Citizens Financial Group, Inc.

Q3 delivered strong earnings momentum and operating leverage - EPS: $1.41, +8.5% sequential and +34% YoY - ROTCE: 15.1% (up from 13.9% in Q2) - Revenues: record; NII +2.7% QoQ and +13% YoY - Operating leverage: +1.8% sequential and +5.3% YoY (driven by revenue strength + expense discipline) - PPNR: +4.5% QoQ and ~+19% YoY - *Investor takeaway:* solid, repeatable earnings power rather than one-off performance.

Net interest income / NIM outlook remains constructive despite volatility - NIM: up 2 bps QoQ? (management emphasized +2 bps vs. prior-year quarter) to 3.19% - NII Q4 forecast: +2.5% to +3% QoQ, with NIM expected 3.23%–3.26% - Management highlighted time-based benefits from terminated swaps contributing ~2 bps and expecting more help into Q4 and some into 2027 - Risks/challenge: rates were volatile; fees weaker than prior quarter due to capital markets deal timing shifts. - *Surprising angle:* despite a higher-rate environment, management said they do not see current rates creating meaningful stress in loan portfolios.

Deposits and funding: stable trends; competition increasing but bank-specific levers help - Deposits: broadly flat QoQ; average deposits up ~2% demand deposits, helped offset higher funding costs - Deposit cost increase: only +3 bps (seen as favorable vs peers) - Deposit beta expectation: expect deposit betas in the high-40s (similar to prior upcycle when rates rose) - Non-interest-bearing deposits: management is confident in sustaining private bank-driven DDA growth, which should support funding costs. - *Investor takeaway:* they acknowledge competitive pressure, but claim better control via private bank mix (DDA/low cost) and deposit optimization levers.