Secure online banking, a quest towards joint responsibilities
CITIZENS FINANCIAL GROUP - Citizens Bank: Secure Online Banking
Transcript of CITIZENS FINANCIAL GROUP - Citizens Bank: Secure Online Banking
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
HIGHLIGHTSUnprecedented 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 activi-
ties 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 connec-
tion – 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 family-
focused 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 Report-ing 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.
2008
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 pro-file. 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, gen-erate 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 contrib utor to RBS’s earnings, and improve the Group’s geographic balance and growth opportunities.
C H A I R M A N ’ S M E S S A G E
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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.
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 pro-vide industry-leading banking ser-vices, 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 Money-HelpSM 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 electroni-cally to the bank via a secure Inter-net connection. It saves them the time spent traveling to and from their bank branch, and offers valu-able float benefits by getting depos-its 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-
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2008RBS’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 good will writedowns and restructuring charges caused by the worsening of economic condi-tions 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 custom-ers decreased because of the slow-ing economy and prudent under-writing 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 per-cent 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 commer-cial banking business, write-downs on mortgage servicing rights and
the added cost of managing prob-lem loans. Our impairments were 184 percent higher than in 2007 at $1.93 billion, reflecting the dete-rioration in economic conditions.
In the fourth quarter of 2008, we also took steps to exit certain markets whose prospects for growth or market position did not meet our goals. We sold 18 branches in the Adirondacks region of upstate New York to Community Bank System; and we sold the Indiana branch banking network, consisting of 65 branches, and the Indiana business banking and regional banking activities, to Old National Bank. The latter transaction closed in March 2009.
The savings from these and other efficiency moves is being rein-vested in marketing, sales initiatives and more-robust technology that will enable us to better serve our customers through our community-based delivery model.
New initiatives Citizens formed an Innovation Team, in partnership with RBS, to strengthen our ability to deliver new ideas that meet the changing needs of our customers – and ensure that the products and services we provide remain competitive.
Green$ense, an industry-first incentive program, is a terrific exam-ple: 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 cus-tomer at the heart of everything that we do, our innovative service and support will evolve with cus-tomer needs and help fuel our com-pany’s future growth and successes. We will continue to invest in tech-nology, marketing and sales initia-tives to make that happen.
nections that CFG has with such institutions as Bank of China.
Finally, Our Credo, codified seven years ago to summarize CFG’s long-standing corporate values, was updated to reflect such key business principles as diversity, environmen-tal responsibility and accountability to stakeholders.
Executive LeadershipSince 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-
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 advi-sory board and the Citizens Charita-ble Foundation, leading our outreach efforts in the community.
Colleague InitiativesWe continue to support our col-leagues through a variety of best-practice 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 bene-fits programs:
• Homes for Working Families honored Citizens with a Pioneer Award for leadership in employer-assisted 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.
• 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 foun-dation’s overall ranking.
Community InitiativesThe communities in which we live and work are under more stress than ever – and we continue to sup-port them with programs and fund-ing that help meet their needs. Two major initiatives that we began in
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2008 include Supergrounds, an alli-ance with city officials and local nonprofits to create or rehabilitate playground sites in low- and moder-ate 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 futureWe 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 AlemanyChairman and Chief Executive OfficerCitizens Financial Group, Inc. and RBS Americas
James G. ConnollyPresident
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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, Presi-dent 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 market-place as it expanded throughout New England, and into the Mid-Atlantic 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 cod-ified 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 Commu-nity Service Sabbatical program, Champions in Action®, Colleague Appreciation Week, a personal and corporate commitment to improved educational, advocacy and natural-ization 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 enrich-ing 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 chil-dren 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 under-standing that being successful and caring are not mutually exclusive. Nor should they be.
Best wishes in all of your future endeavors, Larry.
A TributeL A R R Y F I S H’S V I B R A N T L E G A C Y
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.
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.
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 interna-
tional 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 owner-
ship 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.
Middle-Market Banking
Citizens Bank and Charter One
Middle-Market relationship
managers are dedicated to develop-
ing 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 formida-
ble economic conditions.
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Corporate Banking
Vera Bradley is an internationally
known designer and manufac-
turer 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 feminine-
looking 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 estab-
lished a Wholly Owned Foreign
Enterprise (WOFE). We took the
opportunity to highlight our inter-
national capabilities/partnership
and quickly arranged a conference
call with Rose Askin. Askin worked
closely with Vera Bradley’s local
manager and the overseas branch
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.
Vera Bradley Designs Inc.
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 Bank-
Charter One market, an interna-
tional team is a key differentiator
from our competitors – and
one we plan to use extensively
in 2009.
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Mid-Corporate Banking
Working tirelessly to build and
strengthen our relationships with
corporations generating annual
revenues from $500 million to
$2 billion, Mid-Corporate relation-
ship managers develop a thorough
understanding of our customers’
complex needs in an intensely
competitive international market-
place now rife with instability.
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 relation ship 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 Administra-tive Agent for NCO’s senior debt facilities.
With relationship managers
located throughout New England,
the Mid-Atlantic and the Midwest,
we have the competitive advantage
of proximity to our customers,
an important factor in these trying
and uncertain times. This proximity,
combined with a long-term focus
on relationships and access to a
wide array of global products and
services has made our relationship
managers the trusted advisors to
whom our clients turn.
