CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.1

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8-K - 8-K - CITIZENS FINANCIAL GROUP INC/RI	d48715d8k.htm

Exhibit 99.1

LOGO

Citizens Financial Group, Inc.

Financial Supplement

Second Quarter 2015


Table of Contents	Page

Consolidated Financial Highlights		3

Consolidated Statements of Operations (unaudited)		5

Consolidated Balance Sheets (unaudited)		6

Loans and Deposits		7

Average Balance Sheets and Annualized Yields		8

Segment Financial Highlights		10

Credit-Related Information
Credit Exposure		21
Nonperforming Assets		22
Charge-offs, Recoveries and Related Ratios		23
Summary of Changes in the Allowances		25
Allowance Components		26

Capital and Ratios		27

Per-Share Related Information		28
Non-GAAP Financial Measures and Reconciliations		29
Forward-Looking Statements		36

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS																								FOR THE SIX MONTHS ENDED JUNE 30,
													2Q15 Change																	2015 Change
	2Q15			1Q15		4Q14		3Q14			2Q14		1Q15						2Q14						2015			2014		2014
													$			%			$			%								$			%
SELECTED OPERATING DATA
Total revenue	$	1,200		$	1,183	$	1,179	$	1,161		$	1,473	$	17			1	%	($	273	)		(19	%)	$	2,383		$	2,639	($	256	)		(10	%)
Noninterest expense		841			810		824		810			948		31			4			(107	)		(11	)		1,651			1,758		(107	)		(6	)

Profit before provision for credit losses		359			373		355		351			525		(14	)		(4	)		(166	)		(32	)		732			881		(149	)		(17	)
Provision for credit losses		77			58		72		77			49		19			33			28			57			135			170		(35	)		(21	)
NET INCOME		190			209		197		189			313		(19	)		(9	)		(123	)		(39	)		399			479		(80	)		(17	)
Net income, excluding restructuring charges and special items¹		215			215		217		202			205		—			—			10			5			430			371		59			16
PER COMMON SHARE DATA
Basic earnings	$	0.35		$	0.38	$	0.36	$	0.34		$	0.56	($	0.03	)		(8	%)	($	0.21	)		(38	%)	$	0.74		$	0.86	($	0.12	)		(14	%)
Diluted earnings		0.35			0.38		0.36		0.34			0.56		(0.03	)		(8	)		(0.21	)		(38	)		0.73			0.86		(0.13	)		(15	)
Basic earnings, excluding restructuring charges and special items¹		0.40			0.39		0.40		0.36			0.37		0.01			3			0.03			8			0.79			0.66		0.13			20
Diluted earnings, excluding restructuring charges and special items¹		0.40			0.39		0.39		0.36			0.37		0.01			3			0.03			8			0.79			0.66		0.13			20
Cash dividends declared and paid per share		0.10			0.10		0.10		0.68			0.61		—			—			(0.51	)		(84	)		0.20			0.66		(0.46	)		(70	)
Book value		36.00			35.73		35.30		34.61			35.00		0.27			1			1.00			3			36.00			35.00		1.00			3
Tangible book value¹		24.03			23.96		23.46		23.04			23.39		0.07			—			0.64			3			24.03			23.39		0.64			3
COMMON SHARES OUTSTANDING
Average: Basic		537,729,248			546,291,363		546,810,009		559,998,324			559,998,324		(8,562,115	)		(2	%)		(22,269,076	)		(4	%)		541,986,653			559,998,324		(18,011,671	)		(3	%)
Diluted		539,909,366			549,798,717		550,676,298		560,243,747			559,998,324		(9,889,351	)		(2	)		(20,088,958	)		(4	)		544,804,268			559,998,324		(15,194,056	)		(3	)
Common shares at period-end		537,149,717			547,490,812		545,884,519		559,998,324			559,998,324		(10,341,095	)		(2	)		(22,848,607	)		(4	)		537,149,717			559,998,324		(22,848,607	)		(4	)
Closing share price	$	27.31		$	24.13	$	24.86	$	23.42		$	—	$	3.18			13			NM			—		$	27.31		$	—		NM			—
Market capitalization		14,670			13,211		13,571		13,115			—		1,459			11			NM			—			14,670			—		NM			—
SEGMENT NET INCOME
Consumer Banking	$	66		$	61	$	52	$	54		$	44	$	5			8	%	$	22			50	%	$	127		$	76	$	51			67	%
Commercial Banking		135			147		140		139			141		(12	)		(8	)		(6	)		(4	)		282			282		—			—
Other		(11	)		1		5		(4	)		128		(12	)		NM			(139	)		(109	)		(10	)		121		(131	)		(108	)

NET INCOME	$	190		$	209	$	197	$	189		$	313	($	19	)		(9	%)	($	123	)		(39	%)	$	399		$	479	($	80	)		(17	%)

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change																		2015 Change
	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
FINANCIAL RATIOS
Net interest margin		2.72	%		2.77	%		2.80	%		2.77	%		2.87	%		(5	) bps		—			(15	) bps		—			2.74	%		2.88	%		(14	) bps		—
Return on average common equity		3.94			4.36			4.06			3.87			6.41			(42	) bps		—			(247	) bps		—			4.15			4.96			(81	) bps		—
Return on average common equity, excluding restructuring charges and special items¹		4.45			4.49			4.48			4.14			4.19			(4	) bps		—			26	bps		—			4.47			3.84			63	bps		—
Return on average tangible common equity¹		5.90			6.53			6.12			5.81			9.59			(63	) bps		—			(369	) bps		—			6.21			7.45			(124	) bps		—
Return on average tangible common equity, excluding restructuring charges and special items¹		6.67			6.73			6.76			6.22			6.28			(6	) bps		—			39	bps		—			6.70			5.77			93	bps		—
Return on average total assets		0.56			0.63			0.60			0.58			0.99			(7	) bps		—			(43	) bps		—			0.60			0.77			(17	) bps		—
Return on average total assets, excluding restructuring charges and special items¹		0.64			0.65			0.66			0.62			0.65			(1	) bps		—			(1	) bps		—			0.65			0.60			5	bps		—
Return on average total tangible assets¹		0.59			0.67			0.63			0.61			1.04			(8	) bps		—			(45	) bps		—			0.63			0.81			(18	) bps		—
Return on average total tangible assets, excluding restructuring charges and special items¹		0.67			0.69			0.69			0.66			0.68			(2	) bps		—			(1	) bps		—			0.68			0.63			5	bps		—
Effective income tax rate		32.69			33.68			30.56			30.81			34.27			(99	) bps		—			(158	) bps		—			33.21			32.67			54	bps		—
Efficiency ratio¹		70.02			68.49			69.88			69.84			64.33			153	bps		—			569	bps		—			69.27			66.58			269	bps		—
Efficiency ratio, excluding restructuring charges and special items¹		66.70			67.65			67.11			68.02			70.23			(95	) bps		—			(353	) bps		—			67.17			69.83			(266	) bps		—
CAPITAL RATIOS - PERIOD END (PRELIMINARY)²
CET1 capital ratio³		11.8	%		12.2	%		12.4	%		12.9	%		13.3	%
Tier 1 capital ratio		12.1			12.2			12.4			12.9			13.3
Total capital ratio		15.3			15.5			15.8			16.1			16.2
Tier 1 leverage ratio		10.4			10.5			10.6			10.9			11.1
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	137,251		$	136,535		$	132,857		$	131,341		$	130,279		$	716			1	%	$	6,972			5	%	$	137,251		$	130,279		$	6,972			5	%
Loans and leases:
Commercial		45,068			43,982			43,226			41,470			40,974			1,086			2			4,094			10			45,068			40,974			4,094			10
Retail		51,470			50,512			50,184			49,279			47,855			958			2			3,615			8			51,470			47,855			3,615			8

Total loans and leases		96,538			94,494			93,410			90,749			88,829			2,044			2			7,709			9			96,538			88,829			7,709			9
Deposits	$	100,615		$	98,990		$	95,707		$	93,463		$	91,656		$	1,625			2		$	8,959			10		$	100,615		$	91,656		$	8,959			10
Long-term borrowed funds		3,890			3,904			4,642			2,062			1,732			(14	)		—			2,158			125			3,890			1,732			2,158			125
Total stockholders’ equity		19,586			19,564			19,268			19,383			19,597			22			—			(11	)		—			19,586			19,597			(11	)		—
Loans-to-deposits ratio (period-end balances)⁴		96.64	%		95.84	%		97.89	%		97.32	%		97.20	%		80	bps		—			(56	) bps		—			96.64	%		97.20	%		(56	) bps		—
Loans-to-deposits ratio (average balances)⁴		97.49			98.58			97.34			98.01			96.77			(109	) bps		—			72	bps		—			98.02			96.21			181	bps		—
Full-time equivalent employees		17,903			17,792			17,677			17,852			18,049			111			1			(146	)		(1	)		17,903			18,049			(146	)		(1	)

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

Basel III transitional rules for institutions applying the standardized approach to calculating risk-weighted assets became effective January 1, 2015. The capital ratios and associated components as of June 30, 2015 and March 31, 2015 are prepared using the Basel III standardized transitional approach. The capital ratios and associated components for periods December 31, 2014 and prior are prepared under the Basel I general capital rule.

³	Common equity tier 1 (“CET1”) capital under Basel III replaced tier 1 common capital under Basel I effective January 1, 2015.

⁴	Ratios include both loans and leases held for sale and deposits held for sale.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)


	QUARTERLY TRENDS																						FOR THE SIX MONTHS ENDED JUNE 30,
											2Q15 Change																2015 Change
	2Q15		1Q15		4Q14		3Q14		2Q14		1Q15						2Q14						2015		2014		2014
											$			%			$			%							$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	790	$	779	$	777	$	754	$	751	$	11			1	%	$	39			5	%	$	1,569	$	1,481	$	88			6	%
Interest and fees on loans held for sale		2		1		1		2		1		1			100			1			100			3		2		1			50
Interest and fees on other loans held for sale		4		2		1		—		10		2			100			(6	)		(60	)		6		22		(16	)		(73	)
Investment securities		155		159		161		155		154		(4	)		(3	)		1			1			314		303		11			4
Interest-bearing deposits in banks		1		1		1		2		1		—			—			—			—			2		2		—			—

Total interest income		952		942		941		913		917		10			1			35			4			1,894		1,810		84			5

INTEREST EXPENSE:
Deposits		60		52		48		41		34		8			15			26			76			112		67		45			67
Deposits held for sale		—		—		—		—		2		—			—			(2	)		(100	)		—		4		(4	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase		2		7		7		9		1		(5	)		(71	)		1			100			9		16		(7	)		(44	)
Other short-term borrowed funds		19		15		19		21		30		4			27			(11	)		(37	)		34		49		(15	)		(31	)
Long-term borrowed funds		31		32		27		22		17		(1	)		(3	)		14			82			63		33		30			91

Total interest expense		112		106		101		93		84		6			6			28			33			218		169		49			29

Net interest income		840		836		840		820		833		4			—			7			1			1,676		1,641		35			2

NONINTEREST INCOME:
Service charges and fees		139		135		144		144		147		4			3			(8	)		(5	)		274		286		(12	)		(4	)
Card fees		60		52		58		58		61		8			15			(1	)		(2	)		112		117		(5	)		(4	)
Trust and investment services fees		41		36		38		39		42		5			14			(1	)		(2	)		77		81		(4	)		(5	)
Mortgage banking fees		30		33		16		21		14		(3	)		(9	)		16			114			63		34		29			85
Capital markets fees		30		22		25		22		26		8			36			4			15			52		44		8			18
Foreign exchange and trade finance fees		22		23		25		26		22		(1	)		(4	)		—			—			45		44		1			2
Bank-owned life insurance income		14		12		13		13		12		2			17			2			17			26		23		3			13
Securities gains, net		9		8		1		2		—		1			13			9			—			17		25		(8	)		(32	)
Other income		15		26		19		16		316		(11	)		(42	)		(301	)		(95	)		41		344		(303	)		(88	)

Total noninterest income		360		347		339		341		640		13			4			(280	)		(44	)		707		998		(291	)		(29	)

TOTAL REVENUE		1,200		1,183		1,179		1,161		1,473		17			1			(273	)		(19	)		2,383		2,639		(256	)		(10	)
Provision for credit losses		77		58		72		77		49		19			33			28			57			135		170		(35	)		(21	)
NONINTEREST EXPENSE:
Salaries and employee benefits		411		419		397		409		467		(8	)		(2	)		(56	)		(12	)		830		872		(42	)		(5	)
Outside services		99		79		106		106		125		20			25			(26	)		(21	)		178		208		(30	)		(14	)
Occupancy		90		80		81		77		87		10			13			3			3			170		168		2			1
Equipment expense		65		63		63		58		65		2			3			—			—			128		129		(1	)		(1	)
Amortization of software		37		36		43		38		33		1			3			4			12			73		64		9			14
Other operating expense		139		133		134		122		171		6			5			(32	)		(19	)		272		317		(45	)		(14	)

Total noninterest expense		841		810		824		810		948		31			4			(107	)		(11	)		1,651		1,758		(107	)		(6	)

Income before income tax expense		282		315		283		274		476		(33	)		(10	)		(194	)		(41	)		597		711		(114	)		(16	)
Income tax expense		92		106		86		85		163		(14	)		(13	)		(71	)		(44	)		198		232		(34	)		(15	)

NET INCOME	$	190	$	209	$	197	$	189	$	313	($	19	)		(9	%)	($	123	)		(39	%)	$	399	$	479	($	80	)		(17	%)

Net income, excluding restructuring charges and special items¹	$	215	$	215	$	217	$	202	$	205	$	—			—	%	$	10			5	%	$	430	$	371	$	59			16	%

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)

