Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Americas Select Franchise Conference 2023
22 slides from Citizens Financial's conference presentation, May 9, 2023
Slide 1: Barclays Americas Select Franchise Conference
Barclays Americas Select Franchise Conference May 9, 2023 Bruce Van Saun Chairman, Chief Executive Officer
Slide 2: Forward-looking statements and use of non-GAAP financial measures
2 Forward-looking statements and use of non-GAAP financial measures This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These sta
Slide 3: Navigating well through a dynamic environment
3 Navigating well through a dynamic environment Disciplined offense to drive attractive performance over the medium term Robust capital position and a prudent risk appetite Strong defense to manage the risks of a challenging environment Quality deposit franchise and strong liquidity position Well po
Slide 4: Strong franchise with leading positions in attractive markets
4 Strong franchise with leading positions in attractive markets Highlights Attractive footprint with large mass-affluent and affluent segments See page 20 for notes and important information on Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude t
Slide 5: Consumer strategic growth and profitability initiatives
5 Consumer strategic growth and profitability initiatives Increasing advisors Scale financial planning, driving productivity step change Leverage CitizensPlusTM rewards program to deepen relationships Focused on five key areas that will drive outsized revenue growth in the medium term Focus
Slide 6: Commercial Banking - broadening capabilities and strengthening execution
6 Commercial Banking - broadening capabilities and strengthening execution Delivering resultsTransformed business since IPOStrategic Priorities Capital and Global Markets fees up ~82% ‘18-‘22 6th year in a row named Best Treasury & Cash Management Bank by Global Finance 22% increase in lead lending
Slide 7: Entry into New York Metro progressing well
7 Entry into New York Metro progressing well 7 Capitalizing on opportunities to capture market share in NYC/NJ Top 10 market share(1) with ~200 branches and ~$23B in deposits ~200 new branches and 1 million+ Customer accounts migrated Sales volumes beating expectations with growing momentum ~1.5x Cu
Slide 8: Current areas of interest in the banking industry
8 Current areas of interest in the banking industry Quality deposit franchise Strength of capital base Maintaining a strong liquidity position CRE sector concerns Potential regulatory changes ■ Consumer deposit base represents ~67% of total deposits, near top of peer group ■ Commercial deposits are
Slide 9: Strong capital position
9 Strong capital position(1) Key messages ■ Prudent capital management, including the decision to prioritize returns over growth in recent quarters, has resulted in a strong capital position – CET1 ratio including impact from net unrealized losses on debt securities in AOCI and TCE ratio are among t
Slide 10: Highly diversified and retail-oriented deposit base
10 (As of 3/31/23) Highly diversified and retail-oriented deposit base $172B DepositsBusiness Mix Product Mix See page 20 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described above. Tota
Slide 11: Period-end deposit performance since mid-2022 is in line with industry
11 -5% -4% -3% -2% -1% 0% 1% 2% 2Q22 3Q22 4Q22 1Q23 30-Apr CFG Cum (2Q) H8 Cum (2Q) Peer ■ The 4.7% decrease QoQ in spot deposits was driven by seasonality and rate-related outflows, and was ~1% greater than our forecast for Q1 at the beginning of the year ■ We had deposit growth in 2H22 verses indu
Slide 12: Deposit growth strategies
12 Deposit growth strategies ■ Attractive opportunities in the NY Metro market post- conversion of Investors branches ■ Relationships with new Treasury Solutions clients as a result of the dislocation in March represent a meaningful and more diversified deposit opportunity ■ Continue to expand our c
Slide 13: TOP 8 program benefits
13 ■ TOP 8 underway and progressing well ■ In light of the environment, looking for opportunities to augment the program ■ Further efficiencies under consideration: – Further simplification of operating models – Demand management procurement opportunities – Re-imagination of operations leveraging au
Slide 14: Navigating well through a dynamic environment
14 Navigating well through a dynamic environment – Multi-year investments in fee-generation capabilities to deliver superior revenue growth in the medium term – New York Metro market entry progressing well; provides significant revenue growth potential – Driving momentum in Wealth with launch of Cit
Slide 15: Appendix
Appendix
Slide 16: Commercial credit portfolio
16 $80.9B Commercial credit portfolio See page 20 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described above. Commercial portfolio risk ratings(2) $s in billions B- and lower B+ to B BB+
Slide 17: Commercial Real Estate sector concerns
17 Commercial Real Estate sector concerns Commentary ■ CRE portfolio is well diversified across asset type, geography, and borrowers with the emphasis on strong sponsor selection ■ Strong client selection including institutional and private investors with long-term Citizens relationships ■ Continue
Slide 18: Commercial Real Estate - $6.3B Office Portfolio: well diversified
18 Commercial Real Estate - $6.3B Office Portfolio: well diversified Geography Mid-Atlantic Midwest New England Other NC 4 % WA 3 % GA 3 % DC 2 % Other 9 % Other General office $4.1B Credit tenant $1.5B Life sciences $0.7B Property type $4.1B General office breakdown TX CA VA
Slide 19: Retail credit portfolio
19 $73.8B Retail credit portfolio See page 20 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described above. 800+ 740-799 680-739 640-679 <640 $61.6 $73.8 $s in billions Retail portfolio FI
Slide 20: Notes on Non-GAAP Financial Measures
20 Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results and including AOCI
Slide 21: Non-GAAP financial measures and reconciliations
21 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS 1Q23 Change 1Q23 4Q22 4Q22 $/bps % CET1 Ratio Adjusted for AFS & HTM unrealized losses CET1 capital $ 18,370 $ 18,574 $ (204) (1) % Less: AFS securities - AOCI 1,516 1,840 (324) (18) % Less: HTM securities - AOCI 907 931 (24) (3) %
Slide 22: Citizens Financial Group, Inc.
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Citizens Financial Group — Barclays Americas Select Franchise Conference 2023 on 6ix