Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Global Financial Services Conference 2021
32 slides from Citizens Financial's conference presentation, Sep 14, 2021
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference September 14, 2021 Bruce Van Saun Chairman, Chief Executive Officer
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 Success will be driven by what got us here today Strong and experienced board and leadership team, best-in-class talent Proven execution ability since IPO – completely transformed the bank Significantly modernized and strengthened technology capabilities since IPO Well positioned
Slide 4: Highlights of our journey since IPO
Highlights of our journey since IPO Where we were Today » Building top-flight » Building on strong leadership team and talent base management team and » Prudently growing and optimizing balance sheet; good stewards of board capital Enterprise » Initiating balance sheet » Poised for faster growth giv
Slide 5: Highlights of our journey since IPO
Highlights of our journey since IPO Highly-motivated colleagues Organizational Health Index - 15-point improvement since 2014 59 58 64 68 70 72 74 2014 2015 2016 2017 2018 2019 2020 THIRD QUARTILE SECOND QUARTILE TOP QUARTILE Highest ever overall score despite a challenging environment Supporting ou
Slide 6: Significantly modernized and strengthened technology capabilities
Significantly modernized and strengthened technology capabilities Invested ~$1.7 billion to modernize foundational technologies and strengthen capabilities since 2014(1) Lagging investment due Significant technology Transforming technology to parent challenges investments to catchup to benefit custo
Slide 7: Significant progress building a stronger and more diversified business model
Significant progress building a stronger and more diversified business model Well-positioned to maintain momentum – multiple levers to improve performance Consistent improvement in PPNR performance(1,2) Key messages $s in billions $3.0 $2.6 $2.7 Strong PPNR performance reflects an increasingly $2.
Slide 8: Strategic priorities and key initiatives will drive growth, profitability improvement
Strategic priorities and key initiatives will drive growth, profitability improvement Consumer Commercial Enhance capabilities in Treasury Solutions and E2E digital E2E digital transformation to increase sales Building Capital Markets to deepen relationships transformation and drive self-service
Slide 9: Consumer priorities - building a leading digital-first bank
Consumer priorities - building a leading digital-first bank with differentiated capabilities Modernizing and strengthening the platform to enhance product capabilities 2H21 - Integrating education and mortgage onto Citizens Access® Early 2022 – Checking onto Citizens Access® 1H21 - Migrated Citizens
Slide 10: Fully-integrated digital and branch-based go-to-market strategies
Fully-integrated digital and branch-based go-to-market strategies Digital Metrics(1) 178 million 66.1 thousand 23.8 million 3.2 million 1.7 million Digital banking logins Digital booked sales Digital payments & transfers Digital check deposits Mobile active users 28% YoY 61% YoY 16% YoY 8% YoY 29% Y
Slide 11: Citizens Pay - our journey
Citizens PayTM – our journey 6+ million customers served and ~$8 billion originations to date(1) 2015 2016 – 2019 2019 – 2020 2021+ Developed scalable Built depth in Accelerating Apple Partnership platform industry verticals partnership wins Early advantage with Flexible platform to enable Con
Slide 12: Citizens Pay - positioned to continue to win
Citizens PayTM – positioned to continue to win Fintech solution within a bank - speed, agility and innovation driving value for merchants Our differentiated capabilities Fintech agility with strengths of a bank: Easy integration for merchants − More payment options, longer terms, better pricing In
Slide 13: Commercial priorities - broadening capabilities and strengthening execution
Commercial priorities - broadening capabilities and strengthening execution Dramatically repositioned Commercial Banking since IPO 2015 Pre-IPO 2016 - 2018 2019 – 2021+ Building solution sets and Debt syndications Broker/Dealer approved FX options hedging Active bond underwriting fee capabil
Slide 14: Commercial priorities - expanding geographic reach and coverage model
Commercial priorities - broadening capabilities and strengthening execution Aerospace and coverage model defense Communications Gaming Enhancing Transportation Restaurants Human capital and and management logistics food services geographic Expanding Avg. Avg. # of New Reach(1) Loans Deposits Clients
