CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.3

Attached files

file	filename
8-K - FORM 8-K - CITIZENS FINANCIAL GROUP INC/RI	d50192d8k.htm
EX-99.1 - EX-99.1 - CITIZENS FINANCIAL GROUP INC/RI	d50192dex991.htm
EX-99.2 - EX-99.2 - CITIZENS FINANCIAL GROUP INC/RI	d50192dex992.htm

Exhibit 99.3

LOGO

Citizens Financial Group, Inc.

Financial Supplement

Third 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 NINE MONTHS ENDED SEPT 30,
													3Q15 Change																	2015 Change
	3Q15		2Q15			1Q15		4Q14		3Q14			2Q15						3Q14						2015			2014		2014
													$			%			$			%								$			%
SELECTED OPERATING DATA
Total revenue	$	1,209	$	1,200		$	1,183	$	1,179	$	1,161		$	9			1	%	$	48			4	%	$	3,592		$	3,800	($	208	)		(5	%)
Noninterest expense		798		841			810		824		810			(43	)		(5	)		(12	)		(1	)		2,449			2,568		(119	)		(5	)

Profit before provision for credit losses		411		359			373		355		351			52			14			60			17			1,143			1,232		(89	)		(7	)
Provision for credit losses		76		77			58		72		77			(1	)		(1	)		(1	)		(1	)		211			247		(36	)		(15	)
NET INCOME		220		190			209		197		189			30			16			31			16			619			668		(49	)		(7	)
Net income, excluding restructuring charges and special items¹		220		215			215		217		202			5			2			18			9			650			573		77			13
Net income available to common stockholders		213		190			209		197		189			23			12			24			13			612			668		(56	)		(8	)
Net income available to common stockholders, excluding restructuring charges and special items¹		213		215			215		217		202			(2	)		(1	)		11			5			643			573		70			12
PER COMMON SHARE DATA
Basic earnings	$	0.40	$	0.35		$	0.38	$	0.36	$	0.34		$	0.05			14	%	$	0.06			18	%	$	1.14		$	1.19	($	0.05	)		(4	%)
Diluted earnings		0.40		0.35			0.38		0.36		0.34			0.05			14			0.06			18			1.13			1.19		(0.06	)		(5	)
Basic earnings, excluding restructuring charges and special items¹		0.40		0.40			0.39		0.40		0.36			—			—			0.04			11			1.20			1.02		0.18			18
Diluted earnings, excluding restructuring charges and special items¹		0.40		0.40			0.39		0.39		0.36			—			—			0.04			11			1.19			1.02		0.17			17
Cash dividends declared and paid per share		0.10		0.10			0.10		0.10		0.68			—			—			(0.58	)		(85	)		0.30			1.34		(1.04	)		(78	)
Book value		36.68		36.00			35.73		35.30		34.61			0.68			2			2.07			6			36.68			34.61		2.07			6
Tangible book value¹		24.52		24.03			23.96		23.46		23.04			0.49			2			1.48			6			24.52			23.04		1.48			6
COMMON SHARES OUTSTANDING
Average: Basic		530,985,255		537,729,248			546,291,363		546,810,009		559,998,324			(6,743,993	)		(1	%)		(29,013,069	)		(5	%)		538,279,222			559,998,324		(21,719,102	)		(4	%)
Diluted		533,398,158		539,909,366			549,798,717		550,676,298		560,243,747			(6,511,208	)		(1	)		(26,845,589	)		(5	)		540,926,361			560,081,031		(19,154,670	)		(3	)
Common shares at period-end		527,636,510		537,149,717			547,490,812		545,884,519		559,998,324			(9,513,207	)		(2	)		(32,361,814	)		(6	)		527,636,510			559,998,324		(32,361,814	)		(6	)
Closing share price	$	23.86	$	27.31		$	24.13	$	24.86	$	23.42		($	3.45	)		(13	)	$	0.44			2		$	23.86		$	23.42	$	0.44			2
Market capitalization		12,589		14,670			13,211		13,571		13,115			(2,081	)		(14	)		(526	)		(4	)		12,589			13,115		(526	)		(4	)
SEGMENT NET INCOME
Consumer Banking	$	68	$	66		$	61	$	52	$	54		$	2			3	%	$	14			26	%	$	195		$	130	$	65			50	%
Commercial Banking		145		135			147		140		139			10			7			6			4			427			421		6			1
Other		7		(11	)		1		5		(4	)		18			164			11			275			(3	)		117		(120	)		(103	)

NET INCOME	$	220	$	190		$	209	$	197	$	189		$	30			16	%	$	31			16	%	$	619		$	668	($	49	)		(7	%)

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 NINE MONTHS ENDED SEPT 30,
																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
FINANCIAL RATIOS
Net interest margin		2.76	%		2.72	%		2.77	%		2.80	%		2.77	%		4	bps					(1	) bps					2.75	%		2.84	%		(9	) bps
Return on average common equity		4.40			3.94			4.36			4.06			3.87			46	bps					53	bps					4.23			4.59			(36	) bps
Return on average common equity, excluding restructuring charges and special items¹		4.40			4.45			4.49			4.48			4.14			(5	) bps					26	bps					4.45			3.94			51	bps
Return on average tangible common equity¹		6.60			5.90			6.53			6.12			5.81			70	bps					79	bps					6.34			6.90			(56	) bps
Return on average tangible common equity, excluding restructuring charges and special items¹		6.60			6.67			6.73			6.76			6.22			(7	) bps					38	bps					6.67			5.92			75	bps
Return on average total assets		0.65			0.56			0.63			0.60			0.58			9	bps					7	bps					0.62			0.71			(9	) bps
Return on average total assets, excluding restructuring charges and special items¹		0.65			0.64			0.65			0.66			0.62			1	bps					3	bps					0.65			0.61			4	bps
Return on average total tangible assets¹		0.68			0.59			0.67			0.63			0.61			9	bps					7	bps					0.65			0.74			(9	) bps
Return on average total tangible assets, excluding restructuring charges and special items¹		0.68			0.67			0.69			0.69			0.66			1	bps					2	bps					0.68			0.64			4	bps
Effective income tax rate		34.12			32.69			33.68			30.56			30.81			143	bps					331	bps					33.54			32.16			138	bps
Efficiency ratio¹		66.02			70.02			68.49			69.88			69.84			(400	) bps					(382	) bps					68.17			67.58			59	bps
Efficiency ratio, excluding restructuring charges and special items¹		66.02			66.70			67.65			67.11			68.02			(68	) bps					(200	) bps					66.78			69.23			(245	) bps
CAPITAL RATIOS - PERIOD END (PRELIMINARY)²
CET1 capital ratio³		11.8	%		11.8	%		12.2	%		12.4	%		12.9	%
Tier 1 capital ratio		12.0			12.1			12.2			12.4			12.9
Total capital ratio		15.4			15.3			15.5			15.8			16.1
Tier 1 leverage ratio		10.4			10.4			10.5			10.6			10.9
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	135,447		$	137,251		$	136,535		$	132,857		$	131,341		($	1,804	)		(1	%)	$	4,106			3	%	$	135,447		$	131,341		$	4,106			3	%
Loans and leases:
Commercial		45,269			45,068			43,982			43,226			41,470			201			—			3,799			9			45,269			41,470			3,799			9
Retail		52,162			51,470			50,512			50,184			49,279			692			1			2,883			6			52,162			49,279			2,883			6

Total loans and leases		97,431			96,538			94,494			93,410			90,749			893			1			6,682			7			97,431			90,749			6,682			7
Deposits	$	101,866		$	100,615		$	98,990		$	95,707		$	93,463		$	1,251			1		$	8,403			9		$	101,866		$	93,463		$	8,403			9
Long-term borrowed funds		4,153			3,890			3,904			4,642			2,062			263			7			2,091			101			4,153			2,075			2,078			100
Total stockholders’ equity		19,600			19,586			19,564			19,268			19,383			14			—			217			1			19,600			19,383			217			1
Loans-to-deposits ratio (period-end balances)⁴		96.06	%		96.64	%		95.84	%		97.89	%		97.32	%		(58	) bps					(126	) bps					96.06	%		97.32	%		(126	) bps
Loans-to-deposits ratio (average balances)⁴		96.29			97.49			98.58			97.34			98.01			(120	) bps					(172	) bps					97.43			96.82			61	bps
Full-time equivalent employees		17,817			17,903			17,792			17,677			17,852			(86	)		—			(35	)		—			17,817			17,852			(35	)		—

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 after January 1, 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 NINE MONTHS ENDED SEPT 30,
											3Q15 Change																2015 Change
	3Q15		2Q15		1Q15		4Q14		3Q14		2Q15						3Q14						2015		2014		2014
											$			%			$			%							$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	812	$	790	$	779	$	777	$	754	$	22			3	%	$	58			8	%	$	2,381	$	2,235	$	146			7	%
Interest and fees on loans held for sale		3		3		2		1		2		—			—			1			50			8		4		4			100
Interest and fees on other loans held for sale		3		3		1		1		—		—			—			3			—			7		22		(15	)		(68	)
Investment securities		154		155		159		161		155		(1	)		(1	)		(1	)		(1	)		468		458		10			2
Interest-bearing deposits in banks		2		1		1		1		2		1			100			—			—			4		4		—			—

Total interest income		974		952		942		941		913		22			2			61			7			2,868		2,723		145			5

INTEREST EXPENSE:
Deposits		65		60		52		48		41		5			8			24			59			177		108		69			64
Deposits held for sale		—		—		—		—		—		—			—			—			—			—		4		(4	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase		4		2		7		7		9		2			100			(5	)		(56	)		13		25		(12	)		(48	)
Other short-term borrowed funds		17		19		15		19		21		(2	)		(11	)		(4	)		(19	)		51		70		(19	)		(27	)
Long-term borrowed funds		32		31		32		27		22		1			3			10			45			95		55		40			73

Total interest expense		118		112		106		101		93		6			5			25			27			336		262		74			28

Net interest income		856		840		836		840		820		16			2			36			4			2,532		2,461		71			3

NONINTEREST INCOME:
Service charges and fees		145		139		135		144		144		6			4			1			1			419		430		(11	)		(3	)
Card fees		60		60		52		58		58		—			—			2			3			172		175		(3	)		(2	)
Trust and investment services fees		41		41		36		38		39		—			—			2			5			118		120		(2	)		(2	)
Mortgage banking fees		18		30		33		16		21		(12	)		(40	)		(3	)		(14	)		81		55		26			47
Capital markets fees		21		30		22		25		22		(9	)		(30	)		(1	)		(5	)		73		66		7			11
Foreign exchange and trade finance fees		22		22		23		25		26		—			—			(4	)		(15	)		67		70		(3	)		(4	)
Bank-owned life insurance income		14		14		12		13		13		—			—			1			8			40		36		4			11
Securities gains, net		2		9		8		1		2		(7	)		(78	)		—			—			19		27		(8	)		(30	)
Other income		30		15		26		19		16		15			100			14			88			71		360		(289	)		(80	)

Total noninterest income		353		360		347		339		341		(7	)		(2	)		12			4			1,060		1,339		(279	)		(21	)

TOTAL REVENUE		1,209		1,200		1,183		1,179		1,161		9			1			48			4			3,592		3,800		(208	)		(5	)
Provision for credit losses		76		77		58		72		77		(1	)		(1	)		(1	)		(1	)		211		247		(36	)		(15	)
NONINTEREST EXPENSE:
Salaries and employee benefits		404		411		419		397		409		(7	)		(2	)		(5	)		(1	)		1,234		1,281		(47	)		(4	)
Outside services		89		99		79		106		106		(10	)		(10	)		(17	)		(16	)		267		314		(47	)		(15	)
Occupancy		75		90		80		81		77		(15	)		(17	)		(2	)		(3	)		245		245		—			—
Equipment expense		62		65		63		63		58		(3	)		(5	)		4			7			190		187		3			2
Amortization of software		35		37		36		43		38		(2	)		(5	)		(3	)		(8	)		108		102		6			6
Other operating expense		133		139		133		134		122		(6	)		(4	)		11			9			405		439		(34	)		(8	)

Total noninterest expense		798		841		810		824		810		(43	)		(5	)		(12	)		(1	)		2,449		2,568		(119	)		(5	)

Income before income tax expense		335		282		315		283		274		53			19			61			22			932		985		(53	)		(5	)
Income tax expense		115		92		106		86		85		23			25			30			35			313		317		(4	)		(1	)

NET INCOME	$	220	$	190	$	209	$	197	$	189	$	30			16	%	$	31			16	%	$	619	$	668	($	49	)		(7	%)

Net income, excluding restructuring charges and special items¹	$	220	$	215	$	215	$	217	$	202	$	5			2	%	$	18			9	%	$	650	$	573	$	77			13	%

Net income available to common stockholders	$	213	$	190	$	209	$	197	$	189	$	23			12	%	$	24			13		$	612	$	668	($	56	)		(8	)

Net income available to common stockholders, excluding restructuring charges and special items¹	$	213	$	215	$	215	$	217	$	202	($	2	)		(1	%)	$	11			5	%	$	643	$	573	$	70			12	%

