Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Credit Suisse Annual Financial Services Forum 2021
26 slides from Citizens Financial's conference presentation, Feb 25, 2021
Slide 1: Credit Suisse Annual Financial Services Forum 2021
Credit Suisse Annual Financial Services Forum 2021 Brendan Coughlin Head of Consumer Banking February 25, 2021
Slide 2: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures Forward-Looking Statements. This document contains forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends, as wel
Slide 3: Overview
Overview The Consumer Bank has been dramatically repositioned since our IPO, with a strong foundation for success looking forward Consumer credit has held up very well, including our education and point-of-sale offerings We have a focused and transformative agenda to differentiate and compete
Slide 4: Built the foundation to position us as a leading consumer bank
Built the foundation to position us as a leading consumer bank ~6.6 million customers nationwide with a significant opportunity to grow and deepen National(1) ~2.8MM customers Regional(1) ─ ~97% single-product ~3.8MM customers ─ ~1.4MM with products from our national businesses: Citizens Pay, Ci
Slide 5: Dramatically repositioned Consumer Banking since IPO
Dramatically repositioned Consumer Banking since IPO 2015 Today Above-industry growth and improving customer experience Not growing Serving 4% primary household growth since 2018 Below average Net customers Improving NPS; JD Power rank improved from bottom-quartile Promotor Scores (NPS) to media
Slide 6: High quality, balanced consumer portfolio continues to consistently grow
High quality, balanced consumer portfolio continues to consistently grow Strong prime and high quality portfolio Generating attractive retail loan growth $ in billions December 31, 2020 Retail portfolio $in billions Balance WA FICO $56.0 $58.6 $59.9 $61.5 $62.3 $52.8 Residential mortgage $ 19.5 ~785
Slide 7: High quality consumer portfolio has performed well through COVID
High quality consumer portfolio has performed well through COVID Credit is holding up well… …including particular strength in growth areas Retail forbearance declining(1) $12.3 billion Education loan portfolio(2) 6.0% Forbearance rate (1) 30+ days delinquency rate 3.8% 8.70% 2.3% 6.50% 1.7% 0.86% 0.
Slide 8: Consumer Banking continuing to invest, positioning us for the future
Consumer Banking continuing to invest, positioning us for the future Our vision: To be our customer’s trusted and primary financial partner supporting them along life’s journey Investing in new technologies and digitization to improve customer experience Continued and drive household growth invest
Slide 9: Our plan: become a leading digital-first bank with differentiated capabilities
Our plan: become a leading digital-first bank with differentiated capabilities We will achieve our long-term vision through bold initiatives that build on our strengths Digitally transforming Driving revenue growth with Deepen and grow in our platform national expansion targeted segments Aggressivel
Slide 10: Digital transformation – COVID accelerated trend towards digital channels
Digital transformation – COVID accelerated trend towards digital channels Digital adoption and engagement continues to accelerate within regional footprint 4Q20 YoY Consumer deposit transaction mix Digital Active Digital Digital Net YoY Households Logins Promotor Score -13 pts 42% +7% +15% +13 pts 5
Slide 11: Digital transformation – redesigning the customer experience
Digital transformation – redesigning the customer experience E2E digitization efforts well underway Significant benefits expected Digitizing the customer experience Improved customer experience and satisfaction Marketing transformation for scale impact Meaningful financial benefits Reposit
Slide 12: Digital transformation – transforming physical presence to an advice-based model
Digital transformation – transforming physical presence to an advice-based model Achieved significant efficiencies to date Accelerating transformation Branch count reduced by ~20% since 2015(1) COVID-19/lockdowns accelerated the trend of declining transaction-driven foot traffic ─ Shifting to ad
Slide 13: National expansion – opportunity to capitalize on our leading national capabilities
National expansion – opportunity to capitalize on our leading national capabilities National consumer lending platform with Citizens Access® will provide a distinct advantage Unique among regional banks with our leading national consumer lending businesses ─ Mortgage, Education, Citizens Pay and A
Slide 14: National expansion – an integrated value proposition to accelerate growth
National expansion – an integrated value proposition to accelerate growth Leveraging our strengths launching an integrated national digital bank focused on young professionals Strategy for the integrated national digital bank Launching an integrated national digital bank, building on our leading C
Slide 15: Citizens Pay – the opportunity
Citizens Pay – the opportunity Millennials/Gen Z prefer fixed installment over card(1) POS lending portfolio has grown significantly (1) $ in billions, end of period Predictable Affordable # of customers ~$6+ Prefer fixed 2.9MM Prefer not to open 2.7MM monthly payments 62% 66% more credit cards just
Slide 16: Citizens Pay – our journey
Citizens Pay – our journey 5+ million customers served and ~$8 billion originations to date(1) 2015 2016-2019 2019-2020 2021+ Apple Developed scalable Built depth in Accelerating Partnership platform industry verticals partnership wins Early advantage with Flexible platform to Consumer Electro
Slide 17: Deepening relationships – continuing strong progress in banking
Deepening relationships – continuing strong progress in banking Our customer base has rapidly improved in its quality Regional banking franchise Highlights Period-end Outpacing industry in growing primary households Primary Cost of deposits household growth low-cost deposit gap to peers and low-co
Slide 18: Deepening relationships – a significant opportunity with Wealth
Deepening relationships – a significant opportunity with Wealth Majority of our customers are Wealth prospects, presenting a significant opportunity Wealth Highlights High concentration of mass affluent and Clarfeld | Citizens Private Wealth making progress affluent within our regional footprint w
Slide 19: Wrap-up
Wrap-up The Consumer Bank has been dramatically repositioned since our IPO, with a strong foundation for success looking forward ─ Above-industry growth and improving customer experience ─ Strong national banking capabilities ─ Growing low-cost deposits ─ At scale in Mortgage; building Wealth ─ Im
Slide 20: Appendix
Appendix ** Citizens Financial Group, Inc.” 20
Slide 21: Citizens Pay – positioned to continue to win
Citizens Pay – positioned to continue to win Recognized as the premier partner for large, sophisticated brand-name retailers Our differentiated capabilities Strategic partner approach with tailored solutions Flexible, 100% digital end-to-end platform provides Easy integration for merchants fri
Slide 22: Citizens Pay – our offerings
Citizens Pay – our offerings Product suite tailored to meet specific needs of our merchant partners and customers Hybrid No Interest Flat APR Standard Risk 0% Financing Promos For All Credits Based APRs No Interest for up % Intro Period, One Rate for APR Range, Variable to 84 months Switching to APR
Slide 23: Citizens Pay – how it works and how we make money
Citizens Pay – how it works and how we make money 1 2 3 4 5 Customer Customer chooses Customer completes Citizens Pay settles Customer repays shops Citizens Pay purchase with merchant Citizens Pay Customer shops on-line Customer chooses If approved, customer Citizens Pay settles with Customer typica
Slide 24: Notes
Notes Notes on Non-GAAP Financial Measures See important information on Non-GAAP Financial Measures, as applicable, at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliations to GAAP financial measures. “Unde
Slide 25: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data 25
Slide 26: Citizens Financial Group, Inc.
3« Citizens Financial Group, Inc.”
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