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

Attached files

file	filename
8-K - 8-K - CITIZENS FINANCIAL GROUP INC/RI	d105268d8k.htm
EX-99.1 - EX-99.1 - CITIZENS FINANCIAL GROUP INC/RI	d105268dex991.htm
EX-99.2 - EX-99.2 - CITIZENS FINANCIAL GROUP INC/RI	d105268dex992.htm

Exhibit 99.3

LOGO

Citizens Financial Group, Inc.

Financial Supplement

First Quarter 2016


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		20

Nonperforming Assets		21

Charge-offs, Recoveries and Related Ratios		22

Summary of Changes in the Allowances		24

Allowance Components		25

Capital and Ratios		26

Per-Share Related Information		27

Non-GAAP Financial Measures and Reconciliations		28

Forward-Looking Statements		34

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS
												1Q16 Change
	1Q16		4Q15		3Q15		2Q15			1Q15		4Q15						1Q15
												$			%			$			%
SELECTED OPERATING DATA
Total revenue	$	1,234	$	1,232	$	1,209	$	1,200		$	1,183	$	2			—	%	$	51			4	%
Noninterest expense		811		810		798		841			810		1			—			1			—

Profit before provision for credit losses		423		422		411		359			373		1			—			50			13
Provision for credit losses		91		91		76		77			58		—			—			33			57
NET INCOME		223		221		220		190			209		2			1			14			7
Net income, excluding restructuring charges and special items¹		223		221		220		215			215		2			1			8			4
Net income available to common stockholders		216		221		213		190			209		(5	)		(2	)		7			3
Net income available to common stockholders, excluding restructuring charges and special items¹		216		221		213		215			215		(5	)		(2	)		1			—
PER COMMON SHARE DATA
Basic earnings	$	0.41	$	0.42	$	0.40	$	0.35		$	0.38	($	0.01	)		(2%	)	$	0.03			8	%
Diluted earnings		0.41		0.42		0.40		0.35			0.38		(0.01	)		(2	)		0.03			8
Basic earnings, excluding restructuring charges and special items¹		0.41		0.42		0.40		0.40			0.39		(0.01	)		(2	)		0.02			5
Diluted earnings, excluding restructuring charges¹		0.41		0.42		0.40		0.40			0.39		(0.01	)		(2	)		0.02			5
Cash dividends declared and paid per share		0.10		0.10		0.10		0.10			0.10		—			—			—			—
Book value		37.28		36.76		36.68		36.00			35.73		0.52			1			1.55			4
Tangible book value¹		25.21		24.63		24.52		24.03			23.96		0.58			2			1.25			5
COMMON SHARES OUTSTANDING
Average: Basic		528,070,648		527,648,630		530,985,255		537,729,248			546,291,363		422,018			—	%		(18,220,715	)		(3%	)
Diluted		530,446,188		530,275,673		533,398,158		539,909,366			549,798,717		170,515			—			(19,352,529	)		(4	)
Common shares at period-end		528,933,727		527,774,428		527,636,510		537,149,717			547,490,812		1,159,299			—			(18,557,085	)		(3	)
Closing share price	$	20.95	$	26.19	$	23.86	$	27.31		$	24.13	($	5.24	)		(20	)	($	3.18	)		(13	)
Market capitalization		11,081		13,822		12,589		14,670			13,211		(2,741	)		(20	)		(2,130	)		(16	)
SEGMENT NET INCOME
Consumer Banking	$	71	$	67	$	68	$	66		$	61	$	4			6	%	$	10			16	%
Commercial Banking		133		152		145		135			147		(19	)		(13	)		(14	)		(10	)
Other		19		2		7		(11	)		1		17			850			18			1,800

NET INCOME	$	223	$	221	$	220	$	190		$	209	$	2			1	%	$	14			7	%

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 28-33.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)


	QUARTERLY TRENDS
																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
FINANCIAL RATIOS
Net interest margin		2.86	%		2.77	%		2.76	%		2.72	%		2.77	%		9	bps					9	bps
Return on average common equity		4.45			4.51			4.40			3.94			4.36			(6	) bps					9	bps
Return on average common equity, excluding restructuring charges and special items¹		4.45			4.51			4.40			4.45			4.49			(6	) bps					(4	) bps
Return on average tangible common equity¹		6.61			6.75			6.60			5.90			6.53			(14	) bps					8	bps
Return on average tangible common equity, excluding restructuring and special items¹		6.61			6.75			6.60			6.67			6.73			(14	) bps					(12	) bps
Return on average total assets		0.65			0.64			0.65			0.56			0.63			1	bps					2	bps
Return on average total assets, excluding restructuring charges and special items¹		0.65			0.64			0.65			0.64			0.65			1	bps					—	bps
Return on average total tangible assets¹		0.68			0.67			0.68			0.59			0.67			1	bps					1	bps
Return on average total tangible assets, excluding restructuring and special items¹		0.68			0.67			0.68			0.67			0.69			1	bps					(1	) bps
Effective income tax rate		32.87			33.45			34.12			32.69			33.68			(58	) bps					(81	) bps
Efficiency ratio¹		65.66			65.76			66.02			70.02			68.49			(10	) bps					(283	) bps
Efficiency ratio, excluding restructuring and special items¹		65.66			65.76			66.02			66.70			67.65			(10	) bps					(199	) bps
CAPITAL RATIOS - PERIOD END (PRELIMINARY)²
CET1 capital ratio		11.6	%		11.7	%		11.8	%		11.8	%		12.2	%
Tier 1 capital ratio		11.9			12.0			12.0			12.1			12.2
Total capital ratio		15.1			15.3			15.4			15.3			15.5
Tier 1 leverage ratio		10.4			10.5			10.4			10.4			10.5
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	140,077		$	138,208		$	135,447		$	137,251		$	136,535		$	1,869			1	%	$	3,542			3	%
Loans and leases:
Commercial		47,972			46,214			45,269			45,068			43,982			1,758			4			3,990			9
Retail		53,019			52,828			52,162			51,470			50,512			191			—			2,507			5

Total loans and leases		100,991			99,042			97,431			96,538			94,494			1,949			2			6,497			7
Deposits	$	102,606		$	102,539		$	101,866		$	100,615		$	98,990		$	67			—		$	3,616			4
Long-term borrowed funds		10,035			9,886			4,153			3,890			3,904			149			2			6,131			157
Total stockholders’ equity		19,965			19,646			19,600			19,586			19,564			319			2			401			2
Loans-to-deposits ratio (period-end balances)³		99.16	%		96.94	%		96.06	%		96.64	%		95.84	%		222	bps					332	bps
Loans-to-deposits ratio (average balances)³		98.66			97.21			96.29			97.49			98.58			145	bps					8	bps
Full-time equivalent employees		17,902			17,714			17,817			17,903			17,792			188			1			110			1

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 28-33.

²	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 are prepared using the Basel III standardized transitional approach.

³	Ratios include loans and leases held for sale.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)


	QUARTERLY TRENDS
											1Q16
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15						1Q15
											$			%			$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	868	$	830	$	812	$	790	$	779	$	38			5	%	$	89			11	%
Interest and fees on loans held for sale		3		2		3		3		2		1			50			1			50
Interest and fees on other loans held for sale		1		—		3		3		1		1			—			—			—
Investment securities		145		153		154		155		159		(8	)		(5	)		(14	)		(9	)
Interest-bearing deposits in banks		2		1		2		1		1		1			100			1			100

Total interest income		1,019		986		974		952		942		33			3			77			8

INTEREST EXPENSE:
Deposits		60		60		65		60		52		—			—			8			15
Federal funds purchased and securities sold under agreements to repurchase		1		3		4		2		7		(2	)		(67	)		(6	)		(86	)
Other short-term borrowed funds		11		16		17		19		15		(5	)		(31	)		(4	)		(27	)
Long-term borrowed funds		43		37		32		31		32		6			16			11			34

Total interest expense		115		116		118		112		106		(1	)		(1	)		9			8

Net interest income		904		870		856		840		836		34			4			68			8

NONINTEREST INCOME:
Service charges and fees		144		156		145		139		135		(12	)		(8	)		9			7
Card fees		50		60		60		60		52		(10	)		(17	)		(2	)		(4	)
Trust and investment services fees		37		39		41		41		36		(2	)		(5	)		1			3
Mortgage banking fees		18		20		18		30		33		(2	)		(10	)		(15	)		(45	)
Capital markets fees		22		15		21		30		22		7			47			—			—
Foreign exchange and letter of credit fees		21		23		22		22		23		(2	)		(9	)		(2	)		(9	)
Bank-owned life insurance income		13		16		14		14		12		(3	)		(19	)		1			8
Securities gains, net		9		10		2		9		8		(1	)		(10	)		1			13
Other income		16		23		30		15		26		(7	)		(30	)		(10	)		(38	)

Total noninterest income		330		362		353		360		347		(32	)		(9	)		(17	)		(5	)

TOTAL REVENUE		1,234		1,232		1,209		1,200		1,183		2			—			51			4
Provision for credit losses		91		91		76		77		58		—			—			33			57
NONINTEREST EXPENSE:
Salaries and employee benefits		425		402		404		411		419		23			6			6			1
Outside services		91		104		89		99		79		(13	)		(13	)		12			15
Occupancy		76		74		75		90		80		2			3			(4	)		(5	)
Equipment expense		65		67		62		65		63		(2	)		(3	)		2			3
Amortization of software		39		38		35		37		36		1			3			3			8
Other operating expense		115		125		133		139		133		(10	)		(8	)		(18	)		(14	)

Total noninterest expense		811		810		798		841		810		1			—			1			—

Income before income tax expense		332		331		335		282		315		1			—			17			5
Income tax expense		109		110		115		92		106		(1	)		(1	)		3			3

NET INCOME	$	223	$	221	$	220	$	190	$	209	$	2			1	%	$	14			7	%

Net income, excluding restructuring charges and special items¹	$	223	$	221	$	220	$	215	$	215	$	2			1	%	$	8			4	%

Net income available to common stockholders	$	216	$	221	$	213	$	190	$	209	($	5	)		(2%	)	$	7			3	%

Net income available to common stockholders, excluding restructuring charges and special items¹	$	216	$	221	$	213	$	215	$	215	($	5	)		(2%	)	$	1			—	%

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 28-33

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)


