Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Investor Presentation (April 2021)
34 slides from Citizens Financial's investor presentation, April 2021
Slide 1: 2021 Investor Presentation
2021 Investor Presentation April 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: Contents
Contents Strong financial performance Executive compensation 2020 Governance update Corporate Responsibility update 2
Slide 4: Strong financial performance
Strong financial performance 3
Slide 5: A new level of resilience and adaptability
A new level of resilience and adaptability Mission To help our customers, colleagues and communities reach their potential Strengthening Objective is to be a top-performing bank distinguished by its customer-centric culture, our franchise mindset of continuous improvement and excellent capabilit
Slide 6: 2020 was a year of successful execution and supporting all stakeholders
2020 was a year of successful execution and supporting all stakeholders The COVID-19 pandemic, and resulting reactions such as lockdowns, safety protocols, unprecedented government measures to shore up the economy and drastic changes to daily life have been unique and remarkable. These stresses ha
Slide 7: Strong execution in 2020
Strong execution in 2020(1) Underlying EPS Full-Year 2020 Underlying net income of $1.1 billion with EPS of $2.41 $4.14 Record noninterest income, up 24%, reflects the build out $3.84 of our fee businesses with record results across Mortgage, $3.56 $1.73 impact from Capital Markets and Wealth $2
Slide 8: Building and innovating a more diversified business model
Building and innovating a more diversified business model(1) Underlying PPNR performance has strengthened Key messages $s in billions Strong PPNR performance reflects an increasingly $3.0 $2.7 diversified business model $2.6 $2.3 ─ Multi-year investments in fee-generation $1.9 $1.6 capabilities, i
Slide 9: Full-Year Comparison – Underlying Results
Full-Year Comparison – Underlying Results(1) Period end loans Period end deposits Common equity tier 1 $s in billions $s in billions 3% 17% 0 bps $119.1 $123.1 $147.2 10.0% 10.0% $125.3 2019 2020 2019 2020 2019 2020 Pre-provision profit Efficiency ratio Operating leverage YoY $s in millions 12
Slide 10: Delivering for shareholders – outperforming peers since IPO
Delivering for shareholders – outperforming peers since IPO Well positioned for long-term value creation Since IPO 2020 vs Peers 113.1% 18.4% Since IPO 85.0% (6.7)% 25.5% 59.5% (11.0)% in 2020 57.9% (10.3)% 4.3% 11/30/14 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 9/24/14 3/31
Slide 11: Executive Compensation
Executive Compensation 3% Citizens Financial Group, Inc.” 10
Slide 12: Why Stockholders Should Support Say-on-Pay
Why Stockholders Should Support Say-on-Pay Stockholders should support 2020 say-on-pay because Citizens’ program and outcomes continue to be aligned with long-term stockholder interests Despite significant accomplishments including delivering strengthened PPNR (+12% on an underlying (1) basis) and
Slide 13: Governance update
Governance update 3% Citizens Financial Group, Inc.” D
Slide 14: Evolving our Corporate Governance
Evolving our Corporate Governance Since becoming a public company we have consistently been strengthening our governance practices Ongoing refreshment of our Board Increasing the racial diversity of the Enhancing shareholder rights and committee composition with six Board with appointment of additio
Slide 15: 2020 Governance and Disclosure Enhancements
2020 Governance and Disclosure Enhancements Right to call a special meeting Provided stockholders with the right to call a special meeting Increased colleague demographic disclosures and identified Diversity disclosure specific demographic information for individual directors including gender and ra
Slide 16: Corporate Responsibility update
Corporate Responsibility update 15
Slide 17: Corporate Responsibility
Corporate Responsibility We continue to make progress on our corporate responsibility efforts, fulfilling our responsibility as a bank to serve our customers well, provide a great place to work and build a career, strengthen our communities, and operate responsibly and sustainably, backed by strong
Slide 18: Moving forward on our ESG Journey
Moving forward on our ESG Journey • The Board is committed to overseeing CFG’s corporate responsibility efforts • The Nominating and Corporate Governance Committee has formal Strengthening responsibility for providing oversight of the Company’s commitment to ESG ESG Governance matters • An Executive
