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

Attached files

file	filename
8-K - FORM 8-K - CITIZENS FINANCIAL GROUP INC/RI	d857433d8k.htm
EX-99.1 - EXHIBIT 99.1 - CITIZENS FINANCIAL GROUP INC/RI	d857433dex991.htm
EX-99.2 - EXHIBIT 99.2 - CITIZENS FINANCIAL GROUP INC/RI	d857433dex992.htm

Exhibit 99.3

LOGO

Citizens Financial Group, Inc.

Financial Supplement

Fourth Quarter and Full Year 2014


Table of Contents	Page

Consolidated Financial Highlights		3

Consolidated Statements of Operations (unaudited)		5

Consolidated Balance Sheets (unaudited)		6

Loans and Deposits		7

Average Balance Sheets and Annualized Yields		8

Segment Financial Highlights		10

Credit-Related Information
Credit Exposure		21
Nonperforming Assets		22
Charge-offs, Recoveries and Related Ratios		23
Summary of Changes in the Allowances		25
Allowance Components		26

Capital and Ratios		27

Per-Share Related Information		28
Non-GAAP Financial Measures and Reconciliations		29
Forward-Looking Statements		36

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS																									FULL YEAR
														4Q14 Change																	2014 Change
	4Q14		3Q14			2Q14		1Q14			4Q13			3Q14						4Q13						2014		2013			2013
														$			%			$			%								$			%
SELECTED OPERATING DATA
Total revenue	$	1,179	$	1,161		$	1,473	$	1,166		$	1,158		$	18			2	%	$	21			2	%	$	4,979	$	4,690		$	289			6	%
Noninterest expense		824		810			948		810			818			14			2			6			1			3,392		7,679			(4,287	)		(56	)

Profit (loss) before provision for credit losses		355		351			525		356			340			4			1			15			4			1,587		(2,989	)		4,576			NM
Provision for credit losses		72		77			49		121			132			(5	)		(6	)		(60	)		(45	)		319		479			(160	)		(33	)
NET INCOME (LOSS)		197		189			313		166			152			8			4			45			30			865		(3,426	)		4,291			NM
Net income, excluding restructuring charges and special items¹		217		202			205		166			169			15			7			48			28			790		671			119			18
PER COMMON SHARE DATA
Basic earnings	$	0.36	$	0.34		$	0.56	$	0.30		$	0.27		$	0.02			6	%	$	0.09			33	%	$	1.55	($	6.12	)	$	7.67			125	%
Diluted earnings		0.36		0.34			0.56		0.30			0.27			0.02			6			0.09			33			1.55		(6.12	)		7.67			125
Basic earnings, excluding restructuring charges and special items¹		0.40		0.36			0.37		0.30			0.30			0.04			11			0.10			33			1.42		1.20			0.22			18
Diluted earnings, excluding restructuring charges and special items¹		0.39		0.36			0.37		0.30			0.30			0.03			8			0.09			30			1.42		1.20			0.22			18
Cash dividends declared and paid per share		0.10		0.68			0.61		0.04			0.67			(0.58	)		(85	)		(0.57	)		(85	)		1.43		2.12			(0.69	)		(33	)
Book value		35.30		34.61			35.00		34.72			34.28			0.69			2			1.02			3			35.30		34.28			1.02			3
Tangible book value		23.46		23.04			23.39		23.08			22.61			0.42			2			0.85			4			23.46		22.61			0.85			4
COMMON SHARES OUTSTANDING
Average: Basic		546,810,009		559,998,324			559,998,324		559,998,324			559,998,324			(13,188,315	)		(2	)%		(13,188,315	)		(2	%)		556,674,146		559,998,324			(3,324,178	)		(1	%)
Diluted		550,676,298		560,243,747			559,998,324		559,998,324			559,998,324			(9,567,449	)		(2	)		(9,322,026	)		(2	)		557,724,936		559,998,324			(2,273,388	)		—
Common shares at period-end		545,884,519		559,998,324			559,998,324		559,998,324			559,998,324			(14,113,805	)		(3	)		(14,113,805	)		(3	)		545,884,519		559,998,324			(14,113,805	)		(3	)
Closing share price	$	24.86	$	23.42		$	—	$	—		$	—		$	1.44			6		$	24.86			—		$	24.86	$	—		$	24.86			—
Market capitalization		13,571		13,115			—		—			—			456			3			13,571			—			13,571		—			13,571			—
SEGMENT NET INCOME (LOSS)
Consumer Banking	$	52	$	54		$	44	$	32		$	50		($	2	)		(4	)%	$	2			4	%	$	182	$	242		($	60	)		(25	)%
Commercial Banking		140		139			141		141			123			1			1			17			14			561		514			47			9
Other		5		(4	)		128		(7	)		(21	)		9			225			26			124			122		(4,182	)		4,304			NM

NET INCOME (LOSS)	$	197	$	189		$	313	$	166		$	152		$	8			4		$	45			30		$	865	($	3,426	)	$	4,291			NM

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)


	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
FINANCIAL RATIOS
Net interest margin		2.80	%		2.77	%		2.87	%		2.89	%		2.83	%		3 bps			—			(3) bps			—			2.83	%		2.85	%		(2) bps			—
Return on average common equity		4.06			3.87			6.41			3.48			3.12			19 bps			—			94 bps			—			4.46			(15.69	)		2,015 bps			—
Return on average common equity, excluding restructuring charges and special items¹		4.48			4.14			4.19			3.48			3.47			34 bps			—			101 bps			—			4.07			3.08			99 bps			—
Return on average tangible common equity¹		6.12			5.81			9.59			5.24			4.71			31 bps			—			141 bps			—			6.71			(25.91	)		3,262 bps			—
Return on average tangible common equity, excluding restructuring charges and special items¹		6.76			6.22			6.28			5.24			5.24			54 bps			—			152 bps			—			6.13			5.08			105 bps			—
Return on average total assets		0.60			0.58			0.99			0.54			0.50			2 bps			—			10 bps			—			0.68			(2.83	)		351 bps			—
Return on average total assets, excluding restructuring charges and special items¹		0.66			0.62			0.65			0.54			0.56			4 bps			—			10 bps			—			0.62			0.56			6 bps			—
Return on average total tangible assets¹		0.63			0.61			1.04			0.57			0.53			2 bps			—			10 bps			—			0.71			(3.05	)		376 bps			—
Return on average total tangible assets, excluding restructuring charges and special items¹		0.69			0.66			0.68			0.57			0.59			3 bps			—			10 bps			—			0.65			0.60			5 bps			—
Effective income tax rate		30.56			30.81			34.27			29.45			26.87			(25) bps			—			369 bps			—			31.80			1.21			3,059 bps			—
Efficiency ratio¹		69.88			69.84			64.33			69.43			70.62			4 bps			—			(74) bps			—			68.12			163.73			(9,561) bps			—
Efficiency ratio, excluding restructuring charges and special items¹		67.11			68.02			70.23			69.43			68.35			(91) bps			—			(124) bps			—			68.70			68.61			9 bps			—
CAPITAL RATIOS - BASEL I PERIOD END (PRELIMINARY)
Tier 1 capital ratio		12.4	%		12.9	%		13.3	%		13.4	%		13.5	%
Total capital ratio		15.8			16.1			16.2			16.0			16.1
Leverage ratio		10.6			10.9			11.1			11.4			11.6
Tier 1 common equity ratio²		12.4			12.9			13.3			13.4			13.5
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	132,857		$	131,341		$	130,279		$	126,892		$	122,154		$	1,516			1	%	$	10,703			9	%	$	132,857		$	122,154		$	10,703			9	%
Loans and leases:
Commercial		43,226			41,470			40,974			40,075			39,395			1,756			4			3,831			10			43,226			39,395			3,831			10
Retail		50,184			49,279			47,855			47,008			46,464			905			2			3,720			8			50,184			46,464			3,720			8

Total loans and leases		93,410			90,749			88,829			87,083			85,859			2,661			3			7,551			9			93,410			85,859			7,551			9
Deposits	$	95,707		$	93,463		$	91,656		$	87,462		$	86,903		$	2,244			2		$	8,804			10		$	95,707		$	86,903		$	8,804			10
Long-term borrowed funds		4,642			2,062			1,732			1,403			1,405			2,580			125			3,237			230			4,642			1,405			3,237			230
Total stockholders’ equity		19,268			19,383			19,597			19,442			19,196			(115	)		(1	)		72			—			19,268			19,196			72			—
Loans-to-deposits ratio (period-end balances)³		97.89	%		97.32	%		97.20	%		95.48	%		94.50	%		57 bps			—			339 bps			—			97.89	%		94.50	%		339 bps			—
Loans-to-deposits ratio (average balances)³		97.34			98.01			96.77			95.37			92.35			(67) bps			—			499 bps			—			96.95			91.92			503 bps			—
Full-time equivalent employees		17,677			17,852			18,049			18,856			19,152			(175	)		(1	)		(1,475	)		(8	)		17,677			19,152			(1,475	)		(8	)

¹	These are non-GAAP financial measures. For further information on these measures, refer pages 29-35.

²	Tier 1 common equity ratio is calculated as Tier 1 common capital divided by risk-weighted assets. Tier 1 common capital represents Tier 1 capital, excluding qualifying restricted core capital elements.

³	Ratios include both loans and leases held for sale and deposits held for sale.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)


	QUARTERLY TRENDS																						FULL YEAR
											4Q14 Change																	2014 Change
	4Q14		3Q14		2Q14		1Q14		4Q13		3Q14						4Q13						2014		2013			2013
											$			%			$			%								$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	777	$	754	$	751	$	730	$	743	$	23			3	%	$	34			5	%	$	3,012	$	3,001		$	11			—	%
Interest and fees on loans held for sale		1		2		1		1		2		(1	)		(50	)		(1	)		(50	)		5		12			(7	)		(58	)
Interest and fees on other loans held for sale		1		—		10		12		—		1			—			1			—			23		—			23			—
Investment securities		161		155		154		149		129		6			4			32			25			619		477			142			30
Interest-bearing deposits in banks		1		2		1		1		2		(1	)		(50	)		(1	)		(50	)		5		11			(6	)		(55	)

Total interest income		941		913		917		893		876		28			3			65			7			3,664		3,501			163			5

INTEREST EXPENSE:
Deposits		48		41		34		33		40		7			17			8			20			156		216			(60	)		(28	)
Deposits held for sale		—		—		2		2		—		—			—			—			—			4		—			4			—
Federal funds purchased and securities sold under agreements to repurchase		7		9		1		15		42		(2	)		(22	)		(35	)		(83	)		32		192			(160	)		(83	)
Other short-term borrowed funds		19		21		30		19		1		(2	)		(10	)		18			1,800			89		4			85			2,125
Long-term borrowed funds		27		22		17		16		14		5			23			13			93			82		31			51			165

Total interest expense		101		93		84		85		97		8			9			4			4			363		443			(80	)		(18	)

Net interest income		840		820		833		808		779		20			2			61			8			3,301		3,058			243			8

NONINTEREST INCOME:
Service charges and fees		144		144		147		139		152		—			—			(8	)		(5	)		574		640			(66	)		(10	)
Card fees		58		58		61		56		58		—			—			—			—			233		234			(1	)		—
Trust and investment services fees		38		39		42		39		40		(1	)		(3	)		(2	)		(5	)		158		149			9			6
Foreign exchange and trade finance fees		25		26		22		22		24		(1	)		(4	)		1			4			95		97			(2	)		(2	)
Capital markets fees		25		22		26		18		18		3			14			7			39			91		53			38			72
Mortgage banking fees		16		21		14		20		20		(5	)		(24	)		(4	)		(20	)		71		153			(82	)		(54	)
Bank-owned life insurance income		13		13		12		11		13		—			—			—			—			49		50			(1	)		(2	)
Securities gains, net		1		2		—		25		25		(1	)		(50	)		(24	)		(96	)		28		144			(116	)		(81	)
Other income		19		16		316		28		29		3			19			(10	)		(34	)		379		112			267			238

Total noninterest income		339		341		640		358		379		(2	)		(1	)		(40	)		(11	)		1,678		1,632			46			3

TOTAL REVENUE		1,179		1,161		1,473		1,166		1,158		18			2			21			2			4,979		4,690			289			6
Provision for credit losses		72		77		49		121		132		(5	)		(6	)		(60	)		(45	)		319		479			(160	)		(33	)
NONINTEREST EXPENSE:
Salaries and employee benefits		397		409		467		405		391		(12	)		(3	)		6			2			1,678		1,652			26			2
Outside services		106		106		125		83		101		—			—			5			5			420		360			60			17
Occupancy		81		77		87		81		83		4			5			(2	)		(2	)		326		327			(1	)		—
Equipment expense		63		58		65		64		68		5			9			(5	)		(7	)		250		275			(25	)		(9	)
Amortization of software		43		38		33		31		32		5			13			11			34			145		102			43			42
Goodwill impairment		—		—		—		—		—		—			—			—			—			—		4,435			(4,435	)		(100	)
Other operating expense		134		122		171		146		143		12			10			(9	)		(6	)		573		528			45			9

Total noninterest expense		824		810		948		810		818		14			2			6			1			3,392		7,679			(4,287	)		(56	)

Income before income tax expense (benefit)		283		274		476		235		208		9			3			75			36			1,268		(3,468	)		4,736			NM
Income tax expense (benefit)		86		85		163		69		56		1			1			30			54			403		(42	)		445			NM

NET INCOME (LOSS)	$	197	$	189	$	313	$	166	$	152	$	8			4		$	45			30		$	865	($	3,426	)	$	4,291			NM

Net income excluding restructuring charges and special items¹	$	217	$	202	$	205	$	166	$	169	$	15			7		$	48			28		$	790	$	671		$	119			18