PERIOD END BALANCES	AS OF															MARCH 31, 2016 CHANGE
	Mar 31, 2016			Dec 31, 2015			Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2015						Mar 31, 2015
																$			%			$			%
ASSETS:
Cash and due from banks	$	839		$	1,099		$	1,067		$	961		$	954		($	260	)		(24	%)	($	115	)		(12	%)
Interest-bearing cash and due from banks		1,016			1,986			689			1,908			4,050			(970	)		(49	)		(3,034	)		(75	)
Interest-bearing deposits in banks		534			356			363			186			615			178			50			(81	)		(13	)
Securities available for sale, at fair value		17,964			17,884			18,197			18,662			19,041			80			—			(1,077	)		(6	)
Securities held to maturity		5,129			5,258			5,285			5,567			5,178			(129	)		(2	)		(49	)		(1	)
Other investment securities, at fair value		68			70			50			44			41			(2	)		(3	)		27			66
Other investment securities, at cost		896			863			822			861			861			33			4			35			4
Loans held for sale, at fair value		365			325			369			397			322			40			12			43			13
Other loans held for sale		386			40			51			300			54			346			865			332			615
Loans and leases		100,991			99,042			97,431			96,538			94,494			1,949			2			6,497			7
Less: Allowance for loan and lease losses		(1,224	)		(1,216	)		(1,201	)		(1,201	)		(1,202	)		(8	)		(1	)		(22	)		(2	)

Net loans and leases		99,767			97,826			96,230			95,337			93,292			1,941			2			6,475			7
Derivative assets		1,068			625			838			665			742			443			71			326			44
Premises and equipment		570			595			560			580			584			(25	)		(4	)		(14	)		(2	)
Bank-owned life insurance		1,576			1,564			1,553			1,543			1,535			12			1			41			3
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		161			—			—			939			—			161			—			161			—
Other assets		2,862			2,841			2,497			2,425			2,390			21			1			472			20

TOTAL ASSETS	$	140,077		$	138,208		$	135,447		$	137,251		$	136,535		$	1,869			1	%	$	3,542			3	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	27,186		$	27,649		$	27,373		$	26,678		$	26,670		($	463	)		(2	%)	$	516			2	%
Interest-bearing		75,420			74,890			74,493			73,937			72,320			530			1			3,100			4

Total deposits		102,606			102,539			101,866			100,615			98,990			67			—			3,616			4
Federal funds purchased and securities sold under agreements to repurchase		714			802			1,293			3,784			4,421			(88	)		(11	)		(3,707	)		(84	)
Other short-term borrowed funds		3,300			2,630			5,861			6,762			7,004			670			25			(3,704	)		(53	)
Derivative liabilities		832			485			641			556			616			347			72			216			35
Deferred taxes, net		852			730			637			558			586			122			17			266			45
Long-term borrowed funds		10,035			9,886			4,153			3,890			3,904			149			2			6,131			157
Due to broker		276			—			—			—			61			276			—			215			352
Other liabilities		1,497			1,490			1,396			1,500			1,389			7			—			108			8

TOTAL LIABILITIES		120,112			118,562			115,847			117,665			116,971			1,550			1			3,141			3
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized		247			247			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		18,730			18,725			18,718			18,714			18,707			5			—			23			—
Retained earnings		2,076			1,913			1,745			1,585			1,448			163			9			628			43
Treasury stock, at cost		(858	)		(858	)		(857	)		(607	)		(357	)		—			—			(501	)		(140	)
Accumulated other comprehensive loss		(236	)		(387	)		(259	)		(359	)		(240	)		151			39			4			2

TOTAL STOCKHOLDERS’ EQUITY		19,965			19,646			19,600			19,586			19,564			319			2			401			2

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	140,077		$	138,208		$	135,447		$	137,251		$	136,535		$	1,869			1	%	$	3,542			3	%

Memo: Total tangible common equity¹	$	13,333		$	13,000		$	12,939		$	12,909		$	13,117		$	333			3	%	$	216			2	%

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										MARCH 31, 2016 CHANGE
	Mar 31, 2016		Dec 31, 2015		Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2015						Mar 31, 2015
											$			%			$			%
LOANS AND LEASES:
Commercial	$	34,671	$	33,264	$	32,726	$	33,027	$	32,249	$	1,407			4	%	$	2,422			8	%
Commercial real estate		9,406		8,971		8,678		8,157		7,863		435			5			1,543			20
Leases		3,895		3,979		3,865		3,884		3,870		(84	)		(2	)		25			1

Total commercial		47,972		46,214		45,269		45,068		43,982		1,758			4			3,990			9

Residential mortgages		13,345		13,318		12,792		12,253		11,808		27			—			1,537			13
Home equity loans		2,313		2,557		2,842		3,022		3,212		(244	)		(10	)		(899	)		(28	)
Home equity lines of credit		14,526		14,674		14,707		14,917		15,127		(148	)		(1	)		(601	)		(4	)
Home equity loans serviced by others¹		930		986		1,054		1,126		1,192		(56	)		(6	)		(262	)		(22	)
Home equity lines of credit serviced by others¹		339		389		441		494		544		(50	)		(13	)		(205	)		(38	)
Automobile		13,847		13,828		13,876		13,727		13,179		19			—			668			5
Student		5,006		4,359		3,846		3,355		2,852		647			15			2,154			76
Credit card		1,581		1,634		1,628		1,613		1,588		(53	)		(3	)		(7	)		—
Other retail		1,132		1,083		976		963		1,010		49			5			122			12

Total retail		53,019		52,828		52,162		51,470		50,512		191			—			2,507			5

Total loans and leases	$	100,991	$	99,042	$	97,431	$	96,538	$	94,494	$	1,949			2	%	$	6,497			7	%

Loans held for sale	$	365	$	325	$	369	$	397	$	322	$	40			12	%	$	43			13	%
Other loans held for sale²		386		40		51		300		54		346			865			332			615

Loans and loans held for sale	$	101,742	$	99,407	$	97,851	$	97,235	$	94,870	$	2,335			2	%	$	6,872			7	%

DEPOSITS:
Demand	$	27,186	$	27,649	$	27,373	$	26,678	$	26,670	($	463	)		(2	%)	$	516			2	%
Checking with interest		18,706		17,921		18,350		17,114		16,738		785			4			1,968			12
Regular savings		8,748		8,218		8,011		8,080		8,398		530			6			350			4
Money market accounts		35,513		36,727		35,539		35,735		34,543		(1,214	)		(3	)		970			3
Term deposits		12,453		12,024		12,593		13,008		12,641		429			4			(188	)		(1	)

Total deposits	$	102,606	$	102,539	$	101,866	$	100,615	$	98,990	$	67			—		$	3,616			4

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

²	Includes $373 million of troubled debt restructured loans that were transferred from loans and leases to other loans held for sale on March 31, 2016, including $288 million of residential mortgages and $85 million of home equity loans.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)


AVERAGE BALANCES	QUARTERLY TRENDS
																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,675		$	1,526		$	1,322		$	2,054		$	2,092		$	149			10	%	($	417	)		(20	%)

Taxable investment securities		23,864			24,129			24,440			25,081			24,955			(265	)		(1	)		(1,091	)		(4	)
Non-taxable investment securities		9			9			9			10			10			—			—			(1	)		(10	)

Total investment securities		23,873			24,138			24,449			25,091			24,965			(265	)		(1	)		(1,092	)		(4	)

Investment securities and interest-bearing deposits		25,548			25,664			25,771			27,145			27,057			(116	)		—			(1,509	)		(6	)
Commercial		34,018			33,080			32,832			32,855			31,911			938			3			2,107			7
Commercial real estate		9,108			8,855			8,406			7,947			7,700			253			3			1,408			18
Leases		3,917			3,884			3,936			3,894			3,895			33			1			22			1

Total commercial		47,043			45,819			45,174			44,696			43,506			1,224			3			3,537			8

Residential mortgages		13,465			13,030			12,470			11,980			11,855			435			3			1,610			14
Home equity loans		2,471			2,751			2,928			3,138			3,332			(280	)		(10	)		(861	)		(26	)
Home equity lines of credit		14,632			14,659			14,813			15,084			15,310			(27	)		—			(678	)		(4	)
Home equity loans serviced by others¹		958			1,017			1,086			1,134			1,193			(59	)		(6	)		(235	)		(20	)
Home equity lines of credit serviced by others¹		340			375			425			469			522			(35	)		(9	)		(182	)		(35	)
Automobile		13,792			13,824			13,810			13,484			12,933			(32	)		—			859			7
Student		4,852			4,052			3,530			3,029			2,623			800			20			2,229			85
Credit cards		1,601			1,625			1,616			1,606			1,637			(24	)		(1	)		(36	)		(2	)
Other retail		1,108			1,047			939			986			1,041			61			6			67			6

Total retail		53,219			52,380			51,617			50,910			50,446			839			2			2,773			5

Total loans and leases		100,262			98,199			96,791			95,606			93,952			2,063			2			6,310			7
Loans held for sale		306			325			327			308			242			(19	)		(6	)		64			26
Other loans held for sale		49			13			128			146			91			36			277			(42	)		(46	)

Interest-earning assets		126,165			124,201			123,017			123,205			121,342			1,964			2			4,823			4
Allowance for loan and lease losses		(1,212	)		(1,196	)		(1,197	)		(1,198	)		(1,192	)		(16	)		(1	)		(20	)		(2	)
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Other noninterest-earning assets		6,951			6,417			6,407			6,638			6,299			534			8			652			10

Total noninterest-earning assets		12,615			12,097			12,086			12,316			11,983			518			4			632			5

TOTAL ASSETS	$	138,780		$	136,298		$	135,103		$	135,521		$	133,325		$	2,482			2	%	$	5,455			4	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	17,993		$	17,117		$	16,934		$	16,561		$	16,039		$	876			5	%	$	1,954			12	%
Money market and savings		44,619			44,575			44,572			42,977			41,666			44			—			2,953			7
Term deposits		12,199			12,201			12,730			12,576			12,184			(2	)		—			15			—

Total interest-bearing deposits		74,811			73,893			74,236			72,114			69,889			918			1			4,922			7
Federal funds purchased and securities sold under agreements to repurchase²		881			1,635			2,880			4,372			4,607			(754	)		(46	)		(3,726	)		(81	)
Other short-term borrowed funds		3,098			4,964			5,062			6,498			6,969			(1,866	)		(38	)		(3,871	)		(56	)
Long-term borrowed funds		9,894			6,004			4,059			3,902			3,930			3,890			65			5,964			152

Total borrowed funds		13,873			12,603			12,001			14,772			15,506			1,270			10			(1,633	)		(11	)

