Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Goldman Sachs US Financial Services Conference 2016
24 slides from Citizens Financial's conference presentation, December 2016
Slide 1: Goldman Sachs US Financial Services Conference 2016
Goldman Sachs US Financial Services Conference 2016 December 2016 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(3) Top 5 deposit market share in 9 of 10 largest MSAs(2) Assets: $147.0 billion #12 Loans: $106.0 billion(4) #11 Deposits: $108.3 billion #12 Manchester, NH: #1 Rochester, NY: #5 Branches: ~1,
Slide 4: 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 3
Slide 5: Our plan has clear objectives for each stakeholder
Our plan has clear objectives for each stakeholder Achieve current targets, then raise the bar Investors Strive for consistency in performance, limit tail risk Target attractive high payout ratio; steady and growing dividend Continue to improve customer satisfaction ─ Top 10 in JD Power for
Slide 6: We are making steady progress without rate hikes
We are making steady progress without rate hikes Medium- term target 7.30% 8.02% Key points 6.76% 6.73% 6.67% 6.60% 6.75% 6.61% 10% + ROTCE 6.28% 6.22% Capturing revenue Adjusted 5.24% 5.24% potential of ROTCE(1) 4.34% franchise Using strong balance sheet and Efficiency 70% targeted hiring to 68
Slide 7: Good execution of plan is driving balance sheet and revenue momentum
Good execution of plan is driving balance sheet and revenue momentum 3Q16 vs. 3Q15 A strong platform well positioned to drive value Strong loan growth Growing revenues faster Higher NIM expansion (Average total loan growth) (Adjusted revenue growth(1)) (Net interest margin change) 7.5% 14.1% 8 bps 3
Slide 8: With continued focus on positive operating leverage and improving returns
With continued focus on positive operating leverage and improving returns 3Q16 vs. 3Q15 Well-controlled expenses; Strong operating leverage Efficiency improvement (YoY Adjusted Operating Leverage(1)) (Adjusted efficiency ratio(1) change) investing for growth (Adjusted noninterest expense(1) change)
Slide 9: We are focused on continuous improvement
We are focused on continuous improvement Heighten focus on end-to-end customer experience Delivering for the Further improve segment value propositions and how colleagues deliver customer against them Increase customer retention through targeted strategies Continue to enhance product offerin
Slide 10: Self funding necessary investments through our efficiency initiatives
Self funding necessary investments through our efficiency initiatives Tapping Our Potential (TOP) programs remain on track TOP II Program TOP III Program Launched mid 2015 — On track to deliver Launched mid 2016 — Targeted run-rate $100 -$105 million annual pre-tax benefit by end of 2016 benefit of
Slide 11: Prudently deploying excess capital to further enhance returns
Prudently deploying excess capital to further enhance returns CET1 ratio of 11.3% versus 10.3% peer average offers Capital-normalization strategy represents prudent significant flexibility CET1 glide path, though still above peer targets Glide path down permits both strong loan growth and capita
Slide 12: Potential benefits from U.S. election results
Potential benefits from U.S. election results Market expects… Potential impact Higher likelihood of fiscal stimulus Greater economic activity, demand for loans and services Steepening of yield curve; greater Benefit to NIM, though less confidence in Fed short rate hike refinancing opportunit
Slide 13: Key messages
Key messages Will continue to stay focused on execution of turnaround plan ─ Positioned for continued momentum in 4Q16 and 2017 ─ Key to financial results is to grow the balance sheet smartly with continued focus on building out fee businesses and delivering positive operating leverage Citizens
Slide 14: Appendix
Appendix 3% Citizens Financial Group, Inc.” B
Slide 15: Consumer Banking
Consumer Banking Growth driven by strong loan growth, NIM expansion, and investment in talent, infrastructure, $s in billions product and advisory capabilities Strong loan growth(1) Growth rate Delivering on a multi-year targeted growth strategy $51.6 $52.5 $53.5 $54.0 $55.0 8.3% – Continuing to l
Slide 16: Large wealth opportunity with focused strategy to pursue
Large wealth opportunity with focused strategy to pursue Accelerate the growth of clients into our value proposition in order to deepen product penetration and share of wallet and drive fee income growth Strategy Opportunity to drive fee income growth (Wealth Fees/Average Earning Assets(1)) Scalin
Slide 17: Commercial Banking – Solid track record of delivering organic growth
Commercial Banking – Solid track record of delivering organic growth Growth driven by robust loan and deposit growth, investment in talent, and broadening of capabilities Strong loan growth(1) Growth $s in billions rate Delivering on a multi-year growth strategy $43.8 $45.9 $46.5 14.9% – Focus on
Slide 18: 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 Capital and Global Markets fee income Corporate Finance professionals key to supporting $s in millions solutions-
Slide 19: Treasury Solutions opportunity
Treasury Solutions opportunity Investing to drive continued revenue growth with focus on improving client penetration and market share Treasury Solutions Commercial Banking fees(1) Treasury Solutions fee income up 14% YTD in 2016 versus 2015 with good momentum vs. estimated 2015 industry growth of
Slide 20: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations
Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations Adjusted – excluding restructuring charges, special items and/or notable items (dollars in millions, except per-share data) 3Q16 3Q15 3Q16 Change from 3Q15 $/bps %/bps Noninterest income, adjusted: Noninterest income (GAAP) $43
Slide 21: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations
Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations Adjusted – excluding restructuring charges, special items and/or notable items (dollars in millions, except per-share data) QUARTERLY TRENDS 3Q16 Change from 3Q16 3Q15 3Q15 $/bps Return on average tangible common equity and ret
Slide 22: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations
Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations Adjusted – excluding restructuring charges, special items and/or notable items (dollars in millions, except per-share data) SEP. 30, JUNE 30, MAR. 31, DEC. 31, SEP. 30, JUNE 30, MAR. 31, DEC. 31, SEP. 30, JUNE 30, MAR. 31, DEC.
Slide 23: Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations
Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations Adjusted – excluding restructuring charges, special items and/or notable items (dollars in millions) FOR THE THREE MONTHS ENDED SEP. 30, JUNE 30, MAR. 31, DEC. 31, SEP. 30, 2016 2016 2016 2015 2015 Commercial Segment Total reve
Slide 24: Citizens Financial Group, Inc.
3< Citizens Financial Group, Inc.”
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