ISBC Acquisition Impact21,171 21,700 — (529)(2)21,171 100
Total Loans, excluding HSBC & ISBC (non-GAAP)F$134,969 $134,472 $123,318 $497 — %$11,651 9 %
Total Commercial Loans, excluding HSBC & ISBC
Total Commercial Loans (GAAP)G$81,114 $81,445 $57,955 ($331)— %$23,159 40 %
Less: HSBC & ISBC Acquisition Impact15,749 16,138 — (389)(2)15,749 100 
Total Commercial Loans, excluding HSBC & ISBC (non-GAAP)H$65,365 $65,307 $57,955 $58 — %$7,410 13 %
Total Retail Loans, excluding HSBC & ISBC
Total Retail Loans (GAAP)I$75,026 $74,727 $65,363 $299 — %$9,663 15 %
Less: HSBC & ISBC Acquisition Impact5,422 5,562 — (140)(3)5,422 100 
Total Retail Loans, excluding HSBC & ISBC (non-GAAP)J$69,604 $69,165 $65,363 $439 1 %$4,241 6 %
Total Average Loans, excluding HSBC & ISBC
Average Loans (GAAP)K$156,879 $153,854 $122,641 $3,025 2 %$34,238 28 %
Less: HSBC & ISBC Acquisition Impact21,417 21,836 — (419)(2)21,417 100 
Total Average Loans, excluding HSBC & ISBC (non-GAAP)L$135,462 $132,018 $122,641 $3,444 3 %$12,821 10 %
Average Commercial Loans, excluding HSBC & ISBC
Average Commercial Loans (GAAP)M$82,047 $79,684 $58,681 $2,363 3 %$23,366 40 %
Less: HSBC & ISBC Acquisition Impact15,925 16,266 — (341)(2)15,925 100 
Average Commercial Loans, excluding HSBC & ISBC (non-GAAP)N$66,122 $63,418 $58,681 $2,704 4 %$7,441 13 %
Average Retail Loans, excluding HSBC & ISBC
Average Retail Loans (GAAP)O$74,832 $74,170 $63,960 $662 1 %$10,872 17 %
Less: HSBC & ISBC Acquisition Impact5,492 5,569 — (77)(1)5,492 100 
Average Retail Loans, excluding HSBC & ISBC (non-GAAP)P$69,340 $68,601 $63,960 $739 1 %$5,380 8 %
21
Citizens Financial Group, Inc.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends as well as the potential effects of the COVID-19 disruption and Russia’s invasion of Ukraine on our business, operations, financial performance and prospects, are forward-looking statements. Also, 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 and political conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of nonaccrual assets, charge-offs and provision expense;
•The rate of growth in the economy and employment levels, as well as general business and economic conditions, and changes in the competitive environment;
•Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including through the integration of Investors and the HSBC branches;
•The COVID-19 disruption and its effects on the economic and business environments in which we operate;
•The impact of Russia’s invasion of Ukraine and the imposition of sanctions on Russia and other actions in response, including on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks;
•Our ability to meet heightened supervisory requirements and expectations;
•Liabilities and business restrictions resulting from litigation and regulatory investigations;
•Our capital and liquidity requirements under regulatory capital standards and our ability to generate capital internally or raise capital on favorable terms;
•The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
•Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;
•The effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
•Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses;
•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;
•Greater than expected costs or other difficulties related to the integration of our business and that of Investors and the relevant HSBC branches;
•The inability to retain existing Investors or HSBC clients and employees following the closing of the Investors and HSBC branch acquisitions; 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, risk-weighted assets, capital impacts of strategic initiatives, market conditions and regulatory and accounting 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. Further, statements about the effects of the COVID-19 disruption and Russia’s invasion of Ukraine on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to
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Citizens Financial Group, Inc.
the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic and Russia’s invasion of Ukraine, actions taken by governmental authorities in response to the pandemic and Russia’s invasion of Ukraine, and the direct and indirect impact of the pandemic and Russia’s invasion of Ukraine on our customers, third parties and us.

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 II, Item 1A of our Quarterly Report on Form 10-Q for the period ended March 31, 2022 and Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed with the Securities and Exchange Commission.
Note: Per share amounts and ratios presented in this document are calculated using whole dollars.
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