4Q17 and FY2017 Financial Results January 19, 2018 Forward-looking - - PowerPoint PPT Presentation

4Q17 and FY2017 Financial Results

January 19, 2018

Forward-looking statements and use of key performance metrics and non-GAAP Financial Measures

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This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. 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,” “ proj ects,” “ outlook” 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 conditions that adversely affect the general economy, housing prices, the j ob market, consumer confidence and spending habits which may affect, among other things, the level of nonperforming

assets, charge-offs and provision expense;

• the rate of growth in the economy and employment levels, as well as general business and economic conditions;
• ur ability to implement our strategic plan, including the cost savings and efficiency components, and achieve our indicative performance targets;
• ur ability to remedy regulatory deficiencies and meet supervisory requirements and expectations;
• liabilities and business restrictions resulting from litigation and regulatory investigations;
• ur capital and liquidity requirements (including under regulatory capital standards, such as the U.S. Basel III capital rules) 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, including the Dodd-Frank Act and other legislation and

regulation relating to bank products and services;

• 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; and
• management’ s ability to identify and manage these and other risks.

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or share repurchases will depend on our financial condition, earnings, cash needs, regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our board of directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends. More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “ Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the United States Securities and Exchange Commission on February 24, 2017. Key Performance Metrics and Non-GAAP Financial Measures and Reconciliations Key Performance Metrics: Our management team uses key performance metrics (KPMs) t o gauge our performance and progress over time in achieving our strategic and operational goals and also in comparing our performance against our peers. We have established the following financial targets, in addition to others, as KPMs, which are utilized by our management in measuring our progress against financial goals and as a tool in helping assess performance for compensation purposes. These KPMs can largely be found in our periodic reports which are filed with the Securities and Exchange Commission, and are supplemented from time to time with additional information in connection with our quarterly earnings releases. Our key performance metrics include: Return on average tangible common equity (ROTCE); Return on average total tangible assets (ROTA); Efficiency ratio; Operating leverage; and Common equity tier 1 capital ratio (U.S. Basel III Standardized fully phased-in basis). In establishing goals for these KPMs, we determined that they would be measured on a management-reporting basis, or an operating basis, which we refer to externally as “ Adj usted” or “ Underlying” results. We believe that these “ Adj usted” or “ Underlying” results provide the best representation of our financial progress toward these goals as they exclude items that our management does not consider indicative of our ongoing financial performance. KPMs that contain “ Adj usted” or “ Underlying” results are considered non-GAAP financial measures. Non-GAAP Financial Measures: This document contains non-GAAP financial measures. The appendix presents reconciliations of our non-GAAP measures. These reconciliations exclude “ Adj usted” or “ Underlying” items, which are included, where applicable, in the financial results presented in accordance with GAAP. “ Adj usted” or “ Underlying” results, which are non-GAAP measures, exclude certain items, as applicable, that may occur in a reporting period which management does not consider indicative of on-going financial performance. The non-GAAP measures presented in the appendix include reconciliations to the most directly comparable GAAP measures and are: “ noninterest income” , “ total revenue” , “ noninterest expense” , “ pre-provision profit” , “ total credit-related costs” , “ income before income tax expense” , “ income tax expense” , “ effective income tax rate” , “ net income” , “ net income available to common stockholders” , “ other income” , “ salaries and employee benefits” , “ outside services” , “ amortization of software expense” , “ other operating expense” , “ net income per average common share” , “ return on average common equity” and “ return on average total assets” . We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating

• decisions. In addition, we believe our “ Adj usted” or “ Underlying” results in any period do not reflect our operational performance in that period and, accordingly, it is useful to consider our GAAP results and
• ur “ Adj usted” or “ Underlying” results together. We believe this presentation also increases comparability of period-to-period results.

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 other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under GAAP.

Table of contents

page 4Q17 highlight s 4 4Q17 Underlying financial summary 7 Underlying FY2017 performance vs. guidance 23 FY2018 out look 24 1Q18 out look 26 New medium-t erm financial t arget s 29 Appendix 31

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 Provision expense of $83 million; increased $11 million from relatively low 3Q17 levels  Overall credit quality continues to be excellent; NPLs decreased 7% QoQ to 79 bps of loans ─ NPL coverage ratio of 142%

• vs. 131%

in 3Q17 and 118% in 4Q16  Allowance to loans and leases of 1.12% stable vs. 1.11% in 3Q17 and 1.15% in 4Q16  4% YoY average loan growth, (2) with strength in commercial and retail ─ Average loan yields of 4.01% expanded 5 bps QoQ and 43 bps YoY reflecting the benefit of higher rates and balance sheet

• ptimization initiatives

 Consumer Banking initiatives – S

• lid deposit and loan growth; strong progress in data analytics and digital strategies as well as in

enhancing customer j ourneys; 2017 fee-based investment sales up 70% YoY; and conforming mortgage mix improved to 45% in 4Q17  Commercial Banking initiatives – S trong full year loan growth of 6% ; full year fee income growth led by record Capital Markets fees with continued momentum in global markets and treasury solutions

4Q17 highlights

Improving profitability and returns Strong capital, liquidity and funding Excellent credit quality Continued progress on strategic growth, efficiency and balance sheet

• ptimization

initiatives

 4Q17 average deposits increased $4.6 billion, or 4%

• vs. 4Q16; year-end loan-to-deposit ratio of ~97%

 Robust capital levels with a common equity tier 1 ratio of 11.1% ; (3) TBV per share of $27.48, up 7% from 4Q16  $335 million of 4Q17 common share repurchases at a weighted-average price of $38.18 per share; announced quarterly dividend increase of 22% to $0.22 per share beginning in 1Q18  Net income of $666 million; diluted EPS

• f $1.35, including a net $317 million after-tax, or $0.64 per share, benefit from

notable items ─ Underlying net income(1) of $349 million and diluted EPS

• f $0.71 up 24%

and 29% YoY, respectively ─ ROTCE of 19.9% ; Underlying ROTCE(1) of 10.4% compared with 8.4% in 4Q16 and 10.1% in 3Q17  Revenue of $1.5 billion; Underlying revenue(1) of $1.5 billion up 2% QoQ and 8% YoY ─ NII up 2% QoQ and 10% YoY with NIM of 3.08% up 3 bps QoQ and 18 bps YoY ─ Noninterest income up 6% QoQ and 7% YoY; on an Underlying basis(1) up 2% QoQ and 3% YoY  Positive operating leverage of 3% YoY; and 6.4% YoY on an Underlying basis(1); Efficiency ratio of 60.5% ; Underlying efficiency ratio(1)

• f 58.5%

improved 91 bps QoQ and ~3.7 percentage points YoY

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable

• items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26

million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less

• ther notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are
• n the same basis, when applicable.

2) Throughout this presentation references to consolidated and/ or commercial loans and loan growth include leases. Loans held for sale also referred to as LHFS . 3) Current period regulatory capital ratios are preliminary. Basel III ratio definitions impacting risk-weighted assets and qualifying Basel III capital fully phase in as of January 1, 2018.

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Notable Items(1)

$s in millions

S everal items occurring in 4Q17 have been excluded from reported result s t o bet ter reflect underlying

• perat ing result s. (1)

4Q17 reported result s include a gain related t o t he adj ust ment of our deferred tax liabilit y (“ DTL” ) resulting from t he Tax Legislation passed in December 2017. We elected t o invest some of t his gain to benefit our colleagues and t he communities we serve, through a special $1,000 bonus t o eligible colleagues and a $10 million contribution t o t he Cit izens Foundat ion.

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable

• items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26

million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less

• ther notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are
• n the same basis, when applicable.

2) December 2017 Tax Legislation benefit amounts are estimated as of December 31, 2017 and may be subj ect to adj ustment during 2018.

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4Q17 Notable items(1) ($s in millions, except per share data) Pre-tax After-tax EPS impact

Gain on sale of TDR loans 17 $ 10 $ 0.02 $ Severance - Salaries & benefits (5) (3) (0.01) Consulting - Outside Services (12) (7) (0.01) Other - Other expense (1) (1) (0.00) Net 4Q17 notable items(1) (1) $ (1) $ (0.00) $

4Q17 Tax Legislation related notable items(1,2) ($s in millions, except per share data) Pre-tax After-tax EPS impact

Tax Legislation-related — $ 331 $ 0.67 $ Colleague bonus - Salaries & benefits (12) $ (7) (0.02) Foundation grant - Other expense (10) (6) (0.01) Net 4Q17 Tax Legislation related notable items(1) (22) $ 318 $ 0.64 $

4Q17 reported result s also include a relatively small gain on the sale of a Trouble Debt Rest ructuring port folio (“ TDR Transact ion II” ) which was offset by ot her not able it ems associat ed wit h our TOP IV efficiency init iat ives.

4Q17 GAAP financial summary

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non- GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale

• ffset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items.

“ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable. 2) Includes held for sale. Loan-to-deposit ratio is period end. 3) Full-time equivalent employees.

Linked quarter:

 Net income available to common stockholders up 95% and EPS up 99% driven by a net $317 million after-tax, or $0.64 EPS , benefit from 4Q17 notable items  NII up $18 million, or 2% , reflecting 1% average loan growth and a 3 bp improvement in NIM  Noninterest income increased $23 million reflecting 4Q17 notable items ─ Up $6 million on an Underlying basis, (1) reflecting strength in foreign exchange and IRP, trust and investment services fees and other income  Noninterest expense increased $40 million as a result of 4Q17 notable items ─ Flat on an Underlying basis(1) largely on lower other expense and salaries and employee benefits, offset by an increase in

• utside services

 Provision for credit losses increased $11 million from relatively low third quarter levels

Prior-year quarter:

 Net income available to common stockholders up 136% and diluted EPS up 145% reflecting 4Q17 notable items  NII up $94 million, or 10% , driven by 4% average loan growth and an 18 bp improvement in NIM  Noninterest income up $27 million, largely reflecting the impact

• f 4Q17 notable items

─ Up $10 million on an Underlying basis(1) on strength in trust and investment services fees, card fees and capital markets fees partially offset by lower mortgage banking fees and other income  Noninterest expense up $51 million, largely reflecting 4Q17 notable items ─ Up 1%

• n an Underlying basis(1) given higher salaries and

benefits and outside services expense, and lower other expense due to lower fraud, legal and regulatory costs  Provision for credit losses decreased $19 million

Highlights

 2% ↓91 bps

LQ excluding not able it ems(1) —

 3%  2%  4%  30 bps

4Q17 change from $s in millions 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Net interest income 1,080 $ 1,062 $ 986 $ 18 $ 2% 94 $ 10% Noninterest income 404 381 377 23 6 27 7 Total revenue 1,484 1,443 1,363 41 3 121 9 Noninterest expense 898 858 847 40 5 51 6 Pre-provision profit 586 585 516 1 — 70 14 Provision for credit losses 83 72 102 11 15 (19) (19) Income before income tax expense 503 513 414 (10) (2) 89 21 Income tax expense (benefit) (163) 165 132 (328) (199) (295) (223) Net income 666 $ 348 $ 282 $ 318 $ 91 384 $ 136 Preferred dividends — 7 — (7) (100) — NM Net income available to common stockholders 666 $ 341 $ 282 $ 325 $ 95% 384 $ 136% $s in billions Average interest-earning assets 138 $ 137 $ 135 $ 1 $ 1% 4 $ 3% Average deposits 114 $ 113 $ 109 $ 1 $ 1% 5 $ 4% Key performance metrics(1) Net interest margin 3.08 % 3.05 % 2.90 % 3 bps 18 bps Loan-to-deposit ratio(2) 96.7 98.4 98.6 (162) (188) ROACE 13.5 6.9 5.7 659 776 ROTCE 19.9 10.1 8.4 979 NM ROA 1.7 0.9 0.8 83 99 ROTA 1.8 1.0 0.8 87 104 Efficiency ratio 60.5 % 59.4 % 62.2 % 111 bps (166) bps FTEs(3) 17,594 17,696 17,639 (102) (1)% (45) — % Per common share Diluted earnings 1.35 $ 0.68 $ 0.55 $ 0.67 $ 99% 0.80 $ 145% Tangible book value 27.48 $ 27.05 $ 25.69 $ 0.43 $ 2% 1.79 $ 7% Average diluted shares

• utstanding (in millions)

493.8 502.2 513.9 (8.4) (2)% (20.1) (4)% 6

Linked quarter:

 Underlying net income available t o common st ockholders(1) of $349 million increased $8 million, or 2% ; dilut ed EPS

• f $0.71

increased 4%

(1)

 NII up $18 million, or 2% , reflect ing 1% average loan growt h and a 3 bp improvement in NIM given higher loan yields and rat es  Underlying nonint erest income(1) increased $6 million, or 2% ─ Reflect s st rengt h in foreign exchange and IRP, t rust and invest ment services fees and ot her income  Underlying nonint erest expense(1) was st able ─ Driven by lower ot her expense and salaries and employee benefit s offset by an increase in out side services, which includes cost s associat ed wit h our st rat egic init iat ives ─ Efficiency rat io improved 91 bps; posit ive operat ing leverage

• f 1.6%

(1)

Prior-year quarter:

 Net income available t o common st ockholders increased $67 million,

• r 24%

; dilut ed EPS increased 29%

(1)

 NII up $94 million, or 10% , reflect ing 4% average loan growt h and an 18 bp increase in NIM given higher loan yields and rat es  Underlying nonint erest income(1) increased $10 million, or 3% ─ Driven by st rengt h in t rust and invest ment services fees, card fees and capit al market s fees part ially offset by lower mort gage banking fees and ot her income  Underlying nonint erest expense(1) up $11 million, or 1% ─ Reflect s higher salaries and benefit s expense and out side services expense, driven by t he impact of st rat egic growt h init iat ives, and lower ot her expense due t o lower fraud, legal and regulat ory cost s ─ Efficiency rat io improved 368 bps; ~6.4% posit ive

• perat ing leverage(1)

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable.