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															SEPT 30, 2015 CHANGE
	Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2015						Sept 30, 2014
																$			%			$			%
ASSETS:
Cash and due from banks	$	1,067		$	961		$	954		$	1,171		$	993		$	106			11	%	$	74			7	%
Interest-bearing cash and due from banks		689			1,908			4,050			2,105			1,896			(1,219	)		(64	)		(1,207	)		(64	)
Interest-bearing deposits in banks		363			186			615			370			292			177			95			71			24
Securities available for sale, at fair value		18,197			18,662			19,041			18,656			18,666			(465	)		(2	)		(469	)		(3	)
Securities held to maturity		5,285			5,567			5,178			5,148			5,289			(282	)		(5	)		(4	)		—
Trading securities		45			38			35			28			37			7			18			8			22
Other investment securities		827			866			867			872			893			(39	)		(5	)		(66	)		(7	)
Loans held for sale, at fair value		369			397			322			256			205			(28	)		(7	)		164			80
Other loans held for sale		51			300			54			25			3			(249	)		(83	)		48			1,600
Loans and leases		97,431			96,538			94,494			93,410			90,749			893			1			6,682			7
Less: Allowance for loan and lease losses		(1,201	)		(1,201	)		(1,202	)		(1,195	)		(1,201	)		—			—			—			—

Net loans and leases		96,230			95,337			93,292			92,215			89,548			893			1			6,682			7
Derivative assets		838			665			742			629			547			173			26			291			53
Premises and equipment		560			580			584			595			541			(20	)		(3	)		19			4
Bank-owned life insurance		1,553			1,543			1,535			1,527			1,370			10			1			183			13
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		—			939			—			—			2,067			(939	)		(100	)		(2,067	)		(100	)
Other assets		2,497			2,426			2,390			2,384			2,118			71			3			379			18

TOTAL ASSETS	$	135,447		$	137,251		$	136,535		$	132,857		$	131,341		($	1,804	)		(1	%)	$	4,106			3	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	27,373		$	26,678		$	26,670		$	26,086		$	25,877		$	695			3	%	$	1,496			6	%
Interest-bearing		74,493			73,937			72,320			69,621			67,586			556			1			6,907			10

Total deposits		101,866			100,615			98,990			95,707			93,463			1,251			1			8,403			9
Federal funds purchased and securities sold under agreements to repurchase		1,293			3,784			4,421			4,276			5,184			(2,491	)		(66	)		(3,891	)		(75	)
Other short-term borrowed funds		5,861			6,762			7,004			6,253			6,715			(901	)		(13	)		(854	)		(13	)
Derivative liabilities		641			556			616			612			638			85			15			3			—
Deferred taxes, net		637			558			586			493			354			79			14			283			80
Long-term borrowed funds		4,153			3,890			3,904			4,642			2,062			263			7			2,091			101
Due to broker		—			—			61			—			2,087			—			—			(2,087	)		(100	)
Other liabilities		1,396			1,500			1,389			1,606			1,455			(104	)		(7	)		(59	)		(4	)

TOTAL LIABILITIES		115,847			117,665			116,971			113,589			111,958			(1,818	)		(2	)		3,889			3
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized		247			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		18,718			18,714			18,707			18,676			18,660			4			—			58			—
Retained earnings		1,745			1,585			1,448			1,294			1,152			160			10			593			51
Treasury stock, at cost		(857	)		(607	)		(357	)		(336	)		—			(250	)		(41	)		(857	)		—
Accumulated other comprehensive loss		(259	)		(359	)		(240	)		(372	)		(435	)		100			28			176			40

TOTAL STOCKHOLDERS’ EQUITY		19,600			19,586			19,564			19,268			19,383			14			—			217			1

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	135,447		$	137,251		$	136,535		$	132,857		$	131,341		($	1,804	)		(1	%)	$	4,106			3	%

Memo: Total tangible common equity¹	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	30			—	%	$	39			—	%

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										SEPT 30, 2015 CHANGE
	Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2015						Sept 30, 2014
											$			%			$			%
LOANS AND LEASES:
Commercial	$	32,726	$	33,027	$	32,249	$	31,431	$	30,356	($	301	)		(1	%)	$	2,370			8	%
Commercial real estate		8,678		8,157		7,863		7,809		7,239		521			6			1,439			20
Leases		3,865		3,884		3,870		3,986		3,875		(19	)		—			(10	)		—

Total commercial		45,269		45,068		43,982		43,226		41,470		201			—			3,799			9

Residential mortgages		12,792		12,253		11,808		11,832		11,265		539			4			1,527			14
Home equity loans		2,842		3,022		3,212		3,424		3,635		(180	)		(6	)		(793	)		(22	)
Home equity lines of credit		14,707		14,917		15,127		15,423		15,558		(210	)		(1	)		(851	)		(5	)
Home equity loans serviced by others¹		1,054		1,126		1,192		1,228		1,290		(72	)		(6	)		(236	)		(18	)
Home equity lines of credit serviced by others¹		441		494		544		550		580		(53	)		(11	)		(139	)		(24	)
Automobile		13,876		13,727		13,179		12,706		12,080		149			1			1,796			15
Student		3,846		3,355		2,852		2,256		2,069		491			15			1,777			86
Credit card		1,628		1,613		1,588		1,693		1,676		15			1			(48	)		(3	)
Other retail		976		963		1,010		1,072		1,126		13			1			(150	)		(13	)

Total retail		52,162		51,470		50,512		50,184		49,279		692			1			2,883			6

Total loans and leases	$	97,431	$	96,538	$	94,494	$	93,410	$	90,749	$	893			1	%	$	6,682			7	%

Loans held for sale, at fair value	$	369	$	397	$	322	$	256	$	205	($	28	)		(7	%)	$	164			80	%
Other loans held for sale		51		300		54		25		3		(249	)		(83	)		48			1,600

Loans and loans held for sale	$	97,851	$	97,235	$	94,870	$	93,691	$	90,957	$	616			1	%	$	6,894			8	%

DEPOSITS:
Demand	$	27,373	$	26,678	$	26,670	$	26,086	$	25,877	$	695			3	%	$	1,496			6	%
Checking with interest		18,350		17,114		16,738		16,394		15,449		1,236			7			2,901			19
Regular savings		8,011		8,080		8,398		7,824		7,655		(69	)		(1	)		356			5
Money market accounts		35,539		35,735		34,543		33,345		32,870		(196	)		(1	)		2,669			8
Term deposits		12,593		13,008		12,641		12,058		11,612		(415	)		(3	)		981			8

Total deposits	$	101,866	$	100,615	$	98,990	$	95,707	$	93,463	$	1,251			1		$	8,403			9

¹	Our Serviced by Others (“SBO”) portfolio consists of purchased 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 NINE MONTHS ENDED SEPT 30,
																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,322		$	2,054		$	2,092		$	1,784		$	2,685		($	732	)		(36	%)	($	1,363	)		(51	%)	$	1,820		$	2,224		($	404	)		(18	%)

Taxable investment securities		24,440			25,081			24,955			24,658			24,648			(641	)		(3	)		(208	)		(1	)		24,824			24,205			619			3
Non-taxable investment securities		9			10			10			10			10			(1	)		(10	)		(1	)		(10	)		10			11			(1	)		(9	)

Total investment securities		24,449			25,091			24,965			24,668			24,658			(642	)		(3	)		(209	)		(1	)		24,834			24,216			618			3

Investment securities and interest-bearing deposits		25,771			27,145			27,057			26,452			27,343			(1,374	)		(5	)		(1,572	)		(6	)		26,654			26,440			214			1

Commercial		32,832			32,855			31,911			30,962			30,186			(23	)		—			2,646			9			32,536			29,666			2,870			10
Commercial real estate		8,406			7,947			7,700			7,427			7,216			459			6			1,190			16			8,020			7,067			953			13
Leases		3,936			3,894			3,895			3,874			3,789			42			1			147			4			3,909			3,743			166			4

Total commercial		45,174			44,696			43,506			42,263			41,191			478			1			3,983			10			44,465			40,476			3,989			10

Residential mortgages		12,470			11,980			11,855			11,647			11,001			490			4			1,469			13			12,104			10,420			1,684			16
Home equity loans		2,928			3,138			3,332			3,527			3,743			(210	)		(7	)		(815	)		(22	)		3,117			3,994			(877	)		(22	)
Home equity lines of credit		14,813			15,084			15,310			15,490			15,572			(271	)		(2	)		(759	)		(5	)		15,059			15,572			(513	)		(3	)
Home equity loans serviced by others¹		1,086			1,134			1,193			1,252			1,317			(48	)		(4	)		(231	)		(18	)		1,151			1,386			(235	)		(17	)
Home equity lines of credit serviced by others¹		425			469			522			561			591			(44	)		(9	)		(166	)		(28	)		479			626			(147	)		(23	)
Automobile		13,810			13,484			12,933			12,403			11,438			326			2			2,372			21			13,412			10,542			2,870			27
Student		3,530			3,029			2,623			2,142			1,983			501			17			1,547			78			3,064			2,150			914			43
Credit cards		1,616			1,606			1,637			1,663			1,661			10			1			(45	)		(3	)		1,620			1,647			(27	)		(2	)
Other retail		939			986			1,041			1,097			1,153			(47	)		(5	)		(214	)		(19	)		988			1,216			(228	)		(19	)

Total retail		51,617			50,910			50,446			49,782			48,459			707			1			3,158			7			50,994			47,553			3,441			7

Total loans and leases		96,791			95,606			93,952			92,045			89,650			1,185			1			7,141			8			95,459			88,029			7,430			8
Loans held for sale, at fair value		327			308			242			213			176			19			6			151			86			293			146			147			101
Other loans held for sale		128			146			91			20			27			(18	)		(12	)		101			374			122			715			(593	)		(83	)

Interest-earning assets		123,017			123,205			121,342			118,730			117,196			(188	)		—			5,821			5			122,528			115,330			7,198			6
Allowance for loan and lease losses		(1,197	)		(1,198	)		(1,192	)		(1,195	)		(1,202	)		1			—			5			—			(1,196	)		(1,242	)		46			4
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Other noninterest-earning assets		6,407			6,638			6,299			6,260			5,821			(231	)		(3	)		586			10			6,447			5,634			813			14

Total noninterest-earning assets		12,086			12,316			11,983			11,941			11,495			(230	)		(2	)		591			5			12,127			11,268			859			8

TOTAL ASSETS	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	16,934		$	16,561		$	16,039		$	15,718		$	15,155		$	373			2	%	$	1,779			12	%	$	16,515		$	14,099		$	2,416			17	%
Money market and savings		44,572			42,977			41,666			40,856			40,096			1,595			4			4,476			11			43,082			39,149			3,933			10
Term deposits		12,730			12,576			12,184			11,892			10,596			154			1			2,134			20			12,498			9,786			2,712			28

Total interest-bearing deposits		74,236			72,114			69,889			68,466			65,847			2,122			3			8,389			13			72,095			63,034			9,061			14
Interest-bearing deposits held for sale		—			—			—			—			—			—			—			—			—			—			2,621			(2,621	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase²		2,880			4,372			4,607			5,075			6,305			(1,492	)		(34	)		(3,425	)		(54	)		3,947			5,908			(1,961	)		(33	)
Other short-term borrowed funds		5,062			6,498			6,969			6,119			6,740			(1,436	)		(22	)		(1,678	)		(25	)		6,169			5,479			690			13
Long-term borrowed funds		4,059			3,902			3,930			2,834			1,951			157			4			2,108			108			3,964			1,594			2,370			149

Total borrowed funds		12,001			14,772			15,506			14,028			14,996			(2,771	)		(19	)		(2,995	)		(20	)		14,080			12,981			1,099			8

Total interest-bearing liabilities		86,237			86,886			85,395			82,494			80,843			(649	)		(1	)		5,394			7			86,175			78,636			7,539			10
Total demand deposits		26,754			26,419			25,756			26,331			25,829			335			1			925			4			26,313			25,540			773			3
Demand deposits held for sale		—			—			—			—			—			—			—			—			—			—			618			(618	)		(100	)
Other liabilities		2,604			2,592			2,767			2,637			2,608			12			—			(4	)		—			2,654			2,341			313			13

TOTAL LIABILITIES		115,595			115,897			113,918			111,462			109,280			(302	)		—			6,315			6			115,142			107,135			8,007			7

STOCKHOLDERS’ EQUITY		19,508			19,624			19,407			19,209			19,411			(116	)		(1	)		97			—			19,513			19,463			50			—

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%

Memo: Total average tangible common equity³	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		($	113	)		(1	%)	($	79	)		(1	%)	$	12,909		$	12,948		($	39	)		—	%

Total deposits (interest-bearing and demand)	$	100,990		$	98,533		$	95,645		$	94,797		$	91,676		$	2,457			2	%	$	9,314			10	%	$	98,408		$	91,813		$	6,595			7	%

¹	Our SBO portfolio consists of purchased 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 NINE MONTHS ENDED SEPT 30,
AVERAGE ANNUALIZED YIELDS & RATES	3Q15					2Q15					1Q15					4Q14					3Q14					2015					2014
	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		0.44	%	$	2		0.22	%	$	1		0.19	%	$	1		0.20	%	$	1		0.23	%	$	2		0.26	%	$	4		0.23	%	$	4

Taxable investment securities		2.52			154		2.47			155		2.55			159		2.61			161		2.51			155		2.52			468		2.52			458
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.59			—		2.60			—		2.60			—

