Citizens Financial Group Inc at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe the best place to start is I remember back, this is many years ago when Royal Bank of Scotland was about to spin out Citizens breakfast at the Barclays headquarter building. And it's just -- it's amazing the progress you've undertaken to transform the franchise and is one to where it is today. Just maybe update us in terms of how you're feeling about the current positioning?

Question: Jason Goldberg - Barclays Services Corp - Analyst : That's helpful. We're going to go up the first ARS question. We've been asking these in all the rooms. But Bruce, why they do that? Maybe we'll start big picture and then delve into a lot of what you talked about. You talked to the 16% to 18% ROTCE in the medium term. You just highlighted a lot of different strategies that could potentially maybe get us there, but you're only 11% in the second quarter. So maybe just help us bridge that gap, and if you can offer kind of any thoughts on when you think you can get back to that level?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And maybe just pull up for a moment and just talk to kind of what you're hearing from clients on the commercial side and just how is clients' sentiment just given the tariffs and all the stuff we keep on reading about?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then maybe on the consumer front, [any from your friend's saving] a bit higher income and then some other banks, but just in terms of what are you seeing, in terms of any changes in behavior, or any kind of emerging trends that give your COGS concern. Employment data on Friday was maybe a bit bothersome to some people. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 08, 2025 / 2:30PM, CFG.N - Citizens Financial Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe update us on the progress of the private bank and you touched on earlier where you were talking about this path to 5 % plus earnings accretion this year 20%, 24 % ROTC. You mentioned kind of in line to exceeding those, but they kind of -- where do you go from here and just how big do want this private bank to be?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe the next ARS question is on your recently announced reimagining the bank initiative. I recall back at 2019 at this very conference, you announced your transformational top six program. I know it's $300 million to $325 million in pretax benefits. Maybe you can indulge us again just more detail on this reimagining a bank initiative you kind of hinted at on the July earnings call? It sounds like it's a multiyear transformational top program. You kind of hinted that some AI bend to it. But just talk about maybe some of the investments needed for the program, and just how this plays into the 16% to 18% ROE objective we talked about?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And I guess, Brendan, is leading this initiative, but you hired a new CFO recently, who I know pretty well, both from State Street where he was the Chief Transformation Officer at Barclays. He co-led our investment banking simplification initiative. Just how does that impact that program?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. Now we're halfway markers, you know it's coming, guidance. We're going to go through it in detail, but maybe big picture.

Question: Jason Goldberg - Barclays Services Corp - Analyst : I know, but I got to try. You have 3Q guidance out there -- full-year 2025 guidance out there. I know there's always some puts and takes. Maybe any kind of update you want to provide?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe -- you can kind of maybe run through some of the key drivers, starting with loan growth. But you were talking kind of low single-digit loan growth at the start of the year. Maybe talk about what areas of portfolio are most optimistic about and give us some more flavor?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And at what point do you think we stopped talking about noncore?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. Maybe turning to deposits. Maybe talk about the competitive environment for both consumer commercial deposits level mix, pricing, what you're seeing?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Maybe throw up the next ARS question is on NIM. But Bruce, rate expectations, you mentioned that potentially cutting next week. Maybe just update us in terms of how you're positioned from an asset liability perspective. You've talked to this 3.25%, 3.50% NIM for 2027. Just maybe some of the drivers that kind of low end versus high end when you -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 08, 2025 / 2:30PM, CFG.N - Citizens Financial Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : I guess as we start to think about 2026, 2027, just how you're thinking about the trajectory of NII?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Yes. Capital markets and payments have been good, I guess, fee drivers. Mortgage is an area we haven't really talked a lot about. Rates have seemed to be coming down more recently. Can you maybe update us in terms of what you're seeing there?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then on the expense side, you were talking about 4% expense growth this year, maybe closer to 3% ex to private bank build-out. Just talk to how you're approaching the 2026 budgeting process? Where you see the efficiency ratio going over time? And I think you mentioned positive operating leverage earlier, just how your thoughts around that?

Question: Jason Goldberg - Barclays Services Corp - Analyst : And then maybe on credit quality. You mentioned the office portfolio earlier. So maybe update us in terms of what you're seeing there? And just any other portfolios you're kind of keeping an eye on, any other sectors of note, particularly against this evolving backdrop?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. Maybe put up the next ARS question. CET1 ex AOCI was 9.1% in the second quarter. You talked about share repurchase of $75 million for the third quarter, down from $200 million in a second. Maybe just talk to how you think about capital return given your comments on loan growth. You also haven't raised the dividend in like 10 quarters. So I'd love to hear your thoughts on that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 08, 2025 / 2:30PM, CFG.N - Citizens Financial Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Services Corp - Analyst : Got it. And then bank consolidation has certainly been a recurring theme we get asked about a lot. You mentioned HSBC and investors earlier as being additive. JMP has been additive in the capital market space. You've proven to be a good -- you mentioned Franklin earlier in the mortgage space. So you've proven to be a good acquirer, just how you thinking about consolidation in general?

Question: Jason Goldberg - Barclays Services Corp - Analyst : Clear enough. On that note, please join me in thanking Bruce for his time today.