Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Americas Select Franchise Conference 2024
24 slides from Citizens Financial's conference presentation, May 8, 2024
Slide 1: Barclays Americas Select Franchise Conference
Barclays Americas Select Franchise Conference May 8, 2024 Bruce Van Saun Chairman and 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 This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward- looking statement. These stat
Slide 3: 1Q24 Overview
1Q24 Overview Maintaining strong capital and liquidity position – CET1 ratio of 10.6%, among the highest in the peer group – Strong liquidity profile; pro forma LCR at 120% under Category I Bank requirements Highly diversified and retail-oriented deposit base – 68% Consumer Banking deposits; 70% ins
Slide 4: Strong franchise with a leading presence in attractive markets
Strong franchise with a leading presence in attractive markets Well-positioned businesses National reach Consumer • Transformed deposit franchise with strong market presence; opportunity with recent entry into NYC Metro • Differentiated lending platform with a focus on building relationships • Signi
Slide 5: Capital level remains near the top of the peer group
Capital level remains near the top of the peer group ■ Well positioned for changing regulatory environment ■ CET1 ratio under current rules of 10.6%, and 8.9% adjusted for AOCI opt-out removal; among the strongest within the peer group – Expect both ratios to converge to the 10.0-10.5% range over th
Slide 6: Highly diversified and retail-oriented deposit base
Highly diversified and retail-oriented deposit base $176B Period-end deposits Business mix (As of 3/31/24) Product mix Wealth Business 1% Term Banking Citizens 14% 12% NIB Access Commercial 21% 6% 26% Savings 10% Citizens Access Savings Money Market Treasury/ 6% Checking 30% Branch Other With Intere
Slide 7: Deposit beta performance to date reflects significant investments in the franchise
Deposit beta performance to date reflects significant investments in the franchise(1) Sequential IBD costs have outperformed the peer median since 1Q23... 62 51 53 47 45 39 19 22 12 6 (2) 1Q23 2Q23 3Q23 4Q23 1Q24 CFG Peer Median ...Resulting in a cumulative IBD beta that is slightly better than the
Slide 8: Credit performance broadly in-line with peer regional banks
Credit performance broadly in-line with peer regional banks(1) Quarterly average NCO ratio by Quarterly average NCO ratio since IPO As of 4Q23 business since IPO Peer 1 0.46% Peer 2 0.38% Retail Commercial Peer 3 0.37% 0.46% 0.43% Peer 4 0.35% CFG 0.33% Peer Avg. 0.30% 0.18% 0.18% Peer 5 0.27% Peer
Slide 9: Consumer Banking - transformed franchise
Consumer Banking - transformed franchise Demonstrating franchise quality High-quality growth acceleration Strong deposit performance Strong customer growth Low-cost branch- Primary checking household growth based deposits (millions) ■ Strong low-cost deposit +16% 2.03 +~7% CAGR growth 1.76 ■ Signifi
Slide 10: Private Bank - high-quality, accretive growth
Private Bank - high-quality, accretive growth $s in billions Deposit growth Deposit mix as of 3/31/24 Strong accretive portfolio composition $2.4 CWI Term DDA 3% $1.2 3% 30% ■ ~80% of deposits are Commercial $0.2 Savings ■ DDA/CWI is 33% of deposit mix 3Q23 4Q23 1Q24 64% High-quality loans $s in bil
Slide 11: Commercial Banking - uniquely positioned
Commercial Banking - uniquely positioned Focused on middle market, mid- Private capital opportunity corporate, sponsor clients Built a formidable full-service corporate bank Private capital fundraising has led to record deal formation, M&A activity and fees ■ Multi-year investments in talent, capabi
Slide 12: Citizens is an attractive investment opportunity
Citizens is an attractive investment opportunity Citizens has performed well since the IPO given its sound strategy, capable and experienced leadership and a strong customer-focused culture – Track record of strong execution – Commitment to operating and financial discipline; TOP 9 progressing well
Slide 13: Appendix
Appendix
Slide 14: 2023 Awards and recognition
2023 Awards and recognition 14
Slide 15: 1Q24 GAAP summary
1Q24 GAAP summary Q/Q Y/Y $s in millions 1Q24 4Q23 1Q23 $/bps % $/bps % Net interest income $ 1,442 $ 1,488 $ 1,643 $ (46) (3) % $ (201) (12) % Noninterest income 517 500 485 17 3 32 7 Total revenue 1,959 1,988 2,128 (29) (1) (169) (8) Noninterest Expense 1,358 1,612 1,296 (254) (16) 62 5 Pre-provis
Slide 16: 1Q24 Underlying financial performance detail
1Q24 Underlying financial performance detail(1) (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(2) Private Bank Core Non-Core(3) Total CFG Net interest income $1,462 $16.8 $1,479 $(37) $1,442 Noninterest income 513 1.3 514 — 514 Total revenue 1,975 18.0 1,993 (37) 1,956 Nonint
Slide 17: Medium-term NIM
Significant NII contribution from Non-Core and swaps in 2025 and beyond given run off and lower rates Medium-term NIM ■ 1Q24 NIM of 2.91% expected to benefit ~62 bps by 4Q27 from Non-Core and swaps, partially offset by a ~15-25 bps impact of an asset sensitive core balance sheet, resulting in a medi
Slide 18: $72.8B Commercial credit portfolio
$72.8B Commercial credit portfolio Diverse and granular portfolio Commercial portfolio risk ratings(4) $s in billions % of ($ in billions) Balances total CFG C&I $57.5 $74.4 $72.8 Finance and Insurance B- and lower 3% 7% 7% Capital call facilities $ 5.1 4% B+ to B 14% 19% 20% Other Finance and Insur
Slide 19: Commercial Real Estate - $5.7B Office portfolio: well diversified
Commercial Real Estate - $5.7B Office portfolio: well diversified Property type $3.4B General Office class & location Life Sciences $0.9B 16% CBD Class A Suburban Class B 15% 29% Credit Tenant 24% CBD Class B $1.4B 10% Suburban Class A 39% General Office 60% $3.4B Suburban Class C 2% CBD Class C 5%
Slide 20: $70.4B Retail credit portfolio
$70.4B Retail credit portfolio Retail loans(1) High quality, diverse portfolio Other retail ■ Mortgage – FICO ~785 Education - 7% Residential – Weighted-average LTV of ~53% refinance mortgage ■ Home equity – FICO ~760 13% – ~35% secured by 1st lien Education - in school 4% 44% – ~98% CLTV less than
Slide 21: Notes
Notes Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results. Where there is
Slide 22: Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal
Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal $s in millions, except share, per share and ratio data 1Q24 4Q23 CET1 Ratio adjusted for AOCI opt-out removal CET1 capital $ 18,090 $ 18,358 Less: AFS securities - AOCI 1,687 1,511 HTM securities - AOCI(1) 810 8
Slide 23: Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core
Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core* 1Q24 (GAAP) 1Q24 Notables 1Q24 (Non-GAAP) Commercial Consumer Legacy Private (3) Private Legacy Private Other Non-Core Legacy Non-Core Non-Core Total $s in millions Banking Banking(1) Core(2) Bank Bank Core Bank Net i
Slide 24: Citizens Financial Group, Inc.
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Citizens Financial Group — Barclays Americas Select Franchise Conference 2024 on 6ix