Citizens Financial : 4Q22 EARNINGS PRESENTATION

4Q22 and 2022 Financial Results

January 17, 2023

Forward-looking statements and use of non-GAAP financial measures

This document contains forward-looking statements within the meaning of 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," "guidance" 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, business and political conditions, including as a result of supply chain disruptions, inflationary pressures and labor shortages, 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 nonaccrual assets, charge-offs and provision expense;

• • The rate of growth in the economy and employment levels, as well as general business and economic conditions, and changes in the competitive environment;

• • Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including through the integration of Investors and the HSBC branches;

• • The effects of geopolitical instability, including as a result of Russia's invasion of Ukraine and the imposition of sanctions on Russia and other actions in response, on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks;

• • Our ability to meet heightened supervisory requirements and expectations;

• • Liabilities and business restrictions resulting from litigation and regulatory investigations;

• • Our capital and liquidity requirements under regulatory capital standards and our ability to generate capital internally or raise capital on favorable terms;

• • The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

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

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

• • Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses;

• • Environmental, social and governance risks, such as physical or transitional risks associated with climate change, that could adversely affect our reputation, operations, business, and customers.

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

• • Management's ability to identify and manage these and other risks.

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, risk-weighted assets, capital impacts of strategic initiatives, market conditions, receipt of required regulatory approvals and other regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section in Part II, Item 1A of our Quarterly Report on Form 10-Q for the period ended March 31, 2022 and Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed with the Securities and Exchange Commission.

Non-GAAP Financial Measures:

This document contains non-GAAP financial measures denoted as Underlying results, excluding HSBC and ISBC, excluding acquisitions and excluding PPP. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company's on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. The Appendix presents reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

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

2

4Q22 and Full Year 2022 GAAP financial summary

Full YearQ/Q

$s in millions

4Q22

3Q22

4Q21

$/bps

%

Net interest income Noninterest income Total revenue Noninterest Expense Pre-provision profit

Provision (benefit) for credit losses Income before income tax expense Income tax expense

$

• 1,695 $

• 1,665 $

• 1,126 $

30

505

512

594

(7)

2,200

2,177

1,720

23

1,240

1,241

1,061

(1)

960

936

659

24

132

123

(25)

9

828

813

684

15

175

177

154

(2)

Net income Preferred dividends

$

• 653 $ 32

• 636 $ 25

• 530 $ 32

17 7

Net income available to common stockholders $s in billions

$

621

$

611

$

498

$

10

Average interest-earning assets Average deposits

$ $

204.5 179.0

$ $

203.6 177.6

$ $

168.0 153.0

• $ 0.9

• $ 1.4

Y/Y

$/bps

%

2022 vs. 2021

2022

2021

$/bps

%

2 % $

569

51 % $

• 6,012 $

• 4,512 $ 1,500

(1)

33 %

(89)

(15)

2,009

2,135

(126) (6)

1 -

480

28

8,021

6,647

1,374 21

179

17

4,892

4,081

811 20

3

301

46 NM

3,129

2,566

563 22

7

157

474

(411)

885

NM

2

144

21

2,655

2,977

(322) (11)

(1)

21

14

582

658

(76) (12)

3 % $ 28

- % $ 36.5 1 % $ 26.0

2 % $

123 -

123

23 % $ -

25 % $

22 % $ 17 % $

2,073 113

1,960

194.1 172.1

$

$

• $ 166.5

• $ 150.5

2,319 113

2,206

$	(246)	(11) %
-	-
$	(246)	(11) %
$	27.6	17 %
$	21.6	14 %

Performance metrics Net interest margin(1)

Net interest margin, FTE(1) Loans-to-deposit ratio (period-end) ROACE

ROTCE ROA ROTA Efficiency ratio

Noninterest income as a % of total revenue FTEs(2)

Operating leverage

• 3.29 %

• 3.24 %

2.66 %

3.30

5 bps

3.25

2.66

86.7

5

87.4

83.0

11.6

(75)

10.9

9.3

18.5

65

17.0

13.6

1.2

150

1.1

1.1

1.2

3

1.2

1.2

56.4

3

57.0

61.7

23 %

(66)

24 %

35 %

18,889

(62) bps

19,235

17,463

(346)

63 bps

3.10 %

2.71 %

39 bps

64

3.10

2.72 38

366

86.7

83.0 366

230

9.0

10.5 (147)

489

13.9

15.4 (153)

3

1.0

1.3 (29)

2

1.0

1.3 (30)

(532)

61.0

61.4 (41)

