C I T I Z E N S
F I N A N C I A L
G R O U P
Annual Report 2008
2008
HIGHLIGHTS
Unprecedented volatility in the interest rate and foreign-exchange
markets allowed CFG to generate strong revenues from helping
commercial customers manage these risks. Revenues from this
activity were up 26 percent over 2007. We continued to help
customers with funding and capital-raising, reflecting 14 percent
growth in commercial loans.
CFG realigned its Retail branch network to focus on its core franchise and
contain costs by exiting two markets. In the fourth quarter of 2008,
CFG sold 18 branches in New York’s Adirondack region to Community
Bank System. It also reached agreement to sell to Old National Bank
the 65 retail branches, business banking and regional banking activities in Indiana. That transaction was completed on March 20, 2009.
Citizens Bank and Charter One launched Green$ense™, an industry-first
incentive program that helps the environment by rewarding new
and existing retail customers who enroll in the program with 10 cents
for each electronic transaction they make, up to $120 per year.
As part of a continuing effort to provide industry-leading banking services,
CFG enhanced its Online Banking Bill Pay system. Upgrades included
the ability to pay most bills electronically within 48 hours, and track
and manage payments from a new user-friendly interface.
The Business Banking division launched E-Z Deposit®, a remote deposit
service that enables small businesses to scan deposits and deliver
those images electronically to the bank via a secure Internet connection – saving travel time and providing valuable float benefits by
getting deposits into the bank faster than ever.
The company’s Confidential Waste Management program securely
collected, destroyed and recycled more than 9.9 million pounds of
paper in 2008, the equivalent of more than 84,000 trees and more
than 34,000 gallons of water saved through recycling – and a landfill
reduction of nearly 15,000 cubic yards of waste.
Citizens received major awards or rankings from Homes for Working
Families for home buyer assistance; RESOLVE: The National
Infertility Association; and the Dave Thomas Foundation for
Adoption for adoption assistance programs and other familyfocused benefits.
note: The Royal Bank of Scotland Group plc
(“RBS”) now reports the results of CFG’s core
businesses as “U.S. Retail and Commercial.”
The results discussed in the Chairman’s message
are consistent with RBS’s reporting practices.
They are based on International Financial Reporting Standards (“IFRS”). The information in the
Financial Review section of this report reflects
full CFG results as reported to U.S. regulators in
accordance with United States Generally
Accepted Accounting Principles.
CHAIRMAN’S MESSAGE
When historians write about this period, it’s my
hope that they will point to organizations like ours
as examples of those who weathered the hard times
by serving our customers, our colleagues and our
communities. Even in this challenging time, we are
stable, strong and invested in the many communities
we serve.
I want to begin by saying what an
honor it was to be named Chairman
of Citizens Financial Group. As I told
our employees, I approach the role
with confidence because of the
depth of talent and commitment
we are fortunate to have here at
Citizens. I also want to thank Larry
Fish for supporting me and for his
many years of service.
Without question, the global
economic crisis is stunning. The
market turbulence and economic
slowdown have been particularly
difficult for banking – and it does
not look like the problems will abate
soon. However, CFG’s capital and
liquidity remain strong. In lending
we did better than most of our
peers, particularly in our credit profile. We continue to have a very
strong balance sheet – and are
making loans, taking deposits and
underwriting mortgages.
It was very positive news in
February 2009 when our corporate
parent, The Royal Bank of Scotland
Group plc, announced, as part of a
strategic review of all operations,
that it will retain Citizens Financial
Group as a key part of RBS. Citizens
met the Group’s five strategic
tests: we have a clear competitive
advantage in our core markets, generate strong return on equity and
organic growth in normal economic
times, and our businesses are a
great fit with RBS Group. Moreover,
Citizens has a strong franchise and
an attractive banking portfolio in
our core markets. We are a key
contrib­utor to RBS’s earnings, and
improve the Group’s geographic
balance and growth opportunities.
1
2008
RBS’s U.S. Retail and Commercial
division, which consists of CFG’s
core businesses that have led to the
company's long-term success –
consumer and commercial banking
and related businesses – generated
an operating profit of $972 million.
That was down 57 percent from
2007, before good­will writedowns
and restructuring charges caused by
the worsening of economic conditions over the course of 2008.
Modest growth in net interest
income was offset by a small decline
in noninterest income. Average
loans and advances to retail customers decreased because of the slowing economy and prudent underwriting standards. The latter decline
was offset by continued strong
growth in corporate and commercial
lending. The volatility in the interest
rate and foreign-exchange markets
allowed CFG to generate strong
revenues in 2008 by helping our
commercial customers manage these
risks. Revenues from this activity
were up 26 percent over 2007.
We continued to help customers
with funding and capital-raising, as
commercial loan balances were up
14 percent during 2008.
Total income of $5.6 billion was
essentially unchanged, with 11 percent growth in commercial banking
to $1.2 billion, offsetting a 2 percent
decline in retail banking income to
$4.3 billion. Both segments were
affected by the deterioration in credit
conditions, with retail contribution
down 58 percent to $926 million
and commercial contribution down
7 percent to $711 million.
Direct expenses rose by 5 percent
to $2.0 billion, reflecting continued
investment in the division’s commercial banking business, write-downs
on mortgage servicing rights and
2 chairman’s message
the added cost of managing problem loans. Our impairments were
184 percent higher than in 2007
at $1.93 billion, reflecting the deterioration in economic conditions.
In the fourth quarter of 2008,
we also took steps to exit certain
markets whose prospects for
growth or market position did not
meet our goals. We sold 18 branches
in the Adirondacks region of upstate
New York to Community Bank
System; and we sold the Indiana
branch banking network, consisting
of 65 branches, and the Indiana
business banking and regional
banking activities, to Old National
Bank. The latter transaction closed
in March 2009.
The savings from these and
other efficiency moves is being reinvested in marketing, sales initiatives
and more-robust technology that
will enable us to better serve our
customers through our communitybased delivery model.
New initiatives
Citizens formed an Innovation
Team, in partnership with RBS, to
strengthen our ability to deliver
new ideas that meet the changing
needs of our customers – and ensure
that the products and services we
provide remain competitive.
Green$ense, an industry-first
incentive program, is a terrific example: it helps the environment by
rewarding new and existing retail
customers who enroll with up to
$120 per year for making electronic
transactions. By keeping the customer at the heart of everything
that we do, our innovative service
and support will evolve with customer needs and help fuel our company’s future growth and successes.
We will continue to invest in technology, marketing and sales initiatives to make that happen.
On the consumer banking side,
our Fit campaign took root in 2008
to help customers find the most
appropriate products and services
to meet their financial services needs.
As part of a continued effort to provide industry-leading banking services, CFG also enhanced our Online
Banking Bill Pay system. Upgrades
included the ability to pay most bills
electronically within 48 hours, and
track and manage payments from a
new user-friendly interface.
The launch of the Accelerator
Rewards Platinum™ MasterCard®
during the summer of 2008 rewarded
customers with fuel discounts when
they needed relief from high prices
at the pump – and resulted in CFG’s
highest number of new account
openings per branch per month.
In early 2009, we launched the
Great Start program to help people
get back on track financially, because
we know that kind of help is more
important now than ever before. This
year we are also rolling out MoneyHelpSM to assist customers in the
areas of financial education, basic
budgeting and managing cash flow.
On the small-business side, we
launched the E-Z Deposit remote
deposit service for our Business
Banking customers in 2008. It enables
business owners to scan deposits
and deliver those images electronically to the bank via a secure Internet connection. It saves them the
time spent traveling to and from
their bank branch, and offers valuable float benefits by getting deposits into the bank faster than ever.
Because of the global nature of
the business segment, we rebranded
our Mid-Corporate Banking team as
RBS Citizens. Doing so underscores
the global capabilities available
through RBS’s teams in dozens of
countries, as well as the strong con-
nections that CFG has with such
institutions as Bank of China.
Finally, Our Credo, codified seven
years ago to summarize CFG’s longstanding corporate values, was
updated to reflect such key business
principles as diversity, environmental responsibility and accountability
to stakeholders.
Executive Leadership
Since being named President of CFG
in March 2008, Jim Connolly has
helped implement a reorganization
designed to build even stronger
relationships with our consumer
and corporate customers.
As we move forward, Jim will
support me with broader market-
Colleague Initiatives
We continue to support our colleagues through a variety of bestpractice benefits. We expanded our
matching gifts program, Give As
You Earn, that matches colleague
contributions to eligible nonprofit
organizations on a 1:2 basis, which
means for every dollar a colleague
donates up to a $1,000 annual
maximum, the total contribution to
those nonprofits can reach $3,000.
We continue to receive national
recognition for our colleague benefits programs:
• Homes for Working Families
honored Citizens with a Pioneer
Award for leadership in employerassisted housing. More than
4,000 colleagues have participated
in the Home Buyer Assistance
Program, which offers forgivable
five-year loans of up to $8,000,
at a company cost of $20.8 million
since the program’s inception
in 2002.
• RESOLVE: The National Infertility
Association honored Citizens with
its Hope Award for being on the
leading edge of offering health
insurance, adoption benefits and
parental leave time for employees
working to build their families.
James G. Connolly
President
facing, governance and leadership
responsibilities across the franchise.
He is responsible for leading all of
our Corporate Banking businesses
including the Commercial Markets,
Commercial Finance and Commercial
Real Estate Finance client segments.
Jim also will chair a customer advisory board and the Citizens Charitable Foundation, leading our outreach
efforts in the community.
• For the second consecutive year,
the Dave Thomas Foundation for
Adoption honored Citizens as
the top financial services firm on
its list of the country’s 100 most
adoption-friendly workplaces.
Citizens ranked No. 2 in the foundation’s overall ranking.
2008 include Supergrounds, an alliance with city officials and local
nonprofits to create or rehabilitate
playground sites in low- and moderate income areas, and an increased
focus on financial literacy through
MoneyHelp, the U.S. version of
RBS’s MoneySense program. More
details on our community programs
are available in the Community
Involvement section that begins on
page 20.
