Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Morgan Stanley Financials Conference 2016
15 slides from Citizens Financial's conference presentation, Jun 15, 2016
Slide 1: Morgan Stanley Financials Conference
Morgan Stanley Financials Conference June 15, 2016 Eric Aboaf, Chief Financial Officer Don McCree, Head of Commercial Banking
Slide 2: Important Information and GAAP/Non-GAAP Information
Important Information and GAAP/Non‐GAAP Information 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
Slide 3: Solid franchise with leading positions in attractive markets
Solid franchise with leading positions in attractive markets Retail presence in 11 states Dimension Rank(2) 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 Rochester, NY: #4 Branches: 1,200 #11
Slide 4: Specific initiatives to support our turnaround strategy
We have developed specific initiatives to support our turnaround 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 Expand Business Banki
Slide 5: We are broadly executing well, and our performance is improving
We are broadly executing well, and our performance is improving Key elements of ’13‐’16 plan Status Consumer: Auto, Student, Mortgage Grow balance sheet, net interest income Commercial: Middle Market, Mid‐corporate & on track Specialty Verticals, CRE, Franchise Finance Consumer: Wealth, Mortgage,
Slide 6: Continuing to drive balance sheet and revenue momentum in 2016
Continuing to drive balance sheet and revenue momentum in 2016 1Q16 vs. 1Q15 A scaled platform well‐positioned to drive value Strong loan growth Higher NIM expansion Growing revenues faster (Average total loan growth) (Net interest margin change) (Revenue growth) 6.7% 73 bps CFG Peer4 average bps ab
Slide 7: Continuous improvement mindset: TOP Programs
Have developed continuous improvement mindset: TOP Programs Tapping Our Potential (TOP) programs driving revenue growth and expense efficiencies TOP I TOP II Initial thoughts on TOP III Launched first half 2014 Launched mid 2015 Broad set of opportunities identified Achieved $200 million annual cost
Slide 8: Commercial Banking key lines of business and products
Commercial Banking key lines of business and products Commercial Lending Steve Woods Commercial Real Estate 30 years’ experience, CFG – 8 years Middle Market Mid‐corporate & Franchise Finance Commercial Real Estate Jerry Sargent Industry Verticals Dave Farwell Gary Magnuson 34 years’ experience Dan
Slide 9: Commercial Banking - Solid track record of delivering organic growth
Commercial Banking ‐ Solid track record of delivering organic growth $s in billions Growth driven by continued investment in talent, infrastructure, product and advisory capabilities Strong loan growth $41.6 CAGR Delivering on a multi‐year targeted growth strategy $37.7 $32.5 $34.7 33.6% – Focus o
Slide 10: Continued growth opportunities in Capital Markets
Continued growth opportunities in Capital Markets Leveraging strong relationships and experienced team through solutions‐based orientation and growing product and advisory capabilities Corporate Finance professionals key to supporting Capital and Global Markets fee income solutions‐oriented model
Slide 11: Treasury Solutions opportunity
Treasury Solutions opportunity $s in millions Investing to drive continued revenue growth with focus on improving client penetration and market share Treasury Solutions fee income up ~7.7% YoY in 2015 with good Treasury Solutions Commercial Banking fees(2) momentum vs. estimated 2015 industry grow
Slide 12: Appendix
Appendix X* Citizens Financial Group, Inc.” 12
Slide 13: 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 Noninterest income, excluding special items: Noninterest income (GAAP) $330 $347 Less: Special items — — Noninterest
Slide 14: Non-GAAP reconciliation table
Non‐GAAP reconciliation table (Excluding restructuring charges and special items) $s in millions FOR THE QUARTER FOR THE YEAR ENDED MARCH 31, ENDED DECEMBER 2016 2009 1 Pro forma Basel III fully phased‐in common equity tier 1 capital ratio : Common equity tier 1 (regulatory) $13,570 Less: Change in
Slide 15: Citizens Financial Group, Inc.
3< Citizens Financial Group, Inc.”
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