Government Banking
The Government Banking division
is the primary sales, marketing
and service-delivery group to gov-
ernment 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
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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, work-
ing capital and liquidity, and bal-
ance sheet management. Industry-
specific experts cover business
aviation, structured products and
indirect sales.
Global Transaction Services –
Cash Management
Business today requires even
smaller companies to manage cash
on a worldwide basis. Efficien cies
are harder to come by, and compa-
nies need to control an increasingly
complex web of trans actions. At the
same time, the pressure is escalat-
ing 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 flexi-
bility to meet your demands, no
matter how complex or geographi-
cally wide-ranging. CFG’s Global
Transaction Services is a top-five
global cash manager because of our
leading product range and exten-
sive geographical coverage.
From single proprietorships to
large multi-national clients, our
domestic and international services
are designed to accelerate collec-
tions of accounts receivables,
manage the distribution of funds
and provide enhanced short-term
liquidity.
20 U.S. banks managing public
deposits. At a time when state and
local budgets are under extreme
pressure, our seasoned profession-
als have the expertise and local
regulatory knowledge to meet the
needs of governmental entities.
Our teams provide a range of
services to state governments,
counties, municipalities, public
schools, trustees, commissions,
authorities and districts. They have
proven track records in implement-
ing effective, targeted strategies
for cash management, investment
management, lending and other
banking needs. The need to under-
stand the pressures our government
clients face has never been more
acute. Enhancing that understand-
ing is our active role in the national,
state and local associations that
are important to our clients.
The Indiana Finance Authority
The 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 participa-
tion for Charter One to more than
$145 million. As part of this trans-
action, 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 open-
ing of the Colts’ first home game
in the new facility, which will be
the site of the 2012 Super Bowl.
Upon completion of the Conven-
tion Center expansion, Indianapo-
lis will rank 16th in the nation for
convention space, a goal Charter
One helped the State achieve.
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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.
WL Ross & Co. LLC
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 finan-
cial 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, espe-
cially its Web-based reporting
tools. We felt immediately that
Citizens would make a great part-
ner,” 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.
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 finan-
cial condition of distressed busi-
nesses by utilizing its expertise as
an activist creditor with significant
transaction experience and per-
forming 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, caus-
ing WL Ross to re-think its banking
relationship. Seeking stability and
certainty, CFO Michael J. Gibbons
Aegis Group plc
Citizens’ 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 infra-
structure and innovative, award-
winning liquidity management
solutions quickly resulted in our
being able to meet Aegis’s bank-
ing needs in Asia and North
America. Our proactive and con-
sultative approach, strong support
from the relationship manage-
ment team and a superior solution
resulted in Aegis selecting the
CFG/RBS/ABN AMRO team to
meet its global liquidity manage-
ment needs.
10 c o r p o r a t e b a n k i n g
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 busi-
nesses in which we have a noted
expertise include account ing and
law firms, energy and utilities,
fuel distribution, insurance, not-for-
profit/health care, private equity
firms, publishing, security alarm,
service industry franchises and
technology banking.
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.
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 leader-
ship of School Leader Timothy
Green.
The school celebrated a 100 per-
cent graduation rate in 2008,
with many students continuing
their education in college or voca-
tional 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.
Allen Academy
Leona turned to Neran Shaya of
Charter One’s Not-for-Profit/
Health Care team for a working-
capital 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.”
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.
Necessity was the catalyst for
creating SmartPak Equine LLC.
The Plymouth, Massachusetts
company was founded in 1999
when owner Becky Minard discov-
ered that her horse Westley
wasn’t getting his daily supple-
ments consistently at her board-
ing 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 devel-
oped 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 busi-
ness 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 execu-
tives 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 pro-
vide financial advice and guidance
as we continue to grow our busi-
ness,” said Minard. “We are a car-
ing company committed to our
clients and their needs – and are
proud to work with a bank that has
the same philosophy as we do.”
SmartPak Equine LLC
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Senior Vice President Marilyn Agulnick-House (center) of Citizens Bank’s Regional Banking Group with SmartPak Equine owners Becky Minard and Paal Gisholt, and Becky’s horse, Westley.
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 transac-
tion sizes – from a basic working-
capital line of credit to a complex,
multi-bank syndication.
Regional Banking
The Regional Banking relationship
managers located through out 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, dedi-
cated 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.
12 c o r p o r a t e b a n k i n g
Wealth Management
We provide customized portfolio
management and trust services
to high-net-worth individuals,
non-profit organizations, corpora-
tions 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.
Global Markets – Interest Rate
Risk Management
Interest rate exposure can be a risk
for any company. Our seasoned
Interest-Rate Risk Management pro-
fessionals assist our clients with
evaluating, structuring, and execut-
ing appropriate rate risk manage-
ment solutions. The team’s approach
is proactive, consultative and
designed to meet borrowers’ objec-
tives 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 combina-
tions and variations of these instru-
The Brack Family
The 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 com-
pany based in Canada, our Wealth
Management team helped the
family through that transition,
meeting with all the family mem-
bers 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 securi-
ties 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 relation-
ship and its lifecycle transforma-
tion, from wealth building on the
commercial side to building a fam-
ily legacy on the investment side,
is a testament to the consistent
superior service and teamwork
that is pervasive throughout CFG.
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 trade-
financing services remains for any
company, large or small, involved
in importing and exporting. Those
services require a thorough under-
standing of cross-border issues.