Positioned for the future
We have taken significant steps
to further strengthen our balance
sheet and position ourselves for the
future. We are focusing on our core
markets and developing deeper
relationships with our customers
there as we continue to grow our
business organically and strive to
become the top regional bank in
our footprint.
When historians write about this
period, it’s my hope that they will
point to organizations like ours as
examples of those who weathered
the hard times by serving our
customers, our colleagues and
our communities. Even in this
challenging time, we are stable,
strong and invested in the many
communities we serve.
Ellen Alemany
Chairman and Chief Executive Officer
Citizens Financial Group, Inc. and
RBS Americas
Community Initiatives
The communities in which we live
and work are under more stress
than ever – and we continue to support them with programs and funding that help meet their needs. Two
major initiatives that we began in
3
A Tribute
L A R R Y F I S H ’S V I B R A N T L E G A C Y
It is only fitting in this year’s Annual
Report that we pause to reflect on
the imprint that Larry Fish has made
on our company, and the community
at large, in his often-combined roles
over the past 16 years as Citizens
Financial Group’s Chairman, President and Chief Executive Officer.
Since his arrival in April 1992,
Larry oversaw Citizens’ growth from
a relatively small banking company
with a focus on Rhode Island and
southeastern Massachusetts into a
bank with a presence in 13 states,
and a top 10 ranking among U.S.
commercial banking companies.
His encouragement and vision led
CFG through 25 acquisitions and,
in many years, double-digit organic
growth in the company’s marketplace as it expanded throughout
New England, and into the MidAtlantic and the Midwest.
Under his leadership, and with
the strong support of RBS, CFG grew
from just over $4 billion in assets
to more than $160 billion; from
2,000 colleagues to more than
24,000; from 60 retail branches to
1,600. Through its in-store branches
in the Citizens Bank and Charter
One franchises, CFG became the
No. 2 supermarket banker in the
United States.
Despite all of that tangible success,
his greatest impact involved the
character of our company and the
thousands of men and women who
collectively have made CFG a success.
A lot of things that Larry put into
place became foundational. He codified Citizens’ historic but previously
intangible corporate character traits
– its core values – into the company’s
Credo, which continues to thrive
today. Bottom line: our success is all
about people: the customers, the
colleagues and the communities
where we live and work.
His noteworthy accomplishments
involved creation of CFG’s Community Service Sabbatical program,
Champions in Action®, Colleague
Appreciation Week, a personal and
corporate commitment to improved
educational, advocacy and naturalization services to the immigrant
and refugee community, a strong
commitment to small business,
and to home buyer assistance and
adoption assistance for colleagues
reaching for the American Dream of
owning their own homes or enriching their families.
The Community Service Sabbatical
program grew out of Larry’s own
pre-Citizens sabbatical at the Log
School Settlement House, which
opened in 1974 as a place to help
immigrants in Boston’s Dorchester
neighborhood. Larry spent three
months there in early 1992. He
scrubbed walls and floors. He passed
out food and clothes, read to children while their parents worked,
befriended clients young and old –
and learned first hand about issues
of poverty and race as he handled
many chores for which the Log
School staff never seemed to have
time. Since the CFG program began
in 1994, more than 75 colleagues
have had similar life-changing
experiences assisting nonprofit
social services agencies across the
company’s footprint.
In an often-quiet way, Larry has
excelled at community leadership –
using his banking experience to
help make the world a better place,
imbuing his colleagues and his peers
in the upper echelon of the financial
services industry with the understanding that being successful and
caring are not mutually exclusive.
Nor should they be.
Best wishes in all of your future
endeavors, Larry.
In an often-quiet way, Larry has excelled at community leadership – using
his banking experience to help make the world a better place, imbuing his
colleagues and his peers in the upper echelon of the financial services
industry with the understanding that being successful and caring are not
mutually exclusive. Nor should they be.
4
We want to help you grow, create and innovate.
Our major business groups – Commercial Markets,
Commercial Real Estate Finance, Commercial Finance,
Consumer and Business Banking, and Global
Transaction Services – have a well-developed and
successful core strategy of building deep, long-term
customer relationships in which we are a trusted
advisor and primary banking partner.
Corporate Banking
Whether they are working with small businesses or
large corporations, our seasoned relationship managers
have risen to the extraordinary challenges of the current
economic environment and have been able to provide
essential value-added services to their clients. That
approach is key to our goal of being the top regional bank
in our footprint. Selecting from an extraordinary array
of financial instruments offered throughout dozens of
countries, our clients feel the benefits that our international network provides in a global economy that is under
unprecedented stress. Our scope and breadth in Asia
remain strong. The combined capabilities of RBS, ABN
AMRO and Bank of China offer industry-acknowledged
foreign exchange, trade finance and cash management
services, all invaluable resources to our clients conducting
business in Asia. Although RBS no longer has an ownership interest in Bank of China, the partnership continues.
Our relationship managers continue to remain trusted
advisors for their customers – around the corner and
around the globe.
6
Middle-Market Banking
Citizens Bank and Charter One
Middle-Market relationship
managers are dedicated to developing and supporting long-term
relationships with companies in
New England, the Mid-Atlantic and
the Midwest generating annual
revenues between $25 million and
$500 million. Our relationship
managers have a keen awareness
of today’s harsh business climate
and understand the importance of
keeping their clients well informed
of market developments, given
the intense competitive pressures
this segment faces. With access
to resources and products vital to
sustaining their clients’ businesses,
our relationship managers are key
partners in helping them achieve
success under the current formidable economic conditions.
Foreground: Vera Bradley Designs Inc. Founder and
Co-President Patricia R. Miller and Senior Vice President
Brian D. Smith of Charter One, Indiana. Background: Senior
Vice President Rose Lee Askin, CFG’s China Liaison; Vice
President Eric Harvey of Charter One, Indiana; and Vera
Bradley Designs CFO David R. Traylor.
Mid-Corporate Banking
Working tirelessly to build and
strengthen our relationships with
corporations generating annual
revenues from $500 million to
$2 billion, Mid-Corporate relationship managers develop a thorough
understanding of our customers’
complex needs in an intensely
competitive international marketplace now rife with instability.
Vera Bradley Designs Inc.
Vera Bradley is an internationally
known designer and manufacturer of stylish handbags, travel
items, eyewear and stationery.
The company, headquartered in
Fort Wayne, Indiana, was founded
by Patricia R. Miller and Barbara
Bradley Baekgaard in 1982 after
they foresaw a niche for femininelooking luggage.
Charter One began its relationship
with Vera Bradley in 2008 as
syndication agent on a revolving
loan/term loan facility.
During a meeting to discuss Vera
Bradley’s financing needs, the
company mentioned a change in
its supply chain, having established a Wholly Owned Foreign
Enterprise (WOFE). We took the
opportunity to highlight our international capabilities/partnership
and quickly arranged a conference
call with Rose Askin. Askin worked
closely with Vera Bradley’s local
manager and the overseas branch
to establish several accounts. In
addition, Vera Bradley’s U.S.-based
international holding company
opened a deposit account with
Charter One.
“Working with Charter One has
helped the company to quickly
establish the necessary accounts
and transfer of funds needed to
support our international office.
The entire Charter One team was
very responsive in meeting our
needs,” said Vera Bradley Designs
CFO David R. Traylor.
Demonstrating our overseas
capabilities has positioned us as
a trusted international advisor. We are also in discussions on
providing hedging for the local
currency. In the Citizens BankCharter One market, an international team is a key differentiator
from our competitors – and
one we plan to use extensively
in 2009.
Senior Vice President Leslie D. Broderick of
RBS Citizens’ Mid-Corporate Banking team
with President & CEO Michael J. Barrist (right)
and Executive Vice President and Chief
Financial Officer John R. Schwab at NCO
Group in Horsham, Pennsylvania. RBS Citizens
became the company’s lead relation­ship
bank in 2008. RBS Securities Inc. (formerly
RBS Greenwich Capital) was the Sole Lead
Arranger and Sole Bookrunner on a $139
million Add-on Senior Secured Credit Facility
that enabled NCO to acquire its largest
competitor. RBS Citizens is the Administrative Agent for NCO’s senior debt facilities.
7
With relationship managers
20 U.S. banks managing public
located throughout New England,
deposits. At a time when state and
the Mid-Atlantic and the Midwest,
local budgets are under extreme
we have the competitive advantage
pressure, our seasoned profession-
of proximity to our customers,
als have the expertise and local
an important factor in these trying
regulatory knowledge to meet the
and uncertain times. This proximity,
needs of governmental entities.
combined with a long-term focus
Our teams provide a range of
on relationships and access to a
services to state governments,
wide array of global products and
counties, municipalities, public
services has made our relationship
schools, trustees, commissions,
managers the trusted advisors to
authorities and districts. They have
whom our clients turn.
proven track records in implement-
RBS Asset Finance
As the 10th-largest bank-affiliated
lessor/lender in the United States
with a portfolio of $5 billion, RBS
Asset Finance provides our customers
with a significant depth of resources
and services including equipment
acquisition, recapitalization, working capital and liquidity, and balance sheet management. Industryspecific experts cover business
aviation, structured products and
indirect sales.
ing effective, targeted strategies
Government Banking
The Government Banking division
is the primary sales, marketing
and service-delivery group to government entities throughout our
footprint. It had total funds under
management of $14.1 billion as of
December 31, 2008, which resulted
in a ranking of 4th among the top
The Indiana Finance Authority
T
he Indiana Finance Authority,
the financing conduit for
economic development projects
within Indiana, was seeking a
liquidity provider for the auction
rate bonds to finance Lucas Oil
Stadium, home to the Indianapolis
Colts NFL team. The Government
Banking team worked with
Charter One’s Middle-Market
team to structure the financing.
Additional financing requirements
to complete construction of the
stadium, as well as to expand
the Indiana Convention Center,
brought the total credit participation for Charter One to more than
8 co r po rate ba n k i n g
for cash management, investment
management, lending and other
banking needs. The need to understand the pressures our government
clients face has never been more
acute. Enhancing that understanding is our active role in the national,
state and local associations that
are important to our clients.