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)


PERIOD END BALANCES	AS OF															DECEMBER 31, 2014 CHANGE
	Dec 31, 2014			Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2014						Dec 31, 2013
																$			%			$			%
ASSETS:
Cash and due from banks	$	1,171		$	993		$	1,038		$	909		$	1,406		$	178			18	%	($	235	)		(17	%)
Interest-bearing cash and due from banks		2,105			1,896			4,318			1,942			1,351			209			11			754			56
Interest-bearing deposits in banks		370			292			309			300			233			78			27			137			59
Securities available for sale, at fair value		18,656			18,666			18,493			18,412			15,995			(10	)		—			2,661			17
Securities held to maturity		5,148			5,289			5,382			5,457			4,315			(141	)		(3	)		833			19
Other investment securities		872			893			948			935			935			(21	)		(2	)		(63	)		(7	)
Loans held for sale, at fair value		256			205			173			131			176			51			25			80			45
Other loans held for sale		25			3			89			1,248			1,078			22			733			(1,053	)		(98	)
Loans and leases		93,410			90,749			88,829			87,083			85,859			2,661			3			7,551			9
Less: Allowance for loan and lease losses		(1,195	)		(1,201	)		(1,210	)		(1,259	)		(1,221	)		6			—			26			2

Net loans and leases		92,215			89,548			87,619			85,824			84,638			2,667			3			7,577			9
Derivative assets		629			547			635			626			650			82			15			(21	)		(3	)
Premises and equipment		595			541			560			574			592			54			10			3			1
Bank-owned life insurance		1,527			1,370			1,361			1,350			1,339			157			11			188			14
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		—			2,067			—			—			446			(2,067	)		(100	)		(446	)		(100	)
Other branch assets held for sale		—			—			—			40			46			—			—			(46	)		(100	)
Other assets		2,412			2,155			2,478			2,268			2,078			257			12			334			16

TOTAL ASSETS	$	132,857		$	131,341		$	130,279		$	126,892		$	122,154		$	1,516			1		$	10,703			9

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	26,086		$	25,877		$	26,670		$	25,681		$	24,931		$	209			1	%	$	1,155			5	%
Interest-bearing		69,621			67,586			64,986			61,781			61,972			2,035			3			7,649			12

Total deposits		95,707			93,463			91,656			87,462			86,903			2,244			2			8,804			10
Deposits held for sale		—			—			—			5,188			5,277			—			—			(5,277	)		(100	)
Federal funds purchased and securities sold under agreements to repurchase		4,276			5,184			6,807			6,080			4,791			(908	)		(18	)		(515	)		(11	)
Other short-term borrowed funds		6,253			6,715			7,702			4,950			2,251			(462	)		(7	)		4,002			178
Derivative liabilities		612			638			747			828			939			(26	)		(4	)		(327	)		(35	)
Deferred taxes, net		493			354			403			319			199			139			39			294			148
Long-term borrowed funds		4,642			2,062			1,732			1,403			1,405			2,580			125			3,237			230
Due to broker		—			2,087			—			—			—			(2,087	)		(100	)		—			—
Other liabilities		1,606			1,455			1,635			1,220			1,193			151			10			413			35

TOTAL LIABILITIES		113,589			111,958			110,682			107,450			102,958			1,631			1			10,631			10
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized, no shares outstanding for each of the periods presented		—			—			—			—			—			—			—			—			—
Common stock:
$.01 par value, 1,000,000,000 shares authorized for each of the periods presented		6			6			6			6			6			—			—			—			—
Additional paid-in capital		18,676			18,660			18,603			18,603			18,603			16			—			73			—
Treasury stock, at cost		(336	)		—			—			—			—			(336	)		—			(336	)		—
Retained earnings		1,294			1,152			1,346			1,376			1,235			142			12			59			5
Accumulated other comprehensive loss		(372	)		(435	)		(358	)		(543	)		(648	)		63			14			276			43

TOTAL STOCKHOLDERS’ EQUITY		19,268			19,383			19,597			19,442			19,196			(115	)		(1	)		72			—

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	132,857		$	131,341		$	130,279		$	126,892		$	122,154		$	1,516			1		$	10,703			9

Memo: Total tangible common equity¹	$	12,806		$	12,900		$	13,098		$	12,925		$	12,662		($	94	)		(1	)	$	144			1

¹	Total tangible common equity is a non-GAAP financial measure. For further information on these measures, refer to page 27.

LOANS AND DEPOSITS

(dollars in millions)


PERIOD END BALANCES	AS OF										DECEMBER 31, 2014 CHANGE
	Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2014						Dec 31, 2013
											$			%			$			%
LOANS AND LEASES:
Commercial	$	31,431	$	30,356	$	30,076	$	29,435	$	28,667	$	1,075			4	%	$	2,764			10	%
Commercial real estate		7,809		7,239		7,158		6,902		6,948		570			8			861			12
Leases		3,986		3,875		3,740		3,738		3,780		111			3			206			5

Total commercial		43,226		41,470		40,974		40,075		39,395		1,756			4			3,831			10

Residential mortgages		11,832		11,265		10,640		10,099		9,726		567			5			2,106			22
Home equity loans		3,424		3,635		3,858		4,139		4,301		(211	)		(6	)		(877	)		(20	)
Home equity lines of credit		15,423		15,558		15,618		15,523		15,667		(135	)		(1	)		(244	)		(2	)
Home equity loans serviced by others¹		1,228		1,290		1,358		1,427		1,492		(62	)		(5	)		(264	)		(18	)
Home equity lines of credit serviced by others¹		550		580		614		648		679		(30	)		(5	)		(129	)		(19	)
Automobile		12,706		12,080		10,974		9,981		9,397		626			5			3,309			35
Student		2,256		2,069		1,941		2,305		2,208		187			9			48			2
Credit card		1,693		1,676		1,646		1,651		1,691		17			1			2			—
Other retail		1,072		1,126		1,206		1,235		1,303		(54	)		(5	)		(231	)		(18	)

Total retail		50,184		49,279		47,855		47,008		46,464		905			2			3,720			8

Total loans and leases	$	93,410	$	90,749	$	88,829	$	87,083	$	85,859	$	2,661			3		$	7,551			9


Loans held for sale	$	256	$	205	$	173	$	131	$	176	$	51			25	%	$	80			45	%
Other loans held for sale²		25		3		89		1,248		1,078		22			733			(1,053	)		(98	)

DEPOSITS:
Demand	$	26,086	$	25,877	$	26,670	$	25,681	$	24,931	$	209			1	%	$	1,155			5	%
Checking with interest		16,394		15,449		15,171		13,694		13,630		945			6			2,764			20
Regular savings		7,824		7,655		7,829		7,899		7,509		169			2			315			4
Money market accounts		33,345		32,870		31,687		30,689		31,245		475			1			2,100			7
Term deposits		12,058		11,612		10,299		9,499		9,588		446			4			2,470			26

Total deposits	$	95,707	$	93,463	$	91,656	$	87,462	$	86,903	$	2,244			2		$	8,804			10


Deposits held for sale²	$	—	$	—	$	—	$	5,188	$	5,277	$	—			—	%	($	5,277	)		(100	)%

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

²	Consists primarily of loans and deposits held for sale as part of the Chicago branch sale.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)


	QUARTERLY TRENDS																											FULL YEAR
AVERAGE BALANCES																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,784		$	2,685		$	2,211		$	1,768		$	2,000		($	901	)		(34	)%	($	216	)		(11	)%	$	2,113		$	2,278		($	165	)		(7	)%
Taxable investment securities		24,658			24,648			24,579			23,375			20,909			10			—			3,749			18			24,319			19,062			5,257			28
Non-taxable investment securities		10			10			11			11			11			—			—			(1	)		(9	)		11			12			(1	)		(8	)

Total investment securities		24,668			24,658			24,590			23,386			20,920			10			—			3,748			18			24,330			19,074			5,256			28

Commercial		30,962			30,186			29,674			29,108			29,058			776			3			1,904			7			29,993			28,654			1,339			5
Commercial real estate		7,427			7,216			7,082			6,898			6,859			211			3			568			8			7,158			6,568			590			9
Leases		3,874			3,789			3,716			3,723			3,619			85			2			255			7			3,776			3,463			313			9

Total commercial		42,263			41,191			40,472			39,729			39,536			1,072			3			2,727			7			40,927			38,685			2,242			6

Residential mortgages		11,647			11,001			10,355			9,889			9,342			646			6			2,305			25			10,729			9,104			1,625			18
Home equity loans		3,527			3,743			4,015			4,231			4,364			(216	)		(6	)		(837	)		(19	)		3,877			4,606			(729	)		(16	)
Home equity lines of credit		15,490			15,572			15,563			15,590			16,109			(82	)		(1	)		(619	)		(4	)		15,552			16,337			(785	)		(5	)
Home equity loans serviced by others¹		1,252			1,317			1,388			1,454			1,519			(65	)		(5	)		(267	)		(18	)		1,352			1,724			(372	)		(22	)
Home equity lines of credit serviced by others¹		561			591			627			660			692			(30	)		(5	)		(131	)		(19	)		609			768			(159	)		(21	)
Automobile		12,403			11,438			10,528			9,408			9,007			965			8			3,396			38			11,011			8,857			2,154			24
Student		2,142			1,983			2,209			2,262			2,204			159			8			(62	)		(3	)		2,148			2,202			(54	)		(2	)
Credit cards		1,663			1,661			1,647			1,639			1,702			2			—			(39	)		(2	)		1,651			1,669			(18	)		(1	)
Other retail		1,097			1,153			1,215			1,270			1,341			(56	)		(5	)		(244	)		(18	)		1,186			1,453			(267	)		(18	)

Total retail		49,782			48,459			47,547			46,403			46,280			1,323			3			3,502			8			48,115			46,720			1,395			3

Total loans and leases		92,045			89,650			88,019			86,132			85,816			2,395			3			6,229			7			89,042			85,405			3,637			4
Loans held for sale		213			176			138			127			224			37			21			(11	)		(5	)		163			392			(229	)		(58	)
Other loans held for sale		20			27			1,034			1,092			12			(7	)		(26	)		8			67			539			—			539			—

Interest-earning assets		118,730			117,196			115,992			112,505			108,972			1,534			1			9,758			9			116,187			107,149			9,038			8
Allowance for loan and lease losses		(1,195	)		(1,202	)		(1,286	)		(1,238	)		(1,223	)		7			(1	)		28			(2	)		(1,230	)		(1,219	)		(11	)		1
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,063			(2,187	)		(24	)
Other noninterest-earning assets		6,260			5,821			5,566			5,761			5,768			439			8			492			9			5,791			5,873			(82	)		(1	)

Total noninterest-earning assets		11,941			11,495			11,156			11,399			11,421			446			4			520			5			11,437			13,717			(2,280	)		(17	)

TOTAL ASSETS	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2		$	10,278			9		$	127,624		$	120,866		$	6,758			6

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	15,718		$	15,155		$	13,805		$	13,317		$	13,925		$	563			4	%	$	1,793			13	%	$	14,507		$	14,096		$	411			3	%
Money market & savings		40,856			40,096			38,418			38,919			41,838			760			2			(982	)		(2	)		39,579			42,575			(2,996	)		(7	)
Term deposits		11,892			10,596			9,416			9,334			11,254			1,296			12			638			6			10,317			11,266			(949	)		(8	)

Total interest-bearing deposits		68,466			65,847			61,639			61,570			67,017			2,619			4			1,449			2			64,403			67,937			(3,534	)		(5	)
Interest-bearing deposits held for sale		—			—			3,675			4,233			—			—			—			—			—			1,960			—			1,960			—
Federal funds purchased and securities sold under agreements to repurchase²		5,075			6,305			5,709			5,707			4,100			(1,230	)		(20	)		975			24			5,699			2,400			3,299			137
Other short-term borrowed funds		6,119			6,740			6,027			3,637			412			(621	)		(9	)		5,707			1,385			5,640			251			5,389			2,147
Long-term borrowed funds		2,834			1,951			1,419			1,405			1,158			883			45			1,676			145			1,907			778			1,129			145

Total borrowed funds		14,028			14,996			13,155			10,749			5,670			(968	)		(6	)		8,358			147			13,246			3,429			9,817			286

Total interest-bearing liabilities		82,494			80,843			78,469			76,552			72,687			1,651			2			9,807			13			79,609			71,366			8,243			12
Total demand deposits		26,331			25,829			25,984			24,796			26,167			502			2			164			1			25,739			25,399			340			1
Demand deposits held for sale		—			—			868			997			—			—			—			—			—			462			—			462			—
Other liabilities		2,637			2,608			2,220			2,189			2,175			29			1			462			21			2,415			2,267			148			7

TOTAL LIABILITIES		111,462			109,280			107,541			104,534			101,029			2,182			2			10,433			10			108,225			99,032			9,193			9

STOCKHOLDERS’ EQUITY		19,209			19,411			19,607			19,370			19,364			(202	)		(1	)		(155	)		(1	)		19,399			21,834			(2,435	)		(11	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2		$	10,278			9		$	127,624		$	120,866		$	6,758			6

Memo: Total average tangible common equity³	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		($	183	)		(1	)	($	92	)		(1	)	$	12,893		$	13,221		($	328	)		(2	)

Total deposits (interest-bearing and demand)	$	94,797		$	91,676		$	92,166		$	91,596		$	93,184		$	3,121			3		$	1,613			2		$	92,565		$	93,336		($	771	)		(1	)