Full knowledge of regulatory con-
straints and the impact of tax and
accounting codes, as well as com-
plete 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 sup-
ply chain solutions are highly effec-
tive in strengthening the relation-
ships 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.
13
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.
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 Wash-
ington, 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 proj-
ects, and includes many of the
region’s most distinguished prop-
erties throughout the District of
Columbia, Maryland and Virginia.
Citizens has cultivated its relation-
ship with JBG by serving as a
depository, providing cash man-
agement, 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, Corpo-
rate Finance at The JBG Compa-
nies. “Even in the current eco-
nomic conditions, the Citizens
team has been able to provide us
with creative solutions to meet
our business needs and respond
to market challenges.”
The JBG CompaniesCommercial
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 bank-
ers 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 develop-
ment 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.
Exceptional Service Delivered Locally
14
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.
ConnecticutRichard M. BarryPresident
Branches 49 ATMs 67
DelawareDaniel K. FitzpatrickPresident
Branches 26 ATMs 45
IllinoisScott C. SwansonPresident
Branches 102 ATMs 322
MassachusettsRobert E. SmythPresident
Branches 250 ATMs 585
MichiganSandra E. PiercePresident
Branches 111 ATMs 124(also includes commercial loan office in Indiana)
Robert M. CurleyNew York
New Hampshire Cathleen A. SchmidtPresident
Branches 76 ATMs 156(also includes commercial loan office in Maine)
New JerseyDaniel K. FitzpatrickPresident
Branches 15 ATMs 65
New YorkRobert M. CurleyChairman
James P. Gaspo President
Branches 216 ATMs 274
Ohio Sandra E. PierceInterim President
Branches 148 ATMs 169
Pennsylvania Ralph J. PapaChairman
Branches 359 ATMs 648
Daniel K. Fitzpatrick PresidentEastern Pennsylvania(also includes a commercial loan office and 4 ATMs in Virginia)
Rhode IslandJoseph J. MarcAurelePresident
Branches 77 ATMs 151
Vermont Cathleen A. SchmidtPresident
Branches 23 ATMs 24
Richard M. BarryConnecticut
Cathleen A. SchmidtNew Hampshire and Vermont
Daniel K. FitzpatrickEastern Pennsylvania, New Jersey and Delaware
Ralph J. PapaPennsylvania
Joseph J. MarcAureleRhode Island
Scott C. SwansonIllinois
Sandra E. PierceMichigan
Robert E. SmythMassachusetts
15
James P. GaspoNew York
L O C A L L E A D E R S H I P
16
Retail Banking
Delivering world-class service, sup-
port 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 bank-
ing relationship. With Green$ense,
our industry-first rewards program,
our customers are rewarded every
time they pay without paper – earn-
ing up to $120 per year. It also pro-
vides an innovative and competitive
response to the growing expectation
from consumers for an easy, conve-
nient way to reduce their impact on
Brothers Nik (left) and Sonny Wadhwa are high-performing branch managers in the Retail Partnership Delivery Group, running in-store branches in South Attleboro and Easton, Massachusetts, respectively. Both are active in the Massachusetts and Rhode Island Indian communities as ambassadors for Citizens Bank and for RBS.
O U R C O N S U M E R B A N K I N G P H I L O S O P H Y
Customers are at the heart of everything we do. With
an innovative selection of products and services, our
Retail colleagues are dedicated to providing world-class
customer service that will help consumers meet their
individual needs at every stage of life. In that process,
they also build strong and lasting financial relationships.
Consumer and Business Banking
17
the environment. Green$ense
includes automatic enrollment in
e-Statements and free Online Bank-
ing with Bill Pay.
Citizens Bank and Charter One
customers experienced significant
improvements to the way they bank
and pay bills online. Enhancements
such as faster bill payments, easier
navigation and convenient e-bills
have evolved their online banking
experience. Increased convenience,
efficiency and control help custom-
ers utilize the online banking chan-
nel effectively.
Our in-store branch network,
the No. 2 in-store banking franchise
in the country, saw strong growth in
2008. The Retail Partnership Delivery
Group is now a distinct business
line committed to maximizing
growth opportunities by leveraging
its partnerships. Innovative pro-
Donna Price manages Charter One’s Great Lakes Mall branch in Mentor, Ohio.
grams, like ExtraGreen with Stop &
Shop in Rhode Island and the
fuelperks! debit program with Giant
Eagle in western Pennsylvania,
reward customers with savings just
for shopping at their stores and
banking with Citizens Bank. 2008
also saw expanded relationships
with key partners including Acme
Markets in Philadelphia and Stop &
Shop in New York state’s Long Island
and Hudson Valley regions, both
providing added availability of
banking centers for shoppers. Our
in-store partnerships will continue
to be a key driver of growth and
innovation as customers look to us
for the convenience that in-store
banking provides.
In 2008, the residential borrowing
process evolved with the introduc-
tion of the Home Lending Solutions
Center. Through the HLSC’s dedi-
cated team of Home Loan Advisors,
customers now benefit from faster,
more consistent service and sup-
port from highly trained profession-
als who are committed to helping
them find the most suitable prod-
ucts and services to best fit their
home borrowing needs.
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.
When Citizens Bank and Charter
One customers invest with CCO
Investment Services, they can do
so with confidence knowing that
qualified Financial Consultants
are helping custom ers meet their
short- and long-term investment
goals. Whether customers are inter-
ested in estate planning, education
finance or retirement, CCO Invest-
ment 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
of our customers’ credit card needs.