$145 million. As part of this transaction, the State moved additional
deposits totaling $161 million to
Charter One. The Indiana Finance
Authority was working under very
tight timelines and we accepted
that challenge to help it complete
the project on time and within
budget for the August 2008 opening of the Colts’ first home game
in the new facility, which will be
the site of the 2012 Super Bowl.
Upon completion of the Convention Center expansion, Indianapolis will rank 16th in the nation for
convention space, a goal Charter
One helped the State achieve.
Global Transaction Services –
Cash Management
Business today requires even
smaller companies to manage cash
on a worldwide basis. Efficien­cies
are harder to come by, and companies need to control an increasingly
complex web of trans­actions. At the
same time, the pressure is escalating to reduce the capital tied up
in the day-to-day running of your
business.
The depth of our world-class
innovative solutions and the breadth
of our global reach give us the flexibility to meet your demands, no
matter how complex or geographically wide-ranging. CFG’s Global
Transaction Services is a top-five
global cash manager because of our
leading product range and extensive geographical coverage.
From single proprietorships to
large multi-national clients, our
domestic and international services
are designed to accelerate collections of accounts receivables,
manage the distribution of funds
and provide enhanced short-term
liquidity.
Aegis Group plc
C
itizens’ Foreign Corporate
division, RBS’s Global Banking
and Markets division and Global
Transaction Services worked
jointly to develop a tailor-made
global liquidity solution for the
London-based global marketing
communications firm, Aegis
Group plc, which has a significant
U.S. presence. An extensive global
network, robust technology infrastructure and innovative, awardwinning liquidity management
solutions quickly resulted in our
being able to meet Aegis’s banking needs in Asia and North
America. Our proactive and consultative approach, strong support
from the relationship management team and a superior solution
resulted in Aegis selecting the
CFG/RBS/ABN AMRO team to
meet its global liquidity management needs.
WL Ross & Co. LLC
WL Ross & Co. LLC (WL Ross) is a
global private equity investment
firm with more than $8 billion
of assets under management.
The company is led by Chairman
and Chief Executive Officer Wilbur
L. Ross Jr., and is headquartered
in New York City. The company
specializes in improving the financial condition of distressed businesses by utilizing its expertise as
an activist creditor with significant
transaction experience and performing complex financial and legal
analysis in order to make sound
direct private equity investments
in these troubled companies.
The financial industry was rocked
by crisis after crisis in 2008, causing WL Ross to re-think its banking
relationship. Seeking stability and
certainty, CFO Michael J. Gibbons
tapped into the Private Equity CFO
Association to find a new banking
partner. The association was
founded in 2001 by Citizens Bank
as a way for private equity financial professionals to network and
communicate through a common
forum and today has more than
750 members.
Gibbons reached out to Citizens
Bank Relationship Manager Chuck
Woodard, who also serves as the
association’s Executive Director,
and inquired about commercial
banking services. Within a few
days, Woodard and his team,
Jeff Regan and Neil Hibel, were in
WL Ross’s office demonstrating
the bank’s capabilities. “We were
impressed with the bank’s knowl­
edge, professionalism and full
complement of products, especially its Web-based reporting
tools. We felt immediately that
Citizens would make a great partner,” said Gibbons.
After an efficient transfer of its
cash and custodial accounts to
Citizens Bank, WL Ross began
using the bank’s Global Processing
Solutions system to handle its
cash management needs and set
up a $200 million capital call line
for the firm’s newest investment
fund. The relationship has been a
sound investment ever since.
Senior Vice President Chuck Woodard
(left) of Citizens Bank’s Private Equity
Banking team, visits WL Ross & Co.
Chairman and CEO Wilbur L Ross and
CFO Michael J. Gibbons at the firm’s
Manhattan headquarters.
9
Specialized Lending
Understanding the intricate needs
and challenges of niche businesses
enables our team of experts to
respond quickly to provide tailored
solutions to their clients. The businesses in which we have a noted
expertise include account­ing and
law firms, energy and utilities,
fuel distribution, insurance, not-forprofit/health care, private equity
firms, publishing, security alarm,
service industry franchises and
technology banking.
Vice Presidents Edie Anderson (foreground) and Deidre Lockhart (far left) of Citizens Bank’s
Franchise Lending team with Don and Paula Wright, who own and operate nine McDonald’s
franchises in southern New England. The Franchise Lending team works closely with a wide
variety of franchise operators across the United States.
Allen Academy
Allen Academy, a charter school
in northwest Detroit, opened in
1999 in a renovated church with
the goal of becoming a “new
kind of public school.” Enrollment
has grown every year to its current
1,006 students under the leadership of School Leader Timothy
Green.
Senior Vice President Neran Shaya of
Charter One’s Not-for-Profit/Health Care
Group meets with School Leader Tim
Green at Allen Academy in Detroit.
The school celebrated a 100 percent graduation rate in 2008,
with many students continuing
their education in college or vocational training. Faculty, parents
and the surrounding community
work together to ensure the
students’ academic success.
Allen Academy is managed by the
Leona Group, L.L.C., the largest
charter-school organization in the
country. The privately held company
was formed in 1996 in Michigan
by William Coats, Ph.D., a national
leader in public education reform.
It has public charter schools in
Indiana, Michigan, Arizona, Ohio,
Louisiana and Florida.
10 co r po rate ba n k i n g
Leona turned to Neran Shaya of
Charter One’s Not-for-Profit/
Health Care team for a workingcapital solution to manage routine
operating payables throughout
the year that were out of sync
with the distribution schedule for
school aid managed by the state.
Charter One provided Leona with
a comprehensive solution that
included separate lines of credit
for the majority of its charter
schools and a streamlined cash
management solution for all of
its deposit accounts and payroll
services. Allen Academy received a
$975,000 State Anticipation Note.
“When Leona needed new ideas
and solutions – a strategic partner
– Neran Shaya was there,” said
Coats, who is Leona Group’s CEO.
“Leona and all its charter schools
value greatly the relationship
which we have with Charter One.”
RBS Business Capital
Our asset-based lending group is
one of the largest providers of
secured asset-based loans in the
United States, with a national effort
managed through seven regional
offices in Atlanta, Boston, Cleveland,
Chicago, New York City, Philadelphia
and Pittsburgh. Our highly trained
professionals can provide or arrange
complete financing for all transaction sizes – from a basic workingcapital line of credit to a complex,
multi-bank syndication.
Regional Banking
The Regional Banking relationship
managers located through­out the
Citizens Bank and Charter One
footprint focus their energies and
expertise on companies in New
England, the Mid-Atlantic and
the Midwest generating annual
revenues between $10 million and
$25 million.
Global Markets –
Foreign Exchange
Changes in foreign-exchange trends
or unexpected market volatility
can complicate the best laid plans.
To give our clients the edge in the
international marketplace, dedicated Global Markets teams in New
England, the Mid-Atlantic and the
Midwest emphasize a consultative
approach to helping clients manage
their foreign exchange risk. We can
provide full international product
delivery in more than 75 currencies
and offer strategies to hedge
against currency rate fluctuations
that may adversely affect our
clients’ businesses.
SmartPak Equine LLC
Necessity was the catalyst for
creating SmartPak Equine LLC.
The Plymouth, Massachusetts
company was founded in 1999
when owner Becky Minard discovered that her horse Westley
wasn’t getting his daily supplements consistently at her boarding barn. She’d check his feed
bucket, and his supplements
would often be missing or not
dosed correctly. The barn staff had
to feed 35 horses an average of
three supplements per day. That’s
105 supplement doses to be
opened, measured, fed and
resealed every day. No easy task.
As a loving pet owner, the Harvard
Business School graduate developed a simplified solution that
would make feeding time easier
and horses’ lives better. SmartPaks
contain a horse’s supplements
and medications in custom-made,
daily dose packs to eliminate
feeding mistakes.
The multi-million-dollar company,
named to Inc. Magazine’s list of
the 500 fastest-growing private
companies for the second straight
year, has served more than 150
million supplements in customized
daily dose SmartPaks, delivered in
automated monthly shipments, to
clients across the county.
Minard and her husband and business partner, Paal Gisholt, chose
Citizens Bank for its commitment,
understanding of their business
and eagerness to grow together,
as well as the personal attention
Relationship Manager Marilyn
Agulnick-House and senior executives offer to the company. In addition to the supplement
system, SmartPak offers a broad
line of horse health and rider
items, dog supplies, and equine
and canine pharmacy items
through its catalog and Web site.
“Citizens truly understands our
banking needs and is eager to provide financial advice and guidance
as we continue to grow our business,” said Minard. “We are a caring company committed to our
clients and their needs – and are
proud to work with a bank that has
the same philosophy as we do.”
Senior Vice President
Marilyn AgulnickHouse (center) of
Citizens Bank’s
Regional Banking
Group with SmartPak
Equine owners Becky
Minard and Paal
Gisholt, and Becky’s
horse, Westley.
11
The Brack Family
T
he Brack family, former owner
of Barker Steel Company in
Milford, Massachusetts, and now
a minority partner in Barker Steel
LLC, a Harris Rebar Company, has
had a 67-year relationship with
Citizens Bank. The bank has been
there to help the business grow
over four generations.
When the family decided to sell
the business to a larger steel company based in Canada, our Wealth
Management team helped the
family through that transition,
meeting with all the family members to assess their individual
needs, and advise them of their
opportunities and choices.
Multiple accounts were opened
to take each family member into
this new phase of wealth, which
was no longer tied entirely to the
success of the one business they
controlled, but instead was tied to
the growth of a diversified securities portfolio. We also opened a
family foundation to continue the
family’s interest in giving back to
the community.
Upon opening the investment
accounts, the family’s words were:
“You have 70 years of Brack Family
hard work in your hands.” We
understand this sentiment, which
guides our prudent management
of our clients’ assets every day,
especially now.
The longevity of this relationship and its lifecycle transformation, from wealth building on the
commercial side to building a family legacy on the investment side,
is a testament to the consistent
superior service and teamwork
that is pervasive throughout CFG.