¹	Our SBO portfolio consists of loans 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	Total average tangible common equity is a non-GAAP financial measure. For further information on these measures, refer to pages 29-35.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS																									FULL YEAR
AVERAGE ANNUALIZED YIELDS & RATES	4Q14					3Q14					2Q14					1Q14					4Q13					2014					2013
	Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense
INTEREST-EARNING ASSETS:
Interest-bearing deposits in banks		0.20	%	$	1		0.23	%	$	2		0.23	%	$	1		0.23	%	$	1		0.33	%	$	1		0.22	%	$	5		0.46	%	$	11
Taxable investment securities		2.61			161		2.51			155		2.51			154		2.56			149		2.48			130		2.55			619		2.50			477
Non-taxable investment securities		2.60			—		2.59			—		2.60			—		2.60			—		2.60			—		2.60			—		2.66			—

Total investment securities		2.61			161		2.51			155		2.51			154		2.57			149		2.48			130		2.55			619		2.50			477

Commercial		2.90			229		2.89			223		3.05			229		3.01			219		3.03			225		2.96			900		3.10			900
Commercial real estate		2.55			48		2.46			46		2.49			45		2.58			45		2.62			46		2.52			183		2.67			178
Leases		2.65			26		2.68			25		2.74			25		2.84			26		2.84			26		2.73			103		3.05			105

Total commercial		2.82			303		2.80			294		2.95			299		2.92			290		2.94			297		2.86			1,186		3.02			1,183

Residential mortgages		3.88			113		3.92			108		4.08			106		3.98			98		3.86			90		3.96			425		3.96			360
Home equity loans		5.31			47		5.31			50		5.31			53		5.23			55		5.28			58		5.29			205		5.35			246
Home equity lines of credit		2.94			114		2.90			113		2.85			111		2.86			110		2.84			116		2.89			450		2.83			463
Home equity loans serviced by others¹		6.88			22		6.64			22		6.72			23		6.79			24		6.67			26		6.75			91		6.65			115
Home equity lines of credit serviced by others¹		2.70			4		2.62			4		2.74			4		2.67			4		3.02			5		2.68			16		2.88			22
Automobile		2.64			83		2.57			74		2.54			67		2.54			59		2.57			58		2.57			282		2.65			235
Student		5.07			27		4.99			25		4.51			25		4.43			25		4.35			24		4.74			102		4.30			95
Credit cards		10.28			43		9.99			42		9.92			41		10.31			42		10.16			44		10.14			167		10.46			175
Other retail		7.49			21		7.46			22		7.46			22		7.42			23		7.48			25		7.43			88		7.36			107

Total retail		3.79			474		3.78			460		3.81			452		3.85			440		3.82			446		3.80			1,826		3.89			1,818

Total loans and leases		3.34			777		3.33			754		3.40			751		3.41			730		3.42			743		3.37			3,012		3.50			3,001
Loans held for sale		2.68			1		3.46			2		3.40			1		3.29			1		3.45			2		3.10			5		3.07			12
Other loans held for sale		12.94			1		5.44			—		3.90			10		4.21			12		—			—		4.17			23		—			—

Total interest-earning assets		3.14			941		3.08			913		3.16			917		3.19			893		3.18			876		3.14			3,664		3.25			3,501
INTEREST-BEARING LIABILITIES:
Checking with interest		0.11			4		0.09			4		0.06			2		0.06			2		0.06			2		0.08			12		0.06			8
Money market & savings		0.22			23		0.21			21		0.17			16		0.17			16		0.19			20		0.19			77		0.25			105
Term deposits		0.70			21		0.61			16		0.67			16		0.65			15		0.64			18		0.65			67		0.91			103

Total interest-bearing deposits		0.28			48		0.25			41		0.22			34		0.22			33		0.24			40		0.24			156		0.32			216
Interest-bearing deposits held for sale		—			—		—			—		0.21			2		0.23			2		—			—		0.22			4		—			—
Federal funds purchased and securities sold under agreements to repurchase²		0.54			7		0.54			9		0.09			1		1.02			15		4.02			42		0.55			32		7.89			192
Other short-term borrowed funds		1.23			19		1.21			21		2.00			30		2.07			19		0.80			1		1.56			89		1.64			4
Long-term borrowed funds		3.83			27		4.39			22		4.63			17		4.61			16		4.70			14		4.25			82		3.93			31

Total borrowed funds		1.51			53		1.34			52		1.46			48		1.84			50		3.93			57		1.51			203		6.53			227

Total interest-bearing liabilities		0.49			101		0.45			93		0.43			84		0.45			85		0.52			97		0.45			363		0.61			443
INTEREST RATE SPREAD		2.65	%				2.63	%				2.73	%				2.74	%				2.66	%				2.69	%				2.64	%
NET INTEREST MARGIN		2.80					2.77					2.87					2.89					2.83					2.83					2.85
Memo: Total deposit costs		0.20			48		0.18			41		0.15			36		0.16			35		0.17			40		0.17			160		0.23			216

¹	Our SBO portfolio consists of loans 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)


	FOURTH QUARTER 2014												THIRD QUARTER 2014												CHANGE
																									4Q14 from 3Q14
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%

Net interest income	$	536		$	283		$	21		$	840		$	532		$	270		$	18		$	820		$	20			2	%
Noninterest income		218			111			10			339			226			104			11			341			(2	)		(1	)

Total revenue		754			394			31			1,179			758			374			29			1,161			18			2
Noninterest expense		611			180			33			824			609			162			39			810			14			2

Profit (loss) before provision for credit losses		143			214			(2	)		355			149			212			(10	)		351			4			1
Provision for credit losses		64			1			7			72			66			—			11			77			(5	)		(6	)

Income (loss) before income tax expense (benefit)		79			213			(9	)		283			83			212			(21	)		274			9			3
Income tax expense (benefit)		27			73			(14	)		86			29			73			(17	)		85			1			1

Net income (loss)	$	52		$	140		$	5		$	197		$	54		$	139		($	4	)	$	189		$	8			4

Average Balances
Total assets	$	50,546		$	40,061		$	40,064		$	130,671		$	49,012		$	38,854		$	40,825		$	128,691		$	1,980			2	%
Total loans and leases²		49,351			38,926			4,001			92,278			47,848			37,787			4,218			89,853			2,425			3
Deposits		66,374			22,500			5,923			94,797			65,609			20,985			5,082			91,676			3,121			3
Interest-earning assets		49,382			39,039			30,309			118,730			47,885			37,927			31,384			117,196			1,534			1
Key Metrics
Net interest margin		4.31	%		2.87	%		NM			2.80	%		4.40	%		2.82	%		NM			2.77	%		3 bps			—
Efficiency ratio³		81.09			45.48			NM			69.88			80.42			43.35			NM			69.84			4 bps			—
Loans-to-deposits ratio (average balances)		74.35			173.01			NM			97.34			72.93			180.06			NM			98.01			(67) bps			—
Return on average total tangible assets³		0.40			1.38			NM			0.63			0.44			1.42			NM			0.61			2 bps			—
Return on average tangible common equity³		4.30			12.76			NM			6.12			4.57			13.10			NM			5.81			31 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	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)


	FOURTH QUARTER 2014												FOURTH QUARTER 2013												CHANGE
																									4Q14 from 4Q13
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%

Net interest income (expense)	$	536		$	283		$	21		$	840		$	543		$	260		($	24	)	$	779		$	61			8	%
Noninterest income		218			111			10			339			235			105			39			379			(40	)		(11	)

Total revenue		754			394			31			1,179			778			365			15			1,158			21			2
Noninterest expense		611			180			33			824			638			164			16			818			6			1

Profit (loss) before provision for credit losses		143			214			(2	)		355			140			201			(1	)		340			15			4
Provision for credit losses		64			1			7			72			65			14			53			132			(60	)		(45	)

Income (loss) before income tax expense (benefit)		79			213			(9	)		283			75			187			(54	)		208			75			36
Income tax expense (benefit)		27			73			(14	)		86			25			64			(33	)		56			30			54

Net income (loss)	$	52		$	140		$	5		$	197		$	50		$	123		($	21	)	$	152		$	45			30

Average Balances
Total assets	$	50,546		$	40,061		$	40,064		$	130,671		$	46,225		$	36,094		$	38,074		$	120,393		$	10,278			9	%
Total loans and leases²		49,351			38,926			4,001			92,278			44,790			35,684			5,578			86,052			6,226			7
Deposits		66,374			22,500			5,923			94,797			71,423			17,623			4,138			93,184			1,613			2
Interest-earning assets		49,382			39,039			30,309			118,730			44,823			35,820			28,329			108,972			9,758			9
Key Metrics
Net interest margin		4.31	%		2.87	%		NM			2.80	%		4.81	%		2.88	%		NM			2.83	%		(3) bps			—
Efficiency ratio³		81.09			45.48			NM			69.88			81.84			44.73			NM			70.62			(74) bps			—
Loans-to-deposits ratio (average balances)		74.35			173.01			NM			97.34			62.71			202.49			NM			92.35			499 bps			—
Return on average total tangible assets³		0.40			1.38			NM			0.63			0.42			1.33			NM			0.53			10 bps			—
Return on average tangible common equity³		4.30			12.76			NM			6.12			4.40			12.10			NM			4.71			141 bps			—

²	Includes loans and leases held for sale.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)


	FULL YEAR 2014											FULL YEAR 2013												CHANGE
																								2014 from 2013
	Consumer Banking			Commercial Banking			Other¹		Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%

Net interest income (expense)	$	2,151		$	1,073		$	77	$	3,301		$	2,176		$	1,031		($	149	)	$	3,058		$	243			8	%
Noninterest income		899			429			350		1,678			1,025			389			218			1,632			46			3

Total revenue		3,050			1,502			427		4,979			3,201			1,420			69			4,690			289			6
Noninterest expense		2,513			652			227		3,392			2,522			635			4,522			7,679			(4,287	)		(56	)

Profit (loss) before provision for credit losses		537			850			200		1,587			679			785			(4,453	)		(2,989	)		4,576			153
Provision for credit losses		259			(6	)		66		319			308			(7	)		178			479			(160	)		(33	)

Income (loss) before income tax expense (benefit)		278			856			134		1,268			371			792			(4,631	)		(3,468	)		4,736			137
Income tax expense (benefit)		96			295			12		403			129			278			(449	)		(42	)		445			1,060

Net income (loss)	$	182		$	561		$	122	$	865		$	242		$	514		($	4,182	)	($	3,426	)	$	4,291			NM

Average Balances
Total assets	$	48,939		$	38,483		$	40,202	$	127,624		$	46,465		$	35,229		$	39,172		$	120,866		$	6,758			6	%
Total loans and leases²		47,745			37,683			4,316		89,744			45,106			34,647			6,044			85,797			3,947			5
Deposits³		68,214			19,838			4,513		92,565			72,158			17,516			3,662			93,336			(771	)		(1	)
Interest-earning assets		47,777			37,809			30,601		116,187			45,135			34,771			27,243			107,149			9,038			8
Key Metrics
Net interest margin		4.50	%		2.84	%		NM		2.83	%		4.82	%		2.97	%		NM			2.85	%		(2) bps			—
Efficiency ratio⁴		82.39			43.37			NM		68.12			78.76			44.66			NM			163.73			(9,561) bps			—
Loans-to-deposits ratio (average balances)		69.99			189.96			NM		96.95			62.51			197.80			NM			91.92			503 bps			—
Return on average total tangible assets⁴		0.37			1.46			NM		0.71			0.52			1.46			NM			(3.05	)		376 bps			—
Return on average tangible common equity⁴		3.90			13.43			NM		6.71			5.48			13.20			NM			(25.91	)		3,262 bps			—

²	Includes loans and leases held for sale.

