CITIZENS FINANCIAL GROUP, INC. (NYSE:CFG) Files An 8-K Regulation FD Disclosure

CITIZENS FINANCIAL GROUP, INC. (NYSE:CFG) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.

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Beginning with the first quarter of 2019, Citizens Financial Group, Inc. (the “Company”) plans to make changes to its quarterly presentation of net interest income, net interest margin (NIM), and noninterest expense.

These changes will have no impact on reported net interest income, total noninterest expense or net income. The Company’s NIM outlook provided in its fourth quarter 2018 earnings presentation on January 18, 2019 did not contemplate the impact of these changes.

Consistent with its understanding of general peer practice, the Company will simplify the calculation of its reported NIM to equal net interest income, annualized based on the actual number of days in the period, divided by average total interest-earning assets for the period. Under the Company’s prior methodology, NIM was calculated using the difference between the annualized yield on average total interest-earning assets and total interest-bearing liabilities for the period.

The Company will also begin presenting both net interest income and NIM on a fully taxable-equivalent (FTE) basis beginning in the first quarter of 2019.

In addition, the Company will simplify its income statement disclosure of noninterest expense to combine equipment expense and amortization of software into a single line called equipment and software expense.

To assist investors in understanding these disclosure changes, the Company has prepared historical supplemental quarterly and full-year financial information regarding net interest income, NIM and equipment and software expense for 2018 and 2017, which is attached hereto as Exhibit 99.1.

The supplemental information contained in this Form 8-K, including in Exhibit 99.1, is being provided to assist investors in understanding how the Company’s net interest income, NIM, and noninterest expense would have been presented in previously filed reports under the approaches discussed above. These changes in disclosure do not affect any previously reported results. The Company’s first quarter 2019 earnings release and subsequent financial reports will reflect these changes.

The supplemental information is being furnished to Item 7.01, and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended, nor shall the supplemental information be deemed incorporated by reference into any filings under the Securities Act of 1933, as amended.

Item 7.01 Financial Statements and Exhibits.

EX-99.1 2 d929245dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Citizens Financial Group,…
To view the full exhibit click here


Citizens Financial Group, Inc. is a retail bank holding company in the United States. The Company offers a range of retail and commercial banking products and services to individuals, institutions and companies. The Company operates in two segments: Consumer Banking and Commercial Banking. The Company’s Consumer Banking serves retail customers and small businesses. The Company offers traditional banking products and services, including checking, savings, home loans, student loans, credit cards, business loans and financial management services. Its subsidiaries are Citizens Bank, N.A. (CBNA) and Citizens Bank of Pennsylvania (CBPA). Its Commercial Banking offers financial products and solutions, including loans, leases, trade financing, deposits, cash management, commercial cards, foreign exchange, interest rate risk management, corporate finance and capital markets advisory capabilities.

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