PERIOD END BALANCES


	AS OF															JUNE 30, 2015 CHANGE
	June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2014			Mar 31, 2015						June 30, 2014
																$			%			$			%
ASSETS:
Cash and due from banks	$	961		$	954		$	1,171		$	993		$	1,038		$	7			1	%	($	77	)		(7	%)
Interest-bearing cash and due from banks		1,908			4,050			2,105			1,896			4,318			(2,142	)		(53	)		(2,410	)		(56	)
Interest-bearing deposits in banks		186			615			370			292			309			(429	)		(70	)		(123	)		(40	)
Securities available for sale, at fair value		18,662			19,041			18,656			18,666			18,493			(379	)		(2	)		169			1
Securities held to maturity		5,567			5,178			5,148			5,289			5,382			389			8			185			3
Other investment securities		866			867			872			893			948			(1	)		—			(82	)		(9	)
Loans held for sale, at fair value		397			322			256			205			173			75			23			224			129
Other loans held for sale		300			54			25			3			89			246			456			211			237
Loans and leases		96,538			94,494			93,410			90,749			88,829			2,044			2			7,709			9
Less: Allowance for loan and lease losses		(1,201	)		(1,202	)		(1,195	)		(1,201	)		(1,210	)		1			—			9			1

Net loans and leases		95,337			93,292			92,215			89,548			87,619			2,045			2			7,718			9
Derivative assets		665			742			629			547			635			(77	)		(10	)		30			5
Premises and equipment		580			584			595			541			560			(4	)		(1	)		20			4
Bank-owned life insurance		1,543			1,535			1,527			1,370			1,361			8			1			182			13
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		939			—			—			2,067			—			939			—			939			—
Other assets		2,464			2,425			2,412			2,155			2,478			39			2			(14	)		(1	)

TOTAL ASSETS	$	137,251		$	136,535		$	132,857		$	131,341		$	130,279		$	716			1	%	$	6,972			5	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	26,678		$	26,670		$	26,086		$	25,877		$	26,670		$	8			—	%	$	8			—	%
Interest-bearing		73,937			72,320			69,621			67,586			64,986			1,617			2			8,951			14

Total deposits		100,615			98,990			95,707			93,463			91,656			1,625			2			8,959			10
Federal funds purchased and securities sold under agreements to repurchase		3,784			4,421			4,276			5,184			6,807			(637	)		(14	)		(3,023	)		(44	)
Other short-term borrowed funds		6,762			7,004			6,253			6,715			7,702			(242	)		(3	)		(940	)		(12	)
Derivative liabilities		556			616			612			638			747			(60	)		(10	)		(191	)		(26	)
Deferred taxes, net		558			586			493			354			403			(28	)		(5	)		155			38
Long-term borrowed funds		3,890			3,904			4,642			2,062			1,732			(14	)		—			2,158			125
Due to broker		—			61			—			2,087			—			(61	)		(100	)		—			—
Other liabilities		1,500			1,389			1,606			1,455			1,635			111			8			(135	)		(8	)

TOTAL LIABILITIES		117,665			116,971			113,589			111,958			110,682			694			1			6,983			6
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized		247			—			—			—			—			—			—			—			—
Common stock:
$0.01 par value, 1,000,000,000 shares authorized for each of the periods presented		6			6			6			6			6			—			—			—			—
Additional paid-in capital		18,714			18,707			18,676			18,660			18,603			7			—			111			1
Retained earnings		1,585			1,448			1,294			1,152			1,346			137			9			239			18
Treasury stock, at cost		(607	)		(357	)		(336	)		—			—			(250	)		(70	)		(607	)		—
Accumulated other comprehensive loss		(359	)		(240	)		(372	)		(435	)		(358	)		(119	)		(50	)		(1	)		—

TOTAL STOCKHOLDERS’ EQUITY		19,586			19,564			19,268			19,383			19,597			22			—			(11	)		—

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	137,251		$	136,535		$	132,857		$	131,341		$	130,279		$	716			1	%	$	6,972			5	%

Memo: Total tangible common equity¹	$	12,909		$	13,117		$	12,806		$	12,900		$	13,098		($	208	)		(2	%)	($	189	)		(1	%)

¹	This is a non-GAAP financial measure. For further information on this measure, refer to page 30.

LOANS AND DEPOSITS

(dollars in millions)

PERIOD END BALANCES


	AS OF										JUNE 30, 2015 CHANGE
	June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2015						June 30, 2014
											$			%			$			%
LOANS AND LEASES:
Commercial	$	33,027	$	32,249	$	31,431	$	30,356	$	30,076	$	778			2	%	$	2,951			10	%
Commercial real estate		8,157		7,863		7,809		7,239		7,158		294			4			999			14
Leases		3,884		3,870		3,986		3,875		3,740		14			—			144			4

Total commercial		45,068		43,982		43,226		41,470		40,974		1,086			2			4,094			10

Residential mortgages		12,253		11,808		11,832		11,265		10,640		445			4			1,613			15
Home equity loans		3,022		3,212		3,424		3,635		3,858		(190	)		(6	)		(836	)		(22	)
Home equity lines of credit		14,917		15,127		15,423		15,558		15,618		(210	)		(1	)		(701	)		(4	)
Home equity loans serviced by others¹		1,126		1,192		1,228		1,290		1,358		(66	)		(6	)		(232	)		(17	)
Home equity lines of credit serviced by others¹		494		544		550		580		614		(50	)		(9	)		(120	)		(20	)
Automobile		13,727		13,179		12,706		12,080		10,974		548			4			2,753			25
Student		3,355		2,852		2,256		2,069		1,941		503			18			1,414			73
Credit card		1,613		1,588		1,693		1,676		1,646		25			2			(33	)		(2	)
Other retail		963		1,010		1,072		1,126		1,206		(47	)		(5	)		(243	)		(20	)

Total retail		51,470		50,512		50,184		49,279		47,855		958			2			3,615			8

Total loans and leases	$	96,538	$	94,494	$	93,410	$	90,749	$	88,829	$	2,044			2	%	$	7,709			9	%

Loans held for sale, at fair value	$	397	$	322	$	256	$	205	$	173	$	75			23	%	$	224			129	%
Other loans held for sale		300		54		25		3		89		246			456			211			237
DEPOSITS:
Demand	$	26,678	$	26,670	$	26,086	$	25,877	$	26,670	$	8			—	%	$	8			—	%
Checking with interest		17,114		16,738		16,394		15,449		15,171		376			2			1,943			13
Regular savings		8,080		8,398		7,824		7,655		7,829		(318	)		(4	)		251			3
Money market accounts		35,735		34,543		33,345		32,870		31,687		1,192			3			4,048			13
Term deposits		13,008		12,641		12,058		11,612		10,299		367			3			2,709			26

Total deposits	$	100,615	$	98,990	$	95,707	$	93,463	$	91,656	$	1,625			2		$	8,959			10

¹	Our Serviced by Others (“SBO”) portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)

AVERAGE BALANCES


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change																		2015 Change
	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	2,054		$	2,092		$	1,784		$	2,685		$	2,211		($	38	)		(2	%)	($	157	)		(7	%)	$	2,073		$	1,991		$	82			4	%

Taxable investment securities		25,081			24,955			24,658			24,648			24,579			126			1			502			2			25,019			23,980			1,039			4
Non-taxable investment securities		10			10			10			10			11			—			—			(1	)		(9	)		10			11			(1	)		(9	)

Total investment securities		25,091			24,965			24,668			24,658			24,590			126			1			501			2			25,029			23,991			1,038			4

Investment securities and interest-bearing deposits		27,145			27,057			26,452			27,343			26,801			88			—			344			1			27,102			25,982			1,120			4

Commercial		32,855			31,911			30,962			30,186			29,674			944			3			3,181			11			32,386			29,402			2,984			10
Commercial real estate		7,947			7,700			7,427			7,216			7,082			247			3			865			12			7,824			6,991			833			12
Leases		3,894			3,895			3,874			3,789			3,716			(1	)		—			178			5			3,895			3,720			175			5

Total commercial		44,696			43,506			42,263			41,191			40,472			1,190			3			4,224			10			44,105			40,113			3,992			10

Residential mortgages		11,980			11,855			11,647			11,001			10,355			125			1			1,625			16			11,918			10,125			1,793			18
Home equity loans		3,138			3,332			3,527			3,743			4,015			(194	)		(6	)		(877	)		(22	)		3,234			4,123			(889	)		(22	)
Home equity lines of credit		15,084			15,310			15,490			15,572			15,563			(226	)		(1	)		(479	)		(3	)		15,196			15,573			(377	)		(2	)
Home equity loans serviced by others¹		1,134			1,193			1,252			1,317			1,388			(59	)		(5	)		(254	)		(18	)		1,164			1,420			(256	)		(18	)
Home equity lines of credit serviced by others¹		469			522			561			591			627			(53	)		(10	)		(158	)		(25	)		495			643			(148	)		(23	)
Automobile		13,484			12,933			12,403			11,438			10,528			551			4			2,956			28			13,210			10,087			3,123			31
Student		3,029			2,623			2,142			1,983			2,209			406			15			820			37			2,827			2,235			592			26
Credit cards		1,606			1,637			1,663			1,661			1,647			(31	)		(2	)		(41	)		(2	)		1,621			1,639			(18	)		(1	)
Other retail		986			1,041			1,097			1,153			1,215			(55	)		(5	)		(229	)		(19	)		1,013			1,247			(234	)		(19	)

Total retail		50,910			50,446			49,782			48,459			47,547			464			1			3,363			7			50,678			47,092			3,586			8

Total loans and leases		95,606			93,952			92,045			89,650			88,019			1,654			2			7,587			9			94,783			87,205			7,578			9
Loans held for sale, at fair value		308			242			213			176			138			66			27			170			123			275			133			142			107
Other loans held for sale		146			91			20			27			1,034			55			60			(888	)		(86	)		119			1,062			(943	)		(89	)

Interest-earning assets		123,205			121,342			118,730			117,196			115,992			1,863			2			7,213			6			122,279			114,382			7,897			7
Allowance for loan and lease losses		(1,198	)		(1,192	)		(1,195	)		(1,202	)		(1,286	)		(6	)		(1	)		88			7			(1,195	)		(1,262	)		67			5
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Other noninterest-earning assets		6,638			6,299			6,260			5,821			5,566			339			5			1,072			19			6,469			5,539			930			17

Total noninterest-earning assets		12,316			11,983			11,941			11,495			11,156			333			3			1,160			10			12,150			11,153			997			9

TOTAL ASSETS	$	135,521		$	133,325		$	130,671		$	128,691		$	127,148		$	2,196			2	%	$	8,373			7	%	$	134,429		$	125,535		$	8,894			7	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	16,561		$	16,039		$	15,718		$	15,155		$	13,805		$	522			3	%	$	2,756			20	%	$	16,302		$	13,562		$	2,740			20	%
Money market and savings		42,977			41,666			40,856			40,096			38,418			1,311			3			4,559			12			42,325			38,667			3,658			9
Term deposits		12,576			12,184			11,892			10,596			9,416			392			3			3,160			34			12,381			9,376			3,005			32

Total interest-bearing deposits		72,114			69,889			68,466			65,847			61,639			2,225			3			10,475			17			71,008			61,605			9,403			15
Interest-bearing deposits held for sale		—			—			—			—			3,675			—			—			(3,675	)		(100	)		—			3,953			(3,953	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase²		4,372			4,607			5,075			6,305			5,709			(235	)		(5	)		(1,337	)		(23	)		4,489			5,708			(1,219	)		(21	)
Other short-term borrowed funds		6,498			6,969			6,119			6,740			6,027			(471	)		(7	)		471			8			6,732			4,838			1,894			39
Long-term borrowed funds		3,902			3,930			2,834			1,951			1,419			(28	)		(1	)		2,483			175			3,916			1,412			2,504			177

Total borrowed funds		14,772			15,506			14,028			14,996			13,155			(734	)		(5	)		1,617			12			15,137			11,958			3,179			27

Total interest-bearing liabilities		86,886			85,395			82,494			80,843			78,469			1,491			2			8,417			11			86,145			77,516			8,629			11
Total demand deposits		26,419			25,756			26,331			25,829			25,984			663			3			435			2			26,089			25,393			696			3
Demand deposits held for sale		—			—			—			—			868			—			—			(868	)		(100	)		—			932			(932	)		(100	)
Other liabilities		2,592			2,767			2,637			2,608			2,220			(175	)		(6	)		372			17			2,679			2,205			474			21

TOTAL LIABILITIES		115,897			113,918			111,462			109,280			107,541			1,979			2			8,356			8			114,913			106,046			8,867			8

STOCKHOLDERS’ EQUITY		19,624			19,407			19,209			19,411			19,607			217			1			17			—			19,516			19,489			27			—

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	135,521		$	133,325		$	130,671		$	128,691		$	127,148		$	2,196			2	%	$	8,373			7	%	$	134,429		$	125,535		$	8,894			7	%

Memo: Total average tangible common equity³	$	12,947		$	12,948		$	12,730		$	12,913		$	13,093		($	1	)		—	%	($	146	)		(1	%)	$	12,948		$	12,966		($	18	)		—	%

Total deposits (interest-bearing and demand)	$	98,533		$	95,645		$	94,797		$	91,676		$	92,166		$	2,888			3	%	$	6,367			7	%	$	97,097		$	91,883		$	5,214			6	%

¹	Our SBO portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

²	Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

³	This is a non-GAAP financial measure. For further information on this measure, refer to page 30.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS																									FOR THE SIX MONTHS ENDED JUNE 30,
	2Q15					1Q15					4Q14					3Q14					2Q14					2015					2014
AVERAGE ANNUALIZED YIELDS & RATES	Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense
INTEREST-EARNING ASSETS:
Interest-bearing deposits in banks		0.22	%	$	1		0.19	%	$	1		0.20	%	$	1		0.23	%	$	2		0.23	%	$	1		0.20	%	$	2		0.23	%	$	2

Taxable investment securities		2.47			155		2.55			159		2.61			161		2.51			155		2.51			154		2.51			314		2.53			303
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.59			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.47			155		2.55			159		2.61			161		2.51			155		2.51			154		2.51			314		2.53			303