Total investment securities		2.52			154		2.47			155		2.55			159		2.61			161		2.51			155		2.52			468		2.52			458

Investment securities and interest-bearing deposits					156					156					160					162					157					472					462

Commercial		2.89			243		2.83			235		2.84			226		2.90			229		2.89			223		2.85			704		2.98			671
Commercial real estate		2.50			54		2.55			51		2.59			50		2.55			48		2.46			46		2.54			155		2.51			134
Leases		2.45			24		2.56			25		2.53			25		2.65			26		2.68			25		2.51			74		2.75			77

Total commercial		2.78			321		2.75			311		2.77			301		2.82			303		2.80			294		2.77			933		2.88			882

Residential mortgages		3.76			117		3.76			113		3.79			112		3.88			113		3.92			108		3.77			342		3.99			312
Home equity loans		5.32			40		5.43			42		5.40			44		5.31			47		5.31			50		5.41			126		5.28			158
Home equity lines of credit		2.97			111		2.94			110		2.94			111		2.94			114		2.90			113		2.95			332		2.87			334
Home equity loans serviced by others¹		6.93			19		7.04			20		7.09			21		6.88			22		6.64			22		6.94			60		6.72			70
Home equity lines of credit serviced by others¹		2.30			3		2.56			3		2.58			3		2.70			4		2.62			4		2.45			9		2.68			13
Automobile		2.75			95		2.68			90		2.78			89		2.64			83		2.57			74		2.73			274		2.53			200
Student		5.01			45		5.05			38		5.13			33		5.07			27		4.99			25		5.06			116		4.63			75
Credit cards		10.95			44		10.92			44		11.10			45		10.28			43		9.99			42		10.99			133		10.09			124
Other retail		7.72			17		7.61			19		7.59			20		7.49			21		7.46			22		7.64			56		7.41			67

Total retail		3.79			491		3.77			479		3.83			478		3.79			474		3.78			460		3.80			1,448		3.80			1,353

Total loans and leases		3.32			812		3.30			790		3.34			779		3.34			777		3.33			754		3.32			2,381		3.38			2,235
Loans held for sale, at fair value		3.69			3		3.41			3		3.29			2		3.41			1		3.46			2		3.48			8		3.44			4
Other loans held for sale		6.96			3		7.79			3		6.85			1		5.96			1		5.44			—		7.27			7		4.10			22

Total interest-earning assets		3.13			974		3.08			952		3.12			942		3.14			941		3.08			913		3.11			2,868		3.14			2,723
INTEREST-BEARING LIABILITIES:
Checking with interest		0.12			5		0.11			5		0.11			4		0.11			4		0.09			4		0.11			14		0.07			8
Money market and savings		0.29			33		0.27			29		0.25			25		0.22			23		0.21			21		0.27			87		0.18			54
Term deposits		0.84			27		0.81			26		0.78			23		0.70			21		0.61			16		0.81			76		0.63			46

Total interest-bearing deposits		0.34			65		0.33			60		0.31			52		0.28			48		0.25			41		0.33			177		0.23			108
Interest-bearing deposits held for sale		—			—		—			—		—			—		—			—		—			—		—			—		0.22			4
Federal funds purchased and securities sold under agreements to repurchase²		0.52			4		0.22			2		0.60			7		0.54			7		0.54			9		0.44			13		0.55			25
Other short-term borrowed funds		1.32			17		1.18			19		0.83			15		1.23			19		1.21			21		1.09			51		1.69			70
Long-term borrowed funds		3.16			32		3.19			31		3.27			32		3.93			27		4.50			22		3.21			95		4.57			55

Total borrowed funds		1.75			53		1.43			52		1.38			54		1.53			53		1.36			52		1.50			159		1.52			150

Total interest-bearing liabilities		0.54			118		0.52			112		0.50			106		0.49			101		0.45			93		0.52			336		0.44			262
INTEREST RATE SPREAD		2.59	%				2.56	%				2.62	%				2.65	%				2.63	%				2.59	%				2.70	%
NET INTEREST MARGIN		2.76					2.72					2.77					2.80					2.77					2.75					2.84
Memo: Total deposit costs		0.25			65		0.24			60		0.22			52		0.20			48		0.18			41		0.24			177		0.16			112

¹	Our SBO portfolio consists of purchased 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)


	THIRD QUARTER 2015											SECOND QUARTER 2015												CHANGE
																								3Q15 from 2Q15
	Consumer Banking			Commercial Banking			Other¹		Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%
Net interest income	$	556		$	299		$	1	$	856		$	544		$	286		$	10		$	840		$	16			2	%
Noninterest income		235			100			18		353			230			108			22			360			(7	)		(2	)

Total revenue		791			399			19		1,209			774			394			32			1,200			9			1
Noninterest expense		623			175			—		798			613			181			47			841			(43	)		(5	)

Profit (loss) before provision for credit losses		168			224			19		411			161			213			(15	)		359			52			14
Provision for credit losses		64			3			9		76			60			7			10			77			(1	)		(1	)

Income (loss) before income tax expense (benefit)		104			221			10		335			101			206			(25	)		282			53			19
Income tax expense (benefit)		36			76			3		115			35			71			(14	)		92			23			25

Net income (loss)	$	68		$	145		$	7	$	220		$	66		$	135		($	11	)	$	190		$	30			16	%

Average Balances
Total assets	$	53,206		$	43,113		$	38,784	$	135,103		$	52,489		$	42,617		$	40,415		$	135,521		($	418	)		—	%
Total loans and leases²		51,886			41,993			3,367		97,246			51,024			41,467			3,569			96,060			1,186			1
Deposits		70,527			24,604			5,859		100,990			69,963			22,717			5,853			98,533			2,457			2
Interest-earning assets		51,928			42,070			29,019		123,017			51,061			41,535			30,609			123,205			(188	)		—
Key Metrics
Net interest margin		4.25	%		2.81	%		NM		2.76	%		4.28	%		2.76	%		NM			2.72	%		4	bps
Efficiency ratio⁴		78.72			43.75			NM		66.02			79.25			46.07			NM			70.02			(400	) bps
Loans-to-deposits ratio (average balances)		73.57			170.68			NM		96.29			72.93			182.54			NM			97.49			(120	) bps
Return on average total tangible assets⁴		0.51			1.34			NM		0.68			0.51			1.27			NM			0.59			9	bps
Return on average tangible common equity^3,4		5.67			12.24			NM		6.60			5.66			11.69			NM			5.90			70	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)


	THIRD QUARTER 2015											THIRD QUARTER 2014												CHANGE
																								3Q15 from 3Q14
	Consumer Banking			Commercial Banking			Other¹		Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%
Net interest income	$	556		$	299		$	1	$	856		$	532		$	270		$	18		$	820		$	36			4	%
Noninterest income		235			100			18		353			226			104			11			341			12			4

Total revenue		791			399			19		1,209			758			374			29			1,161			48			4
Noninterest expense		623			175			—		798			609			162			39			810			(12	)		(1	)

Profit (loss) before provision for credit losses		168			224			19		411			149			212			(10	)		351			60			17
Provision for credit losses		64			3			9		76			66			—			11			77			(1	)		(1	)

Income (loss) before income tax expense (benefit)		104			221			10		335			83			212			(21	)		274			61			22
Income tax expense (benefit)		36			76			3		115			29			73			(17	)		85			30			35

Net income (loss)	$	68		$	145		$	7	$	220		$	54		$	139		($	4	)	$	189		$	31			16	%

Average Balances
Total assets	$	53,206		$	43,113		$	38,784	$	135,103		$	49,012		$	38,854		$	40,825		$	128,691		$	6,412			5	%
Total loans and leases²		51,886			41,993			3,367		97,246			47,848			37,787			4,218			89,853			7,393			8
Deposits		70,527			24,604			5,859		100,990			65,609			20,985			5,082			91,676			9,314			10
Interest-earning assets		51,928			42,070			29,019		123,017			47,885			37,927			31,384			117,196			5,821			5
Key Metrics
Net interest margin		4.25	%		2.81	%		NM		2.76	%		4.40	%		2.82	%		NM			2.77	%		(1	) bps
Efficiency ratio⁴		78.72			43.75			NM		66.02			80.42			43.35			NM			69.84			(382	) bps
Loans-to-deposits ratio (average balances)		73.57			170.68			NM		96.29			72.93			180.06			NM			98.01			(172	) bps
Return on average total tangible assets⁴		0.51			1.34			NM		0.68			0.44			1.42			NM			0.61			7	bps
Return on average tangible common equity^3,4		5.67			12.24			NM		6.60			4.57			13.10			NM			5.81			79	bps

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)


	NINE MONTHS ENDED SEPT 30, 2015												NINE MONTHS ENDED SEPT 30, 2014											CHANGE
																								2015 from 2014
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹		Consolidated			$			%
Net interest income	$	1,633		$	861		$	38		$	2,532		$	1,615		$	790		$	56	$	2,461		$	71			3	%
Noninterest income		684			308			68			1,060			681			318			340		1,339			(279	)		(21	)

Total revenue		2,317			1,169			106			3,592			2,296			1,108			396		3,800			(208	)		(5	)
Noninterest expense		1,832			529			88			2,449			1,902			472			194		2,568			(119	)		(5	)

Profit before provision for credit losses		485			640			18			1,143			394			636			202		1,232			(89	)		(7	)
Provision for credit losses		187			(11	)		35			211			195			(7	)		59		247			(36	)		(15	)

Income (loss) before income tax expense (benefit)		298			651			(17	)		932			199			643			143		985			(53	)		(5	)
Income tax expense (benefit)		103			224			(14	)		313			69			222			26		317			(4	)		(1	)

Net income (loss)	$	195		$	427		($	3	)	$	619		$	130		$	421		$	117	$	668		($	49	)		(7	%)

Average Balances
Total assets	$	52,438		$	42,451		$	39,766		$	134,655		$	48,398		$	37,951		$	40,249	$	126,598		$	8,057			6	%
Total loans and leases²		51,062			41,240			3,572			95,874			47,203			37,263			4,424		88,890			6,984			8
Deposits³		69,347			23,094			5,967			98,408			68,834			18,941			4,038		91,813			6,595			7
Interest-earning assets		51,100			41,323			30,105			122,528			47,236			37,395			30,699		115,330			7,198			6
Key Metrics
Net interest margin		4.27	%		2.78	%		NM			2.75	%		4.57	%		2.82	%		NM		2.84	%		(9	) bps
Efficiency ratio⁵		79.07			45.26			NM			68.17			82.82			42.62			NM		67.58			59	bps
Loans-to-deposits ratio (average balances)		73.63			178.58			NM			97.43			68.58			196.74			NM		96.82			61	bps
Return on average total tangible assets⁵		0.50			1.35			NM			0.65			0.36			1.48			NM		0.74			(9	) bps
Return on average tangible common equity^4,5		5.55			12.35			NM			6.34			3.76			13.67			NM		6.90			(56	) 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 NINE MONTHS ENDED SEPT 30,
CONSUMER BANKING																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	556		$	544		$	533		$	536		$	532		$	12			2	%	$	24			5	%	$	1,633		$	1,615		$	18			1	%
Noninterest income		235			230			219			218			226			5			2			9			4			684			681			3			—

Total revenue		791			774			752			754			758			17			2			33			4			2,317			2,296			21			1
Noninterest expense		623			613			596			611			609			10			2			14			2			1,832			1,902			(70	)		(4	)

Profit before provision for credit losses		168			161			156			143			149			7			4			19			13			485			394			91			23
Provision for credit losses		64			60			63			64			66			4			7			(2	)		(3	)		187			195			(8	)		(4	)

Income before income tax expense		104			101			93			79			83			3			3			21			25			298			199			99			50
Income tax expense		36			35			32			27			29			1			3			7			24			103			69			34			49

Net income	$	68		$	66		$	61		$	52		$	54		$	2			3	%	$	14			26	%	$	195		$	130		$	65			50	%

Average Balances
Total assets	$	53,206		$	52,489		$	51,602		$	50,546		$	49,012		$	717			1	%	$	4,194			9	%	$	52,438		$	48,398		$	4,040			8	%
Total loans and leases¹		51,886			51,024			50,260			49,351			47,848			862			2			4,038			8			51,062			47,203			3,859			8
Deposits²		70,527			69,963			67,518			66,374			65,609			564			1			4,918			7			69,347			68,834			513			1
Interest-earning assets		51,928			51,061			50,294			49,382			47,885			867			2			4,043			8			51,100			47,236			3,864			8
Key Metrics
Net interest margin		4.25	%		4.28	%		4.30	%		4.31	%		4.40	%		(3	) bps					(15	) bps					4.27	%		4.57	%		(30	) bps
Efficiency ratio⁴		78.72			79.25			79.25			81.09			80.42			(53	) bps					(170	) bps					79.07			82.82			(375	) bps
Loans-to-deposits ratio (average balances)		73.57			72.93			74.44			74.35			72.93			64	bps					64	bps					73.63			68.58			505	bps
Return on average total tangible assets⁴		0.51			0.51			0.48			0.40			0.44			—						7	bps					0.50			0.36			14	bps
Return on average tangible common equity^3,4		5.67			5.66			5.30			4.30			4.57			1	bps					110	bps					5.55			3.76			179	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 NINE MONTHS ENDED SEPT 30,
COMMERCIAL BANKING																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	299		$	286		$	276		$	283		$	270		$	13			5	%	$	29			11	%	$	861		$	790		$	71			9	%
Noninterest income		100			108			100			111			104			(8	)		(7	)		(4	)		(4	)		308			318			(10	)		(3	)