Total interest-bearing liabilities		88,684			86,496			86,237			86,886			85,395			2,188			3			3,289			4
Total demand deposits		27,170			27,475			26,754			26,419			25,756			(305	)		(1	)		1,414			5
Other liabilities		3,112			2,721			2,604			2,592			2,767			391			14			345			12

TOTAL LIABILITIES		118,966			116,692			115,595			115,897			113,918			2,274			2			5,048			4

STOCKHOLDERS’ EQUITY		19,814			19,606			19,508			19,624			19,407			208			1			407			2

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	138,780		$	136,298		$	135,103		$	135,521		$	133,325		$	2,482			2	%	$	5,455			4	%

Memo: Total average tangible common equity³	$	13,169		$	12,948		$	12,834		$	12,947		$	12,948		$	221			2	%	$	221			2	%

Total deposits (interest-bearing and demand)	$	101,981		$	101,368		$	100,990		$	98,533		$	95,645		$	613			1	%	$	6,336			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 29.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS
AVERAGE ANNUALIZED YIELDS & RATES	1Q16					4Q15					3Q15					2Q15					1Q15
	Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense
INTEREST-EARNING ASSETS:
Interest-bearing deposits in banks		0.42	%	$	2		0.41	%	$	1		0.44	%	$	2		0.22	%	$	1		0.19	%	$	1

Taxable investment securities		2.43			145		2.52			153		2.52			154		2.47			155		2.55			159
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.43			145		2.52			153		2.52			154		2.47			155		2.55			159

Investment securities and interest-bearing deposits					147					154					156					156					160

Commercial		3.08			264		2.92			247		2.89			243		2.83			235		2.84			226
Commercial real estate		2.69			62		2.49			56		2.50			54		2.55			51		2.59			50
Leases		2.44			24		2.44			23		2.45			24		2.56			25		2.53			25

Total commercial		2.95			350		2.80			326		2.78			321		2.75			311		2.77			301

Residential mortgages		3.76			126		3.77			123		3.76			117		3.76			113		3.79			112
Home equity loans		5.51			34		5.30			37		5.32			40		5.43			42		5.40			44
Home equity lines of credit		3.11			113		2.95			109		2.97			111		2.94			110		2.94			111
Home equity loans serviced by others¹		6.94			17		6.94			17		6.93			19		7.04			20		7.09			21
Home equity lines of credit serviced by others¹		2.19			2		2.40			2		2.30			3		2.56			3		2.58			3
Automobile		2.83			97		2.80			98		2.75			95		2.68			90		2.78			89
Student		5.02			60		4.97			51		5.01			45		5.05			38		5.13			33
Credit cards		11.29			45		10.91			45		10.95			44		10.92			44		11.10			45
Other retail		8.66			24		8.08			22		7.72			17		7.61			19		7.59			20

Total retail		3.91			518		3.82			504		3.79			491		3.77			479		3.83			478

Total loans and leases		3.46			868		3.34			830		3.32			812		3.30			790		3.34			779
Loans held for sale		3.70			3		3.44			2		3.69			3		3.41			3		3.29			2
Other loans held for sale		6.64			1		5.93			—		6.96			3		7.79			3		6.85			1

Total interest-earning assets		3.23			1,019		3.15			986		3.13			974		3.08			952		3.12			942
INTEREST-BEARING LIABILITIES:
Checking with interest		0.14			7		0.11			5		0.12			5		0.11			5		0.11			4
Money market and savings		0.26			29		0.27			30		0.29			33		0.27			29		0.25			25
Term deposits		0.80			24		0.84			25		0.84			27		0.81			26		0.78			23

Total interest-bearing deposits		0.32			60		0.33			60		0.34			65		0.33			60		0.31			52
Federal funds purchased and securities sold under agreements to repurchase²		0.23			1		0.64			3		0.52			4		0.22			2		0.60			7
Other short-term borrowed funds		1.40			11		1.26			16		1.32			17		1.18			19		0.83			15
Long-term borrowed funds		1.75			43		2.44			37		3.16			32		3.19			31		3.27			32

Total borrowed funds		1.58			55		1.74			56		1.75			53		1.43			52		1.38			54

Total interest-bearing liabilities		0.52			115		0.53			116		0.54			118		0.52			112		0.50			106
INTEREST RATE SPREAD		2.71	%				2.62	%				2.59	%				2.56	%				2.62	%
NET INTEREST MARGIN		2.86					2.77					2.76					2.72					2.77
Memo: Total deposits costs		0.24			60		0.24			60		0.25			65		0.24			60		0.22			52

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

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

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING

(dollars in millions, except ratios)


	FIRST QUARTER 2016											FOURTH QUARTER 2015												CHANGE
																								1Q16 from 4Q15
	Consumer Banking			Commercial Banking			Other¹		Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%
Net interest income	$	581		$	300		$	23	$	904		$	565		$	301		$	4		$	870		$	34			4	%
Noninterest income		208			99			23		330			226			107			29			362			(32	)		(9	)

Total revenue		789			399			46		1,234			791			408			33			1,232			2			—
Noninterest expense		616			187			8		811			624			180			6			810			1			—

Profit before provision for credit losses		173			212			38		423			167			228			27			422			1			—
Provision for credit losses		63			9			19		91			65			(2	)		28			91			—			—

Income (loss) before income tax expense (benefit)		110			203			19		332			102			230			(1	)		331			1			—
Income tax expense (benefit)		39			70			—		109			35			78			(3	)		110			(1	)		(1	)

Net income	$	71		$	133		$	19	$	223		$	67		$	152		$	2		$	221		$	2			1	%

Average Balances
Total assets	$	55,116		$	45,304		$	38,360	$	138,780		$	54,065		$	43,835		$	38,398		$	136,298		$	2,482			2	%
Total loans and leases²		53,744			43,899			2,974		100,617			52,737			42,642			3,158			98,537			2,080			2
Deposits		70,871			24,833			6,277		101,981			70,939			24,600			5,829			101,368			613			1
Interest-earning assets		53,793			43,987			28,385		126,165			52,785			42,777			28,639			124,201			1,964			2
Key Metrics
Net interest margin		4.35	%		2.74	%		NM		2.86	%		4.25	%		2.80	%		NM			2.77	%		9	bps
Efficiency ratio⁴		78.08			46.74			NM		65.66			78.85			44.02			NM			65.76			(10	) bps
Loans-to-deposits ratio (average balances)		75.83			176.78			NM		98.66			74.34			173.34			NM			97.21			145	bps
Return on total average tangible assets⁴		0.52			1.18			NM		0.68			0.49			1.37			NM			0.67			1	bps
Return on average tangible common equity^3,4		5.59			11.19			NM		6.61			5.50			12.57			NM			6.75			(14	) 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, 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 28-33.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)


	FIRST QUARTER 2016											FIRST QUARTER 2015												CHANGE
																								1Q16 from 1Q15
	Consumer Banking			Commercial Banking			Other¹		Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%
Net interest income	$	581		$	300		$	23	$	904		$	533		$	276		$	27		$	836		$	68			8	%
Noninterest income		208			99			23		330			219			100			28			347			(17	)		(5	)

Total revenue		789			399			46		1,234			752			376			55			1,183			51			4
Noninterest expense		616			187			8		811			596			173			41			810			1			—

Profit before provision for credit losses		173			212			38		423			156			203			14			373			50			13
Provision for credit losses		63			9			19		91			63			(21	)		16			58			33			57

Income (loss) before income tax expense (benefit)		110			203			19		332			93			224			(2	)		315			17			5
Income tax expense (benefit)		39			70			—		109			32			77			(3	)		106			3			3

Net income	$	71		$	133		$	19	$	223		$	61		$	147		$	1		$	209		$	14			7	%

Average Balances
Total assets	$	55,116		$	45,304		$	38,360	$	138,780		$	51,602		$	41,606		$	40,117		$	133,325		$	5,455			4	%
Total loans and leases²		53,744			43,899			2,974		100,617			50,260			40,241			3,784			94,285			6,332			7
Deposits³		70,871			24,833			6,277		101,981			67,518			21,932			6,195			95,645			6,336			7
Interest-earning assets		53,793			43,987			28,385		126,165			50,294			40,344			30,704			121,342			4,823			4
Key Metrics
Net interest margin		4.35	%		2.74	%		NM		2.86	%		4.30	%		2.77	%		NM			2.77	%		9	bps
Efficiency ratio⁴		78.08			46.74			NM		65.66			79.25			46.01			NM			68.49			(283	) bps
Loans-to-deposits ratio (average balances)		75.83			176.78			NM		98.66			74.44			183.48			NM			98.58			8	bps
Return on average total tangible assets⁴		0.52			1.18			NM		0.68			0.48			1.43			NM			0.67			1	bps
Return on average tangible common equity^3,4		5.59			11.19			NM		6.61			5.30			13.15			NM			6.53			8	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 28-33.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS
CONSUMER BANKING																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
Net interest income	$	581		$	565		$	556		$	544		$	533		$	16			3	%	$	48			9	%
Noninterest income		208			226			235			230			219			(18	)		(8	)		(11	)		(5	)

Total revenue		789			791			791			774			752			(2	)		—			37			5
Noninterest expense		616			624			623			613			596			(8	)		(1	)		20			3

Profit before provision for credit losses		173			167			168			161			156			6			4			17			11
Provision for credit losses		63			65			64			60			63			(2	)		(3	)		—			—

Income before income tax expense		110			102			104			101			93			8			8			17			18
Income tax expense		39			35			36			35			32			4			11			7			22

Net income	$	71		$	67		$	68		$	66		$	61		$	4			6	%	$	10			16	%

Average Balances
Total assets	$	55,116		$	54,065		$	53,206		$	52,489		$	51,602		$	1,051			2	%	$	3,514			7	%
Total loans and leases¹		53,744			52,737			51,886			51,024			50,260			1,007			2			3,484			7
Deposits		70,871			70,939			70,527			69,963			67,518			(68	)		—			3,353			5
Interest-earning assets		53,793			52,785			51,928			51,061			50,294			1,008			2			3,499			7
Key Metrics
Net interest margin		4.35	%		4.25	%		4.25	%		4.28	%		4.30	%		10	bps					5	bps
Efficiency ratio³		78.08			78.85			78.72			79.25			79.25			(77	) bps					(117	) bps
Loans-to-deposits ratio (average balances)		75.83			74.34			73.57			72.93			74.44			149	bps					139	bps
Return on average total tangible assets³		0.52			0.49			0.51			0.51			0.48			3	bps					4	bps
Return on average tangible common equity^2,3		5.59			5.50			5.67			5.66			5.30			9	bps					29	bps

