Citizens Fiscal Group, Inc. Reiterates Crucial Aspects of Funds Plan just after Resubmission

PROVIDENCE, R.I.–(Organization WIRE)–Citizens Monetary Team, Inc. (NYSE: CFG or the “Company”) nowadays acquired the results of its 2020 Cash Plan resubmission and December 2020 Strain Take a look at from the Board of Governors of the Federal Reserve Process (the “Federal Reserve”). CFG’s outcomes exceed all capital specifications less than the Federal Reserve’s intense worry eventualities and the Enterprise reiterates essential aspects of its 2020 Funds System, which contains preserving quarterly typical dividends at the present level.

The resilience of Citizens’ pre-provision web earnings (“PPNR”) supplied alterations to its enterprise mix and improvement in its profitability above time is evidenced by its existing working efficiency in the genuine-daily life strain of 2020. The Company’s ratio of PPNR to average belongings in the very first 9 months of 2020 was 3.9%*, and fourth quarter 2020 is projected to continue to be powerful. This resilience compares favorably with peers and with the Federal Reserve’s modeled consequence of 2.% for CFG beneath the severely adverse state of affairs of the December 2020 Strain Exam.

The Federal Reserve’s PPNR product continues to use non-predictive knowledge from previously periods when Citizens experienced a unique company model and was less than international bank possession. As a outcome, the Organization continues to imagine that the Federal Reserve’s PPNR styles for the Corporation continue being inaccurate.

“We are pleased that the Federal Reserve’s up-to-date round of worry check success carries on to demonstrate Citizens’ powerful money posture and the diversity of our business enterprise model, even less than far more hard strain eventualities,” reported John F. Woods, Vice Chairman and Chief Economic Officer. “We have shown our resilience in 2020 via the actual-everyday living pressure of the pandemic, with strong income performance and cost self-discipline, the addition of sizeable credit rating reserves and a powerful money foundation that is back again at our targeted capital ratios. We remain focused on using our robust placement to assistance our clients and communities navigate these tough situations, though also guaranteeing powerful returns of funds to our shareholders.”

The Federal Reserve’s community disclosure of the outcomes of the December 2020 Strain Test for all participating lender holding corporations is out there on the Federal Reserve’s site.

* The ratio of PPNR to normal assets for the to start with 9 months of 2020 is introduced on a 9-quarter equivalent basis.

About Citizens Fiscal Team, Inc.

Citizens Financial Team, Inc. is a single of the nation’s oldest and most significant economic establishments, with $179.2 billion in assets as of September 30, 2020. Headquartered in Providence, Rhode Island, Citizens delivers a broad array of retail and commercial banking merchandise and expert services to people today, small businesses, middle-marketplace providers, big companies and establishments. Citizens can help its customers arrive at their likely by listening to them and by understanding their wants in purchase to present customized advice, strategies and options. In Buyer Banking, Citizens offers an integrated working experience that incorporates cell and on line banking, a 24/7 customer contact heart and the advantage of somewhere around 2,700 ATMs and close to 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest areas. Customer Banking goods and companies incorporate a comprehensive array of banking, lending, savings, prosperity administration and compact enterprise choices. In Commercial Banking, Citizens features a broad enhance of monetary products and solutions and remedies, like lending and leasing, deposit and treasury administration products and services, foreign trade, curiosity amount and commodity danger administration answers, as very well as loan syndication, company finance, merger and acquisition, and financial debt and equity money marketplaces capabilities. More info is accessible at www.citizensbank.com or pay a visit to us on Twitter, LinkedIn or Fb.

Ahead-Wanting Statements

This document includes ahead-wanting statements in the meaning of Non-public Securities Litigation Reform Act of 1995. Statements relating to its fourth quarter 2020 PPNR projections, likely upcoming share repurchases and upcoming dividends, as properly as the potential effects of the COVID-19 pandemic on our business, operations, economic overall performance and prospective customers, are forward-looking statements. Also, any assertion that does not describe historical or present-day info is a ahead-looking assertion. These statements generally include things like the terms “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or comparable expressions or upcoming conditional verbs this sort of as “may,” “will,” “should,” “would,” and “could.”

Forward-hunting statements are based on the present beliefs and expectations of management, and on details currently obtainable to administration. Our statements talk as of the date hereof, and we do not suppose any obligation to update these statements or to update the explanations why genuine benefits could differ from those people contained in such statements in mild of new information and facts or future gatherings. We warning you, therefore, in opposition to relying on any of these forward-on the lookout statements. They are neither statements of historic fact nor ensures or assurances of potential performance. Whilst there is no assurance that any record of hazards and uncertainties or danger factors is complete, important elements that could bring about genuine benefits to vary materially from those people in the ahead-searching statements consist of the subsequent, without limitation:

• Unfavorable economic and political circumstances that adversely impact the basic financial state, housing prices, the job industry, purchaser self confidence and shelling out behavior which may well influence, amongst other items, the level of nonperforming assets, demand-offs and provision price
• The price of development in the overall economy and employment degrees, as very well as common business and economic problems, and variations in the competitive setting
• Our ability to apply our small business approach, such as the cost financial savings and performance factors, and attain our economical efficiency aims
• The COVID-19 pandemic and connected lockdowns and their consequences on the financial and business environments in which we run
• Our capacity to fulfill heightened supervisory needs and expectations
• Liabilities and business enterprise constraints resulting from litigation and regulatory investigations
• Our capital and liquidity requirements (including below regulatory funds expectations, this sort of as the U.S. Basel III cash principles) and our capability to crank out funds internally or elevate cash on favorable terms
• The outcome of improvements in interest rates on our internet fascination cash flow, net curiosity margin and our home loan originations, house loan servicing legal rights and mortgages held for sale
• Changes in interest prices and market place liquidity, as nicely as the magnitude of these kinds of variations, which could minimize curiosity margins, effect funding resources and affect the means to originate and distribute money products and solutions in the main and secondary marketplaces
• The outcome of adjustments in the level of checking or price savings account deposits on our funding prices and net curiosity margin
• Money products and services reform and other current, pending or potential laws or regulation that could have a destructive outcome on our revenue and companies
• A failure in or breach of our operational or stability systems or infrastructure, or these of our third occasion distributors or other assistance vendors, like as a result of cyber-attacks and
• Management’s capacity to establish and take care of these and other risks.

In addition to the earlier mentioned aspects, we also warning that the genuine amounts and timing of any long run frequent inventory dividends or share repurchases will be topic to various factors, such as our cash situation, money general performance, cash impacts of strategic initiatives, marketplace circumstances, and regulatory and accounting criteria, as effectively as any other things that our Board of Directors deems applicable in generating these a determination. Consequently, there can be no assurance that we will repurchase shares or pay any dividends to holders of our frequent inventory, or as to the sum of any these types of repurchases or dividends. Further, statements about the effects of the COVID-19 pandemic and affiliated lockdowns on our company, operations, money efficiency and prospective clients may possibly constitute ahead-hunting statements and are subject matter to the threat that the real impacts might differ, probably materially, from what is mirrored in people forward-on the lookout statements owing to components and potential developments that are uncertain, unpredictable and in quite a few situations over and above our management, which includes the scope and length of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impression of the pandemic on our prospects, 3rd parties and us.

Far more information about components that could bring about real benefits to vary materially from these described in the ahead-on the lookout statements can be identified beneath “Risk Factors” in our Yearly Report on Variety 10-K for the yr finished December 31, 2019 and our Quarterly Report on Form 10-Q for the interval ending June 30, 2020.

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