Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Americas Select Franchise Conference 2017
32 slides from Citizens Financial's conference presentation, May 16, 2017
Slide 1: Barclays Americas Select Franchise Conference 2017
Barclays Americas Select Franchise Conference 2017 May 2017 Bruce Van Saun Chief Executive Officer
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 Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement
Slide 3: Solid franchise with leading positions in attractive markets
Solid franchise with leading positions in attractive markets Retail presence in 11 states Dimension(1) Rank(2) Top Top 5 deposit market 5 deposit marketshare in99ofof1010largest share in largest MSAs MSAs(2) (3) Assets: $150.3 billion #12 Loans: $108.1 billion(4) #11 Deposits: $112.1 billion #12 Man
Slide 4: 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 Franchise Finance Credit/Debit Card relationships + product set Asset Finance Wealth Management Home E
Slide 5: Strong, clean balance sheet
Strong, clean balance sheet Well capitalized with a common equity tier 1 capital ratio of 11.2% Strong asset-quality performance with net charge-offs of 33 bps(1) in 1Q17 Robust deposit franchise with $91.0 billion of average core deposits(2); 55% retail Strong liquidity and fully compliant
Slide 6: We are led by a strong and experienced board & leadership team
We are led by a strong and experienced board & leadership team Since January 2015, have attracted or promoted from within ~32% of our Executive Leadership Group (top 137) Leadership Team Member Title Board Member Committees Chairman and Chief Executive Bruce Van Saun Chairman and Chief Executive Off
Slide 7: 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 & Society Customer-centric culture 7
Slide 8: Our vision and credo guide us
Our vision and credo guide us Mission To help our customers, colleagues and communities reach their potential To be a top-performing bank distinguished by its customer-centric culture, mindset Vision of continuous improvement and excellent capabilities We perform our best every day so we can do more
Slide 9: How we will stand out from the competition
How we will stand out from the competition Customer-centric focus reflecting: Expertise and deep knowledge of customers Strong High-quality advice Culture Team approach Insights from data and analytics Selective in how and where we play Seeking to self-fund investments through search for
Slide 10: Making consistent progress against our financial goals
Making consistent progress against our financial goals Goal is to deliver a 10%+ run-rate ROTCE in the medium term Key Indicators Medium-term 9.68% targets 8.98% Adjusted ROTCE(1) 6.76% 6.73% 6.67% 6.60% 6.75% 6.61% 7.30% 8.02% 8.43% 10%+ 4.34% 5.24% 5.24% 6.28% 6.22% Adjusted return on 0.91% averag
Slide 11: FY2016 performance vs. outlook
FY2016 performance vs. outlook Adjusted FY2016 outlook Actual Adjusted FY2016 vs. Adjusted FY2015(1) vs. FY2015(1) 5-6% earning asset growth 6% Balance sheet 6-8% loan growth 8% 5-7% deposit growth 6% Net interest margin 6-12 bps improvement 11 bps improvement Net interest in
Slide 12: 1Q17 performance vs. outlook
1Q17 performance vs. outlook 1Q17 outlook vs. 4Q16(1) Actual 1Q17 vs. 4Q16(1) Balance sheet ~1.5% loan growth 1.5% Net interest margin 2-3 bps improvement 6 bps improvement Net interest income 2% growth Noninterest income seasonally lower 1% Noninterest expense 1-2% 1% Op
Slide 13: Delivered attractive balance sheet and revenue growth in 1Q17
Delivered attractive balance sheet and revenue growth in 1Q17 1Q17 vs. 1Q16 A strong platform well-positioned to drive value Strong loan growth Growing revenues faster Higher NIM expansion (Average total loan growth) (Total revenue growth) (Net interest margin change) ` vs Peers 12.2% vs Peers vs Pe
Slide 14: With continued focus on expense control and improving returns
With continued focus on expense control and improving returns 1Q17 vs. 1Q16 Well-controlled expenses; Strong operating leverage Efficiency improvement (YoY Positive operating leverage(1)) (Efficiency ratio(1) change) investing for growth (Noninterest expense change) vs Peers vs Peers vs Peers 6.9% 7
Slide 15: Summary of progress on strategic initiatives
Summary of progress on strategic initiatives 1Q17 Initiative Commentary Status Primary households up ~23,000 YoY and added ~15,000 primary HHs with a loan or investment. Continue to Grow and deepen relationships build out Mass Affluent and Affluent value propositions. Citizens Checkup continues to h
