Citizens Financial Group, Inc. · NYSE:CFG

Citizens Financial — FY2020 Earnings Presentation

26 slides from Citizens Financial's earnings presentation, Jan 20, 2021

1. Slide 1: Financial Supplement Fourth Quarter and Full Year 2020

   Exhibit 99.3 Financial Supplement Fourth Quarter and Full Year 2020 1Exhibit 99.3 Financial Supplement Fourth Quarter and Full Year 2020 1

2. Slide 2: Table of Contents

   Table of Contents Page Consolidated Financial Highlights 3 Consolidated Statements of Operations (unaudited) 5 Consolidated Balance Sheets (unaudited) 6 Loans and Deposits 7 Average Balance Sheets 8 Average Annualized Yields and Rates 9 Segment Financial Highlights 10 Credit-Related Information: Non

3. Slide 3: Consolidated Financial Highlights

   CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % SELECTED OPERATING DATA Total revenue $1,707 $1,791 $1,750 $1,657 $1,637 ($84) (5%) $70

4. Slide 4: Consolidated Financial Highlights, Continued

   CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % FINANCIAL RATIOS Net interest margin 2.75 % 2.82 % 2.87 % 3.09 % 3.04 % (7) bps (29

5. Slide 5: Consolidated Statements of Operations (unaudited)

   CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $ % INTEREST INCOME Interest and fees on loans and leases $1,105 $1,120 $1,192 $1,302 $1,312 ($15) (1%) ($207) (16%) $4,719 $5,

6. Slide 6: Consolidated Balance Sheets (unaudited)

   CONSOLIDATED BALANCE SHEETS (unaudited) (in millions) PERIOD-END BALANCES AS OF DECEMBER 31, 2020 CHANGE Dec 31, 2020 Sept 30, 2020 June 30, 2020 Mar 31, 2020 Dec 31, 2019 September 30, 2020 December 31, 2019 $ % $ % ASSETS Cash and due from banks $1,037 $904 $1,088 $1,155 $1,175 $133 15% ($138) (12

7. Slide 7: Loans and Deposits

   LOANS AND DEPOSITS (in millions) PERIOD-END BALANCES AS OF DECEMBER 31, 2020 CHANGE Dec 31, 2020 Sept 30, 2020 June 30, 2020 Mar 31, 2020 Dec 31, 2019 Sept 30, 2020 December 31, 2019 $ % $ % LOANS AND LEASES Commercial and industrial¹ $44,173 $45,185 $48,017 $49,092 $41,479 ($1,012) (2%) $2,694 6% C

8. Slide 8: Average Balance Sheets

   AVERAGE BALANCE SHEETS (in millions) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $ % ASSETS Interest-bearing cash and due from banks and deposits in banks $11,303 $6,250 $5,231 $1,859 $1,970 $5,053 81% $9,333 NM $6,175 $1,544 $4,631 NM

9. Slide 9: Average Annualized Yields and Rates

   AVERAGE ANNUALIZED YIELDS AND RATES (in millions, except rates) QUARTERLY TRENDS FULL YEAR 4Q20 3Q20 2Q20 1Q20 4Q19 2020 2019 Income/ Income/ Income/ Income/ Income/ Income/ Income/ Rate Expense Rate Expense Rate Expense Rate Expense Rate Expense Rate Expense Rate Expense INTEREST-EARNING ASSETS Int

10. Slide 10: Segment Financial Highlights - Consumer Banking

    SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING (in millions, except ratio data) QUARTERLY TRENDS FULL YEAR CONSUMER BANKING 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % Net interest income $859 $845 $814 $793 $796 $14 2% $63 8% $3,311 $3,182 $129

11. Slide 11: Segment Financial Highlights - Consumer Banking, Continued

    SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % MORTGAGE BANKING FEES Production revenue $194 $275 $271 $136 $61 ($81) (29%) $133 2

12. Slide 12: Segment Financial Highlights - Commercial Banking

    SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING (in millions, except ratio data) QUARTERLY TRENDS FULL YEAR COMMERCIAL BANKING 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % Net interest income $438 $421 $419 $365 $363 $17 4% $75 21% $1,643 $1,466

13. Slide 13: Segment Financial Highlights - Other

    SEGMENT FINANCIAL HIGHLIGHTS - OTHER (in millions) QUARTERLY TRENDS FULL YEAR 1 OTHER 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $ % Net interest income ($168) ($129) ($73) $2 ($16) ($39) (30%) ($152) NM ($368) ($34) ($334) NM Noninterest income 21 15 18 15 23

