Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Americas Select Conference 2019
35 slides from Citizens Financial's conference presentation, May 14, 2019
Slide 1: Barclays Americas Select Conference 2019
Barclays Americas Select Conference 2019 Bruce Van Saun Chief Executive Officer May 14, 2019 Exhibit 99.1
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 meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends are
Slide 3: Strong franchise with leading positions in attractive markets
Strong franchise with leading positions in attractive markets(1) Assets $161.3 Rank #13 Loans $117.6 Rank #11 Deposits $123.9 Rank #11 Footprint GDP above national average Personal consumption 43% higher than the national average Higher percentage of individuals with 4-year degrees or higher Higher
Slide 4: Diversified and balanced business model
Diversified and balanced business model(1) Commercial Coverage Commercial & Industrial Banking Commercial Real Estate Corporate Verticals Healthcare Technology Oil & Gas Aerospace & Defense Franchise Finance Products Loans and Deposits Capital Markets Global Markets M&A Advisory Treasury Solutions E
Slide 5: Aiming for Excellence
Aiming for Excellence To help our customers, colleagues and communities reach their potential Objective is to be a top-performing bank that delivers well for all stakeholders Committed to excellence in every dimension Focused on long-term franchise value and consistent delivery of earnings growth an
Slide 6: Delivering on our commitments
Delivering on our commitments ~10.0-10.25% Underlying ROTCE(1) Underlying efficiency ratio(1) Common equity tier 1 ratio Continue to hit targets, raise the bar ü See pages 27-28 for notes and important information on Key Performance Metrics and Non-GAAP Financial Measures, as applicable, including “
Slide 7: Strong execution of turnaround effort has led to outperformance vs peers
Peer average Adjusted CFG Underlying/Adjusted Return on tangible common equity (Return on average tangible common equity change) â 5% vs Peers Efficiency improvement (Efficiency ratio change) á 12.7% vs Peers Strong operating leverage (Positive operating leverage) EPS Growth (Earnings per common sha
Slide 8: TOP programs driving improvement in efficiency and effectiveness
“TOP” programs driving improvement in efficiency and effectiveness #2 Efficiency Ratio â 8% #2 #2 Executive Summary---Positioning Citizens to Investors Closing the gap to peers and building a high performing bank EPS ROTCE ’14-’18 CAGR 26% Generating impressive EPS growth by expanding capabilities a
Slide 9: Closing the gap to peers and building a high performing bank
% Better than peers #3 Deposits(3) Loans(3) Fee Income Net Interest Income Executive Summary---Positioning Citizens to Investors ’14-’18 CAGR 6% Reflects growth and balance sheet optimization initiatives Growth reflects organic investments and targeted M&A Prudent releveraging of the balance sheet p
Slide 10: Innovating for attractive growth
Innovating for attractive growth Consistently expanding our wealth platform Have taken mortgage to the next level á~30 % Created innovative merchant finance partnership platform with exceptional customer experience Created top-15 bank-owned mortgage platform, with over 440,000 households in 50 state
Slide 11: Committed to excellence in every dimension
Committed to excellence in every dimension Commitment to colleagues and a meaningful work experience Building a diverse workforce with an inclusive culture Supporting communities via Citizens Charitable Foundation and colleague volunteerism Serving as trusted advisor #1 Temkin Consumer customer expe
Slide 12: Making the investments to position us favorably for the long-term
Making the investments to position us favorably for the long-term Driving momentum with up-tiered talent and geographic expansion Enhancing product and advisory capabilities Improving client experience with new tools and data Deepening relationships Diversifying fee income Investing in future-orient
Slide 13: Commercial Banking – highlights
Commercial Banking – highlights Lead relationship growth(1) Successful expansion into Southeast and Texas Acquired ~1,050 net new clients since 2015 Adding talent with 34 new producer hires during 2018 Continued progress in diversifying fee income, with record 1Q19 capital markets fees up ~210% and
Slide 14: Enhancing our platform - Commercial
Enhancing our platform - Commercial Recognition Enhancements Partnerships Simplified client experience, with new tools to manage data and help clients access information Enhanced treasury solutions capabilities to help clients improve efficiency and profitability More than doubled M&A advisory platf
Slide 15: Consumer Banking – highlights
+10% Consumer Banking – highlights Investments in data analytics, digitization, branch modernization and customer journeys are driving positive customer & financial results Growing total households with a strategic focus on Mass Affluent/Affluent Serve 1.4 million HNW/Affluent/Mass Affluent in-footp
Slide 16: Enhancing our platform - Consumer
Enhancing our platform - Consumer Recognition(1) Enhancements Partnerships Ranked #1 Enhanced digital capabilities with Citizens Access®; raised $4.6 billion nationally as of 1Q19 Created top-15 bank owned mortgage servicer & originator with $89.3 billion servicing portfolio as of 1Q19 Augmented Wea
Slide 17: Investing in future-oriented digital services and technology platforms