³	Includes deposits held for sale.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FULL YEAR
CONSUMER BANKING																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Net interest income	$	536		$	532		$	546		$	537		$	543		$	4			1	%	($	7	)		(1	)%	$	2,151		$	2,176		($	25	)		(1	)%
Noninterest income		218			226			236			219			235			(8	)		(4	)		(17	)		(7	)		899			1,025			(126	)		(12	)

Total revenue		754			758			782			756			778			(4	)		(1	)		(24	)		(3	)		3,050			3,201			(151	)		(5	)
Noninterest expense		611			609			655			638			638			2			—			(27	)		(4	)		2,513			2,522			(9	)		—

Profit before provision for credit losses		143			149			127			118			140			(6	)		(4	)		3			2			537			679			(142	)		(21	)
Provision for credit losses		64			66			59			70			65			(2	)		(3	)		(1	)		(2	)		259			308			(49	)		(16	)

Income before income tax expense		79			83			68			48			75			(4	)		(5	)		4			5			278			371			(93	)		(25	)
Income tax expense		27			29			24			16			25			(2	)		(7	)		2			8			96			129			(33	)		(26	)

Net income	$	52		$	54		$	44		$	32		$	50		($	2	)		(4	)	$	2			4		$	182		$	242		($	60	)		(25	)

Average Balances
Total assets	$	50,546		$	49,012		$	48,556		$	47,610		$	46,225		$	1,534			3	%	$	4,321			9	%	$	48,939		$	46,465		$	2,474			5	%
Total loans and leases¹		49,351			47,848			47,368			46,154			44,790			1,503			3			4,561			10			47,745			45,106			2,639			6
Deposits²		66,374			65,609			70,181			70,769			71,423			765			1			(5,049	)		(7	)		68,214			72,158			(3,944	)		(5	)
Interest-earning assets		49,382			47,885			47,397			46,185			44,823			1,497			3			4,559			10			47,777			45,135			2,642			6
Key Metrics
Net interest margin		4.31	%		4.40	%		4.62	%		4.72	%		4.81	%		(9) bps			—			(50) bps			—			4.50	%		4.82	%		(32) bps			—
Efficiency ratio⁴		81.09			80.42			83.61			84.39			81.84			67 bps			—			(75) bps			—			82.39			78.76			363 bps			—
Loans-to-deposits ratio (average balances)		74.35			72.93			67.49			65.22			62.71			142 bps			—			1,164 bps			—			69.99			62.51			748 bps			—
Return on average total tangible assets⁴		0.40			0.44			0.37			0.27			0.42			(4) bps			—			(2) bps			—			0.37			0.52			(15) bps			—
Return on average tangible common equity^3,4		4.30			4.57			3.87			2.81			4.40			(27) bps			—			(10) bps			—			3.90			5.48			(158) bps			—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																										FULL YEAR
COMMERCIAL BANKING																4Q14 Change																	2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14					4Q13						2014			2013			2013
																$		%			$			%									$		%
Net interest income	$	283		$	270		$	264		$	256		$	260		$	13		5	%	$	23			9	%	$	1,073		$	1,031		$	42		4	%
Noninterest income		111			104			107			107			105			7		7			6			6			429			389			40		10

Total revenue		394			374			371			363			365			20		5			29			8			1,502			1,420			82		6
Noninterest expense		180			162			157			153			164			18		11			16			10			652			635			17		3

Profit before provision for credit losses		214			212			214			210			201			2		1			13			6			850			785			65		8
Provision for credit losses		1			—			(2	)		(5	)		14			1		—			(13	)		(93	)		(6	)		(7	)		1		14

Income before income tax expense		213			212			216			215			187			1		—			26			14			856			792			64		8
Income tax expense		73			73			75			74			64			—		—			9			14			295			278			17		6

Net income	$	140		$	139		$	141		$	141		$	123		$	1		1		$	17			14		$	561		$	514		$	47		9

Average Balances
Total assets	$	40,061		$	38,854		$	38,022		$	36,955		$	36,094		$	1,207		3	%	$	3,967			11	%	$	38,483		$	35,229		$	3,254		9	%
Total loans and leases		38,926			37,787			37,389			36,577			35,684			1,139		3			3,242			9			37,683			34,647			3,036		9
Deposits		22,500			20,985			18,358			17,440			17,623			1,515		7			4,877			28			19,838			17,516			2,322		13
Interest-earning assets		39,039			37,927			37,505			36,716			35,820			1,112		3			3,219			9			37,809			34,771			3,038		9
Key Metrics
Net interest margin		2.87	%		2.82	%		2.82	%		2.83	%		2.88	%		5 bps		—			(1) bps			—			2.84	%		2.97	%		(13) bps		—
Efficiency ratio²		45.48			43.35			42.36			42.13			44.73			213 bps		—			75 bps			—			43.37			44.66			(129) bps		—
Loans-to-deposits ratio (average balances)		173.01			180.06			203.67			209.74			202.49			(705) bps		—			(2,948) bps			—			189.96			197.80			(784) bps		—
Return on average total tangible assets²		1.38			1.42			1.50			1.54			1.33			(4) bps		—			5 bps			—			1.46			1.46			— bps		—
Return on average tangible common equity^1,2		12.76			13.10			13.78			14.17			12.10			(34) bps		—			66 bps			—			13.43			13.20			23 bps		—

¹	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

²	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)


	QUARTERLY TRENDS																											FULL YEAR
OTHER¹																4Q14 Change																	2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014		2013			2013
																$			%			$			%								$			%
Net interest income (expense)	$	21		$	18		$	23		$	15		($	24	)	$	3			17	%	$	45			188	%	$	77	($	149	)	$	226			152	%
Noninterest income		10			11			297			32			39			(1	)		(9	)		(29	)		(74	)		350		218			132			61

Total revenue		31			29			320			47			15			2			7			16			107			427		69			358			519
Noninterest expense		33			39			136			19			16			(6	)		(15	)		17			106			227		4,522			(4,295	)		(95	)

Profit (loss) before provision for credit losses		(2	)		(10	)		184			28			(1	)		8			80			(1	)		(100	)		200		(4,453	)		4,653			104
Provision for credit losses		7			11			(8	)		56			53			(4	)		(36	)		(46	)		(87	)		66		178			(112	)		(63	)

Income (loss) before income tax expense (benefit)		(9	)		(21	)		192			(28	)		(54	)		12			57			45			83			134		(4,631	)		4,765			103
Income tax expense (benefit)		(14	)		(17	)		64			(21	)		(33	)		3			18			19			58			12		(449	)		461			103

Net income (loss)	$	5		($	4	)	$	128		($	7	)	($	21	)	$	9			225		$	26			124		$	122	($	4,182	)	$	4,304			NM

Average Balances
Total assets	$	40,064		$	40,825		$	40,570		$	39,339		$	38,074		($	761	)		(2	)%	$	1,990			5	%	$	40,202	$	39,172		$	1,030			3	%
Total loans and leases		4,001			4,218			4,434			4,620			5,578			(217	)		(5	)		(1,577	)		(28	)		4,316		6,044			(1,728	)		(29	)
Deposits		5,923			5,082			3,627			3,387			4,138			841			17			1,785			43			4,513		3,662			851			23
Interest-earning assets		30,309			31,384			31,090			29,604			28,329			(1,075	)		(3	)		1,980			7			30,601		27,243			3,358			12

FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FULL YEAR
CONSOLIDATED																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Net interest income	$	840		$	820		$	833		$	808		$	779		$	20			2	%	$	61			8	%	$	3,301		$	3,058		$	243			8	%
Noninterest income		339			341			640			358			379			(2	)		(1	)		(40	)		(11	)		1,678			1,632			46			3

Total revenue		1,179			1,161			1,473			1,166			1,158			18			2			21			2			4,979			4,690			289			6
Noninterest expense		824			810			948			810			818			14			2			6			1			3,392			7,679			(4,287	)		(56	)

Profit (loss) before provision for credit losses		355			351			525			356			340			4			1			15			4			1,587			(2,989	)		4,576			153
Provision for credit losses		72			77			49			121			132			(5	)		(6	)		(60	)		(45	)		319			479			(160	)		(33	)

Income (loss) before income tax expense (benefit)		283			274			476			235			208			9			3			75			36			1,268			(3,468	)		4,736			137
Income tax expense (benefit)		86			85			163			69			56			1			1			30			54			403			(42	)		445			1,060

Net income (loss)	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			NM

Average Balances
Total assets	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2	%	$	10,278			9	%	$	127,624		$	120,866		$	6,758			6	%
Total loans and leases¹		92,278			89,853			89,191			87,351			86,052			2,425			3			6,226			7			89,744			85,797			3,947			5
Deposits²		94,797			91,676			92,166			91,596			93,184			3,121			3			1,613			2			92,565			93,336			(771	)		(1	)
Interest-earning assets		118,730			117,196			115,992			112,505			108,972			1,534			1			9,758			9			116,187			107,149			9,038			8
Key Metrics
Net interest margin		2.80	%		2.77	%		2.87	%		2.89	%		2.83	%		3 bps			—			(3) bps			—			2.83	%		2.85	%		(2) bps			—
Efficiency ratio³		69.88			69.84			64.33			69.43			70.62			4 bps			—			(74) bps			—			68.12			163.73			(9,561) bps			—
Loans-to-deposits ratio (average balances)		97.34			98.01			96.77			95.37			92.35			(67) bps			—			499 bps			—			96.95			91.92			503 bps			—
Return on average total tangible assets³		0.63			0.61			1.04			0.57			0.53			2 bps			—			10 bps			—			0.71			(3.05	)		376 bps			—
Return on average tangible common equity³		6.12			5.81			9.59			5.24			4.71			31 bps			—			141 bps			—			6.71			(25.91	)		3,262 bps			—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)


	QUARTERLY TRENDS																									FULL YEAR
														4Q14 Change																	2014 Change
	4Q14			3Q14			2Q14		1Q14		4Q13			3Q14						4Q13						2014		2013			2013
														$			%			$			%								$			%
Net interest income:
Consumer Banking	$	536		$	532		$	546	$	537	$	543		$	4			1	%	($	7	)		(1	%)	$	2,151	$	2,176		($	25	)		(1	)%
Commercial Banking		283			270			264		256		260			13			5			23			9			1,073		1,031			42			4
Other		21			18			23		15		(24	)		3			17			45			188			77		(149	)		226			152

Net interest income	$	840		$	820		$	833	$	808	$	779		$	20			2		$	61			8		$	3,301	$	3,058		$	243			8


Noninterest income:
Consumer Banking	$	218		$	226		$	236	$	219	$	235		($	8	)		(4	)%	($	17	)		(7	)%	$	899	$	1,025		($	126	)		(12	)%
Commercial Banking		111			104			107		107		105			7			7			6			6			429		389			40			10
Other		10			11			297		32		39			(1	)		(9	)		(29	)		(74	)		350		218			132			61

Noninterest income	$	339		$	341		$	640	$	358	$	379		($	2	)		(1	)	($	40	)		(11	)	$	1,678	$	1,632		$	46			3


Total revenue:
Consumer Banking	$	754		$	758		$	782	$	756	$	778		($	4	)		(1	)%	($	24	)		(3	)%	$	3,050	$	3,201		($	151	)		(5	)%
Commercial Banking		394			374			371		363		365			20			5			29			8			1,502		1,420			82			6
Other		31			29			320		47		15			2			7			16			107			427		69			358			519

Total revenue	$	1,179		$	1,161		$	1,473	$	1,166	$	1,158		$	18			2		$	21			2		$	4,979	$	4,690		$	289			6


Noninterest expense:
Consumer Banking	$	611		$	609		$	655	$	638	$	638		$	2			—	%	($	27	)		(4	%)	$	2,513	$	2,522		($	9	)		—	%
Commercial Banking		180			162			157		153		164			18			11			16			10			652		635			17			3
Other		33			39			136		19		16			(6	)		(15	)		17			106			227		4,522			(4,295	)		(95	)

Noninterest expense	$	824		$	810		$	948	$	810	$	818		$	14			2		$	6			1		$	3,392	$	7,679		($	4,287	)		(56	)


Profit (loss) before provision for credit losses:
Consumer Banking	$	143		$	149		$	127	$	118	$	140		($	6	)		(4	)%	$	3			2	%	$	537	$	679		($	142	)		(21	)%
Commercial Banking		214			212			214		210		201			2			1			13			6			850		785			65			8
Other		(2	)		(10	)		184		28		(1	)		8			80			(1	)		(100	)		200		(4,453	)		4,653			104

Profit (loss) before provision for credit losses	$	355		$	351		$	525	$	356	$	340		$	4			1		$	15			4		$	1,587	($	2,989	)	$	4,576			153

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	64		$	66		$	59		$	70		$	65		($	2	)		(3	)%	($	1	)		(2	)%	$	259		$	308		($	49	)		(16	)%
Commercial Banking		1			—			(2	)		(5	)		14			1			—			(13	)		(93	)		(6	)		(7	)		1			14
Other		7			11			(8	)		56			53			(4	)		(36	)		(46	)		(87	)		66			178			(112	)		(63	)

Provision for credit losses	$	72		$	77		$	49		$	121		$	132		($	5	)		(6	)	($	60	)		(45	)	$	319		$	479		($	160	)		(33	)


Income (loss) before income tax expense (benefit):
Consumer Banking	$	79		$	83		$	68		$	48		$	75		($	4	)		(5	%)	$	4			5	%	$	278		$	371		($	93	)		(25	)%
Commercial Banking		213			212			216			215			187			1			—			26			14			856			792			64			8
Other		(9	)		(21	)		192			(28	)		(54	)		12			57			45			83			134			(4,631	)		4,765			103

Income (loss) before income tax expense (benefit)	$	283		$	274		$	476		$	235		$	208		$	9			3		$	75			36		$	1,268		($	3,468	)	$	4,736			137


Income tax expense (benefit):
Consumer Banking	$	27		$	29		$	24		$	16		$	25		($	2	)		(7	%)	$	2			8	%	$	96		$	129		($	33	)		(26	)%
Commercial Banking		73			73			75			74			64			—			—			9			14			295			278			17			6
Other		(14	)		(17	)		64			(21	)		(33	)		3			18			19			58			12			(449	)		461			103

Income tax expense (benefit)	$	86		$	85		$	163		$	69		$	56		$	1			1		$	30			54		$	403		($	42	)	$	445			1,060


Net income (loss):
Consumer Banking	$	52		$	54		$	44		$	32		$	50		($	2	)		(4	%)	$	2			4	%	$	182		$	242		($	60	)		(25	)%
Commercial Banking		140			139			141			141			123			1			1			17			14			561			514			47			9
Other		5			(4	)		128			(7	)		(21	)		9			225			26			124			122			(4,182	)		4,304			NM

Net income (loss)	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			NM

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																						FULL YEAR
AVERAGE BALANCES											4Q14 Change																2014 Change
	4Q14		3Q14		2Q14		1Q14		4Q13		3Q14						4Q13						2014		2013		2013
											$			%			$			%							$			%
Total assets:
Consumer Banking	$	50,546	$	49,012	$	48,556	$	47,610	$	46,225	$	1,534			3	%	$	4,321			9	%	$	48,939	$	46,465	$	2,474			5	%
Commercial Banking		40,061		38,854		38,022		36,955		36,094		1,207			3			3,967			11			38,483		35,229		3,254			9
Other		40,064		40,825		40,570		39,339		38,074		(761	)		(2	)		1,990			5			40,202		39,172		1,030			3

Total assets	$	130,671	$	128,691	$	127,148	$	123,904	$	120,393	$	1,980			2		$	10,278			9		$	127,624	$	120,866	$	6,758			6