14. Slide 14: Credit-Related Information: Nonaccrual Loans and Leases

    CREDIT-RELATED INFORMATION (in millions, except ratio data) AS OF DECEMBER 31, 2020 CHANGE Dec 31, 2020 Sept 30, 2020 June 30, 2020 Mar 31, 2020 Dec 31, 2019 Sept 30, 2020 December 31, 2019 $/bps % $/bps % 1 NONACCRUAL LOANS AND LEASES Commercial and industrial $280 $435 $366 $305 $240 ($155) (36%)

15. Slide 15: Credit-Related Information: Loans 90 Days or More Past Due

    CREDIT-RELATED INFORMATION, CONTINUED (in millions, except ratio data) AS OF DECEMBER 31, 2020 CHANGE Dec 31, 2020 Sept 30, 2020 June 30, 2020 Mar 31, 2020 Dec 31, 2019 Sept 30, 2020 December 31, 2019 $/bps % $/bps % LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING Commercial and industrial $2

16. Slide 16: Credit-Related Information: Charge-offs and Recoveries

    CREDIT-RELATED INFORMATION, CONTINUED (in millions) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $ % CHARGE-OFFS, RECOVERIES AND RELATED RATIOS GROSS CHARGE-OFFS Commercial and industrial $51 $81 $68 $47 $24 ($30) (37%) $27 113 $247 $87

17. Slide 17: Credit-Related Information: Net Charge-off Rates

    CREDIT-RELATED INFORMATION, CONTINUED (in millions, except rates) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES Commercial and industrial 0.41% 0.68% 0.52% 0.41% 0.16% (27) bps 2

18. Slide 18: Summary of Changes in Allowance for Credit Losses

    CREDIT-RELATED INFORMATION, CONTINUED (in millions) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $ % SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES Allowance for loan and lease losses - beginning $2,542 $2,448 $

19. Slide 19: Capital and Ratios

    CAPITAL AND RATIOS (in millions, except ratio data) AS OF FULL YEAR DECEMBER 31, 2020 CHANGE 2020 Change Dec 31, Sept 30, June 30, Mar 31, Dec 31, 2020 2020 2020 2020 2019 Sept 30, 2020 December 31, 2019 2020 2019 2019 $ % $ % $ % CAPITAL RATIOS AND COMPONENTS (PRELIMINARY) CET1 capital $14,607 $14,

20. Slide 20: Non-GAAP Financial Measures and Reconciliations

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (in millions, except share, per-share and ratio data) Non-GAAP Financial Measures This document contains non-GAAP financial measures denoted as Underlying results. Underlying results for any given reporting period exclude certain items that may occur i

21. Slide 21: Non-GAAP Financial Measures and Reconciliations, Continued

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $ % Total revenue, Underlying: Total revenue (GAAP) A $1,707 $1,791 $1,750 $1,

22. Slide 22: Non-GAAP Financial Measures and Reconciliations, Continued

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % Operating leverage: Total revenue (GAAP) A $1,707 $1,791 $1,75

23. Slide 23: Non-GAAP Financial Measures and Reconciliations, Continued

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $/bps % $/bps % $/bps % Return on average total tangible assets and return on average

24. Slide 24: Non-GAAP Financial Measures and Reconciliations, Continued

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FULL YEAR 4Q20 Change 2020 Change 4Q20 3Q20 2Q20 1Q20 4Q19 3Q20 4Q19 2020 2019 2019 $ % $ % $/bps % Salaries and employee benefits, Underlying: Salaries and employee bene

25. Slide 25: Non-GAAP Financial Measures and Reconciliations - Segments

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (in millions, except ratio data) FOURTH QUARTER 2020 THIRD QUARTER 2020 SECOND QUARTER 2020 Consumer Commercial Consumer Commercial Consumer Commercial Banking Banking Other Consolidated Banking Banking Other Consolidated Banking Banking Oth

26. Slide 26: Non-GAAP Financial Measures and Reconciliations - Segments (Continued)

    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED) (in millions, except ratio data) FULL YEAR 2020 2019 Consumer Commercial Consumer Commercial Banking Banking Other Consolidated Banking Banking Other Consolidated Net income (loss) available to common stockholders: Net income (lo

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