Customers can earn rewards on
their Citizens Bank or Charter One
credit cards just by selecting the
card with the rewards program that
fits their spending habits. In the
summer of 2008, customers received
relief from high prices at the gas
pump with double rewards on pur-
chases made with the Accelerator
Rewards Platinum MasterCard –
that’s nearly $.25 cash back on every
gallon of gas purchased. Debit
Rewards also offers a convenient way
for customers to earn points towards
great gifts just by using their debit
card. Customers can shop like always
and watch rewards add up that can
be redeemed for merchandise,
travel, banking benefits, and once-
in-a-lifetime experiences, just by
banking the way that fits their life.
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
18 c o n s u m e r a n d b u s i n e s s b a n k i n g
that customers need to maximize
their cash flow, minimize banking
fees and build for the future.
Citizens Bank and Charter One’s
new E-Z Deposit remote deposit
service enables customers to make
deposits from their places of busi-
ness by using scanners to image-
capture deposits over a secure Inter-
net connection. It helps reduce the
number of trips to the bank – and
it improves cash flow.
We implemented the Provenir
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 sub-
mit 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
require more personalized service.
This dedicated group offers custom-
ized products and services to help
custom ers manage and grow their
businesses.
Coordinated interaction with
customers by our Business Banking
Officers and Retail Branch teams is
the foundation for the personal
approach that is a hallmark of our
customer service.
Orbis Clinical Vice President Ron Norton, Citizens Bank Business Banking Relation-ship Manager Rich Rougier and Business Banking Officer Caitlin Egan Roos, and Orbis CEO Matt Garceau at the firm’s Woburn, Massachusetts headquarters.
Orbis Clinical LLC
Founded in 2004, Orbis Clinical is a
consulting company that provides
expertise in drug safety, risk man-
agement, regulatory affairs and
quality assurance. These capabili-
ties enable its clients to solve the
key tactical and strategic challenges
they face. Orbis Clinical concen-
trates on delivering flexible, client-
driven solutions to mitigate risk
and ensure regulatory compliance.
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.
“We wanted to focus on maintain-
ing a long-term relationship with
an institution that would be there
to grow with my company
through this tough economic cli-
mate and Citizens best demon-
strated 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 Rela-
tionship 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 dedi-
cated 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 bank-
ing relationships for its executives.
Our Credo
Customers
We will do whatever we can every
day, in every way, to provide world-
class service and consistently
exceed customer expectations. We
will always honor our commitment
to customers and constantly give
them reasons to say “I love dealing
with these people.” We will treat
customers the way we would enjoy
being treated all the time. We will
know our customers and respond
to them rapidly. We will anticipate
their need and make it happen.
Colleagues
We want our company to be the
best place to work in the world. The
environment will be extraordinarily
caring, like an extension of our own
family. We will be supportive in
times of personal difficulty, create
opportunities for professional
growth, and always make an effort
to listen and act on our colleagues’
ideas. We will foster a diverse team
and treat every colleague with
dignity and respect at all times.
Community
We believe great companies have
a moral core. We care deeply
about our communities, and we
demonstrate this commitment
every day by responding where
there is need. We care about the
world’s limited resources and are
committed to their responsible
use. We will be ethical and honest
at all times. By giving back and
conducting ourselves with integrity,
we can make our customers and
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.
19
Assistant Vice President Anna Li, a Financial Consultant at CCO Investment Services, is based at Charter One’s Chinatown Square branch in Chicago.
20
Community Involvement
Supergrounds
Supergrounds, an alliance between
CFG, city officials and local non-
profits to rehabilitate or create
playground sites in low- and moder-
ate-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 Play-
ground in Providence, Rhode Island,
and the P.T. Barnum Housing
Complex playground
in Bridgeport,
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.
21
Connecticut; and transformed two
vacant parcels of land in Codman
Square in Boston’s Dorchester
neighborhood into a vibrant park
for children and residents of all
ages. At the P.T. Barnum site, kids
from the neighborhood were lined
Champions in Action
Through Champions in Action®,
our signature community program
which operates in nine of our mar-
kets, we have directed more than
$4 million along with thousands of
volunteer hours to worthy, smaller
organizations that support impor-
tant local causes – such as youth
services, homeless shelters, com-
munity health care, housing groups
and elder support. As of 2008, the
number of nonprofits supported
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 base-ball fundamentals and teamwork to thousands of children ages 6 to 12, principally from inner-city neighborhoods.
Volunteers put together a slide at a Supergrounds playscape site.
up and ready to play even before
colleagues from Citizens Bank, RBS
Card Services and RBS Greenwich
Capital were done with their work –
cleaning and seeding playing fields,
planting trees, painting benches
and installing a new playscape.
22 c o m m u n i t y i n v o l v e m e n t
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 part-
nered with nonprofit agencies, local
governments and media organiza-
tions to provide more than 28,000
backpacks filled with notebooks,
crayons and pencils to children
One and YMCA volunteers at the
Charter One Pavilion at Northerly
Island, Chicago’s premier lakefront
music venue.
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 volun-
teered 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.
before they returned to school in the
fall. The need for basic supplies to
help children succeed in school has
increased, creating an even-greater
strain on already-struggling families.
