Citizens Financial Group (CFG) investor relations material

Macroeconomic and industry outlook

• Economic environment seen as broadly resilient, with mixed signals but no major long-term concerns assuming geopolitical risks are resolved.

• Consumer confidence remains low, with inflation and unemployment range-bound; top 30% of consumers retain excess liquidity, while lower-income segments face more pressure.

• Corporate clients show positive sentiment and strong loan demand, with no signs of material pullback.

Strategic transformation and business model evolution

• Significant transformation since IPO, with investments in technology, customer experience, and smart acquisitions, leading to a peer-like ROTCE and strong momentum.

• Three-pronged strategy: transformed consumer bank, private wealth/private bank, and super-regional commercial bank.

• Consumer business is the foundation, now relationship-oriented with improved deposit betas and profitability.

• Private Bank launched in 2023, leveraging talent from failed West Coast banks, now contributing 7% of EPS and targeting high-net-worth clients.

• Commercial Bank focused on middle market, private credit, and capital markets, with further potential as market conditions improve.

Financial targets and growth drivers

• Targeting 16%-18% ROTCE by second half of 2027, up from just over 12% in Q4.

• NIM expected to expand to 3.30%-3.50% by Q4 2027, driven by time-based benefits, hedges, and business mix.

• Private Bank and capital markets expected to be ROTCE accretive, with Private Bank aiming for mid-teens contribution and 20%-25% ROE.

• Positive operating leverage and lower credit costs anticipated to support return goals.