In short. In its 2025 annual report, Citizens Financial Group Inc mentions AI in 4 passages. It says it is using AI now, for employee productivity. It lists AI as a risk, but the report does not say how AI is controlled.
In the 2025 annual reportThe yearly report a listed company files with the SEC, called a 10-K. It describes the business, its risks and its results.
Mentions AI
Yes
4 passages
Highest detail levelHow specific a passage is about AI at this bank. General: could be in any bank's report. Names an area: says where AI is used or how it is controlled. Concrete example: names a tool or vendor, gives a number, a date or a result.
Names an area
What it says
Using AI now; Sees AI as a risk
Kinds of AI named
Process automation, Generative AI
How AI is controlled
Not described
AI in its annual reports over time
What this shows
How many passages about AI each annual report contains, 2022 to 2025, by what they say.
What it means
1 passage in 2022, 4 passages in 2025.
How to read it
Each bar is a report year, split by what the passages say. Hover or tap a bar for the count.
Where it comes from
Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
Passages about AI in Citizens Financial Group Inc's annual reports, by report year.Show as a table
Report year
Using or planning AI
Explains how AI is controlled
Sees AI as a risk
Other mentions
2022
2022
2022
2022
2023
2023
2023
2023
2024
2024
2024
2024
2025
2025
2025
2025
Compared with banks of its size
What this shows
This bank's 2025 annual report next to all 43 banks of its size ($50B and above).
What it means
Its most specific passage is "Names an area"; for banks of its size the typical level is "Names an area".
How to read it
Yes or no for this bank; the share of banks of the same size for comparison.
Where it comes from
Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
In the 2025 report
This bank
Banks of its size
Using AI now
Yes
12 of 43 (28%)
Explains how AI is controlled
No
30 of 43 (70%)
Sees AI as a risk
Yes
43 of 43 (100%)
Mentions generative AI
Yes
33 of 43 (77%)
Mentions AI agents
No
10 of 43 (23%)
What changed from 2024
1 passage new in the 2025 report, 2 passages from the 2024 report no longer there.
Every passage about AI
What this shows
All 12 passages about AI in this bank's annual reports, quarterly reports and earnings materials since 2023, newest first.
What it means
2 passages say the bank is using AI now.
How to read it
Highlighted words are the terms that matched. Labels show what each passage says. Follow the link to read it in the filing.
Where it comes from
Banks' annual reports (10-K), quarterly reports (10-Q) and earnings materials (8-K) filed with the SEC. How we did this
Annual report, report year 2025 filed 12 Feb 2026
Continuous learning and a growth mindset are essential for colleagues to thrive as part of our organization and to feel a sense of accomplishment and purpose. With the launch of Talent Matters in 2024, colleagues now have access to a talent marketplace that creates personalized experiences to support skill-building and career advancement. In 2025, we launched a new learning operating model that creates a more streamlined learner experience and expands learning solutions across the enterprise. By leveraging artificial intelligence and advanced learning platforms we are accelerating personalized learning and building capacity for skill development. This approach supports our recently expanded educational assistance and robust academy programs, creating learning pathways for critical and emerging skills.
Using AI nowDetail: Names an areaEmployee productivityNew this year
Technology within the financial services industry continues to evolve and new, unexpected technological changes, including those related to artificial intelligence, could have a transformative effect on the way banks offer products and services. We believe our success depends, to a great extent, on our ability to utilize technology to offer products and services that address the needs of our customers and to create efficiencies in our operations. However, we may not be able to, among other things, keep up with the rapid pace of technological changes, effectively implement new technology-driven products and services, or be successful in marketing these products and services to our customers. As a result, our ability to compete effectively to attract or retain business may be impaired, and our business, financial condition, or results of operations may be adversely affected.