Making Music Matter
In 2008, Charter One’s Making
Music Matter program generated
more than $200,000 for the YMCA
of Metropolitan Chicago’s Commu-
nity 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 neighbor-
hoods. Funds were collected from
May through September by Charter
Fifth grader Myra Bessette helps Citizens Bank colleagues Brigitte Ritchie (left) and Ronda Robbins unload a van full of back-packs and school supplies destined for children staying at COTS family shelters in Vermont.
Illinois colleagues help generate excitement for the Making Music Matter program by cheering on donors who spun the Charter One prize wheel.
23
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.
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 Ches-
ter University, Cheyney University,
Temple University and the Univer-
sity of the Sciences in Pennsylvania;
and Rhode Island College.
Carving Out Hunger/Hunger Initiatives
CFG has established programs
across its footprint to prevent hun-
ger in local communities. These
programs – including Carving Out
Hunger, Harvest for Hunger, Striking
Out Hunger and Kids Can Help –
combine food and monetary dona-
tions from CFG, colleagues and
customers with volunteerism to
make a significant impact on thou-
sands 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 reduced-
price lunches are no longer available.
24 c o m m u n i t y i n v o l v e m e n t
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 work-
shops 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
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 volun-
teer service at numerous tax
preparation sites to assist under-
served, low-income individuals
with free preparation of their
federal and state tax returns, as
well as to promote financial edu-
cation via one-on-one counseling.
Through these programs, more
than 41,400 low-income individu-
als 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 exceed-
ing $10.2 million on tax prepara-
tion transaction fees.
MASSACHUSETTS – Citizens
Bank held 40 homebuyer educa-
tion classes and 25 small-business
seminars. It partnered with the
following groups to provide finan-
cial literacy seminars in low
income communities: Organiza-
tion of New Equality, International
Institute of Boston, Massachusetts
Individual Development Account
Program, Cambridge Housing
Financial Literacy
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. Addition-
ally, Citizens Bank has been a
funder of the statewide Individual
Development Account program,
which includes a financial educa-
tion component for participants.
Citizens Bank supported a variety
of organizations that provide
financial and credit services.
MONEYHELP – In preparation
for the 2009 launch of Money Help,
the U.S. version of RBS’s Money-
Sense program, Charter One in
Chicago hosted a training work-
shop 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 cam-
paign. This comprehensive curricu-
lum is designed to help individuals
outside the financial mainstream
develop financial skills and posi-
tive 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 pro-
grams 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.
A counselor (left) at Neighbor-Works® Western Pennsylvania provides critical personal budget-ing information to a client. NeighborWorks provides financial literacy programs to more than 3,500 low- and moderate-income individuals annually.
25
FI NANC IAL R EVI EW
EXECUTIVE LEADERSH I P
AN D
BOAR DS OF DI R ECTORS
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.
26
FI NANC IAL R EVI EW
H I G H L I G H T S
December 31(dollars in millions) 2008 2007 2006 2005 2004
Balance Sheet Data:Total assets $159,925 $159,940 $160,831 $157,335 $138,360 Investment securities 27,909 28,078 29,449 33,752 29,979Loans and leases: Consumer 53,701 55,125 54,921 54,135 46,440 Residential mortgage 15,283 18,222 18,433 17,427 13,588 Commercial and industrial 25,293 22,501 18,302 15,614 13,346 Commercial real estate 10,915 9,817 8,618 8,170 8,255 Lease financing 3,364 2,993 2,763 2,944 3,323 Credit card 2,475 2,404 2,569 2,514 2,079
Total loans and leases 111,031 111,062 105,606 100,804 87,031
Allowance for loan and lease losses 1,731 978 757 827 956Goodwill and other intangible assets 12,021 13,701 13,744 13,947 14,223Deposits 94,606 102,197 99,955 99,942 92,960Federal funds purchased, securities sold under agreements to repurchase and short-term borrowings 5,401 14,594 10,267 9,844 6,468Borrowed funds 34,926 17,555 24,451 23,149 13,600Stockholder’s equity 19,952 22,351 23,548 22,053 20,850
Years ended December 31 2008 2007 2006 2005 2004
Operating Data:Net interest income $4,035 $4,054 $3,950 $3,970 $2,983Provision for credit losses 1,932 683 331 239 238Provision for credit losses related to acquisition – – – – 74Noninterest income 2,108 2,132 2,024 1,918 1,172Noninterest expense 4,970 3,229 3,074 3,378 2,282Income (loss) before income taxes (759) 2,274 2,569 2,271 1,560Net income (loss) (930) 1,489 1,668 1,489 1,020Net income (loss) excluding acquisition costs, net of taxes (930) 1,500 1,696 1,717 1,088
Other Data:Return on average tangible assets* (0.62)% 1.02% 1.16% 1.28% 1.19%Return on average tangible common equity* (13.13) 18.23 22.92 29.36 36.37Net interest margin 2.84 2.82 2.83 3.14 3.46Allowance for loan and lease losses as a % of total loans and leases 1.56 0.88 0.72 0.82 1.10Allowance for loan and lease losses as a % of nonperforming loans and leases 154 154 217 246 364Nonperforming loans and leases as a % of total loans and leases 1.01 0.57 0.33 0.33 0.30Capital ratios Risk-based capital ratios: Tier 1 9.15 9.13 9.98 8.85 8.23 Total 11.22 10.97 11.80 10.83 10.61 Leverage ratio 6.96 6.91 7.30 6.33 5.95
*Return excludes acquisition costs, net of taxes
27
SummaryIn 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 uncer-tain economy. Financial ConditionTotal 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 residen-tial mortgages.