Total revenue		399			394			376			394			374			5			1			25			7			1,169			1,108			61			6
Noninterest expense		175			181			173			180			162			(6	)		(3	)		13			8			529			472			57			12

Profit before provision for credit losses		224			213			203			214			212			11			5			12			6			640			636			4			1
Provision for credit losses		3			7			(21	)		1			—			(4	)		(57	)		3			NM			(11	)		(7	)		(4	)		(57	)

Income before income tax expense		221			206			224			213			212			15			7			9			4			651			643			8			1
Income tax expense		76			71			77			73			73			5			7			3			4			224			222			2			1

Net income	$	145		$	135		$	147		$	140		$	139		$	10			7	%	$	6			4	%	$	427		$	421		$	6			1	%

Average Balances
Total assets	$	43,113		$	42,617		$	41,606		$	40,061		$	38,854		$	496			1	%	$	4,259			11	%	$	42,451		$	37,951		$	4,500			12	%
Total loans and leases¹		41,993			41,467			40,241			38,926			37,787			526			1			4,206			11			41,240			37,263			3,977			11
Deposits²		24,604			22,717			21,932			22,500			20,985			1,887			8			3,619			17			23,094			18,941			4,153			22
Interest-earning assets		42,070			41,535			40,344			39,039			37,927			535			1			4,143			11			41,323			37,395			3,928			11
Key Metrics
Net interest margin		2.81	%		2.76	%		2.77	%		2.87	%		2.82	%		5	bps					(1	) bps					2.78	%		2.82	%		(4	) bps
Efficiency ratio⁴		43.75			46.07			46.01			45.48			43.35			(232	) bps					40	bps					45.26			42.62			264	bps
Loans-to-deposits ratio (average balances)		170.68			182.54			183.48			173.01			180.06			(1,186	) bps					(938	) bps					178.58			196.74			(1,816	) bps
Return on average total tangible assets⁴		1.34			1.27			1.43			1.38			1.42			7	bps					(8	) bps					1.35			1.48			(13	) bps
Return on average tangible common equity^3,4		12.24			11.69			13.15			12.76			13.10			55	bps					(86	) bps					12.35			13.67			(132	) 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 NINE MONTHS ENDED SEPT 30,
OTHER¹															3Q15 Change																	2015 Change
	3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014		2014
															$			%			$			%								$			%
Net interest income	$	1	$	10		$	27		$	21		$	18		($	9	)		(90	%)	($	17	)		(94	%)	$	38		$	56	($	18	)		(32	%)
Noninterest income		18		22			28			10			11			(4	)		(18	)		7			64			68			340		(272	)		(80	)

Total revenue		19		32			55			31			29			(13	)		(41	)		(10	)		(34	)		106			396		(290	)		(73	)
Noninterest expense		—		47			41			33			39			(47	)		(100	)		(39	)		(100	)		88			194		(106	)		(55	)

Profit (loss) before provision for credit losses		19		(15	)		14			(2	)		(10	)		34			227			29			290			18			202		(184	)		(91	)
Provision for credit losses		9		10			16			7			11			(1	)		(10	)		(2	)		(18	)		35			59		(24	)		(41	)

Income (loss) before income tax expense (benefit)		10		(25	)		(2	)		(9	)		(21	)		35			140			31			148			(17	)		143		(160	)		(112	)
Income tax expense (benefit)		3		(14	)		(3	)		(14	)		(17	)		17			121			20			118			(14	)		26		(40	)		(154	)

Net income (loss)	$	7	($	11	)	$	1		$	5		($	4	)	$	18			164	%	$	11			275	%	($	3	)	$	117	($	120	)		(103	%)

Average Balances
Total assets	$	38,784	$	40,415		$	40,117		$	40,064		$	40,825		($	1,631	)		(4	%)	($	2,041	)		(5	%)	$	39,766		$	40,249	($	483	)		(1	%)
Total loans and leases		3,367		3,569			3,784			4,001			4,218			(202	)		(6	)		(851	)		(20	)		3,572			4,424		(852	)		(19	)
Deposits		5,859		5,853			6,195			5,923			5,082			6			—			777			15			5,967			4,038		1,929			48
Interest-earning assets		29,019		30,609			30,704			30,309			31,384			(1,590	)		(5	)		(2,365	)		(8	)		30,105			30,699		(594	)		(2	)

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
CONSOLIDATED																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
Net interest income	$	856		$	840		$	836		$	840		$	820		$	16			2	%	$	36			4	%	$	2,532		$	2,461		$	71			3	%
Noninterest income		353			360			347			339			341			(7	)		(2	)		12			4			1,060			1,339			(279	)		(21	)

Total revenue		1,209			1,200			1,183			1,179			1,161			9			1			48			4			3,592			3,800			(208	)		(5	)
Noninterest expense		798			841			810			824			810			(43	)		(5	)		(12	)		(1	)		2,449			2,568			(119	)		(5	)

Profit before provision for credit losses		411			359			373			355			351			52			14			60			17			1,143			1,232			(89	)		(7	)
Provision for credit losses		76			77			58			72			77			(1	)		(1	)		(1	)		(1	)		211			247			(36	)		(15	)

Income before income tax expense		335			282			315			283			274			53			19			61			22			932			985			(53	)		(5	)
Income tax expense		115			92			106			86			85			23			25			30			35			313			317			(4	)		(1	)

Net income	$	220		$	190		$	209		$	197		$	189		$	30			16	%	$	31			16	%	$	619		$	668		($	49	)		(7	%)

Average Balances
Total assets	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Total loans and leases¹		97,246			96,060			94,285			92,278			89,853			1,186			1			7,393			8			95,874			88,890			6,984			8
Deposits²		100,990			98,533			95,645			94,797			91,676			2,457			2			9,314			10			98,408			91,813			6,595			7
Interest-earning assets		123,017			123,205			121,342			118,730			117,196			(188	)		—			5,821			5			122,528			115,330			7,198			6
Key Metrics
Net interest margin		2.76	%		2.72	%		2.77	%		2.80	%		2.77	%		4	bps					(1	) bps					2.75	%		2.84	%		(9	) bps
Efficiency ratio³		66.02			70.02			68.49			69.88			69.84			(400	) bps					(382	) bps					68.17			67.58			59	bps
Loans-to-deposits ratio (average balances)		96.29			97.49			98.58			97.34			98.01			(120	) bps					(172	) bps					97.43			96.82			61	bps
Return on average total tangible assets³		0.68			0.59			0.67			0.63			0.61			9	bps					7	bps					0.65			0.74			(9	) bps
Return on average tangible common equity³		6.60			5.90			6.53			6.12			5.81			70	bps					79	bps					6.34			6.90			(56	) 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 NINE MONTHS ENDED SEPT 30,
														3Q15 Change																2015 Change
	3Q15		2Q15			1Q15		4Q14			3Q14			2Q15						3Q14						2015		2014		2014
														$			%			$			%							$			%
Net interest income:
Consumer Banking	$	556	$	544		$	533	$	536		$	532		$	12			2	%	$	24			5	%	$	1,633	$	1,615	$	18			1	%
Commercial Banking		299		286			276		283			270			13			5			29			11			861		790		71			9
Other		1		10			27		21			18			(9	)		(90	)		(17	)		(94	)		38		56		(18	)		(32	)

Net interest income	$	856	$	840		$	836	$	840		$	820		$	16			2	%	$	36			4	%	$	2,532	$	2,461	$	71			3	%

Noninterest income:
Consumer Banking	$	235	$	230		$	219	$	218		$	226		$	5			2	%	$	9			4	%	$	684	$	681	$	3			—	%
Commercial Banking		100		108			100		111			104			(8	)		(7	)		(4	)		(4	)		308		318		(10	)		(3	)
Other		18		22			28		10			11			(4	)		(18	)		7			64			68		340		(272	)		(80	)

Noninterest income	$	353	$	360		$	347	$	339		$	341		($	7	)		(2	%)	$	12			4	%	$	1,060	$	1,339	($	279	)		(21	%)

Total revenue:
Consumer Banking	$	791	$	774		$	752	$	754		$	758		$	17			2	%	$	33			4	%	$	2,317	$	2,296	$	21			1	%
Commercial Banking		399		394			376		394			374			5			1			25			7			1,169		1,108		61			6
Other		19		32			55		31			29			(13	)		(41	)		(10	)		(34	)		106		396		(290	)		(73	)

Total revenue	$	1,209	$	1,200		$	1,183	$	1,179		$	1,161		$	9			1	%	$	48			4	%	$	3,592	$	3,800	($	208	)		(5	%)

Noninterest expense:
Consumer Banking	$	623	$	613		$	596	$	611		$	609		$	10			2	%	$	14			2	%	$	1,832	$	1,902	($	70	)		(4	%)
Commercial Banking		175		181			173		180			162			(6	)		(3	)		13			8			529		472		57			12
Other		—		47			41		33			39			(47	)		(100	)		(39	)		(100	)		88		194		(106	)		(55	)

Noninterest expense	$	798	$	841		$	810	$	824		$	810		($	43	)		(5	%)	($	12	)		(1	%)	$	2,449	$	2,568	($	119	)		(5	%)

Profit before provision for credit losses:
Consumer Banking	$	168	$	161		$	156	$	143		$	149		$	7			4	%	$	19			13	%	$	485	$	394	$	91			23	%
Commercial Banking		224		213			203		214			212			11			5			12			6			640		636		4			1
Other		19		(15	)		14		(2	)		(10	)		34			227			29			290			18		202		(184	)		(91	)

Profit before provision for credit losses	$	411	$	359		$	373	$	355		$	351		$	52			14	%	$	60			17	%	$	1,143	$	1,232	($	89	)		(7	%)

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPT 30,
															3Q15 Change																		2015 Change
	3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
															$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	64	$	60		$	63		$	64		$	66		$	4			7	%	($	2	)		(3	%)	$	187		$	195		($	8	)		(4	%)
Commercial Banking		3		7			(21	)		1			—			(4	)		(57	)		3			—			(11	)		(7	)		(4	)		(57	)
Other		9		10			16			7			11			(1	)		(10	)		(2	)		(18	)		35			59			(24	)		(41	)

Provision for credit losses	$	76	$	77		$	58		$	72		$	77		($	1	)		(1	%)	($	1	)		(1	%)	$	211		$	247		($	36	)		(15	%)

Income before income tax expense:
Consumer Banking	$	104	$	101		$	93		$	79		$	83		$	3			3	%	$	21			25	%	$	298		$	199		$	99			50	%
Commercial Banking		221		206			224			213			212			15			7			9			4			651			643			8			1
Other		10		(25	)		(2	)		(9	)		(21	)		35			140			31			148			(17	)		143			(160	)		(112	)

Income before income tax expense	$	335	$	282		$	315		$	283		$	274		$	53			19	%	$	61			22	%	$	932		$	985		($	53	)		(5	%)

Income tax expense:
Consumer Banking	$	36	$	35		$	32		$	27		$	29		$	1			3	%	$	7			24	%	$	103		$	69		$	34			49	%
Commercial Banking		76		71			77			73			73			5			7			3			4			224			222			2			1
Other		3		(14	)		(3	)		(14	)		(17	)		17			121			20			118			(14	)		26			(40	)		(154	)

Income tax expense	$	115	$	92		$	106		$	86		$	85		$	23			25	%	$	30			35	%	$	313		$	317		($	4	)		(1	%)

Net income:
Consumer Banking	$	68	$	66		$	61		$	52		$	54		$	2			3	%	$	14			26	%	$	195		$	130		$	65			50	%
Commercial Banking		145		135			147			140			139			10			7			6			4			427			421			6			1
Other		7		(11	)		1			5			(4	)		18			164			11			275			(3	)		117			(120	)		(103	)

Net income	$	220	$	190		$	209		$	197		$	189		$	30			16	%	$	31			16	%	$	619		$	668		($	49	)		(7	%)

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																						FOR THE NINE MONTHS ENDED SEPT 30,
AVERAGE BALANCES											3Q15 Change																2015 Change
	3Q15		2Q15		1Q15		4Q14		3Q14		2Q15						3Q14						2015		2014		2014
											$			%			$			%							$			%
Total assets:
Consumer Banking	$	53,206	$	52,489	$	51,602	$	50,546	$	49,012	$	717			1	%	$	4,194			9	%	$	52,438	$	48,398	$	4,040			8	%
Commercial Banking		43,113		42,617		41,606		40,061		38,854		496			1			4,259			11			42,451		37,951		4,500			12
Other		38,784		40,415		40,117		40,064		40,825		(1,631	)		(4	)		(2,041	)		(5	)		39,766		40,249		(483	)		(1	)

Total assets	$	135,103	$	135,521	$	133,325	$	130,671	$	128,691	($	418	)		—	%	$	6,412			5	%	$	134,655	$	126,598	$	8,057			6	%