¹	Includes loans and leases 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 28-33.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS
COMMERCIAL BANKING																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
Net interest income	$	300		$	301		$	299		$	286		$	276		($	1	)		—	%	$	24			9	%
Noninterest income		99			107			100			108			100			(8	)		(7	)		(1	)		(1	)

Total revenue		399			408			399			394			376			(9	)		(2	)		23			6
Noninterest expense		187			180			175			181			173			7			4			14			8

Profit before provision for credit losses		212			228			224			213			203			(16	)		(7	)		9			4
Provision for credit losses		9			(2	)		3			7			(21	)		11			550			30			143

Income before income tax expense		203			230			221			206			224			(27	)		(12	)		(21	)		(9	)
Income tax expense		70			78			76			71			77			(8	)		(10	)		(7	)		(9	)

Net income	$	133		$	152		$	145		$	135		$	147		($	19	)		(13	%)	($	14	)		(10	%)

Average Balances
Total assets	$	45,304		$	43,835		$	43,113		$	42,617		$	41,606		$	1,469			3	%	$	3,698			9	%
Total loans and leases¹		43,899			42,642			41,993			41,467			40,241			1,257			3			3,658			9
Deposits		24,833			24,600			24,604			22,717			21,932			233			1			2,901			13
Interest-earning assets		43,987			42,777			42,070			41,535			40,344			1,210			3			3,643			9
Key Metrics
Net interest margin		2.74	%		2.80	%		2.81	%		2.76	%		2.77	%		(6	) bps					(3	) bps
Efficiency ratio³		46.74			44.02			43.75			46.07			46.01			272	bps					73	bps
Loans-to-deposits ratio (average balances)		176.78			173.34			170.68			182.54			183.48			344	bps					(670	) bps
Return on average total tangible assets³		1.18			1.37			1.34			1.27			1.43			(19	) bps					(25	) bps
Return on average tangible common equity^2,3		11.19			12.57			12.24			11.69			13.15			(138	) bps					(196	) bps

¹	Includes loans and leases 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 28-33.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)


	QUARTERLY TRENDS
OTHER¹														1Q16 Change
	1Q16		4Q15			3Q15		2Q15			1Q15			4Q15						1Q15
														$			%			$			%
Net interest income	$	23	$	4		$	1	$	10		$	27		$	19			475	%	($	4	)		(15	%)
Noninterest income		23		29			18		22			28			(6	)		(21	)		(5	)		(18	)

Total revenue		46		33			19		32			55			13			39			(9	)		(16	)
Noninterest expense		8		6			—		47			41			2			33			(33	)		(80	)

Profit (loss) before provision for credit losses		38		27			19		(15	)		14			11			41			24			171
Provision for credit losses		19		28			9		10			16			(9	)		(32	)		3			19

Income (loss) before income tax expense (benefit)		19		(1	)		10		(25	)		(2	)		20			NM			21			NM
Income tax expense (benefit)		—		(3	)		3		(14	)		(3	)		3			100			3			100

Net income (loss)	$	19	$	2		$	7	($	11	)	$	1		$	17			NM		$	18			NM

Average Balances
Total assets	$	38,360	$	38,398		$	38,784	$	40,415		$	40,117		($	38	)		—	%	($	1,757	)		(4	%)
Total loans and leases		2,974		3,158			3,367		3,569			3,784			(184	)		(6	)		(810	)		(21	)
Deposits		6,277		5,829			5,859		5,853			6,195			448			8			82			1
Interest-earning assets		28,385		28,639			29,019		30,609			30,704			(254	)		(1	)		(2,319	)		(8	)

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)


	QUARTERLY TRENDS
CONSOLIDATED																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
Net interest income	$	904		$	870		$	856		$	840		$	836		$	34			4	%	$	68			8	%
Noninterest income		330			362			353			360			347			(32	)		(9	)		(17	)		(5	)

Total revenue		1,234			1,232			1,209			1,200			1,183			2			—			51			4
Noninterest expense		811			810			798			841			810			1			—			1			—

Profit before provision for credit losses		423			422			411			359			373			1			—			50			13
Provision for credit losses		91			91			76			77			58			—			—			33			57

Income before income tax expense		332			331			335			282			315			1			—			17			5
Income tax expense		109			110			115			92			106			(1	)		(1	)		3			3

Net income	$	223		$	221		$	220		$	190		$	209		$	2			1	%	$	14			7	%

Average Balances
Total assets	$	138,780		$	136,298		$	135,103		$	135,521		$	133,325		$	2,482			2	%	$	5,455			4	%
Total loans and leases¹		100,617			98,537			97,246			96,060			94,285			2,080			2			6,332			7
Deposits		101,981			101,368			100,990			98,533			95,645			613			1			6,336			7
Interest-earning assets		126,165			124,201			123,017			123,205			121,342			1,964			2			4,823			4
Key Metrics
Net interest margin		2.86	%		2.77	%		2.76	%		2.72	%		2.77	%		9	bps					9	bps
Efficiency ratio²		65.66			65.76			66.02			70.02			68.49			(10	) bps					(283	) bps
Loans-to-deposits ratio (average balances)		98.66			97.21			96.29			97.49			98.58			145	bps					8	bps
Return on average total tangible assets²		0.68			0.67			0.68			0.59			0.67			1	bps					1	bps
Return on average tangible common equity²		6.61			6.75			6.60			5.90			6.53			(14	) bps					8	bps

¹	Includes loans and leases held for sale.

²	These are non-GAAP financial measures. For further information on these measures, refer to pages 28-33.

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)


	QUARTERLY TRENDS
												1Q16 Change
	1Q16		4Q15		3Q15		2Q15			1Q15		4Q15						1Q15
												$			%			$			%
Net interest income:
Consumer Banking	$	581	$	565	$	556	$	544		$	533	$	16			3	%	$	48			9	%
Commercial Banking		300		301		299		286			276		(1	)		—			24			9
Other		23		4		1		10			27		19			475			(4	)		(15	)

Net interest income	$	904	$	870	$	856	$	840		$	836	$	34			4	%	$	68			8	%

Noninterest income:
Consumer Banking	$	208	$	226	$	235	$	230		$	219	($	18	)		(8	%)	($	11	)		(5	%)
Commercial Banking		99		107		100		108			100		(8	)		(7	)		(1	)		(1	)
Other		23		29		18		22			28		(6	)		(21	)		(5	)		(18	)

Noninterest income	$	330	$	362	$	353	$	360		$	347	($	32	)		(9	%)	($	17	)		(5	%)

Total revenue:
Consumer Banking	$	789	$	791	$	791	$	774		$	752	($	2	)		—	%	$	37			5	%
Commercial Banking		399		408		399		394			376		(9	)		(2	)		23			6
Other		46		33		19		32			55		13			39			(9	)		(16	)

Total revenue	$	1,234	$	1,232	$	1,209	$	1,200		$	1,183	$	2			—	%	$	51			4	%

Noninterest expense:
Consumer Banking	$	616	$	624	$	623	$	613		$	596	($	8	)		(1	%)	$	20			3	%
Commercial Banking		187		180		175		181			173		7			4			14			8
Other		8		6		—		47			41		2			33			(33	)		(80	)

Noninterest expense	$	811	$	810	$	798	$	841		$	810	$	1			—	%	$	1			—	%

Profit before provision for credit losses:
Consumer Banking	$	173	$	167	$	168	$	161		$	156	$	6			4	%	$	17			11	%
Commercial Banking		212		228		224		213			203		(16	)		(7	)		9			4
Other		38		27		19		(15	)		14		11			41			24			171

Profit before provision for credit losses	$	423	$	422	$	411	$	359		$	373	$	1			—	%	$	50			13	%

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS
														1Q16 Change
	1Q16		4Q15			3Q15		2Q15			1Q15			4Q15						1Q15
														$			%			$			%
Provision for credit losses:
Consumer Banking	$	63	$	65		$	64	$	60		$	63		($	2	)		(3	%)	$	—			—	%
Commercial Banking		9		(2	)		3		7			(21	)		11			550			30			143
Other		19		28			9		10			16			(9	)		(32	)		3			19

Provision for credit losses	$	91	$	91		$	76	$	77		$	58		$	—			—	%	$	33			57	%

Income before income tax expense:
Consumer Banking	$	110	$	102		$	104	$	101		$	93		$	8			8	%	$	17			18	%
Commercial Banking		203		230			221		206			224			(27	)		(12	)		(21	)		(9	)
Other		19		(1	)		10		(25	)		(2	)		20			2,000			21			1,050

Income before income tax expense	$	332	$	331		$	335	$	282		$	315		$	1			—	%	$	17			5	%

Income tax expense:
Consumer Banking	$	39	$	35		$	36	$	35		$	32		$	4			11	%	$	7			22	%
Commercial Banking		70		78			76		71			77			(8	)		(10	)		(7	)		(9	)
Other		—		(3	)		3		(14	)		(3	)		3			100			3			100

Income tax expense	$	109	$	110		$	115	$	92		$	106		($	1	)		(1	)%	$	3			3	%

Net income:
Consumer Banking	$	71	$	67		$	68	$	66		$	61		$	4			6	%	$	10			16	%
Commercial Banking		133		152			145		135			147			(19	)		(13	)		(14	)		(10	)
Other		19		2			7		(11	)		1			17			850			18			1,800

Net income	$	223	$	221		$	220	$	190		$	209		$	2			1	%	$	14			7	%

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS
AVERAGE BALANCES											1Q16 Change
	1Q16		4Q15		3Q15		2Q15		1Q15		4Q15						1Q15
											$			%			$			%
Total assets:
Consumer Banking	$	55,116	$	54,065	$	53,206	$	52,489	$	51,602	$	1,051			2	%	$	3,514			7	%
Commercial Banking		45,304		43,835		43,113		42,617		41,606		1,469			3			3,698			9
Other		38,360		38,398		38,784		40,415		40,117		(38	)		—			(1,757	)		(4	)

Total assets	$	138,780	$	136,298	$	135,103	$	135,521	$	133,325	$	2,482			2	%	$	5,455			4	%

Loans and leases¹:
Consumer Banking	$	53,744	$	52,737	$	51,886	$	51,024	$	50,260	$	1,007			2	%	$	3,484			7	%
Commercial Banking		43,899		42,642		41,993		41,467		40,241		1,257			3			3,658			9
Other		2,974		3,158		3,367		3,569		3,784		(184	)		(6	)		(810	)		(21	)

Total loans and leases	$	100,617	$	98,537	$	97,246	$	96,060	$	94,285	$	2,080			2	%	$	6,332			7	%

Deposits:
Consumer Banking	$	70,871	$	70,939	$	70,527	$	69,963	$	67,518	($	68	)		—	%	$	3,353			5	%
Commercial Banking		24,833		24,600		24,604		22,717		21,932		233			1			2,901			13
Other		6,277		5,829		5,859		5,853		6,195		448			8			82			1

Total deposits	$	101,981	$	101,368	$	100,990	$	98,533	$	95,645	$	613			1	%	$	6,336			7	%

Interest-earning assets:
Consumer Banking	$	53,793	$	52,785	$	51,928	$	51,061	$	50,294	$	1,008			2	%	$	3,499			7	%
Commercial Banking		43,987		42,777		42,070		41,535		40,344		1,210			3			3,643			9
Other		28,385		28,639		29,019		30,609		30,704		(254	)		(1	)		(2,319	)		(8	)

Total interest-earning assets	$	126,165	$	124,201	$	123,017	$	123,205	$	121,342	$	1,964			2	%	$	4,823			4	%

¹	Includes loans and leases held for sale.