Slide 15: Acquisition of JMP Group - Advancing our commercial banking capabilities
Acquisition of JMP Group - Advancing our commercial banking capabilities JMP Group’s highly complementary capabilities significantly strengthen and diversify Citizens’ strategic advisory and capital markets platform ‒ Provides scale in key verticals: Healthcare, Technology, Financials and Real Est
Slide 16: Commercial Banking and Capital Markets - creating new revenue opportunities
Commercial Banking and Capital Markets – creating new revenue opportunities Expanding industry expertise Enhancing product breadth Aerospace, Defense & Gov. Financing Solutions Communications Mid-corporate lending Current industry verticals Financials Middle-market lending Gaming Healthcare Commerci
Slide 17: Depository acquisitions advance strategy and performance
Depository acquisitions advance strategy and performance Building a leading regional banking platform Connecting the branch footprint… …Combining market leading franchises Fills in geographic footprint, with strong presence in attractive market Boston ― Provides physical presence in major NY Metro
Slide 18: Building a leading New York Metro bank
Building a leading New York Metro bank Sizable upside: Substantial revenue growth potential not in deal model HSBC + Investors(1,2) Introducing Citizens’ brand to New York Metro A scaled, highly competitive regional franchise Beginning pre-close, introduce the Citizens brand with a $s in billions
Slide 19: TOP programs drive improving financial performance
TOP programs drive improving financial performance Transforming how we operate and deliver for customers and colleagues Targeted TOP program benefits Developing new TOP 7 program $’s in millions ~$400-$425 Selected examples Business initiatives Mature agile delivery model ~$200 ~$300 ~$140 - $325
Slide 20: Reiterating medium-term financial targets
Reiterating medium-term financial targets(1) Medium-term financial targets Key economic assumptions ROTCE ~14-16% Real GDP growth of ~6 to 7% for 2021; trending toward ~2.0 to 3.0% annually over the medium term CET1 ~9.75-10.00% Unemployment rate: ~5.0% by YE2021; trending toward ~3.5 to 4.0% ov
Slide 21: Summary
Summary Positioned to deliver earnings growth and attractive returns Success will be driven by what got us here today Proven execution ability since IPO - completely transformed the bank Well positioned for stronger and differentiated growth vs. peers ─ Performance reflects diversified busines
Slide 22: Appendix
Appendix 22
Slide 23: Transformation from IPO
Transformation from IPO(1) Highlights(2) Efficiency Ratio ROTCE 54% 68.5% 68.7% 66.5% 17.7% Assets 6.4% 63.9% 13.1% 12.8% 5.4% 43% 60.0% 58.1% 58.2% 60.6% 7.6% 9.8% 7.5% 6.7% Loans and leases 56.0% 6.1% 4.3% 83% 3Q13 2014 2015 2016 2017 2018 2019 2020 1H21 3Q13 2014 2015 2016 2017 2018 2019 2020 1H2
Slide 24: 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 improved from bottom-quartile t
Slide 25: Dramatically repositioned Commercial Banking since IPO
Dramatically repositioned Commercial Banking since IPO 2015 Today Serving Below average client Building strategies to help clients thrive customers satisfaction Overall Satisfaction Top-2 box score of 95% per Barlow Associates Expanding in growth markets Growing Captured strong market share in
Slide 26: Footnotes and Non-GAAP Financial Measures and Reconciliations
Footnotes and Non-GAAP Financial Measures and Reconciliations 26
Slide 27: 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 28: Non-GAAP financial measures and reconciliations: Full Year 2020-2014
Non-GAAP financial measures and reconciliations: Full Year 2020-2014 $s in millions, except share, per share and ratio data 28
Slide 29: Non-GAAP financial measures and reconciliations: Full Year 2020-2014
Non-GAAP financial measures and reconciliations: Full Year 2020-2014 $s in millions, except share, per share and ratio data 29
Slide 30: Non-GAAP reconciliations: First Half 2021 vs. 3Q13 and 2014
Non-GAAP financial measures and reconciliations: First Half 2021 vs. 3Q13 and First Half 2021 vs. 2014 comparisons $s in millions, except share, per share and ratio data 30
Slide 31: Non-GAAP reconciliations: First Half 2021 vs. 3Q13 and 2014
Non-GAAP financial measures and reconciliations: First Half 2021 vs. 3Q13 and First Half 2021 vs. 2014 comparisons $s in millions, except share, per share and ratio data 31
Slide 32: Citizens Financial Group, Inc.
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