Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Goldman Sachs US Financial Services Conference 2015
21 slides from Citizens Financial's conference presentation, December 2015
Slide 1: Goldman Sachs US Financial Services Conference 2015
Goldman Sachs US Financial Services Conference 2015 December 2015 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: Key investment highlights
Key investment highlights Attractive business mix with growing and profitable commercial Attractive, client‐ business complementing strong consumer business centric franchise with ith scale l Good market share across key products and geographies Client‐centric model focused on deepening custom
Slide 4: 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 ‐ $135.4 billion #13 Loans ‐ $97.4 billion #12 Deposits ‐ $101.9 billion #12 Manchester,, NH: #1 National Rochester, NY: #4 Bran
Slide 5: Robust product offerings and balanced business mix
Robust product offerings and balanced business mix Consumer Commercial Retail Deposit Services Corporate Banking Mobile/Online Banking Commercial Real Estate Deep client Extensive Credit/Debit Card relationships p + product set p Franchise Finance Wealth W lth Management M t Asset Fi
Slide 6: 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 7: Building a top-performing regional bank
Building a top‐performing regional bank Where we’ve come from Where we are now Where we’re going Lagging revenue productivity Developed/implemented plan to Well‐balanced Commercial and ─ Under‐levered balance sheet address underlying issues and Consumer business mix ─ Lack of scale in key busi
Slide 8: Summary of progress on strategic initiatives
Summary of progress on strategic initiatives 3Q15 Initiative Commentary Status 3Q15 household growth of 2% and deposits up 7% from 3Q14. New customer cross‐sell rate Reenergize household growth increased to 3.26 vs. 3.05 in 3Q14. LOs up 81, or 22%, and origination volume up 53% from 3Q14. Expand mor
Slide 9: Incremental revenue and efficiency initiatives (Top 2)
Incremental revenue and efficiency initiatives (Top 2) On track to deliver $25 million pre‐tax benefit in 2015 and $90‐115 million in 2016 2016 Targeted Pre‐tax Benefit ($s in millions) Category Name Description Revenue Expense Progress to date Operations Refine operating model to simplify $25‐$30 •
Slide 10: Spotlight: Current focus areas for Consumer Banking
Spotlight: Current focus areas for Consumer Banking Active online banking penetration (1) Customer segmentation strategies 53 5% 54.6% 53.5% 54 6% 54.2% 54 2% 54.4% 54 4% ─ Improve customer satisfaction ─ Drive loyalty and profitability Optimization of branch network and remote channels 4Q14 1Q1
Slide 11: Spotlight: Current focus areas for Commercial Banking
Spotlight: Current focus areas for Commercial Banking Sharpen “where we play” to optimize yield and cross‐sell Industry Verticals Loan Balances $s in billions $2.9 $3.0 $ $3.0 ─ Continue to build out industry verticals – technology, health care, energy and $2.5 government contractors ─ Refine segm
Slide 12: We remain positioned for rising rates…
We remain positioned for rising rates… Interest‐rate sensitivity ranking (1,2) 13.0% (200 bps gradual increase) Net interest income poised to benefit from 10.1% rising rates 7.1% ─ ~75% of asset sensitivity is centered 6.3% around the short end of the yield curve 5.4% 3.1% 2.7% ─ ~82% of the comme
Slide 13: CFG core revenue growth vs. peers
CFG core revenue growth vs. peers $s in millions Delivering solid core revenue growth as initiatives gain traction (1) Growing revenues faster Core noninterest income (Core revenue(1)) 0 6% CAGR 0.6% $2,067 $2,024 $2,074 $2,063 $2,089 $2,035 $2,099 $2,089 $886 $911 $881 $852 $873 $863 $859 $824 $1,2
Slide 14: Loan and deposit growth tracking well vs. peers
Loan and deposit growth tracking well vs. peers $s in billions Total average loans and leases Total average deposits(1) 268 bps better than 296 bps b better b peers than peers $101.0 $98.5 $94.8 $95.6 $92.0 $94.0 $95.6 $96.8 $91.7 $85.8 $86.1 $88.0 $89.7 $88.0 $86.4 $87.6 4Q13 1Q14 2Q14 3Q14 4Q14 1Q
Slide 15: Improving core efficiency and profitability vs. peers
Improving core efficiency and profitability vs. peers Consistent record of improving profitability and returns, narrowing gap vs. peers Expense/earning assets Accelerating profitability (Core expense/core earning assets ratio(1)) $s in millions (Core net income(1,2)) 3.5% 3.3% 3.2% 3.2% $500 $485 $5
Slide 16: Stronger capital than peers
Stronger capital than peers Total capital ratio Executed E ec ted $2 $2.2 2 billion in capital eexchange change 16.1% 16.0% 16.2% 16.1% transactions since 6/30/2013, mix of capital 15.8% 15.5% 15.3% 15.4% now broadly aligned with peers 180 bps above peers 14.2% 14.2% 14.2% 14.4% 14.2% 13.8% 13.6%
Slide 17: Key messages
Key messages We are executing well against our agenda; delivering near‐term financial progress towards ambitious medium‐term goals We have the foundation for a great franchise, though much to do to tap full potential – Our turnaround plan addresses gaps/weaknesses on both a tactical and strategi
Slide 18: Appendix
Appendix %£ Citizens Financial Group, Inc.” 17
Slide 19: Non-GAAP Reconciliation Table
Non‐GAAP Reconciliation Table $s in millions QUARTERLY TRENDS 3Q15 2Q15 1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q15 vs 4Q13 Noninterest income, excluding special items: Noninterest income (GAAP) A $353 $360 $347 $339 $341 $640 $358 $379 Less: Special items ‐ Chicago gain ‐ ‐ ‐ ‐ ‐ 288 ‐ ‐ REPORTED NON‐GAAP N
Slide 20: Non-GAAP Reconciliation Table
Non‐GAAP Reconciliation Table $s in millions QUARTERLY TRENDS 3Q15 2Q15 1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q15 vs 4Q13 Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items: Average common equity (GAAP) P $19,261 $19,391
Slide 21: Citizens Financial Group, Inc.
3« Citizens Financial Group, Inc.”
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