Loans and leases¹:
Consumer Banking	$	49,351	$	47,848	$	47,368	$	46,154	$	44,790	$	1,503			3	%	$	4,561			10	%	$	47,745	$	45,106	$	2,639			6	%
Commercial Banking		38,926		37,787		37,389		36,577		35,684		1,139			3			3,242			9			37,683		34,647		3,036			9
Other		4,001		4,218		4,434		4,620		5,578		(217	)		(5	)		(1,577	)		(28	)		4,316		6,044		(1,728	)		(29	)

Total loans and leases	$	92,278	$	89,853	$	89,191	$	87,351	$	86,052	$	2,425			3		$	6,226			7		$	89,744	$	85,797	$	3,947			5


Deposits²:
Consumer Banking	$	66,374	$	65,609	$	70,181	$	70,769	$	71,423	$	765			1	%	($	5,049	)		(7	)%	$	68,214	$	72,158	($	3,944	)		(5	)%
Commercial Banking		22,500		20,985		18,358		17,440		17,623		1,515			7			4,877			28			19,838		17,516		2,322			13
Other		5,923		5,082		3,627		3,387		4,138		841			17			1,785			43			4,513		3,662		851			23

Total deposits	$	94,797	$	91,676	$	92,166	$	91,596	$	93,184	$	3,121			3		$	1,613			2		$	92,565	$	93,336	($	771	)		(1	)


Interest-earning assets:
Consumer Banking	$	49,382	$	47,885	$	47,397	$	46,185	$	44,823	$	1,497			3	%	$	4,559			10	%	$	47,777	$	45,135	$	2,642			6	%
Commercial Banking		39,039		37,927		37,505		36,716		35,820		1,112			3			3,219			9			37,809		34,771		3,038			9
Other		30,309		31,384		31,090		29,604		28,329		(1,075	)		(3	)		1,980			7			30,601		27,243		3,358			12

Total interest-earning assets	$	118,730	$	117,196	$	115,992	$	112,505	$	108,972	$	1,534			1		$	9,758			9		$	116,187	$	107,149	$	9,038			8

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS																							FULL YEAR
KEY METRICS																4Q14 Change														2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14				4Q13				2014			2013			2013
																bps				bps										bps
Net Interest Margin (NIM)
Consumer Banking		4.31	%		4.40	%		4.62	%		4.72	%		4.81	%		(9	)	—		(50	)	—		4.50	%		4.82	%		(32	)	—
Commercial Banking		2.87			2.82			2.82			2.83			2.88			5		—		(1	)	—		2.84			2.97			(13	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
NIM		2.80			2.77			2.87			2.89			2.83			3		—		(3	)	—		2.83			2.85			(2	)	—

Efficiency Ratio³
Consumer Banking		81.09	%		80.42	%		83.61	%		84.39	%		81.84	%		67		—		(75	)	—		82.39	%		78.76	%		363		—
Commercial Banking		45.48			43.35			42.36			42.13			44.73			213		—		75		—		43.37			44.66			(129	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
Efficiency Ratio		69.88			69.84			64.33			69.43			70.62			4		—		(74	)	—		68.12			163.73			(9,561	)	—

Loans to Deposits Ratio (average balances) (LDR)¹
Consumer Banking		74.35	%		72.93	%		67.49	%		65.22	%		62.71	%		142		—		1,164		—		69.99	%		62.51	%		748		—
Commercial Banking		173.01			180.06			203.67			209.74			202.49			(705	)	—		(2,948	)	—		189.96			197.80			(784	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
LDR		97.34			98.01			96.77			95.37			92.35			(67	)	—		499		—		96.95			91.92			503		—

Return on Average Total Tangible Assets (ROTA)³
Consumer Banking		0.40	%		0.44	%		0.37	%		0.27	%		0.42	%		(4	)	—		(2	)	—		0.37	%		0.52	%		(15	)	—
Commercial Banking		1.38			1.42			1.50			1.54			1.33			(4	)	—		5		—		1.46			1.46			—		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTA		0.63			0.61			1.04			0.57			0.53			2		—		10		—		0.71			(3.05	)		376		—

Return on Average Tangible Common Equity (ROTCE)^2,3
Consumer Banking		4.30	%		4.57	%		3.87	%		2.81	%		4.40	%		(27	)	—		(10	)	—		3.90	%		5.48	%		(158	)	—
Commercial Banking		12.76			13.10			13.78			14.17			12.10			(34	)	—		66		—		13.43			13.20			23		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTCE		6.12			5.81			9.59			5.24			4.71			31		—		141		—		6.71			(25.91	)		3,262		—

¹	Includes loans and leases and deposits held for sale.

²	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

CREDIT-RELATED INFORMATION

(dollars in millions)


	AS OF										DECEMBER 31, 2014 CHANGE
	Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2014						Dec 31, 2013
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	31,431	$	30,356	$	30,076	$	29,435	$	28,667	$	1,075			4	%	$	2,764			10	%
Commercial real estate		7,809		7,239		7,158		6,902		6,948		570			8			861			12
Leases		3,986		3,875		3,740		3,738		3,780		111			3			206			5

Total commercial		43,226		41,470		40,974		40,075		39,395		1,756			4			3,831			10
Residential mortgages		11,832		11,265		10,640		10,099		9,726		567			5			2,106			22
Home equity loans		3,424		3,635		3,858		4,139		4,301		(211	)		(6	)		(877	)		(20	)
Home equity lines of credit		15,423		15,558		15,618		15,523		15,667		(135	)		(1	)		(244	)		(2	)
Home equity loans serviced by others¹		1,228		1,290		1,358		1,427		1,492		(62	)		(5	)		(264	)		(18	)
Home equity lines of credit serviced by others¹		550		580		614		648		679		(30	)		(5	)		(129	)		(19	)
Automobile		12,706		12,080		10,974		9,981		9,397		626			5			3,309			35
Student		2,256		2,069		1,941		2,305		2,208		187			9			48			2
Credit card		1,693		1,676		1,646		1,651		1,691		17			1			2			—
Other retail		1,072		1,126		1,206		1,235		1,303		(54	)		(5	)		(231	)		(18	)

Total retail		50,184		49,279		47,855		47,008		46,464		905			2			3,720			8

Total loans and leases		93,410		90,749		88,829		87,083		85,859		2,661			3			7,551			9

Derivative receivable - commercial		622		542		627		621		647		80			15			(25	)		(4	)
Derivative receivable - retail		7		5		8		5		3		2			40			4			133

Total derivative receivable		629		547		635		626		650		82			15			(21	)		(3	)

Total credit-related assets		94,039		91,296		89,464		87,709		86,509		2,743			3			7,530			9

Undrawn commitments to extend credit - commercial		29,646		29,182		28,236		27,522		27,617		464			2			2,029			7
Financial standby letters of credit		2,315		2,498		2,622		2,646		2,556		(183	)		(7	)		(241	)		(9	)
Performance letters of credit		65		94		118		135		149		(29	)		(31	)		(84	)		(56	)
Commercial letters of credit		75		74		56		61		64		1			1			11			17
Marketing rights		51		51		51		51		54		—			—			(3	)		(6	)
Risk participation agreements		19		16		20		16		17		3			19			2			12

Total commercial lending-related arrangements		32,171		31,915		31,103		30,431		30,457		256			1			1,714			6
Undrawn commitments to extend credit - retail		26,253		26,151		26,117		26,536		26,370		102			—			(117	)		—
Residential mortgage loans sold with recourse		11		11		12		13		13		—			—			(2	)		(15	)

Total retail lending-related arrangements		26,264		26,162		26,129		26,549		26,383		102			—			(119	)		—

Total lending-related arrangements		58,435		58,077		57,232		56,980		56,840		358			1			1,595			3

Total credit exposure	$	152,474	$	149,373	$	146,696	$	144,689	$	143,349	$	3,101			2		$	9,125			6

Memo: Total credit exposure by product category
Commercial exposure	$	76,019	$	73,927	$	72,704	$	71,127	$	70,499	$	2,092			3	%	$	5,520			8	%
Retail exposure		76,455		75,446		73,992		73,562		72,850		1,009			1			3,605			5

Total credit exposure	$	152,474	$	149,373	$	146,696	$	144,689	$	143,349	$	3,101			2		$	9,125			6

¹	Our SBO portfolio consists of loans 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															DECEMBER 31, 2014 CHANGE
	Dec 31, 2014			Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2014						Dec 31, 2013
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	81		$	93		$	63		$	73		$	96		($	12	)		(13	)%	($	15	)		(16	)%
Commercial real estate		83			83			130			155			169			—			—			(86	)		(51	)
Leases		—			—			2			2			—			—			—			—			—

Total commercial		164			176			195			230			265			(12	)		(7	)		(101	)		(38	)
Residential mortgages		345			351			346			360			382			(6	)		(2	)		(37	)		(10	)
Home equity loans		203			201			231			267			266			2			1			(63	)		(24	)
Home equity lines of credit		257			218			299			346			333			39			18			(76	)		(23	)
Home equity loans serviced by others²		47			52			51			56			59			(5	)		(10	)		(12	)		(20	)
Home equity lines of credit serviced by others²		25			29			29			31			30			(4	)		(14	)		(5	)		(17	)
Automobile		21			17			12			15			16			4			24			5			31
Student		17			14			12			30			34			3			21			(17	)		(50	)
Credit card		17			16			19			20			21			1			6			(4	)		(19	)
Other retail		5			5			6			8			10			—			—			(5	)		(50	)

Total retail		937			903			1,005			1,133			1,151			34			4			(214	)		(19	)

Nonperforming loans and leases¹		1,101			1,079			1,200			1,363			1,416			22			2			(315	)		(22	)


Commercial		3			3			4			4			10			—			—			(7	)		(70	)
Retail		39			39			37			41			40			—			—			(1	)		(3	)

Other real estate owned		42			42			41			45			50			—			—			(8	)		(16	)

Nonperforming assets	$	1,143		$	1,121		$	1,241		$	1,408		$	1,466		$	22			2		($	323	)		(22	)


NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	167		$	179		$	199		$	234		$	275		($	12	)		(7	)%	($	108	)		(39	)%
Retail		976			942			1,042			1,174			1,191			34			4			(215	)		(18	)

Nonperforming assets	$	1,143		$	1,121		$	1,241		$	1,408		$	1,466		$	22			2		($	323	)		(22	)

ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.28	%		1.32	%		1.36	%		1.45	%		1.42	%		(4) bps			—			(14) bps			—
Allowance for loan and lease losses to nonperforming loans and leases		108.51			111.30			100.84			92.34			86.17			(279) bps			—			2,234 bps			—
Nonperforming loans and leases to loans and leases		1.18			1.19			1.35			1.57			1.65			(1) bps			—			(47) bps			—
Nonperforming assets to total assets		0.86			0.85			0.95			1.11			1.20			1 bps			—			(34) bps			—

¹ MEMO:
Accruing loans past due 90 days or more included above	$	9		$	8		$	12		$	42		$	33		$	1			13	%	($	24	)		(73	)%

²	Our SBO portfolio consists of loans that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FULL YEAR
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
GROSS CHARGE-OFFS:
Commercial	($	9	)	($	11	)	($	6	)	($	5	)	($	29	)	$	2			18	%	$	20			69	%	($	31	)	($	72	)	$	41			57	%
Commercial real estate		(4	)		(5	)		(2	)		(1	)		(7	)		1			20			3			43			(12	)		(36	)		24			67
Leases		—			—			—			—			—			—			—			—			—			—			—			—			—

Total commercial		(13	)		(16	)		(8	)		(6	)		(36	)		3			19			23			64			(43	)		(108	)		65			60
Residential mortgages		(6	)		(10	)		(9	)		(11	)		(10	)		4			40			4			40			(36	)		(54	)		18			33
Home equity loans		(11	)		(16	)		(11	)		(17	)		(14	)		5			31			3			21			(55	)		(77	)		22			29
Home equity lines of credit		(16	)		(19	)		(21	)		(24	)		(23	)		3			16			7			30			(80	)		(102	)		22			22
Home equity loans serviced by others¹		(11	)		(14	)		(13	)		(17	)		(21	)		3			21			10			48			(55	)		(119	)		64			54
Home equity lines of credit serviced by others¹		(2	)		(3	)		(3	)		(4	)		(5	)		1			33			3			60			(12	)		(27	)		15			56
Automobile		(16	)		(9	)		(11	)		(5	)		(2	)		(7	)		(78	)		(14	)		(700	)		(41	)		(19	)		(22	)		(116	)
Student		(16	)		(12	)		(14	)		(12	)		(17	)		(4	)		(33	)		1			6			(54	)		(74	)		20			27
Credit card		(15	)		(15	)		(17	)		(17	)		(18	)		—			—			3			17			(64	)		(68	)		4			6
Other retail		(13	)		(15	)		(10	)		(15	)		(15	)		2			13			2			13			(53	)		(55	)		2			4

Total retail		(106	)		(113	)		(109	)		(122	)		(125	)		7			6			19			15			(450	)		(595	)		145			24

Total gross charge-offs	($	119	)	($	129	)	($	117	)	($	128	)	($	161	)	$	10			8		$	42			26		($	493	)	($	703	)	$	210			30

GROSS RECOVERIES:
Commercial	$	4		$	7		$	18		$	6		$	10		($	3	)		(43	)%	($	6	)		(60	)%	$	35		$	46		($	11	)		(24	)%
Commercial real estate		7			5			3			8			8			2			40			(1	)		(13	)		23			40			(17	)		(43	)
Leases		—			—			—			—			—			—			—			—			—			—			1			(1	)		(100	)

