Regions Financial Corporation · NYSE:RF
Regions Financial — Barclays Financial Services Conference 2018
16 slides from Regions Financial's conference presentation, Sep 13, 2018
Slide 1: Barclays Financial Services Conference
Barclays Financial Services Conference September 13, 2018
Slide 2: Managing for long-term performance
Managing for long-term performance Opportunities to drive growth and efficiencies Asset sensitivity Capital return Significant funding advantage Capital sufficient for organic driven by low-cost deposit growth, strategic opportunities, & base; accretive fixed-rate robust shareholder returns reinvest
Slide 3: Deposit advantage
Deposit advantage Expected to continue Average deposits by 2Q18 vs. 3Q15 change in interest customer type bearing deposit costs(1) (Retail vs. Business) 2Q18, ($ in billions) Private Institutional Wealth(2) Services(2) $1 Consumer Segment Corporate Segment Other Segment(2) $1 (1) Source: SNL Financi
Slide 4: Deposit advantage: Benefiting from high market share
Deposit advantage Benefiting from high market share High market share(1) in core markets ($ in billions) • Top 5 or better market share in Market Market Top MSAs Deposits Rank Top MSAs Deposits Rank 70% of MSAs across 15-state footprint(2) Birmingham, AL $11.2 1 Montgomery, AL $1.7 1 Nashville, TN $
Slide 5: Asset quality & improved risk profile
Asset quality & improved risk profile Criticized ($ in millions) business loans NPLs and coverage ratio(1) ($ in millions) • Non-performing, criticized, and troubled debt restructured loans, as well as total delinquencies, continue to improve • NPLs at lowest level since 2007 • Significant enhanceme
Slide 6: Strong capital levels
Strong capital levels Basel III common equity tier 1 ratio(1) Capital priorities (1) Current quarter ratio is estimated. Ratios are as of 6/30/18. Peers includes BBT, CFG, CMA, FHN, FITB, HBAN, HWC, KEY, MTB, PNC, SNV, STI, USB and ZION. Source: SNL Financial 6
Slide 7: Simplify and Grow
Simplify and Grow A continuous journey Making banking easier Organization simplification • Digitization • Organizational structure review • Loan process • Spans and layers review • Account opening • Streamline committees and decision • Streamline credit process; more making digital; faster response
Slide 8: Simplify and Grow: progress update
Simplify and Grow: progress update A continuous journey Initial efficiency and revenue review ~ 40 initiatives underway aimed at.... Through the initial review making banking easier opportunities identified represent ~70% expense growing revenue savings and ~30% revenue improving efficiencies & grow
Slide 9: Simplify and Grow: investing for growth
Simplify and Grow: investing for growth A continuous journey • Investing in talent and growth markets ⦁ Hiring new bankers ⦁ Adding talent in capital markets and digital banking ⦁ Adding branches in targeted growth markets • Streamlining processes ⦁ Accelerated commercial response time ~70% ⦁ Digiti
Slide 10: Our enterprise digital strategy
Our enterprise digital strategy Goals Improve Customer Accelerate Growth Reduce Cost Experience Strategic Easy Journeys Personalized Community Digital Pillars Solutions Building Organization Making banking Develop personal Build our community Enable associates to easier for customers solutions throu
Slide 11: Footprint positioning
Footprint positioning Characterized by high growth markets(1) ($ in Billions) ($ in Billions) Top MSAs Deposits '19-'24 Population Growth Top MSAs Deposits '19-'24 Population Growth Nashville, TN $7.6 Pensacola, FL $1.2 Tampa, FL $5.1 Jacksonville, FL $1.0 Miami, FL $4.2 Dallas, TX $1.0 Atlanta, GA
Slide 12: Growing customer relationships
Growing customer relationships Focused on fundamentals • Consumer checking accounts grew 1.2%(1) • Consumer NIB checking increased 6% and savings increased 8%(1) • Active consumer credit cards grew 7% and the penetration rate increased by 105 bps(1) • Wealth Management relationships grew 28%(1) • To
Slide 13: 2018 full-year expectations
2018 full-year expectations • Adjusted ROATCE of approximately 16%(1)(2) • Full-year adjusted average loans are expected to grow in the low single digits(1) • Full-year average deposits are expected to remain relatively stable, excluding brokered and Wealth Institutional Services deposits(3) • Adjus
Slide 14: Forward-looking statements
Forward-looking statements Forward-Looking Statements This release 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 n
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 risks and uncertainties related to our acquisition or divestiture of busi
Slide 16: Regions
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