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS
KEY METRICS																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15			1Q15
																bps			bps
Net Interest Margin (NIM)
Consumer Banking		4.35	%		4.25	%		4.25	%		4.28	%		4.30	%		10			5
Commercial Banking		2.74			2.80			2.81			2.76			2.77			(6	)		(3	)
Other		NM			NM			NM			NM			NM			—			—
NIM		2.86			2.77			2.76			2.72			2.77			9			9
Efficiency Ratio³
Consumer Banking		78.08	%		78.85	%		78.72	%		79.25	%		79.25	%		(77	)		(117	)
Commercial Banking		46.74			44.02			43.75			46.07			46.01			272			73
Other		NM			NM			NM			NM			NM			—			—
Efficiency Ratio		65.66			65.76			66.02			70.02			68.49			(10	)		(283	)
Loans to Deposits Ratio (average balance) (LDR)¹
Consumer Banking		75.83	%		74.34	%		73.57	%		72.93	%		74.44	%		149			139
Commercial Banking		176.78			173.34			170.68			182.54			183.48			344			(670	)
Other		NM			NM			NM			NM			NM			—			—
LDR		98.66			97.21			96.29			97.49			98.58			145			8
Return on Average Total Tangible Assets (ROTA)³
Consumer Banking		0.52	%		0.49	%		0.51	%		0.51	%		0.48	%		3			4
Commercial Banking		1.18			1.37			1.34			1.27			1.43			(19	)		(25	)
Other		NM			NM			NM			NM			NM			—			—
ROTA		0.68			0.67			0.68			0.59			0.67			1			1
Return on Average Tangible Common Equity (ROTCE)^2,3
Consumer Banking		5.59	%		5.50	%		5.67	%		5.66	%		5.30	%		9			29
Commercial Banking		11.19			12.57			12.24			11.69			13.15			(138	)		(196	)
Other		NM			NM			NM			NM			NM			—			—
ROTCE		6.61			6.75			6.60			5.90			6.53			(14	)		8

¹	Includes loans and leases 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 28-33.

CREDIT-RELATED INFORMATION

(dollars in millions)


	AS OF										MARCH 31, 2016 CHANGE
	Mar 31, 2016		Dec 31, 2015		Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2015						Mar 31, 2015
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	34,671	$	33,264	$	32,726	$	33,027	$	32,249	$	1,407			4	%	$	2,422			8	%
Commercial real estate		9,406		8,971		8,678		8,157		7,863		435			5			1,543			20
Leases		3,895		3,979		3,865		3,884		3,870		(84	)		(2	)		25			1

Total commercial		47,972		46,214		45,269		45,068		43,982		1,758			4			3,990			9
Residential mortgages		13,345		13,318		12,792		12,253		11,808		27			—			1,537			13
Home equity loans		2,313		2,557		2,842		3,022		3,212		(244	)		(10	)		(899	)		(28	)
Home equity lines of credit		14,526		14,674		14,707		14,917		15,127		(148	)		(1	)		(601	)		(4	)
Home equity loans serviced by others¹		930		986		1,054		1,126		1,192		(56	)		(6	)		(262	)		(22	)
Home equity lines of credit serviced by others¹		339		389		441		494		544		(50	)		(13	)		(205	)		(38	)
Automobile		13,847		13,828		13,876		13,727		13,179		19			—			668			5
Student		5,006		4,359		3,846		3,355		2,852		647			15			2,154			76
Credit card		1,581		1,634		1,628		1,613		1,588		(53	)		(3	)		(7	)		—
Other retail		1,132		1,083		976		963		1,010		49			5			122			12

Total retail		53,019		52,828		52,162		51,470		50,512		191			—			2,507			5

Total loans and leases		100,991		99,042		97,431		96,538		94,494		1,949			2			6,497			7
Derivative receivable - commercial		1,057		619		828		658		733		438			71			324			44
Derivative receivable - retail		11		6		10		7		9		5			83			2			22

Total derivative receivable		1,068		625		838		665		742		443			71			326			44

Total credit-related assets		102,059		99,667		98,269		97,203		95,236		2,392			2			6,823			7
Undrawn commitments to extend credit - commercial		30,352		30,823		29,751		29,422		29,110		(471	)		(2	)		1,242			4
Financial standby letters of credit		1,921		2,010		2,077		2,181		2,292		(89	)		(4	)		(371	)		(16	)
Performance letters of credit		41		42		45		55		60		(1	)		(2	)		(19	)		(32	)
Commercial letters of credit		63		87		63		59		58		(24	)		(28	)		5			9
Marketing rights		47		47		47		49		51		—			—			(4	)		(8	)
Risk participation agreements		53		26		39		22		26		27			104			27			104

Total commercial lending-related arrangements		32,477		33,035		32,022		31,788		31,597		(558	)		(2	)		880			3
Undrawn commitments to extend credit - retail		26,637		25,701		25,755		26,465		26,114		936			4			523			2
Residential mortgage loans sold with recourse		10		10		11		12		10		—			—			—			—

Total retail lending-related arrangements		26,647		25,711		25,766		26,477		26,124		936			4			523			2

Total lending-related arrangements		59,124		58,746		57,788		58,265		57,721		378			1			1,403			2

Total credit exposure	$	161,183	$	158,413	$	156,057	$	155,468	$	152,957	$	2,770			2	%	$	8,226			5	%

Memo: Total credit exposure by product category															—						—
Commercial exposure	$	81,506	$	79,868	$	78,119	$	77,514	$	76,312	$	1,638			2	%	$	5,194			7	%
Retail exposure		79,677		78,545		77,938		77,954		76,645		1,132			1			3,032			4

Total credit exposure	$	161,183	$	158,413	$	156,057	$	155,468	$	152,957	$	2,770			2	%	$	8,226			5	%

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															MARCH 31, 2016 CHANGE
	Mar 31, 2016			Dec 31, 2015			Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2015						Mar 31, 2015
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	284		$	71		$	88		$	83		$	97		$	213			300	%	$	187			193	%
Commercial real estate		86			77			42			42			60			9			12			26			43
Leases		—			—			—			—			1			—			—			(1	)		(100	)

Total commercial		370			148			130			125			158			222			150			212			134
Residential mortgages^{2, 3}		174			331			324			329			347			(157	)		(47	)		(173	)		(50	)
Home equity loans^{2, 4}		99			135			144			151			180			(36	)		(27	)		(81	)		(45	)
Home equity lines of credit⁴		261			272			270			292			300			(11	)		(4	)		(39	)		(13	)
Home equity loans serviced by others⁵		37			38			39			44			44			(1	)		(3	)		(7	)		(16	)
Home equity lines of credit serviced by others⁵		38			32			31			26			25			6			19			13			52
Automobile		42			42			38			30			30			—			—			12			40
Student		40			41			39			35			30			(1	)		(2	)		10			33
Credit card		16			16			15			14			16			—			—			—			—
Other retail		2			5			4			4			6			(3	)		(60	)		(4	)		(67	)

Total retail		709			912			904			925			978			(203	)		(22	)		(269	)		(28	)

Nonperforming loans and leases^1, 6		1,079			1,060			1,034			1,050			1,136			19			2			(57	)		(5	)

Accruing loans past due 90 days or more not included above	$	51		$	—		$	—		$	—		$	—
Accruing loans past due 90 days or more included above	$	—		$	9		$	15		$	8		$	9
Commercial		1			1			1			1			1			—			—			—			—
Retail		47			45			38			37			37			2			4			10			27

Other real estate owned		48			46			39			38			38			2			4			10			26

Nonperforming assets	$	1,127		$	1,106		$	1,073		$	1,088		$	1,174		$	21			2	%	($	47	)		(4	%)

NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	371		$	149		$	131		$	126		$	159		$	222			149	%	$	212			133	%
Retail		756			957			942			962			1,015			(201	)		(21	)		(259	)		(26	)

Nonperforming assets	$	1,127		$	1,106		$	1,073		$	1,088		$	1,174		$	21			2	%	($	47	)		(4	%)

ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.21	%		1.23	%		1.23	%		1.24	%		1.27	%		(2	) bps					(6	) bps
Allowance for loan and lease losses to nonperforming loans and leases¹		113.43			114.64			116.12			114.37			105.75			(121	) bps					768	bps
Nonperforming loans and leases to loans and leases¹		1.07			1.07			1.06			1.09			1.20			—	bps					(13	) bps
Nonperforming assets to total assets¹		0.80			0.80			0.79			0.79			0.86			—	bps					(6	) bps

¹	Nonperforming loans and leases included loans and leases on nonaccrual as of March 31, 2016. Nonperforming loans and leases for all prior periods included loans and leases on nonaccrual and loans and leases accruing and 90 days or more past due.

²	$97 million of previously nonperforming troubled debt restructured loans were transferred from loans and leases to other loans held for sale on March 31, 2016, including $66 million of residential mortgages and $31 million of home equity loans.

Nonperforming balances at March 31, 2016 excluded $40 million of first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration and $37 million of guaranteed residential mortgage loans sold to GNMA for which the Company has the right but not the obligation to repurchase.

⁴	Restated September 30, 2015, June 30, 2015, and March 31, 2015 to conform to the current presentation.

⁵	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.