Loans and leases¹:
Consumer Banking	$	51,886	$	51,024	$	50,260	$	49,351	$	47,848	$	862			2	%	$	4,038			8	%	$	51,062	$	47,203	$	3,859			8	%
Commercial Banking		41,993		41,467		40,241		38,926		37,787		526			1			4,206			11			41,240		37,263		3,977			11
Other		3,367		3,569		3,784		4,001		4,218		(202	)		(6	)		(851	)		(20	)		3,572		4,424		(852	)		(19	)

Total loans and leases	$	97,246	$	96,060	$	94,285	$	92,278	$	89,853	$	1,186			1	%	$	7,393			8	%	$	95,874	$	88,890	$	6,984			8	%

Deposits²:
Consumer Banking	$	70,527	$	69,963	$	67,518	$	66,374	$	65,609	$	564			1	%	$	4,918			7	%	$	69,347	$	68,834	$	513			1	%
Commercial Banking		24,604		22,717		21,932		22,500		20,985		1,887			8			3,619			17			23,094		18,941		4,153			22
Other		5,859		5,853		6,195		5,923		5,082		6			—			777			15			5,967		4,038		1,929			48

Total deposits	$	100,990	$	98,533	$	95,645	$	94,797	$	91,676	$	2,457			2	%	$	9,314			10	%	$	98,408	$	91,813	$	6,595			7	%

Interest-earning assets:
Consumer Banking	$	51,928	$	51,061	$	50,294	$	49,382	$	47,885	$	867			2	%	$	4,043			8	%	$	51,100	$	47,236	$	3,864			8	%
Commercial Banking		42,070		41,535		40,344		39,039		37,927		535			1			4,143			11			41,323		37,395		3,928			11
Other		29,019		30,609		30,704		30,309		31,384		(1,590	)		(5	)		(2,365	)		(8	)		30,105		30,699		(594	)		(2	)

Total interest-earning assets	$	123,017	$	123,205	$	121,342	$	118,730	$	117,196	($	188	)		—	%	$	5,821			5	%	$	122,528	$	115,330	$	7,198			6	%

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS																							FOR THE NINE MONTHS ENDED SEPT 30,
KEY METRICS																3Q15 Change														2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15				3Q14				2015			2014			2014
																bps				bps										bps
Net Interest Margin (NIM)
Consumer Banking		4.25	%		4.28	%		4.30	%		4.31	%		4.40	%		(3	)	—		(15	)	—		4.27	%		4.57	%		(30	)	—
Commercial Banking		2.81			2.76			2.77			2.87			2.82			5		—		(1	)	—		2.78			2.82			(4	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
NIM		2.76			2.72			2.77			2.80			2.77			4		—		(1	)	—		2.75			2.84			(9	)	—
Efficiency Ratio³
Consumer Banking		78.72	%		79.25	%		79.25	%		81.09	%		80.42	%		(53	)	—		(170	)	—		79.07	%		82.82	%		(375	)	—
Commercial Banking		43.75			46.07			46.01			45.48			43.35			(232	)	—		40		—		45.26			42.62			264		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
Efficiency Ratio		66.02			70.02			68.49			69.88			69.84			(400	)	—		(382	)	—		68.17			67.58			59		—
Loans to Deposits Ratio (average balances) (LDR)¹
Consumer Banking		73.57	%		72.93	%		74.44	%		74.35	%		72.93	%		64		—		64		—		73.63	%		68.58	%		505		—
Commercial Banking		170.68			182.54			183.48			173.01			180.06			(1,186	)	—		(938	)	—		178.58			196.74			(1,816	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
LDR		96.29			97.49			98.58			97.34			98.01			(120	)	—		(172	)	—		97.43			96.82			61		—
Return on Average Total Tangible Assets (ROTA)³
Consumer Banking		0.51	%		0.51	%		0.48	%		0.40	%		0.44	%		—		—		7		—		0.50	%		0.36	%		14		—
Commercial Banking		1.34			1.27			1.43			1.38			1.42			7		—		(8	)	—		1.35			1.48			(13	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTA		0.68			0.59			0.67			0.63			0.61			9		—		7		—		0.65			0.74			(9	)	—
Return on Average Tangible Common Equity (ROTCE)^2,3
Consumer Banking		5.67	%		5.66	%		5.30	%		4.30	%		4.57	%		1		—		110		—		5.55	%		3.76	%		179		—
Commercial Banking		12.24			11.69			13.15			12.76			13.10			55		—		(86	)	—		12.35			13.67			(132	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTCE		6.60			5.90			6.53			6.12			5.81			70		—		79		—		6.34			6.90			(56	)	—

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										SEPT 30, 2015 CHANGE
	Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2015						Sept 30, 2014
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	32,726	$	33,027	$	32,249	$	31,431	$	30,356	($	301	)		(1	%)	$	2,370			8	%
Commercial real estate		8,678		8,157		7,863		7,809		7,239		521			6			1,439			20
Leases		3,865		3,884		3,870		3,986		3,875		(19	)		—			(10	)		—

Total commercial		45,269		45,068		43,982		43,226		41,470		201			—			3,799			9
Residential mortgages		12,792		12,253		11,808		11,832		11,265		539			4			1,527			14
Home equity loans		2,842		3,022		3,212		3,424		3,635		(180	)		(6	)		(793	)		(22	)
Home equity lines of credit		14,707		14,917		15,127		15,423		15,558		(210	)		(1	)		(851	)		(5	)
Home equity loans serviced by others¹		1,054		1,126		1,192		1,228		1,290		(72	)		(6	)		(236	)		(18	)
Home equity lines of credit serviced by others¹		441		494		544		550		580		(53	)		(11	)		(139	)		(24	)
Automobile		13,876		13,727		13,179		12,706		12,080		149			1			1,796			15
Student		3,846		3,355		2,852		2,256		2,069		491			15			1,777			86
Credit card		1,628		1,613		1,588		1,693		1,676		15			1			(48	)		(3	)
Other retail		976		963		1,010		1,072		1,126		13			1			(150	)		(13	)

Total retail		52,162		51,470		50,512		50,184		49,279		692			1			2,883			6

Total loans and leases		97,431		96,538		94,494		93,410		90,749		893			1			6,682			7
Derivative receivable - commercial		828		658		733		622		542		170			26			286			53
Derivative receivable - retail		10		7		9		7		5		3			43			5			100

Total derivative receivable		838		665		742		629		547		173			26			291			53

Total credit-related assets		98,269		97,203		95,236		94,039		91,296		1,066			1			6,973			8
Undrawn commitments to extend credit - commercial		29,751		29,422		29,110		29,646		29,182		329			1			569			2
Financial standby letters of credit		2,077		2,181		2,292		2,315		2,498		(104	)		(5	)		(421	)		(17	)
Performance letters of credit		45		55		60		65		94		(10	)		(18	)		(49	)		(52	)
Commercial letters of credit		63		59		58		75		74		4			7			(11	)		(15	)
Marketing rights		47		49		51		51		51		(2	)		(4	)		(4	)		(8	)
Risk participation agreements		39		22		26		19		16		17			77			23			144

Total commercial lending-related arrangements		32,022		31,788		31,597		32,171		31,915		234			1			107			—
Undrawn commitments to extend credit - retail		25,755		26,465		26,114		26,253		26,151		(710	)		(3	)		(396	)		(2	)
Residential mortgage loans sold with recourse		11		12		10		11		11		(1	)		(8	)		—			—

Total retail lending-related arrangements		25,766		26,477		26,124		26,264		26,162		(711	)		(3	)		(396	)		(2	)

Total lending-related arrangements		57,788		58,265		57,721		58,435		58,077		(477	)		(1	)		(289	)		—

Total credit exposure	$	156,057	$	155,468	$	152,957	$	152,474	$	149,373	$	589			—	%	$	6,684			4	%

Memo: Total credit exposure by product category
Commercial exposure	$	78,119	$	77,514	$	76,312	$	76,019	$	73,927	$	605			1	%	$	4,192			6	%
Retail exposure		77,938		77,954		76,645		76,455		75,446		(16	)		—			2,492			3

Total credit exposure	$	156,057	$	155,468	$	152,957	$	152,474	$	149,373	$	589			—	%	$	6,684			4	%

¹	Our SBO portfolio consists of purchased 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															SEPT 30, 2015 CHANGE
	Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2015						Sept 30, 2014
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	88		$	83		$	97		$	114		$	93		$	5			6	%	($	5	)		(5	%)
Commercial real estate		42			42			60			50			83			—			—			(41	)		(49	)
Leases		—			—			1			—			—			—			—			—			—

Total commercial		130			125			158			164			176			5			4			(46	)		(26	)
Residential mortgages		324			329			347			345			351			(5	)		(2	)		(27	)		(8	)
Home equity loans		200			189			210			203			201			11			6			(1	)		—
Home equity lines of credit		214			254			270			257			218			(40	)		(16	)		(4	)		(2	)
Home equity loans serviced by others²		39			44			44			47			52			(5	)		(11	)		(13	)		(25	)
Home equity lines of credit serviced by others²		31			26			25			25			29			5			19			2			7
Automobile		38			30			30			21			17			8			27			21			124
Student		39			35			30			17			14			4			11			25			179
Credit card		15			14			16			17			16			1			7			(1	)		(6	)
Other retail		4			4			6			5			5			—			—			(1	)		(20	)

Total retail		904			925			978			937			903			(21	)		(2	)		1			—

Nonperforming loans and leases¹		1,034			1,050			1,136			1,101			1,079			(16	)		(2	)		(45	)		(4	)

Commercial		1			1			1			3			3			—			—			(2	)		(67	)
Retail		38			37			37			39			39			1			3			(1	)		(3	)

Other real estate owned		39			38			38			42			42			1			3			(3	)		(7	)

Nonperforming assets	$	1,073		$	1,088		$	1,174		$	1,143		$	1,121		($	15	)		(1	%)	($	48	)		(4	%)

NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	131		$	126		$	159		$	167		$	179		$	5			4	%	($	48	)		(27	%)
Retail		942			962			1,015			976			942			(20	)		(2	)		—			—

Nonperforming assets	$	1,073		$	1,088		$	1,174		$	1,143		$	1,121		($	15	)		(1	%)	($	48	)		(4	%)

ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.23	%		1.24	%		1.27	%		1.28	%		1.32	%		(1	) bps					(9	) bps
Allowance for loan and lease losses to nonperforming loans and leases		116.12			114.37			105.75			108.51			111.30			175	bps					482	bps
Nonperforming loans and leases to loans and leases		1.06			1.09			1.20			1.18			1.19			(3	) bps					(13	) bps
Nonperforming assets to total assets		0.79			0.79			0.86			0.86			0.85			—						(6	) bps
¹MEMO:
Accruing loans past due 90 days or more included above	$	15		$	8		$	9		$	8		$	8		$	7			88	%	$	7			88	%

²	Our SBO portfolio consists of purchased 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 NINE MONTHS ENDED SEPT 30,
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS														3Q15 Change																		2015 Change
	3Q15			2Q15		1Q15			4Q14			3Q14		2Q15						3Q14						2015			2014			2014
														$			%			$			%									$			%
GROSS CHARGE-OFFS:
Commercial	$	10		$	12	$	5		$	9		$	11	($	2	)		(17	%)	($	1	)		(9	%)	$	27		$	22		$	5			23	%
Commercial real estate		1			3		1			4			5		(2	)		(67	)		(4	)		(80	)		5			8			(3	)		(38	)
Leases		—			—		—			—			—		—			—			—			—			—			—			—			—

Total commercial		11			15		6			13			16		(4	)		(27	)		(5	)		(31	)		32			30			2			7
Residential mortgages		5			6		6			6			10		(1	)		(17	)		(5	)		(50	)		17			30			(13	)		(43	)
Home equity loans		8			6		9			11			16		2			33			(8	)		(50	)		23			44			(21	)		(48	)
Home equity lines of credit		11			17		22			16			19		(6	)		(35	)		(8	)		(42	)		50			64			(14	)		(22	)
Home equity loans serviced by others¹		8			7		8			11			14		1			14			(6	)		(43	)		23			44			(21	)		(48	)
Home equity lines of credit serviced by others¹		3			3		4			2			3		—			—			—			—			10			10			—			—
Automobile		31			24		23			16			9		7			29			22			244			78			25			53			212
Student		12			15		10			16			12		(3	)		(20	)		—			—			37			38			(1	)		(3	)
Credit card		14			16		15			15			15		(2	)		(13	)		(1	)		(7	)		45			49			(4	)		(8	)
Other retail		17			12		12			13			15		5			42			2			13			41			40			1			3

Total retail		109			106		109			106			113		3			3			(4	)		(4	)		324			344			(20	)		(6	)

Total gross charge-offs	$	120		$	121	$	115		$	119		$	129	($	1	)		(1	%)	($	9	)		(7	%)	$	356		$	374		($	18	)		(5	%)

GROSS RECOVERIES:
Commercial	$	3		$	5	$	6		$	4		$	7	($	2	)		(40	%)	($	4	)		(57	%)	$	14		$	31		($	17	)		(55	%)
Commercial real estate		3			3		22			7			5		—			—			(2	)		(40	)		28			16			12			75
Leases		—			—		—			—			—		—			—			—			—			—			—			—			—