Wealth Management
We provide customized portfolio
management and trust services
to high-net-worth individuals,
non-profit organizations, corporations and retirement plans. Planned
giving and endowment growth
solutions strategies are offered to
the nonprofit sector while Citizens
Retirement Plan Services team
provides 401(k) and 403(b) plans
and retirement plan administration
services. The Wealth Management
officers work with relationship
managers, branch managers and
business banking officers to ensure
that all customers have complete
and informed teams serving their
needs.
12 co r po rate ba n k i n g
Global Markets – Interest Rate
Risk Management
Interest rate exposure can be a risk
for any company. Our seasoned
Interest-Rate Risk Management professionals assist our clients with
evaluating, structuring, and executing appropriate rate risk management solutions. The team’s approach
is proactive, consultative and
designed to meet borrowers’ objectives in any market environment.
It will work to identify interest
rate exposure, set objectives for
hedging, consider the instruments
available, and propose solutions
that incorporate your company’s
individual risk management criteria.
Hedging instruments include
options, forwards, swaps, swaptions,
caps, floors, collars and combinations and variations of these instru-
ments. We have outstanding
resources to make available to our
customers and a track record of
success with our clients.
Global Transaction Services –
Trade Finance
Although trade volumes are
down globally, the need for tradefinancing services remains for any
company, large or small, involved
in importing and exporting. Those
services require a thorough understanding of cross-border issues.
Full knowledge of regulatory constraints and the impact of tax and
accounting codes, as well as complete familiarity with the economies
of countries in which our clients do
business, make our trade finance
specialists valuable partners.
Our solutions range from the
traditional payments products
that underpin international trade –
such as letters of credit – to support
for open-account trading and the
financing of supply chains. Our supply chain solutions are highly effective in strengthening the relationships upon which our clients’ success
depends between buyers, strategic
partners and core suppliers. Our
award-winning Web-based trade
platform offers a secure point of
access to all of our trade processing
and supply chain finance solutions.
Our solutions make trading across
borders as efficient, straightforward
and secure as possible. In addition,
we are a Delegated-Authority Lender
for the U.S. Export-Import Bank.
Senior Vice Presidents Timothy L. Leon
(left) and Zach David of Citizens Bank’s
Commercial Real Estate Finance team
meet with Executive Vice President
A. Leslie Ludwig of The JBG Companies.
Commercial
Real Estate Finance
CFG’s Commercial Real Estate
Finance division leverages the
strength and market knowledge of
experienced real estate lenders
throughout the franchise. Our bankers understand the difficulties their
clients face and are able to provide a
wide range of specialized solutions
throughout the Citizens Bank and
Charter One footprint. We bank the
best-known real estate developers,
merchant builders and investors
within each region.
The credit products we offer
include acquisition and development loans, bridge financing,
permanent mortgage financing,
construction financing, as well as
letters of credit and revolving lines
of credit. We offer a complete array
of customized deposit products
including tenant escrows, remote
deposit and a complete suite of
cash management products for
commercial real estate companies.
The JBG Companies
One of CFG’s core business lines,
Commercial Real Estate Finance,
has experienced steady and solid
growth on the national level. Over
the past year, the Citizens team
has moved deeper into the Washington, D.C., metropolitan area, a
region consistently ranked as one
of the top commercial real estate
markets in the country due to
its ability to withstand economic
volatility. The JBG Companies is
one the cornerstones of the team’s
growing portfolio.
Since 1960, The JBG Companies
has been a leading investor, owner
and developer in the Washington
area’s real estate market. Its diverse
portfolio encompasses millions of
square feet of office, multi-family
residential, hotel and retail projects, and includes many of the
region’s most distinguished properties throughout the District of
Columbia, Maryland and Virginia.
Citizens has cultivated its relation­
ship with JBG by serving as a
depository, providing cash management, project finance and a
subscription line facility to meet
the company’s diverse needs.
Citizens continues to work
closely with JBG on upcoming
projects, including a LEED Gold
Pre-Certified building that would
be the tallest business center in
the nation’s capital.
“Whether we’re working with
our relationship manager or the
bank’s senior management, the
Citizens’ team is responsive at
all levels,” said A. Leslie Ludwig,
Executive Vice President, Corporate Finance at The JBG Companies. “Even in the current economic conditions, the Citizens
team has been able to provide us
with creative solutions to meet
our business needs and respond
to market challenges.”
13
Exceptional Service Delivered Locally
How do you build brand loyalty? It starts with having a
great brand, solid products and terrific customers. But
something deeper makes a company successful. In our
case, local decision-making and customer familiarity
are key. That’s why we have talented local presidents and
teams of bankers on the ground as we work to become
the top regional bank in our footprint. They know their
communities and they know their customers. They pride
themselves on their responsiveness and sense of
responsibility. That dedication has enabled our company
to build and grow relationships with our customers and
community partners who work so hard to achieve their
own corporate, personal and community goals. Local
delivery means timely decision-making and access to
senior management as we work to build – and strengthen
– those relationships. How, you ask? We answer the
phone. We call you back. We get to know you. We work
to understand your business – and your financial needs.
And we always thank you for doing business with us.
14
LOCAL LEADERSHIP
Joseph J. MarcAurele
Rhode Island
Robert M. Curley
New York
Scott C. Swanson
Illinois
Ralph J. Papa
Pennsylvania
Daniel K. Fitzpatrick
Eastern Pennsylvania,
New Jersey and Delaware
Cathleen A. Schmidt
New Hampshire
and Vermont
Connecticut
Richard M. Barry
President
Branches 49
ATMs 67
Delaware
Daniel K. Fitzpatrick
President
Branches 26
ATMs 45
Illinois
Scott C. Swanson
President
Branches 102
ATMs 322
ATMs 585
Michigan
Sandra E. Pierce
President
Branches 111
ATMs 124
Richard M. Barry
Connecticut
Robert E. Smyth
Massachusetts
Sandra E. Pierce
Michigan
New Hampshire
Cathleen A. Schmidt
President
Branches 76
ATMs 156
Pennsylvania
Ralph J. Papa
Chairman
Branches 359
(also includes commercial loan office in Maine)
Daniel K. Fitzpatrick
President
Eastern Pennsylvania
New Jersey
Daniel K. Fitzpatrick
President
Branches 15
ATMs 65
ATMs 648
(also includes a commercial loan office
and 4 ATMs in Virginia)
Rhode Island
Joseph J. MarcAurele
President
Branches 77
ATMs 151
New York
Robert M. Curley
Chairman
James P. Gaspo
President
Branches 216
Massachusetts
Robert E. Smyth
President
Branches 250
James P. Gaspo
New York
ATMs 274
Ohio
Sandra E. Pierce
Interim President
Branches 148
ATMs 169
Vermont
Cathleen A. Schmidt
President
Branches 23
ATMs 24
(also includes commercial loan office in Indiana)
15
Consumer and Business Banking
OUR CONSUMER BANKING PHILOSOPHY
Customers are at the heart of everything we do. With
an innovative selection of products and services, our
Retail colleagues are dedicated to providing world-class
customer service that will help consumers meet their
individual needs at every stage of life. In that process,
they also build strong and lasting financial relationships.
Retail Banking
Delivering world-class service, support and innovation is paramount
to our growth and success. We help
our customers save money, make
money and give them peace of mind
by finding the right fit for their lives
and businesses with products and
services designed to grow, retain
and deepen customer relationships.
Consumers want a bank that
provides personalized solutions to
fit their busy lives, so in early 2008
Citizens Bank and Charter One
introduced the Fit brand strategy.
Fit is all about “banking that fits
your life, not the other way around”
and increases customers awareness
of our ability to always find the right
“fit” in banking products and services
to help them achieve their financial
goals. Fit enables our customers to
bank how, when and where they
want and helps them find the right
product at the right time.
Consumers are looking for ways to
get the most value from their banking relationship. With Green$ense,
our industry-first rewards program,
Brothers Nik (left) and Sonny Wadhwa
are high-performing branch managers
in the Retail Partnership Delivery Group,
running in-store branches in South
Attleboro and Easton, Massachusetts,
respectively. Both are active in the
Massachusetts and Rhode Island Indian
communities as ambassadors for Citizens
Bank and for RBS.
16
our customers are rewarded every
time they pay without paper – earning up to $120 per year. It also provides an innovative and competitive
response to the growing expectation
from consumers for an easy, convenient way to reduce their impact on
When Citizens Bank and Charter
One customers invest with CCO
Citizens Bank and Charter One customers
have the opportunity to bank with us
when and where is most convenient for
them through one of our more than 3,300
customer touch points. Customers can be
confident that, no matter which delivery
channel they choose, the products, services
and support they count on will be there –
whether it be face-to-face at one of more
than 970 traditional or 479 in-store
branches, walking up to one of our more
than 2,600 ATMs, utilizing Online Banking
anytime or calling our 24/7 PhoneBank.
Investment Services, they can do
so with confidence knowing that
qualified Financial Consultants
are helping custom­ers meet their
short- and long-term investment
goals. Whether customers are interested in estate planning, education
finance or retirement, CCO Investment Services offers a range of
competitive products and service
to meet all their needs.
RBS Card Services provides innova­
tive and customized solutions for all
grams, like ExtraGreen with Stop &
of our customers’ credit card needs.
Shop in Rhode Island and the
Customers can earn rewards on
fuelperks! debit program with Giant
their Citizens Bank or Charter One
Eagle in western Pennsylvania,
credit cards just by selecting the
reward customers with savings just
card with the rewards program that
for shopping at their stores and
fits their spending habits. In the
banking with Citizens Bank. 2008
summer of 2008, customers received
also saw expanded relationships
relief from high prices at the gas
the environment. Green$ense
with key partners including Acme
pump with double rewards on pur-
includes automatic enrollment in
Markets in Philadelphia and Stop &
chases made with the Accelerator
e-Statements and free Online Bank-
Shop in New York state’s Long Island
Rewards Platinum MasterCard –
ing with Bill Pay.
and Hudson Valley regions, both
that’s nearly $.25 cash back on every
providing added availability of
gallon of gas purchased. Debit
customers experienced significant
banking centers for shoppers. Our
Rewards also offers a convenient way
improvements to the way they bank
in-store partnerships will continue
for customers to earn points towards
and pay bills online. Enhancements
to be a key driver of growth and
great gifts just by using their debit
such as faster bill payments, easier
innovation as customers look to us
card. Customers can shop like always
navigation and convenient e-bills
for the convenience that in-store
and watch rewards add up that can
have evolved their online banking
banking provides.
be redeemed for merchandise,
Donna Price manages Charter One’s Great
Lakes Mall branch in Mentor, Ohio.
