Citizens Financial Group, Inc. Announces Key Aspects of 2022 Capital Plan

PROVIDENCE, RI–(BUSINESS WIRE)–Citizens Financial Group, Inc. (NYSE: CFG or the “Company”) today announces key aspects of its 2022 investment plan (the “Plan”), which includes increasing the repurchase of common shares of the Company at $1.0 billion.

The Company’s announcement follows the June 23, 2022 release by the Board of Governors of the Federal Reserve (the “Federal Reserve”) of the results of its DFAST stress tests and the communication to citizens of its Stress Capital Buffer. (“SCB”) Preliminary. by 3.4%, effective October 1, 2022. Citizens has concluded that its proposed capital distributions under the Plan will meet this preliminary SCB requirement in the relevant quarters.

Specifically, Citizens is announcing today that its board of directors has increased the common stock repurchase authorization to $1.0 billion, representing an increase of $545 million from the $455 million of remaining capacity under the previous authorization of $750 million from January 2021. In addition, the Citizens Board will consider an increase to the company’s quarterly common stock dividend for the third quarter of 2022.

“We are pleased that the Federal Reserve’s stress test results illustrate Citizens’ strong capital position and the resilience of our balance sheet and business model,” said John F. Woods, vice president and chief financial officer.

The Company will assess potential changes to its capital distributions over the planning horizon if conditions warrant. Repurchases of Citizens’ common stock may be executed in the open market or in privately negotiated transactions, including under Rule 10b5-1 plans and accelerated stock repurchase and other structured transactions . Common stock dividends are subject to review and approval by the Citizens Board of Directors. The exact timing and amount of common stock repurchases and common stock dividends will be subject to a variety of factors, including the company’s capital position, financial performance, capital impacts of strategic initiatives, market conditions , obtaining required regulatory approvals and other regulatory considerations.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $192.1 billion in assets as of March 31, 2022. Based in Providence, Rhode Island, Citizens offers a wide range of retail and commercial banking products and services for individuals, small businesses, ETIs, large corporations and institutions. Citizens helps its clients reach their potential by listening to them and understanding their needs in order to offer advice, ideas and tailor-made solutions. In Consumer Banking, Citizens offers an integrated experience that includes mobile and online banking, a full-service customer contact center, and the convenience of approximately 3,300 ATMs and approximately 1,200 branches in 14 states and the district. of Columbia. Consumer Banking’s products and services include a full suite of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a wide range of financial products and solutions, including lending and leasing services, deposit and cash management services, foreign exchange risk management solutions, interest rates and commodities, as well as loan syndication, corporate finance, mergers and acquisitions, and debt and equity markets capabilities. More information is available at www.citizensbank.com or visit us on Twitter, LinkedIn Where Facebook.

Forward-looking statements

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding possible future stock repurchases and future dividends as well as the potential effects of the disruption of COVID-19 and the invasion of Ukraine by Russia on our business, operations, financial performance and prospects, are forward-looking statements. In addition, 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”, “direction” or similar expressions or future conditional verbs such as “may”, “will”, “should”, “would” and “could”.

Forward-looking statements are based on management’s current beliefs and expectations, as well as information currently available to management. Our statements speak as of the date hereof, and we undertake no obligation to update such statements or to update why actual results may differ from those contained in such statements in light of new information or changes. future events. We therefore advise you not to rely on any of these forward-looking statements. They are neither statements of historical facts nor guarantees or assurances of future performance. Although there is no guarantee 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, not limited to:

  • Adverse economic and political conditions which adversely affect the general economy, real estate prices, the labor market, consumer confidence and consumption patterns which may affect, among other things, the level of unaccounted for assets, write-offs and provision charges;

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

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

  • The disruption of COVID-19 and its effects on the economic and business environments in which we operate;

  • The impact of Russia’s invasion of Ukraine and the imposition of sanctions on Russia and other actions in response, including on economic and market conditions, inflationary pressures and the rate environment interest rates, commodity price and currency exchange rate volatility, and heightened cybersecurity risks;

  • Our ability to meet increased surveillance requirements and expectations;

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

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

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

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

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

  • financial services reform and any other current, pending or future legislation or regulation that could adversely affect our revenues and business;

  • A failure 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;

  • Higher than expected costs or other difficulties in integrating our business with that of Investors and relevant HSBC branches;

  • The inability to retain existing investors or HSBC customers and employees following the closing of the Investors acquisition and the HSBC transaction; and

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

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or stock repurchases will be subject to various factors, including our capital position, financial performance, based on risk, the capital impacts of strategic initiatives. , market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a decision. Accordingly, there can be no assurance that we will repurchase shares or pay dividends to holders of our common stock, or as to the amount of such repurchases or dividends. In addition, statements regarding the effects of the COVID-19 disruption and Russia’s invasion of Ukraine on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to risk. that actual impacts may differ, possibly materially, from what is reflected in such forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the extent and the duration of the pandemic and Russia’s invasion of Ukraine, actions taken by government authorities in response to the pandemic and Russia’s invasion of Ukraine, and the direct and indirect impact of the pandemic and Russia’s invasion of Ukraine on our customers, third parties and ourselves.

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

CFG-IR

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