Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Credit Suisse 19th Annual Financial Services Forum 2018
18 slides from Citizens Financial's conference presentation, Feb 14, 2018
Slide 1: Credit Suisse 19th Annual Financial Services Forum
Credit Suisse 19th Annual Financial Services Forum John F. Woods Chief Financial Officer February 14, 2018 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 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 $152.3 billion in total assets(1) Robust deposit market share of 12% in top 10 MSAs(2) #2 deposit market share in New England(2) Diverse economies/affluent demographics Serve 5 million+ individuals, institutions and companies 2.6 million r
Slide 4: Substantial progress in prudently growing the balance sheet
Consumer Substantial progress in prudently growing the balance sheet Dimension(1) Rank(2) Assets: $152.3 billion #13 Loans: $110.6 billion(3) #11 Deposits: $115.1 billion #12 nationally; Top 5 rank in 9/10 markets(4) Mortgage: $17.0 billion #13 nationally(5) Education: $8.1 billion Top 4 rank nation
Slide 5: Making consistent progress against our financial goals
Efficiency ratio(1) ~52-56% Making consistent progress against our financial goals ROTCE(1) (Return on average tangible common equity) (2) Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and in the appendix of this presentation for an expl
Slide 6: Further opportunities to improve returns: TOP
Further opportunities to improve returns: TOP Continuous improvement - TOP programs Self-fund investments through efficiency, expense discipline and mindset of continuous improvement Use new technologies to deliver more effective outcomes at lower costs TOP IV program targeting run-rate pre-tax bene
Slide 7: Further opportunities to improve returns: BSO
Further opportunities to improve returns: BSO Balance Sheet Optimization (“BSO”) Improve risk-adjusted returns and NIM while driving growth Enterprise-wide initiative with the same intensity and rigor as our TOP efficiency programs Recycle capital into more accretive growth and relationship categori
Slide 8: Further opportunities to improve returns: Growth in fee income businesses
Further opportunities to improve returns: Growth in fee income businesses Fee income Wealth Investments in FCs and sales, technology platforms and products with shift toward managed money SpeciFi™ robo-advisor launched 3Q17 Business Banking Fundation FinTech partnership to automate small business un
Slide 9: New medium-term financial targets
New medium-term financial targets ROTCE ~13-15% Efficiency Ratio ~52-56% CET 1 ~10.0-10.25% Dividend payout ratio ~35-40% Please see important information on Key Performance Metrics and Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these m
Slide 10: Key messages
Key messages Citizens continues to execute well and deliver for shareholders Strong 4Q17 results with Underlying ROTCE of 10.4% up from 4.3% in 3Q13(1) Strong Underlying EPS growth of 29%, with operating leverage of 6.4% YoY, and efficiency ratio of 58.5%(1) Tangible book value per share of $27.48 a
Slide 11: Appendix
Appendix Xx Citizens nancial Group,
Slide 12: Remain rate sensitive
Remain rate sensitive Net interest income positioned to continue to benefit from rising rates Our asset sensitivity has remained relatively stable at 5.1% Interest rate sensitivity trend Interest rate sensitivity ranking (200 bps gradual increase) Note: CFG data as of 4Q17. Peer data from SNL as of
Slide 13: Focus on growing fee income delivering steady progress
$381 (1) YoY fee income growth Focus on growing fee income delivering steady progress Wealth fees: Fee-based sales 37% for 4Q17. Enhanced client targeting should drive additional growth Mortgage fees: Seeing success in shifting conforming mix to 45% in 4Q17 with more opportunity to improve. Expect t
Slide 14: Further opportunities to improve returns: Capital management
Source: Quarterly earnings documents and disclosures. Data as of 4Q17 on a U.S. Basel III transitional basis. Per the final transition provision rule issued by banking regulators on November 21, 2017, U.S. Basel III ratio definitions impacting risk weighted assets and qualifying U.S. Basel III Capit
Slide 15: TOP IV initiatives ramping up and making good progress
Organization Simplification: savings identified through shadow role elimination, rightsizing and “gearing”, and other operational efficiencies; moving to implementation across businesses Lean/Process Improvement: lean engineering team hired; sprints underway for risk/compliance and end-to-end Commer
Slide 16: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data
Slide 17: Key performance metrics, Non-GAAP financial measures and reconciliations
Key performance metrics, Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data
Slide 18: 3* Citizens
3* Citizens Financial Group, Inc.”
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