Investment securities and interest-bearing deposits					156					160					162					157					155					316					305

Commercial		2.83			235		2.84			226		2.90			229		2.89			223		3.05			229		2.83			461		3.03			447
Commercial real estate		2.55			51		2.59			50		2.55			48		2.46			46		2.49			45		2.57			101		2.53			89
Leases		2.56			25		2.53			25		2.65			26		2.68			25		2.74			25		2.55			50		2.79			52

Total commercial		2.75			311		2.77			301		2.82			303		2.80			294		2.95			299		2.76			612		2.92			588

Residential mortgages		3.76			113		3.79			112		3.88			113		3.92			108		4.08			106		3.77			225		4.03			204
Home equity loans		5.43			42		5.40			44		5.31			47		5.31			50		5.31			53		5.41			87		5.27			108
Home equity lines of credit		2.94			110		2.94			111		2.94			114		2.90			113		2.85			111		2.94			221		2.86			220
Home equity loans serviced by others¹		7.04			20		7.09			21		6.88			22		6.64			22		6.72			23		7.06			41		6.75			48
Home equity lines of credit serviced by others¹		2.56			3		2.58			3		2.70			4		2.62			4		2.74			4		2.57			6		2.70			9
Automobile		2.68			90		2.78			89		2.64			83		2.57			74		2.54			67		2.73			179		2.51			126
Student		5.05			38		5.13			33		5.07			27		4.99			25		4.51			25		5.09			71		4.47			50
Credit cards		10.92			44		11.10			45		10.28			43		9.99			42		9.92			41		11.01			88		10.13			82
Other retail		7.61			19		7.59			20		7.49			21		7.46			22		7.46			22		7.60			39		7.41			46

Total retail		3.77			479		3.83			478		3.79			474		3.78			460		3.81			452		3.80			957		3.82			893

Total loans and leases		3.30			790		3.34			779		3.34			777		3.33			754		3.40			751		3.32			1,569		3.40			1,481
Loans held for sale, at fair value		2.47			2		2.33			1		2.68			1		3.46			2		3.40			1		2.41			3		3.35			2
Other loans held for sale		9.63			4		9.37			2		12.94			1		5.44			—		3.90			10		9.53			6		4.06			22

Total interest-earning assets		3.08			952		3.12			942		3.14			941		3.08			913		3.16			917		3.10			1,894		3.17			1,810
INTEREST-BEARING LIABILITIES:
Checking with interest		0.11			5		0.11			4		0.11			4		0.09			4		0.06			2		0.11			9		0.06			4
Money market and savings		0.27			29		0.25			25		0.22			23		0.21			21		0.17			16		0.26			54		0.17			33
Term deposits		0.81			26		0.78			23		0.70			21		0.61			16		0.67			16		0.79			49		0.64			30

Total interest-bearing deposits		0.33			60		0.31			52		0.28			48		0.25			41		0.22			34		0.32			112		0.22			67
Interest-bearing deposits held for sale		—			—		—			—		—			—		—			—		0.21			2		—			—		0.22			4
Federal funds purchased and securities sold under agreements to repurchase²		0.22			2		0.60			7		0.54			7		0.54			9		0.09			1		0.41			9		0.55			16
Other short-term borrowed funds		1.18			19		0.83			15		1.23			19		1.21			21		2.00			30		1.00			34		2.03			49
Long-term borrowed funds		3.16			31		3.27			32		3.83			27		4.39			22		4.63			17		3.21			63		4.60			33

Total borrowed funds		1.42			52		1.38			54		1.51			53		1.34			52		1.46			48		1.40			106		1.63			98

Total interest-bearing liabilities		0.52			112		0.50			106		0.49			101		0.45			93		0.43			84		0.51			218		0.43			169
INTEREST RATE SPREAD		2.56	%				2.62	%				2.65	%				2.63	%				2.73	%				2.59	%				2.74	%
NET INTEREST MARGIN		2.72					2.77					2.80					2.77					2.87					2.74					2.88
Memo: Total deposit costs		0.24			60		0.22			52		0.20			48		0.18			41		0.15			36		0.23			112		0.16			71

¹	Our SBO portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

²	Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING

(dollars in millions, except ratios)


	SECOND QUARTER 2015												FIRST QUARTER 2015												CHANGE
																									2Q15 from 1Q15
	Consumer			Commercial									Consumer			Commercial
	Banking			Banking			Other¹			Consolidated			Banking			Banking			Other¹			Consolidated			$			%
Net interest income	$	544		$	286		$	10		$	840		$	533		$	276		$	27		$	836		$	4			—	%
Noninterest income		230			108			22			360			219			100			28			347			13			4

Total revenue		774			394			32			1,200			752			376			55			1,183			17			1
Noninterest expense		613			181			47			841			596			173			41			810			31			4

Profit (loss) before provision for credit losses		161			213			(15	)		359			156			203			14			373			(14	)		(4	)
Provision for credit losses		60			7			10			77			63			(21	)		16			58			19			33

Income (loss) before income tax expense (benefit)		101			206			(25	)		282			93			224			(2	)		315			(33	)		(10	)
Income tax expense (benefit)		35			71			(14	)		92			32			77			(3	)		106			(14	)		(13	)

Net income (loss)	$	66		$	135		($	11	)	$	190		$	61		$	147		$	1		$	209		($	19	)		(9	%)

Average Balances
Total assets	$	52,489		$	42,617		$	40,415		$	135,521		$	51,602		$	41,606		$	40,117		$	133,325		$	2,196			2	%
Total loans and leases²		51,024			41,467			3,569			96,060			50,260			40,241			3,784			94,285			1,775			2
Deposits		69,963			22,717			5,853			98,533			67,518			21,932			6,195			95,645			2,888			3
Interest-earning assets		51,061			41,535			30,609			123,205			50,294			40,344			30,704			121,342			1,863			2
Key Metrics
Net interest margin		4.28	%		2.76	%		NM			2.72	%		4.30	%		2.77	%		NM			2.77	%		(5	) bps		—
Efficiency ratio⁴		79.25			46.07			NM			70.02			79.25			46.01			NM			68.49			153	bps		—
Loans-to-deposits ratio (average balances)		72.93			182.54			NM			97.49			74.44			183.48			NM			98.58			(109	) bps		—
Return on average total tangible assets⁴		0.51			1.27			NM			0.59			0.48			1.43			NM			0.67			(8	) bps		—
Return on average tangible common equity^3,4		5.66			11.69			NM			5.90			5.30			13.15			NM			6.53			(63	) bps		—

Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, capital, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

²	Includes loans and leases held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)


	SECOND QUARTER 2015												SECOND QUARTER 2014												CHANGE
																									2Q15 from 2Q14
	Consumer			Commercial									Consumer			Commercial
	Banking			Banking			Other¹			Consolidated			Banking			Banking			Other¹			Consolidated			$			%
Net interest income	$	544		$	286		$	10		$	840		$	546		$	264		$	23		$	833		$	7			1	%
Noninterest income		230			108			22			360			236			107			297			640			(280	)		(44	)

Total revenue		774			394			32			1,200			782			371			320			1,473			(273	)		(19	)
Noninterest expense		613			181			47			841			655			157			136			948			(107	)		(11	)

Profit (loss) before provision for credit losses		161			213			(15	)		359			127			214			184			525			(166	)		(32	)
Provision for credit losses		60			7			10			77			59			(2	)		(8	)		49			28			57

Income (loss) before income tax expense (benefit)		101			206			(25	)		282			68			216			192			476			(194	)		(41	)
Income tax expense (benefit)		35			71			(14	)		92			24			75			64			163			(71	)		(44	)

Net income (loss)	$	66		$	135		($	11	)	$	190		$	44		$	141		$	128		$	313		($	123	)		(39	%)

Average Balances
Total assets	$	52,489		$	42,617		$	40,415		$	135,521		$	48,556		$	38,022		$	40,570		$	127,148		$	8,373			7	%
Total loans and leases²		51,024			41,467			3,569			96,060			47,368			37,389			4,434			89,191			6,869			8
Deposits³		69,963			22,717			5,853			98,533			70,181			18,358			3,627			92,166			6,367			7
Interest-earning assets		51,061			41,535			30,609			123,205			47,397			37,505			31,090			115,992			7,213			6
Key Metrics
Net interest margin		4.28	%		2.76	%		NM			2.72	%		4.62	%		2.82	%		NM			2.87	%		(15	) bps		—
Efficiency ratio⁵		79.25			46.07			NM			70.02			83.61			42.36			NM			64.33			569	bps		—
Loans-to-deposits ratio (average balances)		72.93			182.54			NM			97.49			67.49			203.67			NM			96.77			72	bps		—
Return on average total tangible assets⁵		0.51			1.27			NM			0.59			0.37			1.50			NM			1.04			(45	) bps		—
Return on average tangible common equity^4,5		5.66			11.69			NM			5.90			3.87			13.78			NM			9.59			(369	) bps		—

²	Includes loans and leases held for sale.

³	Includes deposits held for sale.

⁴	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁵	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)


	SIX MONTHS ENDED JUNE 30, 2015												SIX MONTHS ENDED JUNE 30, 2014											CHANGE
																								2015 from 2014
	Consumer			Commercial									Consumer			Commercial
	Banking			Banking			Other¹			Consolidated			Banking			Banking			Other¹		Consolidated			$			%
Net interest income	$	1,077		$	562		$	37		$	1,676		$	1,083		$	520		$	38	$	1,641		$	35			2	%
Noninterest income		449			208			50			707			455			214			329		998			(291	)		(29	)

Total revenue		1,526			770			87			2,383			1,538			734			367		2,639			(256	)		(10	)
Noninterest expense		1,209			354			88			1,651			1,293			310			155		1,758			(107	)		(6	)

Profit (loss) before provision for credit losses		317			416			(1	)		732			245			424			212		881			(149	)		(17	)
Provision for credit losses		123			(14	)		26			135			129			(7	)		48		170			(35	)		(21	)

Income (loss) before income tax expense (benefit)		194			430			(27	)		597			116			431			164		711			(114	)		(16	)
Income tax expense (benefit)		67			148			(17	)		198			40			149			43		232			(34	)		(15	)

Net income (loss)	$	127		$	282		($	10	)	$	399		$	76		$	282		$	121	$	479		($	80	)		(17	%)

Average Balances
Total assets	$	52,048		$	42,114		$	40,267		$	134,429		$	48,085		$	37,491		$	39,959	$	125,535		$	8,894			7	%
Total loans and leases²		50,644			40,857			3,676			95,177			46,876			36,997			4,527		88,400			6,777			8
Deposits³		68,747			22,326			6,024			97,097			70,473			17,901			3,509		91,883			5,214			6
Interest-earning assets		50,679			40,943			30,657			122,279			46,906			37,124			30,352		114,382			7,897			7
Key Metrics
Net interest margin		4.29	%		2.77	%		NM			2.74	%		4.66	%		2.83	%		NM		2.88	%		(14	) bps		—
Efficiency ratio⁵		79.25			46.04			NM			69.27			84.00			42.25			NM		66.58			269	bps		—
Loans-to-deposits ratio (average balances)		73.67			183.00			NM			98.02			66.52			206.67			NM		96.21			181	bps		—
Return on average total tangible assets⁵		0.49			1.35			NM			0.63			0.32			1.52			NM		0.81			(18	) bps		—
Return on average tangible common equity^4,5		5.48			12.41			NM			6.21			3.35			13.97			NM		7.45			(124	) bps		—

²	Includes loans and leases held for sale.

³	Includes deposits held for sale.

⁴	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁵	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
CONSUMER BANKING																2Q15 Change																		2015 Change
CONSUMER BANKING	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	544		$	533		$	536		$	532		$	546		$	11			2	%	($	2	)		—	%	$	1,077		$	1,083		($	6	)		(1	%)
Noninterest income		230			219			218			226			236			11			5			(6	)		(3	)		449			455			(6	)		(1	)

Total revenue		774			752			754			758			782			22			3			(8	)		(1	)		1,526			1,538			(12	)		(1	)
Noninterest expense		613			596			611			609			655			17			3			(42	)		(6	)		1,209			1,293			(84	)		(6	)

Profit before provision for credit losses		161			156			143			149			127			5			3			34			27			317			245			72			29
Provision for credit losses		60			63			64			66			59			(3	)		(5	)		1			2			123			129			(6	)		(5	)

Income before income tax expense		101			93			79			83			68			8			9			33			49			194			116			78			67
Income tax expense		35			32			27			29			24			3			9			11			46			67			40			27			68

Net income	$	66		$	61		$	52		$	54		$	44		$	5			8	%	$	22			50	%	$	127		$	76		$	51			67	%

Average Balances
Total assets	$	52,489		$	51,602		$	50,546		$	49,012		$	48,556		$	887			2	%	$	3,933			8	%	$	52,048		$	48,085		$	3,963			8	%
Total loans and leases¹		51,024			50,260			49,351			47,848			47,368			764			2			3,656			8			50,644			46,876			3,768			8
Deposits²		69,963			67,518			66,374			65,609			70,181			2,445			4			(218	)		—			68,747			70,473			(1,726	)		(2	)
Interest-earning assets		51,061			50,294			49,382			47,885			47,397			767			2			3,664			8			50,679			46,906			3,773			8
Key Metrics
Net interest margin		4.28	%		4.30	%		4.31	%		4.40	%		4.62	%		(2	) bps		—			(34	) bps		—			4.29	%		4.66	%		(37	) bps		—
Efficiency ratio⁴		79.25			79.25			81.09			80.42			83.61			—	bps		—			(436	) bps		—			79.25			84.00			(475	) bps		—
Loans-to-deposits ratio (average balances)		72.93			74.44			74.35			72.93			67.49			(151	) bps		—			544	bps		—			73.67			66.52			715	bps		—
Return on average total tangible assets⁴		0.51			0.48			0.40			0.44			0.37			3	bps		—			14	bps		—			0.49			0.32			17	bps		—
Return on average tangible common equity^3,4		5.66			5.30			4.30			4.57			3.87			36	bps		—			179	bps		—			5.48			3.35			213	bps		—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
COMMERCIAL BANKING																2Q15 Change																		2015 Change
COMMERCIAL BANKING	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	286		$	276		$	283		$	270		$	264		$	10			4	%	$	22			8	%	$	562		$	520		$	42			8	%
Noninterest income		108			100			111			104			107			8			8			1			1			208			214			(6	)		(3	)