(2) % 1.2 %

(1,158) bps

1,426

8 % 11.1

8	%
%	0.8	%

18,889

25 %

32 % 17,463

(707) bps1,426

Per common share Diluted earnings Tangible book value

Average diluted shares outstanding (in millions)

$ $

1.25 27.88 495.5

$ $

1.23 26.62 497.5

$ $

1.17 34.61

• $ 0.02

• $ 1.26

• 426.9 (2.0)

2 % $ 0.08 4.7 % $ (6.73)

-

% 68.6

7 %	$	4.10	$	5.16	$	(1.06)	(21) %
(19) %	$	27.88	$	34.61	$	(6.73)	(19) %
16 %	477.8	427.4	50.4	12 %

4Q22 and Full Year 2022 Underlying financial summary(1)

Full YearQ/Q Y/Y

$s in millions

4Q22

Net interest income

Noninterest income

Total revenue

Noninterest expense

Pre-provision profit

Provision (benefit) for credit losses

$

• 1,695 $ 505 2,200 1,197 1,003

132

Net income available to common stockholders

$

653

Performance metrics

Diluted EPS

Efficiency ratio

Noninterest income as a % of total revenue

ROTCE

Tangible book value per share

Operating leverage

$

1.32 54.4

23 % 19.4 %

• $ 27.88

4Q22

Notable Items Impacts

Pre-taxEPS

($s in millions except per share data)

Integration related

TOP revenue and efficiency initiatives

• $ (35) $

  (0.06)

  (8)

  (0.01)

  Total:

• $ (43) $

(0.07)

$/bps

%

30

2%

$

(7)

(1)

$

23 2 21 9

9

1 - 2 7 1%

$

• $ 0.02

  2%

  (48) bps

  (62) bps 149 bps

• $ 1.26

5 1%

FY2022

Pre-taxEPS

• $ (413) $

  (0.66)

  (49)

  (0.08)

• $ (462) $

(0.74)

$/bps

%

569

51%

(89)

(15)

480 187 293

28 19 41

• 157 NM

116

$0.06

(429) bps

(1158) bps

479 bps

$(6.73)

2022

2022 vs. 2021

2021

$/bps

%

$

• 6,012 $ 2,040 8,052 4,630 3,422

• 4,512 $ 1,500 33%

  2,135 6,647 3,976 2,671

• (95) (4)

• 1,405 21

• 654 16

• 751 28

  305

  (411)

• 716 NM

22%

• $ 2,312

5%

$

• 4.84 $ 57.5

25 % 16.4 %

(19) $ 27.88

$

2,284

$

28 1%

5.34

$ (0.50) (9)%

• 59.8 (231) bps

  32 %

  (678) bps

• 16.0 %

43 bps

$ 34.61

9% 5%

Overview(1)

Strong full-year 2022 results

• - Underlying net income of $2.4 billion, with EPS of $4.84

• - Underlying PPNR of $3.4 billion, up 28%

• - Strong positive operating leverage of 5%; Underlying efficiency ratio improved 231 bps to 57.5%

• - Underlying ROTCE of 16.4% compares with 16.0% for 2021

4Q: Navigating well in a dynamic environment

• - Underlying EPS of $1.32 and ROTCE of 19.4%

• - Underlying PPNR of $1.0 billion, up 2% QoQ

  • ▪ NII up 2% QoQ given improved net interest margin, up 5 bps

  • ▪ Fees down 1% QoQ with lower mortgage fees and FX and derivative products, partly offset by improvement in capital markets fees

  • ▪ Expenses well controlled, stable QoQ

• - Positive Underlying operating leverage QoQ of 1%; Underlying efficiency ratio improves to 54.4%

• - Period-end and average loans broadly stable, up 1% ex-auto run off; loan yields up 58 bps QoQ

• - Period-end and average deposits up 1% QoQ; total deposit costs up 49 bps

• - Provision for credit losses of $132 million and reserve build of $44 million

Continued strong credit metrics

• - Prudent risk appetite across retail and commercial; NCOs of 22 bps up 3 bps QoQ; NPLs to loans of 0.60% vs. 0.55% at 3Q22

• - Allowance for credit losses coverage ratio of 1.43% up 2 bps QoQ; compares with proforma day-1 CECL reserve of ~1.30%

Strong capital, liquidity and funding

• - Strong CET1 ratio at upper end of target range at 10.0%(2)

• - Period-end LDR ratio of 87%

• - Asset sensitivity of 2.7% compares with 3.3% in 3Q22

• - TBV/share of $27.88, up 5% QoQ 5

See pages 37-38 for notes and important information on Non-GAAP Financial Measures, including "Underlying" results. "Underlying" results exclude the impact of notable items described on page 36.