Total commercial		11			12			21			14			18			(1	)		(8	)		(7	)		(39	)		58			87			(29	)		(33	)
Residential mortgages		2			2			3			4			1			—			—			1			100			11			10			1			10
Home equity loans		5			9			4			6			6			(4	)		(44	)		(1	)		(17	)		24			26			(2	)		(8	)
Home equity lines of credit		3			5			3			4			9			(2	)		(40	)		(6	)		(67	)		15			19			(4	)		(21	)
Home equity loans serviced by others¹		6			6			4			5			6			—			—			—			—			21			23			(2	)		(9	)
Home equity lines of credit serviced by others¹		1			2			1			1			1			(1	)		(50	)		—			—			5			5			—			—
Automobile		6			4			8			2			—			2			50			6			—			20			12			8			67
Student		3			1			2			3			3			2			200			—			—			9			13			(4	)		(31	)
Credit card		2			—			3			2			2			2			—			—			—			7			7			—			—
Other retail		—			—			—			—			—			—			—			—			—			—			—			—			—

Total retail		28			29			28			27			28			(1	)		(3	)		—			—			112			115			(3	)		(3	)

Total gross recoveries	$	39		$	41		$	49		$	41		$	46		($	2	)		(5	)	($	7	)		(15	)	$	170		$	202		($	32	)		(16	)

NET (CHARGE-OFFS) RECOVERIES:
Commercial	($	5	)	($	4	)	$	12		$	1		($	19	)	($	1	)		(25	)%	$	14			74	%	$	4		($	26	)	$	30			115	%
Commercial real estate		3			—			1			7			1			3			—			2			200			11			4			7			175
Leases		—			—			—			—			—			—			—			—			—			—			1			(1	)		(100	)

Total commercial		(2	)		(4	)		13			8			(18	)		2			50			16			89			15			(21	)		36			171
Residential mortgages		(4	)		(8	)		(6	)		(7	)		(9	)		4			50			5			56			(25	)		(44	)		19			43
Home equity loans		(6	)		(7	)		(7	)		(11	)		(8	)		1			14			2			25			(31	)		(51	)		20			39
Home equity lines of credit		(13	)		(14	)		(18	)		(20	)		(14	)		1			7			1			7			(65	)		(83	)		18			22
Home equity loans serviced by others¹		(5	)		(8	)		(9	)		(12	)		(15	)		3			38			10			67			(34	)		(96	)		62			65
Home equity lines of credit serviced by others¹		(1	)		(1	)		(2	)		(3	)		(4	)		—			—			3			75			(7	)		(22	)		15			68
Automobile		(10	)		(5	)		(3	)		(3	)		(2	)		(5	)		(100	)		(8	)		(400	)		(21	)		(7	)		(14	)		(200	)
Student		(13	)		(11	)		(12	)		(9	)		(14	)		(2	)		(18	)		1			7			(45	)		(61	)		16			26
Credit card		(13	)		(15	)		(14	)		(15	)		(16	)		2			13			3			19			(57	)		(61	)		4			7
Other retail		(13	)		(15	)		(10	)		(15	)		(15	)		2			13			2			13			(53	)		(55	)		2			4

Total retail		(78	)		(84	)		(81	)		(95	)		(97	)		6			7			19			20			(338	)		(480	)		142			30

Total net (charge-offs) recoveries	($	80	)	($	88	)	($	68	)	($	87	)	($	115	)	$	8			9		$	35			30		($	323	)	($	501	)	$	178			36

¹	Our SBO portfolio consists of loans 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																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%
ANNUALIZED NET (CHARGE-OFF) RECOVERY RATES:
Commercial		(0.06	)%		(0.04	)%		0.15	%		0.02	%		(0.25	)%		2 bps			—			(19) bps			—			0.01	%		(0.09	)%		(10) bps			—
Commercial real estate		0.15			(0.06	)		0.06			0.43			0.02			(21) bps			—			(13) bps			—			0.14			0.06			(8) bps			—
Leases		—			—			0.03			—			0.01			— bps			—			1 bps			—			0.01			0.04			3 bps			—
Total commercial		(0.02	)		(0.04	)		0.12			0.09			(0.18	)		(2) bps			—			(16) bps			—			0.04			(0.06	)		(10) bps			—
Residential mortgages		(0.14	)		(0.27	)		(0.21	)		(0.32	)		(0.33	)		(13) bps			—			(19) bps			—			(0.23	)		(0.48	)		(25) bps			—
Home equity loans		(0.45	)		(0.79	)		(0.76	)		(1.04	)		(0.70	)		(34) bps			—			(25) bps			—			(0.77	)		(1.09	)		(32) bps			—
Home equity lines of credit		(0.34	)		(0.36	)		(0.45	)		(0.53	)		(0.38	)		(2) bps			—			(4) bps			—			(0.42	)		(0.52	)		(10) bps			—
Home equity loans serviced by others¹		(1.67	)		(2.43	)		(2.51	)		(3.32	)		(4.02	)		(76) bps			—			(235) bps			—			(2.51	)		(5.59	)		(308) bps			—
Home equity lines of credit serviced by others¹		(0.81	)		(1.18	)		(1.21	)		(1.60	)		(1.93	)		(37) bps			—			(112) bps			—			(1.22	)		(2.74	)		(152) bps			—
Automobile		(0.34	)		(0.21	)		(0.09	)		(0.12	)		(0.08	)		13 bps			—			26 bps			—			(0.20	)		(0.06	)		14 bps			—
Student		(2.36	)		(1.70	)		(2.14	)		(1.68	)		(2.54	)		66 bps			—			(18) bps			—			(1.98	)		(2.75	)		(77) bps			—
Credit card		(3.28	)		(3.33	)		(3.62	)		(3.72	)		(3.88	)		(5) bps			—			(60) bps			—			(3.49	)		(3.67	)		(18) bps			—
Other retail		(4.82	)		(5.24	)		(3.53	)		(4.90	)		(4.34	)		(42) bps			—			48 bps			—			(4.60	)		(3.90	)		70 bps			—
Total retail		(0.62	)		(0.68	)		(0.68	)		(0.84	)		(0.83	)		(6) bps			—			(21) bps			—			(0.70	)		(1.03	)		(33) bps			—

Total loans and leases		(0.35	)		(0.38	)		(0.31	)		(0.41	)		(0.53	)		(3) bps			—			(18) bps			—			(0.36	)		(0.59	)		(23) bps			—

Memo: Average loans:
Commercial		30,962		$	30,186		$	29,674		$	29,108		$	29,058		$	776			3	%	$	1,904			7	%		29,993		$	28,654		$	1,339			5	%
Commercial real estate		7,427			7,216			7,082			6,898			6,859			211			3			568			8			7,158			6,568			590			9
Leases		3,874			3,789			3,716			3,723			3,619			85			2			255			7			3,776			3,463			313			9

Total commercial		42,263			41,191			40,472			39,729			39,536			1,072			3			2,727			7			40,927			38,685			2,242			6
Residential mortgages		11,647			11,001			10,355			9,889			9,342			646			6			2,305			25			10,729			9,104			1,625			18
Home equity loans		3,527			3,743			4,015			4,231			4,364			(216	)		(6	)		(837	)		(19	)		3,877			4,606			(729	)		(16	)
Home equity lines of credit		15,490			15,572			15,563			15,590			16,109			(82	)		(1	)		(619	)		(4	)		15,552			16,337			(785	)		(5	)
Home equity loans serviced by others¹		1,252			1,317			1,388			1,454			1,519			(65	)		(5	)		(267	)		(18	)		1,352			1,724			(372	)		(22	)
Home equity lines of credit serviced by others¹		561			591			627			660			692			(30	)		(5	)		(131	)		(19	)		609			768			(159	)		(21	)
Automobile		12,403			11,438			10,528			9,408			9,007			965			8			3,396			38			11,011			8,857			2,154			24
Student		2,142			1,983			2,209			2,262			2,204			159			8			(62	)		(3	)		2,148			2,202			(54	)		(2	)
Credit card		1,663			1,661			1,647			1,639			1,702			2			—			(39	)		(2	)		1,651			1,669			(18	)		(1	)
Other retail		1,097			1,153			1,215			1,270			1,341			(56	)		(5	)		(244	)		(18	)		1,186			1,453			(267	)		(18	)

Total retail		49,782			48,459			47,547			46,403			46,280			1,323			3			3,502			8			48,115			46,720			1,395			3

Total loans and leases	$	92,045		$	89,650		$	88,019		$	86,132		$	85,816		$	2,395			3		$	6,229			7		$	89,042		$	85,405		$	3,637			4

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

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																$			%			$			%									$			%

Allowance for loan and lease losses - beginning	$	1,201		$	1,210		$	1,259		$	1,221		$	1,219		($	9	)		(1	)%	($	18	)		(1	%)	$	1,221		$	1,255		($	34	)		(3	)%
Charge-offs:
Commercial		(13	)		(16	)		(8	)		(6	)		(36	)		3			19			23			64			(43	)		(108	)		65			60
Retail		(106	)		(113	)		(109	)		(122	)		(125	)		7			6			19			15			(450	)		(595	)		145			24

Total charge-offs		(119	)		(129	)		(117	)		(128	)		(161	)		10			8			42			26			(493	)		(703	)		210			30
Recoveries:
Commercial		11			12			21			14			18			(1	)		(8	)		(7	)		(39	)		58			87			(29	)		(33	)
Retail		28			29			28			27			28			(1	)		(3	)		—			—			112			115			(3	)		(3	)

Total recoveries		39			41			49			41			46			(2	)		(5	)		(7	)		(15	)		170			202			(32	)		(16	)

Net charge-offs		(80	)		(88	)		(68	)		(87	)		(115	)		8			9			35			30			(323	)		(501	)		178			36
Provision for loan and lease losses:
Commercial		4			38			(32	)		21			32			(34	)		(89	)		(28	)		(88	)		31			(19	)		50			263
Retail		70			41			51			104			67			29			71			3			4			266			396			(130	)		(33	)
Unallocated		—			—			—			—			31			—			—			(31	)		(100	)		—			103			(103	)		(100	)

Total provision for loan and lease losses		74			79			19			125			130			(5	)		(6	)		(56	)		(43	)		297			480			(183	)		(38	)
Sale/Other		—			—			—			—			(13	)		—			—			13			100			—			(13	)		13			100

Allowance for loan and lease losses - ending	$	1,195		$	1,201		$	1,210		$	1,259		$	1,221		($	6	)		—		($	26	)		(2	)	$	1,195		$	1,221		($	26	)		(2	)


Reserve for unfunded lending commitments - beginning	$	63		$	65		$	35		$	39		$	37		($	2	)		(3	)%	$	26			70	%	$	39		$	40		($	1	)		(3	)%
Provision for unfunded lending commitments		(2	)		(2	)		30			(4	)		2			—			—			(4	)		(200	)		22			(1	)		23			2,300

Reserve for unfunded lending commitments - ending		61			63			65			35			39			(2	)		(3	)		22			56			61			39			22			56



Total allowance for credit losses - ending	$	1,256		$	1,264		$	1,275		$	1,294		$	1,260		($	8	)		(1	)%	($	4	)		—	%	$	1,256		$	1,260		($	4	)		—	%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	AS OF										DECEMBER 31, 2014 CHANGE
	Dec 31, 2014		Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2014						Dec 31, 2013
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	20	$	14	$	23	$	22	$	23	$	6			43	%	($	3	)		(13	)%
Formula-based evaluation		585		591		550		540		514		(6	)		(1	)		71			14

Total commercial		605		605		573		562		537		—			—			68			13

Individually evaluated		109		116		116		116		108		(7	)		(6	)		1			1
Formula-based evaluation		542		543		586		616		615		(1	)		—			(73	)		(12	)

Total retail		651		659		702		732		723		(8	)		(1	)		(72	)		(10	)

Total allowance for credit losses	$	1,256	$	1,264	$	1,275	$	1,294	$	1,260	($	8	)		(1	)	($	4	)		—

CAPITAL AND RATIOS

(dollars in millions, except ratios)


	AS OF															DECEMBER 31, 2014 CHANGE												FULL YEAR
																																		2014 Change
CAPITAL AND RATIOS	Dec 31, 2014			Sept 30, 2014			Jun 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2014						Dec 31, 2013						2014			2013			2013
																$			%			$			%									$			%
CAPITAL RATIOS AND COMPONENTS¹ (preliminary)
Tier 1 capital	$	13,173		$	13,330		$	13,448		$	13,460		$	13,301		($	157	)		(1	%)	($	128	)		(1	)%
Total capital		16,781			16,612			16,400			16,066			15,885			169			1			896			6
Tier 1 common capital²		13,173			13,330			13,448			13,460			13,301			(157	)		(1	)		(128	)		(1	)
Risk-weighted assets		105,964			103,207			101,397			100,368			98,634			2,757			3			7,330			7
Adjusted average assets³		124,539			122,521			121,276			118,075			114,422			2,018			2			10,117			9
Tier 1 capital ratio		12.4	%		12.9	%		13.3	%		13.4	%		13.5	%
Total capital ratio		15.8			16.1			16.2			16.0			16.1
Leverage ratio		10.6			10.9			11.1			11.4			11.6
Tier 1 common equity ratio²		12.4			12.9			13.3			13.4			13.5
Proforma Basel III common equity Tier 1 capital ratio⁴		12.1			12.5			13.0			13.1			13.1
TANGIBLE COMMON EQUITY (period-end):
Stockholders’ equity	$	19,268		$	19,383		$	19,597		$	19,442		$	19,196		($	115	)		(1	%)	$	72			—	%	$	19,268		$	19,196		$	72			—	%
Less: Goodwill		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		—			—			—			—			(6,876	)		(6,876	)		—			—
Less: Other intangible assets		(6	)		(6	)		(7	)		(7	)		(8	)		—			—			2			25			(6	)		(8	)		2			25
Add: Deferred tax liabilities⁵		420			399			384			366			350			21			5			70			20			420			350			70			20

Total tangible common equity⁶	$	12,806		$	12,900		$	13,098		$	12,925		$	12,662		($	94	)		(1	)	$	144			1		$	12,806		$	12,662		$	144			1

TANGIBLE COMMON EQUITY (average):
Stockholders’ equity	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		($	202	)		(1	%)	($	155	)		(1	)%	$	19,399		$	21,834		($	2,435	)		(11	)%
Less: Goodwill		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		—			—			—			—			(6,876	)		(9,063	)		2,187			24
Less: Other intangible assets		(6	)		(6	)		(7	)		(7	)		(8	)		—			—			2			25			(7	)		(9	)		2			22
Add: Deferred tax liabilities⁵		403			384			369			351			342			19			5			61			18			377			459			(82	)		(18	)

Total tangible common equity⁴	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		($	183	)		(1	)	($	92	)		(1	)	$	12,893		$	13,221		($	328	)		(2	)

INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876		$	6,876		$	—			—	%
Trademark & patent		6			6			7			7			8			—			—			(2	)		(25	)		6			8			(2	)		(25	)

Total intangible assets	$	6,882		$	6,882		$	6,883		$	6,883		$	6,884		$	—			—		($	2	)		—		$	6,882		$	6,884		($	2	)		—

¹	Capital ratios and associated components are prepared on a Basel I basis, except as noted.

