Citizens Financial Group, Inc. · NYSE:CFG

Citizens Financial — Q2 2019 Earnings Presentation

28 slides from Citizens Financial's earnings presentation, Jul 22, 2019

1. Slide 1: Financial Supplement Second Quarter 2019

   Exhibit 99.1 Financial Supplement Second Quarter 2019 1Exhibit 99.1 Financial Supplement Second Quarter 2019 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 and Annualized Yields 8 Segment Financial Highlights 10 Credit-Related Information: Nonperforming Asset

3. Slide 3: Consolidated Financial Highlights

   CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % SELECTED OPERATING DATA Total revenue $1,628 $1,588 $1,593 $1,5

4. Slide 4: Consolidated Financial Highlights (ratios and headcount)

   CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % FINANCIAL RATIOS 1 Net interest margin 3.20% 3.23% 3.23% 3.

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

   CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in millions) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $ % INTEREST INCOME Interest and fees on loans and leases $1,392 $1,381 $1,347 $1,287 $1,230 $11 1% $16

6. Slide 6: Consolidated Balance Sheets (unaudited)

   CONSOLIDATED BALANCE SHEETS (unaudited) (in millions) AS OF JUNE 30, 2019 CHANGE PERIOD-END BALANCES June 30, 2019 Mar 31, 2019 Dec 31, 2018 Sept 30, 2018 June 30, 2018 Mar 31, 2019 June 30, 2018 $ % $ % ASSETS Cash and due from banks $996 $923 $1,081 $976 $997 $73 8% ($1) —% Interest-bearing cash a

7. Slide 7: Loans and Deposits

   LOANS AND DEPOSITS (in millions) PERIOD-END BALANCES AS OF JUNE 30, 2019 CHANGE June 30, 2019 Mar 31, 2019 Dec 31, 2018 Sept 30, 2018 June 30, 2018 Mar 31, 2019 June 30, 2018 $ % $ % LOANS AND LEASES Commercial $41,156 $41,497 $40,857 $39,770 $39,278 ($341) (1%) $1,878 5% Commercial real estate 13,1

8. Slide 8: Average Balance Sheets and Annualized Yields

   AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (in millions) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change AVERAGE BALANCES 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $ % ASSETS Interest-bearing cash and due from banks and deposits in banks $1,229 $1,497 $1,

9. Slide 9: Average Balance Sheets and Annualized Yields (yields and rates)

   AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED (in millions, except rates) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, AVERAGE ANNUALIZED YIELDS AND RATES 2Q19 1Q19 4Q18 3Q18 2Q18 2019 2018 Income/ Income/ Income/ Income/ Income/ Income/ Income/ Rate Expense Rate Expense Rate Expense

10. Slide 10: Segment Financial Highlights - Consolidating

    SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING (in millions, except ratio data) SECOND QUARTER 2019 FIRST QUARTER 2019 CHANGE 2Q19 from 1Q19 Consumer Commercial Consumer Commercial 1 1 Banking Banking Other Consolidated Banking Banking Other Consolidated $/bps % Net interest income $799 $371 ($4) $1,1

11. Slide 11: Segment Financial Highlights - Consolidating, Continued

    SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED (in millions, except ratio data) SECOND QUARTER 2019 SECOND QUARTER 2018 CHANGE 2Q19 from 2Q18 Consumer Commercial Consumer Commercial 1 1 Banking Banking Other Consolidated Banking Banking Other Consolidated $/bps % Net interest income $799 $3

12. Slide 12: Segment Financial Highlights - Consolidating, Continued (six months)

    SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED (in millions, except ratio data) FOR THE SIX MONTHS ENDED JUNE 30, 2019 FOR THE SIX MONTHS ENDED JUNE 30, 2018 CHANGE 2019 from 2018 Consumer Commercial Consumer Commercial 1 1 Banking Banking Other Consolidated Banking Banking Other Consolidat

13. Slide 13: Segment Financial Highlights - Consumer Banking

    SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING (in millions, except ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, CONSUMER BANKING 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % Net interest income $799 $788 $796 $776 $759 $11 1% $