Total revenue		394			376			394			374			371			18			5			23			6			770			734			36			5
Noninterest expense		181			173			180			162			157			8			5			24			15			354			310			44			14

Profit before provision for credit losses		213			203			214			212			214			10			5			(1	)		—			416			424			(8	)		(2	)
Provision for credit losses		7			(21	)		1			—			(2	)		28			133			9			450			(14	)		(7	)		(7	)		(100	)

Income before income tax expense		206			224			213			212			216			(18	)		(8	)		(10	)		(5	)		430			431			(1	)		—
Income tax expense		71			77			73			73			75			(6	)		(8	)		(4	)		(5	)		148			149			(1	)		(1	)

Net income	$	135		$	147		$	140		$	139		$	141		($	12	)		(8	%)	($	6	)		(4	%)	$	282		$	282		$	—			—	%

Average Balances
Total assets	$	42,617		$	41,606		$	40,061		$	38,854		$	38,022		$	1,011			2	%	$	4,595			12	%	$	42,114		$	37,491		$	4,623			12	%
Total loans and leases¹		41,467			40,241			38,926			37,787			37,389			1,226			3			4,078			11			40,857			36,997			3,860			10
Deposits²		22,717			21,932			22,500			20,985			18,358			785			4			4,359			24			22,326			17,901			4,425			25
Interest-earning assets		41,535			40,344			39,039			37,927			37,505			1,191			3			4,030			11			40,943			37,124			3,819			10
Key Metrics
Net interest margin		2.76	%		2.77	%		2.87	%		2.82	%		2.82	%		(1	) bps		—			(6	) bps		—			2.77	%		2.83	%		(6	) bps		—
Efficiency ratio⁴		46.07			46.01			45.48			43.35			42.36			6	bps		—			371	bps		—			46.04			42.25			379	bps		—
Loans-to-deposits ratio (average balances)		182.54			183.48			173.01			180.06			203.67			(94	) bps		—			(2,113	) bps		—			183.00			206.67			(2,367	) bps		—
Return on average total tangible assets⁴		1.27			1.43			1.38			1.42			1.50			(16	) bps		—			(23	) bps		—			1.35			1.52			(17	) bps		—
Return on average tangible common equity^3,4		11.69			13.15			12.76			13.10			13.78			(146	) bps		—			(209	) bps		—			12.41			13.97			(156	) bps		—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
OTHER¹																2Q15 Change																	2015 Change
	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014		2014
																$			%			$			%								$			%
Net interest income	$	10		$	27		$	21		$	18		$	23		($	17	)		(63	%)	($	13	)		(57	%)	$	37		$	38	($	1	)		(3	%)
Noninterest income		22			28			10			11			297			(6	)		(21	)		(275	)		(93	)		50			329		(279	)		(85	)

Total revenue		32			55			31			29			320			(23	)		(42	)		(288	)		(90	)		87			367		(280	)		(76	)
Noninterest expense		47			41			33			39			136			6			15			(89	)		(65	)		88			155		(67	)		(43	)

Profit (loss) before provision for credit losses		(15	)		14			(2	)		(10	)		184			(29	)		(207	)		(199	)		(108	)		(1	)		212		(213	)		(100	)
Provision for credit losses		10			16			7			11			(8	)		(6	)		(38	)		18			225			26			48		(22	)		(46	)

(Loss) income before income tax (benefit) expense		(25	)		(2	)		(9	)		(21	)		192			(23	)		NM			(217	)		(113	)		(27	)		164		(191	)		(116	)
Income tax (benefit) expense		(14	)		(3	)		(14	)		(17	)		64			(11	)		(367	)		(78	)		(122	)		(17	)		43		(60	)		(140	)

Net (loss) income	($	11	)	$	1		$	5		($	4	)	$	128		($	12	)		NM		($	139	)		(109	%)	($	10	)	$	121	($	131	)		(108	%)

Average Balances
Total assets	$	40,415		$	40,117		$	40,064		$	40,825		$	40,570		$	298			1	%	($	155	)		—	%	$	40,267		$	39,959	$	308			1	%
Total loans and leases		3,569			3,784			4,001			4,218			4,434			(215	)		(6	)		(865	)		(20	)		3,676			4,527		(851	)		(19	)
Deposits		5,853			6,195			5,923			5,082			3,627			(342	)		(6	)		2,226			61			6,024			3,509		2,515			72
Interest-earning assets		30,609			30,704			30,309			31,384			31,090			(95	)		—			(481	)		(2	)		30,657			30,352		305			1

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
CONSOLIDATED																2Q15 Change																		2015 Change
CONSOLIDATED	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	840		$	836		$	840		$	820		$	833		$	4			—	%	$	7			1	%	$	1,676		$	1,641		$	35			2	%
Noninterest income		360			347			339			341			640			13			4			(280	)		(44	)		707			998			(291	)		(29	)

Total revenue		1,200			1,183			1,179			1,161			1,473			17			1			(273	)		(19	)		2,383			2,639			(256	)		(10	)
Noninterest expense		841			810			824			810			948			31			4			(107	)		(11	)		1,651			1,758			(107	)		(6	)

Profit before provision for credit losses		359			373			355			351			525			(14	)		(4	)		(166	)		(32	)		732			881			(149	)		(17	)
Provision for credit losses		77			58			72			77			49			19			33			28			57			135			170			(35	)		(21	)

Income before income tax expense		282			315			283			274			476			(33	)		(10	)		(194	)		(41	)		597			711			(114	)		(16	)
Income tax expense		92			106			86			85			163			(14	)		(13	)		(71	)		(44	)		198			232			(34	)		(15	)

Net income	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	%)	($	123	)		(39	%)	$	399		$	479		($	80	)		(17	%)

Average Balances
Total assets	$	135,521		$	133,325		$	130,671		$	128,691		$	127,148		$	2,196			2	%	$	8,373			7	%	$	134,429		$	125,535		$	8,894			7	%
Total loans and leases¹		96,060			94,285			92,278			89,853			89,191			1,775			2			6,869			8			95,177			88,400			6,777			8
Deposits²		98,533			95,645			94,797			91,676			92,166			2,888			3			6,367			7			97,097			91,883			5,214			6
Interest-earning assets		123,205			121,342			118,730			117,196			115,992			1,863			2			7,213			6			122,279			114,382			7,897			7
Key Metrics
Net interest margin		2.72	%		2.77	%		2.80	%		2.77	%		2.87	%		(5	) bps		—			(15	) bps		—			2.74	%		2.88	%		(14	) bps		—
Efficiency ratio³		70.02			68.49			69.88			69.84			64.33			153	bps		—			569	bps		—			69.27			66.58			269	bps		—
Loans-to-deposits ratio (average balances)		97.49			98.58			97.34			98.01			96.77			(109	) bps		—			72	bps		—			98.02			96.21			181	bps		—
Return on average total tangible assets³		0.59			0.67			0.63			0.61			1.04			(8	) bps		—			(45	) bps		—			0.63			0.81			(18	) bps		—
Return on average tangible common equity³		5.90			6.53			6.12			5.81			9.59			(63	) bps		—			(369	) bps		—			6.21			7.45			(124	) bps		—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)


	QUARTERLY TRENDS																									FOR THE SIX MONTHS ENDED JUNE 30,
														2Q15 Change																	2015 Change
	2Q15			1Q15		4Q14			3Q14			2Q14		1Q15						2Q14						2015			2014		2014
														$			%			$			%								$			%
Net interest income:
Consumer Banking	$	544		$	533	$	536		$	532		$	546	$	11			2	%	($	2	)		—	%	$	1,077		$	1,083	($	6	)		(1	%)
Commercial Banking		286			276		283			270			264		10			4			22			8			562			520		42			8
Other		10			27		21			18			23		(17	)		(63	)		(13	)		(57	)		37			38		(1	)		(3	)

Net interest income	$	840		$	836	$	840		$	820		$	833	$	4			—	%	$	7			1	%	$	1,676		$	1,641	$	35			2	%

Noninterest income:
Consumer Banking	$	230		$	219	$	218		$	226		$	236	$	11			5	%	($	6	)		(3	%)	$	449		$	455	($	6	)		(1	%)
Commercial Banking		108			100		111			104			107		8			8			1			1			208			214		(6	)		(3	)
Other		22			28		10			11			297		(6	)		(21	)		(275	)		(93	)		50			329		(279	)		(85	)

Noninterest income	$	360		$	347	$	339		$	341		$	640	$	13			4	%	($	280	)		(44	%)	$	707		$	998	($	291	)		(29	%)

Total revenue:
Consumer Banking	$	774		$	752	$	754		$	758		$	782	$	22			3	%	($	8	)		(1	%)	$	1,526		$	1,538	($	12	)		(1	%)
Commercial Banking		394			376		394			374			371		18			5			23			6			770			734		36			5
Other		32			55		31			29			320		(23	)		(42	)		(288	)		(90	)		87			367		(280	)		(76	)

Total revenue	$	1,200		$	1,183	$	1,179		$	1,161		$	1,473	$	17			1	%	($	273	)		(19	%)	$	2,383		$	2,639	($	256	)		(10	%)

Noninterest expense:
Consumer Banking	$	613		$	596	$	611		$	609		$	655	$	17			3	%	($	42	)		(6	%)	$	1,209		$	1,293	($	84	)		(6	%)
Commercial Banking		181			173		180			162			157		8			5			24			15			354			310		44			14
Other		47			41		33			39			136		6			15			(89	)		(65	)		88			155		(67	)		(43	)

Noninterest expense	$	841		$	810	$	824		$	810		$	948	$	31			4	%	($	107	)		(11	%)	$	1,651		$	1,758	($	107	)		(6	%)

Profit before provision for credit losses:
Consumer Banking	$	161		$	156	$	143		$	149		$	127	$	5			3	%	$	34			27	%	$	317		$	245	$	72			29	%
Commercial Banking		213			203		214			212			214		10			5			(1	)		—			416			424		(8	)		(2	)
Other		(15	)		14		(2	)		(10	)		184		(29	)		(207	)		(199	)		(108	)		(1	)		212		(213	)		(100	)

Profit before provision for credit losses	$	359		$	373	$	355		$	351		$	525	($	14	)		(4	%)	($	166	)		(32	%)	$	732		$	881	($	149	)		(17	%)

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change																		2015 Change
	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	60		$	63		$	64		$	66		$	59		($	3	)		(5	%)	$	1			2	%	$	123		$	129		($	6	)		(5	%)
Commercial Banking		7			(21	)		1			—			(2	)		28			133			9			450			(14	)		(7	)		(7	)		(100	)
Other		10			16			7			11			(8	)		(6	)		(38	)		18			225			26			48			(22	)		(46	)

Provision for credit losses	$	77		$	58		$	72		$	77		$	49		$	19			33	%	$	28			57	%	$	135		$	170		($	35	)		(21	%)

Income before income tax expense:
Consumer Banking	$	101		$	93		$	79		$	83		$	68		$	8			9	%	$	33			49	%	$	194		$	116		$	78			67	%
Commercial Banking		206			224			213			212			216			(18	)		(8	)		(10	)		(5	)		430			431			(1	)		—
Other		(25	)		(2	)		(9	)		(21	)		192			(23	)		NM			(217	)		(113	)		(27	)		164			(191	)		(116	)

Income before income tax expense	$	282		$	315		$	283		$	274		$	476		($	33	)		(10	%)	($	194	)		(41	%)	$	597		$	711		($	114	)		(16	%)

Income tax expense:
Consumer Banking	$	35		$	32		$	27		$	29		$	24		$	3			9	%	$	11			46	%	$	67		$	40		$	27			68	%
Commercial Banking		71			77			73			73			75			(6	)		(8	)		(4	)		(5	)		148			149			(1	)		(1	)
Other		(14	)		(3	)		(14	)		(17	)		64			(11	)		(367	)		(78	)		(122	)		(17	)		43			(60	)		(140	)

Income tax expense	$	92		$	106		$	86		$	85		$	163		($	14	)		(13	%)	($	71	)		(44	%)	$	198		$	232		($	34	)		(15	%)

Net income:
Consumer Banking	$	66		$	61		$	52		$	54		$	44		$	5			8	%	$	22			50	%	$	127		$	76		$	51			67	%
Commercial Banking		135			147			140			139			141			(12	)		(8	)		(6	)		(4	)		282			282			—			—
Other		(11	)		1			5			(4	)		128			(12	)		NM			(139	)		(109	)		(10	)		121			(131	)		(108	)

Net income	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	%)	($	123	)		(39	%)	$	399		$	479		($	80	)		(17	%)

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																						FOR THE SIX MONTHS ENDED JUNE 30
											2Q15 Change																2015 Change
AVERAGE BALANCES	2Q15		1Q15		4Q14		3Q14		2Q14		1Q15						2Q14						2015		2014		2014
											$			%			$			%							$			%
Total assets:
Consumer Banking	$	52,489	$	51,602	$	50,546	$	49,012	$	48,556	$	887			2	%	$	3,933			8	%	$	52,048	$	48,085	$	3,963			8	%
Commercial Banking		42,617		41,606		40,061		38,854		38,022		1,011			2			4,595			12			42,114		37,491		4,623			12
Other		40,415		40,117		40,064		40,825		40,570		298			1			(155	)		—			40,267		39,959		308			1

Total assets	$	135,521	$	133,325	$	130,671	$	128,691	$	127,148	$	2,196			2	%	$	8,373			7	%	$	134,429	$	125,535	$	8,894			7	%