²	Tier 1 common equity ratio is calculated as Tier 1 common capital divided by risk-weighted assets. Tier 1 common capital represents Tier 1 capital, excluding qualifying restricted core capital elements.

Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangibles assets, net of deferred tax liabilities related to tax deductible goodwill, and the accumulated other comprehensive income impact related to the adoption of post-retirement benefit plan guidance under GAAP.

⁴	This is a non-GAAP financial measure. For further information on these measures, refer to pages 29-35.

⁵	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

⁶	This is a non-GAAP financial measure.

PER-SHARE RELATED INFORMATION

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


	QUARTERLY TRENDS																											FULL YEAR
																4Q14 Change																		2014 Change
	4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
EARNINGS PER SHARE DATA																$			%			$			%									$			%
Basic earnings per share:
Net income (loss)	$	197		$	189		$	313		$	166		$	152		$	8			4	%	$	45			30	%	$	865		($	3,426	)	$	4,291			125	%
Less: Preferred stock dividends		—			—			—			—			—			—			—			—			—			—			—			—			—

Net income (loss) applicable to common stockholders	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			125

Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	217		$	202		$	205		$	166		$	169		$	15			7		$	48			28		$	790		$	671		$	119			18

Total weighted-average basic shares outstanding		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			(13,188,315	)		(2	)		(13,188,315	)		(2	)		556,674,146			559,998,324			(3,324,178	)		(1	)
Net income (loss) per share - basic	$	0.36		$	0.34		$	0.56		$	0.30		$	0.27		$	0.02			6		$	0.09			33		$	1.55		($	6.12	)	$	7.67			125
Net income per share, excluding restructuring charges and special items - basic¹	$	0.40		$	0.36		$	0.37		$	0.30		$	0.30		$	0.04			11		$	0.10			33		$	1.42		$	1.20		$	0.22			18
Diluted earnings per share:
Net income (loss) applicable to common stockholders	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865		($	3,426	)	$	4,291			125
Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	217		$	202		$	205		$	166		$	169		$	15			7		$	48			28		$	790		$	671		$	119			18
Total weighted-average basic shares outstanding		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			(13,188,315	)		(2	)		(13,188,315	)		(2	)		556,674,146			559,998,324			(3,324,178	)		(1	)
Add: Share-based awards		3,866,289			245,423			—			—			—			3,620,866			1,475			3,866,289			—			1,050,790			—			1,050,790			—

Total weighted-average diluted shares outstanding		550,676,298			560,243,747			559,998,324			559,998,324			559,998,324			(9,567,449	)		(2	)		(9,322,026	)		(2	)		557,724,936			559,998,324			(2,273,388	)		—
Net income (loss) per share - diluted	$	0.36		$	0.34		$	0.56		$	0.30		$	0.27		$	0.02			6		$	0.09			33		$	1.55		($	6.12	)	$	7.67			125
Net income per share, excluding restructuring charges and special items - diluted¹	$	0.39		$	0.36		$	0.37		$	0.30		$	0.30		$	0.03			8		$	0.09			30		$	1.42		$	1.20		$	0.22			18
COMMON SHARES OUTSTANDING
Common shares - at end of period		545,884,519			559,998,324			559,998,324			559,998,324			559,998,324			(14,113,805	)		(3	)%		(14,113,805	)		(3	)%		545,884,519			559,998,324			(14,113,805	)		(3	)%
Cash dividends declared and paid per share	$	0.10		$	0.68		$	0.61		$	0.04		$	0.67		($	0.58	)		(85	)	($	0.57	)		(85	)	$	1.43		$	2.12		($	0.69	)		(33	)
Book value per share	$	35.30		$	34.61		$	35.00		$	34.72		$	34.28			0.69			2			1.02			3			35.30			34.28			1.02			3
Tangible book value per share	$	23.46		$	23.04		$	23.39		$	23.08		$	22.61			0.42			2			0.85			4			23.46			22.61			0.85			4
Dividend payout ratio		28	%		203	%		110	%		15	%		246	%		(17,500) bps			—			(21,800) bps			—			92	%		(35	)%		12,700 bps			—
SHARE PRICE
High	$	25.60		$	23.57		$	—		$	—		$	—		$	2.03			9	%	$	25.60			—	%	$	25.60		$	—		$	25.60			—	%
Low		21.47			21.35			—			—			—			0.12			1			21.47			—			21.35			—			21.35			—
Close		24.86			23.42			—			—			—			1.44			6			24.86			—			24.86			—			24.86			—
Market Capitalization		13,571			13,115			—			—			—			456			3			13,571			—			13,571			—			13,571			—

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 29-35.

NON-GAAP MEASURES (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 goodwill impairment, restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Special items include regulatory expenses and expenses relating to our initial public offering.

The non-GAAP measures set forth below include “total revenue”, “noninterest income”, “ noninterest expense”, “pre-provision profit”, “income before income tax expense (benefit)”, “income tax expense (benefit)”, “net income (loss)”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software”, “other operating expense”, “net income (loss) per average common share”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “pro forma Basel III common equity tier 1 capital”, “return on average tangible common equity”, “return on average total tangible assets” and “efficiency ratio” 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 goodwill impairment, 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 goodwill impairment, 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																											FULL YEAR
																	4Q14 Change																		2014 Change
		4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																	$			%			$			%									$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	339		$	341		$	640		$	358		$	379		($	2	)		(1	)%	($	40	)		(11	)%	$	1,678		$	1,632		$	46			3	%
Less: Special items - Chicago gain			—			—			288			—			—			—			—			—			—			288			—			288			—

Noninterest income, excluding special items (non-GAAP)	B	$	339		$	341		$	352		$	358		$	379		($	2	)		(1	)	($	40	)		(11	)	$	1,390		$	1,632		($	242	)		(15	)

Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,179		$	1,161		$	1,473		$	1,166		$	1,158		$	18			2	%	$	21			2	%	$	4,979		$	4,690		$	289			6	%
Less: Special items - Chicago gain			—			—			288			—			—			—			—			—			—			288			—			288			—

Total revenue, excluding special items (non-GAAP)	D	$	1,179		$	1,161		$	1,185		$	1,166		$	1,158		$	18			2		$	21			2		$	4,691		$	4,690		$	1			—

Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	824		$	810		$	948		$	810		$	818		$	14			2	%	$	6			1	%	$	3,392		$	7,679		($	4,287	)		(56	)%
Less: Restructuring charges and special expense items	JJ		33			21			115			—			26			12			57			7			27			169			4,461			(4,292	)		(96	)

Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	791		$	789		$	833		$	810		$	792		$	2			—		($	1	)		—		$	3,223		$	3,218		$	5			—

Net income (loss), excluding restructuring charges and special items:
Net income (loss) (GAAP)	G	$	197		$	189		$	313		$	166		$	152		$	8			4	%	$	45			30	%	$	865		($	3,426	)	$	4,291			NM
Add: Restructuring charges and special items, net of income tax expense (benefit)			20			13			(108	)		—			17			7			(54	)		3			18			(75	)		4,097			(4,172	)		(102	)

Net income (loss), excluding restructuring charges and special items (non-GAAP)	H	$	217		$	202		$	205		$	166		$	169		$	15			7		$	48			28		$	790		$	671		$	119			18

Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		($	202	)		(1	)%	($	155	)		(1	)%	$	19,399		$	21,834		($	2,435	)		(11	)%
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	H/I		4.48	%		4.14	%		4.19	%		3.48	%		3.47	%		34 bps			—			101 bps			—			4.07	%		3.08	%		99 bps			—

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

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FULL YEAR
																	4Q14 Change																		2014 Change
		4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014			2013			2013
																	$			%			$			%									$			%
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,209		$	19,411		$	19,607		$	19,370		$	19,364		($	202	)		(1	)%	($	155	)		(1	)%	$	19,399		$	21,834		($	2,435	)		(11	)%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,063			(2,187	)		(24	)
Less: Average other intangibles (GAAP)			6			6			7			7			8			—			—			(2	)		(25	)		7			9			(2	)		(22	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			403			384			369			351			342			19			5			61			18			377			459			(82	)		(18	)

Average tangible common equity (non-GAAP)	J	$	12,730		$	12,913		$	13,093		$	12,838		$	12,822		($	183	)		(1	)	($	92	)		(1	)	$	12,893		$	13,221		($	328	)		(2	)

Return on average tangible common equity (non-GAAP)	G/J		6.12	%		5.81	%		9.59	%		5.24	%		4.71	%		31 bps			—			141 bps			—			6.71	%		(25.91	)%		3,262 bps			—
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	H/J		6.76	%		6.22	%		6.28	%		5.24	%		5.24	%		54 bps			—			152 bps			—			6.13	%		5.08	%		105 bps			—
Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2	%	$	10,278			9	%	$	127,624		$	120,866		$	6,758			6	%
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/K		0.66	%		0.62	%		0.65	%		0.54	%		0.56	%		4 bps			—			10 bps			—			0.62	%		0.56	%		6 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	$	130,671		$	128,691		$	127,148		$	123,904		$	120,393		$	1,980			2	%	$	10,278			9	%	$	127,624		$	120,866		$	6,758			6	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,063			(2,187	)		(24	)
Less: Average other intangibles (GAAP)			6			6			7			7			8			—			—			(2	)		(25	)		7			9			(2	)		(22	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			403			384			369			351			342			19			5			61			18			377			459			(82	)		(18	)

Average tangible assets (non-GAAP)	L	$	124,192		$	122,193		$	120,634		$	117,372		$	113,851		$	1,999			2		$	10,341			9		$	121,118		$	112,253		$	8,865			8

Return on average total tangible assets (non-GAAP)	G/L		0.63	%		0.61	%		1.04	%		0.57	%		0.53	%		2 bps			—			10 bps			—			0.71	%		(3.05	)%		376 bps			—
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/L		0.69	%		0.66	%		0.68	%		0.57	%		0.59	%		3 bps			—			10 bps			—			0.65	%		0.60	%		5 bps			—
Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	840		$	820		$	833		$	808		$	779		$	20			2	%	$	61			8	%	$	3,301		$	3,058		$	243			8	%
Add: Noninterest income (GAAP)			339			341			640			358			379			(2	)		(1	)		(40	)		(11	)		1,678			1,632			46			3

Total revenue (GAAP)	C	$	1,179		$	1,161		$	1,473		$	1,166		$	1,158		$	18			2		$	21			2		$	4,979		$	4,690		$	289			6

Efficiency ratio (non-GAAP)	E/C		69.88	%		69.84	%		64.33	%		69.43	%		70.62	%		4 bps			—			(74) bps			—			68.12	%		163.73	%		(9,561) bps			—
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		67.11	%		68.02	%		70.23	%		69.43	%		68.35	%		(91) bps			—			(124) bps			—			68.70	%		68.61	%		9 bps			—

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

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FULL YEAR
																	4Q14 Change																	2014 Change
		4Q14			3Q14			2Q14			1Q14			4Q13			3Q14						4Q13						2014		2013			2013
																	$			%			$			%								$			%
Net income (loss) per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	M		546,810,009			559,998,324			559,998,324			559,998,324			559,998,324			(13,188,315	)		(2	)%		(13,188,315	)		(2	)%		556,674,146		559,998,324			(3,324,178	)		(1	)%
Average common shares outstanding - diluted (GAAP)	N		550,676,298			560,243,747			559,998,324			559,998,324			559,998,324			(9,567,449	)		(2	)		(9,322,026	)		(2	)		557,724,936		559,998,324			(2,273,388	)		—
Net income (loss) applicable to common stockholders (GAAP)	O	$	197		$	189		$	313		$	166		$	152		$	8			4		$	45			30		$	865	($	3,426	)	$	4,291			125
Net income (loss) per average common share - basic (GAAP)	O/M		0.36			0.34			0.56			0.30			0.27			0.02			6			0.09			33			1.55		(6.12	)		7.67			125
Net income (loss) per average common share - diluted (GAAP)	O/N		0.36			0.34			0.56			0.30			0.27			0.02			6			0.09			33			1.55		(6.12	)		7.67			125
Net income (loss) applicable to common stockholders, excluding restructuring charges and special items (non-GAAP)	P		217			202			205			166			169			15			7			48			28			790		671			119			18
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	P/M		0.40			0.36			0.37			0.30			0.30			0.04			11			0.10			33			1.42		1.20			0.22			18
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	P/N		0.39			0.36			0.37			0.30			0.30			0.03			8			0.09			30			1.42		1.20			0.22			18
Pro forma Basel III common equity Tier 1 capital ratio:
Tier 1 common capital (regulatory)		$	13,173		$	13,330		$	13,448		$	13,460		$	13,301		($	157	)		(1	)%	($	128	)		(1	)%
Less: Change in DTA and other threshold deductions (GAAP)			(6	)		(5	)		(7	)		(7	)		6			(1	)		(20	)		(12	)		(200	)