Highlights

4Q17 Underlying financial summary(1)

4Q17(1) change from $s in millions 4Q17 Underlying(1) 3Q17 Reported 4Q16 Reported 3Q17 Reported 4Q16 Reported

Net interest income 1,080 $ 1,062 $ 986 $ 2 % 10 % Noninterest income 387 381 377 2 3 Total revenue 1,467 1,443 1,363 2 8 Noninterest expense 858 858 847 — 1 Net income available to common stockholders 349 $ 341 $ 282 $ 2 % 24 % Key performance metrics(1) ROTCE(1) 10.4 % 10.1 % 8.4 % 30 bps 200 bps Efficiency ratio(1) 58.5 % 59.4 % 62.2 % (91) bps (368) bps Diluted EPS 0.71 $ 0.68 $ 0.55 $ 4 % 29 % 7

2017 GAAP financial summary

1) Please see import ant informat ion on Key Performance Met rics and Non-GAAP Financial Measures at t he beginning and end of t his present at ion for an explanat ion of our use of t hese met rics and non-GAAP financial measures and t heir reconciliat ion t o GAAP financial measures. 4Q17 aft er-t ax not able it ems excluded from our “ Underlying” result s reflect a $10 million gain on a TDR port folio sale offset by $11 million of ot her not able it ems (“ TDR Transact ion II” ) and a $331 million benefit relat ing t o t he December 2017 Tax Legislat ion, part ially offset by $13 million of ot her not able it ems. “ Underlying” result s, as applicable, also exclude a 1Q17 $23 million benefit relat ed t o t he set t lement of cert ain st at e t ax mat t ers and reclassify 2Q17 result s for t he pre-t ax impact of $26 million of lease asset impairment s t o reflect t heir credit -relat ed impact . 3Q16 aft er-t ax not able it ems excluded from our “ Adj ust ed” result s reflect a $19 million gain on a TDR port folio sale less ot her not able it ems (“ TDR Transact ion” ). Where t here is a reference t o “ Adj ust ed” , “ Underlying” or “ Adj ust ed/ Underlying” result s in a paragraph, all measures t hat follow t hese references are on t he same basis, when applicable. 2) Includes held for sale. Loan-t o-deposit rat io is period end. 3) Full-t ime equivalent employees.

Highlights

 10% ↓ 396 bps YoY excluding notable items(1)  3%  29%  28%  34%  219 bps

$s in millions 2017 2016 2017 change from 2016

$ % Net interest income 4,173 $ 3,758 $ 415 $ 11% Noninterest income 1,534 1,497 37 2 Total revenue 5,707 5,255 452 9 Noninterest expense 3,474 3,352 122 4 Pre-provision profit 2,233 1,903 330 17 Provision for credit losses 321 369 (48) (13) Income before income tax expense 1,912 1,534 378 25 Income tax expense 260 489 (229) (47) Net income 1,652 $ 1,045 $ 607 $ 58 Preferred dividends 14 14 — — Net income available to common stockholders 1,638 $ 1,031 $ 607 $ 59% $s in billions Average interest-earning assets 137 $ 131 $ 7 $ 5% Average deposits 112 $ 105 $ 6 $ 6% Key performance metrics(1) Net interest margin 3.02 % 2.86 % 16 bps Loan-to-deposit ratio(2) 96.7 98.6 (188) ROACE 8.3 5.2 312 ROTCE 12.3 7.7 461 ROA 1.1 0.7 37 ROTA 1.2 0.8 39 Efficiency ratio 60.9 % 63.8 % (293) bps FTEs(3) 17,594 17,639 (45) — % Per common share Diluted earnings 3.25 $ 1.97 $ 1.28 $ 65% Tangible book value 27.48 $ 25.69 $ 1.79 $ 7% Average diluted shares

• utstanding (in millions)

503.7 523.9 (20.2) (4)%

8

FY17 vs FY16:

 Net income available to common stockholders up $607 million, or 59% ; diluted EPS

• f $3.25, up $1.28, or 65%

─ Results include after-tax net benefit of $340 million, or $0.67 per share, from notable items in 2017 compared with $19 million, or $0.04 per share in 2016  NII up $415 million, reflecting 6% average loan growth and a 16 bp improvement in NIM driven by balance sheet

• ptimization strategies and higher rates

 Noninterest income was up 2% , reflecting underlying growth and notable items ─ Adj usted/ Underlying results were up $98 million, or 7% , driven by strength in capital markets, card fees, trust and investment services fees, letter of credit and loan fees, and foreign exchange and interest rate products fees  Noninterest expense increased $122 million from 2016 including the net $55 million impact from notable items ─ Adj usted/ Underlying results reflect higher salaries and employee benefits, outside services and other

• perating expense

 Provision for credit losses decreased $48 million  TBV per share of $27.48 was up 7%

FY17 vs FY16:

 Adj usted/ Underlying net income available to common stockholders(1) up $286 million, or 28% ; diluted EPS

• f $2.58 up

$0.65, or 34%  NII up $415 million, reflecting 6% average loan growth and a 16 bp increase in net interest margin driven by balance sheet

• ptimization strategies and higher rates

 Adj usted/ Underlying Noninterest income(1) increased $98 million, or 7% ─ S trength in capital markets, card fees, trust and investment services fees, letter of credit and loan fees, and foreign exchange and interest rate products fees  Adj usted/ Underlying Noninterest expense(1) increased $103 million, or 3% ─ Results reflect higher salaries and employee benefits,

• utside services, amortization of software, occupancy and
• ther operating expense

 Provision for credit losses decreased $22 million  Efficiency ratio improved by ~4.0 percentage points; positive

• perating leverage of 6.8%

Highlights

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying”

• r “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable.

Adjusted/Underlying 2017 financial summary(1)

$s in millions 2017 Underlying 2016 Adj usted 2017 change from 2016

$ % Net interest income 4,173 $ 3,758 $ 415 $ 11% Adjusted/Underlying Noninterest income(1) 1,528 1,430 98 7 Total revenue 5,701 5,188 513 10 Adjusted/Underlying Noninterest expense(1) 3,419 3,316 103 3 Adjusted/Underlying net income available to common stockholders(1) 1,298 $ 1,012 $ 286 $ 28% Key performance metrics(1) Adjusted/Underlying ROTCE(1) 9.8 7.6 219 Adjusted/Underlying efficiency ratio(1) 60.0 % 63.9 % (396) bps Adjusted/Underlying diluted EPS(1) 2.58 $ 1.93 $ 0.65 $ 34%

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Linked quarter:

 NII up $18 million, or 2% ─ Reflects 1% average loan growth driven by strength in retail loans  NIM of 3.08% improved 3 bps from 3Q17 ─ Reflects higher interest-earning asset yields tied to higher short-term interest rates and improving loan mix towards higher-return categories, partially offset by higher deposit and funding costs ─ 3Q17 results reflected a two basis point benefit from higher commercial loan interest recoveries

Prior-year quarter:

 NII up $94 million, or 10% , with NIM up 18 bps ─ 4% average loan growth with retail loans up 5% and commercial loans up 3%  NIM improved 18 bps from 4Q16 ─ Reflects higher interest-earning asset yields given balance sheet optimization initiatives and higher rates, partially

• ffset by a reduction in Federal Reserve Bank stock

dividends and higher deposit and funding costs

Net interest income

Highlights

1) Includes interest-bearing cash and due from banks and deposits in banks.

Net interest income Average interest-earning assets

Average interest-earning assets Net interest income Net interest margin

$138B $137B $138B $136B $135B $1,080 $1,062 $1,026 $1,005 $986 4Q17 3Q17 2Q17 1Q17 4Q16 3.08% 3.05% 2.97% 2.96% 2.90%

$s in billions 4Q16 1Q17 2Q17 3Q17 4Q17

Retail loans $55.5 $56.0 $56.7 $57.3 $58.1 Commercial loans 51.0 52.0 52.5 52.2 52.3 Investments and cash(1) 27.7 27.8 27.8 27.3 27.2 Loans held for sale 0.6 0.6 0.6 0.7 0.8 Total interest-earning assets $134.8 $136.4 $137.6 $137.5 $138.4 Interest-earning asset yields 3.30% 3.42% 3.49% 3.64% 3.69% Total cost of funds 0.44% 0.49% 0.56% 0.63% 0.65%

10

$s in millions, except earning asset s

Net interest margin

NIM walk 4Q16 to 4Q17 NIM walk 3Q17 to 4Q17

3.05% 3.08% 0.05% 0.00% (0.02)% (0.00)%

3Q17 NIM% Loan yields/ mix Invest ment port folio Deposit cost s Borrowings/

• t her

4Q17 NIM%

2.90% 3.08% 0.36% 0.02% (0.14)% (0.06)%

4Q16 NIM% Loan yields/ mix Invest ment port folio Deposit cost s Borrowings/

• t her

4Q17 NIM%

11

$387 $404 $381 $377 4Q17 3Q17 4Q16

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable

• items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26

million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less

• ther notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are
• n the same basis, when applicable.

Noninterest income

Highlights

$s in millions

S ervice charges and fees Card fees Capit al market s fees Trust & inv services fees LC and loan fees FX and int rat e product s Mort gage banking fees S ecurit ies gains, net Ot her Linked quarter:  Nonint erest income increased $23 million, which includes $17 million of 4Q17 not able it ems in ot her income ─ Underlying nonint erest income(1) increased $6 million  Capit al Market s fees were down $11 million from record 3Q17 levels as a decrease in loan syndicat ion and bond underwrit ing fees was part ially offset by an increase in advisory fees  Trust and invest ment services fees increased $4 million, reflect ing an increase in sales volume and product ivit y and growt h in managed money asset s  FX and IRP fees up $8 million on an increase in demand for variable rat e loan hedges relat ive t o lower t hird quart er levels t hat were impact ed by t he t iming of int erest -rat e moves and seasonalit y  Ot her income increased $22 million, reflect ing 4Q17 not able it em impact ─ Underlying ot her income(1) increased $5 million driven by an increase in hedging income and leasing income Prior-year quarter:  Nonint erest income was up $27 million; up $10 million, or 3% , on an Underlying basis(1)  Card fees up $6 million, reflect ing t he benefit of revised cont ract t erms for processing fees and an increase in purchase volume  Capit al market s fees increased $5 million driven by t he invest ment s made t o broaden our capabilit ies  Trust and invest ment services fees increased $8 million, reflect ing improved sales volume and product ivit y, an increase in managed money asset s and an increase in t he number of financial consult ant s  Mort gage banking fees down $8 million from fourt h quart er 2016 levels t hat included improved MS R valuat ions and higher

• riginat ion volumes

4Q17 change from 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Service charges and fees 131 $ 131 $ 132 $ — $ — % (1) $ (1) % Card fees 56 58 50 (2) (3) 6 12 Capital markets fees 42 53 37 (11) (21) 5 14 Trust & investment services fees 42 38 34 4 11 8 24 Letter of credit and loan fees 31 30 29 1 3 2 7 FX and interest rate products 32 24 31 8 33 1 3 Mortgage banking fees 28 27 36 1 4 (8) (22) Securities gains, net 2 2 3 — — (1) (33) Other income 40 18 25 22 122 15 60 Noninterest income 404 $ 381 $ 377 $ 23 $ 6 % 27 $ 7 % Notable items recorded in other income(1) 17 — — 17 100 17 100 Adjusted/Underlying noninterest income(1) 387 $ 381 $ 377 $ 6 $ 2 % 10 $ 3 %

12 Underlying

$858 $898 $858 $847 60.5% 59.4% 62.2% 4Q17 3Q17 4Q16

Highlights

$s in millions

Noninterest expense

S alary and benefit s Occupancy & equip All Ot her

1) Please see import ant informat ion on Key Performance Met rics and Non-GAAP Financial Measures at t he beginning and end of t his present at ion for an explanat ion of our use of t hese met rics and non-GAAP financial measures and t heir reconciliat ion t o GAAP financial measures. 4Q17 aft er-t ax not able it ems excluded from our “ Underlying” result s reflect a $10 million gain on a TDR port folio sale offset by $11 million of ot her not able it ems (“ TDR Transact ion II” ) and a $331 million benefit relat ing t o t he December 2017 Tax Legislat ion, part ially offset by $13 million of ot her not able it ems. “ Underlying” result s, as applicable, also exclude a 1Q17 $23 million benefit relat ed t o t he set t lement of cert ain st at e t ax mat t ers and reclassify 2Q17 result s for t he pre-t ax impact of $26 million of lease asset impairment s t o reflect t heir credit -relat ed impact . 3Q16 aft er-t ax not able it ems excluded from our “ Adj ust ed” result s reflect a $19 million gain on a TDR port folio sale less ot her not able it ems (“ TDR Transact ion” ). Where t here is a reference t o “ Adj ust ed” , “ Underlying” or “ Adj ust ed/ Underlying” result s in a paragraph, all measures t hat follow t hese references are on t he same basis, when applicable.

Efficiency ratio Full-t ime equivalent s (FTEs) 17,594 17,696 17,639

4Q17 change from 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Salaries and benefits 449 $ 436 $ 420 $ 13 $ 3 % 29 $ 7 % Occupancy 80 78 77 2 3 3 4 Equipment expense 67 65 69 2 3 (2) (3) Outside services 118 99 98 19 19 20 20 Amortization of software 46 45 44 1 2 2 5 Other expense 138 135 139 3 2 (1) (1) Noninterest expense 898 $ 858 $ 847 $ 40 $ 5 % 51 $ 6 % Adjusted/Underlying salaries and benefits(1) 432 $ 436 $ 420 $ (4) $ (1) % 12 $ 3 % Occupancy 80 78 77 2 3 3 4 Equipment expense 67 65 69 2 3 (2) (3) Adjusted/Underlying outside services(1) 106 99 98 7 7 8 8 Amortization of software 46 45 44 1 2 2 5 Adjusted/Underlying other expense(1) 127 135 139 (8) (6) (12) (9) Adjusted/Underlying noninterest expense(1) 858 $ 858 $ 847 $ — $ — % 11 $ 1 % Linked quarter:

 Nonint erest expense up $40 million, reflect ing $40 million of not able it ems; st able on an Underlying basis(1)  S alaries and benefit s $13 million higher; down $4 million on an Underlying basis reflect ing lower incent ives and seasonally lower payroll t axes(1) ─ FTEs decreased by 102, reflect ing seasonalit y and efficiency effort s  Out side services expense increased $19 million; up $7 million

• n an Underlying basis t ied t o consumer st rat egic growt h and

t echnology init iat ives(1)  Occupancy expense increased reflect ing seasonalit y and higher equipment expense given higher service cont ract cost s  Ot her expense increased $3 million; down $8 million on an Underlying basis driven by lower legal and regulat ory cost s and lower advert ising expense(1)

Prior-year quarter:

 Nonint erest expense $51 million higher; up $11 million on an Underlying basis(1)  S alaries and benefit s up $29 million; increased $12 million on an Underlying basis driven by merit increases and t he impact

• f hiring associat ed wit h st rat egic growt h init iat ives(1)

─ FTEs decreased by 45, reflect ing t he impact of efficiency init iat ives, part ially offset by t he West ern Reserve acquisit ion and st rat egic growt h init iat ives  Out side services expense increased $20 million; up $8 million

• n an Underlying basis t ied t o consumer st rat egic growt h and

t echnology init iat ives(1)  Ot her expense relat ively st able; down $12 million on an Underlying basis driven by a reduct ion in fraud, legal and regulat ory cost s(1) 13 Underlying

58.5%

Linked quarter:

 Tot al int erest -earning asset s up $950 million; Average loans and leases up $966 million, or 1% ─ Ret ail loans up $807 million, driven by growt h in mort gage, educat ion and unsecured, part ially offset by lower home equit y and aut o ─ Commercial loans up $159 million, driven by growt h in Mid-corporat e and Privat e Equit y and t he impact

• f geographic expansion st rat egies, part ially offset

by lower Asset Finance and non-core  Tot al deposit s up $806 million, reflect ing st rong growt h in demand and t erm deposit s, part ially offset by lower checking wit h int erest  Borrowed funds up $208 million, driven by higher short - t erm FHLB borrowings, part ially offset by decreased long- t erm borrowings

Prior-year quarter:

 Tot al int erest -earning asset s up $3.7 billion, or 3% ; Tot al loans and leases up $3.9 billion, or 4% ─ Ret ail loans up $2.6 billion, or 5% , driven by st rengt h in mort gage, educat ion and unsecured, part ially

• ffset by lower home equit y and aut o

─ Commercial loans up $1.3 billion, or 3% , reflect ing st rengt h in Mid-corporat e and Privat e Equit y, Commercial Real Est at e and Franchise Finance, as well as t he impact of geographic expansion st rat egies, part ially offset by lower Asset Finance, t he impact of lower line of credit ut ilizat ion and lower non-core  Tot al deposit s up $4.6 billion, or 4% , reflect ing growt h in t erm deposit s, checking wit h int erest and savings  Borrowed funds down $435 million, or 3% , as growt h in long-t erm borrowings was more t han offset by lower short- t erm FHLB borrowings.

