Regions Financial Corporation · NYSE:RF
Regions Financial — Bank of America Merrill Lynch Future of Financials 2016
21 slides from Regions Financial's conference presentation, Nov 15, 2016
Slide 1: Bank of America Merrill Lynch Future of Financials 2016
Bank of America Merrill Lynch “Future of Financials 2016” Scott Peters, Consumer Services Group Head Logan Pichel, Consumer Lending Group Head November 16, 2016 Exhibit 99.1
Slide 2: Strategic initiatives
Strategic initiatives Optimize and Effectively Deploy Regulatory Capital Disciplined Expense Management Grow and Diversify Revenue 2
Slide 3: Strategic choices driving Consumer Banking Strategy
Strategic choices driving Consumer Banking Strategy Consumer segment generated $3.5B in total revenue in 2015 and has grown +2% YTD Relationship Banking Model Continue to build best in class Risk Management Focused on Organic Growth Bolt on Acquisitions Focused on innovation that helps our customers
Slide 4: The right delivery model – Relationship Banking
The right delivery model – Relationship Banking Regions Customers 1,597 Branches 1,969 ATM’s 2.3 million Digital Users 200 million Social Media Views 91 million Contact Center calls per year Guided by Local Bankers and Digital Capabilities › Relationship Managers › Branch Team › Wealth Advisors › In
Slide 5: Core and priority markets
Core and priority markets 5 Core Deposit States Priority Growth Cities Atlanta Houston Core markets provide a sound source of deposits Core deposit markets represent 78%* of total deposits Growing branch presence in higher opportunity metro markets Opportunity to increase our presence in large marke
Slide 6: Reshaping our branch network to better serve our customers
6 Will consolidate 100 - 150 branches by 2018 and expect to be at the high end of the range. We will continue to look for opportunities to consolidate additional branches. Deploying new designs that leverage technology to provide self-service driving efficiency and freeing bankers for more valuable
Slide 7: Better serving our customers through innovation
Better serving our customers through innovation Track record of launching innovative initiatives such as: – Now Banking – Regions Mobile Deposit funds availability – GreenSky® – ATM check cashing – Avant ® – Fundation ® Engaging with FinTech companies and innovation incubators hosting annual digital
Slide 8: Innovative products - Now Banking
Innovative products - Now Banking 8 Now Banking is a full service cash banking platform designed to serve the cash flow management needs of low and middle income consumers, with or without a Regions account. Products and Services Success Factors Check Cashing Reloadable Cards Money Remittance Bill P
Slide 9: Innovative solutions to allow customers to bank the way they choose
Innovative solutions to allow customers to bank the way they choose 9 Simplifying and streamlining the digital account opening process. True definition of serving as a relationship bank and helping improve customers financial lives. Allows customers to access information quickly and easily; provides
Slide 10: Developed an addressable marketing system
10 Developed an addressable marketing system The system results in: – Targeted and timely customer offers and messages across channels – Increased Sales, Retention & Revenue – Continuous Improvement Enables the targeting of messages throughout the entire customer and prospect lifecycle Aggregated da
Slide 11: Well-positioned deposit base is a competitive advantage
36% 27% 21% 8% 8% Interest-free Money market Interest-bearing checking Time Savings $98B 56% 29% 11% 4% Consumer Segment Corporate Bank Segment Wealth Management Segment Other Well-positioned deposit base is a competitive advantage Deposits – Composition(1) Deposits – by Segment(1) (1) 3Q16 average
Slide 12: Cards and payments
Cards and payments Best in Class Visa Transaction Power Score ranking since 1Q14(1) 80%+ penetration of Regions Consumer Checking accounts 12 (1)Visa Consumer Debit 2Q16 Scorecard Results Participating in Apple Pay, Android Pay, Samsung Pay, and Visa Checkout Regions Mobile Deposit usage has grown m
Slide 13: Consumer loan product offerings
Consumer loan product offerings 13 Serving 500,000 households with a mortgage or home equity loan/line Vehicle lending through our preferred dealer network or directly through our branches Unsecured direct lending through our branch network and online capabilities Home improvement loans through our
Slide 14: Consumer loans – steady year-over-year growth
Consumer loans – steady year-over-year growth 14 Product 3Q16 Avg. Balance YOY Growth Mortgage $13.2B +4.7% Indirect – Vehicles $4.1B +6.5% Indirect – Other Consumer $0.8B +77.4% Consumer Credit Card $1.1B +10.6% Successful execution on our strategic plan to grow consumer loans Expand Home Loan Dire
Slide 15: Indirect home improvement loans partnered with GreenSky
Indirect home improvement loans partnered with GreenSky® 15 Partnership puts customer convenience at the forefront Outstanding balances at Sept 30 ~$660MM Average FICO score ~745 Average loan size ~$12k Average going-on rate 9-11%
Slide 16: Focused on profitability within the indirect vehicle portfolio
Focused on profitability within the indirect vehicle portfolio 16 Focused on improving the economics of the portfolio Continued focus on growing the Preferred Dealer Network which yields better returns – 25% of total dealers and 60% of direct dealer production Avg FICO above 740 Avg Term ~68 months
Slide 17: Regions Personal Unsecured Loans Powered by Avant
Regions Personal Unsecured Loans Powered by Avant 17 New online platform rolled out in August for unsecured consumer loans Early results are meeting expectations Just recently began marketing Avg FICO 700-750 – Avg Loan Balance $10k – Avg Term 36 months – Avg Rate 8-9%
Slide 18: Strategic initiatives
Strategic initiatives Optimize and Effectively Deploy Regulatory Capital Attractive ROA and Risk Adjusted Returns Return appropriate capital to shareholders Disciplined Expense Management $400mm in expense saves by 2019 Continuously focus on efficiency and effectiveness Generate positive o
Slide 19: A. REGIONS
A. REGIONS
Slide 20: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance. Forward-looking statements are not based on historica
Slide 21: Forward-looking statements continued
Forward-looking statements continued The foregoing list of factors is not exhaustive. For discussion of these and other factors that may cause actual results to differ from expectations, look under the captions “Forward-Looking Statements” and “Risk Factors" of Regions' Annual Report on Form 10-K fo
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