Investing in future-oriented digital services and technology platforms Adaptive security Open architecture Cloud Agile Modernize strategic platforms Data analytics Convert data into intelligence Deliver access to high quality data for decision-making Enhance customer acquisition Deliver personalized
Slide 18: Continuously streamlining expense base to self-fund required investments
Continuously streamlining expense base to self-fund required investments(1) Focus on top-line growth and expense discipline drives positive operating leverage $s in millions 7% ’14-18 CAGR Revenue Expense 3% Operating leverage ~$200 ~$140 ~$115 ~$115 ~$95-105 Top program benefits See pages 27-28 for
Slide 19: Prudently managing capital
Prudently managing capital Continue to normalize our capital levels while delivering attractive returns to our shareholders through a combination of dividends (target payout 35-40%) and share repurchases Maintain flexibility to deploy capital for organic growth or targeted acquisitions Continue to o
Slide 20: Diversified portfolio with continued strong credit performance
$59.9 billion 4Q18 retail portfolio(1) $56.8 billion 4Q18 commercial portfolio(2) Leases C&I CRE Diversified portfolio with continued strong credit performance Weighted-average FICO score of ~765 ~75% collateralized ~80% of the retail real estate portfolio is 1st lien secured Highly granular and div
Slide 21: Strong credit-quality trends continue
Strong credit-quality trends continue $s in millions Nonperforming loans Allowance for loan and lease losses Overall credit quality remains strong, reflecting growth in lower-risk retail portfolios and a stable risk profile in commercial (1) 25% decrease See pages 27-28 for notes and important infor
Slide 22: We delivered a strong 1Q19 and maintain a positive 2019 outlook
We delivered a strong 1Q19 and maintain a positive 2019 outlook Citizens 1Q19 results highlight disciplined execution and continued momentum Delivered EPS growth of 18% YoY, 19% on Underlying basis(1) 13.0% ROTCE, 13.1% on Underlying basis(1) 59.0% efficiency ratio, 58.7% on Underlying basis(1) Oper
Slide 23: Looking forward
Looking forward Success will be driven by what got us here today Continued investments in our future Strong and experienced board and leadership team, best-in-class talent Commitment to excellence in every dimension Proven execution ability Focus on our customers Long-term positioning to deliver ear
Slide 24: Key messages
Key messages Strong franchise with leading positions in attractive markets Achieved IPO-based objectives and elevated our targets Robust balance sheet position with focus on disciplined capital allocation Credit quality and key coverage metrics remain strong Continuing to grow more attractive risk-a
Slide 25: Appendix / Key performance metrics, Non-GAAP financial measures and reconciliations
Appendix / Key performance metrics, Non-GAAP financial measures and reconciliations
Slide 26: Core commercial portfolio risk-ratings improved YoY
Core commercial portfolio risk-ratings improved YoY(1) Highly disciplined on credit: diversified and granular core loan mix Super prime/prime-focused retail portfolio Core mortgage – FICO ~790; CLTV of ~60% Core home equity – FICO ~765; 53% 1st lien Auto – FICO ~730 Education lending – FICO ~780 Uns
Slide 27: Notes on Key Performance Metrics and Non-GAAP Financial Measures
Notes Notes on Key Performance Metrics and Non-GAAP Financial Measures See important information on Key Performance Metrics and Non-GAAP Financial Measures, as applicable, at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and
Slide 28: Notes on Key Performance Metrics and Non-GAAP Financial Measures
Notes Notes on Key Performance Metrics and Non-GAAP Financial Measures See important information on Key Performance Metrics and Non-GAAP Financial Measures, as applicable, at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and
Slide 29: 2014-2018 GAAP financial summary
2014-2018 GAAP financial summary See pages 27-28 for notes and important information on Key Performance Metrics and Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items.
Slide 30: 1Q19 GAAP financial summary
1Q19 GAAP financial summary $s in millions Net interest income Noninterest income Total revenue Noninterest expense Pre-provision profit, idends Net income available to common stockholders $sin billions ‘Average interest-earning assets werage deposits ed 1019 change from 1q194Qis_—=SC«QNB 4Q18 1 Sfo
Slide 31: Key performance metrics, Non-GAAP financial measures and reconciliations, Underlying
Key performance metrics, Non-GAAP financial measures and reconciliations, Underlying $s in millions, except share, per share and ratio data
Slide 32: Key performance metrics, Non-GAAP financial measures and reconciliations, Underlying
Key performance metrics, Non-GAAP financial measures and reconciliations, Underlying $s in millions, except share, per share and ratio data
Slide 33: Non-GAAP reconciliations – Underlying excluding FAMC
Key performance metrics, Non-GAAP financial measures and reconciliations – Underlying excluding FAMC $s in millions, except share, per share and ratio data
Slide 34: Non-GAAP reconciliations – Underlying excluding Acquisitions
Key performance metrics, Non-GAAP financial measures and reconciliations – Underlying excluding Acquisitions $s in millions, except share, per share and ratio data
Slide 35: Citizens Financial Group, Inc.
3* Citizens Financial Group, Inc.”
Citizens Financial Group — Barclays Americas Select Conference 2019 on 6ix