Goodwill and other intangible assets at December 31, 2008 and 2007 were $12.0 billion and $13.7 billion, respec-tively. 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 LiquidityCitizens 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 effec-tive 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’ invest-ment 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 LossesNonperforming 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 nonperform-ing 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 OperationsNet 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 twelve-month 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 inter-est margin increased slightly to 2.84% for the year ended December 31, 2008 from 2.82% in 2007.
Non-interest income was $2,108 mil-lion 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 mil-lion 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 ben-efits, and other operating expenses.
28
FI NANC IAL R EVI EW
C O N S O L I D A T E D S T A T E M E N T S O F O P E R A T I O N S
Years Ended December 31,(in millions) 2008 2007
Interest Income: Interest and fees on loans and leases: Consumer $3,114 $3,567 Commercial and industrial 1,343 1,523 Residential mortgage 952 1,008 Commercial real estate 514 637 Credit card 229 248 Loans held-for-sale 17 46 Investment securities 1,420 1,528 Federal funds sold and securities purchased under agreements to resell 1 93 Interest-bearing deposits 16 12
Total interest income 7,606 8,662
Interest Expense: Deposits 2,117 3,093 Federal funds purchased, securities sold under agreement to repurchase and short-term borrowings 574 527 Borrowed funds 880 988
Total interest expense 3,571 4,608 Net interest income 4,035 4,054 Provision for credit losses 1,932 683
Net interest income after provision for credit losses 2,103 3,371
Noninterest Income: Service charges on deposits 725 724 Credit card fees 408 380 ATM and debit card 296 286 International fees 118 88 Other net gains 110 228 Investment services revenue 85 70 Customer derivatives 68 61 Other service fee income 63 62 Bank-owned life insurance 51 53 Net gains on sales of securities available-for-sale 43 8 Mortgage banking 31 45 Trust income 31 28 Other income 79 99
Total noninterest income 2,108 2,132
Noninterest Expense: Salaries and employee benefits 1,588 1,488 Outside services 385 414 Equipment expense 353 318 Occupancy 328 311 Promotional expense 107 107 Goodwill impairment 1,510 — Amortization of intangibles 204 203 Acquisition costs — 18 Other operating expense 495 370
Total noninterest expense 4,970 3,229 Income (loss) before income taxes (759) 2,274 Provision for income taxes 171 785
Net Income (Loss) ($930) $1,489
29
C O N S O L I D A T E D B A L A N C E S H E E T S
December 31,(in millions, except share data) 2008 2007
Assets: Cash and due from banks $3,059 $2,282 Interest-bearing deposits in banks 197 231 Trading account assets 12 7 Securities available-for-sale, at fair value 26,520 26,880 Other investment securities 1,377 1,191 Loans held-for-sale, at lower of cost or fair value 138 614
Loans and leases 111,031 111,062 Less: Allowance for loan and lease losses 1,731 978
Net loans and leases 109,300 110,084
Goodwill 11,709 13,188 Other intangibles 312 513 Derivative assets 1,838 518 Deferred taxes, net 1,227 101 Premises and equipment 1,143 1,132 Bank-owned life insurance 1,134 1,095 Accrued interest receivable 671 955 Mortgage servicing rights 113 136 Federal, state and local income taxes receivable — 181 Other assets 1,175 832
Total Assets $159,925 $159,940
Liabilities And Stockholder’s Equity:Liabilities: Deposits $94,606 $102,197 Federal funds purchased, securities sold under agreements to repurchase, and short-term borrowings 5,401 14,594 Borrowed funds 34,926 17,555 Derivative liabilities 3,311 1,333 Federal, state and local income taxes payable 86 417 Other liabilities 1,643 1,493
Total Liabilities 139,973 137,589
Stockholder’s Equity: Preferred stock: $1.00 par value, 30,000 shares authorized, 15,850 shares issued and outstanding in 2008 and 2007 1,585 1,585 Common stock: $.01 par value, 5,000 shares authorized, 2,855 shares issued and outstanding in 2008 and 2007 — — Additional paid-in capital 15,223 15,223 Retained earnings 5,576 6,506 Accumulated other comprehensive loss (2,432) (963)
Total Stockholder’s Equity 19,952 22,351
Total Liabilities and Stockholder’s Equity $159,925 $159,940
FI NANC IAL R EVI EW
30
EXECUTIVE COMMITTEE*
Norman J. DeLucaHead of Global Transaction Services
Nick BalamaciHead of Corporate Affairs
Martin BischoffVice ChairmanConsumer and Business Banking
Ellen AlemanyChairman and Chief Executive Officer
James G. ConnollyPresident