Citizens Bank and Charter One
experience. Increased convenience,
In 2008, the residential borrowing
travel, banking benefits, and once-
efficiency and control help custom-
process evolved with the introduc-
in-a-lifetime experiences, just by
ers utilize the online banking chan-
tion of the Home Lending Solutions
banking the way that fits their life.
nel effectively.
Center. Through the HLSC’s dedi-
Our in-store branch network,
cated team of Home Loan Advisors,
the No. 2 in-store banking franchise
customers now benefit from faster,
in the country, saw strong growth in
more consistent service and sup-
2008. The Retail Partnership Delivery
port from highly trained profession-
Group is now a distinct business
als who are committed to helping
line committed to maximizing
them find the most suitable prod-
growth opportunities by leveraging
ucts and services to best fit their
its partnerships. Innovative pro-
home borrowing needs.
Small Business
Citizens Financial Group continues
to innovate and expand its products
and services to help our valued
small-business customers grow their
businesses. Our dedicated Business
Banking professionals are well
positioned to provide the solutions
17
Orbis Clinical Vice President Ron Norton,
Citizens Bank Business Banking Relationship Manager Rich Rougier and Business
Banking Officer Caitlin Egan Roos, and
Orbis CEO Matt Garceau at the firm’s
Woburn, Massachusetts headquarters.
that customers need to maximize
Orbis Clinical LLC
their cash flow, minimize banking
fees and build for the future.
Citizens Bank and Charter One’s
Founded in 2004, Orbis Clinical is a
consulting company that provides
expertise in drug safety, risk management, regulatory affairs and
quality assurance. These capabilities enable its clients to solve the
key tactical and strategic challenges
they face. Orbis Clinical concentrates on delivering flexible, clientdriven solutions to mitigate risk
and ensure regulatory compliance.
new E-Z Deposit remote deposit
service enables customers to make
deposits from their places of business by using scanners to imagecapture deposits over a secure Internet connection. It helps reduce the
number of trips to the bank – and
it improves cash flow.
We implemented the Provenir
Caitlin Egan Roos, a Citizens Bank
Senior Business Banking Officer,
first contacted Orbis Clinical CEO
Matt Garceau in December 2007.
At the time, Orbis was satisfied
with its current bank, but Garceau
said his company was looking to
increase its working capital credit
facility, and he knew that prior
bank’s revised underwriting policy
would cost his firm more than
he wished to spend each year to
prepare audited financial reports.
Lending System’s new technology,
which allows our colleagues to
submit, monitor and update loan
applications via laptop from virtually
anywhere, with the option to submit critical support documentation
electronically to the lending centers.
This results in faster loan turnaround
times for our customers.
The Business Banking Group’s
new customer sales and service
channel features Business Banking
Relationship Managers – a locally
based relationship management
team that is dedicated to proactively
call on customer businesses that
Coordinated interaction with
require more personalized service.
customers by our Business Banking
This dedicated group offers custom-
Officers and Retail Branch teams is
ized products and services to help
the foundation for the personal
custom­ers manage and grow their
approach that is a hallmark of our
businesses.
customer service.
18 consumer and business banking
“We wanted to focus on maintaining a long-term relationship with
an institution that would be there
to grow with my company
through this tough economic climate and Citizens best demonstrated that soundness and safety
I was looking for,” Garceau said.
With a credit facility request of
this size, Roos partnered with Rich
Rougier, a Business Banking Relationship Manager. Together, they
worked to win the largest credit
approval in 2008 for Citizens’ new
Business Banking Relationship
Manager channel in Massachusetts.
Rougier is assigned as Orbis’s dedicated relationship manager to
ensure that all of its banking
needs continue to be satisfied as
the business grows.
Citizens Bank’s Business Banking
team met Orbis’s lending needs.
That relationship has since grown
to include the firm’s deposit
accounts as well as personal banking relationships for its executives.
Our Credo
Customers
Colleagues
Community
We will do whatever we can every
We want our company to be the
We believe great companies have
day, in every way, to provide world-
best place to work in the world. The
a moral core. We care deeply
class service and consistently
environment will be extraordinarily
about our communities, and we
exceed customer expectations. We
caring, like an extension of our own
demonstrate this commitment
will always honor our commitment
family. We will be supportive in
every day by responding where
to customers and constantly give
times of personal difficulty, create
there is need. We care about the
them reasons to say “I love dealing
opportunities for professional
world’s limited resources and are
with these people.” We will treat
growth, and always make an effort
committed to their responsible
customers the way we would enjoy
to listen and act on our colleagues’
use. We will be ethical and honest
being treated all the time. We will
ideas. We will foster a diverse team
at all times. By giving back and
know our customers and respond
and treat every colleague with
conducting ourselves with integrity,
to them rapidly. We will anticipate
dignity and respect at all times.
we can make our customers and
their need and make it happen.
colleagues proud of our company.
By fulfilling Our Credo every day, we will serve our shareholders
well and be one of the world’s most admired companies.
Assistant Vice President
Anna Li, a Financial Consultant
at CCO Investment Services,
is based at Charter One’s
Chinatown Square branch
in Chicago.
19
Community Involvement
In 2008, Citizens Financial Group invested
more than $22 million to the thousands of
communities that make up our footprint,
creating sustainable development for nonprofit
organizations and generating volunteer
opportunities for our colleagues at a time of
increased demand for nonprofits’ programs
and services.
Our approach to community outreach is defined by
our ability to harness the company’s resources to make a
greater impact on smaller nonprofits. We understand
that, to make a difference, it will take everyone working
together, investing resources and building solutions to
make the changes needed, to address our neighborhood’s
toughest problems. In 2008, we launched or expanded
a number of programs contributing to this goal.
20
Supergrounds
Supergrounds, an alliance between
CFG, city officials and local nonprofits to rehabilitate or create
playground sites in low- and moderate-income areas, was implemented
in three New England locations in
2008 through grants and volunteers.
RBS began Supergrounds as a $126
million, six-year program that has
already revitalized 500 parks, with a
goal of revitalizing 900 worldwide.
In 2008, CFG colleagues helped to
refurbish the Sackett Street Playground in Providence, Rhode Island,
and the P.T. Barnum Housing
Complex playground
in Bridgeport,
CCO Mortgage Loan Officer Irv Brockington gives
Rookie League players hints on how to master
the Citizens Bank Game of Baseball, a ballpark
version of pinball, in Ashburn Alley at Citizens
Bank Park in Philadelphia. Citizens Bank has been
a longtime supporter of the Phillies Rookie
League, an outreach program that teaches baseball fundamentals and teamwork to thousands
of children ages 6 to 12, principally from innercity neighborhoods.
Connecticut; and transformed two
up and ready to play even before
vacant parcels of land in Codman
colleagues from Citizens Bank, RBS
Square in Boston’s Dorchester
Card Services and RBS Greenwich
neighborhood into a vibrant park
Capital were done with their work –
for children and residents of all
cleaning and seeding playing fields,
ages. At the P.T. Barnum site, kids
planting trees, painting benches
from the neighborhood were lined
and installing a new playscape.
Champions in Action
Through Champions in Action®,
our signature community program
which operates in nine of our markets, we have directed more than
$4 million along with thousands of
volunteer hours to worthy, smaller
organizations that support important local causes – such as youth
services, homeless shelters, community health care, housing groups
and elder support. As of 2008, the
number of nonprofits supported
Volunteers put together a slide at a Supergrounds playscape site.
21
through this program rose to 160.
By collaborating with local media
outlets, these organizations have
also received close to $2 million in
television and print exposure and
more than 5,000 public services
announcements in 2008. These
three components – grants, media
exposure and volunteerism – provide
sustainability and build capacity by
addressing long-term needs.
Gear for Grades
Formerly known as Tools for School,
this footprint-wide program partnered with nonprofit agencies, local
governments and media organizations to provide more than 28,000
backpacks filled with notebooks,
crayons and pencils to children
Illinois colleagues help generate excitement for the Making Music Matter program by
cheering on donors who spun the Charter One prize wheel.
before they returned to school in the
One and YMCA volunteers at the
fall. The need for basic supplies to
Charter One Pavilion at Northerly
help children succeed in school has
Island, Chicago’s premier lakefront
increased, creating an even-greater
music venue.
strain on already-struggling families.
Fifth grader Myra Bessette helps Citizens
Bank colleagues Brigitte Ritchie (left) and
Ronda Robbins unload a van full of backpacks and school supplies destined for
children staying at COTS family shelters
in Vermont.
22 commu n ity i nvolvement
Making Music Matter
In 2008, Charter One’s Making
Music Matter program generated
more than $200,000 for the YMCA
of Metropolitan Chicago’s Community Schools initiative, which helps
to address the need for keeping kids
safe and families productively
engaged by providing educational,
supervised programming focused
on positive development for more
than 600 children in the Chicago
area’s most-challenged neighborhoods. Funds were collected from
May through September by Charter
Community Cashback
Launched in July, CFG’s new Commu­
nity Cashback program provides a
$250 grant to an eligible nonprofit
at which a colleague has volunteered at least 50 hours over the
course of one calendar year. More
than 150 Community Cashback
awards have been requested since
the launch of this program, which
RBS expanded to the United States.
This adds up to more than 7,000
volunteer hours.
Give As You Earn
Originally launched in 2007 as the
“Matching Gifts Program,” CFG
adopted the RBS program name,
Give As You Earn, in July 2008.
This expanded program matches
colleagues’ donations to eligible
nonprofit organizations on a 1:2
basis. For every $1 the colleague
donates, an additional $2 is matched,
bringing the total contribution to
the nonprofit to $3. More than
2,500 colleagues have participated
in the program, with a total match
amount of more than $428,000
in 2008.
