Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Deutsche Bank Global Financial Services Conference 2016
18 slides from Citizens Financial's conference presentation, Jun 1, 2016
Slide 1: Deutsche Bank Global Financial Services Conference
Deutsche Bank Global Financial Services Conference June 1, 2016 Eric Aboaf, Chief Financial Officer Brad Conner, Head of Consumer 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: Have developed 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: Consumer Banking key business lines
Consumer Banking key business lines Serving ~2.6MM households and 330K small businesses In-Footprint Wealth Distribution Everyday Banking Business Banking Home Mortgage Consumer Lending Management Simon Griffiths John Rosenfeld Chris Ward Chris Nard Brendan Coughlin Joined 2015 Joined 2013 New Role
Slide 9: Adapting to serve customers better
Adapting to serve customers better Citizens Checkup Digitization Network revitalization Launched in Feb 2016 as part of Award-winning mobile and online Leverage branch lease expirations TOP II platforms driving move to digital to reshape the network while meeting the following objectives: ─ De
Slide 10: And drive improved cross-sell and efficiency
And drive improved cross-sell and efficiency (1) Product penetration % Direct deposit 70.6% Leveraging marketing and enhanced customer Active online outreach to drive improved customer banking 55.0% acquisition, engagement, cross-sell and retention Consumer loan 32.8% ─ Launched Simple. Clear. Per
Slide 11: Wealth Management opportunity
Wealth Management opportunity Highly attractive client base with significant opportunity to increase client penetration and share of wallet CFG HHs(1) Peer HHs 4% ~52% of CFG HHs Average CFG WM 30% 18% are Mass Affluent, Target HH Affluent or High Net Estimated Investment Balance 49% Worth vs. ~49%
Slide 12: Deepening share with existing Citizens clients is biggest growth opportunity
Deepening share with existing Citizens clients is biggest growth opportunity $s in billions Modest wallet share gains offer opportunity to generate balance growth Deposit and Investment Balances, Existing Consumer Banking Households(1) $476.0 $421.8 $385.6 $295.1 $191.0 CFG HH Investments at other f
Slide 13: Enhancing our advisor platform to focus on more affluent clients
As we enhance our advisor platform to increase our focus on more affluent clients Delivering an integrated banking and investing experience through advisory-based team models 2016 & Beyond Private Bank Portfolio Plans to augment advisor base and increase focus Wealth Senior Banker Manager on serving
Slide 14: In summary, large wealth opportunity and focused strategy to pursue
In summary, large wealth opportunity and focused strategy to pursue $s in billions 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/Earning A
Slide 15: Appendix
Appendix 3% Citizens Financial Group, Inc.” 15
Slide 16: 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 17: 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 Pro forma Basel III fully phased-in common equity tier 1 capital ratio1: Common equity tier 1 (regulatory) $13,570 Less: Change in DT
Slide 18: Citizens Financial Group, Inc.
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Citizens Financial Group — Deutsche Bank Global Financial Services Conference 2016 on 6ix