8% 30% 12% 11% 10% 9% 20%

4Q17 change from $s in billions 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Investments and interest bearing deposits 27.2 $ 27.3 $ 27.7 $ (0.0) $ — % (0.5) $ (2) % Total commercial loans 52.3 52.2 51.0 0.2 — 1.3 3 Total retail loans 58.1 57.3 55.5 0.8 1 2.6 5 Total loans and leases 110.4 109.5 106.5 1.0 1 3.9 4 Loans held for sale 0.8 0.7 0.6 0.0 4 0.2 38 Total loans and leases and loans held for sale 111.2 110.2 107.1 1.0 1 4.1 4 Total interest-earning assets 138.4 137.5 134.8 0.9 1 3.7 3 Total noninterest-earning assets 12.7 12.5 12.6 0.1 1 0.1 1 Total assets 151.1 $ 150.0 $ 147.3 $ 1.1 $ 1 3.8 $ 3 Checking and savings 59.8 59.4 57.5 0.4 1 2.3 4 Money market deposits 37.5 37.5 38.4 (0.1) — (0.9) (2) Term deposits 16.5 16.0 13.2 0.5 3 3.3 25 Total deposits 113.8 $ 112.9 $ 109.1 $ 0.8 $ 1 4.6 $ 4 Total borrowed funds 14.8 14.6 15.2 0.2 1 (0.4) (3) Total liabilities 131.2 $ 130.0 $ 127.4 $ 1.2 $ 1 3.8 $ 3 Total stockholders' equity 19.9 20.0 19.9 (0.1) (1) (0.0) — Total liabilities and equity 151.1 $ 150.0 $ 147.3 $ 1.1 $ 1 % 3.8 $ 3 % 47% 42% 11%

Consolidated average balance sheet

Highlights

Note: Loan portfolio trends reflect non-core portfolio impact not included in segment results on pages 10 and 11.

$138.4 billion Interest-earning assets $128.6 billion Deposits/borrowed funds Total Retail 42% Total Commercial 38%

CRE Other Commercial Residential mortgage Total home equity Automobile Other Retail Investments and interest-bearing deposits Retail / Personal Commercial/ Municipal/ Wholesale Borrowed funds 14

Consumer Banking average loans and leases

1) Other includes Credit Card, RV, Marine, Other.

$s in billions

Linked quarter:

 Average loans up $894 million, or 2% , largely reflecting growth in residential mortgage, education and unsecured retail, partially offset by lower home equity and Business Banking balances  Consumer loan yields up 5 bps, reflecting the impact of continued improvement in mix toward student and other unsecured retail

Prior-year quarter:

 Average loans up $3.0 billion, or 5% , driven by strength in residential mortgage, education and unsecured retail, partially offset by lower home equity and auto balances  Consumer loan yields up 38 bps, reflecting initiatives to improve risk-adj usted returns, along with higher interest rates

Highlights

Average loans and leases

(1)

Mort gage Home Equit y Aut o Educat ion Business Banking Ot her

(1)

$14.4 $14.8 $15.2 $15.9 $16.4 $16.0 $15.7 $15.4 $15.1 $14.9 $14.0 $13.8 $13.6 $13.3 $13.3 $5.9 $6.6 $7.2 $7.6 $7.8 $2.9 $2.9 $2.8 $2.8 $2.7 $3.0 $3.1 $3.4 $3.6 $4.1

$56. 2B $56. 9B $57. 6B $58. 3B $59. 2B

4Q16 1Q17 2Q17 3Q17 4Q17

Mortgage Home Equity Auto Education Business Banking Other Yields 3.96% 4.06% 4.18% 4.29% 4.34%

15  5%

YoY growt h

$12.7 $13.1 $13.3 $13.2 $13.0 $10.1 $10.2 $10.3 $10.7 $11.3 $9.8 $10.1 $10.4 $10.7 $10.6 $4.7 $5.0 $5.1 $5.0 $5.0 $4.7 $4.8 $4.8 $4.6 $4.6 $4.9 $4.8 $4.6 $4.2 $4.0

$46.9B $48.0B $48.5B $48.4B $48.5B 4Q16 1Q17 2Q17 3Q17 4Q17

Middle Market Mid Corporate and ot her(1) Commercial Real Estate Franchise Finance Industr y Vert icals Asset Finance

Commercial Banking average loans and leases

Linked quarter:

 Average loans up $183 million, as continued strength in Mid-corporate and Private Equity and the impact of geographic expansion strategies was partially offset by planned runoff in the Asset Finance portfolio  Loan yields improved 7 bps given the impact of higher short-term LIBOR rates

Prior-year quarter:

 Average loans up $1.6 billion, or 3% , on strength in Mid-corporate and Private Equity, Commercial Real Estate and Franchise Finance, as well as the impact of geographic expansion strategies, partially offset by planned runoff in the Asset Finance portfolio and lower line of credit utilization  Loan yields increased 70 bps, reflecting improved mix and higher rates

1) Also includes Business Capital, Govt, S CA, Other, Treasury S

• lutions, Corporate and Commercial Banking Admin.

Highlights

$s in billions

 3%

Average loans and leases

Mid-corporat e and Privat e Equit y(1) Indust ry Vert icals Franchise Finance Middle Market Asset Finance Commercial Real Est at e 16

YoY growt h

Yields 2.93% 3.16% 3.32% 3.57% 3.63%

Average funding and cost of funds

Linked quarter:

 Total average deposits up $806 million, or 1% ─ Largely growth in demand and term deposits, partially offset by a decrease in checking with interest ─ Total deposit costs of 0.45% increased 2 bps, impacted by rising short-term interest rates  Total cost of funds increased 2 bps, which reflects the higher deposit costs and the impact of 3Q17 term debt issuance

Prior-year quarter:

 Total average deposits up $4.6 billion, or 4% , on growth in term deposits, checking with interest and savings and modest growth in demand deposits, partially offset by a decline in money market balances ─ Total deposit costs increased 17 bps, reflecting higher market deposit rates due to the increase in short-term interest rates  Total cost of funds increased 21 bps, reflecting the higher deposit costs and continued shift away from short-term funding and greater reliance on long-term debt

Highlights Average interest-bearing liabilities and DDA

$s in billions Tot al long-t erm borrowings Fed funds, repo, S T borrowed funds Term deposit s Checking wit h int erest DDA Money market & savings

$47.2 $47.0 $46.4 $47.0 $47.0 $28.4 $28.1 $27.5 $28.0 $28.9 $20.3 $20.7 $21.8 $21.9 $21.5 $13.2 $14.2 $15.1 $16.0 $16.5 $4.4 $3.8 $3.1 $2.4 $3.1 $10.8 $12.4 $13.6 $12.2 $11.7

$124. 3B $126. 2B $127. 5B $127. 5B $128. 6B

4Q16 1Q17 2Q17 3Q17 4Q17

Deposit cost of funds 0.28% 0.32% 0.37% 0.43% 0.45% Tot al cost of funds 0.44% 0.49% 0.56% 0.63% 0.65% 17

 Overall credit quality remains excellent, reflecting growth in higher-quality, lower-risk retail loans and broadly stable risk profile in commercial portfolios  NPLs to total loans and leases improved to 0.79% from 0.85% in 3Q17 and 0.97% in 4Q16 ─ NPLs decreased $61 million compared with 3Q17, reflecting a $60 million decrease in commercial and a $1 million decrease in retail  Net charge-offs of $78 million, or 0.28%

• f average loans and leases, increased $13 million

from 3Q17 ─ Commercial net charge-offs of $2 million increased $2 million from 3Q17 ─ Retail net charge-offs of $76 million increased $11 million largely due to seasonality in auto and education, as well as growth in the retail unsecured portfolio  Provision for credit losses of $83 million increased $11 million from a relatively low third quarter 2017 level; YoY results reflect strong portfolio credit quality and lower net charge-offs  Allowance to total loans and leases of 1.12% is stable vs. 1.11% in 3Q17 and 1.15% in 4Q16 ─ Allowance to NPL coverage ratio improved to 142% from 131% reflecting continued reduction in nonperforming loans

Strong credit-quality trends continue

Highlights

$s in millions

(1)

Allowance for loan and lease losses

$102 $96 $70 $72 $83 $11 $4 $14 $4 $104 $87 $75 $65 $78 0.39% 0.33% 0.28% 0.24% 0.28% 0.14% 0.15% 0.02% 0.01% 0.01% 0.56% 0.48% 0.43% 0.45% 0.52%

Core c/ os Non-core c/ os Net c/ o rat io Commercial core c/ o rat io Retail core c/ o ratio

1) Allowance for loan and lease losses to nonperforming loans and leases.

Nonperforming loans Provision for credit losses, net charge-offs (recoveries)

Provision for credit losses

4Q16 1Q17 2Q17 3Q17 4Q17

18

$1,236 $1,224 $1,219 $1,224 $1,236

118% 117% 119% 131% 142%

4Q16 1Q17 2Q17 3Q17 4Q17

Allowance for loan and lease losses NPL coverage ratio 1.15% 1.13% 1.12% 1.11% 1.12% Allowance to loan coverage ratio

$1, 045 $1, 050 $1, 025 $932 $871

0.97% 0.97% 0.94% 0.85% 0.79%

4Q16 1Q17 2Q17 3Q17 4Q17

NPLs NPLs to loans and leases

Capital and liquidity remain strong

Highlights

1) Current-reporting period regulatory capital ratios are preliminary. 2) Basel III ratio definitions impacting risk-weighted assets and qualifying Basel III capital fully phase in as of January 1, 2018. 3) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning of this presentation for an explanation of their use and the appendix for their calculation and/ or reconciliation to GAAP Financial Measures, as applicable. “ Adj usted” results exclude restructuring charges, special items and/ or notable items, as applicable. 4) Based on the S eptember 2014 release of the U.S . version of the Liquidity Coverage Ratio (LCR). Note that as a modified LCR company, CFG’ s minimal LCR requirement is 100% as of January 2017. Reflects current understanding of Net S table Funding Ratio (NS FR), although a U.S . version of the NS FR rule has not been finalized. 5) Period end includes held for sale.

$s in billions (period-end) 4Q16 1Q17 2Q17 3Q17 4Q17

Basel III transitional basis(1,2) Common equity tier 1 capital 13.8 $ 13.9 $ 14.1 $ 14.1 $ 14.2 $ Risk-weighted assets 123.9 $ 124.9 $ 125.8 $ 127.2 $ 127.6 $ Common equity tier 1 ratio 11.2 % 11.2 % 11.2 % 11.1 % 11.1 % Total capital ratio 14.0 % 14.0 % 14.0 % 13.8 % 13.8 % Basel III fully phased-in(1,3) Common equity tier 1 ratio 11.1 % 11.1 % 11.2 % 11.1 % 11.1 %

as of 14.0% 14.0% 14.0% 13.8% 13.8% 11.2% 11.2% 11.2% 11.1% 11.1%

4Q16 1Q17 2Q17 3Q17 4Q17

Total capital ratio Common equity tier 1 ratio 99% 97% 97% 98% 97%

4Q16 1Q17 2Q17 3Q17 4Q17

Loan-to-deposit ratio(5) Capital ratio trend

(1,2) (1,2)

19  Capital levels remain at the higher end of the range for regional peers  Y/ E CET1 ratio of 11.1% ; ~11.2% including expected benefit

• f an anticipated FAS

B accounting standards change ─ Above forecasted ‘ glide path’ range of 10.7 – 10.9% given strong fourth quarter performance, lower risk- weighted assets and impact of 2017 Tax Legislation  4Q17 Basel III common equity tier 1 capital ratio (CET1) was stable with 3Q17 ─ Net income (Underlying basis): ~27 bp increase ─ Tax Legislation: ~11 bp increase ─ Common share repurchase: ~26 bp decrease ─ Dividends and other: ~5 bp decrease ─ RWA growth: ~4 bp decrease ─ Colleagues and communities investment: ~1 bp decrease  LDR of 96.7% compares with 98.4% in 3Q17  Fully compliant with LCR and current understanding

• f NS

FR(4)  2017 CCAR plan reflects further commitment towards prudent return of capital ─ During 4Q17, repurchased 8.8 million shares of common stock at a weighted-average price of $38.18, and including common dividends returned $424 million to shareholders ─ Announced 22% increase in the quarterly dividend to $0.22 per common share beginning in 1Q18

Consumer Commercial CFG

Summary of progress on strategic initiatives

20

Initiative FY17 Status Commentary Grow and deepen relationships with primary households

Primary households grew YoY. Embarked on several cust omer j ourney t ransformat ions t o enhance cust omer experience, improve primacy of cust omer relat ionships and reduce cost s.

Enhance mortgage platform

S hift ed focus in 2017 t o enhance ret urns by improving channel mix and increasing efficiency of exist ing LOs. Tot al originat ions decreased 7% in FY17 which was bet t er t han t he market . Launched a direct -t o-consumer channel t o grow conforming originat ions and opt imize efficiency. Conforming mix surpassed 44% in 4Q17.

Optimize Auto

Cont inued opt imizat ion of bot h volumes and ret urns in t he business t hrough t arget ed pricing improvement s and management of dealer net work, focusing on most profit able dealer relat ionships. Yields increased 36 bps YoY(1).

Grow Education/Unsecured Credit

Cont inued st rong moment um in educat ion and unsecured wit h t ot al loan balances up $1.9 billion and $1.0 billion in 2017, respect ively. Corporat e part ner-linked inst allment credit balances nearly doubled YoY; made good progress wit h new corporat e part ners (i.e., Vivint ), and building solid pipeline of furt her opport unit ies.

Enhance Business Banking

Deposit balances up 4%

• YoY. Re-invigorat ed growt h in credit card port folio wit h purchase volume up 6%

in FY17. Launched new digit al lending capabilit y t o exist ing cust omers.

Expand Wealth

Made good progress on shift t o fee-based business, as fee-based sale mix improved t o 38% in FY17 from 26% in

• FY16. Tot al invest ment sales volume increased 18%
• vs. FY16. Financial consult ant s up 9%

in FY17 t o 393. Rolled

• ut new digit al invest ment advice t echnology (S

peciFi).