Evolving technologies, including the introduction of Generative Artificial Intelligence and Large Language Models, and the increased sophistication and activities of organized crime, hackers, terrorists, nation-states, activists, and other external parties present a significant information security risk to large financial institutions such as us. Third parties with whom we or our customers do business also present operational and information security risks to us, including security breaches or failures of their own systems. Risks related to cyberattacks on our vendors and other third parties, including supply chain attacks affecting our software and information technology service providers, are on the rise as such attacks become more frequent and severe. Employee error, failure to follow security procedures, or malfeasance also present these risks. Our operations rely on the secure processing, transmission, and storage of confidential information in our computer systems and networks as well as in the third-party computer systems and networks used to provide products and services on our behalf. Although we believe that we have appropriate information security procedures and controls based on our adherence to applicable laws and regulations and industry standards, our technologies, systems, and networks may be the target of cyberattacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, theft, sale, or loss or destruction of the confidential and/or proprietary information of CFG, and our customers, vendors, counterparties, or employees. We and our third-party vendors are under continuous threat of loss or network degradation due to cyberattacks, such as computer viruses, malicious or destructive code, phishing attacks, ransomware, and Distributed Denial of Service attacks (collectively, “fraudulent schemes”). Also, our customers are routinely the target of fraudulent schemes as we continue to expand customer capabilities to utilize the Internet and other remote channels to transact business. Two of the most significant cyberattack risks that we face as a result of these fraudulent schemes are potential loss of funds resulting from customers falling victim to cybercriminal communications directed to them or unauthorized access to sensitive customer data. Cybercriminals can use fraudulent schemes directly targeting our customers or our own systems to compromise and directly extract funds from a customer’s account or access sensitive customer data. Certain technology protections such as Customer Profiling and Step-Up Authentications have been implemented, but there can be no assurance that these protections will be effective.
Sees AI as a riskDetail: GeneralGenerative AISame as last year
With respect to non-banking financial institutions, technology and other changes have lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks. For example, consumers can maintain funds that would have historically been held as bank deposits in brokerage accounts or mutual funds and can also complete transactions such as paying bills and/or transferring funds directly without the assistance of banks. In addition, the emergence, adoption, and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchain, as well as advances in automation, artificial intelligence, and robotics, could significantly affect the competition for financial services. The process of eliminating banks as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits. Some of our non-bank competitors are not subject to the same regulations that we are and, therefore, may have greater flexibility in competing for business. As a result of these and other sources of competition, we could lose business to competitors or be forced to price products and services on less advantageous terms to retain or attract clients, either of which would adversely affect our profitability.
Sees AI as a riskDetail: GeneralProcess automationSame as last year
Build excellent capabilities designed to help us stand out from competitors: We strive to deliver seamless, omni-channel experiences that allow customers to interact with us when, where and how they choose. We are enhancing capabilities in key areas including technology, payments, data and analytics, private bank and wealth, collections and fraud, and digital (mobile/online banking and omni-channel servicing). We are on a multi-year digital transformation journey across our Consumer and Commercial organizations to digitize end-to-end customer experiences and transform our marketing to drive consumer-direct acquisition in order to satisfy rapidly changing customer preferences. We strive to use advanced data analytics and artificial intelligence for personalization and to provide timely, insight-driven, tailored advice in order to deliver solutions to consumer and commercial customers throughout their lifecycles.
General statement about AIDetail: Names an areaMachine learningMarketingCustomer service
Modernize our technology and operational models to improve delivery, organizational agility and speed to market: We are continuing to modernize our technology environment by strengthening our infrastructure and migrating applications to the cloud. We have deployed and scaled an agile operating model to improve our speed-to-market, deliver innovative products and services and strengthen collaboration across teams. We also continue to actively incubate new innovative ideas and harness external innovation through FinTech partnerships and access to venture capital firms to help deliver differentiated value-added experiences for our customers. We continue to experiment with and deploy transformative technologies like Machine Learning (ML) and Artificial Intelligence (AI/Gen AI) across our customer-facing businesses and functions to drive value-add impact and improved experiences for our colleagues and customers.
Using AI nowDetail: Names an areaMachine learningGenerative AICustomer serviceOperationsNew this year
Technology within the financial services industry continues to evolve and new, unexpected technological changes, including those related to artificial intelligence, could have a transformative effect on the way banks offer products and services. We believe our success depends, to a great extent, on our ability to utilize technology to offer products and services that address the needs of our customers and to create efficiencies in our operations. However, we may not be able to, among other things, keep up with the rapid pace of technological changes, effectively implement new technology-driven products and services, or be successful in marketing these products and services to our customers. As a result, our ability to compete effectively to attract or retain business may be impaired, and our business, financial condition or results of operations may be adversely affected.