Slide 16: Consumer Banking
Consumer Banking Results reflect strong loan growth, improving yields, and investment in talent, infrastructure, product and advisory capabilities Robust loan growth $s in billions Recognition $56.2 $56.9 $53.5 $54.0 $55.0 Top 5 JD Power recognition Mortgage servicing and originations(2) 1Q16 2Q16 3
Slide 17: Consumer Banking — Delivering on a multi-year growth strategy
Consumer Banking — Delivering on a multi-year growth strategy Utilizing segmentation strategies to drive primary household growth and attract, retain and deepen customer relationships ─ Enhancing Mass Affluent and Affluent offerings, expanding merchant partnership financing, growing education refi
Slide 18: Commercial Banking – Solid track record of delivering organic growth
Commercial Banking – Solid track record of delivering organic growth Results reflect continued investment in talent, and enhanced product and advisory capabilities $s in billions Strong loan growth Recognition $45.9 $46.5 $46.9 $48.0 $43.8 94% Barlow Overall Customer Satisfaction(3) 1Q16 2Q16 3Q16 4
Slide 19: Commercial Banking - Consistently enhancing our capabilities and gaining market share
Commercial Banking - Consistently enhancing our capabilities and gaining market share Drive deeper share of wallet with existing credit relationships and attract new relationships ─ Focus on enhancing product and service capabilities with selective extension into attractive growth areas ─ Prudentl
Slide 20: Key messages
Key messages We are making strong, consistent progress and will continue to focus on disciplined execution Citizens 1Q17 results highlight continued momentum ─ Strong revenue, net income and EPS growth ─ Robust operating leverage, expanding net interest margin, improving efficiency ratio and activ
Slide 21: Appendix: Key performance metrics, Non-GAAP financial measures and reconciliations
Appendix / Key performance metrics, Non-GAAP financial measures and reconciliations 21
Slide 22: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q17 Change 1Q17 4Q16 3Q16 2Q16 1Q16 4Q16 1Q16 $ % $ % Noninterest inc ome, adjusted: Noninterest income (GAAP) $379 $377 $435 $355 $330 $2 1% $49 15 % Les
Slide 23: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q17 Change 1Q17 4Q16 3Q16 2Q16 1Q16 4Q16 1Q16 $/bps % $/bps % Operating leverage: Total revenue (GAAP) A $1,384 $1,363 $1,380 $1,278 $1,234 $21 1.54 % $15
Slide 24: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q17 Change 1Q17 4Q16 3Q16 2Q16 1Q16 4Q16 1Q16 $/bps % $/bps % Tangible book value per c ommon share: Common shares - at end of period (GAAP) M 509,515,646
Slide 25: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 1Q17 Change 1Q17 4Q16 3Q16 2Q16 1Q16 4Q16 1Q16 $ % $ % Other inc ome, adjusted Other income (GAAP) $24 $25 $87 $15 $20 ($1) (4%) $4 20 % Less: Notable item
Slide 26: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data FULL Y EAR 2016 Change 2016 2015 2015 $ % Noninterest inc ome, adjusted: Noninterest income (GAAP) $1,497 $1,422 $75 5% Less: Special items — — — — Less: Notable items 67 —
Slide 27: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data FULL Y EAR 2016 Change 2016 2015 2015 $/bps % Operating leverage: Total revenue (GAAP) A $5,255 $4,824 $431 8.93 % Less: Noninterest expense (GAAP) C 3,352 3,259 93 2.85 Op
Slide 28: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data FULL Y EAR 2016 Change 2016 2015 2015 $/bps % Tangible book value per c ommon share: Common shares - at end of period (GAAP) Q 511,954,871 527,774,428 (15,819,557) (3%) Com
Slide 29: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data THREE MONTHS ENDED MAR 31, THREE MONTHS ENDED DEC 31, THREE MONTHS ENDED SEPT 30, THREE MONTHS2017 ENDED MAR 31, THREE MONTHS2016 ENDED DEC 31, THREE MONTHS2016 ENDED SEPT
Slide 30: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations QUARTERLY TRENDS $s in millions, except share, per share and ratio data 1Q17 Change 1Q17 4Q16 1Q16 4Q16 1Q16 $/bps % $/bps % Inc ome before inc ome tax expense (GAAP) A $434 $414 $332 $20 4.8 % $102 30.7 % Inc ome tax expense a
Slide 31: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data FOR THE THREE MONTHS ENDED MAR. 31, DEC. 31, SEP. 30, JUNE 30, MAR. 31, DEC. 31, SEP. 30, JUNE 30, MAR. 31, DEC. 31, SEP. 30, JUNE 30, MAR. 31, DEC. 31, SEP. 30, 2017 2016
Slide 32: Citizens Financial Group, Inc.
3< Citizens Financial Group, Inc.”
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