Continue development of Capital and Global Markets activities

Fee income up 29% in FY17. Growt h driven by robust syndicat ions and bond and equit y underwrit ing act ivit y, st rong performance in FX and derivat ives, and expanded M&A act ivit y from WRP acquisit ion. Middle Market bookrunner rank of #8 remains inline wit h our goal of being a t op t en bookrunner(2).

Build out Treasury Solutions

Cont inued enhancement of capabilit ies and core infrast ruct ure wit h 10+ upgrades complet ed in 2017; added headcount in key market s and product s. Fees up 7% in FY17 driven by 27% YoY increase in commercial card, 22% YoY increase in merchant services, and 10% growt h in t ot al Trade services. S t rong deposit growt h of 12% YoY.

Expand Mid-Corporate & Middle Market(3)

Loan balances up 4% in FY17, wit h st rong balance sheet growt h in Met ro NYC and S

• ut heast . Deposit s up $1.2

billion, or 11% , and fee income up 19%

• vs. FY16, reflect ing effort s t o deepen relat ionships wit h cust omers.

Build out Industry Verticals & Franchise Finance(3)

Indust ry vert ical loan growt h of 12% in FY17 driven by healt hcare and t echnology vert icals; indust ry vert ical fee income up $34 million, or 64% , vs. FY16. Cont inued expansion in well-est ablished brands of quick service and fast casual franchises, wit h 16% loan growt h YoY.

Prudently grow CRE(3)

Cont inued t o deepen client penet rat ion wit h t op developers in core geographies, while moderat ing growt h in mult i-family and ret ail sect ors. CRE loans grew 13% in FY17 t o $10.5 billion. Ent ered int o a t hird-part y st rat egic part nership t o refer Cit izens’ CRE client s for long-t erm permanent financing opport unit ies.

Reposition Asset Finance(3)

Cont inued t o realign product offering and st rat egy t owards core Middle Market and Mid-Corp cust omers t o drive great er bank alignment . Tot al book (core + noncore) reduced by $595 million t o $5.4 billion.

Balance Sheet Optimization

NIM increased 18 bps YoY wit h approximat ely 8 bps of t he increase due t o cont inued execut ion of balance sheet st rat egies t arget ing improved mix and pricing. Cont inued t o opt imize aut o and asset finance port folios for higher ret urns. Launched formal ent erprise-wide ‘ TOP-like’ program.

TOP III

Achieved in excess of $115 million of P&L benefit in FY17. Init iat ives largely complet ed; cont inue t o ramp-up unsecured lending.

TOP IV

TOP IV Program, which includes bot h efficiency and revenue init iat ives, is underway and on t rack t o deliver pre- t ax 4Q’ 18 run-rat e benefit of $95-$110 million.

1) Represents organic yields. 2) Thomson Reuters LPC, FY17 data as of 12/ 31/ 17 based on number of deals for Overall Middle Market (defined as Borrower Revenues <$500MM” ). 3) Growth rates exclude the impact of the 2Q17 loan sales and 3Q16 transfer of $1.1 billion loan and lease portfolio to Other.

Further opportunities to improve returns: TOP Continuous improvement - TOP programs

 S elf-fund investments through efficiency, expense discipline and mindset of continuous improvement  Use new technologies to deliver more effective outcomes at lower costs

TOP IV program on track to deliver run-rate pre-tax benefit of ~$95 - $110 million by end of 2018 Targeting strong positive operating leverage to self-fund growth initiatives Efficiency Initiatives

(selected examples)

 Organization Simplification: Focusing on spans and layers, cent ralizat ion/ centers of excellence, and role clarit y  Lean/Process Improvement: Redesigning end-to-end processing and leveraging aut omat ion t o reduce cost s and improve out comes  Vendor/Indirect Spend: Furt her vendor efficiencies and demand management (e.g., market dat a)  Customer Journeys (revenue + efficiency): S implifying and st reamlining ext ernal cust omer- cent ric processes

Revenue Initiatives

(selected examples)

 New Channels: Using digit al as a sales engine, building out direct t o consumer mort gage, and leveraging t he call cent er t o offer ‘ service t o solut ions’  Expanding into Growth Areas: Next wave of corporat e part nerships (Vivint , TBA) and expanding C&I lending in growt h market s  Build-out Fee Income Capabilities: S caling M&A advisory (West ern Reserve), building our Commercial S ecuritization, and scaling MS R purchases

21

Making consistent progress against our financial goals

1.0% +

Adjusted/Underlying efficiency ratio(1)

~60% 10% +

Key Indicators

Adjusted/ Underlying ROTCE(1) Adjusted/Underlying return on average total tangible assets(1)

EPS

Adjusted/Underlying diluted EPS

(1)

Common equity tier 1 ratio(2)

(3)

Underlying results(1) Reported results(1) Adj usted results(1)

1) Please see import ant informat ion on Key Performance Met rics and Non-GAAP Financial Measures at t he beginning and end of t his present at ion for an explanat ion of our use of t hese met rics and non-GAAP financial measures and t heir reconciliat ion t o GAAP financial measures. 4Q17 aft er-t ax not able it ems excluded from our “ Underlying” result s reflect a $10 million gain on a TDR port folio sale offset by $11 million of ot her not able it ems (“ TDR Transact ion II” ) and a $331 million benefit relat ing t o t he December 2017 Tax Legislat ion, part ially offset by $13 million of ot her not able it ems. “ Underlying” result s, as applicable, also exclude a 1Q17 $23 million benefit relat ed t o t he set t lement of cert ain st at e t ax mat t ers and reclassify 2Q17 result s for t he pre-t ax impact of $26 million of lease asset impairment s t o reflect t heir credit -relat ed impact . 3Q16 aft er-t ax not able it ems excluded from our “ Adj ust ed” result s reflect a $19 million gain on a TDR port folio sale less ot her not able it ems (“ TDR Transact ion” ). Where t here is a reference t o “ Adj ust ed” , “ Underlying” or “ Adj ust ed/ Underlying” result s in a paragraph, all measures t hat follow t hese references are on t he same basis, when applicable. 2) Common equit y t ier 1 ("CET1") capit al under Basel III replaced t ier 1 common capit al under Basel I effect ive January 1, 2015. Current period regulat ory capit al rat ios are preliminary. 3) Commencement of separat ion effort from RBS .

9.6% 9.0% 9.6% 4.3% 5.2% 5.2% 6.3% 6.2% 6.8% 6.7% 6.7% 6.6% 6.8% 6.6% 7.3% 8.0% 8.4% 9.6% 10.1% 10.4%

0.85% 0.89% 0.96% 0.96% 0.52% 0.59% 0.57% 0.68% 0.66% 0.69% 0.69% 0.67% 0.68% 0.67% 0.68% 0.72% 0.80% 0.79% 0.89% 0.96% 0.96% 62% 59% 59% 62% 60% 59% 59% 68% 68% 69% 70% 68% 67% 68% 67% 66% 66% 66% 65% 63% 62% 59% 59% 13.9% 13.5% 13.4% 13.3% 12.9% 12.4% 12.2% 11.8% 11.8% 11.7% 11.6% 11.5% 11.3% 11.2% 11.2% 11.2% 11.1% 11.1% $0.26 $0.30 $0.30 $0.37 $0.36 $0.39 $0.39 $0.40 $0.40 $0.42 $0.41 $0.46 $0.52 $0.55 $0.57 $0.68 $0.71 $0.61 $0.63 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

IPO-based medium-term targets

22

Underlying FY2017 guidance vs. Adjusted FY2016(1)(2)

Underlying FY2017 performance vs. guidance(1)(2)

Underlying FY2017 actual results vs. Adjusted FY2016(1)

Results reflect strong execution against targets

1) Please see import ant informat ion on Key Performance Met rics and Non-GAAP Financial Measures at t he beginning and end of t his present at ion for an explanat ion of our use of t hese met rics and non-GAAP financial measures and t heir reconciliat ion t o GAAP financial measures. “ Adj ust ed” result s exclude rest ruct uring charges, special it ems and/ or not able it ems; 4Q17 aft er-t ax not able it ems reflect a $10 million gain on a TDR port folio sale offset by $11 million of ot her not able it ems (“ TDR Transact ion II” ) and a $321 million benefit for t he adj ust ment of t he Company’ s net deferred t ax liabilit y t ied t o t he reduct ion in t he Federal st at ut ory t ax rat e under t he 2017 Tax Reform law part ially offset by $22 million of ot her aft er-t ax not able it ems. 3Q16 not able it ems reflect a $19 million gain on a TDR port folio sale less ot her not able it ems (“ TDR Transact ion” ). Underlying result s, as applicable, exclude a 1Q17 $23 million benefit relat ed t o t he set t lement of cert ain st at e t ax mat t ers and reclassify 2Q17 result s for t he pre-t ax impact of $26 million of lease asset impairment s t o reflect t heir credit -relat ed impact . Full-year 2017 Underlying t ot al credit -relat ed cost s were $347 million. Where t here is a reference t o “ Adj ust ed” , “ Underlying” or “ Adj ust ed/ Underlying” result s in a paragraph, all measures t hat follow t hese references are on t he same basis, when applicable. 2) Guidance as provided on 4Q16 January 20, 2017 earnings call.

Net interest income, net interest margin Operating leverage, efficiency ratio Credit trends, tax rate Capital, liquidity and funding Key economic assumptions Balance sheet growth Noninterest income

 Net interest income growth of 8-9%  NIM improvement of 8-10 bps  Expense growth of 3-3.5%  Target 3-5%

• f positive operating leverage

 Efficiency ratio improves to 61-62%  Provision expense $425-$475 million  Charge-off rates normalize modestly with additional reserve build to fund loan growth  Tax rate of ~32%  Targeting dividend payout ratio in the 30-35% range, common stock buyback TBD with CCAR  Year-end Basel III common equity tier 1 ratio 10.7-10.9%  Loan-to-deposit ratio ~98%  YE 2017: fed funds rate of ~1.25% (rate increases in June & Nov/ December), 10-year Treasury rate of ~2.50%

• 2.75%

range  Full-year GDP growth in the 2%

• 2.5%

range  YE-2017 unemployment rate in the 4.5%

• 4.7%

range  5.5-6.5% average earning asset growth  5.5-7% average loan growth  5.5-7% average deposit growth  3-5% noninterest income growth  Net interest income growth of 11%  NIM improvement of 16 bps  Expense growth of 3%  6.8% positive operating leverage  Efficiency ratio improved to 60%

(1)

 Provision expense of $321 million  Charge-off rate of 28 bps  Tax rate of 32.2%  Dividend payout ratio of 25% , common stock buyback of $820 million  Year-end Basel III common equity tier 1 ratio of 11.1%  Loan-to-deposit ratio of 98.3%  YE 2017: fed funds target rate of 1.25-1.50%  10-year Treasury rate of 2.40%  Full-year GDP growth of 2.4 – 2.5%  YE-2017 unemployment rate of 4.1%  5.3% average earning asset growth  5.8% average loan growth  6.1% average deposit growth  Growth in noninterest income of 7%

                

23

 

FY2018 outlook

Net interest income, NIM

 Net interest income growth of 7-9%  NIM improvement of 9-12 bps; using Dec 31 forward curve with April and October 2018 hikes

Operating leverage, efficiency ratio Credit trends, tax rate

 Expense growth of 3.25-3.75%  Target 3-5%

• f positive operating leverage

 Efficiency ratio improvement of 200-250 bps  Provision expense $425-$475 million  Charge-off rates up modestly with additional reserve build to fund loan growth  Tax rate of ~22.5%

(2)

FY2018 expectations vs. Underlying FY2017(1)

Capital, liquidity and funding

 Targeting FY18 dividend payout ratio of ~30% ; common stock buyback TBD with CCAR  Year-end Basel III common equity tier 1 ratio 10.6-10.8%  Loan-to-deposit ratio ~97-98%

Key economic assumptions

 YE 2018: fed funds rate of 1.75-2.00% (rate increases in April & Oct) 10-year Treasury rate of ~2.5-2.75% range  Full-year GDP growth in the 2.5– 3.0% range  YE 2018 unemployment rate 3.9– 4.1%

Balance sheet growth

 4.0-5.5% average earning asset growth  4.5-5.5% average loan growth  4.5-6.0% average deposit growth

Noninterest income

 4.5-6.0% noninterest income growth

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Full-year 2017 Underlying total credit-related costs were $347 million. Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable. 2) Tax rate estimate prior to Tax Legislation impact had been ~32.5% . FY2017 tax rate estimate may be refined up or down as further clarification around 2017 Tax Legislation is provided in the future.

 $4,173 million net interest income  3.02% NIM  $3,419 million noninterest expense  6.8%

• perating leverage

 60.0% efficiency ratio  $321 million provision expense  28 bps of net charge-offs  32.2% tax rate  25% dividend payout ratio; common stock buyback of $820 million  11.1% CET1 ratio  98.3% loan-to-deposit ratio  YE 2017: fed funds target rate

• f 1.25-1.50%

 Full-year GDP growth of 2.4-2.5%  YE 2017 unemployment rate of 4.1%  $137.5 billion average earning assets  $110.0 billion average loans  $111.9 billion average deposits  $1,528 million noninterest income

Underlying FY2017(1)

24

FY2018 outlook compared with Underlying 2017(1)

Net interest income, NIM Operating leverage, efficiency ratio Credit trends, tax rate Capital, liquidity and funding Underlying 2017 vs. Adjusted 2016(1) FY2018 expectations vs. Underlying 2017(1) Balance sheet growth Noninterest income

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Full-year 2017 Underlying total credit-related costs were $347 million. Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable. 2) Tax rate estimate prior to Tax Legislation impact had been ~32.5% . FY2017 tax rate estimate may be refined up or down as further clarification around 2017 Tax Legislation is provided in the future.