⁶	No longer includes $97 million of troubled debt restructured loans that were transferred to other loans held for sale on March 31, 2016.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS															1Q16 Change
	1Q16			4Q15			3Q15			2Q15		1Q15			4Q15						1Q15
															$			%			$			%
GROSS CHARGE-OFFS:
Commercial	$	13		$	3		$	10		$	12	$	5		$	10			333	%	$	8			160	%
Commercial real estate		—			1			1			3		1			(1	)		(100	)		(1	)		(100	)
Leases		—			—			—			—		—			—			—			—			—

Total commercial		13			4			11			15		6			9			225			7			117
Residential mortgages		6			5			5			6		6			1			20			—			—
Home equity loans		3			11			8			6		9			(8	)		(73	)		(6	)		(67	)
Home equity lines of credit		13			9			11			17		22			4			44			(9	)		(41	)
Home equity loans serviced by others¹		9			9			8			7		8			—			—			1			13
Home equity lines of credit serviced by others¹		3			4			3			3		4			(1	)		(25	)		(1	)		(25	)
Automobile		39			39			31			24		23			—			—			16			70
Student		11			14			12			15		10			(3	)		(21	)		1			10
Credit card		14			14			14			16		15			—			—			(1	)		(7	)
Other retail		15			15			17			12		12			—			—			3			25

Total retail		113			120			109			106		109			(7	)		(6	)		4			4

Total gross charge-offs	$	126		$	124		$	120		$	121	$	115		$	2			2	%	$	11			10	%

GROSS RECOVERIES:
Commercial	$	3		$	4		$	3		$	5	$	6		($	1	)		(25	%)	($	3	)		(50	%)
Commercial real estate		1			3			3			3		22			(2	)		(67	)		(21	)		(95	)
Leases		—			—			—			—		—			—			—			—			—

Total commercial		4			7			6			8		28			(3	)		(43	)		(24	)		(86	)
Residential mortgages		3			4			3			2		3			(1	)		(25	)		—			—
Home equity loans		2			4			3			2		2			(2	)		(50	)		—			—
Home equity lines of credit		3			4			3			6		5			(1	)		(25	)		(2	)		(40	)
Home equity loans serviced by others¹		4			4			5			5		3			—			—			1			33
Home equity lines of credit serviced by others¹		1			2			2			2		2			(1	)		(50	)		(1	)		(50	)
Automobile		17			15			14			11		9			2			13			8			89
Student		3			3			3			3		3			—			—			—			—
Credit card		2			2			2			2		2			—			—			—			—
Other retail		4			2			4			2		4			2			100			—			—

Total retail		39			40			39			35		33			(1	)		(3	)		6			18

Total gross recoveries	$	43		$	47		$	45		$	43	$	61		($	4	)		(9	%)	($	18	)		(30	%)

NET CHARGE-OFFS (RECOVERIES):
Commercial	$	10		($	1	)	$	7		$	7	($	1	)	$	11			1,100	%	$	11			1,100	%
Commercial real estate		(1	)		(2	)		(2	)		—		(21	)		1			50			20			95
Leases		—			—			—			—		—			—			—			—			—

Total commercial		9			(3	)		5			7		(22	)		12			400			31			141
Residential mortgages		3			1			2			4		3			2			200			—			—
Home equity loans		1			7			5			4		7			(6	)		(86	)		(6	)		(86	)
Home equity lines of credit		10			5			8			11		17			5			100			(7	)		(41	)
Home equity loans serviced by others¹		5			5			3			2		5			—			—			—			—
Home equity lines of credit serviced by others¹		2			2			1			1		2			—			—			—			—
Automobile		22			24			17			13		14			(2	)		(8	)		8			57
Student		8			11			9			12		7			(3	)		(27	)		1			14
Credit card		12			12			12			14		13			—			—			(1	)		(8	)
Other retail		11			13			13			10		8			(2	)		(15	)		3			38

Total retail		74			80			70			71		76			(6	)		(8	)		(2	)		(3	)

Total net charge-offs (recoveries)	$	83		$	77		$	75		$	78	$	54		$	6			8	%	$	29			54	%

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
																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES:
Commercial		0.12	%		(0.01	)%		0.08	%		0.10	%		(0.02	)%		13			bps			14			bps
Commercial real estate		(0.01	)		(0.11	)		(0.11	)		(0.03	)		(1.07	)		10			bps			106			bps
Leases		—			—			—			—			—			—			bps			—			bps
Total commercial		0.08			(0.03	)		0.04			0.07			(0.20	)		11			bps			28			bps
Residential mortgages		0.09			0.05			0.05			0.14			0.11			4			bps			(2	)		bps
Home equity loans		0.06			1.07			0.60			0.56			0.81			(101	)		bps			(75	)		bps
Home equity lines of credit		0.26			0.12			0.21			0.29			0.46			14			bps			(20	)		bps
Home equity loans serviced by others¹		2.03			1.81			1.12			0.70			1.49			22			bps			54			bps
Home equity lines of credit serviced by others¹		2.09			1.99			1.23			0.89			1.56			10			bps			53			bps
Automobile		0.65			0.71			0.50			0.38			0.42			(6	)		bps			23			bps
Student		0.64			1.07			1.07			1.56			1.13			(43	)		bps			(49	)		bps
Credit card		3.07			2.98			2.96			3.36			3.26			9			bps			(19	)		bps
Other retail		4.18			4.38			5.56			4.42			3.30			(32	)		bps			76			bps
Total retail		0.55			0.60			0.54			0.56			0.61			(5	)		bps			(6	)		bps
Total loans and leases		0.33	%		0.31	%		0.31	%		0.33	%		0.23	%		2			bps			10			bps
Memo: Average loans:
Commercial	$	34,018		$	33,080		$	32,832		$	32,855		$	31,911		$	938			3	%	$	2,107			7	%
Commercial real estate		9,108			8,855			8,406			7,947			7,700			253			3			1,408			18
Leases		3,917			3,884			3,936			3,894			3,895			33			1			22			1

Total commercial		47,043			45,819			45,174			44,696			43,506			1,224			3			3,537			8
Residential mortgages		13,465			13,030			12,470			11,980			11,855			435			3			1,610			14
Home equity loans		2,471			2,751			2,928			3,138			3,332			(280	)		(10	)		(861	)		(26	)
Home equity lines of credit		14,632			14,659			14,813			15,084			15,310			(27	)		—			(678	)		(4	)
Home equity loans serviced by others¹		958			1,017			1,086			1,134			1,193			(59	)		(6	)		(235	)		(20	)
Home equity lines of credit serviced by others¹		340			375			425			469			522			(35	)		(9	)		(182	)		(35	)
Automobile		13,792			13,824			13,810			13,484			12,933			(32	)		—			859			7
Student		4,852			4,052			3,530			3,029			2,623			800			20			2,229			85
Credit card		1,601			1,625			1,616			1,606			1,637			(24	)		(1	)		(36	)		(2	)
Other retail		1,108			1,047			939			986			1,041			61			6			67			6

Total retail		53,219			52,380			51,617			50,910			50,446			839			2			2,773			5

Total loans and leases	$	100,262		$	98,199		$	96,791		$	95,606		$	93,952		$	2,063			2	%	$	6,310			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.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS
														1Q16 Change
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES	1Q16		4Q15			3Q15		2Q15			1Q15			4Q15						1Q15
														$			%			$			%
Allowance for loan and lease losses - beginning	$	1,216	$	1,201		$	1,201	$	1,202		$	1,195		$	15			1	%	$	21			2	%
Charge-offs:
Commercial		13		4			11		15			6			9			225			7			117
Retail		113		120			109		106			109			(7	)		(6	)		4			4

Total charge-offs		126		124			120		121			115			2			2			11			10
Recoveries:
Commercial		4		7			6		8			28			(3	)		(43	)		(24	)		(86	)
Retail		39		40			39		35			33			(1	)		(3	)		6			18

Total recoveries		43		47			45		43			61			(4	)		(9	)		(18	)		(30	)

Net charge-offs		83		77			75		78			54			6			8			29			54
Provision for loan and lease losses:
Commercial		46		18			15		(6	)		12			28			156			34			283
Retail		45		74			58		83			51			(29	)		(39	)		(6	)		(12	)

Total provision for loan and lease losses		91		92			73		77			63			(1	)		(1	)		28			44
Sale/Other		—		—			2		—			(2	)		—			—			2			100

Allowance for loan and lease losses - ending	$	1,224	$	1,216		$	1,201	$	1,201		$	1,202		$	8			1	%	$	22			2	%

Reserve for unfunded lending commitments - beginning	$	58	$	59		$	56	$	56		$	61		($	1	)		(2	%)	($	3	)		(5	%)
Provision for unfunded lending commitments		—		(1	)		3		—			(5	)		1			100			5			100

Reserve for unfunded lending commitments - ending	$	58	$	58		$	59	$	56		$	56		$	—			—	%	$	2			4	%

Total allowance for credit losses - ending	$	1,282	$	1,274		$	1,260	$	1,257		$	1,258		$	8			1	%	$	24			2	%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	AS OF										MARCH 31, 2016 CHANGE
	Mar 31, 2016		Dec 31, 2015		Sept 30, 2015		June 30, 2015		Mar 31, 2015		Dec 31, 2015						Mar 31, 2015
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	42	$	36	$	23	$	21	$	35	$	6			17	%	$	7			20	%
Formula-based evaluation		649		618		611		600		599		31			5			50			8

Total commercial		691		654		634		621		634		37			6			57			9
															—						—
Individually evaluated		82		101		104		107		107		(19	)		(19	)		(25	)		(23	)
Formula-based evaluation		509		519		522		529		517		(10	)		(2	)		(8	)		(2	)

Total retail		591		620		626		636		624		(29	)		(5	)		(33	)		(5	)
															—						—

Total allowance for credit losses	$	1,282	$	1,274	$	1,260	$	1,257	$	1,258	$	8			1	%	$	24			2	%

CAPITAL AND RATIOS

(dollars in millions, except ratios)


	AS OF
																MARCH 31, 2016 CHANGE
	Mar 31, 2016			Dec 31, 2015			Sept 30, 2015			June 30, 2015			Mar 31, 2015			Dec 31, 2015					Mar 31, 2015
																$		%			$			%
CAPITAL RATIOS AND COMPONENTS¹ (preliminary)
CET1 capital	$	13,570		$	13,389		$	13,200		$	13,270		$	13,360		$	181		1	%	$	210			2	%
Tier 1 capital		13,817			13,636			13,447			13,517			13,360			181		1			457			3
Total capital		17,587			17,505			17,307			17,123			16,969			82		—			618			4
Risk-weighted assets		116,591			114,084			112,277			112,131			109,786			2,507		2			6,805			6
Adjusted average assets²		132,951			130,455			129,334			129,505			127,165			2,496		2			5,786			5
CET1 capital ratio		11.6	%		11.7	%		11.8	%		11.8	%		12.2	%
Tier 1 capital ratio		11.9			12.0			12.0			12.1			12.2
Total capital ratio		15.1			15.3			15.4			15.3			15.5
Tier 1 leverage ratio		10.4			10.5			10.4			10.4			10.5
Pro forma Basel III fully phased-in common equity tier 1 capital ratio⁴		11.6			11.7			11.7			11.8			12.1
TANGIBLE COMMON EQUITY (period-end):
Stockholders’ common equity	$	19,718		$	19,399		$	19,353		$	19,339		$	19,564		$	319		2	%	$	154			1	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—		—			—			—
Less: Other intangible assets		3			3			3			4			5			—		—			(2	)		(40	)
Add: Deferred tax liabilities³		494			480			465			450			434			14		3			60			14