Loans and leases¹:
Consumer Banking	$	51,024	$	50,260	$	49,351	$	47,848	$	47,368	$	764			2	%	$	3,656			8	%	$	50,644	$	46,876	$	3,768			8	%
Commercial Banking		41,467		40,241		38,926		37,787		37,389		1,226			3			4,078			11			40,857		36,997		3,860			10
Other		3,569		3,784		4,001		4,218		4,434		(215	)		(6	)		(865	)		(20	)		3,676		4,527		(851	)		(19	)

Total loans and leases	$	96,060	$	94,285	$	92,278	$	89,853	$	89,191	$	1,775			2	%	$	6,869			8	%	$	95,177	$	88,400	$	6,777			8	%

Deposits²:
Consumer Banking	$	69,963	$	67,518	$	66,374	$	65,609	$	70,181	$	2,445			4	%	($	218	)		—	%	$	68,747	$	70,473	($	1,726	)		(2	%)
Commercial Banking		22,717		21,932		22,500		20,985		18,358		785			4			4,359			24			22,326		17,901		4,425			25
Other		5,853		6,195		5,923		5,082		3,627		(342	)		(6	)		2,226			61			6,024		3,509		2,515			72

Total deposits	$	98,533	$	95,645	$	94,797	$	91,676	$	92,166	$	2,888			3	%	$	6,367			7	%	$	97,097	$	91,883	$	5,214			6	%

Interest-earning assets:
Consumer Banking	$	51,061	$	50,294	$	49,382	$	47,885	$	47,397	$	767			2	%	$	3,664			8	%	$	50,679	$	46,906	$	3,773			8	%
Commercial Banking		41,535		40,344		39,039		37,927		37,505		1,191			3			4,030			11			40,943		37,124		3,819			10
Other		30,609		30,704		30,309		31,384		31,090		(95	)		—			(481	)		(2	)		30,657		30,352		305			1

Total interest-earning assets	$	123,205	$	121,342	$	118,730	$	117,196	$	115,992	$	1,863			2	%	$	7,213			6	%	$	122,279	$	114,382	$	7,897			7	%

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS																							FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change														2015 Change
KEY METRICS	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15				2Q14				2015			2014			2014
																bps				bps										bps
Net Interest Margin (NIM)
Consumer Banking		4.28	%		4.30	%		4.31	%		4.40	%		4.62	%		(2	)	—		(34	)	—		4.29	%		4.66	%		(37	)	—
Commercial Banking		2.76			2.77			2.87			2.82			2.82			(1	)	—		(6	)	—		2.77			2.83			(6	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
NIM		2.72			2.77			2.80			2.77			2.87			(5	)	—		(15	)	—		2.74			2.88			(14	)	—
Efficiency Ratio³
Consumer Banking		79.25	%		79.25	%		81.09	%		80.42	%		83.61	%		—		—		(436	)	—		79.25	%		84.00	%		(475	)	—
Commercial Banking		46.07			46.01			45.48			43.35			42.36			6		—		371		—		46.04			42.25			379		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
Efficiency Ratio		70.02			68.49			69.88			69.84			64.33			153		—		569		—		69.27			66.58			269		—
Loans to Deposits Ratio (average balances) (LDR)¹
Consumer Banking		72.93	%		74.44	%		74.35	%		72.93	%		67.49	%		(151	)	—		544		—		73.67	%		66.52	%		715		—
Commercial Banking		182.54			183.48			173.01			180.06			203.67			(94	)	—		(2,113	)	—		183.00			206.67			(2,367	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
LDR		97.49			98.58			97.34			98.01			96.77			(109	)	—		72		—		98.02			96.21			181		—
Return on Average Total Tangible Assets (ROTA)³
Consumer Banking		0.51	%		0.48	%		0.40	%		0.44	%		0.37	%		3		—		14		—		0.49	%		0.32	%		17		—
Commercial Banking		1.27			1.43			1.38			1.42			1.50			(16	)	—		(23	)	—		1.35			1.52			(17	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTA		0.59			0.67			0.63			0.61			1.04			(8	)	—		(45	)	—		0.63			0.81			(18	)	—
Return on Average Tangible Common Equity (ROTCE)^2,3
Consumer Banking		5.66	%		5.30	%		4.30	%		4.57	%		3.87	%		36		—		179		—		5.48	%		3.35	%		213		—
Commercial Banking		11.69			13.15			12.76			13.10			13.78			(146	)	—		(209	)	—		12.41			13.97			(156	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTCE		5.90			6.53			6.12			5.81			9.59			(63	)	—		(369	)	—		6.21			7.45			(124	)	—

¹	Includes loans and leases and deposits held for sale.

²	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

CREDIT-RELATED INFORMATION

(dollars in millions)


	AS OF										JUNE 30, 2015 CHANGE
	June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2015						June 30, 2014
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	33,027	$	32,249	$	31,431	$	30,356	$	30,076	$	778			2	%	$	2,951			10	%
Commercial real estate		8,157		7,863		7,809		7,239		7,158		294			4			999			14
Leases		3,884		3,870		3,986		3,875		3,740		14			—			144			4

Total commercial		45,068		43,982		43,226		41,470		40,974		1,086			2			4,094			10
Residential mortgages		12,253		11,808		11,832		11,265		10,640		445			4			1,613			15
Home equity loans		3,022		3,212		3,424		3,635		3,858		(190	)		(6	)		(836	)		(22	)
Home equity lines of credit		14,917		15,127		15,423		15,558		15,618		(210	)		(1	)		(701	)		(4	)
Home equity loans serviced by others¹		1,126		1,192		1,228		1,290		1,358		(66	)		(6	)		(232	)		(17	)
Home equity lines of credit serviced by others¹		494		544		550		580		614		(50	)		(9	)		(120	)		(20	)
Automobile		13,727		13,179		12,706		12,080		10,974		548			4			2,753			25
Student		3,355		2,852		2,256		2,069		1,941		503			18			1,414			73
Credit card		1,613		1,588		1,693		1,676		1,646		25			2			(33	)		(2	)
Other retail		963		1,010		1,072		1,126		1,206		(47	)		(5	)		(243	)		(20	)

Total retail		51,470		50,512		50,184		49,279		47,855		958			2			3,615			8

Total loans and leases		96,538		94,494		93,410		90,749		88,829		2,044			2			7,709			9
Derivative receivable - commercial		658		733		622		542		627		(75	)		(10	)		31			5
Derivative receivable - retail		7		9		7		5		8		(2	)		(22	)		(1	)		(13	)

Total derivative receivable		665		742		629		547		635		(77	)		(10	)		30			5

Total credit-related assets		97,203		95,236		94,039		91,296		89,464		1,967			2			7,739			9
Undrawn commitments to extend credit - commercial		29,422		29,110		29,646		29,182		28,236		312			1			1,186			4
Financial standby letters of credit		2,181		2,292		2,315		2,498		2,622		(111	)		(5	)		(441	)		(17	)
Performance letters of credit		55		60		65		94		118		(5	)		(8	)		(63	)		(53	)
Commercial letters of credit		59		58		75		74		56		1			2			3			5
Marketing rights		49		51		51		51		51		(2	)		(4	)		(2	)		(4	)
Risk participation agreements		22		26		19		16		20		(4	)		(15	)		2			10

Total commercial lending-related arrangements		31,788		31,597		32,171		31,915		31,103		191			1			685			2
Undrawn commitments to extend credit - retail		26,465		26,114		26,253		26,151		26,117		351			1			348			1
Residential mortgage loans sold with recourse		12		10		11		11		12		2			20			—			—

Total retail lending-related arrangements		26,477		26,124		26,264		26,162		26,129		353			1			348			1

Total lending-related arrangements		58,265		57,721		58,435		58,077		57,232		544			1			1,033			2

Total credit exposure	$	155,468	$	152,957	$	152,474	$	149,373	$	146,696	$	2,511			2	%	$	8,772			6	%

Memo: Total credit exposure by product category
Commercial exposure	$	77,514	$	76,312	$	76,019	$	73,927	$	72,704	$	1,202			2	%	$	4,810			7	%
Retail exposure		77,954		76,645		76,455		75,446		73,992		1,309			2			3,962			5

Total credit exposure	$	155,468	$	152,957	$	152,474	$	149,373	$	146,696	$	2,511			2	%	$	8,772			6	%

¹	Our SBO portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except ratios)


	AS OF															JUNE 30, 2015 CHANGE
	June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2014			Mar 31, 2015						June 30, 2014
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	83		$	97		$	114		$	93		$	63		($	14	)		(14	%)	$	20			32	%
Commercial real estate		42			60			50			83			130			(18	)		(30	)		(88	)		(68	)
Leases		—			1			—			—			2			(1	)		(100	)		(2	)		(100	)

Total commercial		125			158			164			176			195			(33	)		(21	)		(70	)		(36	)
Residential mortgages		329			347			345			351			346			(18	)		(5	)		(17	)		(5	)
Home equity loans		189			210			203			201			231			(21	)		(10	)		(42	)		(18	)
Home equity lines of credit		254			270			257			218			299			(16	)		(6	)		(45	)		(15	)
Home equity loans serviced by others²		44			44			47			52			51			—			—			(7	)		(14	)
Home equity lines of credit serviced by others²		26			25			25			29			29			1			4			(3	)		(10	)
Automobile		30			30			21			17			12			—			—			18			150
Student		35			30			17			14			12			5			17			23			192
Credit card		14			16			17			16			19			(2	)		(13	)		(5	)		(26	)
Other retail		4			6			5			5			6			(2	)		(33	)		(2	)		(33	)

Total retail		925			978			937			903			1,005			(53	)		(5	)		(80	)		(8	)

Nonperforming loans and leases¹		1,050			1,136			1,101			1,079			1,200			(86	)		(8	)		(150	)		(13	)

Commercial		1			1			3			3			4			—			—			(3	)		(75	)
Retail		37			37			39			39			37			—			—			—			—

Other real estate owned		38			38			42			42			41			—			—			(3	)		(7	)

Nonperforming assets	$	1,088		$	1,174		$	1,143		$	1,121		$	1,241		($	86	)		(7	%)	($	153	)		(12	%)

NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	126		$	159		$	167		$	179		$	199		($	33	)		(21	%)	($	73	)		(37	%)
Retail		962			1,015			976			942			1,042			(53	)		(5	)		(80	)		(8	)

Nonperforming assets	$	1,088		$	1,174		$	1,143		$	1,121		$	1,241		($	86	)		(7	%)	($	153	)		(12	%)

ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.24	%		1.27	%		1.28	%		1.32	%		1.36	%		(3	) bps		—			(12	) bps		—
Allowance for loan and lease losses to nonperforming loans and leases		114.37			105.75			108.51			111.30			100.84			862	bps		—			1,353	bps		—
Nonperforming loans and leases to loans and leases		1.09			1.20			1.18			1.19			1.35			(11	) bps		—			(26	) bps		—
Nonperforming assets to total assets		0.79			0.86			0.86			0.85			0.95			(7	) bps		—			(16	) bps		—

¹MEMO:
Accruing loans past due 90 days or more included above	$	8		$	9		$	8		$	8		$	12		($	1	)		(11	%)	($	4	)		(33	%)

²	Our SBO portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																									FOR THE SIX MONTHS ENDED JUNE 30,
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS														2Q15 Change																		2015 Change
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS	2Q15		1Q15			4Q14			3Q14		2Q14			1Q15						2Q14						2015			2014			2014
														$			%			$			%									$			%
GROSS CHARGE-OFFS:
Commercial	$	12	$	5		$	9		$	11	$	6		$	7			140	%	$	6			100	%	$	17		$	11		$	6			55	%
Commercial real estate		3		1			4			5		2			2			200			1			50			4			3			1			33
Leases		—		—			—			—		—			—			—			—			—			—			—			—			—

Total commercial		15		6			13			16		8			9			150			7			88			21			14			7			50
Residential mortgages		6		6			6			10		9			—			—			(3	)		(33	)		12			20			(8	)		(40	)
Home equity loans		6		9			11			16		11			(3	)		(33	)		(5	)		(45	)		15			28			(13	)		(46	)
Home equity lines of credit		17		22			16			19		21			(5	)		(23	)		(4	)		(19	)		39			45			(6	)		(13	)
Home equity loans serviced by others¹		7		8			11			14		13			(1	)		(13	)		(6	)		(46	)		15			30			(15	)		(50	)
Home equity lines of credit serviced by others¹		3		4			2			3		3			(1	)		(25	)		—			—			7			7			—			—
Automobile		24		23			16			9		11			1			4			13			118			47			16			31			194
Student		15		10			16			12		14			5			50			1			7			25			26			(1	)		(4	)
Credit card		16		15			15			15		17			1			7			(1	)		(6	)		31			34			(3	)		(9	)
Other retail		12		12			13			15		10			—			—			2			20			24			25			(1	)		(4	)

Total retail		106		109			106			113		109			(3	)		(3	)		(3	)		(3	)		215			231			(16	)		(7	)

Total gross charge-offs	$	121	$	115		$	119		$	129	$	117		$	6			5	%	$	4			3	%	$	236		$	245		($	9	)		(4	%)

GROSS RECOVERIES:
Commercial	$	5	$	6		$	4		$	7	$	18		($	1	)		(17	%)	($	13	)		(72	%)	$	11		$	24		($	13	)		(54	%)
Commercial real estate		3		22			7			5		3			(19	)		(86	)		—			—			25			11			14			127
Leases		—		—			—			—		—			—			—			—			—			—			—			—			—

