Citizens Financial Group (CFG) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We may not be able to successfully execute our business strategy
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3. 03Inflationary pressures could have an adverse effect on our business, financial position and results of operations
4. 04Our ability to meet our obligations, and the cost of funds to do so, depend on our ability to access identified sources of liquidity at a reasonable cost
5. 05Changes in interest rates may have an adverse effect on our liquidity and profitability
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7. 07Similarly, a decrease in interest rates could reduce our net interest income, net interest margin and fee income. A prolonged period of low interest rates may result in us holding lower yielding loans and securities should rates rise rapidly after the period of low interest rates
8. 08We could fail to attract, retain or motivate highly-skilled and qualified personnel, including our senior management, other key employees or members of our Board, which could impair our ability to successfully execute our strategic plan and otherwise adversely affect our business
9. 09A reduction in our credit ratings could have a material adverse effect on our business, financial condition and results of operations
10. 10Our financial performance may be adversely affected by deterioration in borrower credit quality
11. 11Our framework for managing risks may not be effective in mitigating risk and loss
12. 12Changes in our accounting policies or standards could materially affect how we report our financial results and condition
13. 13Our financial and accounting estimates and risk management framework rely on analytical forecasting and models
14. 14The preparation of our financial statements requires us to make subjective determinations and use estimates that may vary from actual results and materially impact our financial condition and results of operations
15. 15Operational risks are inherent in our businesses
16. 16The financial services industry, including the banking sector, continues to make technological enhancements to meet customer preferences, as well as meet legal and regulatory requirements, and we may not be able to compete effectively as a result of these changes
17. 17We are subject to a variety of cybersecurity risks that, if realized, could adversely affect how we conduct our business
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19. 19We rely heavily on communications and information systems to conduct our business
20. 20We rely on third parties for the performance of a significant portion of our information technology
21. 21We are exposed to reputational risk and the risk of damage to our brands and the brands of our affiliates
22. 22Unpredictable catastrophic events could have an adverse effect on our business, financial position and results of operations
23. 23The effects of geopolitical instability may adversely affect us and create significant risks and uncertainties for our business, with the ultimate impact dependent on future developments, which are highly uncertain and unpredictable

Risks Related to Our Industry

1. 24Any deterioration in national economic conditions could have a material adverse effect on our business, financial condition and results of operations
2. 25We operate in an industry that is highly competitive, which could result in losing business or margin declines and have a material adverse effect on our business, financial condition and results of operations
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4. 27Climate change manifesting as physical or transition risks could adversely affect our operations, businesses and customers
5. 28The conditions of other financial institutions or of the financial services industry could adversely affect our operations and financial condition

Risks Related to Regulations Governing Our Industry

1. 29As a financial holding company and a bank holding company, we are subject to comprehensive regulation that could have a material adverse effect on our business and results of operations
2. 30Our regulators may impose restrictions or limitations on our operations
3. 31The regulatory environment in which we operate continues to be subject to significant and evolving regulatory requirements that could have a material adverse effect on our business and earnings
4. 32We are subject to capital adequacy and liquidity standards, and if we fail to meet these standards our financial condition and operations would be adversely affected
5. 33The Parent Company could be required to act as a “source of strength” to CBNA, which would have a material adverse effect on our business, financial condition and results of operations
6. 34The Parent Company depends on CBNA for substantially all of its revenue, and restrictions on dividends and other distributions by CBNA could affect its liquidity and ability to fulfill its obligations
7. 35From time-to-time, we may become or are subject to regulatory actions that may have a material impact on our business
8. 36We are and may be subject to litigation that may have a material impact on our business
9. 37Compliance with anti-money laundering and anti-terrorism financing rules involves significant cost and effort

Risks Related to our Common Stock

1. 38Our stock price may be volatile, and you could lose all or part of your investment as a result
2. 39We may not repurchase shares or pay cash dividends on our common stock
3. 40“Anti-takeover” provisions and the regulations to which we are subject may make it more difficult for a third party to acquire control of us, even if the change in control would be beneficial to stockholders