Regions Financial Corporation · NYSE:RF
Regions Financial — Goldman Sachs U.S. Financial Services Conference 2017
16 slides from Regions Financial's conference presentation, Dec 5, 2017
Slide 1: Goldman Sachs U.S. Financial Services Conference
Goldman Sachs U.S. Financial Services Conference December 5, 2017
Slide 2: 2017 YTD Results
2017 YTD Results (1) Results reflect continued execution of our strategic plan Profitability • Net income(2) increased 7% YTD and diluted EPS(2) increased 13% YTD • Net interest income and other financing income (FTE) increased 4% YTD • Net interest margin increased 18 bps YTD to 3.31% • Non-interes
Slide 3: Economic outlook for 2018
Economic outlook for 2018 U.S. and Regions Footprint U.S. Economy Regions Footprint Real GDP Improving global Improving labor growth ~ 2.4% economic growth market conditions • Job and income growth should remain in line with U.S. averages; look for gradual reductions in the • 2018 assumptions based
Slide 4: Loan Outlook - Consumer Portfolio
Loan Outlook - Consumer Portfolio Continued steady growth Industry Outlook Regions Regions - Upside 2018 Outlook Macro -Downside • Health of the consumer remains strong • Excluding indirect vehicle, 2017 growth • Low unemployment outperformed industry averages across most • Increasing household weal
Slide 5: Loan Outlook - Business Portfolio
Loan Outlook - Business Portfolio Focused on prudent growth Industry Outlook Regions Regions - Upside 2018 Outlook Macro -Downside • Tax reform could provide relief to businesses • Expected losses from originations (2014 - waiting for clarity current) are significantly better than historical • Compe
Slide 6: Deposit advantage
Deposit advantage Expected to continue Deposits by Customer Type(1) 3Q17 vs. 3Q15 Change in Deposit Costs(2) (Retail vs. Business) Peer #1 0bps 3Q17, ($ in billions) Peer #2 1bps Private Institutional Peer #3 3bps Wealth* Trust* Peer #4 6bps $8 $1 RF 6bps Peer #5 9bps Peer #6 10bps Consumer $28 Peer
Slide 7: Making it easier for customers to do business with us
Making it easier for customers to do business with us Why: • Industry undergoing a transformational change • Meeting customers' growing demand for an easier, faster, and more convenient way to conduct financial business How: • Remove internal silos and reduce friction • Simplify tasks that don't con
Slide 8: Simplify and Grow the Bank
Simplify and Grow the Bank A three year journey Customer Journeys Organization Revenue Growth Efficiency • Digitization Simplification • Faster launch of Improvements • Loan process • Spans and layers new initiatives • Robotics and • Account opening review • Advanced artificial • Streamline credit •
Slide 9: Revenue and expense initiatives
Revenue and expense initiatives Leveraging 2017 successes to boost 2018 efficiency Non-Interest Income Initiatives Non-Interest Expense Initiatives Continue core account growth; 2017 YoY growth includes: Retail Network Strategy – 1.2% YoY checking growth – ~10% decline of branches last two years – 5
Slide 10: On target to meet long-term goals
On target to meet long-term goals 2016-2018 Remain on track 10
Slide 11: 2018 expectations
2018 expectations • Full-year average loans are expected to grow low single digits, excluding impact of third-party indirect-vehicle portfolio • Full-year average deposits are expected to grow low single digits, excluding collateralized wealth management deposits • Adjusted operating leverage of 3%
Slide 12: Managing for long-term performance
Managing for long-term performance Opportunities to drive growth and efficiencies Execution of Strategic Efficiency Opportunities Initiatives Identify and execute additional • Grow and diversify revenue opportunities to reduce expenses • Disciplined expense management through our Simplify and Grow t
Slide 13: Appendix
Appendix 13 Ar REGIONS
Slide 14: Forward-looking statements
Forward-looking statements This presentation may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The terms “Regions,” the “Company,” “we,” “us” and “our” mean Regions Financial Corporation, a Delaware corporation, and its subsidiaries when or wh
Slide 15: Forward-looking statements continued
Forward-looking statements continued • Our ability to execute on our strategic and operational plans, including our ability to fully realize the financial and non-financial benefits relating to our strategic initiatives. • The success of our marketing efforts in attracting and retaining customers. •
Slide 16: Regions
A REGIONS
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