Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Americas Select Franchise Conference 2016
24 slides from Citizens Financial's conference presentation, May 2016
Slide 1: Barclays Americas Select Franchise Conference 2016
Barclays Americas Select Franchise Conference 2016 May 2016 Bruce Van Saun,, Chairman and Chief Executive Officer
Slide 2: Important Information and GAAP/Non-GAAP Information
Important Information and GAAP/Non‐GAAP Information This document contains forward forward‐looking looking statements within the Private Securities Litigation Reform Act of 1995. 1995 Any statement that does not describe historical or current facts is a forward forward‐looking looking statement. sta
Slide 3: Solid franchise with leading positions in attractive markets
Solid franchise with leading positions in attractive markets Retail presence in 11 states Dimension(2) Rank(3) Top 5 deposit market share in 9 of 10 largest MSAs(1) Assets: $140.1 billion #13 Loans: $101.0 billion #11 Deposits: $102.6 billion #13 Manchester,, NH: #1 National Rochester, NY: #4 Branch
Slide 4: Robust product offerings and balanced business mix
Robust product offerings and balanced business mix Consumer Commercial Retail Deposit Services Corporate Banking Commercial Real Estate Mobile/Online Banking Deep client Extensive Credit/Debit Card relationships p + product set p Franchise Finance Asset Finance Wealth Management PE
Slide 5: We have added real talent… starting to see the benefits
We have added real talent… starting to see the benefits Board Date joined Key experience Anthony Di Iorio January 2014 Former CFO Deutsche Bank AG, Former Director RBS Group plc Mark Casady June 2014 Chairman and CEO, LPL Financial Holdings, Inc. Former Vice Chairman Salomon Brothers, Past President
Slide 6: 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 Regulators Customers Investors Communities Co u es & Soc Society ey Customer‐centric culture 5
Slide 7: Our vision and strategy
Our vision and strategy O objective Our bj i is i to b be a top‐performing f i regional i l bank b k that h delivers d li wellll for f our stakeholders k h ld Our vision is to deliver the best possible banking experience Our strategy to achieve this is to: Offer our customers a differentiated cust
Slide 8: We have developed specific initiatives to support our strategy
We have developed specific initiatives to support our strategy Improved Balance Sheet Continued Commercial Consumer Growth/Optimization Banking Momentum Bank Capital Mix Normalization Reenergize Household growth Build out Mid‐Corporate & Target 6 ‐ 8% average loan Reposition Auto Specialty v
Slide 9: Have developed continuous improvement mindset: TOP Programs
Have developed continuous improvement mindset: TOP Programs Tapping pp g Our Potential (TOP) ( )pprograms g drivingg revenue ggrowth and expense p efficiencies TOP I TOP II Initial thoughts on TOP III Launched first half 2014 Launched mid 2015 Broad set of opportunities identified A hi d $200 millio
Slide 10: We are broadly executing well, and our performance is improving
We are broadly executing well, and our performance is improving K elements Key l t off ’13‐’16 ’13 ’16 plan l St t Status Grow balance sheet, Consumer: Auto, Student, Mortgage net interest income Commercial: Middle Market, Commercial Market Mid‐corporate Mid corporate & on track t k Specialty Vert
Slide 11: Delivered attractive balance sheet and revenue growth in 2015
Delivered attractive balance sheet and revenue growth in 2015 FY15 vs. FY14 A scaled platform well‐positioned to drive value Strong loan growth Growing revenues faster Lower NIM compression (Average total loan growth) (Core revenue growth(1)) (Core net interest margin change(1)) CFG Peer average 8%
Slide 12: With continued focus on expense control and improving returns