Total commercial		6			8		28			11			12		(2	)		(25	)		(6	)		(50	)		42			47			(5	)		(11	)
Residential mortgages		3			2		3			2			2		1			50			1			50			8			9			(1	)		(11	)
Home equity loans		3			2		2			5			9		1			50			(6	)		(67	)		7			19			(12	)		(63	)
Home equity lines of credit		3			6		5			3			5		(3	)		(50	)		(2	)		(40	)		14			12			2			17
Home equity loans serviced by others¹		5			5		3			6			6		—			—			(1	)		(17	)		13			15			(2	)		(13	)
Home equity lines of credit serviced by others¹		2			2		2			1			2		—			—			—			—			6			4			2			50
Automobile		14			11		9			6			4		3			27			10			250			34			14			20			143
Student		3			3		3			3			1		—			—			2			200			9			6			3			50
Credit card		2			2		2			2			—		—			—			2			—			6			5			1			20
Other retail		4			2		4			—			—		2			100			4			—			10			—			10			—

Total retail		39			35		33			28			29		4			11			10			34			107			84			23			27

Total gross recoveries	$	45		$	43	$	61		$	39		$	41	$	2			5	%	$	4			10	%	$	149		$	131		$	18			14	%

NET CHARGE-OFFS (RECOVERIES):
Commercial	$	7		$	7	($	1	)	$	5		$	4	$	—			—	%	$	3			75	%	$	13		($	9	)	$	22			244	%
Commercial real estate		(2	)		—		(21	)		(3	)		—		(2	)		—			(2	)		—			(23	)		(8	)		(15	)		(188	)
Leases		—			—		—			—			—		—			—			—			—			—			—			—			—

Total commercial		5			7		(22	)		2			4		(2	)		(29	)		1			25			(10	)		(17	)		7			41
Residential mortgages		2			4		3			4			8		(2	)		(50	)		(6	)		(75	)		9			21			(12	)		(57	)
Home equity loans		5			4		7			6			7		1			25			(2	)		(29	)		16			25			(9	)		(36	)
Home equity lines of credit		8			11		17			13			14		(3	)		(27	)		(6	)		(43	)		36			52			(16	)		(31	)
Home equity loans serviced by others¹		3			2		5			5			8		1			50			(5	)		(63	)		10			29			(19	)		(66	)
Home equity lines of credit serviced by others¹		1			1		2			1			1		—			—			—			—			4			6			(2	)		(33	)
Automobile		17			13		14			10			5		4			31			12			240			44			11			33			300
Student		9			12		7			13			11		(3	)		(25	)		(2	)		(18	)		28			32			(4	)		(13	)
Credit card		12			14		13			13			15		(2	)		(14	)		(3	)		(20	)		39			44			(5	)		(11	)
Other retail		13			10		8			13			15		3			30			(2	)		(13	)		31			40			(9	)		(23	)

Total retail		70			71		76			78			84		(1	)		(1	)		(14	)		(17	)		217			260			(43	)		(17	)

Total net charge-offs (recoveries)	$	75		$	78	$	54		$	80		$	88	($	3	)		(4	%)	($	13	)		(15	%)	$	207		$	243		($	36	)		(15	%)

¹	Our SBO portfolio consists of purchased 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 NINE MONTHS ENDED SEPT 30,
																3Q15 Change																		2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																$			%			$			%									$			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES:
Commercial		0.08	%		0.10	%		(0.02	%)		0.06	%		0.04	%		(2	) bps					4	bps					0.05	%		(0.04	%)		9	bps
Commercial real estate		(0.11	)		(0.03	)		(1.07	)		(0.15	)		0.06			(8	) bps					(17	) bps					(0.39	)		(0.14	)		(25	) bps
Leases		—			—			—			—			—			—						—						—			(0.01	)		1	bps
Total commercial		0.04			0.07			(0.20	)		0.02			0.04			(3	) bps					—						(0.03	)		(0.05	)		2	bps
Residential mortgages		0.05			0.14			0.11			0.14			0.27			(9	) bps					(22	) bps					0.10			0.26			(16	) bps
Home equity loans		0.60			0.56			0.81			0.45			0.79			4	bps					(19	) bps					0.66			0.87			(21	) bps
Home equity lines of credit		0.21			0.29			0.46			0.34			0.36			(8	) bps					(15	) bps					0.32			0.45			(13	) bps
Home equity loans serviced by others¹		1.12			0.70			1.49			1.67			2.43			42	bps					(131	) bps					1.11			2.76			(165	) bps
Home equity lines of credit serviced by others¹		1.23			0.89			1.56			0.81			1.18			34	bps					5	bps					1.24			1.34			(10	) bps
Automobile		0.50			0.38			0.42			0.34			0.21			12	bps					29	bps					0.43			0.14			29	bps
Student		1.07			1.56			1.13			2.36			1.70			(49	) bps					(63	) bps					1.25			1.84			(59	) bps
Credit card		2.96			3.36			3.26			3.28			3.33			(40	) bps					(37	) bps					3.19			3.56			(37	) bps
Other retail		5.56			4.42			3.30			4.82			5.24			114	bps					32	bps					4.40			4.54			(14	) bps
Total retail		0.54			0.56			0.61			0.62			0.68			(2	) bps					(14	) bps					0.57			0.73			(16	) bps
Total loans and leases		0.31	%		0.33	%		0.23	%		0.35	%		0.38	%		(2	) bps					(7	) bps					0.29	%		0.37	%		(8	) bps
Memo: Average loans:
Commercial	$	32,832		$	32,855		$	31,911		$	30,962		$	30,186		($	23	)		—	%	$	2,646			9	%		32,536			29,666		$	2,870			10	%
Commercial real estate		8,406			7,947			7,700			7,427			7,216			459			6			1,190			16			8,020			7,067			953			13
Leases		3,936			3,894			3,895			3,874			3,789			42			1			147			4			3,909			3,743			166			4

Total commercial		45,174			44,696			43,506			42,263			41,191			478			1			3,983			10			44,465			40,476			3,989			10
Residential mortgages		12,470			11,980			11,855			11,647			11,001			490			4			1,469			13			12,104			10,420			1,684			16
Home equity loans		2,928			3,138			3,332			3,527			3,743			(210	)		(7	)		(815	)		(22	)		3,117			3,994			(877	)		(22	)
Home equity lines of credit		14,813			15,084			15,310			15,490			15,572			(271	)		(2	)		(759	)		(5	)		15,059			15,572			(513	)		(3	)
Home equity loans serviced by others¹		1,086			1,134			1,193			1,252			1,317			(48	)		(4	)		(231	)		(18	)		1,151			1,386			(235	)		(17	)
Home equity lines of credit serviced by others¹		425			469			522			561			591			(44	)		(9	)		(166	)		(28	)		479			626			(147	)		(23	)
Automobile		13,810			13,484			12,933			12,403			11,438			326			2			2,372			21			13,412			10,542			2,870			27
Student		3,530			3,029			2,623			2,142			1,983			501			17			1,547			78			3,064			2,150			914			43
Credit card		1,616			1,606			1,637			1,663			1,661			10			1			(45	)		(3	)		1,620			1,647			(27	)		(2	)
Other retail		939			986			1,041			1,097			1,153			(47	)		(5	)		(214	)		(19	)		988			1,216			(228	)		(19	)

Total retail		51,617			50,910			50,446			49,782			48,459			707			1			3,158			7			50,994			47,553			3,441			7

Total loans and leases	$	96,791		$	95,606		$	93,952		$	92,045		$	89,650		$	1,185			1	%	$	7,141			8	%	$	95,459		$	88,029		$	7,430			8	%

¹	Our SBO portfolio consists of purchased 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 NINE MONTHS ENDED SEPT 30,
															3Q15 Change																	2015 Change
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES	3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014		2014
															$			%			$			%								$			%
Allowance for loan and lease losses - beginning	$	1,201	$	1,202		$	1,195		$	1,201		$	1,210		($	1	)		—	%	($	9	)		(1	%)	$	1,195		$	1,221	($	26	)		(2	%)
Charge-offs:
Commercial		11		15			6			13			16			(4	)		(27	)		(5	)		(31	)		32			30		2			7
Retail		109		106			109			106			113			3			3			(4	)		(4	)		324			344		(20	)		(6	)

Total charge-offs		120		121			115			119			129			(1	)		(1	)		(9	)		(7	)		356			374		(18	)		(5	)
Recoveries:
Commercial		6		8			28			11			12			(2	)		(25	)		(6	)		(50	)		42			47		(5	)		(11	)
Retail		39		35			33			28			29			4			11			10			34			107			84		23			27

Total recoveries		45		43			61			39			41			2			5			4			10			149			131		18			14

Net charge-offs		75		78			54			80			88			(3	)		(4	)		(13	)		(15	)		207			243		(36	)		(15	)
Provision for loan and lease losses:
Commercial		15		(6	)		12			4			38			21			350			(23	)		(61	)		21			27		(6	)		(22	)
Retail		58		83			51			70			41			(25	)		(30	)		17			41			192			196		(4	)		(2	)

Total provision for loan and lease losses		73		77			63			74			79			(4	)		(5	)		(6	)		(8	)		213			223		(10	)		(4	)
Sale/Other		2		—			(2	)		—			—			2			—			2			—			—			—		—			—

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

Reserve for unfunded lending commitments - beginning	$	56	$	56		$	61		$	63		$	65		$	—			—	%	($	9	)		(14	%)	$	61		$	39	$	22			56	%
Provision for unfunded lending commitments		3		—			(5	)		(2	)		(2	)		3			—			5			250			(2	)		24		(26	)		(108	)

Reserve for unfunded lending commitments - ending		59		56			56			61			63			3			5			(4	)		(6	)		59			63		(4	)		(6	)

Total allowance for credit losses - ending	$	1,260	$	1,257		$	1,258		$	1,256		$	1,264		$	3			—	%	($	4	)		—	%	$	1,260		$	1,264	($	4	)		—	%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	AS OF										SEPT 30, 2015 CHANGE
	Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2014		Sept 30, 2014		June 30, 2015						SEPT 30, 2014
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	23	$	21	$	35	$	20	$	14	$	2			10	%	$	9			64	%
Formula-based evaluation		611		600		599		585		591		11			2			20			3

Total commercial		634		621		634		605		605		13			2			29			5
Individually evaluated		104		107		107		109		116		(3	)		(3	)		(12	)		(10	)
Formula-based evaluation		522		529		517		542		543		(7	)		(1	)		(21	)		(4	)

Total retail		626		636		624		651		659		(10	)		(2	)		(33	)		(5	)

Total allowance for credit losses	$	1,260	$	1,257	$	1,258	$	1,256	$	1,264	$	3			—	%	($	4	)		—	%

CAPITAL AND RATIOS

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																Sept 30, 2015 Change																2015 Change
	Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2014			Sept 30, 2014			June 30, 2015						Sept 30, 2014						2015		2014		2014
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS¹(preliminary)
CET1 capital²	$	13,200		$	13,270		$	13,360		$	13,173		$	13,330		($	70	)		(1	%)	($	130	)		(1	%)
Tier 1 capital		13,447			13,517			13,360			13,173			13,330			(70	)		(1	)		117			1
Total capital		17,307			17,123			16,969			16,781			16,612			184			1			695			4
Risk-weighted assets		112,277			112,131			109,786			105,964			103,207			146			—			9,070			9
Adjusted average assets³		129,334			129,505			127,165			124,539			122,521			(171	)		—			6,813			6
CET1 capital ratio²		11.8	%		11.8	%		12.2	%		12.4	%		12.9	%
Tier 1 capital ratio		12.0			12.1			12.2			12.4			12.9
Total capital ratio		15.4			15.3			15.5			15.8			16.1
Tier 1 leverage ratio		10.4			10.4			10.5			10.6			10.9
Proforma Basel III fully phased-in common equity tier 1 capital ratio⁴		11.7			11.8			12.1			12.1			12.5
TANGIBLE COMMON EQUITY (period-end):
Stockholders’ common equity	$	19,353		$	19,339		$	19,564		$	19,268		$	19,383		$	14			—	%	($	30	)		—	%	$	19,353	$	19,383	($	30	)		—	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		3			4			5			6			6			(1	)		(25	)		(3	)		(50	)		3		6		(3	)		(50	)
Add: Deferred tax liabilities⁵		465			450			434			420			399			15			3			66			17			465		399		66			17

Total tangible common equity⁶	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	30			—	%	$	39			—	%	$	12,939	$	12,900	$	39			—	%

TANGIBLE COMMON EQUITY (average):
Stockholders’ common equity	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		($	130	)		(1	%)	($	150	)		(1	%)	$	19,352	$	19,463	($	111	)		(1	%)
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		4			5			5			6			6			(1	)		(20	)		(2	)		(33	)		5		7		(2	)		(29	)
Add: Deferred tax liabilities⁵		453			437			422			403			384			16			4			69			18			438		368		70			19

Total tangible common equity⁶	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		($	113	)		(1	%)	($	79	)		(1	%)	$	12,909	$	12,948	($	39	)		—	%

INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876	$	6,876	$	—			—	%
Other intangible assets		3			4			5			6			6			(1	)		(25	)		(3	)		(50	)		3		6		(3	)		(50	)