United Negro College Fund
Education Project
In 2008, CFG awarded $5,000
scholarships to 80 finalists for the
2008-2009 school year. Scholarships
were available to African-American
sophomores and juniors majoring
in business, finance, economics,
accounting, banking, or mathematics
at one of 11 colleges or universities
across the CFG footprint. Those
institutions included the University
of Hartford in Connecticut; Chicago
State University and City Colleges of
Chicago in Illinois; Suffolk University
in Massachusetts; Wayne County
Community College and Wayne State
University in Michigan; West Chester University, Cheyney University,
Temple University and the University of the Sciences in Pennsylvania;
and Rhode Island College.
Carving Out Hunger/Hunger
Initiatives
CFG has established programs
across its footprint to prevent hunger in local communities. These
programs – including Carving Out
Hunger, Harvest for Hunger, Striking
Out Hunger and Kids Can Help –
combine food and monetary donations from CFG, colleagues and
customers with volunteerism to
make a significant impact on thousands of families in need. Charter
One in Michigan launched Summer
Vacation from Hunger, an initiative
to help fight the impact of child
hunger during the summer when
school ends and free or reducedprice lunches are no longer available.
Community Service Sabbatical recipient Kate Lukacs, a Commercial Banking colleague in
Ohio, tutored teen mothers at the Old Stone Center for Education in Cleveland to help
them prepare for their GED tests.
23
Financial Literacy
Here are a few of the ways that
CFG supports financial literacy
across its footprint in New
England, the Mid-Atlantic and
the Midwest:
PENNSYLVANIA – Citizens Bank
of Pennsylvania partnered with
multiple organizations in 2008 to
provide financial literacy workshops to youth at risk, college
students, and low-income families
and individuals. In Pittsburgh,
24 financial literacy workshops
and 38 affordable housing seminars
were held with such partners as
HEARTH, Hosanna House, Junior
Achievement, NeighborWorks
and the Pennsylvania Bankers
Association. Bank colleagues in
the Philadelphia region hosted
financial literacy workshops for
more than 1,300 individuals.
Community partners included
A counselor (left) at NeighborWorks® Western Pennsylvania
provides critical personal budgeting information to a client. NeighborWorks provides financial
literacy programs to more than
3,500 low- and moderate-income
individuals annually.
24 commu n ity i nvolvement
The Enterprise Center, Jewish
Employment & Vocational Service
and the Career Wardrobe.
ILLINOIS – Charter One partnered
with the Chicago-based Center
for Economic Progress and Ladder
Up to provide direct on-site volunteer service at numerous tax
preparation sites to assist underserved, low-income individuals
with free preparation of their
federal and state tax returns, as
well as to promote financial education via one-on-one counseling.
Through these programs, more
than 41,400 low-income individuals and families were assisted
with free tax preparation services
in 2008, providing more than
$54.9 million in federal and state
tax returns – and savings exceeding $10.2 million on tax preparation transaction fees.
MASSACHUSETTS – Citizens
Bank held 40 homebuyer education classes and 25 small-business
seminars. It partnered with the
following groups to provide financial literacy seminars in low
income communities: Organization of New Equality, International
Institute of Boston, Massachusetts
Individual Development Account
Program, Cambridge Housing
Assistance Fund, Citizens Housing
and Planning Association and
the Greater Boston Interfaith
Organization.
NEW HAMPSHIRE – Citizens
Bank held 35 “Basics for Banking”
seminars that reached low- and
moderate-income individuals,
recent immigrants and the elderly.
It also facilitated 15 first-time
homebuyer seminars. Additionally, Citizens Bank has been a
funder of the statewide Individual
Development Account program,
which includes a financial education component for participants.
Citizens Bank supported a variety
of organizations that provide
financial and credit services.
MONEYHELP – In preparation
for the 2009 launch of Money­Help,
the U.S. version of RBS’s MoneySense program, Charter One in
Chicago hosted a training workshop to have branch managers
certified in the FDIC’s Money Smart
financial literacy curriculum. The
FDIC launched Money Smart, now
the standard financial literacy
curriculum of Citizens Financial
Group, in 2001 to serve as a
national financial-education campaign. This comprehensive curriculum is designed to help individuals
outside the financial mainstream
develop financial skills and positive banking relationships.
In an effort to develop the most
accurate picture of what financial
education should look like in the
future, CFG held a market focus
group to gauge consumers’ finance
needs and desire for additional
information. That focus group and
a survey of financial literacy programs in use across the footprint
were catalysts for developing a
new financial education Web site
that will provide individuals with
additional tools and resources
to help them with their personal
finance matters.
F I NAN C I A L R EV I EW
EXECUTI V E L EA D E RS H I P
AN D
B OAR D S O F D I R ECTO RS
Citizens Financial Group, Inc. (“Citizens”) is a wholly owned subsidiary of
The Royal Bank of Scotland Group plc (“RBS”). Citizens’ results are included
in RBS’s financial reports under International Financial Reporting Standards
(“IFRS”). The information contained in the Chairman’s message is consistent
with RBS’s reporting practices, and thus includes only the US Retail and
Commercial Banking unit of Citizens. The information contained in the
Financial Review section is presented in accordance with United States
Generally Accepted Accounting Principles and includes Citizens Financial
Group in its entirety.
25
FI NANC IAL R EVI EW
HIGHLIGHTS
(dollars in millions) Balance Sheet Data:
Total assets Investment securities Loans and leases:
Consumer Residential mortgage Commercial and industrial Commercial real estate Lease financing Credit card Total loans and leases Allowance for loan and lease losses
Goodwill and other intangible assets
Deposits
Federal funds purchased, securities sold
under agreements to repurchase and
short-term borrowings
Borrowed funds
Stockholder’s equity
Operating Data:
Net interest income
Provision for credit losses
Provision for credit losses related to acquisition
Noninterest income
Noninterest expense
Income (loss) before income taxes
Net income (loss)
Net income (loss) excluding acquisition costs,
net of taxes
Other Data:
Return on average tangible assets*
Return on average tangible common equity*
Net interest margin
Allowance for loan and lease losses
as a % of total loans and leases
Allowance for loan and lease losses
as a % of nonperforming loans and leases
Nonperforming loans and leases
as a % of total loans and leases
Capital ratios
Risk-based capital ratios:
Tier 1
Total
Leverage ratio
*Return excludes acquisition costs, net of taxes
26
2008 2007 December 31
2006 2005 2004
$159,925 27,909 $159,940 28,078 $160,831 29,449 $157,335 33,752 $138,360
29,979
53,701 15,283 25,293 10,915 3,364 2,475 111,031 55,125 18,222 22,501 9,817 2,993 2,404 111,062 54,921 18,433 18,302 8,618 2,763 2,569 105,606 54,135 17,427 15,614 8,170 2,944 2,514 100,804 46,440
13,588
13,346
8,255
3,323
2,079
87,031
1,731
12,021
94,606
978
13,701
102,197
757
13,744
99,955
827
13,947
99,942
956
14,223
92,960
5,401
34,926
19,952
14,594
17,555
22,351
10,267
24,451
23,548
9,844
23,149
22,053
6,468
13,600
20,850
2005
2004
2008
Years ended December 31
2007
2006
$4,035
1,932
–
2,108
4,970
(759)
(930)
$4,054
683
–
2,132
3,229
2,274
1,489
$3,950
331
–
2,024
3,074
2,569
1,668
$3,970
239
–
1,918
3,378
2,271
1,489
$2,983
238
74
1,172
2,282
1,560
1,020
(930)
1,500
1,696
1,717
1,088
(0.62)%
(13.13)
2.84
1.02%
18.23
2.82
1.16%
22.92
2.83
1.28%
29.36
3.14
1.19%
36.37
3.46
1.56
0.88
0.72
0.82
1.10
154
154
217
246
364
1.01
0.57
0.33
0.33
0.30
9.15
11.22
6.96
9.13
10.97
6.91
9.98
11.80
7.30
8.85
10.83
6.33
8.23
10.61
5.95
Summary
In 2008, Citizens reported a net loss of
$930 million, compared to net income
in 2007 of $1,489 million. Included in
2008’s results was a goodwill impairment
charge totalling $1,510 million pre-tax
($1,395 million after-tax). Excluding this
non-cash expense, Citizens would have
reported net income of $465 million.
Furthermore, the charge has no effect
on Citizens’ regulatory capital ratios.
In addition, the provision for credit
losses increased from $683 in 2007 to
$1,932 million in 2008. The additional
provision for loan and lease losses reflects
higher charge-offs and an increase in
reserves for losses in the current uncertain economy.
Financial Condition
Total assets were $159.9 billion at Decem­
ber 31, 2008 and December 31, 2007.
Loans and leases at December 31,
2008 were $111.0 billion compared to
$111.1 billion at December 31, 2007.
An increase in commercial loans of
$4.3 billion was offset by a similar
decline in consumer loans and residential mortgages.
Goodwill and other intangible assets
at December 31, 2008 and 2007 were
$12.0 billion and $13.7 billion, respectively. The decline is due to the goodwill
impairment charge and amortization
of other intangible assets.
Total deposits at December 31, 2008
were $94.6 billion, compared with
$102.2 billion at December 31, 2007.
The overall decrease of $7.6 billion was
due primarily to an $8.5 billion decrease
in higher-cost term deposits, partially
offset an increase in checking balances.
Capital Resources and Liquidity
Citizens continues to maintain strong
capital levels. At December 31, 2008,
Citizens’ leverage and total risk-based
capital ratios were 6.96% and 11.22%,
respectively. Both measures are an
improvement over 2007, which were
6.91% and 10.97%, respectively. Citizens
was deemed “well capitalized” at
December 31, 2008 and 2007, based
upon regulatory definitions.
Liquidity at Citizens is maintained to
provide reliable, stable and cost effective sources of funding for asset growth
and deposit fluctuations. Primary sources
of liquidity are derived from growth in
retail deposits, loan repayments and
earnings. Additional sources of liquidity
available to fund asset growth, include
the sale or pledging of Citizens’ investment portfolio, secured borrowings
from the Federal Home Loan Bank and
Federal Reserve Bank, and borrowings
from RBS.