Evolving technologies, including the introduction of Generative Artificial Intelligence and Large Language Models, and the increased sophistication and activities of organized crime, hackers, terrorists, nation-states, activists and other external parties present a significant information security risk to large financial institutions such as us. Third parties with whom we or our customers do business also present operational and information security risks to us, including security breaches or failures of their own systems. Risks related to cyber-attacks on our vendors and other third parties, including supply chain attacks affecting our software and information technology service providers, are on the rise as such attacks become more frequent and severe. Employee error, failure to follow security procedures, or malfeasance also present these risks. Our operations rely on the secure processing, transmission and storage of confidential information in our computer systems and networks as well as in the third-party computer systems and networks used to provide products and services on our behalf. Although we believe that we have appropriate information security procedures and controls based on our adherence to applicable laws and regulations and industry standards, our technologies, systems, and networks may be the target of cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, theft, sale or loss or destruction of the confidential and/or proprietary information of CFG, and our customers, vendors, counterparties, or employees. We and our third-party vendors are under continuous threat of loss or network degradation due to cyber-attacks, such as computer viruses, malicious or destructive code, phishing attacks, ransomware, and Distributed Denial of Service (“DDoS”) attacks (collectively, “fraudulent schemes”). Also, our customers are routinely the target of fraudulent schemes. This is especially true as we continue to expand customer capabilities to utilize the Internet and other remote channels to transact business. Two of the most significant cyber-attack risks that we face as a result of these fraudulent schemes are potential loss of funds resulting from customers falling victim to cybercriminal communications directed to them or unauthorized access to sensitive customer data. Cybercriminals can use fraudulent schemes directly targeting our customers or our own systems to compromise and directly extract funds from a customer’s account or access sensitive customer data. Certain technology protections such as Customer Profiling and Step-Up Authentications have been implemented, but there can be no assurance that these protections will be effective.
Sees AI as a riskDetail: GeneralGenerative AINew this year
With respect to non-banking financial institutions, technology and other changes have lowered barriers to entry and made it possible for non-banks to offer products and services traditionally provided by banks. For example, consumers can maintain funds that would have historically been held as bank deposits in brokerage accounts or mutual funds and can also complete transactions such as paying bills and/or transferring funds directly without the assistance of banks. In addition, the emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchain, as well as advances in automation, artificial intelligence and robotics, could significantly affect the competition for financial services. The process of eliminating banks as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits. Some of our non-bank competitors are not subject to the same extensive regulations we are and, therefore, may have greater flexibility in competing for business. As a result of these and other sources of competition, we could lose business to competitors or be forced to price products and services on less advantageous terms to retain or attract clients, either of which would adversely affect our profitability.
Sees AI as a riskDetail: GeneralProcess automation
Build excellent capabilities designed to help us stand out from competitors: We strive to deliver seamless, multi-channel experiences that allow customers to interact with us when, where and how they choose. We are enhancing capabilities in key areas including consumer lending, wealth, capital markets and payments. We are on a multi-year digital transformation journey across our Consumer and Commercial organizations to digitize end-to-end customer experiences and transform our marketing to drive consumer-direct acquisition in order to satisfy rapidly changing customer preferences. We strive to use advanced data analytics and artificial intelligence for personalization and to provide timely, insight-driven, tailored advice in order to deliver solutions to consumer and commercial customers throughout their lifecycles.