Total intangible assets	$	6,879		$	6,880		$	6,881		$	6,882		$	6,882		($	1	)		—	%	($	3	)		—	%	$	6,879	$	6,882	($	3	)		—	%

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 NINE MONTHS ENDED SEPT 30,
																3Q15 Change																2015 Change
	3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015		2014		2014
EARNINGS PER SHARE DATA																$			%			$			%							$			%
Basic earnings per share:
Net income	$	220		$	190		$	209		$	197		$	189		$	30			16	%	$	31			16	%	$	619	$	668	($	49	)		(7	%)
Less: Preferred stock dividends		7			—			—			—			—			7			—			7			—			7		—		7			—

Net income available to common stockholders	$	213		$	190		$	209		$	197		$	189		$	23			12	%	$	24			13	%	$	612	$	668	($	56	)		(8	)

Net income available to common stockholders, excluding restructuring charges and special items¹	$	213		$	215		$	215		$	217		$	202		($	2	)		(1	%)	$	11			5	%	$	643	$	573	$	70			12	%

Total weighted-average basic shares outstanding		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			(6,743,993	)		(1	)		(29,013,069	)		(5	)		538,279,222		559,998,324		(21,719,102	)		(4	)
Net income per share - basic	$	0.40		$	0.35		$	0.38		$	0.36		$	0.34		$	0.05			14	%	$	0.06			18	%	$	1.14	$	1.19	($	0.05	)		(4	%)
Net income per share, excluding restructuring charges and special items - basic¹	$	0.40		$	0.40		$	0.39		$	0.40		$	0.36		$	—			—	%	$	0.04			11	%	$	1.20	$	1.02	$	0.18			18	%
Diluted earnings per share:
Net income applicable to common stockholders	$	213		$	190		$	209		$	197		$	189		$	23			12		$	24			13		$	612	$	668	($	56	)		(8	)
Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	213		$	215		$	215		$	217		$	202		($	2	)		(1	)	$	11			5		$	643	$	573	$	70			12
Total weighted-average basic shares outstanding		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			(6,743,993	)		(1	)		(29,013,069	)		(5	)		538,279,222		559,998,324		(21,719,102	)		(4	)
Add: Weighted-average dilutive shares		2,412,903			2,180,118			3,507,354			3,866,289			245,423			232,785			11			2,167,480			883			2,647,139		82,707		2,564,432			NM

Total weighted-average diluted shares outstanding		533,398,158			539,909,366			549,798,717			550,676,298			560,243,747			(6,511,208	)		(1	)		(26,845,589	)		(5	)		540,926,361		560,081,031		(19,154,670	)		(3	)
Net income per share - diluted	$	0.40		$	0.35		$	0.38		$	0.36		$	0.34		$	0.05			14	%	$	0.06			18	%	$	1.13	$	1.19	($	0.06	)		(5	%)
Net income per share, excluding restructuring charges and special items - diluted¹	$	0.40		$	0.40		$	0.39		$	0.39		$	0.36		$	—			—	%	$	0.04			11	%	$	1.19	$	1.02	$	0.17			17	%
COMMON SHARES OUTSTANDING
Common shares - at end of period		527,636,510			537,149,717			547,490,812			545,884,519			559,998,324			(9,513,207	)		(2	%)		(32,361,814	)		(6	%)		527,636,510		559,998,324		(32,361,814	)		(6	%)
Cash dividends declared and paid per share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.68		$	—			—		($	0.58	)		(85	)	$	0.30	$	1.34	($	1.04	)		(78	)
Book value per share	$	36.68		$	36.00		$	35.73		$	35.30		$	34.61			0.68			2			2.07			6		$	36.68	$	34.61		2.07			6
Tangible book value per share¹	$	24.52		$	24.03		$	23.96		$	23.46		$	23.04			0.49			2			1.48			6		$	24.52	$	23.04		1.48			6
Dividend payout ratio		25	%		28	%		26	%		28	%		203	%		(300	) bps					NM										NM
SHARE PRICE
High	$	28.18		$	28.71		$	25.84		$	25.60		$	23.57		($	0.53	)		(2	%)	$	4.61			20	%	$	28.71	$	23.57	$	5.14			22	%
Low		21.14			24.03			22.67			21.47			21.35			(2.89	)		(12	)		(0.21	)		(1	)		21.14		21.35		(0.21	)		(1	)
Close		23.86			27.31			24.13			24.86			23.42			(3.45	)		(13	)		0.44			2			23.86		23.42		0.44			2
Market Capitalization		12,589			14,670			13,211			13,571			13,115			(2,081	)		(14	)		(526	)		(4	)		12,589		13,115		(526	)		(4	)

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”, “net income available to common stockholders”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income 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 NINE MONTHS ENDED SEPT 30,
												3Q15 Change																	2015 Change
		3Q15		2Q15		1Q15		4Q14		3Q14		2Q15						3Q14						2015		2014			2014
												$			%			$			%								$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	353	$	360	$	347	$	339	$	341	($	7	)		(2	%)	$	12			4	%	$	1,060	$	1,339		($	279	)		(21	%)
Less: Special items - Chicago gain			—		—		—		—		—		—			—			—			—			—		288			(288	)		(100	)

Noninterest income, excluding special items (non-GAAP)	B	$	353	$	360	$	347	$	339	$	341	($	7	)		(2	%)	$	12			4	%	$	1,060	$	1,051		$	9			1	%

Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,209	$	1,200	$	1,183	$	1,179	$	1,161	$	9			1	%	$	48			4	%	$	3,592	$	3,800		($	208	)		(5	%)
Less: Special items - Chicago gain			—		—		—		—		—		—			—			—			—			—		288			(288	)		(100	)

Total revenue, excluding special items (non-GAAP)	D	$	1,209	$	1,200	$	1,183	$	1,179	$	1,161	$	9			1	%	$	48			4	%	$	3,592	$	3,512		$	80			2	%

Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	798	$	841	$	810	$	824	$	810	($	43	)		(5	%)	($	12	)		(1	%)	$	2,449	$	2,568		($	119	)		(5	%)
Less: Restructuring charges and special items	MM		—		40		10		33		21		(40	)		(100	)		(21	)		(100	)		50		136			(86	)		(63	)

Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	798	$	801	$	800	$	791	$	789	($	3	)		—	%	$	9			1	%	$	2,399	$	2,432		($	33	)		(1	%)

Net income, excluding restructuring charges and special items:
Net income (GAAP)	G	$	220	$	190	$	209	$	197	$	189	$	30			16	%	$	31			16	%	$	619	$	668		($	49	)		(7	%)
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		25		6		20		13		(25	)		(100	)		(13	)		(100	)		31		(95	)		126			133

Net income, excluding restructuring charges and special items (non-GAAP)	H	$	220	$	215	$	215	$	217	$	202	$	5			2	%	$	18			9	%	$	650	$	573		$	77			13	%

Net income available to common stockholders (GAAP), excluding restructuring charges and special items:
Net income available to common stockholders (GAAP)	I	$	213	$	190	$	209	$	197	$	189	$	23			12	%	$	24			13	%	$	612	$	668		($	56	)		(8	%)
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		25		6		20		13		(25	)		(100	)		(13	)		(100	)		31		(95	)		126			133

Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	J	$	213	$	215	$	215	$	217	$	202	($	2	)		(1	%)	$	11			5	%	$	643	$	573		$	70			12	%

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

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
																	3Q15 Change																		2015 Change
		3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014			2014
																	$			%			$			%									$			%
Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	K	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		($	130	)		(1	%)	($	150	)		(1	%)	$	19,352		$	19,463		($	111	)		(1	%)
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	J/K		4.40	%		4.45	%		4.49	%		4.48	%		4.14	%		(5	)bps					26	bps					4.45	%		3.94	%		51 bps
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	L	$	19,261		$	19,391		$	19,407		$	19,209		$	19,411		($	130	)		(1	%)	($	150	)		(1	%)	$	19,352		$	19,463		($	111	)		(1	%)
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			4			5			5			6			6			(1	)		(20	)		(2	)		(33	)		5			7			(2	)		(29	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			453			437			422			403			384			16			4			69			18			438			368			70			19

Average tangible common equity (non-GAAP)	M	$	12,834		$	12,947		$	12,948		$	12,730		$	12,913		($	113	)		(1	%)	($	79	)		(1	%)	$	12,909		$	12,948		($	39	)		—	%

Return on average tangible common equity (non-GAAP)	I/M		6.60	%		5.90	%		6.53	%		6.12	%		5.81	%		70	bps					79	bps					6.34	%		6.90	%		(56	)bps
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	J/M		6.60	%		6.67	%		6.73	%		6.76	%		6.22	%		(7	)bps					38	bps					6.67	%		5.92	%		75	bps
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	N	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/N		0.65	%		0.64	%		0.65	%		0.66	%		0.62	%		1	bps		3	bps								0.65	%		0.61	%		4	bps
Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	N	$	135,103		$	135,521		$	133,325		$	130,671		$	128,691		($	418	)		—	%	$	6,412			5	%	$	134,655		$	126,598		$	8,057			6	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			4			5			5			6			6			(1	)		(20	)		(2	)		(33	)		5			7			(2	)		(29	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			453			437			422			403			384			16			4			69			18			438			368			70			19

Average tangible assets (non-GAAP)	O	$	128,676		$	129,077		$	126,866		$	124,192		$	122,193		($	401	)		—	%	$	6,483			5	%	$	128,212		$	120,083		$	8,129			7	%

Return on average total tangible assets (non-GAAP)	G/O		0.68	%		0.59	%		0.67	%		0.63	%		0.61	%		9	bps		7	bps								0.65	%		0.74	%		(9	)bps
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/O		0.68	%		0.67	%		0.69	%		0.69	%		0.66	%		1	bps		2	bps								0.68	%		0.64	%		4	bps
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	856		$	840		$	836		$	840		$	820		$	16			2	%	$	36			4	%	$	2,532		$	2,461		$	71			3	%
Add: Noninterest income (GAAP)			353			360			347			339			341			(7	)		(2	)		12			4			1,060			1,339			(279	)		(21	)

Total revenue (GAAP)	C	$	1,209		$	1,200		$	1,183		$	1,179		$	1,161		$	9			1	%	$	48			4	%	$	3,592		$	3,800		($	208	)		(5	%)

Efficiency ratio (non-GAAP)	E/C		66.02	%		70.02	%		68.49	%		69.88	%		69.84	%		(400	)bps					(382	)bps					68.17	%		67.58	%		59	bps
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		66.02	%		66.70	%		67.65	%		67.11	%		68.02	%		(68	)bps					(200	)bps					66.78	%		69.23	%		(245	)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 NINE MONTHS ENDED SEPT 30,
																	3Q15 Change																2015 Change
		3Q15			2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015		2014		2014
																	$			%			$			%							$			%
Tangible book value per common share:
Common shares - at end of period (GAAP)	P		527,636,510			537,149,717			547,490,812			545,884,519			559,998,324			(9,513,207	)		(2	)%		(32,361,814	)		(6	)%		527,636,510		559,998,324		(32,361,814	)		(6	%)
Stockholders’ equity (GAAP)		$	19,353		$	19,339		$	19,564		$	19,268		$	19,383		$	14			—		($	30	)		—		$	19,353	$	19,383	($	30	)		—
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets (GAAP)			3			4			5			6			6			(1	)		(25	)		(3	)		(50	)		3		6		(3	)		(50	)
Add: Deferred tax liabilities related to goodwill (GAAP)			465			450			434			420			399			15			3			66			17			465		399		66			17

Tangible common equity (non-GAAP)	Q	$	12,939		$	12,909		$	13,117		$	12,806		$	12,900		$	30			—	%	$	39			—	%	$	12,939	$	12,900	$	39			—	%

Tangible book value per common share (non-GAAP)	Q/P	$	24.52		$	24.03		$	23.96		$	23.46		$	23.04		$	0.49			2	%	$	1.48			6	%	$	24.52	$	23.04	$	1.48			6	%
Net income per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	R		530,985,255			537,729,248			546,291,363			546,810,009			559,998,324			(6,743,993	)		(1	%)		(29,013,069	)		(5	%)		538,279,222		559,998,324		(21,719,102	)		(4	%)
Average common shares outstanding - diluted (GAAP)	S		533,398,158			539,909,366			549,798,717			550,676,298			560,243,747			(6,511,208	)		(1	)		(26,845,589	)		(5	)		540,926,361		560,081,031		(19,154,670	)		(3	)
Net income available to common stockholders (GAAP)	I	$	213		$	190		$	209		$	197		$	189		$	23			12		$	24			13		$	612	$	668	($	56	)		(8	)
Net income per average common share - basic (GAAP)	I/R		0.40			0.35			0.38			0.36			0.34			0.05			14			0.06			18			1.14		1.19		(0.05	)		(4	)
Net income per average common share - diluted (GAAP)	I/S		0.40			0.35			0.38			0.36			0.34			0.05			14			0.06			18			1.13		1.19		(0.06	)		(5	)
Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	J		213			215			215			217			202			(2	)		(1	)		11			5			643		573		70			12
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	J/R		0.40			0.40			0.39			0.40			0.36			—			—			0.04			11			1.20		1.02		0.18			18
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	J/S		0.40			0.40			0.39			0.39			0.36			—			—			0.04			11			1.19		1.02		0.17			17
Pro forma Basel III fully phased-in common equity tier 1 capital ratio¹:
Common equity tier 1 (regulatory)		$	13,200		$	13,270		$	13,360		$	13,173		$	13,330
Less: Change in DTA and other threshold deductions (GAAP)			2			3			3			(6	)		(5	)

