Citizens Financial : 3Q20 FINANCIAL SUPPLEMENT

Financial Supplement

Third Quarter 2020

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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:
Nonaccrual loans and leases	14
Loans and Leases 90 Days or More Past Due and Accruing	15
Charge-offs, Recoveries and Related Ratios	16
Summary of Changes in the Components of the Allowance for Credit Losses	18
Capital and Ratios	19
Non-GAAP Financial Measures and Reconciliations	20

The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The Company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward- looking statements language contained in the Company's reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC's website (www.sec.gov) or on the Company's website (www.citizensbank.com). The Company's future financial performance is subject to the risks and uncertainties described in its SEC filings.

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CONSOLIDATED FINANCIAL HIGHLIGHTS

(in millions, except share, per-share and ratio data)

										QUARTERLY TRENDS									FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q20 Change								2020 Change
				3Q20		2Q20		1Q20		4Q19		3Q19	2Q20				3Q19			2020	2019		2019
															$/bps	%		$/bps	%						$/bps	%
	SELECTED OPERATING DATA
	Total revenue	$1,791	$1,750	$1,657	$1,637	$1,638			$41	2%	$153	9%	$5,198	$4,854		$344			7%
	Noninterest expense	988	979	1,012	986	973			9	1	15	2	2,979	2,861		118			4
	Profit before provision for credit													32
	losses	803	771	645	651	665			4	138	21	2,219	1,993		226			11
	Provision for credit losses	428	464	600	110	101			(36)	(8)	327		NM	1,492	283		1,209			NM
	NET INCOME	314	253	34	450	449			61	24	(135)	(30)	601	1,341		(740)			(55)
	Net income, Underlying1	338	263	59	454	453			75	29	(115)	(25)	660	1,354		(694)			(51)
	Net income available to common													64
	stockholders	289	225	12	427	432			28	(143)	(33)	526	1,291		(765)			(59)
	Net income available to common
	stockholders, Underlying	1	313	235	37	431	436			78	33	(123)	(28)	585	1,304		(719)			(55)
	PER COMMON SHARE DATA
	Basic earnings	$0.68	$0.53	$0.03	$0.98	$0.97			$0.15	28%	($0.29)	(30%)	$1.23	$2.84		($1.61)			(57%)
	Diluted earnings	0.68	0.53	0.03	0.98	0.97			0.15	28	(0.29)	(30)	1.23	2.83		(1.60)			(57)
	Basic earnings, Underlying1	0.73	0.55	0.09	0.99	0.98			0.18	33	(0.25)	(26)	1.37	2.87		(1.50)			(52)
	Diluted earnings, Underlying1	0.73	0.55	0.09	0.99	0.98			0.18	33	(0.25)	(26)	1.37	2.86		(1.49)			(52)
	Cash dividends declared and paid per
	common share	0.39	0.39	0.39	0.36	0.36			-		-	0.03	8	1.17	1.00		0.17			17
	Book value per common share	48.01	47.92	47.78	47.63	46.67			0.09		-	1.34	3	48.01	46.67		1.34			3
	Tangible book value per common													0.11
	share	32.24	32.13	31.97	32.08	31.48				-	0.76	2	32.24	31.48		0.76			2
	Dividend payout ratio	58%	74%	1,398%	37%	37%			(1,617) bps				2,051 bps			95%	35%		5,970 bps
	Dividend payout ratio, Underlying1	53	71	451	36	37			(1,742) bps				1,659 bps			85	35		5,062 bps
	COMMON SHARES OUTSTANDING
	Average: Basic	426,846,096	426,613,053	427,718,421	434,684,606	445,703,987			233,043		-%	(18,857,891)	(4%)	427,058,412	454,802,186		(27,743,774)			(6%)
	Diluted	427,992,349	427,566,920	429,388,855	436,500,829	447,134,595			425,429		-	(19,142,246)	(4)	428,142,358	456,218,755		(28,076,397)			(6)
	Common shares at period-end	427,073,084	426,824,594	426,586,533	433,121,083	443,913,525			248,490		-	(16,840,441)	(4)	427,073,084	443,913,525		(16,840,441)			(4)

1These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations."

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CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data)

							QUARTERLY TRENDS									FOR THE NINE MONTHS ENDED SEPTEMBER 30,
													3Q20 Change							2020 Change
	3Q20		2Q20	1Q20		4Q19		3Q19	2Q20			3Q19		2020	2019		2019
											$/bps	%		$/bps	%						$/bps	%
FINANCIAL RATIOS
Net interest margin	2.82%	2.87%		3.09%	3.04%	3.10%		(5) bps			(28) bps		2.93%	3.18%		(25) bps
Net interest margin, FTE1	2.83	2.88		3.10	3.06	3.12		(5) bps			(29) bps		2.93	3.19		(26) bps
Return on average common equity	5.60	4.44		0.24	8.30	8.35		116 bps			(275) bps		3.45	8.50		(505) bps
Return on average common equity, Underlying2	6.05	4.63		0.74	8.36	8.45		142 bps			(240) bps		3.83	8.59		(476) bps
Return on average tangible common equity	8.33	6.62		0.36	12.39	12.44		171 bps			(411) bps		5.15	12.72		(757) bps
Return on average tangible common equity,
Underlying2	9.00	6.90		1.10	12.49	12.58		210 bps			(358) bps		5.71	12.86		(715) bps
Return on average total assets	0.70	0.57		0.08	1.08	1.10		13 bps			(40) bps		0.46	1.11		(65) bps
Return on average total assets, Underlying2	0.76	0.59		0.14	1.09	1.11		17 bps			(35) bps		0.50	1.12		(62) bps
Return on average total tangible assets	0.73	0.59		0.09	1.13	1.15		14 bps			(42) bps		0.48	1.16		(68) bps
Return on average total tangible assets, Underlying2	0.79	0.61		0.15	1.14	1.16		18 bps			(37) bps		0.52	1.17		(65) bps
Effective income tax rate	16.10	17.69		24.13	16.76	20.46		(159) bps			(436) bps		17.27	21.58		(431) bps
Effective income tax rate, Underlying2	16.79	19.36		24.52	21.52	22.29		(257) bps			(550) bps		18.57	22.20		(363) bps
Efficiency ratio	55.18	55.91		61.10	60.28	59.40		(73) bps			(422) bps		57.31	58.94		(163) bps
Efficiency ratio, Underlying2	53.44	54.85		59.08	58.02	58.22		(141) bps			(478) bps		55.72	58.30		(258) bps
Noninterest income as a % of total revenue	37%	34%		30%	30%	30%		300 bps			700 bps		33%	29%		400 bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio	9.8%	9.6%		9.4%	10.0%	10.3%
Tier 1 capital ratio	11.2	10.9		10.5	11.1	11.1
Total capital ratio	13.3	13.1		12.5	13.0	13.0
Tier 1 leverage ratio	9.5	9.3		9.6	10.0	9.9
Tangible common equity ratio	8.0	7.9		8.0	8.7	8.9
SELECTED BALANCE SHEET DATA
Loans-to-deposits ratio (period-end balances)	86.81%	87.53%		95.54%	95.03%	94.52%		(72) bps			(771) bps		86.81%	94.52%		(771) bps
Loans-to-deposits ratio (average balances)	88.36	90.93		95.60	94.63	94.62		(257) bps			(626) bps		91.47	95.96		(449) bps
Full-time equivalent colleagues	17,930	18,312		17,863	17,997	18,116		(382)		(2)	(186)		(1)	17,930	18,116		(186)			(1)

1. Net interest income and net interest margin is presented on a fully taxable-equivalent ("FTE") basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.
2. These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations."

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