Asset Quality and the
Allowance for Loan and Lease Losses
Nonperforming loans and leases
totalled $1,125 million at December 31,
2008 compared to $636 million at
December 31, 2007. Nonperforming
loans and leases were 1.01% and 0.57%
of total loans and leases at December
31, 2008 and 2007, respectively. Other
real estate owned was $54 million at
December 31, 2008, up $8 million from
December 31, 2007. Total nonperforming assets as a percent of total assets
were 0.73% and 0.43% at December 31,
2008 and 2007, respectively.
Citizens’ allowance for loan and lease
losses was $1,731 million at December
31, 2008, compared to $978 million
at December 31, 2007. The ratio of
allowance to total loans and leases was
1.56% at December 31, 2008 compared
to 0.88% at December 31, 2007. Net
charge-offs were $1,175 million for the
year ended December 31, 2008 compared
to $520 million for the same period in
2007. For the year ended December 31,
2008, Citizens recorded provision for
credit loss expense of $1,932 million
compared to $683 million for the year
ended December 31, 2007.
Results of Operations
Net loss was $930 million for the year
ended December 31, 2008, compared to
net income of $1,489 million for the
year ended December 31, 2007.
Net interest income for the twelvemonth period ended December 31, 2008
was $4,035 million, and was essentially
flat compared to $4,054 million for the
same period in 2007. Declining interest
rates resulted in a reduction in both
interest income and interest expense of
approximately $1 billion. The net interest margin increased slightly to 2.84%
for the year ended December 31, 2008
from 2.82% in 2007.
Non-interest income was $2,108 million for the year ended December 31,
2008 compared to $2,132 million for the
same period in 2007, a decrease of $24
million. The decrease mainly resulted
from the absence of gains reported in
2007, partially offset by increases in
credit card fees, international fees and
investment services revenue.
Non-interest expense was $4,970 million for the year ended December 31,
2008 compared to $3,229 million for the
same period in 2007. The increase of
$1,741 million resulted primarily from a
non-cash goodwill impairment charge of
$1,510 million. The remaining increase
of $231 million is mainly the result of
increases in salaries and employee benefits, and other operating expenses.
27
FI NANC IAL R EVI EW
C O N S O L I D AT E D S TAT E M E N T S O F O P E R AT I O N S
(in millions) Interest Income:
Interest and fees on loans and leases:
Consumer Commercial and industrial
Residential mortgage
Commercial real estate Credit card
Loans held-for-sale
Investment securities
Federal funds sold and securities purchased under agreements to resell
Interest-bearing deposits
Total interest income
Years Ended December 31,
2008 2007
$3,114 1,343
952
514
229
17
1,420
1
16
7,606
$3,567
1,523
1,008
637
248
46
1,528
93
12
8,662
Interest Expense:
Deposits
Federal funds purchased, securities sold under agreement to repurchase and
short-term borrowings
Borrowed funds
Total interest expense
Net interest income
Provision for credit losses
Net interest income after provision for credit losses
2,117
3,093
574
880
3,571
4,035
1,932
2,103 527
988
4,608
4,054
683
3,371
Noninterest Income:
Service charges on deposits
Credit card fees
ATM and debit card
International fees
Other net gains
Investment services revenue
Customer derivatives
Other service fee income
Bank-owned life insurance
Net gains on sales of securities available-for-sale
Mortgage banking
Trust income
Other income
Total noninterest income
725
408
296
118
110
85
68
63
51
43
31
31
79
2,108
724
380
286
88
228
70
61
62
53
8
45
28
99
2,132
Noninterest Expense:
Salaries and employee benefits
Outside services
Equipment expense
Occupancy
Promotional expense
Goodwill impairment
Amortization of intangibles
Acquisition costs
Other operating expense
Total noninterest expense
Income (loss) before income taxes
Provision for income taxes
Net Income (Loss)
1,588
385
353
328
107
1,510
204
—
495
4,970
(759)
171
($930)
1,488
414
318
311
107
—
203
18
370
3,229
2,274
785
$1,489
28
FI NANC IAL R EVI EW
C O N S O L I D AT E D B A L A N C E S H E E T S
(in millions, except share data)
Assets:
Cash and due from banks
Interest-bearing deposits in banks
Trading account assets
Securities available-for-sale, at fair value
Other investment securities
Loans held-for-sale, at lower of cost or fair value
Loans and leases
Less: Allowance for loan and lease losses
Net loans and leases
Goodwill
Other intangibles
Derivative assets
Deferred taxes, net
Premises and equipment
Bank-owned life insurance
Accrued interest receivable
Mortgage servicing rights
Federal, state and local income taxes receivable
Other assets
Total Assets
Liabilities And Stockholder’s Equity:
Liabilities:
Deposits
Federal funds purchased, securities sold under agreements to repurchase,
and short-term borrowings
Borrowed funds
Derivative liabilities
Federal, state and local income taxes payable
Other liabilities
Total Liabilities
Stockholder’s Equity:
Preferred stock:
$1.00 par value, 30,000 shares authorized, 15,850 shares issued and
outstanding in 2008 and 2007
Common stock:
$.01 par value, 5,000 shares authorized, 2,855 shares issued and
outstanding in 2008 and 2007
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total Stockholder’s Equity
Total Liabilities and Stockholder’s Equity
December 31,
2008
2007
$3,059
197
12
26,520
1,377
138
$2,282
231
7
26,880
1,191
614
111,031
1,731
109,300
111,062
978
110,084
11,709
312
1,838
1,227
1,143
1,134
671
113
—
1,175
$159,925 13,188
513
518
101
1,132
1,095
955
136
181
832
$159,940
$94,606
$102,197
5,401
34,926
3,311
86
1,643
139,973
14,594
17,555
1,333
417
1,493
137,589
1,585
1,585
—
15,223
5,576
(2,432)
19,952
$159,925
—
15,223
6,506
(963)
22,351
$159,940
29
EX E C UTIV E COMMI TTEE*
Ellen Alemany
Chairman and
Chief Executive Officer
James G. Connolly
President
Nick Balamaci
Head of Corporate Affairs
Martin Bischoff
Vice Chairman
Consumer and
Business Banking
David Bowerman
Head of Manufacturing
Brad L. Conner
Vice Chairman
Consumer Finance
Jay Cook
Chief Risk Officer
Norman J. DeLuca
Head of Global
Transaction Services
John Fawcett
Chief Financial Officer
Sheldon Goldfarb
Chief Legal Officer
Evelyn Tressitt
Chief Human Resources Officer
*All members of the Executive Committee
also serve on the Executive Leadership
Group (p. 31)
30
EX E C UTIV E LEADERSH I P GROU P*
Our company’s senior management team:
David S. Anderson
Executive Vice President
Controller
Richard M. Barry
President
Connecticut
Joel J. Brickman
General Counsel and Secretary
Lucille A. Cavan
Executive Vice President
Human Resources – Consumer
and Business Banking
Barbara S. Cottam
Senior Vice President
Director of Public Affairs and
Community Relations
Kenneth J. Deveaux
Senior Vice President
Global Transaction Services
Joseph Dewhirst
Group Executive Vice President
Treasurer
Cindy M. Erickson
Senior Vice President
Human Resources –
Manufacturing
Daniel K. Fitzpatrick
President and
Chief Executive Officer
Eastern Pennsylvania,
New Jersey and Delaware
James P. Gaspo
President
New York
James J. Gifas
Senior Vice President
Head of GTS Solutions
Global Transaction Services
Michael J. Gleason
Executive Vice President
Government Banking
Commercial Markets
Neil Grassie
Head of Group Property
Edward O. Handy III
President
Commercial Real Estate Finance
Paul J. Hanlon
Executive Vice President
Head of Technology Services
Manufacturing
Thomas M. Metzger
Group Executive Vice President
Chief Operating Officer – Risk
Robert E. Smyth
President
Massachusetts
Michael Millard
Executive Vice President
Director, CCO Investment Services
Consumer and Business Banking
Ian J. Stewart
Executive Vice President
Human Resources – Commercial
and Consumer Finance
Paul J. Howard
Executive Vice President
Chief Credit Officer
Tony Moscrop
Head of Operational Support
and Development
Manufacturing
Risa Katz
Head of Corporate Financial
Planning and Analysis
Joseph F. Nemia
President
Commercial Finance
Ian Stuttard
President and
Chief Executive Officer
RBS WorldPay
Global Transaction Services
James E. Kivlehan
Executive Vice President
Head of Business Development
and Analytics
Consumer Finance
Christine Noel
Senior Vice President
Director of Public Affairs and
Community Relations
U.S. Retail and Commercial
Bradford B. Kopp
Group Executive Vice President
Strategy and Acquisitions
Ralph J. Papa
Chairman
Pennsylvania
Daniel J. Landers
President
RBS Business Capital
Commercial Finance
Marc A. Paulhus
President
RBS Asset Finance
Commercial Finance
Mark Links
RBS Head of Audit
Sandra Pierce
President
Michigan
Joseph A. Hoffman
President
RBS Cards
Consumer Finance
Michael R. Lofgren
­Senior Vice President
Chief Procurement Officer
Manufacturing
Grant Lyall
Head of Operational Risk
Joseph J. MarcAurele
President
Rhode Island
Kenneth B. Martin
Executive Vice President
Business Banking
Consumer and Business Banking
Robert D. Matthews Jr.
