Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Morgan Stanley Financials Conference 2019
22 slides from Citizens Financial's conference presentation, Jun 11, 2019
Slide 1: Morgan Stanley Financials Conference
Morgan Stanley Financials Conference June 11, 2019 Don McCree Vice Chairman, Head of Commercial Banking Exhibit 99.1
Slide 2: 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 are forward-looking statements. Also, any statement that does not describe historical or current
Slide 3: Strong franchise with leading positions in attractive markets
Strong franchise with leading positions in attractive markets(1) Assets $161.3 Rank #13 Loans $117.6 Rank #11 Deposits $123.9 Rank #11 Footprint GDP above national average Personal consumption 43% higher than the national average Higher percentage of individuals with 4-year degrees or higher Higher
Slide 4: Diversified and balanced business model
Diversified and balanced business model(1) Commercial Coverage Commercial & Industrial Banking Commercial Real Estate Industry corporate finance and verticals Sponsor coverage Capabilities Loans and Deposits Capital Markets Global Markets - FX & IRP M&A Advisory Treasury Solutions Equipment & Asset
Slide 5: Commercial Banking - Key messages
Commercial Banking - Key messages Commercial Banking is well-positioned for continued growth and improving returns Continue to serve core clients as trusted advisor through broadened capabilities, superior idea generation and execution, and service excellence Substantial progress towards enhancing t
Slide 6: Commercial Banking – Solid track record of delivering growth
Commercial Banking – Solid track record of delivering growth $s in billions Driving revenue improvement Results reflect continued investment in talent, enhanced products & advisory capabilities Strong loan growth(1) ~10% CAGR Noninterest income See page 20 for notes and important information on Key
Slide 7: Commercial Banking – Made consistent progress broadening capabilities
Commercial Banking – Made consistent progress broadening capabilities Strengthened fee income capabilities with integrated approach Expanded geographic reach & solution sets Enhanced coverage model & expansion strategy Net new clients since 2015 á ~50% New bankers since 2015 ~50+ Delivering strong c
Slide 8: Building out strong coverage model and integrated solutions
Building out strong coverage model and integrated solutions Regional coverage model with local presence leverages robust product capabilities and deep expertise with a focus on trusted advisor status Committed to achieving trusted advisor status Northeast New York - Metro Mid-Atlantic Midwest Southe
Slide 9: Corporate finance & advisory platform focused on upper middle market
Corporate finance & advisory platform focused primarily on the upper end of middle market Broadening capabilities and strengthening execution to augment trusted advisor status Mergers & Acquisitions Debt Capital Markets 50+ professionals providing advice and execution capabilities for clients Global
Slide 10: Continuing to grow relationships in Global and Capital Markets
Continuing to grow relationships in Global and Capital Markets Lead relationship growth(1) Record 1Q19 capital markets fees up ~210% and record FX & IRP revenue up ~45% since 4Q15 Record lead/joint lead loan syndications transactions in 2018, up 72% from 2015 #6 overall middle market loan syndicatio
Slide 11: Investments continue to drive momentum
Investments continue to drive momentum Re-platforming online channel, accessOptima™, to meet evolving client needs with a simplified interface and more real-time information Improving suite of capabilities with Real-Time Payments, integrated payables and receivables, and Liquidity Portal Focusing on
Slide 12: Building FinTech partnerships and gaining industry recognition
Building FinTech partnerships and gaining industry recognition Recognition Partnerships End-to-end workflow tool to improve speed of customer onboarding and collaboration Trade-finance solution to enable corporate clients to digitize traditionally paper based processes Launched Electronic Bill Prese
Slide 13: Commercial Banking initiatives help drive enterprise performance
Commercial Banking initiatives help drive enterprise performance Customer journeys, e.g., payments experience Lean/process improvement focused on underwriting and portfolio management Continued expansion into growth markets Build-out fee income & broader capabilities: expanded sales and trading, tar
Slide 14: Commercial Banking initiatives: loan portfolio and deposits
Commercial Banking initiatives help drive enterprise performance Loan portfolio Reposition/optimize loan mix across categories Recycle capital with a focus on deepening relationships Prudently grow Exit low-return relationships Continue to reposition Asset Finance Review undrawn exposures for size &
Slide 15: Diversified portfolio with strong credit performance
Diversified portfolio with strong credit performance See page 20 for notes and important information on Key Performance Metrics and Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items. CFG vs. Peers(2) CFG Peers Commerc
Slide 16: Continued prudent credit discipline and portfolio management
Continued prudent credit discipline and portfolio management See page 20 for notes and important information on Key Performance Metrics and Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items. Core commercial portfolio
Slide 17: Solid track record of delivering enhanced returns & efficiency
Commercial Banking – Solid track record of delivering enhanced returns & efficiency(1) $s in millions Commercial Banking net income & efficiency ratio Net income ~17% CAGR Efficiency Ratio â 514 bps Return on average tangible assets á 42 bps See pages 20 & 21 for notes and important information on K
Slide 18: Commercial Banking - Key messages
Commercial Banking - Key messages Strong franchise covering attractive markets Continuing to grow attractive risk-adjusted return portfolios and controlling deposit costs Credit quality and key coverage metrics remain strong Continued good progress across the board in delivering strategic initiative
Slide 19: Appendix / Notes, Key performance metrics, Non-GAAP reconciliations
Appendix / Notes, Key performance metrics, Non-GAAP financial measures and reconciliations
Slide 20: Notes on Key Performance Metrics and Non-GAAP Financial Measures
Notes on Key Performance Metrics and Non-GAAP Financial Measures See important information on Key Performance Metrics and 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
Slide 21: Key performance metrics, Non-GAAP measures and reconciliations – Commercial Banking
Key performance metrics, Non-GAAP financial measures and reconciliations – Commercial Banking $s in millions, except share, per share and ratio data
Slide 22: 3* Citizens
3* Citizens Financial Group, Inc.”
Citizens Financial Group — Morgan Stanley Financials Conference 2019 on 6ix