Brad L. ConnerVice ChairmanConsumer Finance
Evelyn TressittChief Human Resources Officer
David BowermanHead of Manufacturing
Jay CookChief Risk Officer
John FawcettChief Financial Officer
Sheldon GoldfarbChief Legal Officer
* All members of the Executive Committee also serve on the Executive Leadership Group (p. 31)
31
EXECUTIVE LEADERSH I P GROU P*Our company’s senior management team:
David S. AndersonExecutive Vice PresidentController
Richard M. BarryPresidentConnecticut
Joel J. BrickmanGeneral Counsel and Secretary
Lucille A. Cavan Executive Vice PresidentHuman Resources – Consumer and Business Banking
Barbara S. CottamSenior Vice PresidentDirector of Public Affairs and Community Relations
Kenneth J. DeveauxSenior Vice PresidentGlobal Transaction Services
Joseph DewhirstGroup Executive Vice PresidentTreasurer
Cindy M. EricksonSenior Vice PresidentHuman Resources – Manufacturing
Daniel K. FitzpatrickPresident and Chief Executive OfficerEastern Pennsylvania, New Jersey and Delaware
James P. GaspoPresidentNew York
James J. GifasSenior Vice PresidentHead of GTS SolutionsGlobal Transaction Services
Michael J. GleasonExecutive Vice PresidentGovernment BankingCommercial Markets
Neil GrassieHead of Group Property
Edward O. Handy IIIPresident Commercial Real Estate Finance
Paul J. HanlonExecutive Vice PresidentHead of Technology ServicesManufacturing
Joseph A. HoffmanPresidentRBS CardsConsumer Finance
Paul J. HowardExecutive Vice PresidentChief Credit Officer
Risa KatzHead of Corporate Financial Planning and Analysis
James E. KivlehanExecutive Vice PresidentHead of Business Development and AnalyticsConsumer Finance
Bradford B. KoppGroup Executive Vice PresidentStrategy and Acquisitions
Daniel J. LandersPresidentRBS Business CapitalCommercial Finance
Mark Links RBS Head of Audit
Michael R. Lofgren Senior Vice PresidentChief Procurement OfficerManufacturing
Grant LyallHead of Operational Risk
Joseph J. MarcAurelePresident Rhode Island
Kenneth B. MartinExecutive Vice PresidentBusiness BankingConsumer and Business Banking
Robert D. Matthews Jr.Vice ChairmanCommercial Markets
Theresa M. McLaughlinGroup Executive Vice PresidentChief Marketing OfficerConsumer and Business Banking
Denise M. MenellyVice ChairmanManufacturing
Thomas M. MetzgerGroup Executive Vice PresidentChief Operating Officer – Risk
Michael MillardExecutive Vice PresidentDirector, CCO Investment ServicesConsumer and Business Banking
Tony MoscropHead of Operational Support and DevelopmentManufacturing
Joseph F. NemiaPresidentCommercial Finance
Christine NoelSenior Vice PresidentDirector of Public Affairs and Community RelationsU.S. Retail and Commercial
Ralph J. PapaChairmanPennsylvania
Marc A. PaulhusPresidentRBS Asset FinanceCommercial Finance
Sandra PiercePresident Michigan
Jay PlumPresidentHome Lending SolutionsConsumer Finance
Wahida PlummerPlanning and Administration Officer
Peter ReynoldsHead of Regulatory Risk
Joanna M. RobbinsSenior Vice PresidentHuman Resources – Global Transaction Services
Sean RowlesExecutive Vice PresidentChief Credit OfficerConsumer Finance and Business Banking
Cathleen A. SchmidtPresident New Hampshire and Vermont
* Also includes all members of the Executive Committee (p. 30)
Robert E. SmythPresident Massachusetts
Ian J. StewartExecutive Vice PresidentHuman Resources – Commercial and Consumer Finance
Ian StuttardPresident and Chief Executive OfficerRBS WorldPayGlobal Transaction Services
Scott C. SwansonPresidentIllinois
Maria TedescoGroup Executive Vice PresidentRetail BankingConsumer and Business Banking
Geoffrey C. ThomasExecutive Vice PresidentProduct MarketingConsumer and Business Banking
Hal R. TovinGroup Executive Vice PresidentRetail Partnership DeliveryConsumer and Business Banking
Kevin M. WalshSenior Vice PresidentSales DirectorConsumer Finance
Stephen R. WoodsExecutive Vice PresidentMid-Corporate BankingCommercial Markets
32
BOAR DS OF DI R ECTORS
Citizens Financial Group, Inc. and RBS Citizens, N.A.
Ellen AlemanyChairman and Chief Executive OfficerCitizens Financial Group, Inc. RBS Americas
James G. ConnollyPresidentCitizens Financial Group, Inc. RBS Citizens, N.A.
Edmond J. EnglishChief Executive OfficerBob’s Discount Furniture
William P. HankowskyChairman, President & CEOLiberty Property Trust
Charles J. (“Bud”) KochFormer Chairman, President & CEOCharter One Bank
Dr. Graham B. Spanier President The Pennsylvania State University
Shivan S. SubramaniamChairman and Chief Executive OfficerFM Global
Citizens Bank of Pennsylvania
Ralph J. PapaChairman
Daniel K. FitzpatrickPresident, Eastern Pennsylvania, New Jersey and Delaware
Dr. Kim L. AllenOwnerA Friend of the Family, Inc.
David W. CurtisExecutive Vice PresidentLeon N. Weiner & Associates, Inc.
