Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Morgan Stanley Financials Conference 2019
22 slides from Citizens Financial's conference presentation, Jun 11, 2019
Slide 1: Morgan Stanley Financials Conference
Morgan Stanley Financials Conference June 11, 2019 Don McCree Vice Chairman, Head of Commercial Banking
Slide 2: Forward-looking statements and use of key performance metrics and non-GAAP financial measures
Forward-looking statements and use of key performance metrics and non-GAAP financial measures This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends are
Slide 3: Strong franchise with leading positions in attractive markets
Strong franchise with leading positions in attractive markets(1) Attractive footprint with large mass-affluent and Franchise highlights affluent segments Footprint GDP above national average — Personal consumption 43% higher than the national average — Higher percentage of individuals with 4-year de
Slide 4: Diversified and balanced business model
Diversified and balanced business model(1) Consumer Loans and Leases Commercial $117.6 billion(3) In Footprint Coverage Retail Deposit Services Commercial & Industrial Banking Mobile/Online Banking Commercial Real Estate 53% Mortgage(2) Industry corporate finance 47% Home Equity Loans/Lines and vert
Slide 5: Commercial Banking - Key messages
Commercial Banking - Key messages Commercial Banking is well-positioned for continued growth and improving returns Continue to serve core clients as trusted advisor through broadened capabilities, superior idea generation and execution, and service excellence Substantial progress towards enhancing t
Slide 6: Commercial Banking – Solid track record of delivering growth
Commercial Banking – Solid track record of delivering growth $s in billions Results reflect continued investment in talent, enhanced products & advisory capabilities Driving revenue improvement $2.0 CAGR $1.9 $1.8 Noninterest $1.6 income ~10% 2015 2016 2017 2018 Net interest income Noninterest incom
Slide 7: Commercial Banking – Made consistent progress broadening capabilities
Commercial Banking – Made consistent progress broadening capabilities Enhanced coverage model, expanded geographic reach & solution sets, strengthening fee income with integrated approach ~50+ ~50% Enhanced coverage Delivering strong client model & expansion New bankers Net new clients acquisition a
Slide 8: Building out strong coverage model and integrated solutions
Building out strong coverage model and integrated solutions Regional coverage model with local presence leverages robust product capabilities and deep expertise with a focus on trusted advisor status Clients ~2,700 middle market ~1,100 mid-corporate ~50+ sponsors New York - Northeast Mid-Atlantic Mi
Slide 9: Corporate finance & advisory platform focused primarily on the upper end of middle market
Corporate finance & advisory platform focused primarily on the upper end of middle market Broadening capabilities and strengthening execution to augment trusted advisor status Mergers & Acquisitions Debt Capital Markets Global Markets 60+ professionals providing 50+ professionals providing 25+ profe
Slide 10: Continuing to grow relationships in Global and Capital Markets
Continuing to grow relationships in Global and Capital Markets $s in millions Continued progress in diversifying fee income Lead relationship growth(1) Highlights 210 Record 1Q19 capital markets fees up ~210% 192 and record FX & IRP revenue up ~45% 149 since 4Q15 122 Record lead/joint lead loan synd
Slide 11: Enhancing Treasury Solutions capabilities
Enhancing Treasury Solutions capabilities $s in millions Enhanced focus on digital experience, product upgrades, sales effectiveness & client service Treasury Solutions Commercial Banking fees(1) Highlights Investments continue to drive $140 momentum $128 $135 $115 CAGR ─ Re-platforming online chann
Slide 12: Building FinTech partnerships and gaining industry recognition
Building FinTech partnerships and gaining industry recognition Partnerships Recognition End-to-end workflow tool to improve speed of customer onboarding and Overall Satisfaction Top-2 collaboration box score 95%(1) Launched Electronic Bill Presentment and Payment, a new digital payment system Best T
Slide 13: Commercial Banking initiatives help drive enterprise performance
Commercial Banking initiatives help drive enterprise performance Tapping Our Potential (“TOP”) revenue & efficiency initiatives Continued expansion into growth Customer journeys, e.g., payments markets experience Build-out fee income & broader Lean/process improvement focused on capabilities: expand
Slide 14: Commercial Banking initiatives help drive enterprise performance
Commercial Banking initiatives help drive enterprise performance Balance Sheet Optimization (“BSO”) Loan portfolio Deposits Reposition/optimize loan mix across Optimize deposit mix with a focus on categories lower-cost categories. Focus on operational deposits & further Recycle capital with a focus
Slide 15: Diversified portfolio with strong credit performance
Diversified portfolio with strong credit performance $s in billions Highly granular and diversified portfolio Improving criticized asset trend 1Q19 $56.9 billion core commercial portfolio by Industry Sector(1) All Others (3) Arts, Entertainment, and Recreation Automotive Real Estate and Rental Educa
Slide 16: Continued prudent credit discipline and portfolio management
Continued prudent credit discipline and portfolio management $s in billions Core commercial portfolio risk-ratings Highlights improved YoY(1) Disciplined capital allocation and risk appetite $56.9 − Highly experienced leadership team $52.3 3% − Focused client selection, especially in sponsor B- and
Slide 17: Commercial Banking – Solid track record of delivering enhanced returns & efficiency
Commercial Banking – Solid track record of delivering enhanced returns & efficiency(1) $s in millions Return on average tangible assets Commercial Banking net income & efficiency ratio $927 1.8% 42 bps 1.6% $774 1.4% 1.3% $631 $579 Efficiency Ratio 44.9% 514 bps 42.3% 39.6% 39.8% 2015 2016 2017 2018
Slide 18: Commercial Banking - Key messages
Commercial Banking - Key messages Strong franchise covering attractive markets Continuing to grow attractive risk-adjusted return portfolios and controlling deposit costs Credit quality and key coverage metrics remain strong Continued good progress across the board in delivering strategic initiative
Slide 19: Appendix / Notes, Key performance metrics, Non-GAAP financial measures and reconciliations
Appendix / Notes, Key performance metrics, Non-GAAP financial measures and reconciliations 19
Slide 20: Notes
Notes Notes on Key Performance Metrics and Non-GAAP Financial Measures See important information on Key Performance Metrics and 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
Slide 21: Key performance metrics, Non-GAAP financial measures and reconciliations – Commercial Banking
Key performance metrics, Non-GAAP financial measures and reconciliations – Commercial Banking $s in millions, except share, per share and ratio data 21
Slide 22: Citizens Financial Group, Inc.
3* Citizens Financial Group, Inc.”
Citizens Financial Group — Morgan Stanley Financials Conference 2019 on 6ix