25

 Net interest income growth of 7-9%  NIM improvement of 9-12 bps; using Dec 31 forward curve with April and October 2018 hikes  Expense growth of 3.25-3.75%  Target 3.0-5.0%

• f positive operating leverage

 Efficiency ratio improves by 200-250 bps  Provision expense $425-$475 million  Charge-off rates up modestly with additional reserve build to fund loan growth  Tax rate of ~22.5%

(2)

 Targeting FY18 dividend payout ratio in the ~30% range; common stock buyback TBD with CCAR  Year-end Basel III common equity tier 1 ratio 10.6-10.8%  Loan-to-deposit ratio ~97-98%  YE 2018: fed funds rate of 1.75-2.00% (rate increases in April & Oct) 10-year Treasury rate of ~2.5-2.75% range  Full-year GDP growth in the 2.5– 3.0% range  YE 2018 unemployment rate 3.9– 4.1%  4.0-5.5% average earning asset growth  4.5-5.5% average loan growth  4.5-6.0% average deposit growth  4.5-6.0% noninterest income growth  Net interest income growth of 11%  NIM improvement of 16 bps  Expense growth of 3%  6.8% positive operating leverage  Efficiency ratio improved by 396 bps(1)  Provision expense of $321 million  Charge-off rate of 28 bps with additional reserve build to fund loan growth  Tax rate of 32.2%  Dividend payout ratio of 25% , common stock buyback of $820 million  Year-end Basel III common equity tier 1 ratio

• f 11.1%

 Loan-to-deposit ratio of 98.3%  YE 2017: fed funds rate of 1.25-1.50%  10-year Treasury rate of 2.40%  Full-year GDP growth of 2.4 – 2.5%  YE 2017 unemployment rate of 4.1%  5.3% average earning asset growth  5.8% average loan growth  6.1% average deposit growth  Growth in noninterest income of 7%

Key economic assumptions

1Q18 outlook

Net interest income, net interest margin Noninterest expense Credit trends, tax rate

 ~1.0% loan growth  Expect ~5 basis point improvement in net interest margin given recent rate rise  Day count impact of ~$16 million decrease to NII  Up ~3% given seasonal compensation impacts  Provision expense of ~$85-$95 million  Tax rate of ~23% reflecting 0.5% Historic Tax Credit impact

1Q18 expectations vs. 4Q17 Capital, liquidity and funding

 Quarter-end Basel III common equity tier 1 ratio ~11.1%  Loan-to-deposit ratio of ~98%  Preferred stock dividend of $7 million

Noninterest income

 S table/ up modestly as strength in capital markets offsets seasonal impacts

26

Helping you reach your potential We perform our best every day so we can do more for our customers, colleagues, communities and shareholders We strive to always: exceed customer expectations, do the right thing, think long-term, work together We are citizens helping citizens reach their potential To help our customers, colleagues and communities reach their potential We are here to help our customers reach their potential by listening to them and by understanding their needs so we can deliver personalized advice, ideas and solutions To be a top-performing bank distinguished by its customer-centric culture, mindset of continuous improvement and excellent capabilities Mission Vision Credo Brand Narrative

Our vision and credo guide us: The destination

27

Colleagues Regulators Investors Communities & Society Customers

Keys to delivering higher medium-term returns

28

TOP and Balance Sheet Optimization (“BSO”) Drive Growth in Fee Businesses Active Capital Management

• Enterprise-wide initiatives to drive improvement in performance; ‘ mindset of

continuous improvement’

• BS

O to recycle capital into more accretive growth and relationship categories; grow higher risk-adj usted return asset portfolios, reposition/ optimize other select portfolios ─ Optimize deposit mix with a focus on lower-cost categories Consumer

• Wealth –

Leverage investments in FCs and sales, product and technology platforms

• Mortgage –

Channel and product remix toward direct -to-consumer and conforming; purchase MS Rs to increase scale economies Commercial

• Continue to broaden Capital Markets capabilities; leverage new Global Markets platform

and capabilities

• Treasury –

Replatform cash management; capture value from recent product investments

• Prudently grow balance sheet while driving strong returns of capital to shareholders

Capture Asset Sensitivity

• Leverage asset sensitivity to benefit as rates rise

New medium-term financial targets

29

 ROTCE ~13-15%  Efficiency Ratio ~52-56%  CET 1 ~10.0-10.25%  Dividend payout ratio ~35-40%

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable. 2) Includes volume driven credit costs unrelated to credit normalization. 3) Capital net includes the impact of risk-weighted asset growth net of targeted capital actions: retained earnings growth of ~(3.0)% partially offset by common stock repurchases of ~1.5% and the impact of rising rates on other comprehensive income of ~0.4% .

Medium-term ROTCE outlook

(3)

Economic assumptions Medium-term financial targets  Real GDP growth ~2.5– 3.0% annually; no recession  Fed Funds Rate ~2.25 rate moves per annum (25 bps each move)  Unemployment rate ~3.5-4.0%

Operating assumptions

 Loan growth target of nominal GDP +~1%  Asset sensitivity moderates as rates normalize  Operating leverage target of ~3-5%

(1)

 Expect to continue to pursue formal efficiency initiatives to fund expanded strategic investments  CET1 ratio annual reduction of ~30-40 bps  Initial benefit of tax reform declines modestly with time

(2)

~10% ~14% ~2.5% ~1.5% ~0.6% ~1.3% ~(0.8)% ~(1.1)%

FY 17 Underlying Revenue net

• f required

investment Yield curve impact Efficiency Initiat ives Taxes Credit normalization Capital net Medium-term FY target

Key messages

 Citizens continues to execute well and deliver for shareholders ─ S trong 4Q17 results with Underlying ROTCE of 10.4% up from 4.3% in 3Q13(1) ─ S trong Underlying EPS growth of 29% , with operating leverage of 6.4% Y

• Y

, and efficiency ratio

• f 58.5%

(1)

─ Tangible book value per share of $27.48 at quarter end, up 7% from 4Q16 ─ Full year 2017 results demonstrate consistent progress ─ Underlying/ Adj usted EPS growth of 34% ─ Underlying/ Adj usted operating leverage of 6.8% ─ Average loan growth of 6% ; NIM up by 16 bps (3.02% ) ─ Underlying/ Adj usted noninterest income growth of 7%  S trong focus on continuous improvement and delivering benefits from TOP efficiency programs ─ Well positioned as we enter 1Q18 to capitalize on improving economic environment and rising rates ─ Key to financial results is to grow the balance sheet smartly with continued focus on building out fee businesses and delivering positive operating leverage  Capital and credit position remains robust ─ Returned $1.1 billion to common shareholders in 2017; up 70% from 2016 ─ S trong CET1 ratio permits both continued strong loan growth and capital returns to shareholders ─ Focused on delivering enhanced shareholder returns  New medium-term targets represent commitment to continued growth and discipline

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable.

30

Appendix

31

$341 $666 $349 3Q17 4Q17

Linked-quarter results

Pre-provision profit

$s in millions

Return on average total tangible assets Net income available to common shareholders and EPS

$s in millions, except per share data

Return on average tangible common equity

 modestly

Period-end loans

$s in billions

Period-end deposits

$s in billions

 modestly

 2% $1.35 $0.68  87 bps

Underlying

 4% GAAP results Underlying results

(1)

Underlying stable  979 bps Underlying  30 bps $0.71  99% Underlying  4%  95% Underlying  2%

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are

• n the same basis, when applicable.

$609 $585 $586 3Q17 4Q17 $110.2 $110.6 3Q17 4Q17 0.96% 1.83% 0.96% 3Q17 4Q17 $113.2 $115.1 3Q17 4Q17 10.1% 19.9% 10.4% 3Q17 4Q17

32

$349 $282 $666 4Q16 4Q17 $609 $516 $586 4Q16 4Q17 $107.7 $110.6 4Q16 4Q17 $109.8 $115.1 4Q16 4Q17

Year-over-Year results

Pre-provision profit

$s in millions

Return on average total tangible assets Net income available to common shareholders and EPS

$s in millions, except per share data

Return on average tangible common equity

 14%

Period-end loans

$s in billions

Period-end deposits

$s in billions

 3%  5% $1.35 $0.55  104 bps Underlying  18% GAAP results Underlying results

(1)

0.96% 0.79% 1.83% 4Q16 4Q17 Underlying  17 bps 8.4% 19.9% 10.4% 4Q16 4Q17  1149 bps Underlying  200 bps $0.71  145% Underlying  29%  136% Underlying  24%

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are

• n the same basis, when applicable.

33

$1,031 $1,638 $1,012 $1,298

2016 2017

Full year results

Pre-provision profit

$s in millions

Return on average total tangible assets Net income available to common shareholders and EPS

$s in millions, except per share data

Return on average tangible common equity

 17%

Period-end loans

$s in billions

Period-end deposits

$s in billions

 3%  5%

$3.25 $1.93

 39 bps Underlying  22% GAAP results Adjusted/Underlying results

(1)

Underlying  16 bps  461 bps Underlying  219 bps

$2.58

 65% Underlying  34%  59% Underlying  28%

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are

• n the same basis, when applicable.

$1,872 $2,233 $1,903 $2,282

2016 2017 $107.7 $110.6 2016 2017 $109.8 $115.1 2016 2017

$1.97

0.76% 1.15% 0.75% 0.91% 2016 2017 7.7% 12.3% 7.6% 9.8% 2016 2017

34

Consumer Banking segment

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are

• n the same basis, when applicable.

2) Includes held for sale. 3) Operating segments are allocated capital on a risk-adj usted basis considering economic and regulatory capital requirements. We approximate that regulatory capital is equivalent to a sustainable target level for tier 1 common equity and then allocate that approximation to the segments based on economic capital.

Highlights

Linked quarter:

 Net income down $5 million, or 4% , as 4Q17 result s include $5 million aft er-t ax of not able it ems included in nonint erest expense associat ed wit h our st rat egic growt h init iat ives. Excluding t he not able it ems, (1) Consumer Banking net income was relat ively st able wit h 3Q17  Net int erest income up $8 million, or 1% , driven by growt h in mort gage, educat ion and unsecured ret ail loans and improved loan yields, part ially offset by higher deposit cost s  Average loans up $868 million, or 1% , and average deposit s up $69 million from 3Q17  Nonint erest income up 1% from 3Q17, as higher t rust and invest ment services fees, largely offset by seasonally lower card fees  Nonint erest expense up 1% from 3Q17 levels, including $9 million pre- t ax of not able it ems primarily associat ed wit h our st rat egic growt h init iat ives, as well as an increase in occupancy and ot her operat ing expense, offset by seasonally lower market ing spend and salary and benefit s expense. Excluding not able it ems(1), nonint erest expense decreased $3 million from t he t hird quart er 2017.  Provision for credit losses up $11 million

Prior-year quarter:

 Net income up $25 million, or 27%  Net int erest income up $43 million, or 7% , driven by improved loan yields reflect ing higher int erest rat es and mix and growt h in mort gage, st udent , and unsecured ret ail balances, part ially offset by higher deposit cost s  Average loans up $2.8 billion, or 5% , and average deposit s up $2.0 billion, or 3% , from 4Q16  Nonint erest income up 1% , driven by higher t rust and invest ment fees and card fees, part ially offset by lower mort gage banking fees  Nonint erest expense up $5 million, driven by higher out side services, which includes cost s t ied t o st rat egic growt h init iat ives, as well as higher salaries and benefit s and FDIC expense, part ially offset by lower fraud and ot her losses. Excluding t he not able it ems, (1) nonint erest expense decreased $4 million compared wit h 4Q16.  Provision for credit losses st able compared wit h 4Q16 4Q17 change from $s in millions 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Net interest income 682 $ 674 $ 639 $ 8 $ 1% 43 $ 7% Noninterest income 229 227 227 2 1 2 1 Total revenue 911 901 866 10 1 45 5 Noninterest expense 654 648 649 6 1 5 1 Pre-provision profit 257 253 217 4 2 40 18 Provision for credit losses 76 65 74 11 17 2 3 Income before income tax expense 181 188 143 (7) (4) 38 27 Income tax expense 64 66 51 (2) (3) 13 25 Net income 117 $ 122 $ 92 $ (5) $ (4)% 25 $ 27% Average balances Total loans and leases(2) 59.5 $ 58.7 $ 56.7 $ 0.9 $ 1% 2.8 $ 5% Total deposits 75.2 $ 75.1 $ 73.1 $ 0.1 $ — 2.0 $ 3% Mortgage Banking metrics Originations 1,687 $ 1,875 $ 2,220 $ (188) $ (10)% (533) $ (24)% Origination Pipeline 1,219 1,467 1,868 (248) (17)% (649) (35)% Gain on sale of secondary

• riginations

1.94% 2.05% 1.81% (11) bps 13 bps Key performance metrics ROTCE(1,3) 8.3% 8.7% 7.0% (43) bps 132 bps Efficiency ratio(1) 72% 72% 75% 2 bps (300) bps

35

Commercial Banking segment

Highlights

Linked quarter:

 Commercial Banking net income up $5 million, or 2%  Net interest income up $13 million, or 4% , reflecting strong deposit balance growth  Loan results largely reflect growth in Mid-corporate and Private Equity and the impact of geographic expansion strategies, partially

• ffset by planned runoff of the Asset Finance portfolio

 Noninterest income up 1% as higher foreign exchange and interest rate products, leasing fees and letter of credit fees offset lower capital markets fees from record levels in 3Q17  Noninterest expense remained stable  Provision for credit losses remained stable

Prior-year quarter:

 Net income up $34 million, or 20%  Net interest income up $20, or 6% , as benefit of 4% average loan growth and improved loan yields was partially offset by higher deposit costs  Average loans and leases up $1.9 billion, driven by strength in Mid- corporate and Private Equity, Commercial Real Estate and Franchise Finance, as well as the impact of our geographic expansion strategies, partially offset by runoff of the Asset Finance portfolio and the impact of lower line utilization  Noninterest income up $16 million, or 13% , reflecting strength in capital markets, letter of credit and loan fees and card fees  Noninterest expense up $8 million, or 4% , reflecting higher salaries and benefits expense, outside services and software amortization, partially offset by lower legal and regulatory expense  Provision for credit losses decreased $21 million from higher 4Q16 levels, largely tied to commodities-related credits 4Q17 change from $s in millions 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Net interest income 367 $ 354 $ 347 $ 13 $ 4% 20 $ 6% Noninterest income 138 136 122 2 1 16 13 Total revenue 505 490 469 15 3 36 8 Noninterest expense 195 195 187 — — 8 4 Pre-provision profit 310 295 282 15 5 28 10 Provision for credit losses (1) — 20 (1) NM (21) (105) Income before income tax expense 311 295 262 16 5 49 19 Income tax expense 105 94 90 11 12 15 17 Net income 206 $ 201 $ 172 $ 5 $ 2% 34 $ 20% Average balances $s in billions Total loans and leases(2) 48.9 $ 48.7 $ 47.0 $ 0.2 $ — % 1.9 $ 4% Total deposits 31.5 $ 30.8 $ 29.4 $ 0.8 $ 2% 2.1 $ 7% Key performance metrics ROTCE(1,3) 14.1% 14.1% 12.9% 9 bps 121 bps Efficiency ratio(1) 39% 39% 40% (55) bps (99) bps

36

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable. 2) Includes held for sale. 3) Operating segments are allocated capital on a risk-adj usted basis considering economic and regulatory capital requirements. We approximate that regulatory capital is equivalent to a sustainable target level for tier 1 common equity and then allocate that approximation to the segments based on economic capital.