With continued focus on expense control and improving returns FY15 vs. FY14 Well‐controlled Well controlled expenses Strong operating leverage Efficiency improvement (Core noninterest expense(1) change) (YoY Core operating leverage(1)) (Core efficiency ratio(1) change) 224 bps 305 bps 487 bps better
Slide 13: Our plan has clear objectives for each stakeholder
Our plan has clear objectives for each stakeholder Achieve current targets, then raise the bar Investors Strive for consistency in performance, limit tail risk Target attractive high pay‐out ratio; steady and growing dividend Continue to improve customer satisfaction ─ Top 10 in JD Power for
Slide 14: 1Q16 highlights
1Q16 highlights $0 41 up 8% from 1Q15 and up 5% from Adjusted(1) diluted EPS GAAP diluted EPS of $0.41 Improving Adjusted(1) operating leverage of 3% YoY profitability and NIM improved 9 bps to 2.86% from 2.77% in 1Q15 and 4Q15 returns ROTCE and efficiency ratio stable with 4Q15(1) Generat
Slide 15: Key messages
Key messages We have the foundation for a great franchise, franchise and are executing a comprehensive plan to tap full potential 1Q16 was another good quarter for Citizens ─ Financial results continue to improve and meet expectations ─ Good progress on strategic initiatives, mindset of ‘continu
Slide 16: Appendix
Appendix %£ Citizens Financial Group, Inc.” 15
Slide 17: Strong credit quality trends continue
Strong credit quality trends continue $s in millions Net charge‐offs (recoveries) Highlights $78 $83 $54 $75 $77 Overall credit quality remains solid with charge offs and NPLs relatively stable $3 $7 $7 Net charge‐offs of $83 million, or 0.33% of average loans and leases increased $7 $4 $68 $66
Slide 18: Diversified and granular loan mix
Diversified and granular loan mix $53.0 billion $48.0 billion 1Q16 portfolio(1) Q retail p 1Q16 Q 6 commercial co e c a po t o o(2) portfolio Business Non‐Core Non‐Core Out of Banking 0.3% Other 25% Out of footprint(8) Leases 31% Education Finance 2%4% 6% footprint(8) 8% Home 8% Credit Cards 15% Mid
Slide 19: Oil & Gas portfolio overview
Oil & Gas portfolio overview 1Q16 Oil & Gas Outstandings Highlights W ll di Well‐diversified ifi d portfolio tf li with ith ~100 clients li t Tota l Uti l i zed Cri ti ci zed Nona ccrua l Includes $339 million of corporate aircraft leases arising from $s i n mi l l i ons O/S % % s ta tus Asset F
Slide 20: Non-GAAP reconciliation table
Non‐GAAP reconciliation table (Excluding restructuring charges and special items) $s in millions, except per share data FOR THE YEAR ENDED DECEMBER 31, 2015 2014 2015 Change from 2014 CORE net interest income, excluding special items: Net interest income (GAAP) $3,402 $3,301 Less: Special items ‐ ‐
Slide 21: Non-GAAP reconciliation table
Non‐GAAP reconciliation table (Excluding restructuring charges and special items) $s in millions, except per share data FOR THE YEAR ENDED DECEMBER 31, 2015 2014 2015 Change from 2014 CORE net income, excluding restructuring charges and special items: Net income (GAAP) G $840 $865 Add: Restructuring
Slide 22: Non-GAAP reconciliation table
Non‐GAAP reconciliation table (Excluding Chicago Divestiture) $s in millions FOR THE YEAR ENDED 2015 Change DECEMBER 31, from 2014 2015 2014 C Core nett iinterest t t margin, i excluding l di Chicago Chi adjustment: dj t t Average interest earning assets (GAAP) $122,950 $116,187 Less: Estimated ‐ Ch
Slide 23: Non-GAAP reconciliation table
Non‐GAAP reconciliation table (Excluding restructuring charges and special items) $s in millions, except per share data FOR THE QUARTER ENDED MARCH 31, 2016 2015 2016 Change from 2015 Total revenue revenue, excluding special items: Total revenue (GAAP) T $1,234 $1,183 Less: Special items ‐ ‐ Total r
Slide 24: Citizens Financial Group, Inc.
3« Citizens Financial Group, Inc.”
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