Total commercial		8		28			11			12		21			(20	)		(71	)		(13	)		(62	)		36			35			1			3
Residential mortgages		2		3			2			2		3			(1	)		(33	)		(1	)		(33	)		5			7			(2	)		(29	)
Home equity loans		2		2			5			9		4			—			—			(2	)		(50	)		4			10			(6	)		(60	)
Home equity lines of credit		6		5			3			5		3			1			20			3			100			11			7			4			57
Home equity loans serviced by others¹		5		3			6			6		4			2			67			1			25			8			9			(1	)		(11	)
Home equity lines of credit serviced by others¹		2		2			1			2		1			—			—			1			100			4			2			2			100
Automobile		11		9			6			4		8			2			22			3			38			20			10			10			100
Student		3		3			3			1		2			—			—			1			50			6			5			1			20
Credit card		2		2			2			—		3			—			—			(1	)		(33	)		4			5			(1	)		(20	)
Other retail		2		4			—			—		—			(2	)		(50	)		2			—			6			—			6			—

Total retail		35		33			28			29		28			2			6			7			25			68			55			13			24

Total gross recoveries	$	43	$	61		$	39		$	41	$	49		($	18	)		(30	%)	($	6	)		(12	%)	$	104		$	90		$	14			16	%

NET CHARGE-OFFS (RECOVERIES):
Commercial	$	7	($	1	)	$	5		$	4	($	12	)	$	8			800	%	$	19			158	%	$	6		($	13	)	$	19			146	%
Commercial real estate		—		(21	)		(3	)		—		(1	)		21			100			1			100			(21	)		(8	)		(13	)		(163	)
Leases		—		—			—			—		—			—			—			—			—			—			—			—			—

Total commercial		7		(22	)		2			4		(13	)		29			132			20			154			(15	)		(21	)		6			29
Residential mortgages		4		3			4			8		6			1			33			(2	)		(33	)		7			13			(6	)		(46	)
Home equity loans		4		7			6			7		7			(3	)		(43	)		(3	)		(43	)		11			18			(7	)		(39	)
Home equity lines of credit		11		17			13			14		18			(6	)		(35	)		(7	)		(39	)		28			38			(10	)		(26	)
Home equity loans serviced by others¹		2		5			5			8		9			(3	)		(60	)		(7	)		(78	)		7			21			(14	)		(67	)
Home equity lines of credit serviced by others¹		1		2			1			1		2			(1	)		(50	)		(1	)		(50	)		3			5			(2	)		(40	)
Automobile		13		14			10			5		3			(1	)		(7	)		10			333			27			6			21			350
Student		12		7			13			11		12			5			71			—			—			19			21			(2	)		(10	)
Credit card		14		13			13			15		14			1			8			—			—			27			29			(2	)		(7	)
Other retail		10		8			13			15		10			2			25			—			—			18			25			(7	)		(28	)

Total retail		71		76			78			84		81			(5	)		(7	)		(10	)		(12	)		147			176			(29	)		(16	)

Total net charge-offs (recoveries)	$	78	$	54		$	80		$	88	$	68		$	24			44	%	$	10			15	%	$	132		$	155		($	23	)		(15	%)

¹	Our SBO portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change																		2015 Change
	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES:
Commercial		0.10	%		(0.02	%)		0.06	%		0.04	%		(0.15	%)		12	bps		—			25	bps		—			0.04	%		(0.09	%)		(13	) bps		—
Commercial real estate		(0.03	)		(1.07	)		(0.15	)		0.06			(0.06	)		104	bps		—			3	bps		—			(0.54	)		(0.24	)		30	bps		—
Leases		—			—			—			—			(0.03	)		—	bps		—			3	bps		—			—			(0.01	)		(1	) bps		—
Total commercial		0.07			(0.20	)		0.02			0.04			(0.12	)		27	bps		—			19	bps		—			(0.07	)		(0.11	)		(4	) bps		—
Residential mortgages		0.14			0.11			0.14			0.27			0.21			3	bps		—			(7	) bps		—			0.12			0.26			14	bps		—
Home equity loans		0.56			0.81			0.45			0.79			0.76			(25	) bps		—			(20	) bps		—			0.69			0.90			21	bps		—
Home equity lines of credit		0.29			0.46			0.34			0.36			0.45			(17	) bps		—			(16	) bps		—			0.37			0.49			12	bps		—
Home equity loans serviced by others¹		0.70			1.49			1.67			2.43			2.51			(79	) bps		—			(181	) bps		—			1.10			2.92			182	bps		—
Home equity lines of credit serviced by others¹		0.89			1.56			0.81			1.18			1.21			(67	) bps		—			(32	) bps		—			1.24			1.41			17	bps		—
Automobile		0.38			0.42			0.34			0.21			0.09			(4	) bps		—			29	bps		—			0.40			0.11			(29	) bps		—
Student		1.56			1.13			2.36			1.70			2.14			43	bps		—			(58	) bps		—			1.36			1.91			55	bps		—
Credit card		3.36			3.26			3.28			3.33			3.62			10	bps		—			(26	) bps		—			3.31			3.68			37	bps		—
Other retail		4.42			3.30			4.82			5.24			3.53			112	bps		—			89	bps		—			3.85			4.21			36	bps		—
Total retail		0.56			0.61			0.62			0.68			0.68			(5	) bps		—			(12	) bps		—			0.58			0.76			18	bps		—
Total loans and leases		0.33			0.23			0.35			0.38			0.31			10	bps		—			2	bps		—			0.28			0.36			8	bps		—
Memo: Average loans:
Commercial	$	32,855		$	31,911		$	30,962		$	30,186		$	29,674		$	944			3	%	$	3,181			11	%		32,386			29,402		$	2,984			10	%
Commercial real estate		7,947			7,700			7,427			7,216			7,082			247			3			865			12			7,824			6,991			833			12
Leases		3,894			3,895			3,874			3,789			3,716			(1	)		—			178			5			3,895			3,720			175			5

Total commercial		44,696			43,506			42,263			41,191			40,472			1,190			3			4,224			10			44,105			40,113			3,992			10
Residential mortgages		11,980			11,855			11,647			11,001			10,355			125			1			1,625			16			11,918			10,125			1,793			18
Home equity loans		3,138			3,332			3,527			3,743			4,015			(194	)		(6	)		(877	)		(22	)		3,234			4,123			(889	)		(22	)
Home equity lines of credit		15,084			15,310			15,490			15,572			15,563			(226	)		(1	)		(479	)		(3	)		15,196			15,573			(377	)		(2	)
Home equity loans serviced by others¹		1,134			1,193			1,252			1,317			1,388			(59	)		(5	)		(254	)		(18	)		1,164			1,420			(256	)		(18	)
Home equity lines of credit serviced by others¹		469			522			561			591			627			(53	)		(10	)		(158	)		(25	)		495			643			(148	)		(23	)
Automobile		13,484			12,933			12,403			11,438			10,528			551			4			2,956			28			13,210			10,087			3,123			31
Student		3,029			2,623			2,142			1,983			2,209			406			15			820			37			2,827			2,235			592			26
Credit card		1,606			1,637			1,663			1,661			1,647			(31	)		(2	)		(41	)		(2	)		1,621			1,639			(18	)		(1	)
Other retail		986			1,041			1,097			1,153			1,215			(55	)		(5	)		(229	)		(19	)		1,013			1,247			(234	)		(19	)

Total retail		50,910			50,446			49,782			48,459			47,547			464			1			3,363			7			50,678			47,092			3,586			8

Total loans and leases	$	95,606		$	93,952		$	92,045		$	89,650		$	88,019		$	1,654			2	%	$	7,587			9	%	$	94,783		$	87,205		$	7,578			9	%

¹	Our SBO portfolio consists of loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
SUMMARY OF CHANGES IN THE COMPONENTS																2Q15 Change																		2015 Change
OF THE ALLOWANCE FOR CREDIT LOSSES	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
Allowance for loan and lease losses - beginning	$	1,202		$	1,195		$	1,201		$	1,210		$	1,259		$	7			1	%	($	57	)		(5	%)	$	1,195		$	1,221		($	26	)		(2	%)
Charge-offs:
Commercial		15			6			13			16			8			9			150			7			88			21			14			7			50
Retail		106			109			106			113			109			(3	)		(3	)		(3	)		(3	)		215			231			(16	)		(7	)

Total charge-offs		121			115			119			129			117			6			5			4			3			236			245			(9	)		(4	)
Recoveries:
Commercial		8			28			11			12			21			(20	)		(71	)		(13	)		(62	)		36			35			1			3
Retail		35			33			28			29			28			2			6			7			25			68			55			13			24

Total recoveries		43			61			39			41			49			(18	)		(30	)		(6	)		(12	)		104			90			14			16

Net charge-offs		78			54			80			88			68			24			44			10			15			132			155			(23	)		(15	)
Provision for loan and lease losses:
Commercial		(6	)		12			4			38			(32	)		(18	)		(150	)		26			81			6			(11	)		17			155
Retail		83			51			70			41			51			32			63			32			63			134			155			(21	)		(14	)

Total provision for loan and lease losses		77			63			74			79			19			14			22			58			305			140			144			(4	)		(3	)
Sale/Other		—			(2	)		—			—			—			2			100			—			—			(2	)		—			(2	)		—

Allowance for loan and lease losses - ending	$	1,201		$	1,202		$	1,195		$	1,201		$	1,210		($	1	)		—	%	($	9	)		(1	%)	$	1,201		$	1,210		($	9	)		(1	)

Reserve for unfunded lending commitments - beginning	$	56		$	61		$	63		$	65		$	35		($	5	)		(8	%)	$	21			60	%	$	61		$	39		$	22			56	%
Provision for unfunded lending commitments		—			(5	)		(2	)		(2	)		30			5			100			(30	)		(100	)		(5	)		26			(31	)		(119	)

Reserve for unfunded lending commitments - ending		56			56			61			63			65			—			—			(9	)		(14	)		56			65			(9	)		(14	)

Total allowance for credit losses - ending	$	1,257		$	1,258		$	1,256		$	1,264		$	1,275		($	1	)		—	%	($	18	)		(1	%)	$	1,257		$	1,275		($	18	)		(1	%)

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	AS OF										JUNE 30, 2015 CHANGE
	June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2015						June 30, 2014
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	21	$	35	$	20	$	14	$	23	($	14	)		(40	%)	($	2	)		(9	%)
Formula-based evaluation		600		599		585		591		550		1			—			50			9

Total commercial		621		634		605		605		573		(13	)		(2	)		48			8
Individually evaluated		107		107		109		116		116		—			—			(9	)		(8	)
Formula-based evaluation		529		517		542		543		586		12			2			(57	)		(10	)

Total retail		636		624		651		659		702		12			2			(66	)		(9	)

Total allowance for credit losses	$	1,257	$	1,258	$	1,256	$	1,264	$	1,275	($	1	)		—	%	($	18	)		(1	%)

CAPITAL AND RATIOS

(dollars in millions, except ratios)


	AS OF															JUNE 30, 2015 CHANGE												FOR THE SIX MONTHS ENDED JUNE 30,
	June 30,			Mar 31,			Dec 31,			Sept 30,			Jun 30,																			2015 Change
CAPITAL AND RATIOS	2015			2015			2014			2014			2014			Mar 31, 2015						June 30, 2014						2015		2014		2014
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS¹(preliminary)
CET1 capital²	$	13,270		$	13,360		$	13,173		$	13,330		$	13,448		($	90	)		(1	%)	($	178	)		(1	%)
Tier 1 capital		13,517			13,360			13,173			13,330			13,448			157			1			69			1
Total capital		17,123			16,969			16,781			16,612			16,400			154			1			723			4
Risk-weighted assets		112,131			109,786			105,964			103,207			101,397			2,345			2			10,734			11
Adjusted average assets³		129,505			127,165			124,539			122,521			121,276			2,340			2			8,229			7
CET1 capital ratio²		11.8	%		12.2	%		12.4	%		12.9	%		13.3	%
Tier 1 capital ratio		12.1			12.2			12.4			12.9			13.3
Total capital ratio		15.3			15.5			15.8			16.1			16.2
Tier 1 leverage ratio		10.4			10.5			10.6			10.9			11.1
Proforma Basel III fully phased-in common equity tier 1 capital ratio⁴		11.8			12.1			12.1			12.5			13.0
TANGIBLE COMMON EQUITY (period-end):
Stockholders’ common equity	$	19,339		$	19,564		$	19,268		$	19,383		$	19,597		($	225	)		(1	%)	($	258	)		(1	%)	$	19,339	$	19,597	($	258	)		(1	%)
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		4			5			6			6			7			(1	)		(20	)		(3	)		(43	)		4		7		(3	)		(43	)
Add: Deferred tax liabilities⁵		450			434			420			399			384			16			4			66			17			450		384		66			17

Total tangible common equity⁶	$	12,909		$	13,117		$	12,806		$	12,900		$	13,098		($	208	)		(2	%)	($	189	)		(1	%)	$	12,909	$	13,098	($	189	)		(1	%)

TANGIBLE COMMON EQUITY (average):
Stockholders’ common equity	$	19,391		$	19,407		$	19,209		$	19,411		$	19,607		($	16	)		—	%	($	216	)		(1	%)	$	19,399	$	19,489	($	90	)		—	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		5			5			6			6			7			—			—			(2	)		(29	)		5		7		(2	)		(29	)
Add: Deferred tax liabilities⁵		437			422			403			384			369			15			4			68			18			430		360		70			19

Total tangible common equity⁶	$	12,947		$	12,948		$	12,730		$	12,913		$	13,093		($	1	)		—	%	($	146	)		(1	%)	$	12,948	$	12,966	($	18	)		—	%

INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876	$	6,876	$	—			—	%
Trade Name		4			5			6			6			7			(1	)		(20	)		(3	)		(43	)		4		7		(3	)		(43	)

Total intangible assets	$	6,880		$	6,881		$	6,882		$	6,882		$	6,883		($	1	)		—	%	($	3	)		—	%	$	6,880	$	6,883	($	3	)		—	%

Basel III transitional rules for institutions applying the standardized approach to calculating risk-weighted assets became effective January 1, 2015. The capital ratios and associated components starting with June 30, 2015 and March 31, 2015 are prepared using the Basel III standardized transitional approach. The capital ratios and associated components for periods December 31, 2014 and prior are prepared under the Basel I general capital rule.

²	CET1 capital under Basel III replaced tier 1 common capital under Basel I effective January 1, 2015.

Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangibles assets, net of deferred tax liabilities related to tax deductible goodwill, and the accumulated other comprehensive income impact related to the adoption of post-retirement benefit plan guidance under GAAP.

⁴	Prior to Basel III becoming effective on January 1, 2015, this was a non-GAAP financial measure. For further information on this measure, refer to page 31.

⁵	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

⁶	These are non-GAAP financial measures. For further information on these measures, refer to page 30.

PER-SHARE RELATED INFORMATION

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


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change																		2015 Change
	2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																$			%			$			%									$			%
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	%)	($	123	)		(39	%)	$	399		$	479		($	80	)		(17	%)
Less: Preferred stock dividends		—			—			—			—			—			—			—			—			—			—			—			—			—

Net income applicable to common stockholders	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	%)	($	123	)		(39	%)	$	399		$	479		($	80	)		(17	)

Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	215		$	215		$	217		$	202		$	205		$	—			—	%	$	10			5	%	$	430		$	371		$	59			16

Total weighted-average basic shares outstanding		537,729,248			546,291,363			546,810,009			559,998,324			559,998,324			(8,562,115	)		(2	)		(22,269,076	)		(4	)		541,986,653			559,998,324			(18,011,671	)		(3	)
Net income per share - basic	$	0.35		$	0.38		$	0.36		$	0.34		$	0.56		($	0.03	)		(8	%)	($	0.21	)		(38	%)	$	0.74		$	0.86		($	0.12	)		(14	%)
Net income per share, excluding restructuring charges and special items - basic¹	$	0.40		$	0.39		$	0.40		$	0.36		$	0.37		$	0.01			3	%	$	0.03			8	%	$	0.79		$	0.66		$	0.13			20	%
Diluted earnings per share:
Net income applicable to common stockholders	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	)	($	123	)		(39	)	$	399		$	479		($	80	)		(17	)
Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	215		$	215		$	217		$	202		$	205		$	—			—		$	10			5		$	430		$	371		$	59			16
Total weighted-average basic shares outstanding		537,729,248			546,291,363			546,810,009			559,998,324			559,998,324			(8,562,115	)		(2	)		(22,269,076	)		(4	)		541,986,653			559,998,324			(18,011,671	)		(3	)
Add: Share-based awards		2,180,118			3,507,354			3,866,289			245,423			—			(1,327,236	)		(38	)		2,180,118			—			2,817,615			—			2,817,615			—

Total weighted-average diluted shares outstanding		539,909,366			549,798,717			550,676,298			560,243,747			559,998,324			(9,889,351	)		(2	)		(20,088,958	)		(4	)		544,804,268			559,998,324			(15,194,056	)		(3	)
Net income per share - diluted	$	0.35		$	0.38		$	0.36		$	0.34		$	0.56		($	0.03	)		(8	%)	($	0.21	)		(38	%)	$	0.73		$	0.86		($	0.13	)		(15	%)
Net income per share, excluding restructuring charges and special items - diluted¹	$	0.40		$	0.39		$	0.39		$	0.36		$	0.37		$	0.01			3	%	$	0.03			8	%	$	0.79		$	0.66		$	0.13			20	%
COMMON SHARES OUTSTANDING
Common shares - at end of period		537,149,717			547,490,812			545,884,519			559,998,324			559,998,324			(10,341,095	)		(2	%)		(22,848,607	)		(4	%)		537,149,717			559,998,324			(22,848,607	)		(4	%)
Cash dividends declared and paid per share	$	0.10		$	0.10		$	0.10		$	0.68		$	0.61		$	—			—		($	0.51	)		(84	)	$	0.20		$	0.66		($	0.46	)		(70	)
Book value per share	$	36.00		$	35.73		$	35.30		$	34.61		$	35.00			0.27			1			1.00			3		$	36.00		$	35.00			1.00			3
Tangible book value per share¹	$	24.03		$	23.96		$	23.46		$	23.04		$	23.39			0.07			—			0.64			3		$	24.03		$	23.39			0.64			3
Dividend payout ratio		28	%		26	%		28	%		203	%		110	%		200	bps		—			(8,200	) bps		—			27	%		77	%		(5,000	) bps		—
SHARE PRICE
High	$	28.71		$	25.84		$	25.60		$	23.57		$	—		$	2.87			11	%		NM			—	%	$	28.71		$	—			NM			—	%
Low		24.03			22.67			21.47			21.35			—			1.36			6			NM			—			22.67			—			NM			—
Close		27.31			24.13			24.86			23.42			—			3.18			13			NM			—			27.31			—			NM			—
Market Capitalization		14,670			13,211			13,571			13,115			—			1,459			11			NM			—			14,670			—			NM			—

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Excluding restructuring charges and special items)

(dollars in millions, except per-share data)

This document contains non-GAAP financial measures. The table below presents reconciliations of certain non-GAAP measures. These reconciliations exclude restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Restructuring charges and special items include expenses related to our efforts to improve processes and enhance efficiencies, as well as rebranding, separation from RBS and regulatory expenses.

The non-GAAP measures set forth below include “total revenue”, “noninterest income”, “ noninterest expense”, “pre-provision profit”, “income before income tax expense (benefit)”, “income tax expense (benefit)”, “net income (loss)”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income (loss) per average common share”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “tangible book value per common share”, “return on average tangible common equity”, “return on average total tangible assets” and “efficiency ratio” as part of our non-GAAP measures. Additionally, “pro forma Basel III fully phased-in common equity tier 1 capital” computations for periods prior to 1Q15 are presented as part of our non-GAAP measures.

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 restructuring charges and special items in any period do not reflect the operational performance of the business in that period and, accordingly, it is useful to consider these line items with and without restructuring charges and special items. We believe this presentation also increases comparability of period-to-period results.

We also consider pro forma capital ratios defined by banking regulators but not effective at each period end to be non-GAAP financial measures. Since analysts and banking regulators may assess our capital adequacy using these pro forma ratios, we believe they are useful to provide investors the ability to assess our capital adequacy on the same basis.

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.


		QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																	2Q15 Change																		2015 Change
		2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																	$			%			$			%									$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	360		$	347		$	339		$	341		$	640		$	13			4	%	($	280	)		(44	%)	$	707		$	998		($	291	)		(29	%)
Less: Special items - Chicago gain			—			—			—			—			288			—			—			(288	)		(100	)		—			288			(288	)		(100	)

Noninterest income, excluding special items (non-GAAP)	B	$	360		$	347		$	339		$	341		$	352		$	13			4	%	$	8			2	%	$	707		$	710		($	3	)		—	%

Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,200		$	1,183		$	1,179		$	1,161		$	1,473		$	17			1	%	($	273	)		(19	%)	$	2,383		$	2,639		($	256	)		(10	%)
Less: Special items - Chicago gain			—			—			—			—			288			—			—			(288	)		(100	)		—			288			(288	)		(100	)

Total revenue, excluding special items (non-GAAP)	D	$	1,200		$	1,183		$	1,179		$	1,161		$	1,185		$	17			1	%	$	15			1	%	$	2,383		$	2,351		$	32			1	%

Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	841		$	810		$	824		$	810		$	948		$	31			4	%	($	107	)		(11	%)	$	1,651		$	1,758		($	107	)		(6	%)
Less: Restructuring charges and special items	LL		40			10			33			21			115			30			300			(75	)		(65	)		50			115			(65	)		(57	)

Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	801		$	800		$	791		$	789		$	833		$	1			—	%	($	32	)		(4	%)	$	1,601		$	1,643		($	42	)		(3	%)

Net income, excluding restructuring charges and special items:
Net income (GAAP)	G	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	%)	($	123	)		(39	%)	$	399		$	479		($	80	)		(17	%)
Add: Restructuring charges and special items, net of income tax expense (benefit)			25			6			20			13			(108	)		19			317			133			123			31			(108	)		139			129

Net income, excluding restructuring charges and special items (non-GAAP)	H	$	215		$	215		$	217		$	202		$	205		$	—			—	%	$	10			5	%	$	430		$	371		$	59			16	%

Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,391		$	19,407		$	19,209		$	19,411		$	19,607		($	16	)		—	%	($	216	)		(1	%)	$	19,399		$	19,489		($	90	)		—	%
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	H/I		4.45	%		4.49	%		4.48	%		4.14	%		4.19	%		(4	) bps		—			26	bps		—			4.47	%		3.84	%		63	bps		—

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																	2Q15 Change																		2015 Change
		2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015			2014			2014
																	$			%			$			%									$			%
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,391		$	19,407		$	19,209		$	19,411		$	19,607		($	16	)		—	%	($	216	)		(1	%)	$	19,399		$	19,489		($	90	)		—	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			5			5			6			6			7			—			—			(2	)		(29	)		5			7			(2	)		(29	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			437			422			403			384			369			15			4			68			18			430			360			70			19

Average tangible common equity (non-GAAP)	J	$	12,947		$	12,948		$	12,730		$	12,913		$	13,093		($	1	)		—	%	($	146	)		(1	%)	$	12,948		$	12,966		($	18	)		—	%

Return on average tangible common equity (non- GAAP)	G/J		5.90	%		6.53	%		6.12	%		5.81	%		9.59	%		(63	) bps		—			(369	) bps		—			6.21	%		7.45	%		(124	) bps		—
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	H/J		6.67	%		6.73	%		6.76	%		6.22	%		6.28	%		(6	) bps		—			39	bps		—			6.70	%		5.77	%		93	bps		—
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	135,521		$	133,325		$	130,671		$	128,691		$	127,148		$	2,196			2	%	$	8,373			7	%	$	134,429		$	125,535		$	8,894			7	%
Return on average total assets, excluding restructuring charges and special items (non- GAAP)	H/K		0.64	%		0.65	%		0.66	%		0.62	%		0.65	%		(1	) bps					(1	) bps		—			0.65	%		0.60	%		5	bps		—
Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	135,521		$	133,325		$	130,671		$	128,691		$	127,148		$	2,196			2	%	$	8,373			7	%	$	134,429		$	125,535		$	8,894			7	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			5			5			6			6			7			—			—			(2	)		(29	)		5			7			(2	)		(29	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			437			422			403			384			369			15			4			68			18			430			360			70			19

Average tangible assets (non-GAAP)	L	$	129,077		$	126,866		$	124,192		$	122,193		$	120,634		$	2,211			2	%	$	8,443			7	%	$	127,978		$	119,012		$	8,966			8	%

Return on average total tangible assets (non-GAAP)	G/L		0.59	%		0.67	%		0.63	%		0.61	%		1.04	%		(8	) bps		—			(45	) bps		—			0.63	%		0.81	%		(18	) bps		—
Return on average total tangible assets, excluding restructuring charges and special items (non- GAAP)	H/L		0.67	%		0.69	%		0.69	%		0.66	%		0.68	%		(2	) bps		—			(1	) bps		—			0.68	%		0.63	%		5	bps		—
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	840		$	836		$	840		$	820		$	833		$	4			—	%	$	7			1	%	$	1,676		$	1,641		$	35			2	%
Add: Noninterest income (GAAP)			360			347			339			341			640			13			4			(280	)		(44	)		707			998			(291	)		(29	)

Total revenue (GAAP)	C	$	1,200		$	1,183		$	1,179		$	1,161		$	1,473		$	17			1	%	($	273	)		(19	%)	$	2,383		$	2,639		($	256	)		(10	%)

Efficiency ratio (non-GAAP)	E/C		70.02	%		68.49	%		69.88	%		69.84	%		64.33	%		153	bps		—			569	bps		—			69.27	%		66.58	%		269	bps		—
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		66.70	%		67.65	%		67.11	%		68.02	%		70.23	%		(95	) bps		—			(353	) bps		—			67.17	%		69.83	%		(266	) bps		—
Tangible book value per common share:
Common shares - at end of period (GAAP)	M		537,149,717			547,490,812			545,884,519			559,998,324			559,998,324			(10,341,095	)		(2	)%		(22,848,607	)		(4	)%		537,149,717			559,998,324			(22,848,607	)		(4	%)
Stockholders’ equity (GAAP)		$	19,339		$	19,564		$	19,268		$	19,383		$	19,597		($	225	)		(1	)	($	258	)		(1	)	$	19,339		$	19,597		($	258	)		(1	)
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Other intangible assets (GAAP)			4			5			6			6			7			(1	)		(20	)		(3	)		(43	)		4			7			(3	)		(43	)
Add: Deferred tax liabilities related to goodwill (GAAP)			450			434			420			399			384			16			4			66			17			450			384			66			17

Tangible common equity (non-GAAP)	N	$	12,909		$	13,117		$	12,806		$	12,900		$	13,098		($	208	)		(2	%)	($	189	)		(1	%)	$	12,909		$	13,098		($	189	)		(1	%)

Tangible book value per common share (non- GAAP)	N/M	$	24.03		$	23.96		$	23.46		$	23.04		$	23.39		$	0.07			—	%	$	0.64			3	%	$	24.03		$	23.39		$	0.64			3	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																	2Q15 Change																2015 Change
		2Q15			1Q15			4Q14			3Q14			2Q14			1Q15						2Q14						2015		2014		2014
																	$			%			$			%							$			%
Net income per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	O		537,729,248			546,291,363			546,810,009			559,998,324			559,998,324			(8,562,115	)		(2	%)		(22,269,076	)		(4	%)		541,986,653		559,998,324		(18,011,671	)		(3	%)
Average common shares outstanding - diluted (GAAP)	P		539,909,366			549,798,717			550,676,298			560,243,747			559,998,324			(9,889,351	)		(2	)		(20,088,958	)		(4	)		544,804,268		559,998,324		(15,194,056	)		(3	)
Net income applicable to common stockholders (GAAP)	Q	$	190		$	209		$	197		$	189		$	313		($	19	)		(9	)	($	123	)		(39	)	$	399	$	479	($	80	)		(17	)
Net income per average common share - basic (GAAP)	Q/O		0.35			0.38			0.36			0.34			0.56			(0.03	)		(8	)		(0.21	)		(38	)		0.74		0.86		(0.12	)		(14	)
Net income per average common share - diluted (GAAP)	Q/P		0.35			0.38			0.36			0.34			0.56			(0.03	)		(8	)		(0.21	)		(38	)		0.73		0.86		(0.13	)		(15	)
Net income applicable to common stockholders, excluding restructuring charges and special items (non-GAAP)	R		215			215			217			202			205			—			—			10			5			430		371		59			16
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	R/O		0.40			0.39			0.40			0.36			0.37			0.01			3			0.03			8			0.79		0.66		0.13			20
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	R/P		0.40			0.39			0.39			0.36			0.37			0.01			3			0.03			8			0.79		0.66		0.13			20
Pro forma Basel III fully phased-in common equity tier 1 capital ratio¹:
Common equity tier 1 (regulatory)		$	13,270		$	13,360		$	13,173		$	13,330		$	13,448
Less: Change in DTA and other threshold deductions (GAAP)			3			3			(6	)		(5	)		(7	)