Other

Linked quarter:  Ot her recorded net income of $343 million, up $318 million, driven primarily by t he $331 million deferred t ax liabilit y benefit t ied t o 2017 Tax Legislat ion  Net int erest income, down $3 million, or 9% , driven by higher funding cost s  Nonint erest income up $19 million, driven primarily by $17 million of pre-t ax, or $10 million aft er-t ax, of not able it ems relat ed t o gain on sale of TDR Transact ion II(1)  Nonint erest expense up $34 million, driven primarily by $31 million of not able it ems, which includes $12.5 million relat ed t o our one-t ime colleague bonus, $10 million in charit able cont ribut ions expense and $9 million relat ed t o our efficiency init iat ives(1)  Provision up $1 million relat ed t o non-core net charge-offs, part ially offset by a lower reserve build vs. 3Q17 Prior-year quarter:  Ot her net income up $325 million, driven primarily by t he 2017 Tax Legislat ion  Net int erest income up $31 million, driven by residual funds t ransfer pricing and higher port folio income, part ially offset by higher funding cost s, non-core port folio run off and t he lower benefit

• f swaps

 Nonint erest income up $9 million, largely t ied t o $17 million

• f not able it ems relat ed t o t he TDR Transact ion II gain

 Nonint erest expense up $38 million, driven primarily by not able it ems recorded in 4Q17  Provision was st able vs. 4Q16

Highlights

4Q17 change from $s in millions 4Q17 3Q17 4Q16 3Q17 4Q16

$ % $ % Net interest income 31 $ 34 $ — $ (3) $ (9) % 31 $ NM Noninterest income 37 18 28 19 106 9 32 Total revenue 68 52 28 16 31 40 143 Noninterest expense 49 15 11 34 227 38 NM Pre-provision profit 19 37 17 (18) (49) 2 12 Provision for credit losses 8 7 8 1 14 — — Income before income tax expense (benefit) 11 30 9 (19) (63) 2 22 Income tax expense (benefit) (332) 5 (9) (337) NM (323) NM Net income 343 $ 25 $ 18 $ 318 $ NM 325 $ NM Average balances $s in billions Total loans and leases 2.7 $ 2.8 $ 3.4 $ (0.1) $ (2) % (0.6) $ (19) % Total deposits 7.1 $ 7.1 $ 6.6 $ (0.0) $ — % 0.5 $ 7 %

37

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable

• items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26

million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less

• ther notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are
• n the same basis, when applicable.

Adjusted/underlying items

$s in millions, except per share dat a

4Q17 GAAP results reflect a net $318 million aft er-tax benefit for the 4Q17 adj ustment of t he Company’ s net deferred tax liability tied to t he 2017 Tax Reform law, partially offset by investments in colleagues and communities, as well as $10 million aft er-tax TDR Transaction gain offset by $11 million of after-tax costs associated with TOP IV efficiency initiatives. 2017 GAAP results reflect a net $318 million aft er-tax benefit for t he 4Q17 adj ustment of t he Company’ s net deferred tax liability tied to the 2017 Tax Reform law, partially offset by notable it ems, and a $23 million aft er-tax benefit tied to t he 1Q17 sett lement of state tax matters. 2Q17 GAAP results include a $26 million pre-tax impact of lease asset impairments recorded as an $11 million reduction in noninterest income and a $15 million increase in noninterest expense. Underlying results also reclassify the lease asset impairments to reflect t heir credit-relat ed impact as credit- related costs. 2016 GAAP results include a net $19 million aft er-t ax benefit tied to 3Q16 TDR Transaction gain, partially offset by other costs associated wit h Asset Finance repositioning, TOP III efficiency initiatives and home equity operational items.

1) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliation to GAAP financial measures. 4Q17 after-tax notable items excluded from our “ Underlying” results reflect a $10 million gain on a TDR portfolio sale offset by $11 million of other notable items (“ TDR Transaction II” ) and a $331 million benefit relating to the December 2017 Tax Legislation, partially offset by $13 million of other notable items. “ Underlying” results, as applicable, also exclude a 1Q17 $23 million benefit related to the settlement of certain state tax matters and reclassify 2Q17 results for the pre-tax impact of $26 million of lease asset impairments to reflect their credit-related impact. 3Q16 after-tax notable items excluded from our “ Adj usted” results reflect a $19 million gain on a TDR portfolio sale less other notable items (“ TDR Transaction” ). Where there is a reference to “ Adj usted” , “ Underlying” or “ Adj usted/ Underlying” results in a paragraph, all measures that follow these references are on the same basis, when applicable. 2) December 2017 Tax Legislation benefit amounts are estimated as of December 31, 2017 and may be subj ect to adj ustment during 2018.

38 Notable items(1)

($s in millions, except per share data) 4Q17 2017 Underlying Impact 2016 Adj usted Impact

Notable items 2017 Tax Legislation-related notable items

(2)

Pre-tax total noninterest expense

(22) $ (22) $ (22) $ — $ (22) $

After-tax total noninterest expense

(13) (13) (13) — (13)

Deferred tax liability adj ustment - Income taxes

331 331 331 — 331

Total pre-tax 2017 Tax Legislation-related notable items

(22) $ (22) $ (22) $ — $ (22) $

Total after-tax 2017 Tax Legislation-related notable items

318 $ 318 $ 318 $ — $ 318 $

Other notable items

Pre-tax noninterest income

17 $ 17 $ 6 $ 67 $ (61) $

After-tax noninterest income

10 10 3 41 (38) $

Pre-tax total noninterest expense

(18) (18) (33) (36) 3

After-tax total noninterest expense

(11) (11) (22) (22) —

Provision for credit losses

26 — 26

After-tax lease impairment credit-related costs

18 — 18

Total pre-tax other notable items

(1) $ (1) $ (1) $ 31 $ (32) $

1Q17 State tax settlement - income taxes

23 — 23

Total after-tax other notable items

(1) $ (1) $ 22 $ 19 $ 3 $

Total pre-tax notable items

(23) $ (23) $ (23) $ 31 $ (54) $

Total after-tax notable items

317 $ 317 $ 340 $ 19 $ 321 $ Adjusted/Underlying diluted EPS(1) 0.64 $ 0.64 $ 0.67 $ 0.04 $ 0.63 $

4Q17 change from 3Q17/ 4Q16 Adj usted/ Underlying 2017 vs 2016

Key performance metrics, Non-GAAP financial measures and reconciliations

39

$s in millions, except share, per share and rat io dat a

4Q17 3Q17 2Q17 1Q17 4Q16 2017 2016 $ % $ % $ % Noninterest income, Adjusted/Underlying: Nonint er est income (GAAP) $404 $381 $370 $379 $377 $23 6 % $27 7 % $1,534 $1,497 $37 2 % Less: Not able it ems 17 — (11) — — 17 100 17 100 6 67 (61) (91) Nonint er est income, Adj ust ed/ Under lying (non-GAAP) $387 $381 $381 $379 $377 $6 2 % $10 3 % $1,528 $1,430 $98 7 % Total revenue, Adjusted/Underlying: Tot al r evenue (GAAP) A $1,484 $1,443 $1,396 $1,384 $1,363 $41 3 % $121 9 % $5,707 $5,255 $452 9 % Less: Not able it ems 17 — (11) — — 17 100 17 100 6 67 (61) (91) Tot al r evenue, Adj ust ed/ Under lying (non-GAAP) B $1,467 $1,443 $1,407 $1,384 $1,363 $24 2 % $104 8 % $5,701 $5,188 $513 10 % Noninterest expense, Adjusted/Underlying: Nonint er est expense (GAAP) C $898 $858 $864 $854 $847 $40 5 % $51 6 % $3,474 $3,352 $122 4 % Less: Not able it ems 40 — 15 — — 40 100 40 100 55 36 19 53 Nonint er est expense, Adj ust ed/ Under lying (non-GAAP) D $858 $858 $849 $854 $847 $— — % $11 1 % $3,419 $3,316 $103 3 % Pre-provision profit: Tot al r evenue (GAAP) A $1,484 $1,443 $1,396 $1,384 $1,363 $41 3 % $121 9 % $5,707 $5,255 $452 9 % Less: Nonint er est expense (GAAP) C 898 858 864 854 847 40 5 51 6 3,474 3,352 122 4 Pr e-pr ovision pr ofit (GAAP) $586 $585 $532 $530 $516 $1 — % $70 14 % $2,233 $1,903 $330 17 % Pre-provision profit, Adjusted/Underlying: Tot al r evenue, Adj ust ed/ Under lying (non-GAAP) B $1,467 $1,443 $1,407 $1,384 $1,363 $24 2 % $104 8 % $5,701 $5,188 $513 10 % Less: Nonint er est expense, Adj ust ed/ Under lying (non-GAAP) D 858 858 849 854 847 — — 11 1 3,419 3,316 103 3 Pr e-pr ovision pr ofit , Adj ust ed/ Under lying (non-GAAP) $609 $585 $558 $530 $516 $24 4 % $93 18 % $2,282 $1,872 $410 22 % Total credit-related costs, Adjusted/Underlying: Pr ovision for cr edit losses (GAAP) $83 $72 $70 $96 $102 $11 15 % ($19) (19% ) $321 $369 ($48) (13% ) Add: Lease impair ment cr edit -r elat ed cost s — — 26 — — — — — — 26 — 26 100 Tot al cr edit -r elat ed cost s, Adj ust ed/ Under lying (non-GAAP) $83 $72 $96 $96 $102 $11 15 % ($19) (19% ) $347 $369 ($22) (6% ) Income before income tax expense, Adjusted/Underlying: Income befor e income t ax expense (GAAP) E $503 $513 $462 $434 $414 ($10) (2% ) $89 21 % $1,912 $1,534 $378 25 % Less: Income befor e income t ax expense (benefit ) r elat ed t o not able it ems (23) — — — — (23) (100) (23) (100) (23) 31 (54) (174) Income befor e income t ax expense, Adj ust ed/ Under lying (non-GAAP) F $526 $513 $462 $434 $414 $13 3 % $112 27 % $1,935 $1,503 $432 29 % Income tax expense, Adjusted/Underlying: Income t ax expense (GAAP) G ($163) $165 $144 $114 $132 ($328) (199% ) ($295) (223% ) $260 $489 ($229) (47% ) Less: Income t ax expense (benefit ) r elat ed t o not able/ Under lying it ems (340) — — (23) — (340) (100) (340) (100) (363) 12 (375) NM Income t ax expense, Adj ust ed/ Under lying (non-GAAP) H $177 $165 $144 $137 $132 $12 7 % $45 34 % $623 $477 $146 31 % Net income, Adjusted/Underlying: Net income (GAAP) I $666 $348 $318 $320 $282 $318 91 % $384 136 % $1,652 $1,045 $607 58 % Add: Not able it ems, net of income t ax expense (benefit ) (317) — — (23) — (317) (100) (317) (100) (340) (19) (321) NM Net income, Adj ust ed/ Under lying (non-GAAP) J $349 $348 $318 $297 $282 $1 — % $67 24 % $1,312 $1,026 $286 28 % Net income available to common stockholders, Adjusted/Underlying: Net income available t o common st ockholder s (GAAP) K $666 $341 $318 $313 $282 $325 95 % $384 136 % $1,638 $1,031 $607 59 % Add: Not able it ems, net of income t ax expense (benefit ) (317) — — (23) — (317) (100) (317) (100) (340) (19) (321) NM Net income available t o common st ockholder s, Adj ust ed/ Under lying (non-GAAP) L $349 $341 $318 $290 $282 $8 2 % $67 24 % $1,298 $1,012 $286 28 % QUARTERLY TRENDS FULL YEAR 4Q17 Change 2017 Change 3Q17 4Q16 2016

Key performance metrics, Non-GAAP financial measures and reconciliations

40

$s in millions, except share, per share and rat io dat a

4Q17 3Q17 2Q17 1Q17 4Q16 2017 2016 $/bps % $/bps % $/bps % Operating leverage: Tot al r evenue (GAAP) A $1,484 $1,443 $1,396 $1,384 $1,363 $41 2.86 % $121 8.93 % $5,707 $5,255 $452 8.61 % Less: Nonint er est expense (GAAP) C 898 858 864 854 847 40 4.79 51 6.03 3,474 3,352 122 3.63 Oper at ing lever age (1.93% ) 2.90% 4.98% Operating leverage, Adjusted/Underlying: Tot al r evenue, Adj ust ed/ Under lying (non-GAAP) B $1,467 $1,443 $1,407 $1,384 $1,363 $24 1.68 % $104 7.67 % $5,701 $5,188 $513 9.90 % Less: Nonint er est expense, Adj ust ed/ Under lying (non-GAAP) D 858 858 849 854 847 — 0.12 11 1.31 3,419 3,316 103 3.10 Oper at ing lever age, Adj ust ed/ Under lying (non-GAAP) 1.56% 6.36% 6.80% Efficiency ratio and efficiency ratio, Adjusted/Underlying: Efficiency r at io C/ A 60.52 % 59.41 % 61.94 % 61.68 % 62.18 % 111 bps (166) bps 60.87 % 63.80 % (293) bps Efficiency r at io, Adj ust ed/ Under lying (non-GAAP) D/ B 58.50 59.41 60.36 61.68 62.18 (91) bps (368) bps 59.96 63.92 (396) bps Effective income tax rate and effective income tax rate, Adjusted/Underlying: Effect ive income t ax r at e G/ E (32.40% ) 32.18 % 31.13 % 26.36 % 31.90 % NM NM 13.62 % 31.88 % NM Effect ive income t ax r at e, Adj ust ed/ Under lying H/ F 33.68 32.18 31.13 31.56 31.90 150 bps 178 bps 32.20 31.74 46 bps Return on average common equity and return on average common equity, Adjusted/Underlying: Aver age common equit y (GAAP) M $19,624 $19,728 $19,659 $19,460 $19,645 ($104) (1% ) ($21) — % $19,618 $19,698 ($80) — % Ret ur n on aver age common equit y K/ M 13.46 % 6.87 % 6.48 % 6.52 % 5.70 % 659 bps 776 bps 8.35 % 5.23 % 312 bps Ret ur n on aver age common equit y, Adj ust ed/ Under lying (non-GAAP) L/ M 7.05 6.87 6.48 6.05 5.70 18 bps 135 bps 6.62 5.14 148 bps Return on average tangible common equity and return on average tangible common equity, Adjusted/Underlying: Aver age common equit y (GAAP) M $19,624 $19,728 $19,659 $19,460 $19,645 ($104) (1% ) ($21) — % $19,618 $19,698 ($80) — % Less: Aver age goodwill (GAAP) 6,887 6,887 6,882 6,876 6,876 — — 11 — 6,883 6,876 7 — Less: Aver age ot her int angibles (GAAP) 2 2 2 — 1 — — 1 100 2 2 — — Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 531 537 534 531 523 (6) (1) 8 2 534 502 32 6 Aver age t angible common equit y N $13,266 $13,376 $13,309 $13,115 $13,291 ($110) (1% ) ($25) — % $13,267 $13,322 ($55) — % Ret ur n on aver age t angible common equit y K/ N 19.92 % 10.13 % 9.57 % 9.68 % 8.43 % 979 bps NM 12.35 % 7.74 % 461 bps Ret ur n on aver age t angible common equit y, Adj ust ed/ Under lying (non-GAAP) L/ N 10.43 10.13 9.57 8.98 8.43 30 bps 200 bps 9.79 7.60 219 bps Return on average total assets and return on average total assets, Adjusted/Underlying: Aver age t ot al asset s (GAAP) O $151,111 $150,012 $149,878 $148,786 $147,315 $1,099 1 % $3,796 3 % $149,953 $143,183 $6,770 5 % Ret ur n on aver age t ot al asset s I/ O 1.75 % 0.92 % 0.85 % 0.87 % 0.76 % 83 bps 99 bps 1.10 % 0.73 % 37 bps Ret ur n on aver age t ot al asset s, Adj ust ed/ Under lying (non-GAAP) J/ O 0.92 0.92 0.85 0.81 0.76 — bps 16 bps 0.88 0.72 16 bps Return on average total tangible assets and return on average total tangible assets, Adjusted/Underlying: Aver age t ot al asset s (GAAP) O $151,111 $150,012 $149,878 $148,786 $147,315 $1,099 1 % $3,796 3 % $149,953 $143,183 $6,770 5 % Less: Aver age goodwill (GAAP) 6,887 6,887 6,882 6,876 6,876 — — 11 — 6,883 6,876 7 — Less: Aver age ot her int angibles (GAAP) 2 2 2 — 1 — — 1 100 2 2 — — Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 531 537 534 531 523 (6) (1) 8 2 534 502 32 6 Aver age t angible asset s P $144,753 $143,660 $143,528 $142,441 $140,961 $1,093 1 % $3,792 3 % $143,602 $136,807 $6,795 5 % Ret ur n on aver age t ot al t angible asset s I/ P 1.83 % 0.96 % 0.89 % 0.91 % 0.79 % 87 bps 104 bps 1.15 % 0.76 % 39 bps Ret ur n on aver age t ot al t angible asset s, Adj ust ed/ Under lying (non-GAAP) J/ P 0.96 0.96 0.89 0.85 0.79 — bps 17 bps 0.91 0.75 16 bps 4Q17 Change 2017 Change 3Q17 4Q16 2016 QUARTERLY TRENDS FULL YEAR