Slide 19: Appendix
Appendix 3% Citizens Financial Group, Inc.” 18
Slide 20: Board Structure and Leadership
Board Structure and Leadership Board Member Committees • Annual election of directors with majority voting Bruce Van Saun − Chairman & Chief Executive Officer • 12 of 13 director nominees independent Lee Alexander − Audit • 5 of 13 director nominees gender or ethnically diverse (appointed February 1
Slide 21: Executive Compensation Evolution
Executive Compensation Evolution Our goal is to design and implement an executive compensation program that attracts, retains, motivates, and rewards high-caliber executives within acceptable risk parameters to deliver long- term business performance aligned with stockholder interests The below ou
Slide 22: 2020 PSU Modification
2020 PSU Modification Following discussions over an 8-month period, in December 2020 the CHRC modified PSUs granted in March 2020 to align targets with analyst consensus at the time of the modification and to cap payouts at 100% 2020 PSUs were granted on March 2, 2020 and have a performance period
Slide 23: 2020 PSU Modification (cont'd)
2020 PSU Modification (cont’d) Citizens’ PSU awards were particularly impacted due to their design as well as the fact that our threshold level for payment was originally set quite aggressively ─ Citizens’ PSU design utilizes only absolute core metrics and, as a result, is less forgiving in an eco
Slide 24: Framework for Making Executive Compensation Decisions
Framework for Making Executive Compensation Decisions The CHRC continues to believes that determining executive compensation based on an exercise of its structured discretion following a review of various inputs is ideal The CHRC determines the amount of compensation paid to our executives, includin
Slide 25: Framework for Making Executive Compensation Decisions (cont'd)
Framework for Making Executive Compensation Decisions (cont’d) Step 1: Step 2: Step 3: Performance Market Practice & Final Decision Considerations Other Considerations Once all inputs are reviewed, the Compensation and HR Committee The Compensation and HR Committee exercises its structured discretio
Slide 26: 2020 Total Direct Compensation
2020 Total Direct Compensation Despite significant accomplishments, 2020 performance year compensation for our CEO and NEOs is down year-over-year, consistent with the impact of the crisis on stockholders As reflected in the Supplemental Compensation Table on page 52 of our proxy statement and bel
Slide 27: Strong Compensation Governance
Strong Compensation Governance Our compensation programs have been built upon a strong governance foundation, which we have continued to enhance over time Incentive funding and executive compensation Pay is subject to clawback awards dependent on risk performance Our overall variable compensation fu
Slide 28: Non-GAAP financial measures and reconciliations- Full Year 2020-2014
Non-GAAP financial measures and reconciliations- Full Year 2020-2014 $s in millions, except share, per share and ratio data 27
Slide 29: Non-GAAP financial measures and reconciliations- Full Year 2020-2014
Non-GAAP financial measures and reconciliations- Full Year 2020-2014 $s in millions, except share, per share and ratio data 28
Slide 30: Non-GAAP financial measures and reconciliations - Full year 2020 vs. 2019 Comparison
Non-GAAP financial measures and reconciliations - Full year 2020 vs. 2019 Comparison $s in millions, except share, per share and ratio data 29
Slide 31: Non-GAAP financial measures and reconciliations - Full year 2020 vs. 2019 Comparison
Non-GAAP financial measures and reconciliations - Full year 2020 vs. 2019 Comparison $s in millions, except share, per share and ratio data 30
Slide 32: Non-GAAP financial measures and reconciliations - excluding the impact of PPP loans
Non-GAAP financial measures and reconciliations - excluding the impact of PPP loans $s in millions, except share, per share and ratio data 31
Slide 33: Notes
Notes Notes on Non-GAAP Financial Measures See important information on Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these measures and their reconciliations to GAAP financial measures. “Underlying” or “Adjusted” results exclude the impac
Slide 34: Citizens Financial Group, Inc.
3< Citizens Financial Group, Inc.”
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