Howard W. Hanna IIIChairmanHoward Hanna Real Estate Services
Stanley A. LowePresidentPittsburgh Neighborhood Preservation Services
Dian C. TaylorPresident and Chief Executive OfficerArtesian Water Company
Judith M. von Seldeneck Chairman and Chief Executive OfficerDiversified Search Ray & Berndtson
ADVISORY BOARDS
Rhode Island and Connecticut
Joseph J. MarcAurele‡President, Citizens Bank, Rhode Island
Richard M. Barry†President, Citizens Bank, Connecticut
Lawrence A. Aubin Sr.‡PresidentAubin Corporation
John J. BowenPresidentJohnson & Wales University
Dr. Robert L. CarothersPresidentUniversity of Rhode Island
Thomas J. CelonaPresidentThrifty Car Sales
Edward CrowleyPresident and Chief Operating OfficerDichello Distributors
David A. DuffyChairmanRhode Island Convention Center Authority
David M. HirschChairman and Chief Executive OfficerVertex Distribution
Lynn Fusco HughesPresidentFusco Corporation
Robert L. McCabeFormer Chairman, President and Chief Executive OfficerNarragansett Electric Company
Rev. Brian J. Shanley, O.P.‡ PresidentProvidence College
Dr. Lynda B. Smith
Massachusetts
Robert E. SmythPresident, Citizens Bank, Massachusetts
Rev. Dr. Ray HammondPastorBethel A.M.E. Church
Gary R. KanebChief Financial OfficerH.P. Hood LLC
John D. McClellanManaging DirectorThomas H. Lee Partners, LP
Clayton H.W. TurnbullPresidentThe Waldwin Group
New Hampshire
Cathleen A. SchmidtPresident, Citizens Bank, New Hampshire and Vermont
Michael J. GleasonExecutive Vice PresidentDirector of Government BankingRBS Citizens, N.A.
Stephen P. BarbaExecutive Director of University RelationsPlymouth State University
†Connecticut Advisory Board only‡Rhode Island Advisory Board only
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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.
FirstGroup America
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.”
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, work-
ing 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 after-
tax funding cost, and the ability
to provide greater access to the
capital markets.
We would like to thank the following great customers, and thousands of others, for expanding their business with us over the past year. . .
$25,000,000 Interest-Rate Risk Management
on Floating Rate Line of Credit
– FOR –
$150,000,000 TRAC Lease Facility,
Lead Arranger
– FOR –
$7,000,000 Revolving Lines of Credit plus Cash Management, Deposit,
Commercial Card, Foreign Exchange and Investment Management Services
– FOR –
$145,500,000 Liquidity Facilities for
Lucas Oil Stadium completion and Indiana Convention Center expansion
– TO –
$25,000,000 Asset-Based Credit Facility plus
Cash Management Services
– FOR –
$9,850,000 Mortgage and Revolving Credit Facilities
– FOR –
Allard Nazarian Group d/b/a Granite State Manufacturing
$25,000,000 Line of Credit plus Cash Management,
Commercial Card, Deposit, Equipment Leasing and
Merchant Card Processing Services
– FOR –
$35,000,000 Credit Facilities plus Deposit and Interest-Rate Risk Management Services
– TO –
Depository and
Cash Management Services
– FOR –
Credit Facilities and
Syndication Agent
– FOR –
$7,400,000 Credit Facilities plus Cash Management,
Deposit and Interest-Rate Risk Management Services
– FOR –
$100,000,000 Credit Facility, Agent and Lead Bank, plus Cash Management, Deposit, Global Trade and Interest Rate Protection Services
– FOR –
$30,000,000 Secured Line of Credit plus
Cash Management, Deposit, Foreign Exchange and
Merchant Processing Services
– FOR –
$20,000,000 Credit Facilities plus
Cash Management, Merchant Services and Commercial Card Services
– FOR –
$25,000,000 Credit Facilities plus
U.S. Cash Management Services
– FOR –
Aegis Media Americas
$100,000,000 Letter of Credit
– FOR –
$36,500,000 Credit Facilities, plus Cash Management, Deposit, Interest-Rate Risk Management
and Trade Services
– FOR –
Genesis Worldwide II d/b/a
$275,000,000 Acquisition Credit Facility,
Agent and Lead Bank, plus Cash Management Services
– FOR –
$250,000,000 Credit Facilities plus
Cash Management, Deposit and
Foreign Exchange Services
– FOR –
$18,400,000 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 –
$54,200,000 Construction Loan, Agent and Lead Bank, for Parc Huron luxury apartment tower
plus Deposit and Interest-Rate Risk Management Services
– TO –
$6,000,000 Credit Facilities and Acquisition Financing
plus Cash Management and Corporate Credit Card Services
– FOR –
$32,000,000 Line of Credit for Working Capital and
Term Financing plus Cash Management, Foreign Exchange, Interest-Rate Risk
Management and Lease Financing Services
– FOR –
$11,500,000 Lines of Credit plus
Cash Management and Interest-Rate Risk Management Services
– FOR –
$6,862,000 Credit Facilities plus
Interest Rate Risk Management Services
– 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 –
$80,000,000 Acquisition Credit Facility, Agent and Lead Bank, plus
Cash Management, Deposit and Interest-Rate Risk Management Services
– FOR –
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:
• 300 trees were preserved for the future.
• 212,520,400 BTUs of energy were conserved.
• 866 pounds of waterborne waste were not created.
• 14,101 pounds of solid waste were not generated.
• 127,450 gallons of wastewater flow were saved.
• 27,765 net pounds of greenhouse gases were prevented from forming.
One Citizens PlazaProvidence, Rhode Island02903
Our Credo Customers Treat the customer the way we would enjoy being treated all the time.
Colleagues Do what it takes to make our company the best place to work in the world.
Community Show that we care deeply about the community and the environment. Conduct ourselves ethically at all times as we deliver for our shareholders.
*See the full Credo on p. 19.
CFG
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