General statement about AIDetail: Names an areaMachine learningMarketingCustomer service
24 Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 2019- 2021 TOP 6 2022 TOP 7 2023 TOP 8 ~$200 VI. Transforming how we operate the bank and deliver for customers TOP program benefits TOP Update $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$115 Raised TOP 8 pre-tax run-rate benefit target to ~$115 million by YE2023 ■ TOP 8 underway and progressing well ■ In light of the environment, augmented the program and raised target benefit to ~$115 million from ~$100 million ■ Incremental efficiencies driven by: – Accelerated branch rationalization – Additional procurement opportunities ■ Planning underway for TOP 9; areas of opportunity include – Re-imagination of operations through process reengineering, automation and AI – Horizontal organizational simplification opportunities and rationalization of like functions – More ambitious procurement efficiencies – Improve customer journeys leveraging generative AI
Testing or planning AIDetail: Names an areaGenerative AIProcess automationOperationsCustomer serviceSame as last periodNew since the annual report
Build excellent capabilities designed to help us stand out from competitors: We strive to deliver seamless, multi-channel experiences that allow customers to interact with us when, where and how they choose. We are enhancing capabilities in key areas including consumer lending, wealth, capital markets and payments. We are on a multi-year digital transformation journey across our Consumer and Commercial organizations to digitize end-to-end customer experiences and transform our marketing to drive consumer-direct acquisition in order to satisfy rapidly changing customer preferences. We are accelerating the use of advanced data analytics and artificial intelligence for personalization and to provide timely, insight-driven, tailored advice in order to deliver solutions to consumer and business customers throughout their lifecycles.
Testing or planning AIDetail: Names an areaMarketingCustomer service
13 passages in legal noticesThe forward-looking statements notice at the start or end of a filing. It often lists AI among many risks. It is never counted., not counted
15 Reimagine the Bank progressing well ■ Expect minimal EPS impact in 2026 as start-up costs offset in-year benefits – ~$100 million pre-tax run-rate benefit by year-end 2026 ■ ~$200+ million pre-tax run-rate benefit by year-end 2027 ■ ~$450+ million pre-tax run-rate benefit by year-end 2028 Tracking well with original financial targets provided January 2026 Consumer Commercial Technology – AI pilot underway to enhance client prospecting, deal research, and pitch creation – Initiated re-architecture of back office with AI agents orchestrating E2E workflows to reduce manual tasks – Launched AI Case Classification for client inquiries, building a foundation for faster routing and case handling and improved analysis – AI solutions introduced to our Credit Card contact centers to help resolve client queries more efficiently – AI pilot underway to automatically log complaints and help improve root-cause analysis and colleague capacity – New digital tools rolled out to reduce friction for our customers joining the bank – Expect to improve engineering productivity by 10x based on early pilot; now deploying new software tools across engineering teams through 2026 – Progressing with rationalization and modernization of technology stack Corporate – Supplier negotiations continuing on plan; further agreements expected through 2H26 – Launched our first enterprise-wide AI-chat agent; initial focus to deliver HR content to colleagues with expanded use cases over time – Advanced property strategy to support a more efficient, future-ready operating model Vendors Property HR
15 Reimagine the Bank - Update ■ Leverage technology innovation to reshape how we serve customers and run the bank ■ Business model simplification to drive focus and deliver cost improvement ■ Tracking well towards targets provided in January ■ Expect minimal EPS impact in 2026 and ~$100 million pre-tax run-rate benefit by year-end 2026 Consumer Commercial Technology Vendor / Property Select examples of the early progress in 2026 with Reimagine the Bank initiatives – Incorporating LLM functionality into call center operations; targeting ~25% of calls to be handled without human interaction by YE2026; ~50% over time – Leveraging AI to redesign processes for handling customer complaints and address changes, driving improved customer experience – Early progress leveraging GenAI to automate credit research and portfolio monitoring of private companies – Early production release of a next-generation E2E loan processing platform, enhancing user experience and efficiencies – Pilots scheduled for 2Q based on work to establish AI- enabled software integration and deployment, and orchestrate agentic capabilities – ~80 applications identified for rationalization to simplify technology stack; 18 applications completed in 1Q – Negotiations with largest suppliers completed in 1Q; focus shifting to 2nd/3rd tier suppliers – Identified opportunities to consolidate real estate properties Reimagine the Bank is well underway; targeting ~$450 million pre-tax run-rate benefit by year-end 2028
18 Best-positioned Commercial Bank Delivering results Strong league table results Middle market bookrunner by volume for 2025(2) Sponsor #4 Overall #6 Revenue CAGR 2015 to 2025 Total Commercial Banking fees Record Capital Markets fees in 2025 Up 9% YoY Strong pipelines across M&A, debt and equity underwriting, and loan syndications ■ Multi-year investments in talent, capabilities, industry expertise to serve clients through their life cycle ■ Built out global markets, securities businesses, advisory and wealth capabilities ■ Expanded focus on a targeted group of key growth industry vertical sectors to offer a more dedicated and tailored approach for clients ■ Enhanced Treasury Solutions; delivering integrated payments platforms Focused on high-growth markets Fully-integrated client coverage Built a formidable full-service commercial bank ■ Expanded to a national focus; growing client base and continued expansion in high-potential geographies NYC Metro, Florida and California – Middle market loan growth up 37% YoY across these markets ■ Poised for additional upside in Capital Markets ■ Investing for growth opportunities in Commercial Payments ■ Developed full-service capabilities for private capital ■ Strong integrated coverage model serving middle market, mid-corporate and private capital ■ Collaborating with Private Bank/Private Wealth to deliver full product suite ■ Expanding leveraged finance and M&A opportunities across middle market, sponsor client base ■ Looking to leverage digitization and AI to unlock the next wave of efficiency and improve client experience Focused on middle market, mid-corporate, sponsor clients Best Bank for Treasury and Cash Management 2025; eighth consecutive year AMERICAN BANKER Innovation of the Year Award for our work in Open Banking and APIs 2015 2025 +9% 2025 Commercial Payments revenue Up 8%(1) 2025 Best New Embedded Finance Platform category See pages 41-43 for notes.