Total tangible common equity⁴	$	13,333		$	13,000		$	12,939		$	12,909		$	13,117		$	333		3	%	$	216			2	%

TANGIBLE COMMON EQUITY (average):
Stockholders’ common equity	$	19,567		$	19,359		$	19,261		$	19,391		$	19,407		$	208		1	%	$	160			1	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—		—			—			—
Less: Other intangible assets		3			3			4			5			5			—		—			(2	)		(40	)
Add: Deferred tax liabilities³		481			468			453			437			422			13		3			59			14

Total tangible common equity⁴	$	13,169		$	12,948		$	12,834		$	12,947		$	12,948		$	221		2	%	$	221			2	%

INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—		—	%	$	—			—	%
Other intangible assets		3			3			3			4			5			—		—			(2	)		(40	)

Total intangible assets	$	6,879		$	6,879		$	6,879		$	6,880		$	6,881		$	—		—	%	($	2	)		—	%

¹	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 are prepared using the Basel III standardized transitional approach.

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.

³	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-30.

PER-SHARE RELATED INFORMATION

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


	QUARTERLY TRENDS
																1Q16 Change
	1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																$			%			$			%
EARNINGS PER SHARE DATA
Basic earnings per share:
Net income	$	223		$	221		$	220		$	190		$	209		$	2			1	%	$	14			7	%
Less: Preferred stock dividends		7			—			7			—			—			7			100			7			100

Net income available to common stockholders	$	216		$	221		$	213		$	190		$	209		($	5	)		(2	%)	$	7			3	%

Net income available to common stockholders, excluding restructuring charges and special items¹	$	216		$	221		$	213		$	215		$	215		($	5	)		(2	%)	$	1			—	%

Total weighted-average basic shares outstanding		528,070,648			527,648,630			530,985,255			537,729,248			546,291,363			422,018			—			(18,220,715	)		(3	)
Net income per share - basic	$	0.41		$	0.42		$	0.40		$	0.35		$	0.38		($	0.01	)		(2	%)	$	0.03			8	%
Net income per share, excluding restructuring charges and special items - basic¹	$	0.41		$	0.42		$	0.40		$	0.40		$	0.39		($	0.01	)		(2	%)	$	0.02			5	%
Diluted earnings per share:
Net income applicable to common stockholders	$	216		$	221		$	213		$	190		$	209		($	5	)		(2	)	$	7			3
Add: Restructuring charges and special items, net of income tax expense (benefit)		—			—			—			25			6			—			—			(6	)		100

Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	216		$	221		$	213		$	215		$	215		($	5	)		(2	%)	$	1			—	%

Total weighted-average basic shares outstanding		528,070,648			527,648,630			530,985,255			537,729,248			546,291,363			422,018			—			(18,220,715	)		(3	)
Add: Weighted-average dilutive shares		2,375,540			2,627,043			2,412,903			2,180,118			3,507,354			(251,503	)		(10	)		(1,131,814	)		(32	)

Total weighted-average diluted shares outstanding		530,446,188			530,275,673			533,398,158			539,909,366			549,798,717			170,515			—			(19,352,529	)		(4	)
Net income per share - diluted	$	0.41		$	0.42		$	0.40		$	0.35		$	0.38		($	0.01	)		(2	%)	$	0.03			8	%
Net income per share, excluding restructuring charges and special items - diluted¹	$	0.41		$	0.42		$	0.40		$	0.40		$	0.39		($	0.01	)		(2	%)	$	0.02			5	%
COMMON SHARES OUTSTANDING
Common shares - at end of period		528,933,727			527,774,428			527,636,510			537,149,717			547,490,812			1,159,299			—	%		(18,557,085	)		(3	)%
Cash dividends declared and paid per share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10		$	—			—		$	—			—
Book value per share	$	37.28		$	36.76		$	36.68		$	36.00		$	35.73		$	0.52			1		$	1.55			4
Tangible book value per share¹	$	25.21		$	24.63		$	24.52		$	24.03		$	23.96		$	0.58			2		$	1.25			5
Dividend payout ratio		24	%		24	%		25	%		28	%		26	%		—			bps			(200	)		bps
SHARE PRICE
High	$	25.99		$	27.17		$	28.18		$	28.71		$	25.84		($	1.18	)		(4	%)	$	0.15			1	%
Low		18.04			22.48			21.14			24.03			22.67			(4.44	)		(20	)		(4.63	)		(20	)
Close		20.95			26.19			23.86			27.31			24.13			(5.24	)		(20	)		(3.18	)		(13	)
Market Capitalization		11,081			13,822			12,589			14,670			13,211			(2,741	)		(20	)		(2,130	)		(16	)

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 28-33.

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 “noninterest income”, “total revenue”, “noninterest income”, “noninterest expense”, “pre-provision profit”, “income before income tax expense”, “income tax expense”, “net income”, “net income available to common stockholders”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “other operating expense”, “net income per average common share”, “return on 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”, “efficiency ratio” and “pro forma Basel III fully phased-in common equity tier 1 capital” 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
														1Q16 Change
		1Q16		4Q15		3Q15		2Q15			1Q15			4Q15						1Q15
														$			%			$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)		$	330	$	362	$	353	$	360		$	347		($	32	)		(9	%)	($	17	)		(5	%)
Less: Special items			—		—		—		—			—			—			—			—			—

Noninterest income, excluding special items (non-GAAP)		$	330	$	362	$	353	$	360		$	347		($	32	)		(9	%)	($	17	)		(5	%)

Total revenue, excluding special items:
Total revenue (GAAP)	A	$	1,234	$	1,232	$	1,209	$	1,200		$	1,183		$	2			—	%	$	51			4	%
Less: Special items			—		—		—		—			—			—			—			—			—

Total revenue, excluding special items (non-GAAP)	B	$	1,234	$	1,232	$	1,209	$	1,200		$	1,183		$	2			—	%	$	51			4	%

Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	C	$	811	$	810	$	798	$	841		$	810		$	1			—	%	$	1			—	%
Less: Restructuring charges and special items			—		—		—		40			10			—			—			(10	)		100

Noninterest expense, excluding restructuring charges and special items (non-GAAP)	D	$	811	$	810	$	798	$	801		$	800		$	1			—	%	$	11			1	%

Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)		$	1,234	$	1,232	$	1,209	$	1,200		$	1,183		$	2			—	%	$	51			4	%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)			811		810		798		801			800			1			—			11			1

Pre-provision profit, excluding restructuring charges and special items (non-GAAP)		$	423	$	422	$	411	$	399		$	383		$	1			—	%	$	40			10	%

Income before income tax expense, excluding restructuring charges and special items:
Income before income tax expense (GAAP)		$	332	$	331	$	335	$	282		$	315		$	1			—	%	$	17			5	%
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			—		—		—		(40	)		(10	)		—			—			10			100

Income before income tax expense, excluding restructuring charges and special items (non-GAAP)		$	332	$	331	$	335	$	322		$	325		$	1			—	%	$	7			2	%

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

(dollars in millions, except per-share data)


		QUARTERLY TRENDS
																	1Q16 Change
		1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																	$			%			$			%
Income tax expense, excluding restructuring charges and special items:
Income tax expense (GAAP)		$	109		$	110		$	115		$	92		$	106		($	1	)		(1	%)	$	3			3	%
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			—			—			—			(15	)		(4	)		—			—			4			100

Income tax expense, excluding restructuring charges and special items (non-GAAP)		$	109		$	110		$	115		$	107		$	110		($	1	)		(1	%)	($	1	)		(1	%)

Net income, excluding restructuring charges and special items:
Net income (GAAP)	E	$	223		$	221		$	220		$	190		$	209		$	2			1	%	$	14			7	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			—			—			—			25			6			—			—			(6	)		(100	)

Net income, excluding restructuring charges and special items (non-GAAP)	F	$	223		$	221		$	220		$	215		$	215		$	2			1	%	$	8			4	%

Net income available to common stockholders (GAAP), excluding restructuring charges and special items:
Net income available to common stockholders (GAAP)	G	$	216		$	221		$	213		$	190		$	209		($	5	)		(2	%)	$	7			3	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			—			—			—			25			6			—			—			(6	)		(100	)

Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	H	$	216		$	221		$	213		$	215		$	215		($	5	)		(2	%)	$	1			—	%

Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,567		$	19,359		$	19,261		$	19,391		$	19,407		$	208			1	%	$	160			1	%
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	H/I		4.45	%		4.51	%		4.40	%		4.45	%		4.49	%		(6	) bps					(4	) bps

Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,567		$	19,359		$	19,261		$	19,391		$	19,407		$	208			1	%	$	160			1	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—
Less: Average other intangibles (GAAP)			3			3			4			5			5			—			—			(2	)		(40	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			481			468			453			437			422			13			3			59			14

Average tangible common equity (non-GAAP)	J	$	13,169		$	12,948		$	12,834		$	12,947		$	12,948		$	221			2	%	$	221			2	%

Return on average tangible common equity (non-GAAP)	G/J		6.61	%		6.75	%		6.60	%		5.90	%		6.53	%		(14	) bps					8	bps
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	H/J		6.61	%		6.75	%		6.60	%		6.67	%		6.73	%		(14	) bps					(12	) bps
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	138,780		$	136,298		$	135,103		$	135,521		$	133,325		$	2,482			2	%	$	5,455			4	%
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	F/K		0.65	%		0.64	%		0.65	%		0.64	%		0.65	%		1	bps					—	bps

Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	138,780		$	136,298		$	135,103		$	135,521		$	133,325		$	2,482			2	%	$	5,455			4	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—
Less: Average other intangibles (GAAP)			3			3			4			5			5			—			—			(2	)		(40	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			481			468			453			437			422			13			3			59			14