Pro forma Basel III fully phased-in common equity tier 1 (non-GAAP)	T	$	13,198		$	13,267		$	13,357		$	13,179		$	13,335

Risk-weighted assets (regulatory general risk weight approach)			112,277			112,131			109,786			105,964			103,207
Add: Net change in credit and other risk-weighted assets (regulatory)			243			247			242			2,882			3,207

Basel III standardized approach risk-weighted assets (non-GAAP)	U	$	112,520		$	112,378		$	110,028		$	108,846		$	106,414

Pro forma Basel III fully phased-in common equity tier 1 capital ratio (non-GAAP)¹	T/U		11.7	%		11.8	%		12.1	%		12.1	%		12.5	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	V	$	404		$	411		$	419		$	397		$	409		($	7	)		(2	%)	($	5	)		(1	%)	$	1,234	$	1,281	($	47	)		(4	%)
Less: Restructuring charges and special items			—			6			(1	)		1			—			(6	)		(100	)		—			—			5		43		(38	)		(88	)

Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	W	$	404		$	405		$	420		$	396		$	409		($	1	)		—	%	($	5	)		(1	%)	$	1,229	$	1,238	($	9	)		(1	%)

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 NINE MONTHS ENDED SEPT 30,
																3Q15 Change																	2015 Change
		3Q15		2Q15			1Q15			4Q14			3Q14			2Q15						3Q14						2015			2014		2014
																$			%			$			%								$			%
Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	X	$	89	$	99		$	79		$	106		$	106		($	10	)		(10	%)	($	17	)		(16	%)	$	267		$	314	($	47	)		(15	%)
Less: Restructuring charges and special items			—		16			8			18			19			(16	)		(100	)		(19	)		(100	)		24			60		(36	)		(60	)

Outside services, excluding restructuring charges and special items (non-GAAP)	Y	$	89	$	83		$	71		$	88		$	87		$	6			7	%	$	2			2	%	$	243		$	254	($	11	)		(4	%)

Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	Z	$	75	$	90		$	80		$	81		$	77		($	15	)		(17	%)	($	2	)		(3	%)	$	245		$	245	$	—			—	%
Less: Restructuring charges and special items			—		15			2			5			2			(15	)		(100	)		(2	)		(100	)		17			11		6			55

Occupancy, excluding restructuring charges and special items (non-GAAP)	AA	$	75	$	75		$	78		$	76		$	75		$	—			—	%	$	—			—	%	$	228		$	234	($	6	)		(3	%)

Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	BB	$	62	$	65		$	63		$	63		$	58		($	3	)		(5	%)	$	4			7	%	$	190		$	187	$	3			2	%
Less: Restructuring charges and special items			—		—			1			1			—			—			—			—			—			1			3		(2	)		(67	)

Equipment expense, excluding restructuring charges and special items (non-GAAP)	CC	$	62	$	65		$	62		$	62		$	58		($	3	)		(5	%)	$	4			7	%	$	189		$	184	$	5			3	%

Amortization of software, excluding restructuring charges and special items:
Amortization of software	DD	$	35	$	37		$	36		$	43		$	38		($	2	)		(5	%)	($	3	)		(8	%)	$	108		$	102	$	6			6	%
Less: Restructuring charges and special items			—		—			—			6			—			—			—			—			—			—			—		—			—

Amortization of software, excluding restructuring charges and special items (non-GAAP)	EE	$	35	$	37		$	36		$	37		$	38		($	2	)		(5	%)	($	3	)		(8	%)	$	108		$	102	$	6			6	%

Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	FF	$	133	$	139		$	133		$	134		$	122		($	6	)		(4	%)	$	11			9	%	$	405		$	439	($	34	)		(8	%)
Less: Restructuring charges and special items			—		3			—			2			—			(3	)		(100	)		—			—			3			19		(16	)		(84	)

Other operating expense, excluding restructuring charges and special items (non-GAAP)	GG	$	133	$	136		$	133		$	132		$	122		($	3	)		(2	%)	$	11			9	%	$	402		$	420	($	18	)		(4	%)

Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,209	$	1,200		$	1,183		$	1,179		$	1,161		$	9			1	%	$	48			4	%	$	3,592		$	3,512	$	80			2	%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		798		801			800			791			789			(3	)		—			9			1			2,399			2,432		(33	)		(1	)

Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	HH	$	411	$	399		$	383		$	388		$	372		$	12			3	%	$	39			10	%	$	1,193		$	1,080	$	113			10	%

Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (GAAP)	II	$	335	$	282		$	315		$	283		$	274		$	53			19	%	$	61			22	%	$	932		$	985	($	53	)		(5	%)
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			—		(40	)		(10	)		(33	)		(21	)		40			100			21			100			(50	)		152		(202	)		(133	)

Income before income tax expense, excluding restructuring charges and special items (non-GAAP)	JJ	$	335	$	322		$	325		$	316		$	295		$	13			4	%	$	40			14	%	$	982		$	833	$	149			18	%

Income tax expense, excluding restructuring charges and special items:
Income tax expense (GAAP)	KK	$	115	$	92		$	106		$	86		$	85		$	23			25	%	$	30			35	%	$	313		$	317	($	4	)		(1	%)
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			—		(15	)		(4	)		(13	)		(8	)		15			100			8			100			(19	)		57		(76	)		(133	)

Income tax expense, excluding restructuring charges and special items (non-GAAP)	LL	$	115	$	107		$	110		$	99		$	93		$	8			7	%	$	22			24	%	$	332		$	260	$	72			28	%

Restructuring charges and special expense items include:
Restructuring charges		$	—	$	25		$	1		$	10		$	1		($	25	)		(100	%)	($	1	)		(100	%)		26			104		(78	)		(75	%)
Special items			—		15			9			23			20			(15	)		(100	)		(20	)		(100	)		24			32		(8	)		(25	)

Restructuring charges and special expense items	MM	$	—	$	40		$	10		$	33		$	21		($	40	)		(100	%)	($	21	)		(100	%)	$	50		$	136	($	86	)		(63	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(dollars in millions)


		THREE MONTHS ENDED SEPT 30,											THREE MONTHS ENDED JUNE 30,												THREE MONTHS ENDED MAR 31,
		2015											2015												2015
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	68		$	145		$	7	$	220		$	66		$	135		($	11	)	$	190		$	61		$	147		$	1	$	209
Less: Preferred stock dividends			—			—			7		7			—			—			—			—			—			—			—		—

Net income available to common stockholders	B	$	68		$	145		$	—	$	213		$	66		$	135		($	11	)	$	190		$	61		$	147		$	1	$	209

Return on average tangible common equity
Average common equity (GAAP)	C	$	4,791		$	4,722		$	9,748	$	19,261		$	4,681		$	4,625		$	10,085		$	19,391		$	4,649		$	4,526		$	10,232	$	19,407
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—						6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			4		4			—			—			5			5			—			—			5		5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			453		453			—			—			437			437			—			—			422		422

Average tangible common equity (non-GAAP)	D	$	4,791		$	4,722		$	3,321	$	12,834		$	4,681		$	4,625		$	3,641		$	12,947		$	4,649		$	4,526		$	3,773	$	12,948

Return on average tangible common equity (non-GAAP)	B/D		5.67	%		12.24	%		NM		6.60	%		5.66	%		11.69	%		NM			5.90	%		5.30	%		13.15	%		NM		6.53	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	53,206		$	43,113		$	38,784	$	135,103		$	52,489		$	42,617		$	40,415		$	135,521		$	51,602		$	41,606		$	40,117	$	133,325
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—						6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			4		4			—			—			5			5			—			—			5		5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			453		453			—			—			437			437			—			—			422		422

Average tangible assets (non-GAAP)	F	$	53,206		$	43,113		$	32,357	$	128,676		$	52,489		$	42,617		$	33,971		$	129,077		$	51,602		$	41,606		$	33,658	$	126,866

Return on average total tangible assets (non-GAAP)	A/F		0.51	%		1.34	%		NM		0.68	%		0.51	%		1.27	%		NM			0.59	%		0.48	%		1.43	%		NM		0.67	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	623		$	175		$	—	$	798		$	613		$	181		$	47		$	841		$	596		$	173		$	41	$	810
Net interest income (GAAP)			556			299			1		856			544			286			10			840			533			276			27		836
Noninterest income (GAAP)			235			100			18		353			230			108			22			360			219			100			28		347

Total revenue	H	$	791		$	399		$	19	$	1,209		$	774		$	394		$	32		$	1,200		$	752		$	376		$	55	$	1,183

Efficiency ratio (non-GAAP)	G/H		78.72	%		43.75	%		NM		66.02	%		79.25	%		46.07	%		NM			70.02	%		79.25	%		46.01	%		NM		68.49	%

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

(dollars in millions)


		THREE MONTHS ENDED DEC 31,											THREE MONTHS ENDED SEPT 30,
		2014											2014
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	52		$	140		$	5	$	197		$	54		$	139		($	4	)	$	189
Less: Preferred stock dividends			—			—			—		—			—			—			—			—

Net income available to common stockholders	B	$	52		$	140		$	5	$	197		$	54		$	139		($	4	)	$	189

Return on average tangible common equity
Average common equity (GAAP)	C	$	4,756		$	4,334		$	10,119	$	19,209		$	4,685		$	4,205		$	10,521		$	19,411
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6		6			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403		403			—			—			384			384

Average tangible common equity (non-GAAP)	D	$	4,756		$	4,334		$	3,640	$	12,730		$	4,685		$	4,205		$	4,023		$	12,913

Return on average tangible common equity (non-GAAP)	B/D		4.30	%		12.76	%		NM		6.12	%		4.57	%		13.10	%		NM			5.81	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	50,546		$	40,061		$	40,064	$	130,671		$	49,012		$	38,854		$	40,825		$	128,691
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6		6			—			—			6			6
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403		403			—			—			384			384

Average tangible assets (non-GAAP)	F	$	50,546		$	40,061		$	33,585	$	124,192		$	49,012		$	38,854		$	34,327		$	122,193

Return on average total tangible assets (non-GAAP)	A/F		0.40	%		1.38	%		NM		0.63	%		0.44	%		1.42	%		NM			0.61	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	611		$	180		$	33	$	824		$	609		$	162		$	39		$	810
Net interest income (GAAP)			536			283			21		840			532			270			18			820
Noninterest income (GAAP)			218			111			10		339			226			104			11			341

Total revenue	H	$	754		$	394		$	31	$	1,179		$	758		$	374		$	29		$	1,161

Efficiency ratio (non-GAAP)	G/H		81.09	%		45.48	%		NM		69.88	%		80.42	%		43.35	%		NM			69.84	%

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

(dollars in millions)


		FOR THE NINE MONTHS ENDED SEPT 30,
		2015												2014
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	195		$	427		($	3	)	$	619		$	130		$	421		$	117	$	668
Less: Preferred stock dividends			—			—			7			7			—			—			—		—

Net income available to common stockholders	B	$	195		$	427		($	10	)	$	612		$	130		$	421		$	117	$	668

Return on average tangible common equity
Average common equity (GAAP)	C	$	4,708		$	4,625		$	10,019		$	19,352		$	4,635		$	4,120		$	10,708	$	19,463
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)			—			—			438			438			—			—			368		368

Average tangible common equity (non-GAAP)	D	$	4,708		$	4,625		$	3,576		$	12,909		$	4,635		$	4,120		$	4,193	$	12,948

Return on average tangible common equity (non-GAAP)	B/D		5.55	%		12.35	%		NM			6.34	%		3.76	%		13.67	%		NM		6.90	%
Return on average total tangible assets
Average total assets (GAAP)	E	$	52,438		$	42,451		$	39,766		$	134,655		$	48,398		$	37,951		$	40,249	$	126,598
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)			—			—			438			438			—			—			368		368

Average tangible assets (non-GAAP)	F	$	52,438		$	42,451		$	33,323		$	128,212		$	48,398		$	37,951		$	33,734	$	120,083

Return on average total tangible assets (non-GAAP)	A/F		0.50	%		1.35	%		NM			0.65	%		0.36	%		1.48	%		NM		0.74	%
Efficiency ratio
Noninterest expense (GAAP)	G	$	1,832		$	529		$	88		$	2,449		$	1,902		$	472		$	194	$	2,568
Net interest income (GAAP)			1,633			861			38			2,532			1,615			790			56		2,461
Noninterest income (GAAP)			684			308			68			1,060			681			318			340		1,339

Total revenue	H	$	2,317		$	1,169		$	106		$	3,592		$	2,296		$	1,108		$	396	$	3,800

Efficiency ratio (non-GAAP)	G/H		79.07	%		45.26	%		NM			68.17	%		82.82	%		42.62	%		NM		67.58	%

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:

•

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;

•

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

•

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

•

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

•

liabilities and business restrictions resulting from litigation and regulatory investigations;

•

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;

•

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;

•

changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;

•

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

•

financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

•

a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

•

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

•

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-99.3 - October 23, 2015

Attached files

CITIZENS FINANCIAL GROUP INC/RI Reports