21 Call center consolidation with artificial agents ■ Leverage rapid advances in technology to reshape how we serve customers and how we run the bank – Deliver meaningful improvement in consumer CX/NPS – Drive a step-change improvement in productivity and efficiency ■ Business model simplification to drive focus and further cost improvements Reimagine the Bank - positioning Citizens to win long term 5 broad themes to Reimagine the Bank program across ~50 initiatives Modernizing technology delivery and stack Risk and analytics E2E customer operations redesign Customer-facing enhancements Business model simplification Call center volume Commercial loan manual processing Consumer customer attrition Vendor costs Engineering throughput 5x ~6-8% 10% 70-80% 50% (select initiatives below) Example outcomes Commercial digital onboarding Software development productivity with AI Simplification and modernization of tech stack Enhancement of fraud detection with AI Credit intelligence and decisioning Streamlining of KYC/AML processing AI Powered Banker Digital advisors Retail Network Transformation Vendor optimization Corporate facilities rationalization Consumer operations automation Efficiency Modernization of organization design Productivity Growth/Customer experience Time to onboard commercial clients 70%
17 Best-positioned Commercial Bank Delivering results Strong league table results Middle market bookrunner by volume 12 months ended September 30, 2025(3) Sponsor #4 Overall #8 Revenue CAGR 2015 to 2025 YTD(1) Total Commercial Banking fees 3Q25 - Second strongest Capital Markets quarter ever Up 58% QoQ, 77% YoY Strong pipelines across M&A, debt and equity underwriting, and loan syndications ■ Multi-year investments in talent, capabilities, industry expertise to serve clients through their life cycle ■ Built out global markets, securities businesses, advisory and wealth capabilities ■ Focused on key growth verticals, i.e., Digital infrastructure, Gaming, Industrials, and Transportation and Logistics ■ Enhanced Treasury Solutions; delivering integrated payments platforms Focused on high-growth markets Fully-integrated client coverage Built a formidable full-service corporate bank ■ Expanded to a national focus; growing client base and continued expansion in high-potential geographies NYC Metro, Florida and California – Middle market loan growth up 19% YoY across these markets ■ Poised for additional upside in Capital Markets ■ Investing for growth opportunities in Commercial Payments ■ Developed full-service capabilities for private capital ■ Strong integrated coverage model serving middle market, mid-corporate and private capital ■ Collaborating with Private Bank/Private Wealth to deliver full product suite ■ Expanding leveraged finance and M&A opportunities across middle market, sponsor client base ■ Looking to leverage digitization and AI to unlock the next wave of efficiency and improve client experience Focused on middle market, mid-corporate, sponsor clients Best Bank for Treasury and Cash Management 2025; eighth consecutive year AMERICAN BANKER Innovation of the Year Award for our work in Open Banking and APIs 2015 2025 YTD +9% See pages 31-32 for notes. Commercial Payments revenue up 7%(2) 3Q25 YTD vs 3Q24 YTD 2025 Best New Embedded Finance Platform category
20 Financial objectives Reimagine the Bank - Positioning Citizens to win long term Further upskilling AI/ ML talent Retail network optimization AI-driven pricing, credit, collections Hyper- personalized CX Agentic AI enabled Call Center Vendor simplification – Redesign E2E processes and customer journeys – Build Agentic AI infrastructure Redesign customer journeys AI-driven fraud, KYC and AML tools Automate operations Empowered bankers with AI- driven intelligence Corporate facilities optimization [Program benefits to fund ongoing transformation beginning in 2026] Modernizing our platforms by embracing technology innovation, simplifying the business model, and streamlining our cost base ■ Minimize impact of one-time costs and capital investments in 2026 by executing initiatives with faster payback ■ Deliver positive net benefits in 2027, accelerating in 2028 ■ Aspire to fully phased in