Average tangible assets (non-GAAP)	L	$	132,382		$	129,887		$	128,676		$	129,077		$	126,866		$	2,495			2	%	$	5,516			4	%

Return on average total tangible assets (non-GAAP)	E/L		0.68	%		0.67	%		0.68	%		0.59	%		0.67	%		1	bps					1	bps
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	F/L		0.68	%		0.67	%		0.68	%		0.67	%		0.69	%		1	bps					(1	) bps

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

(dollars in millions, except per-share data)


		QUARTERLY TRENDS
																	1Q16 Change
		1Q16			4Q15			3Q15			2Q15			1Q15			4Q15						1Q15
																	$			%			$			%
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Efficiency ratio (non-GAAP)	C/A		65.66	%		65.76	%		66.02	%		70.02	%		68.49	%		(10	) bps					(283	) bps
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	D/B		65.66	%		65.76	%		66.02	%		66.70	%		67.65	%		(10	) bps					(199	) bps
Tangible book value per common share:
Common shares - at end of period (GAAP)	M		528,933,727			527,774,428			527,636,510			537,149,717			547,490,812			1,159,299			—	%		(18,557,085	)		(3	%)
Common stockholders’ equity (GAAP)		$	19,718		$	19,399		$	19,353		$	19,339		$	19,564		$	319			2		$	154			1
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—
Less: Other intangible assets (GAAP)			3			3			3			4			5			—			—			(2	)		(40	)
Add: Deferred tax liabilities related to goodwill (GAAP)			494			480			465			450			434			14			3			60			14

Tangible common equity (non-GAAP)	N	$	13,333		$	13,000		$	12,939		$	12,909		$	13,117		$	333			3	%	$	216			2	%

Tangible book value per common share (non-GAAP)	N/M	$	25.21		$	24.63		$	24.52		$	24.03		$	23.96		$	0.58			2	%	$	1.25			5	%
Net income per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	O		528,070,648			527,648,630			530,985,255			537,729,248			546,291,363			422,018			—	%		(18,220,715	)		(3	%)
Average common shares outstanding - diluted (GAAP)	P		530,446,188			530,275,673			533,398,158			539,909,366			549,798,717			170,515			—			(19,352,529	)		(4	)
Net income available to common stockholders (GAAP)	G	$	216		$	221		$	213		$	190		$	209		($	5	)		(2	)	$	7			3
Net income per average common share - basic (GAAP)	G/O		0.41			0.42			0.40			0.35			0.38			(0.01	)		(2	)		0.03			8
Net income per average common share - diluted (GAAP)	G/P		0.41			0.42			0.40			0.35			0.38			(0.01	)		(2	)		0.03			8
Net income available to common stockholders, excluding restructuring charges and special items (non-GAAP)	H		216			221			213			215			215			(5	)		(2	)		1			—
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	H/O		0.41			0.42			0.40			0.40			0.39			(0.01	)		(2	)		0.02			5
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	H/P		0.41			0.42			0.40			0.40			0.39			(0.01	)		(2	)		0.02			5
Pro forma Basel III fully phased-in common equity tier 1 capital ratio¹:
Common equity tier 1 (regulatory)		$	13,570		$	13,389		$	13,200		$	13,270		$	13,360
Less: Change in DTA and other threshold deductions (GAAP)			1			2			2			3			3

Pro forma Basel III fully phased-in common equity tier 1 (non-GAAP)	Q	$	13,569		$	13,387		$	13,198		$	13,267		$	13,357

Risk-weighted assets (regulatory general risk weight approach)		$	116,591		$	114,084		$	112,277		$	112,131		$	109,786
Add: Net change in credit and other risk-weighted assets (regulatory)			232			244			243			247			242

Basel III standardized approach risk-weighted assets (non-GAAP)	R	$	116,823		$	114,328		$	112,520		$	112,378		$	110,028

Pro forma Basel III fully phased-in common equity tier 1 capital ratio (non-GAAP)¹	Q/R		11.6	%		11.7	%		11.7	%		11.8	%		12.1	%

¹	Basel III ratios assume certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2019, 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
													1Q16 Change
	1Q16		4Q15			3Q15		2Q15		1Q15			4Q15						1Q15
													$			%			$			%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	$	425	$	402		$	404	$	411	$	419		$	23			6	%	$	6			1	%
Less: Restructuring charges and special items		—		(2	)		—		6		(1	)		2			100			1			100

Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	$	425	$	404		$	404	$	405	$	420		$	21			5	%	$	5			1	%

Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	$	91	$	104		$	89	$	99	$	79		($	13	)		(13	%)	$	12			15	%
Less: Restructuring charges and special items		—		2			—		16		8			(2	)		(100	)		(16	)		(200	)

Outside services, excluding restructuring charges and special items (non-GAAP)	$	91	$	102		$	89	$	83	$	71		($	11	)		(11	%)	$	20			28	%

Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	$	76	$	74		$	75	$	90	$	80		$	2			3	%	($	4	)		(5	%)
Less: Restructuring charges and special items		—		—			—		15		2			—			—			(2	)		(100	)

Occupancy, excluding restructuring charges and special items (non-GAAP)	$	76	$	74		$	75	$	75	$	78		$	2			3	%	($	2	)		(3	%)

Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	$	65	$	67		$	62	$	65	$	63		($	2	)		(3	%)	$	2			3	%
Less: Restructuring charges and special items		—		—			—		—		1			—			—			(1	)		(100	)

Equipment expense, excluding restructuring charges and special items (non-GAAP)	$	65	$	67		$	62	$	65	$	62		($	2	)		(3	%)	$	3			5	%

Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	$	115	$	125		$	133	$	139	$	133		($	10	)		(8	%)	($	18	)		(14	%)
Less: Restructuring charges and special items		—		—			—		3		—			—			—			—			—

Other operating expense, excluding restructuring charges and special items (non-GAAP)	$	115	$	125		$	133	$	136	$	133		($	10	)		(8	%)	($	18	)		(14	%)

Restructuring charges and special expense items include:
Restructuring charges	$	—	$	—		$	—	$	25	$	1		$	—			—	%	($	1	)		(100	%)
Special items		—		—			—		15		9			—			—			(9	)		(100	)

Restructuring charges and special expense items	$	—	$	—		$	—	$	40	$	10		$	—			—	%	($	10	)		(100	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(dollars in millions)


		THREE MONTHS ENDED MAR 31,											THREE MONTHS ENDED DEC 31,											THREE MONTHS ENDED SEPT 30,
		2016											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	$	71		$	133		$	19	$	223		$	67		$	152		$	2	$	221		$	68		$	145		$	7	$	220
Less: Preferred stock dividends			—			—			7		7			—			—			—		—			—			—			7		7

Net income available to common stockholders	B	$	71		$	133		$	12	$	216		$	67		$	152		$	2	$	221		$	68		$	145		$	—	$	213

Return on average tangible common equity
Average common equity (GAAP)		$	5,089		$	4,790		$	9,688	$	19,567		$	4,831		$	4,787		$	9,741	$	19,359		$	4,791		$	4,722		$	9,748	$	19,261
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			3		3			—			—			3		3			—			—			4		4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			481		481			—			—			468		468			—			—			453		453

Average tangible common equity (non-GAAP)	C	$	5,089		$	4,790		$	3,290	$	13,169		$	4,831		$	4,787		$	3,330	$	12,948		$	4,791		$	4,722		$	3,321	$	12,834

Return on average tangible common equity (non-GAAP)	B/C		5.59	%		11.19	%		NM		6.61	%		5.50	%		12.57	%		NM		6.75	%		5.67	%		12.24	%		NM		6.60	%
Return on average total tangible assets
Average total assets (GAAP)		$	55,116		$	45,304		$	38,360	$	138,780		$	54,065		$	43,835		$	38,398	$	136,298		$	53,206		$	43,113		$	38,784	$	135,103
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			3		3			—			—			3		3			—			—			4		4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			481		481			—			—			468		468			—			—			453		453

Average tangible assets (non-GAAP)	D	$	55,116		$	45,304		$	31,962	$	132,382		$	54,065		$	43,835		$	31,987	$	129,887		$	53,206		$	43,113		$	32,357	$	128,676

Return on average total tangible assets (non-GAAP)	A/D		0.52	%		1.18	%		NM		0.68	%		0.49	%		1.37	%		NM		0.67	%		0.51	%		1.34	%		NM		0.68	%
Efficiency ratio
Noninterest expense (GAAP)	E	$	616		$	187		$	8	$	811		$	624		$	180		$	6	$	810		$	623		$	175		$	—	$	798
Net interest income (GAAP)			581			300			23		904			565			301			4		870			556			299			1		856
Noninterest income (GAAP)			208			99			23		330			226			107			29		362			235			100			18		353

Total revenue	F	$	789		$	399		$	46	$	1,234		$	791		$	408		$	33	$	1,232		$	791		$	399		$	19	$	1,209

Efficiency ratio (non-GAAP)	E/F		78.08	%		46.74	%		NM		65.66	%		78.85	%		44.02	%		NM		65.76	%		78.72	%		43.75	%		NM		66.02	%

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

(dollars in millions)


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

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

Return on average tangible common equity
Average common equity (GAAP)		$	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
Average other intangibles (GAAP)			—			—			5			5			—			—			5		5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			437			437			—			—			422		422

Average tangible common equity (non-GAAP)	C	$	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/C		5.66	%		11.69	%		NM			5.90	%		5.30	%		13.15	%		NM		6.53	%
Return on average total tangible assets
Average total assets (GAAP)		$	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
Average other intangibles (GAAP)			—			—			5			5			—			—			5		5
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			437			437			—			—			422		422

Average tangible assets (non-GAAP)	D	$	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/D		0.51	%		1.27	%		NM			0.59	%		0.48	%		1.43	%		NM		0.67	%
Efficiency ratio
Noninterest expense (GAAP)		$	613		$	181		$	47		$	841		$	596		$	173		$	41	$	810
Net interest income (GAAP)			544			286			10			840			533			276			27		836
Noninterest income (GAAP)			230			108			22			360			219			100			28		347

Total revenue	F	$	774		$	394		$	32		$	1,200		$	752		$	376		$	55	$	1,183

Efficiency ratio (non-GAAP)	E/F		79.25	%		46.07	%		NM			70.02	%		79.25	%		46.01	%		NM		68.49	%

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends are forward-looking statements. Also, 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 RBS.

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or share repurchases will depend on our financial condition, earnings, cash needs, regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 26, 2016.

CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.3 - April 21, 2016

Attached files

CITIZENS FINANCIAL GROUP INC/RI Reports