Pro forma Basel III fully phased-in common equity tier 1 (non-GAAP)	S	$	13,267		$	13,357		$	13,179		$	13,335		$	13,455

Risk-weighted assets (regulatory general risk weight approach)			112,131			109,786			105,964			103,207			101,397
Add: Net change in credit and other risk-weighted assets (regulatory)			247			242			2,882			3,207			2,383

Basel III standardized approach risk-weighted assets (non-GAAP)	T	$	112,378		$	110,028		$	108,846		$	106,414		$	103,780

Pro forma Basel III fully phased-in common equity tier 1 capital ratio (non-GAAP)¹	S/T		11.8	%		12.1	%		12.1	%		12.5	%		13.0	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	U	$	411		$	419		$	397		$	409		$	467		($	8	)		(2	%)	($	56	)		(12	%)	$	830	$	872	($	42	)		(5	%)
Less: Restructuring charges and special items			6			(1	)		1			—			43			7			700			(37	)		(86	)		5		43		(38	)		(88	)

Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	V	$	405		$	420		$	396		$	409		$	424		($	15	)		(4	%)	($	19	)		(4	%)	$	825	$	829	($	4	)		—	%

Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	W	$	99		$	79		$	106		$	106		$	125		$	20			25	%	($	26	)		(21	%)	$	178	$	208	($	30	)		(14	%)
Less: Restructuring charges and special items			16			8			18			19			41			8			100			(25	)		(61	)		24		41		(17	)		(41	)

Outside services, excluding restructuring charges and special items (non-GAAP)	X	$	83		$	71		$	88		$	87		$	84		$	12			17	%	($	1	)		(1	%)	$	154	$	167	($	13	)		(8	%)

Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	Y	$	90		$	80		$	81		$	77		$	87		$	10			13	%	$	3			3	%	$	170	$	168	$	2			1	%
Less: Restructuring charges and special items			15			2			5			2			9			13			650			6			67			17		9		8			89

Occupancy, excluding restructuring charges and special items (non-GAAP)	Z	$	75		$	78		$	76		$	75		$	78		($	3	)		(4	%)	($	3	)		(4	%)	$	153	$	159	($	6	)		(4	%)

Periods prior to 1Q15 reported on a Basel I basis. Basel III ratios assume certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2018, are fully phased-in. Ratios also reflect the required US Standardized methodology for calculating RWAs, effective January 1, 2015.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																										FOR THE SIX MONTHS ENDED JUNE 30,
																2Q15 Change																	2015 Change
		2Q15			1Q15			4Q14			3Q14			2Q14		1Q15						2Q14						2015			2014		2014
																$			%			$			%								$			%
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	AA	$	65		$	63		$	63		$	58		$	65	$	2			3	%	$	—			—	%	$	128		$	129	($	1	)		(1	%)
Less: Restructuring charges and special items			—			1			1			—			3		(1	)		(100	)		(3	)		(100	)		1			3		(2	)		(67	)

Equipment expense, excluding restructuring charges and special items (non-GAAP)	BB	$	65		$	62		$	62		$	58		$	62	$	3			5	%	$	3			5	%	$	127		$	126	$	1			1	%

Amortization of software, excluding restructuring charges and special items:
Amortization of software	CC	$	37		$	36		$	43		$	38		$	33	$	1			3	%	$	4			12	%	$	73		$	64	$	9			14	%
Less: Restructuring charges and special items			—			—			6			—			—		—			—			—			—			—			—		—			—

Amortization of software, excluding restructuring charges and special items (non- GAAP)	DD	$	37		$	36		$	37		$	38		$	33	$	1			3	%	$	4			12	%	$	73		$	64	$	9			14	%

Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	EE	$	139		$	133		$	134		$	122		$	171	$	6			5	%	($	32	)		(19	%)	$	272		$	317	($	45	)		(14	%)
Less: Restructuring charges and special items			3			—			2			—			19		3			—			(16	)		(84	)		3			19		(16	)		(84	)

Other operating expense, excluding restructuring charges and special items (non- GAAP)	FF	$	136		$	133		$	132		$	122		$	152	$	3			2	%	($	16	)		(11	%)	$	269		$	298	($	29	)		(10	%)

Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,200		$	1,183		$	1,179		$	1,161		$	1,185	$	17			1	%	$	15			1	%	$	2,383		$	2,351	$	32			1	%
Less: Noninterest expense, excluding restructuring charges and special items (non- GAAP)	F		801			800			791			789			833		1			—			(32	)		(4	)		1,601			1,643		(42	)		(3	)

Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	GG	$	399		$	383		$	388		$	372		$	352	$	16			4	%	$	47			13	%	$	782		$	708	$	74			10	%

Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (GAAP)	HH	$	282		$	315		$	283		$	274		$	476	($	33	)		(10	%)	($	194	)		(41	%)	$	597		$	711	($	114	)		(16	%)
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			(40	)		(10	)		(33	)		(21	)		173		(30	)		(300	)		(213	)		(123	)		(50	)		173		(223	)		(129	)

Income before income tax expense, excluding restructuring charges and special items (non-GAAP)	II	$	322		$	325		$	316		$	295		$	303	($	3	)		(1	%)	$	19			6	%	$	647		$	538	$	109			20	%

Income tax expense, excluding restructuring charges and special items:
Income tax expense (GAAP)	JJ	$	92		$	106		$	86		$	85		$	163	($	14	)		(13	%)	($	71	)		(44	%)	$	198		$	232	($	34	)		(15	%)
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			(15	)		(4	)		(13	)		(8	)		65		(11	)		(275	)		(80	)		(123	)		(19	)		65		(84	)		(129	)

Income tax expense, excluding restructuring charges and special items (non-GAAP)	KK	$	107		$	110		$	99		$	93		$	98	($	3	)		(3	%)	$	9			9	%	$	217		$	167	$	50			30	%

Restructuring charges and special expense items include:
Restructuring charges		$	25		$	1		$	10		$	1		$	103	$	24			2,400	%	($	78	)		(76	%)		26			103		(77	)		(75	%)
Special items			15			9			23			20			12		6			67			3			25			24			12		12			100

Restructuring charges and special expense items	LL	$	40		$	10		$	33		$	21		$	115	$	30			300	%	($	75	)		(65	%)	$	50		$	115	($	65	)		(57	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(dollars in millions)


		Three Months Ended June 30,												Three Months Ended March 31,											Three Months Ended December 31,
		2015												2015											2014
		Consumer			Commercial									Consumer			Commercial								Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other		Consolidated			Banking			Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	66		$	135		($	11	)	$	190		$	61		$	147		$	1	$	209		$	52		$	140		$	5	$	197
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,681		$	4,625		$	10,085		$	19,391		$	4,649		$	4,526		$	10,232	$	19,407		$	4,756		$	4,334		$	10,119	$	19,209
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			5		5			—			—			6		6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			437			437			—			—			422		422			—			—			403		403

Average tangible common equity (non-GAAP)	C	$	4,681		$	4,625		$	3,641		$	12,947		$	4,649		$	4,526		$	3,773	$	12,948		$	4,756		$	4,334		$	3,640	$	12,730

Return on average tangible common equity (non-GAAP)	A/C		5.66	%		11.69	%		NM			5.90	%		5.30	%		13.15	%		NM		6.53	%		4.30	%		12.76	%		NM		6.12	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	52,489		$	42,617		$	40,415		$	135,521		$	51,602		$	41,606		$	40,117	$	133,325		$	50,546		$	40,061		$	40,064	$	130,671
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			5		5			—			—			6		6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			437			437			—			—			422		422			—			—			403		403

Average tangible assets (non-GAAP)	E	$	52,489		$	42,617		$	33,971		$	129,077		$	51,602		$	41,606		$	33,658	$	126,866		$	50,546		$	40,061		$	33,585	$	124,192

Return on average total tangible assets (non-GAAP)	A/E		0.51	%		1.27	%		NM			0.59	%		0.48	%		1.43	%		NM		0.67	%		0.40	%		1.38	%		NM		0.63	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	613		$	181		$	47		$	841		$	596		$	173		$	41	$	810		$	611		$	180		$	33	$	824
Net interest income (GAAP)			544			286			10			840			533			276			27		836			536			283			21		840
Noninterest income (GAAP)			230			108			22			360			219			100			28		347			218			111			10		339

Total revenue	G	$	774		$	394		$	32		$	1,200		$	752		$	376		$	55	$	1,183		$	754		$	394		$	31	$	1,179

Efficiency ratio (non-GAAP)	F/G		79.25	%		46.07	%		NM			70.02	%		79.25	%		46.01	%		NM		68.49	%		81.09	%		45.48	%		NM		69.88	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)


		Three Months Ended September 30,												Three Months Ended June 30,
		2014												2014
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	54		$	139		($	4	)	$	189		$	44		$	141		$	128	$	313
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,685		$	4,205		$	10,521		$	19,411		$	4,640		$	4,129		$	10,838	$	19,607
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			6			6			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			384			384			—			—			369		369

Average tangible common equity (non-GAAP)	C	$	4,685		$	4,205		$	4,023		$	12,913		$	4,640		$	4,129		$	4,324	$	13,093

Return on average tangible common equity (non-GAAP)	A/C		4.57	%		13.10	%		NM			5.81	%		3.87	%		13.78	%		NM		9.59	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	49,012		$	38,854		$	40,825		$	128,691		$	48,556		$	38,022		$	40,570	$	127,148
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			6			6			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			384			384			—			—			369		369

Average tangible assets (non-GAAP)	E	$	49,012		$	38,854		$	34,327		$	122,193		$	48,556		$	38,022		$	34,056	$	120,634

Return on average total tangible assets (non-GAAP)	A/E		0.44	%		1.42	%		NM			0.61	%		0.37	%		1.50	%		NM		1.04	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	609		$	162		$	39		$	810		$	655		$	157		$	136	$	948
Net interest income (GAAP)			532			270			18			820			546			264			23		833
Noninterest income (GAAP)			226			104			11			341			236			107			297		640

Total revenue	G	$	758		$	374		$	29		$	1,161		$	782		$	371		$	320	$	1,473

Efficiency ratio (non-GAAP)	F/G		80.42	%		43.35	%		NM			69.84	%		83.61	%		42.36	%		NM		64.33	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)


		FOR THE SIX MONTHS ENDED JUNE 30,
		2015												2014
		Consumer			Commercial									Consumer			Commercial
		Banking			Banking			Other			Consolidated			Banking			Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	127		$	282		($	10	)	$	399		$	76		$	282		$	121	$	479
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,665		$	4,576		$	10,158		$	19,399		$	4,609		$	4,076		$	10,804	$	19,489
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			430			430			—			—			360		360

Average tangible common equity (non-GAAP)	C	$	4,665		$	4,576		$	3,707		$	12,948		$	4,609		$	4,076		$	4,281	$	12,966

Return on average tangible common equity (non-GAAP)	A/C		5.48	%		12.41	%		NM			6.21	%		3.35	%		13.97	%		NM		7.45	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	52,048		$	42,114		$	40,267		$	134,429		$	48,085		$	37,491		$	39,959	$	125,535
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			5			5			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			430			430			—			—			360		360

Average tangible assets (non-GAAP)	E	$	52,048		$	42,114		$	33,816		$	127,978		$	48,085		$	37,491		$	33,436	$	119,012

Return on average total tangible assets (non-GAAP)	A/E		0.49	%		1.35	%		NM			0.63	%		0.32	%		1.52	%		NM		0.81	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	1,209		$	354		$	88		$	1,651		$	1,293		$	310		$	155	$	1,758
Net interest income (GAAP)			1,077			562			37			1,676			1,083			520			38		1,641
Noninterest income (GAAP)			449			208			50			707			455			214			329		998

Total revenue	G	$	1,526		$	770		$	87		$	2,383		$	1,538		$	734		$	367	$	2,639

Efficiency ratio (non-GAAP)	F/G		79.25	%		46.04	%		NM			69.27	%		84.00	%		42.25	%		NM		66.58	%

FORWARD-LOOKING STATEMENTS

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,” “projects,” “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:

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negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense;

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the rate of growth in the economy and employment levels, as well as general business and economic conditions;

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our ability to implement our strategic plan, including the cost savings and efficiency components, and achieve our indicative performance targets;

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our ability to remedy regulatory deficiencies and meet supervisory requirements and expectations;

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liabilities resulting from litigation and regulatory investigations;

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our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

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the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

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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;

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the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

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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;

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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;

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

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any failure by us to successfully replicate or replace certain functions, systems and infrastructure provided by The Royal Bank of Scotland Group plc (RBS Group).

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. In addition, the timing and manner of the sale of RBS Group’s remaining ownership of our common stock remains uncertain, and we have no control over the manner in which RBS Group may seek to divest such remaining shares. Any such sale would impact the price of our shares of common stock.

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 filed with the United States Securities and Exchange Commission on March 3, 2015.

CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.1 - July 28, 2015

Attached files

CITIZENS FINANCIAL GROUP INC/RI Reports