Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Shareholder Meeting (May 2015)
21 slides from Citizens Financial's shareholder meeting presentation, May 5, 2015
Slide 1: 2015 Annual Meeting
2015 Annual Meeting May 5, 2015
Slide 2: Aspire to be a top-performing regional bank, delivering well for all stakeholders
Aspire to be a top‐performing regional bank, delivering well for all stakeholders Colleagues Offer fulfilling jobs Regulators Investors Comply with Deliver letter and Customers C t strong value spirit of rules Serve our proposition and customers well and regulations attractive returns Communities &
Slide 3: Getting to top performing
Getting to top performing We have a clear plan with specific objectives for each stakeholder Achieve current targets, then raise the bar Investors Strive for consistency in performance, limit tail risk Target relatively high pay‐out ratio, steady and growing dividend Continue to improve cust
Slide 4: Our vision and strategy
Our vision and strategy O objective Our bj ti isi to t be b a top‐performing t f i regional i l bank b k that th t delivers d li wellll for f our stakeholders t k h ld Our vision is to deliver the best possible banking experience Our strategy to achieve this is to: Offer our customers a differenti
Slide 5: These strategies have been mapped to specific initiatives
These strategies have been mapped to specific initiatives Improved Balance Sheet Growth/ Continued Commercial Consumer Capital Mix Momentum Bank Normalization Reenergize Household growth Build out Mid‐Corporate & Target 7 – 8% loan growth Grow Auto Specialty verticals Complete $500 million
Slide 6: Key to execution is the quality of our talent and instilling the right culture
Key to execution is the quality of our talent and instilling the right culture People Culture To achieve this we need to continue to hire, Culture is focused on: develop, and retain the right talent ─ Customer Focused on strengthening the leadership of the organization ─ Leadership ─ Over 18 m
Slide 7: We are led by a strong and experienced Board & Leadership Team
We are led by a strong and experienced Board & Leadership Team Leadership Team Member Title Board Member Committees Bruce Van Saun Chairman and Chief Executive Officer Bruce Van Saun Chairman and Chief Executive Officer Eric Aboaf Chief Financial Officer Lead Director; Chair of Compensation and Huma
Slide 8: We have targeted a 10%+ run-rate ROTCE by the end of 2016
We have targeted a 10%+ run‐rate ROTCE by the end of 2016 End 2016 Key Indicators 2011 2013(1) 2014 4Q14 Targets Return on average tangible 4.2% 4.9% 6.7% 6.1% common equity ("ROTCE")(3) 10%+ Adjusted ROTCE(3)(4) 4.5% 5.1% 6.1% 6.8% Adjusted return on average 0.5% 0.6% 0.7% 0.7% 1.0%+ total tangible
Slide 9: Plan spans three years to end of 2016, and tracking well
Plan spans three years to end of 2016, and tracking well Targets progressed as planned in 2014 2014 Operating Plan Net interest income High‐single‐digit High single digit growth Loan portfolio Mid‐single‐digit growth Credit quality 35‐45 bps of net charge‐offs <70% 70% Efficiency Effi i ratio
Slide 10: We've maintained a strong, clean balance sheet
We’ve maintained a strong, clean balance sheet Well capitalized p with a 4Q14 Q Tier 1 common equity q y ratio of 12.4%;; p pro forma common equity q y Tier 1 ratio of 12.1%(1) on a fully phased‐in Basel III basis Solid asset quality performance with 2014 net charge‐offs of 36 bps Strong depos
Slide 11: The market has endorsed our strategy & execution to date
The market has endorsed our strategy & execution to date Shares have traded well 21% 5% 2% 0% Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 1 CFG Peer Average S&P 500 Successful IPO in 3Q14: 161 million shares at $21.50, raised $3.5 billion Successful follow‐on selldown
Slide 12: We are focused on fully meeting regulatory expectations
We are focused on fully meeting regulatory expectations Step‐change improvement in CCAR capabilities – Integrated capital planning – Deepened expertise in stress testing and modeling – Achieving non‐objection to 2015 submission reflects significant effort and progress, with room for further improv
Slide 13: 1Q 2015: Off to a good start
1Q 2015: Off to a good start Reported net income of $209 million – up 26% from last year Completed largest bank first follow‐on offer ($3.7 billion) – RBS stake now reduced to 40.8% Successfully passed regulatory capital exam and stress test Recruited high‐quality leaders: Eric Aboaf (CFO), Don McCr
Slide 14: Investment Thesis
Investment Thesis 13thh largest U.S. retail bank holding company with attractive Attractive, demographics in core markets client‐centric Attractive business mix with growing and profitable commercial franchise with business complementing strong consumer business scale Client‐centric model focu
Slide 15: Matters submitted for stockholder vote
Matters submitted for stockholder vote 14
Slide 16: Q&A
&A x* Citizens Financial Group, Inc: 15
Slide 17: Appendix
Appendix % Citizens Financial Group, Inc.”
Slide 18: Forward-looking statements
Forward‐looking statements This document contains forward‐looking statements within the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward‐looking statement. These statements often include the words “believes,” “expects,” “
Slide 19: Non-GAAP Financial Measures
Non‐GAAP Financial Measures This document contains non‐GAAP financial measures. The table below presents reconciliations of certain non‐GAAP measures. These reconciliations exclude goodwill impairment, restructuring charges and/or special items, which are usually included, where applicable, in the f
Slide 20: Non-GAAP Reconciliation Table
Non‐GAAP Reconciliation Table (Excluding restructuring charges and special items) $s in millions, except per share data FULL YEAR QUARTERLY 2011 2013 2014 4Q14 Net income (loss), excluding restructuring charges and special items: Net income (loss) (GAAP) A $506 ($3,426) $865 $197 Add: Restructuring
Slide 21: Citizens Financial Group, Inc.
3« Citizens Financial Group, Inc.”
Citizens Financial Group — Shareholder Meeting (May 2015) on 6ix