Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Credit Suisse Annual Financial Services Forum 2021
26 slides from Citizens Financial's conference presentation, Feb 25, 2021
Slide 1: Credit Suisse Annual Financial Services Forum 2021
Credit Suisse Annual Financial Services Forum 2021 Brendan Coughlin Head of Consumer Banking February 25, 2021 Exhibit 99.1
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 Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends, as wel
Slide 3: Overview
Overview The Consumer Bank has been dramatically repositioned since our IPO, with a strong foundation for success looking forward Consumer credit has held up very well, including our education and point-of-sale offerings We have a focused and transformative agenda to differentiate and compete in an
Slide 4: Built the foundation to position us as a leading consumer bank
Built the foundation to position us as a leading consumer bank CFG operations/client service location CFG branch location CFG Corporate Headquarters - Providence, RI Regional(1) National(1) ~2.8MM customers ~97% single-product Differentiated national banking capabilities Citizens Access® Mortgage Ba
Slide 5: Dramatically repositioned Consumer Banking since IPO
Dramatically repositioned Consumer Banking since IPO Serving customers Growing national presence Leveraging differentiated lending capabilities Improving deposit franchise Building advisory capabilities Improving financial performance 2015 Today Not growing Below average Net Promotor Scores (NPS) Re
Slide 6: Disciplined risk-appetite with continued focus on super-prime/prime segments
Disciplined risk-appetite with continued focus on super-prime/prime segments Loan growth in higher risk-adjusted return categories Leader in education refinance Innovative Citizens Pay POS partnerships Have de-emphasized lower-return categories Adopting originate-to-distribute orientation $ in billi
Slide 7: High quality consumer portfolio has performed well through COVID
~94% of borrowers exited forbearance are current as of 12/31/20 vs. 98.5% for total retail High quality consumer portfolio has performed well through COVID Forbearance rate Forbearance rate 30+ days delinquency rate 30+ days delinquency rate Credit is holding up well… $12.3 billion Education loan po
Slide 8: Consumer Banking continuing to invest, positioning us for the future
Consumer Banking continuing to invest, positioning us for the future Continued investments in our future Continuous improvement mindset Investing in new technologies and digitization to improve customer experience and drive household growth Enhancing data analytics to deepen relationships and grow i
Slide 9: Our plan: become a leading digital-first bank with differentiated capabilities
Our plan: become a leading digital-first bank with differentiated capabilities We will achieve our long-term vision through bold initiatives that build on our strengths Continued positive momentum driving toward top-quartile financial performance ~$50-100mm opportunity* Customer base skews more affl
Slide 10: Digital transformation – COVID accelerated trend towards digital channels
Digital transformation – COVID accelerated trend towards digital channels YoY -13 pts +8 pts +5 pts Digital adoption and engagement continues to accelerate within regional footprint Digital Active Households +7% Digital Logins +15% Digital as % of sales +11 pts Active Mobile Households +15% Upgraded
Slide 11: Digital transformation – redesigning the customer experience
Digital transformation – redesigning the customer experience Answered call center volume(1) Digitizing the customer experience Marketing transformation for scale impact Repositioning branch network Digital checking accounts(2) Digitally active households(1) Mobile active users(1) Mobile deposit mix(
Slide 12: Digital transformation – transforming physical presence to an advice-based model
Digital transformation – transforming physical presence to an advice-based model 2015 2020 2025 COVID-19/lockdowns accelerated the trend of declining transaction-driven foot traffic Expect ~5% annual reduction in branches through 2025 vs. ~3% per annum pace since 2015 Partially reinvesting savings i
Slide 13: National expansion – opportunity to capitalize on our leading national capabilities
National expansion – opportunity to capitalize on our leading national capabilities ~6.6MM customers nationwide, including ~2.8MM outside regional footprint ~5MM retail lending customers across 50 states ~60K Citizens Access® customers across 50 states States >2% of total States >2% of total Nationa
Slide 14: National expansion – an integrated value proposition to accelerate growth
National expansion – an integrated value proposition to accelerate growth Launching an integrated national digital bank, building on our leading Citizens Access® platform Targeting young professionals nationwide with high potential for multi-product relationships 1H21 Migrating Citizens Access® to a
Slide 15: Citizens Pay – the opportunity
Citizens Pay – the opportunity $s in billions 62% Predictable Prefer fixed monthly payments with clear payment terms Prefer not to open more credit cards just to make a large ticket purchase 66% Affordable Convenient, financially responsible way to pay; a subscription-like value proposition (1) CAGR
Slide 16: Citizens Pay – our journey
2021+ Accelerating partnership wins Citizens Pay – our journey 2015 Apple Partnership 2019-2020 Built depth in industry verticals 2016-2019 Developed scalable platform Citizens Pay branding Expansion into new verticals Expect additional partnership wins 5+ million customers served and ~$8 billion or
Slide 17: Deepening relationships – continuing strong progress in banking
Deepening relationships – continuing strong progress in banking Primary household growth Cost of deposits gap to peers é 4% vs. 2018 ê 50%+ vs. 2018 Period-end low-cost deposit growth é 30% vs. 2018 Improved Consumer deposit mix with opportunity to further reduce deposit costs 36 bps 29 bps 24 bps 1
Slide 18: Deepening relationships – a significant opportunity with Wealth
Deepening relationships – a significant opportunity with Wealth CFG households in footprint at 4Q20 Making steady progress capturing assets under management, with more running room 19% CAGR Key initiatives Relatively low household penetration and share of wallet creates need for deepening via advice
Slide 19: Wrap-up
Wrap-up The Consumer Bank has been dramatically repositioned since our IPO, with a strong foundation for success looking forward Above-industry growth and improving customer experience Strong national banking capabilities Growing low-cost deposits At scale in Mortgage; building Wealth Improving fina
Slide 20: Appendix
Appendix seg ad
Slide 21: Citizens Pay – positioned to continue to win
Citizens Pay – positioned to continue to win Strategic partner approach with tailored solutions Flexible, 100% digital end-to-end platform provides frictionless customer experience Omni-channel capabilities (online, mobile, in-store) Fintech agility with strengths of a bank: More payment options, lo
Slide 22: Citizens Pay – our offerings
Citizens Pay – our offerings Strongest offer for the customer Lowest monthly payments Merchant subsidizes interest payments 0% Financing Hybrid No Interest Promos Flat APR For All Credits Standard Risk Based APRs Serves customers that can pay off quickly, and those that can’t No deferred interest on
Slide 23: Citizens Pay – how it works and how we make money
Citizens Pay – how it works and how we make money Illustrative examples 1 Customer shops Customer shops on-line or instore and selects item Customer is offered an equal payment plan option with Citizens Pay 2 3 4 5 Customer chooses Citizens Pay Customer completes purchase Citizens Pay settles with m
Slide 24: Notes
Notes Notes on Non-GAAP Financial Measures See important information on Non-GAAP Financial Measures, as applicable, 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. “Unde
Slide 25: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data
Slide 26: 3* Citizens
3* Citizens Financial Group, Inc.”
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