Key performance metrics, Non-GAAP financial measures and reconciliations

41

$s in millions, except share, per share and rat io dat a

4Q17 3Q17 2Q17 1Q17 4Q16 2017 2016 $/bps % $/bps % $/bps % Tangible book value per common share: Common shar es - at end of per iod (GAAP) Q 490,812,912 499,505,285 505,880,851 509,515,646 511,954,871 (8,692,373) (2% ) (21,141,959) (4% ) 490,812,912 511,954,871 (21,141,959) (4% ) Common st ockholder s' equit y (GAAP) $20,023 $19,862 $19,817 $19,600 $19,499 $161 1 $524 3 $20,023 $19,499 $524 3 Less: Goodwill (GAAP) 6,887 6,887 6,887 6,876 6,876 — — 11 — 6,887 6,876 11 — Less: Ot her int angible asset s (GAAP) 2 2 2 — 1 — — 1 100 2 1 1 100 Add: Defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 355 539 535 534 532 (184) (34) (177) (33) 355 532 (177) (33) Tangible common equit y R $13,489 $13,512 $13,463 $13,258 $13,154 ($23) — % $335 3% $13,489 $13,154 $335 3% Tangible book value per common shar e R/ Q $27.48 $27.05 $26.61 $26.02 $25.69 $0.43 2 % $1.79 7 % $27.48 $25.69 $1.79 7 % Net income per average common share - basic and diluted, Adjusted/Underlying: Aver age common shar es out st anding - basic (GAAP) S 492,149,763 500,861,076 506,371,846 509,451,450 512,015,920 (8,711,313) (2% ) (19,866,157) (4% ) 502,157,440 522,093,545 (19,936,105) (4% ) Aver age common shar es out st anding - dilut ed (GAAP) T 493,788,007 502,157,384 507,414,122 511,348,200 513,897,085 (8,369,377) (2) (20,109,078) (4) 503,685,091 523,930,718 (20,245,627) (4) Net income available t o common st ockholder s (GAAP) K $666 $341 $318 $313 $282 $325 95 $384 136 $1,638 $1,031 $607 59 Net income per aver age common shar e - basic (GAAP) K/ S 1.35 0.68 0.63 0.61 0.55 0.67 99 0.80 145 3.26 1.97 1.29 65 Net income per aver age common shar e - dilut ed (GAAP) K/ T 1.35 0.68 0.63 0.61 0.55 0.67 99 0.80 145 3.25 1.97 1.28 65 Net income available t o common st ockholder s, Adj ust ed/ Under lying (non-GAAP) L 349 341 318 290 282 8 2 67 24 1,298 1,012 286 28 Net income per aver age common shar e - basic, Adj ust ed/ Under lying (non-GAAP) L/ S 0.71 0.68 0.63 0.57 0.55 0.03 4 0.16 29 2.59 1.94 0.65 34 Net income per aver age common shar e - dilut ed, Adj ust ed/ Under lying (non-GAAP) L/ T 0.71 0.68 0.63 0.57 0.55 0.03 4 0.16 29 2.58 1.93 0.65 34 Dividend payout ratio and divident payout ratio, Adjusted/Underlying Cash dividends declar ed and paid per common shar e U 0.18 0.18 0.14 0.14 0.12 — — 0.06 50 0.64 0.46 0.18 39 Dividend payout r at io U/ (K/ S ) 13 % 26 % 22 % 23 % 22 % NM (900) bps 20 % 23 % (300) bps Dividend payout r at io, Adj ust ed/ Under lying (non-GAAP) U/ (L/ S ) 25 26 22 25 22 (100) bps 300 bps 25 24 100 bps QUARTERLY TRENDS FULL YEAR 4Q17 Change 2017 Change 3Q17 4Q16 2016

Key performance metrics, Non-GAAP financial measures and reconciliations

42

$s in millions, except share, per share and rat io dat a

1 Per t he final t ransit ion provision rule issued by banking regulat ors on November 21, 2017, U.S

. Basel III rat io definit ions impact ing risk weight ed asset s and qualifying U.S . Basel III capit al will be fully phased-in as of January 1, 2018.

4Q17 3Q17 2Q17 1Q17 4Q16 2017 2016 $ % $ % $ % Other income, Adjusted/Underlying Ot her income (GAAP) $40 $18 $2 $24 $25 $22 122 % $15 60 % $84 $147 ($63) (43% ) Less: Not able it ems 17 — (11) — — 17 100 17 100 6 67 (61) (91) Ot her income, Adj ust ed/ Under lying (non-GAAP) $23 $18 $13 $24 $25 $5 28 % ($2) (8% ) $78 $80 ($2) (3% ) Salaries and employee benefits, Adjusted/Underlying: S alar ies and employee benefit s (GAAP) $449 $436 $432 $444 $420 $13 3 % $29 7 % $1,761 $1,709 $52 3 % Less: Not able it ems 17 — — — — 17 100 17 100 17 11 6 55 S alar ies and employee benefit s, Adj ust ed/ Under lying (non-GAAP) $432 $436 $432 $444 $420 ($4) (1% ) $12 3 % $1,744 $1,698 $46 3 % Outside services, Adjusted/Underlying: Out side ser vices (GAAP) $118 $99 $96 $91 $98 $19 19 % $20 20 % $404 $377 $27 7 % Less: Not able it ems 12 — — — — 12 100 12 100 12 8 4 50 Out side ser vices, Adj ust ed/ Under lying (non-GAAP) $106 $99 $96 $91 $98 $7 7 % $8 8 % $392 $369 $23 6 % Occupancy, Adjusted/Underlying: Occupancy (GAAP) $80 $78 $79 $82 $77 $2 3 % $3 4 % $319 $307 $12 4 % Less: Not able it ems — — — — — — — — — — — — — Occupancy, Adj ust ed/ Under lying (non-GAAP) $80 $78 $79 $82 $77 $2 3 % $3 4 % $319 $307 $12 4 % Equipment expense, Adjusted/Underlying: Equipment expense (GAAP) $67 $65 $64 $67 $69 $2 3 % ($2) (3% ) $263 $263 $— — % Less: Not able it ems — — — — — — — — — — — — — Equipment expense, Adj ust ed/ Under lying (non-GAAP) $67 $65 $64 $67 $69 $2 3 % ($2) (3% ) $263 $263 $— — % Amortization of softw are, Adjusted/Underlying: Amor t izat ion of soft war e (GAAP) $46 $45 $45 $44 $44 $1 2 % $2 5 % $180 $170 $10 6 % Less: Not able it ems — — — — — — — — — — 3 (3) (100) Amor t izat ion of soft war e, Adj ust ed/ Under lying (non-GAAP) $46 $45 $45 $44 $44 $1 2 % $2 5 % $180 $167 $13 8 % Other operating expense, Adjusted/Underlying: Ot her oper at ing expense (GAAP) $138 $135 $148 $126 $139 $3 2 % ($1) (1% ) $547 $526 $21 4 % Less: Not able it ems 11 — 15 — — 11 100 11 100 26 14 12 86 Ot her oper at ing expense, Adj ust ed/ Under lying (non-GAAP) $127 $135 $133 $126 $139 ($8) (6% ) ($12) (9% ) $521 $512 $9 2 % Pro forma U.S. Basel III fully phased-in common equity tier 1 capital ratio1: Common equit y t ier 1 capit al (r egulat or y) $14,164 $14,093 $14,057 $13,941 $13,822 Less: Change in DTA and ot her t hr eshold deduct ions (GAAP) — — — — — Pr o for ma Basel III fully phased-in common equit y t ier 1 capit al V $14,164 $14,093 $14,057 $13,941 $13,822 Risk-weight ed asset s (r egulat or y gener al r isk weight appr oach) $127,614 $127,203 $125,774 $124,881 $123,857 Add: Net change in cr edit and ot her r isk-weight ed asset s (r egulat or y) 297 251 249 247 244 Pr o for ma Basel III st andar dized appr oach r isk-weight ed asset s W $127,911 $127,454 $126,023 $125,128 $124,101 Pr o for ma Basel III fully phased-in common equit y t ier 1 capit al r at io1 V/ W 11.1 % 11.1 % 11.2 % 11.1 % 11.1 % QUARTERLY TRENDS FULL YEAR 4Q17 Change 2017 Change 3Q17 2016 4Q16

Key performance metrics, Non-GAAP financial measures and reconciliations - Segments

43

$s in millions, except rat io dat a

Consumer Banking Commercial Banking Other Consolidated Consumer Banking Commercial Banking Other Consolidated Consumer Banking Commercial Banking Other Consolidated Net income available to common stockholders: Net income (GAAP) A $117 $206 $343 $666 $122 $201 $25 $348 $118 $187 $13 $318 Less: Pr efer r ed st ock dividends — — — — — — 7 7 — — — — Net income available t o common st ockholder s B $117 $206 $343 $666 $122 $201 $18 $341 $118 $187 $13 $318 Return on average tangible common equity: Aver age common equit y (GAAP) $5,606 $5,756 $8,262 $19,624 $5,565 $5,685 $8,478 $19,728 $5,519 $5,617 $8,523 $19,659 Less: Aver age goodwill (GAAP) — — 6,887 6,887 — — 6,887 6,887 — — 6,882 6,882 Aver age ot her int angibles (GAAP) — — 2 2 — — 2 2 — — 2 2 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) — — 531 531 — — 537 537 — — 534 534 Aver age t angible common equit y C $5,606 $5,756 $1,904 $13,266 $5,565 $5,685 $2,126 $13,376 $5,519 $5,617 $2,173 $13,309 Ret ur n on aver age t angible common equit y B/ C 8.29 % 14.15 % NM 19.92 % 8.72 % 14.06 % NM 10.13 % 8.57 % 13.37 % NM 9.57 % Return on average total tangible assets: Aver age t ot al asset s (GAAP) $60,911 $50,169 $40,031 $151,111 $60,012 $49,833 $40,167 $150,012 $59,244 $49,731 $40,903 $149,878 Less: Aver age goodwill (GAAP) — — 6,887 6,887 — — 6,887 6,887 — — 6,882 6,882 Aver age ot her int angibles (GAAP) — — 2 2 — — 2 2 — — 2 2 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) — — 531 531 — — 537 537 — — 534 534 Aver age t angible asset s D $60,911 $50,169 $33,673 $144,753 $60,012 $49,833 $33,815 $143,660 $59,244 $49,731 $34,553 $143,528 Ret ur n on aver age t ot al t angible asset s A/ D 0.76 % 1.62 % NM 1.83 % 0.81 % 1.60 % NM 0.96 % 0.80 % 1.51 % NM 0.89 % Efficiency ratio: Nonint er est expense (GAAP) E $654 $195 $49 $898 $648 $195 $15 $858 $644 $192 $28 $864 Net int er est income (GAAP) 682 367 31 1,080 674 354 34 1,062 657 344 25 1,026 Nonint er est income (GAAP) 229 138 37 404 227 136 18 381 229 130 11 370 Tot al r evenue (GAAP) F $911 $505 $68 $1,484 $901 $490 $52 $1,443 $886 $474 $36 $1,396 Efficiency r at io E/ F 71.90 % 38.84 % NM 60.52 % 71.88 % 39.39 % NM 59.41 % 72.64 % 40.48 % NM 61.94 % SECOND QUARTER 2017 FOURTH QUARTER 2017 THIRD QUARTER 2017

Key performance metrics, Non-GAAP financial measures and reconciliations – Segments

44

$s in millions, except rat io dat a

Consumer Banking Commercial Banking Other Consolidated Consumer Banking Commercial Banking Other Consolidated Net income available to common stockholders: Net income (GAAP) A $95 $180 $45 $320 $92 $172 $18 $282 Less: Pr efer r ed st ock dividends — — 7 7 — — — — Net income available t o common st ockholder s B $95 $180 $38 $313 $92 $172 $18 $282 Return on average tangible common equity: Aver age common equit y (GAAP) $5,460 $5,528 $8,472 $19,460 $5,275 $5,278 $9,092 $19,645 Less: Aver age goodwill (GAAP) — — 6,876 6,876 — — 6,876 6,876 Aver age ot her int angibles (GAAP) — — — — — — 1 1 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) — — 531 531 — — 523 523 Aver age t angible common equit y C $5,460 $5,528 $2,127 $13,115 $5,275 $5,278 $2,738 $13,291 Ret ur n on aver age t angible common equit y B/ C 7.06 % 13.18 % NM 9.68 % 6.97 % 12.94 % NM 8.43 % Return on average total tangible assets: Aver age t ot al asset s (GAAP) $58,660 $49,243 $40,883 $148,786 $58,066 $48,024 $41,225 $147,315 Less: Aver age goodwill (GAAP) — — 6,876 6,876 — — 6,876 6,876 Aver age ot her int angibles (GAAP) — — — — — — 1 1 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) — — 531 531 — — 523 523 Aver age t angible asset s D $58,660 $49,243 $34,538 $142,441 $58,066 $48,024 $34,871 $140,961 Ret ur n on aver age t ot al t angible asset s A/ D 0.66 % 1.48 % NM 0.91 % 0.63 % 1.42 % NM 0.79 % Efficiency ratio: Nonint er est expense (GAAP) E $647 $190 $17 $854 $649 $187 $11 $847 Net int er est income (GAAP) 638 346 21 1,005 639 347 — 986 Nonint er est income (GAAP) 220 134 25 379 227 122 28 377 Tot al r evenue (GAAP) F $858 $480 $46 $1,384 $866 $469 $28 $1,363 Efficiency r at io E/ F 75.41 % 39.80 % NM 61.68 % 74.90 % 39.83 % NM 62.18 % FOURTH QUARTER 2016 FIRST QUARTER 2017

