Company: CFG-PE
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000759944-25-000108
Chunk: 70

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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$1,269 $940 $2,209 $1,269 $940 $2,209 During the six months ended June 30, 2025, net charge-offs of $367 million and a provision for expected credit losses of $317 million resulted in a decrease of $50 million to the ACL.During the first quarter of 2025, the Company entered into an agreement to sell $1.9 billion of Non-Core education loans and subsequently reclassified these loans to LHFS. Upon reclassification to LHFS, a $25 million charge-off was recognized. This transaction will settle ratably each quarter throughout 2025, of which approximately $800 million has settled to date, and the remaining $1.1 billion to be settled in the second half of 2025.As of June 30, 2025, the Company’s ACL economic forecast over a two-year reasonable and supportable period reflects the economy going into a shallow two quarter contraction inclusive of uncertainties related to the implementation of tariffs and protectionist trade policies, inflationary pressures, and geopolitical tensions. This forecast is generally applied to the retail and commercial and industrial portfolios and projects peak unemployment of approximately 5.2% and a start-to-trough real GDP decline of approximately 0.5%, compared to peak unemployment of approximately 5.1% and a start-to-trough real GDP decline of approximately 0.4% at December 31, 2024. More severe economic scenarios are applied within the CRE portfolio, such as general office, with peak unemployment of approximately 9.3% and a start-to-trough real GDP decline of approximately 4.4% at June 30, 2025 and December 31, 2024.

Citizens Financial Group, Inc. | 47

The following table presents a summary of changes in the ACL for the three and six months ended June 30, 2024:Three Months Ended June 30, 2024Six Months Ended June 30, 2024(dollars in millions)CommercialRetailTotalCommercialRetailTotalAllowance for loan and lease losses, beginning of period$1,234 $852 $2,086 $1,250 $848 $2,098 Charge-offs(100)(123)(223)(202)(252)(454)Recoveries4 35 39 21 68 89 Net charge-offs(96)(88)(184)(