14. Slide 14: Segment Financial Highlights - Consumer Banking, Continued

    SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED (in millions, except ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % 1 MORTGAGE BANKING FEES Production revenue $49 $31 $28 $31

15. Slide 15: Segment Financial Highlights - Commercial Banking

    SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING (in millions, except ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, COMMERCIAL BANKING 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % Net interest income $371 $372 $384 $380 $376 ($1)

16. Slide 16: Segment Financial Highlights - Other

    SEGMENT FINANCIAL HIGHLIGHTS - OTHER (in millions) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 1 OTHER 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $ % Net interest income ($4) $— ($8) ($8) ($14) ($4) (100%) $10 71% ($4) ($13) $9 69% Noninterest income 36

17. Slide 17: Credit-Related Information: Nonperforming Assets

    CREDIT-RELATED INFORMATION (in millions, except ratio data) AS OF JUNE 30, 2019 CHANGE June 30, 2019 Mar 31, 2019 Dec 31, 2018 Sept 30, 2018 June 30, 2018 Mar 31, 2019 June 30, 2018 $/bps % $/bps % NONPERFORMING ASSETS Commercial $198 $208 $194 $228 $249 ($10) (5%) ($51) (20%) Commercial real estate

18. Slide 18: Credit-Related Information, Continued: Charge-offs and Recoveries

    CREDIT-RELATED INFORMATION, CONTINUED (in millions) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $ % CHARGE-OFFS, RECOVERIES AND RELATED RATIOS GROSS CHARGE-OFFS Commercial $40 $3 $17 $14 $14 $37 NM $26 186% $43

19. Slide 19: Credit-Related Information: Annualized Net Charge-off Rates

    CREDIT-RELATED INFORMATION, CONTINUED (in millions, except rates) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES Commercial 0.27% 0.01% 0.11% 0.13% 0.12% 2

20. Slide 20: Summary of Changes in Allowance for Credit Losses

    CREDIT-RELATED INFORMATION, CONTINUED (in millions) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $ % SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES Allowance for loan and lease losses - b

21. Slide 21: Capital and Ratios

    CAPITAL AND RATIOS (in millions, except ratio data) AS OF FOR THE SIX MONTHS ENDED JUNE 30, JUNE 30, 2019 CHANGE 2019 Change June 30, Mar 31, Dec 31, Sept 30, June 30, 2019 2019 2018 2018 2018 Mar 31, 2019 June 30, 2018 2019 2018 2018 $ % $ % $ % CAPITAL RATIOS AND COMPONENTS (PRELIMINARY) CET1 capi

22. Slide 22: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (in millions, except share, per-share and ratio data) Key Performance Metrics: Our Management uses certain key performance metrics (KPMs) to gauge our progress against strategic and operational goals, as well as to compare our

23. Slide 23: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $ % Noninterest income, Under

24. Slide 24: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % Operating lev

25. Slide 25: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $/bps % $/bps % $/bps % Tangible book

26. Slide 26: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (in millions, except share, per-share and ratio data) QUARTERLY TRENDS FOR THE SIX MONTHS ENDED JUNE 30, 2Q19 Change 2019 Change 2Q19 1Q19 4Q18 3Q18 2Q18 1Q19 2Q18 2019 2018 2018 $ % $ % $/bps % Mortgage banking fees

27. Slide 27: Non-GAAP Reconciliations - Segments

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (in millions, except ratio data) SECOND QUARTER 2019 FIRST QUARTER 2019 FOURTH QUARTER 2018 Consumer Commercial Consumer Commercial Consumer Commercial Banking Banking Other Consolidated Banking Banking Other Consoli

28. Slide 28: Non-GAAP Reconciliations - Segments (Continued)

    KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED) (in millions, except ratio data) FOR THE SIX MONTHS ENDED JUNE 30, 2019 2018 Consumer Commercial Consumer Commercial Banking Banking Other Consolidated Banking Banking Other Consolidated Net income (loss)

Citizens Financial Group — Q2 2019 Earnings Presentation on 6ix