Vice Chairman
Commercial Markets
Theresa M. McLaughlin
Group Executive Vice President
Chief Marketing Officer
Consumer and Business Banking
Denise M. Menelly
Vice Chairman
Manufacturing
Jay Plum
President
Home Lending Solutions
Consumer Finance
Wahida Plummer
Planning and
Administration Officer
Scott C. Swanson
President
Illinois
Maria Tedesco
Group Executive Vice President
Retail Banking
Consumer and Business Banking
Geoffrey C. Thomas
Executive Vice President
Product Marketing
Consumer and Business Banking
Hal R. Tovin
Group Executive Vice President
Retail Partnership Delivery
Consumer and Business Banking
Kevin M. Walsh
Senior Vice President
Sales Director
Consumer Finance
Stephen R. Woods
Executive Vice President
Mid-Corporate Banking
Commercial Markets
Peter Reynolds
Head of Regulatory Risk
Joanna M. Robbins
Senior Vice President
Human Resources – Global
Transaction Services
Sean Rowles
Executive Vice President
Chief Credit Officer
Consumer Finance and
Business Banking
Cathleen A. Schmidt
President
New Hampshire and Vermont
*Also includes all members of the
Executive Committee (p. 30)
31
B OAR DS OF DI R ECTORS
Citizens Financial Group, Inc.
and RBS Citizens, N.A.
A DV I S O RY B OA R D S
Rhode Island and Connecticut
Massachusetts
Ellen Alemany
Chairman and Chief Executive Officer
Citizens Financial Group, Inc.
RBS Americas
Joseph J. MarcAurele‡
President, Citizens Bank, Rhode Island
Robert E. Smyth
President, Citizens Bank, Massachusetts
Richard M. Barry†
President, Citizens Bank, Connecticut
Rev. Dr. Ray Hammond
Pastor
Bethel A.M.E. Church
Lawrence A. Aubin Sr.‡
President
Aubin Corporation
Gary R. Kaneb
Chief Financial Officer
H.P. Hood LLC
Edmond J. English
Chief Executive Officer
Bob’s Discount Furniture
John J. Bowen
President
Johnson & Wales University
William P. Hankowsky
Chairman, President & CEO
Liberty Property Trust
Dr. Robert L. Carothers
President
University of Rhode Island
Charles J. (“Bud”) Koch
Former Chairman, President & CEO
Charter One Bank
Thomas J. Celona
President
Thrifty Car Sales
Dr. Graham B. Spanier
President
The Pennsylvania State University
Edward Crowley
President and Chief Operating Officer
Dichello Distributors
Cathleen A. Schmidt
President, Citizens Bank, New Hampshire
and Vermont
Shivan S. Subramaniam
Chairman and Chief Executive Officer
FM Global
David A. Duffy
Chairman
Rhode Island Convention Center Authority
Michael J. Gleason
Executive Vice President
Director of Government Banking
RBS Citizens, N.A.
Citizens Bank of Pennsylvania
David M. Hirsch
Chairman and Chief Executive Officer
Vertex Distribution
Ralph J. Papa
Chairman
Daniel K. Fitzpatrick
President, Eastern Pennsylvania,
New Jersey and Delaware
Lynn Fusco Hughes
President
Fusco Corporation
Dr. Kim L. Allen
Owner
A Friend of the Family, Inc.
Robert L. McCabe
Former Chairman, President and
Chief Executive Officer
Narragansett Electric Company
David W. Curtis
Executive Vice President
Leon N. Weiner & Associates, Inc.
Rev. Brian J. Shanley, O.P.‡
President
Providence College
Howard W. Hanna III
Chairman
Howard Hanna Real Estate Services
Dr. Lynda B. Smith
Stanley A. Lowe
President
Pittsburgh Neighborhood Preservation
Services
Dian C. Taylor
President and Chief Executive Officer
Artesian Water Company
Judith M. von Seldeneck
Chairman and Chief Executive Officer
Diversified Search Ray & Berndtson
†Connecticut Advisory Board only
‡Rhode Island Advisory Board only
32
John D. McClellan
Managing Director
Thomas H. Lee Partners, LP
Clayton H.W. Turnbull
President
The Waldwin Group
New Hampshire
Stephen P. Barba
Executive Director of University Relations
Plymouth State University
Editor: Ken Franckling Design: Gilbert Design Associates, Inc. Principal Photographer: David O’Connor Printing: Dynagraf
James G. Connolly
President
Citizens Financial Group, Inc.
RBS Citizens, N.A.
W
e would like to thank the following
great customers, and thousands of
others, for expanding their business
with us over the past year. . .
FirstGroup America
As the leading provider of student
transportation in the United
States, FirstGroup America carries
approximately 3.3 million children
every day on its fleet of 45,000
yellow school buses. The company,
headquartered in Cincinnati, Ohio,
is a subsidiary of FirstGroup plc
located in Aberdeen, Scotland.
FirstGroup plc is the world’s leading
transport operator, servicing
more than 2.5 billion passengers
annually and is a long-standing
client of the RBS Group in the
United Kingdom. Its U.S.-based
division includes First Student,
First Transit, and Greyhound.
In October 2007, FirstGroup plc
completed the acquisition of
Laidlaw International, Inc.,
increasing the scope of its U.S.
operations and accelerating the
need for new capital investment
for the acquisition of new school
buses. RBS Asset Finance, working closely with RBS’s London
team, addressed FirstGroup’s
financing needs by outlining the
significant benefits of the U.S.
lease market, such as a good
source of term liquidity, low aftertax funding cost, and the ability
to provide greater access to the
capital markets.
FirstGroup’s capital needs were
addressed through a $150 million
TRAC lease facility with RBS Asset
Finance serving as lead arranger
for syndicating various tranches
with multiple investors.
“Royal Bank of Scotland’s vision
and ability to see it through
provided us with an important
new source of liquidity during
challenging financial conditions,”
said Janet Neidhard, FirstGroup
America’s Treasurer. ”The team
approach to implementation
proved to be an effective strategy
as they guided us through the
details of each funding.”
RBS Asset Finance Senior Documentation
Coordinator Katherine Dickenson;
Brian Beechem, Director of Operational
Taxes at FirstGroup America; Senior Vice
President Max Haviland of RBS Asset
Finance; and Michael Murray, CEO and
President of FirstGroup America.
$30,000,000
$25,000,000
$150,000,000
Secured Line of Credit plus
Cash Management, Deposit,
Foreign Exchange and
Merchant Processing Services
Interest-Rate Risk Management
on Floating Rate Line of Credit
TRAC Lease Facility,
Lead Arranger
– FOR –
– FOR –
– FOR –
$7,000,000
$20,000,000
$145,500,000
Revolving Lines of Credit plus
Cash Management, Deposit,
Commercial Card, Foreign Exchange and
Investment Management Services
Credit Facilities plus Cash Management, Merchant Services and
Commercial Card Services
Liquidity Facilities for
Lucas Oil Stadium completion and
Indiana Convention Center expansion
– FOR –
– FOR –
– TO –
$25,000,000
$9,850,000
$25,000,000
Asset-Based Credit Facility plus
Cash Management Services
Mortgage and Revolving Credit Facilities
– FOR –
Allard Nazarian Group
d/b/a Granite State Manufacturing
Line of Credit plus Cash Management,
Commercial Card, Deposit,
Equipment Leasing and
Merchant Card Processing Services
$35,000,000
Credit Facilities
plus Deposit and
Interest-Rate
Risk Management
Services
– FOR –
– FOR –
Depository and
Cash Management Services
Credit Facilities and
Syndication Agent
– FOR –
– FOR –
$100,000,000
$25,000,000
– TO –
$7,400,000
Credit Facilities plus Cash Management,
Deposit and Interest-Rate
Risk Management Services
– FOR –
Credit Facility,
Agent and Lead Bank,
plus Cash Management,
Deposit, Global Trade
and Interest Rate
Protection Services
– FOR –
Credit Facilities plus
U.S. Cash Management Services
– FOR –
Aegis Media Americas
$100,000,000
Letter of Credit
– FOR –
$36,500,000
$275,000,000
Credit Facilities, plus Cash Management,
Deposit, Interest-Rate Risk Management
and Trade Services
Acquisition Credit Facility,
Agent and Lead Bank,
plus Cash Management Services
– FOR –
– FOR –
Genesis Worldwide II d/b/a
$250,000,000
$18,400,000
Credit Facilities plus
Cash Management, Deposit and
Foreign Exchange Services
Letter of Credit and Interest-Rate Swap
for tax-exempt bond transaction
to fund new athletic center
and other improvements at
Credit Facility, agent,
plus Interest-Rate
Risk Management Services
– FOR –
– FOR –
$54,200,000
$6,000,000
$32,000,000
Construction Loan, Agent and Lead Bank,
for Parc Huron luxury apartment tower
plus Deposit and Interest-Rate
Risk Management Services
Credit Facilities and Acquisition Financing
plus Cash Management and
Corporate Credit Card Services
Line of Credit for Working Capital and
Term Financing plus Cash Management,
Foreign Exchange, Interest-Rate Risk
Management and Lease Financing Services
– TO –
– FOR –
– FOR –
$11,500,000
$80,000,000
$6,862,000
Lines of Credit plus
Cash Management and
Interest-Rate Risk Management Services
Acquisition Credit Facility,
Agent and Lead Bank, plus
Cash Management, Deposit and
Interest-Rate Risk Management Services
Credit Facilities plus
Interest Rate Risk Management Services
– FOR –
– FOR –
– FOR –
The ENT Center of Rhode Island, LLC
$3,225,000
Construction Loan for
Cold-Storage Warehouse
– FOR –
Working Capital Facility
plus Cash Management,
Deposit and
Foreign Exchange Services
– TO –
$8,250,000
Letter of Credit for Bond Financing
– FOR –
One Citizens Plaza
Providence, Rhode Island
02903
Our Credo
Customers
Treat the customer the way we would enjoy being
treated all the time.
Citizens Financial Group’s Annual
Report is printed on Environment®
Paper. This 100 percent recycled paper
reduces solid waste disposal and lessens
landfill dependency. By utilizing this paper:
Colleagues
Do what it takes to make our company the best
place to work in the world.
• 300 trees were preserved for the future.
Community
Show that we care deeply about the community
and the environment. Conduct ourselves ethically
at all times as we deliver for our shareholders.
•8
66 pounds of waterborne waste
were not created.
•2
12,520,400 BTUs of energy
were conserved.
•1
4,101 pounds of solid waste
were not generated.
•1
27,450 gallons of wastewater flow
were saved.
•2
7,765 net pounds of greenhouse gases
were prevented from forming.
CFG2008
*See the full Credo on p. 19.