run-rate benefits greater than TOP 6 ($400MM+) More details in January. What to expect: Leverage new technologies to further simplify and modernize operations and enhance customer experience Rationalize technology platforms, re-engineer and automate processes, simplify our business model Transformative investments • Deploy AI/agentic AI to improve customer experience, efficiency and decision making. Focus areas include: – Pricing and credit underwriting – KYC and AML – Fraud – Further automate operations; call center restructure – Technology development and resiliency – Enhanced analytics to improve client service and engagement • 100% in the cloud by YE2025; exit data centers and reduce number of business applications • Rationalize corporate facilities given shifting workforce dynamics • Further standardize, streamline and automate operational processes • Strategic restructure of vendor relationships • Reposition branch network for growth • Next-gen personalization
24 Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 '19-21 TOP 6 2022 TOP 7 2023 TOP 8 2024 TOP 9 2025 TOP 10 ~$200 TOP programs key to driving positive operating leverage Transforming how we operate and deliver for customers and colleagues TOP program revenue and efficiency benefits$s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$115 TOP 9 achieved pre-tax run-rate benefit of ~$150 million as of YE2024 TOP 10 targeting ~$100 million pre-tax run-rate benefit by YE2025 ~$150 Commentary ■ Maintain discipline on discretionary expense categories ■ TOP 10 areas of focus – Optimize procurement/vendor costs – Transform operations with process reengineering, automation and AI – Simplify organization structure – Further optimize branch network – Further invest in data analytics to enhance customer experience – Invest in Card analytics, products and digital experience ~$100* *Target.
19 Targeting ~1-1.5% growth in 2024 Underlying expense, a reduction of ~1.4% excluding the Private Bank impact Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 '19-21 TOP 6 2022 TOP 7 2023 TOP 8 2024 TOP 9 ~$200 TOP programs key to restoring positive operating leverage Transforming how we operate and deliver for customers and colleagues TOP program benefits $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$115 TOP 8 achieved pre-tax run-rate benefit of ~$115 million as of YE2023 TOP 9 targeting ~$135 million pre-tax run-rate benefit by YE2024 ~$135 TOP program/ expense management ■ Launched TOP 9; areas of focus include – Re-imagine operations with process reengineering, automation and AI – Simplify organization structure – Generate additional procurement efficiencies – Improve customer journeys utilizing generative AI – Exits of the Wholesale Mortgage and Auto businesses – Facilities rationalization ■ In addition, we are adjusting our expense base through further meaningful actions – ~650 headcount reduction in 4Q23 – Tightening on discretionary expense categories
11 ~$1.4B QoQ Enterprise-wide initiatives Balance sheet optimization TOP program/ expense management ■ Non-core portfolio of $12.3 billion at 9/30/23 – ~4.2% WA loan yield (~95% fixed rate); ~5.4% WA funding cost ■ Focusing on relationship-based lending with attractive risk- adjusted returns across core loan portfolio ■ TOP 8 tracking well to ~$115 million pre-tax run-rate benefit by YE2023 ■ TOP 9 in process of launch; areas of opportunity include – Re-imagine operations with process reengineering, automation and AI – Simplify organization structure – Generate additional procurement efficiencies – Improve customer journeys utilizing generative AI ■ Also executing on a broad cost reduction program $12.3 $11.3 $7.3 $4.7 $9.3 $8.5 $5.3 $3.0 $3.0 $2.8 $2.0 $1.7 Education and Other Retail (Purchased) Indirect Auto 3Q23 4Q23 4Q24 4Q25 ■ Targeting exit of all Citizens data centers by 2025 ■ We have made significant progress in our journey of migrating applications to the cloud and rationalizing/ retiring applications as part of our Next Gen Tech strategy ■ Planning core deposit system convergence through Modern Banking Platform ■ In third year of transformation to an agile delivery model, significantly improves speed and efficiency of tech delivery Technology update ■ Announced in September a $50 billion sustainable finance target by 2030, a key milestone in our ESG journey – Includes $5 billion to finance green initiatives – Plan to engage 100% of Oil and Gas clients by YE2024 on climate-related topics – Committing to achieve carbon neutrality by 2035 ESG update
