Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — BancAnalysts Association of Boston, Inc. 2021
18 slides from Citizens Financial's conference presentation, Nov 4, 2021
Slide 1: BancAnalysts Association of Boston, Inc.
BancAnalysts Association of Boston, Inc. November 4, 2021 Brendan Coughlin Head of Consumer Banking
Slide 2: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures FORWARD-LOOKING STATEMENTS This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends as w
Slide 3: Key messages
Key messages ➢ Dramatically repositioned Consumer Banking since IPO ➢ Key strategic priorities in Consumer Banking are progressing well ➢ Re-positioning distribution channels as digital adoption rises ➢ Consumer deposit and lending franchise with national reach driving distinctive growth ➢ Strong me
Slide 4: Dramatically repositioned Consumer Banking since IPO
Dramatically repositioned Consumer Banking since IPO 2015 Today Above-industry growth and improving customer experience ◼ Not growing Serving ◼ ~6.5% primary household growth since 2018 ◼ Below average Net customers Promotor Scores (NPS) ◼ Improving NPS; JD Power rank up from bottom-quartile to medi
Slide 5: Consumer Banking strategic priorities
Consumer Banking strategic priorities Our vision: To be our customer’s trusted and primary financial partner supporting them along life’s journey Customer target: Outsized focus on mass affluent and affluent customers Key initiatives aimed at driving growth and profitability E2E digitization efforts
Slide 6: Broad-based distribution shift underway with digital engagement accelerating
Broad-based distribution shift underway with digital engagement accelerating Channel usage shifting towards digital Repositioning branches Digital engagement accelerating(1) 1,103 1,037 967 1.7 million at 3Q21 9.3 million YTD 7.5 million YTD Mobile active users Digital check deposits P2P Zelle trans
Slide 7: Investments in customer experience are paying off
Investments in customer experience are paying off Net Promoter Score up 16 points over the last 3 years Transforming physical and digital channels Mobile App ATMs Branches Building a branch in your pocket; digital Enhanced ATM functionality Emphasis on advisory space and first omnichannel approach r
Slide 8: Distribution strategy to win nationally
Distribution strategy to win nationally Opportunity to converge core regional banking platform and national digital bank Building a leading digital-first bank: one brand, integrated platform National National digital bank Building a strong national brand “Light” branch footprint ✓ Digital only • Cal
Slide 9: Consumer deposit and lending franchise well-positioned to drive growth
Consumer deposit and lending franchise well-positioned to drive growth(1) ($ in billions) 7% average deposits CAGR 6% period-end retail loan growth $101.0 $91.5 $84.8 $74.9 $77.5 $63.5 $65.4 $69.7 $72.0 $61.7 $62.3 $61.8 12% 0.73% 12% 0.48% 0.27% 0.30% 0.34% 0.25% 0.06% 10% 3Q20 4Q20 1Q21 2Q21 3Q
Slide 10: Entering NYC Metro and New Jersey markets
Driving medium-term growth 1 Entering NYC Metro and New Jersey markets Leveraging Citizens capabilities Right to win Citizens mature capabilities to be delivered ◼ Citizens sales delivery model, differentiated lending in acquired branches and marketing/analytics provide an opportunity to Acquired br
Slide 11: Driving momentum in Wealth
Driving medium-term growth 2 Driving momentum in Wealth ($ in billions) Strong AUM growth Right to win Track record of strong AUM growth ◼ Demonstrating consistent fee growth, with expected to continue record performance YTD 2021; annualized fees up 18% versus 2019 $22 − Building momentum with ~$1.8
Slide 12: Growing Citizens Pay
Driving medium-term growth 3 Growing Citizens PayTM Potential by 2025 Right to win ($ in billions) ~3MM+ customers originating annually ◼ Market growing ~20%+ CAGR with strong demand from merchants and consumers ~$6 − Portfolio growth of ~40%+ YoY in 3Q21 excluding ~1MM+ customers originated(1) 20%+
Slide 13: Transformative national digital strategy
Driving medium-term growth 4 Transformative national digital strategy Growing customers nationally(1) Right to win (in millions) ◼ Existing national reach with Citizens Access® and our 6.5 6.5 distinctive consumer lending franchise − Unique product breadth with mortgage, home ~13% CAGR equity, educa
Slide 14: Summary
Summary ➢ Successfully executing on our key strategic priorities ➢ Re-positioning distribution with increasing digital capabilities ➢ Consumer deposit and lending franchise to drive differentiated growth ➢ Successful execution across four key areas, distinctive to Citizens, provides medium- term rev
Slide 15: Appendix
Appendix 15
Slide 16: Notes
Notes Notes on Non-GAAP Financial Measures See important information on Non-GAAP Financial Measures at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliations to GAAP financial measures. “Underlying” results
Slide 17: Non-GAAP Financial Measures and Reconciliations - Consumer Banking Segment
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - Consumer Banking Segment $s in millions, except share, per share and ratio data 17
Slide 18: Citizens Financial Group, Inc.
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