Key performance metrics, Non-GAAP financial measures and reconciliations – Segments

45

$s in millions, except rat io dat a

Consumer Banking Commercial Banking Other Consolidated Consumer Banking Commercial Banking Other Consolidated Net income available to common stockholders: Net income (GAAP) A $452 $774 $426 $1,652 $345 $631 $69 $1,045 Less: Pr efer r ed st ock dividends — — 14 14 — — 14 14 Net income available t o common st ockholder s B $452 $774 $412 $1,638 $345 $631 $55 $1,031 Return on average tangible common equity: Aver age common equit y (GAAP) $5,538 $5,647 $8,433 $19,618 $5,166 $5,071 $9,461 $19,698 Less: Aver age goodwill (GAAP) — — 6,883 6,883 — — 6,876 6,876 Aver age ot her int angibles (GAAP) — — 2 2 — — 2 2 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) — — 534 534 — — 502 502 Aver age t angible common equit y C $5,538 $5,647 $2,082 $13,267 $5,166 $5,071 $3,085 $13,322 Ret ur n on aver age t angible common equit y B/ C 8.17 % 13.70 % NM 12.35 % 6.68 % 12.44 % NM 7.74 % Return on average total tangible assets: Aver age t ot al asset s (GAAP) $59,714 $49,747 $40,492 $149,953 $56,388 $47,159 $39,636 $143,183 Less: Aver age goodwill (GAAP) — — 6,883 6,883 — — 6,876 6,876 Aver age ot her int angibles (GAAP) — — 2 2 — — 2 2 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) — — 534 534 — — 502 502 Aver age t angible asset s D $59,714 $49,747 $34,141 $143,602 $56,388 $47,159 $33,260 $136,807 Ret ur n on aver age t ot al t angible asset s A/ D 0.76 % 1.56 % NM 1.15 % 0.61 % 1.34 % NM 0.76 % Efficiency ratio: Nonint er est expense (GAAP) E $2,593 $772 $109 $3,474 $2,547 $741 $64 $3,352 Net int er est income (GAAP) 2,651 1,411 111 4,173 2,443 1,288 27 3,758 Nonint er est income (GAAP) 905 538 91 1,534 883 466 148 1,497 Tot al r evenue (GAAP) F $3,556 $1,949 $202 $5,707 $3,326 $1,754 $175 $5,255 Efficiency r at io E/ F 72.93 % 39.62 % NM 60.87 % 76.57 % 42.26 % NM 63.80 % FULL YEAR 2017 2016

Key performance metrics, Non-GAAP financial measures and reconciliations

46

$s in millions, except share, per share and rat io dat a

DEC.

• SEP. 30
• JUN. 30,
• MAR. 31,
• DEC. 31,
• SEP. 30,

JUNE 30,

• MAR. 31,

2017 2017 2017 2017 2016 2016 2016 2016 Total revenue, Adjusted/Underlying: Tot al r evenue (GAAP) A $1,484 $1,443 $1,396 $1,384 $1,363 $1,380 $1,278 $1,234 Less: S pecial it ems — — — — — — — — Less: Not able it ems 17 — (11) — — 67 — — Tot al r evenue, Adj ust ed/ Under lying (non-GAAP) B $1,467 $1,443 $1,407 $1,384 $1,363 $1,313 $1,278 $1,234 Noninterest expense, Adjusted/Underlying: Nonint er est expense (GAAP) C $898 $858 $864 $854 $847 $867 $827 $811 Less: Rest r uct ur ing char ges and special it ems — — — — — — — — Less: Not able it ems 40 — 15 — — 36 — — Nonint er est expense, Adj ust ed/ Under lying (non-GAAP) D $858 $858 $849 $854 $847 $831 $827 $811 Efficiency ratio and efficiency ratio, Adjusted/Underlying: Efficiency r at io C/ A 60.5 % 59.4 % 61.9 % 61.7 % 62.2 % 62.9 % 64.7 % 65.7 % Efficiency r at io, Adj ust ed/ Under lying (non-GAAP) D/ B 58.5 59.4 60.4 61.7 62.2 63.3 64.7 65.7 Net income, Adjusted/Underlying: Net income (GAAP) E $666 $348 $318 $320 $282 $297 $243 $223 Add: Rest r uct ur ing char ges and special it ems, net of income t ax expense (benefit ) — — — — — — — — Add: Not able it ems, net of income t ax expense (benefit ) (317) — — (23) — (19) — — Net income, Adj ust ed/ Under lying (non-GAAP) F $349 $348 $318 $297 $282 $278 $243 $223 Net income per average common share - diluted, and net income per average common share - diluted, Adjusted/Underlying Net income available t o common st ockholder s (GAAP) G $666 $341 $318 $313 $282 $290 $243 $216 Add: Rest r uct ur ing char ges and special it ems, net of income t ax expense (benefit ) — — — — — — — — Add: Not able it ems, net of income t ax expense (benefit ) (317) — — (23) — (19) — — Net income available t o common st ockholder s, Adj ust ed/ Under lying (non-GAAP) H $349 $341 $318 $290 $282 $271 $243 $216 Aver age common shar es out st anding - dilut ed (GAAP) P 493,788,007 502,157,384 507,414,122 511,348,200 513,897,085 521,122,466 530,365,203 530,446,188 Net income per aver age common shar e - dilut ed G/ P $1.35 $0.68 $0.63 $0.61 $0.55 $0.56 $0.46 $0.41 Net income per aver age common shar e - dilut ed, Adj ust ed/ Under lying (non-GAAP) H/ P 0.71 0.68 0.63 0.57 0.55 0.52 0.46 0.41 Return on average tangible common equity and return on average tangible common equity, Adjusted/Underlying: Aver age common equit y (GAAP) $19,624 $19,728 $19,659 $19,460 $19,645 $19,810 $19,768 $19,567 Less: Aver age goodwill (GAAP) 6,887 6,887 6,882 6,876 6,876 6,876 6,876 6,876 Less: Aver age ot her int angibles (GAAP) 2 2 2 — 1 1 2 3 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 531 537 534 531 523 509 496 481 Aver age t angible common equit y J $13,266 $13,376 $13,309 $13,115 $13,291 $13,442 $13,386 $13,169 Ret ur n on aver age t angible common equit y G/ J 19.92 % 10.13 % 9.57 % 9.68 % 8.43 % 8.58 % 7.30 % 6.61 % Ret ur n on aver age t angible common equit y, Adj ust ed/ Under lying (non-GAAP) H/ J 10.43 10.13 9.57 8.98 8.43 8.02 7.30 6.61 Return on average total tangible assets and return on average total tangible assets, Adjusted/Underlying: Aver age t ot al asset s (GAAP) K $151,111 $150,012 $149,878 $148,786 $147,315 $144,399 $142,179 $138,780 Less: Aver age goodwill (GAAP) 6,887 6,887 6,882 6,876 6,876 6,876 6,876 6,876 Less: Aver age ot her int angibles (GAAP) 2 2 2 — 1 1 2 3 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 531 537 534 531 523 509 496 481 Aver age t angible asset s L $144,753 $143,660 $143,528 $142,441 $140,961 $138,031 $135,797 $132,382 Ret ur n on aver age t ot al t angible asset s E/ L 1.83 % 0.96 % 0.89 % 0.91 % 0.79 % 0.86 % 0.72 % 0.68 % Ret ur n on aver age t ot al t angible asset s, Adj ust ed/ Under lying (non-GAAP) F/ L 0.96 0.96 0.89 0.85 0.79 0.80 0.72 0.68 Return on average total assets and return on average total assets, Adjusted/Underlying: Aver age t ot al asset s (GAAP) K $151,111 $150,012 $149,878 $148,786 $147,315 $144,399 $142,179 $138,780 Ret ur n on aver age t ot al asset s E/ K 1.75 % 0.92 % 0.85 % 0.87 % 0.76 % 0.82 % 0.69 % 0.65 % Ret ur n on aver age t ot al asset s, Adj ust ed/ Under lying (non-GAAP) F/ K 0.92 0.92 0.85 0.81 0.76 0.77 0.69 0.65 FOR THE THREE MONTHS ENDED

Key performance metrics, Non-GAAP financial measures and reconciliations

47

$s in millions, except share, per share and rat io dat a

• DEC. 31,
• SEP. 30,

JUNE 30,

• MAR. 31,
• DEC. 31,
• SEP. 30,

JUNE 30,

• MAR. 31,
• DEC. 31,
• SEP. 30,

2015 2015 2015 2015 2014 2014 2014 2014 2013 2013 Total revenue, Adjusted/Underlying: Tot al r evenue (GAAP) A $1,232 $1,209 $1,200 $1,183 $1,179 $1,161 $1,473 $1,166 $1,158 $1,153 Less: S pecial it ems — — — — — — 288 — — — Less: Not able it ems — — — — — — — — — — Tot al r evenue, Adj ust ed/ Under lying (non-GAAP) B $1,232 $1,209 $1,200 $1,183 $1,179 $1,161 $1,185 $1,166 $1,158 $1,153 Noninterest expense, Adjusted/Underlying: Nonint er est expense (GAAP) C $810 $798 $841 $810 $824 $810 $948 $810 $818 $788 Less: Rest r uct ur ing char ges and special it ems — — 40 10 33 21 115 — 26 — Less: Not able it ems — — — — — — — — — — Nonint er est expense, Adj ust ed/ Under lying (non-GAAP) D $810 $798 $801 $800 $791 $789 $833 $810 $792 $788 Efficiency ratio and efficiency ratio, Adjusted/Underlying: Efficiency r at io C/ A 65.8 % 66.0 % 70.0 % 68.5 % 69.9 % 69.8 % 64.3 % 69.4 % 70.6 % 68.5 % Efficiency r at io, Adj ust ed/ Under lying (non-GAAP) D/ B 65.8 66.0 66.7 67.7 67.1 68.0 70.2 69.4 68.4 68.5 Net income, Adjusted/Underlying: Net income (GAAP) E $221 $220 $190 $209 $197 $189 $313 $166 $152 $144 Add: Rest r uct ur ing char ges and special it ems, net of income t ax expense (benefit ) — — 25 6 20 13 (108) — 17 — Add: Not able it ems, net of income t ax expense (benefit ) — — — — — — — — — — Net income, Adj ust ed/ Under lying (non-GAAP) F $221 $220 $215 $215 $217 $202 $205 $166 $169 $144 Net income per average common share - diluted, and net income per average common share - diluted, Adjusted/Underlying Net income available t o common st ockholder s (GAAP) G $221 $213 $190 $209 $197 $189 $313 $166 $152 $144 Add: Rest r uct ur ing char ges and special it ems, net of income t ax expense (benefit ) — — 25 6 20 13 (108) — 17 — Add: Not able it ems, net of income t ax expense (benefit ) — — — — — — — — — — Net income available t o common st ockholder s, Adj ust ed/ Under lying (non-GAAP) H $221 $213 $215 $215 $217 $202 $205 $166 $169 $144 Aver age common shar es out st anding - dilut ed (GAAP) P 530,275,673 533,398,158 539,909,366 549,798,717 550,676,298 560,243,747 559,998,324 559,998,324 559,998,324 559,998,324 Net income per aver age common shar e - dilut ed G/ P $0.42 $0.40 $0.35 $0.38 $0.36 $0.34 $0.56 $0.30 $0.27 $0.26 Net income per aver age common shar e - dilut ed, Adj ust ed/ Under lying (non-GAAP) H/ P 0.42 0.40 0.40 0.39 0.39 0.36 0.37 0.30 0.30 0.26 Return on average tangible common equity and return on average tangible common equity, Adjusted/Underlying: Aver age common equit y (GAAP) $19,359 $19,261 $19,391 $19,407 $19,209 $19,411 $19,607 $19,370 $19,364 $19,627 Less: Aver age goodwill (GAAP) 6,876 6,876 6,876 6,876 6,876 6,876 6,876 6,876 6,876 6,876 Less: Aver age ot her int angibles (GAAP) 3 4 5 5 6 6 7 7 8 9 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 468 453 437 422 403 384 369 351 342 325 Aver age t angible common equit y J $12,948 $12,834 $12,947 $12,948 $12,730 $12,913 $13,093 $12,838 $12,822 $13,067 Ret ur n on aver age t angible common equit y G/ J 6.75 % 6.60 % 5.90 % 6.53 % 6.12 % 5.81 % 9.59 % 5.24 % 4.71 % 4.34 % Ret ur n on aver age t angible common equit y, Adj ust ed/ Under lying (non-GAAP) H/ J 6.75 6.60 6.67 6.73 6.76 6.22 6.28 5.24 5.24 4.34 Return on average total tangible assets and return on average total tangible assets, Adjusted/Underlying: Aver age t ot al asset s (GAAP) K $136,298 $135,103 $135,521 $133,325 $130,671 $128,691 $127,148 $123,904 $120,393 $117,386 Less: Aver age goodwill (GAAP) 6,876 6,876 6,876 6,876 6,876 6,876 6,876 6,876 6,876 6,876 Less: Aver age ot her int angibles (GAAP) 3 4 5 5 6 6 7 7 8 9 Add: Aver age defer r ed t ax liabilit ies r elat ed t o goodwill (GAAP) 468 453 437 422 403 384 369 351 342 325 Aver age t angible asset s L $129,887 $128,676 $129,077 $126,866 $124,192 $122,193 $120,634 $117,372 $113,851 $110,826 Ret ur n on aver age t ot al t angible asset s E/ L 0.67 % 0.68 % 0.59 % 0.67 % 0.63 % 0.61 % 1.04 % 0.57 % 0.53 % 0.52 % Ret ur n on aver age t ot al t angible asset s, Adj ust ed/ Under lying (non-GAAP) F/ L 0.67 0.68 0.67 0.69 0.69 0.66 0.68 0.57 0.59 0.52 Return on average total assets and return on average total assets, Adjusted/Underlying: Aver age t ot al asset s (GAAP) K $136,298 $135,103 $135,521 $133,325 $130,671 $128,691 $127,148 $123,904 $120,393 $117,386 Ret ur n on aver age t ot al asset s E/ K 0.64 % 0.65 % 0.56 % 0.63 % 0.60 % 0.58 % 0.99 % 0.54 % 0.50 % 0.49 % Ret ur n on aver age t ot al asset s, Adj ust ed/ Under lying (non-GAAP) F/ K 0.64 0.65 0.64 0.65 0.66 0.62 0.65 0.54 0.56 0.49 FOR THE THREE MONTHS ENDED

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