17 Enterprise-wide initiatives Balance sheet optimization TOP program/ expense management ■ Non-core portfolio of $12.3 billion at 9/30/23 – ~4.2% WA loan yield (~95% fixed rate); ~5.4% WA funding cost ■ Focusing on relationship-based lending with attractive risk- adjusted returns across core loan portfolio ■ TOP 8 tracking well to ~$115 million pre-tax run-rate benefit by YE2023 ■ TOP 9 in process of launch; areas of opportunity include – Re-imagine operations with process reengineering, automation and AI – Simplify organization structure – Generate additional procurement efficiencies – Improve customer journeys utilizing generative AI ■ Targeting flat 2024 Underlying expenses through further meaningful actions $12.3 $11.3 $7.3 $4.7 $9.3 $8.5 $5.3 $3.0 $3.0 $2.8 $2.0 $1.7 Education and Other Retail (Purchased) Indirect Auto 3Q23 4Q23 4Q24 4Q25 ■ Targeting exit of all Citizens data centers by 2025 ■ We have made significant progress in our journey of migrating applications to the cloud and rationalizing/ retiring applications as part of our Next Gen Tech strategy ■ Planning core deposit system convergence through Modern Banking Platform ■ In third year of transformation to an agile delivery model, significantly improves speed and efficiency of tech delivery Technology update ■ Announced in September a $50 billion sustainable finance target by 2030, a key milestone in our ESG journey – Includes $5 billion to finance green initiatives – Plan to engage 100% of Oil and Gas clients by YE2024 on climate-related topics – Committing to achieve carbon neutrality by 2035 ESG update ~$1.4B QoQ
27 Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 2019- 2021 TOP 6 2022 TOP 7 2023 TOP 8 ~$200 VI. Transforming how we operate the bank and deliver for customers TOP program benefits TOP Update $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$115 Raised TOP 8 pre-tax run-rate benefit target to ~$115 million by YE2023 ■ TOP 8 underway and progressing well ■ In light of the environment, augmented the program and raised target benefit to ~$115 million from ~$100 million ■ Incremental efficiencies driven by: – Accelerated branch rationalization – Additional procurement opportunities ■ Planning underway for TOP 9; areas of opportunity include – Re-imagination of operations through process reengineering, automation and AI – Horizontal organizational simplification opportunities and rationalization of like functions – More ambitious procurement efficiencies – Improve customer journeys leveraging generative AI
13 ■ TOP 8 underway and progressing well ■ In light of the environment, looking for opportunities to augment the program ■ Further efficiencies under consideration: – Further simplification of operating models – Demand management procurement opportunities – Re-imagination of operations leveraging automation and AI – Migration of non-core operations activities to a managed services model ~$200 Transforming how we operate the bank and deliver for customers TOP program benefits TOP 8 program $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$100 TOP 8 targeting pre-tax run-rate benefit of ~$100 million by YE2023
22 ■ TOP 8 underway and progressing well ■ In light of the environment, looking for opportunities to augment the program ■ Further efficiencies under consideration: – Further simplification of operating models – Demand management procurement opportunities – Re-imagination of operations leveraging automation and AI – Migration of non-core operations activities to a managed services model Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 2019- 2021 TOP 6 2022 TOP 7 2023 TOP 8 ~$200 Transforming how we operate the bank and deliver for customers TOP program benefits TOP 8 program $s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$100 TOP 8 targeting pre-tax run-rate benefit of ~$100 million by YE2023