Basel III common equity Tier 1 (non-GAAP)	Q	$	13,179		$	13,335		$	13,455		$	13,467		$	13,295		($	156	)		(1	)	($	116	)		(1	)

Risk-weighted assets (regulatory general risk weight approach)			105,964			103,207			101,397			100,368			98,634			2,757			3			7,330			7
Add: Net change in credit and other risk-weighted assets (regulatory)			2,882			3,207			2,383			2,450			2,687			(325	)		(10	)		195			7

Basel III standardized approach risk-weighted assets (non-GAAP)	R	$	108,846		$	106,414		$	103,780		$	102,818		$	101,321		$	2,432			2		$	7,525			7

Pro forma Basel III common equity Tier 1 capital ratio (non-GAAP)	Q/R		12.1	%		12.5	%		13.0	%		13.1	%		13.1	%
Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	S	$	397		$	409		$	467		$	405		$	391		($	12	)		(3	)%	$	6			2	%	$	1,678	$	1,652		$	26			2	%
Less: Restructuring charges and special items			1			—			43			—			5			1			—			(4	)		(80	)		44		5			39			780

Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	T	$	396		$	409		$	424		$	405		$	386		($	13	)		(3	)	$	10			3		$	1,634	$	1,647		($	13	)		(1	)

Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	U	$	106		$	106		$	125		$	83		$	101		$	—			—	%	$	5			5	%	$	420	$	360		$	60			17	%
Less: Restructuring charges and special items			18			19			41			—			—			(1	)		(5	)		18			—			78		—			78			—

Outside services, excluding restructuring charges and special items (non-GAAP)	V	$	88		$	87		$	84		$	83		$	101		$	1			1		($	13	)		(13	)	$	342	$	360		($	18	)		(5	)

Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	W	$	81		$	77		$	87		$	81		$	83		$	4			5	%	($	2	)		(2	)%	$	326	$	327		($	1	)		—	%
Less: Restructuring charges and special items			5			2			9			—			11			3			150			(6	)		(55	)		16		11			5			45

Occupancy, excluding restructuring charges and special items (non-GAAP)	X	$	76		$	75		$	78		$	81		$	72		$	1			1		$	4			6		$	310	$	316		($	6	)		(2	)

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

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																									FULL YEAR
															4Q14 Change																	2014 Change
		4Q14			3Q14			2Q14		1Q14		4Q13			3Q14						4Q13						2014		2013			2013
															$			%			$			%								$			%
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	Y	$	63		$	58		$	65	$	64	$	68		$	5			9	%	($	5	)		(7	)%	$	250	$	275		($	25	)		(9	)%
Less: Restructuring charges and special items			1			—			3		—		7			1			—			(6	)		(86	)		4		7			(3	)		(43	)

Equipment expense, excluding restructuring charges and special items (non-GAAP)	Z	$	62		$	58		$	62	$	64	$	61		$	4			7		$	1			2		$	246	$	268		($	22	)		(8	)

Amortization of software, excluding restructuring charges and special items:
Amortization of software	AA	$	43		$	38		$	33	$	31	$	32		$	5			13	%	$	11			34	%	$	145	$	102		$	43			42	%
Less: Restructuring charges and special items			6			—			—		—		—			6			—			6			—			6		—			6			—

Amortization of software, excluding restructuring charges and special items (non-GAAP)	BB	$	37		$	38		$	33	$	31	$	32		($	1	)		(3	)	$	5			16		$	139	$	102		$	37			36

Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	CC	$	134		$	122		$	171	$	146	$	143		$	12			10	%	($	9	)		(6	)%	$	573	$	528		$	45			9	%
Less: Restructuring charges and special items			2			—			19		—		3			2			—			(1	)		(33	)		21		3			18			600

Other operating expense, excluding restructuring charges and special items (non-GAAP)	DD	$	132		$	122		$	152	$	146	$	140		$	10			8		($	8	)		(6	)	$	552	$	525		$	27			5

Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,179		$	1,161		$	1,185	$	1,166	$	1,158		$	18			2	%	$	21			2	%	$	4,691	$	4,690		$	1			—	%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		791			789			833		810		792			2			—			(1	)		—			3,223		3,218			5			—

Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	EE	$	388		$	372		$	352	$	356	$	366		$	16			4		$	22			6		$	1,468	$	1,472		($	4	)		—

Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (benefit) (GAAP)	FF	$	283		$	274		$	476	$	235	$	208		$	9			3	%	$	75			36	%	$	1,268	($	3,468	)	$	4,736			NM
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			(33	)		(21	)		173		—		(26	)		(12	)		57			(7	)		27			119		(4,461	)		4,580			103

Income before income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	GG	$	316		$	295		$	303	$	235	$	234		$	21			7		$	82			35		$	1,149	$	993		$	156			(16	)

Income tax expense (benefit), excluding restructuring charges and special items:
Income tax expense (benefit) (GAAP)	HH	$	86		$	85		$	163	$	69	$	56		$	1			1	%	$	30			54	%	$	403	($	42	)	$	445			NM
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			(13	)		(8	)		65		—		(9	)		(5	)		63			(4	)		44			44		(364	)		408			112

Income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	II	$	99		$	93		$	98	$	69	$	65		$	6			6		$	34			52		$	359	$	322		$	37			11

Restructuring charges and special expense items include:
Goodwill impairment		$	—		$	—		$	—	$	—	$	—		$	—			—	%	$	—			—	%	$	—	$	4,435		($	4,435	)		(100	)%
Restructuring charges			10			1			103		—		26			9			900			(16	)		(62	)		114		26			88			338
Special items			23			20			12		—		—			3			15			23			—			55		—			55			—

Restructuring charges and special expense items	JJ	$	33		$	21		$	115	$	—	$	26		$	12			57		$	7			27		$	169	$	4,461		($	4,292	)		(96	)

NON-GAAP MEASURES - SEGMENTS

(dollars in millions)


		Three Months Ended December 31,											Three Months Ended September 30,												Three Months Ended June 30,
		2014											2014												2014
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income (loss) (GAAP)	A	$	52		$	140		$	5	$	197		$	54		$	139		($	4	)	$	189		$	44		$	141		$	128	$	313
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,756		$	4,334		$	10,119	$	19,209		$	4,685		$	4,205		$	10,521		$	19,411		$	4,640		$	4,129		$	10,838	$	19,607
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			6		6			—			—			6			6			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403		403			—			—			384			384			—			—			369		369

Average tangible common equity (non-GAAP)	C	$	4,756		$	4,334		$	3,640	$	12,730		$	4,685		$	4,205		$	4,023		$	12,913		$	4,640		$	4,129		$	4,324	$	13,093

Return on average tangible common equity (non-GAAP)	A/C		4.30	%		12.76	%		NM		6.12	%		4.57	%		13.10	%		NM			5.81	%		3.87	%		13.78	%		NM		9.59	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	50,546		$	40,061		$	40,064	$	130,671		$	49,012		$	38,854		$	40,825		$	128,691		$	48,556		$	38,022		$	40,570	$	127,148
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			6		6			—			—			6			6			—			—			7		7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			403		403			—			—			384			384			—			—			369		369

Average tangible assets (non-GAAP)	E	$	50,546		$	40,061		$	33,585	$	124,192		$	49,012		$	38,854		$	34,327		$	122,193		$	48,556		$	38,022		$	34,056	$	120,634

Return on average total tangible assets (non-GAAP)	A/E		0.40	%		1.38	%		NM		0.63	%		0.44	%		1.42	%		NM			0.61	%		0.37	%		1.50	%		NM		1.04	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	611		$	180		$	33	$	824		$	609		$	162		$	39		$	810		$	655		$	157		$	136	$	948
Net interest income (GAAP)			536			283			21		840			532			270			18			820			546			264			23		833
Noninterest income (GAAP)			218			111			10		339			226			104			11			341			236			107			297		640

Total revenue	G	$	754		$	394		$	31	$	1,179		$	758		$	374		$	29		$	1,161		$	782		$	371		$	320	$	1,473

Efficiency ratio (non-GAAP)	F/G		81.09	%		45.48	%		NM		69.88	%		80.42	%		43.35	%		NM			69.84	%		83.61	%		42.36	%		NM		64.33	%

NON-GAAP MEASURES - SEGMENTS (CONTINUED)

(dollars in millions)


		Three Months Ended March 31,												Three Months Ended December 31,
		2014												2013
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	32		$	141		($	7	)	$	166		$	50		$	123		($	21	)	$	152
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,568		$	4,023		$	10,779		$	19,370		$	4,448		$	3,978		$	10,938		$	19,364
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			7			7			—			—			8			8
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			351			351			—			—			342			342

Average tangible common equity (non-GAAP)	C	$	4,568		$	4,023		$	4,247		$	12,838		$	4,448		$	3,978		$	4,396		$	12,822

Return on average tangible common equity (non-GAAP)	A/C		2.81	%		14.17	%		NM			5.24	%		4.40	%		12.10	%		NM			4.71	%
Return on average total tangible assets
Average total assets (GAAP)	D	$	47,610		$	36,955		$	39,339		$	123,904		$	46,225		$	36,094		$	38,074		$	120,393
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			7			7			—			—			8			8
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			351			351			—			—			342			342

Average tangible assets (non-GAAP)	E	$	47,610		$	36,955		$	32,807		$	117,372		$	46,225		$	36,094		$	31,532		$	113,851

Return on average total tangible assets (non-GAAP)	A/E		0.27	%		1.54	%		NM			0.57	%		0.42	%		1.33	%		NM			0.53	%
Efficiency ratio
Noninterest expense (GAAP)	F	$	638		$	153		$	19		$	810		$	638		$	164		$	16		$	818
Net interest income (GAAP)			537			256			15			808			543			260			(24	)		779
Noninterest income (GAAP)			219			107			32			358			235			105			39			379

Total revenue	G	$	756		$	363		$	47		$	1,166		$	778		$	365		$	15		$	1,158

Efficiency ratio (non-GAAP)	F/G		84.39	%		42.13	%		NM			69.43	%		81.84	%		44.73	%		NM			70.62	%

NON-GAAP MEASURES - SEGMENTS (CONTINUED)

(dollars in millions)


		FULL YEAR
		2014											2013
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	182		$	561		$	122	$	865		$	242		$	514		($	4,182	)	($	3,426	)
Return on average tangible common equity
Average common equity (GAAP)	B	$	4,665		$	4,174		$	10,560	$	19,399		$	4,395		$	3,897		$	13,542		$	21,834
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			9,063			9,063
Average other intangibles (GAAP)			—			—			7		7			—			—			9			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			377		377			—			—			459			459

Average tangible common equity (non-GAAP)	C	$	4,665		$	4,174		$	4,054	$	12,893		$	4,395		$	3,897		$	4,929		$	13,221

Return on average tangible common equity (non-GAAP)	A/C		3.90	%		13.43	%		NM		6.71	%		5.48	%		13.20	%		NM			(25.91	)%
Return on average total tangible assets
Average total assets (GAAP)	D	$	48,939		$	38,483		$	40,202	$	127,624		$	46,465		$	35,229		$	39,172		$	120,866
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			9,063			9,063
Average other intangibles (GAAP)			—			—			7		7			—			—			9			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			377		377			—			—			459			459

Average tangible assets (non-GAAP)	E	$	48,939		$	38,483		$	33,696	$	121,118		$	46,465		$	35,229		$	30,559		$	112,253

Return on average total tangible assets (non-GAAP)	A/E		0.37	%		1.46	%		NM		0.71	%		0.52	%		1.46	%		NM			(3.05	)%
Efficiency ratio
Noninterest expense (GAAP)	F	$	2,513		$	652		$	227	$	3,392		$	2,522		$	635		$	4,522		$	7,679
Net interest income (GAAP)			2,151			1,073			77		3,301			2,176			1,031			(149	)		3,058
Noninterest income (GAAP)			899			429			350		1,678			1,025			389			218			1,632

Total revenue	G	$	3,050		$	1,502		$	427	$	4,979		$	3,201		$	1,420		$	69		$	4,690

Efficiency ratio (non-GAAP)	F/G		82.39	%		43.37	%		NM		68.12	%		78.76	%		44.66	%		NM			163.73	%

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 resulting from litigation and regulatory investigations;

•

our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

•

the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

•

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

•

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

•

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

•

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

•

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

•

any failure by us to successfully replicate or replace certain functions, systems and infrastructure provided by The Royal Bank of Scotland Group plc (RBS Group).

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends will depend on our financial condition, earnings, cash needs, regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends. In addition, the timing and manner of the sale of RBS Group’s remaining ownership of our common stock remains uncertain, and we have no control over the manner in which RBS Group may seek to divest such remaining shares. Any such sale would impact the price of our shares of common stock.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission and declared effective on September 23, 2014.

CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - January 26, 2015

Attached files

CITIZENS FINANCIAL GROUP INC/RI Reports