Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Credit Suisse 2015 Financial Services Forum
32 slides from Citizens Financial's conference presentation, Feb 10, 2015
Slide 1: Credit Suisse 2015 Financial Services Forum
Exhibit 99.1 Credit Suisse 2015 Financial Services Forum February 10, 2015 Bruce Van Saun Chairman and Chief Executive Officer
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements and Non-GAAP financial measures Forward-Looking Statements This document contains forward-looking statements within the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These
Slide 3: Citizens: Building a top-performing regional bank
Citizens: Building a top-performing regional bank HOW Charting a clear course delivering … for our stakeholders 2
Slide 4: Citizens: Building a top-performing regional bank - Who are we?
Citizens: Building a top-performing regional bank Citizens went public on September 24, 2014 Who 70.5% owned by RBS with plan for full divesture by YE 2016 Whoare we? What Where When How 3
Slide 5: Solid franchise with leading positions in attractive markets
Solid franchise with leading positions in attractive markets Retail presence in 11 states Dimension(2) Rank(3) (1) Top 5 deposit market share in 9 of 10 largest MSAs Assets -$132.9 billion #13 Loans -$93.4 billion #13 Deposits -$95.7 billion #14 Rochester, NY: #4 Branches -~1,200 #11 Manchester, NH:
Slide 6: Balanced business mix
Balanced business mix Period-end loans and leases (1) $74B 2009 $90B 2014 Commercial Commercial 36% 44% 56% 64% Consumer Consumer Targeting 50/50 mix over time 1. Reflects loans in our operating segments (Consumer Banking and Commercial Banking). Excludes Other segment, which includes 5 Non-core loa
Slide 7: Strong, clean balance sheet funded with low-cost deposits
Strong, clean balance sheet funded with low-cost deposits Well capitalized with a 4Q14 Tier 1 common equity ratio of 12.4%; pro forma common equity Tier 1 ratio of 12.1% on a fully phased-in Basel III basis Solid asset quality performance with 2014 net charge-offs of 36 bps (1) Strong deposit franch
Slide 8: Robust product offerings with strong customer service
Robust product offerings with strong customer service Consumer Commercial Retail deposit services Corporate banking Mobile/online banking Commercial real estate Deep client Extensive Credit/debit card + relationships product set Franchise finance Wealth management Asset finance Home equity loans/lin
Slide 9: Strong and experienced Board & Leadership team
Strong and experienced Board & Leadership team Leadership Team Member Title Board Member Committees Bruce Van Saun Chairman and Chief Executive OfficerBruce Van Saun Chairman and Chief Executive Officer Vice Chairman and Head of Citizens Lead Director; Chair of Compensation and David Bowerman Busine
Slide 10: What is the vision for Citizens?
Citizens: Building a top-performing regional bank Citizens went public on September 24, 2014 Who 70.5% owned by RBS with plan for full divesture by YE 2016 Whoare we? Whatis the vision for Citizens? What Whatare the strategy and key priorities? Whatare the key financial targets? Where When How 9
Slide 11: Aspire to be a top-performing regional bank, delivering well for all stakeholders
Aspire to be a top-performing regional bank, delivering well for all stakeholders Colleagues Offer fulfilling jobs Regulators Investors Comply with Deliver letter and Customers strong value spirit of rules Serve our proposition and customers well and regulations attractive returns Communities & Soci
Slide 12: Our vision and strategy
Our vision and strategy Our objective is to be a top-performing regional bank that delivers well for our stakeholders Our vision is to deliver the best possible banking experience Our strategy to achieve this is to: Offer our customersa differentiatedcustomerexperiencethrough the quality of our coll
Slide 13: Our strategy results in six priorities
Our strategy results in six priorities Position Consumer Banking to deliver improved capabilities and profitability – Re-energize household growth and deepen relationships through cross-sell – Scale up growth in consumer asset businesses – Move towards smaller branch formats with fewer, but more pro
Slide 14: These priorities have been mapped to specific initiatives
These priorities have been mapped to specific initiatives Improved Balance Sheet Growth/ Continued Commercial Consumer Capital Mix Momentum Bank Normalization Reenergize Household growth Build out Mid-Corporate & Target7 – 8%loangrowth Grow Auto Specialty verticals Complete $750 million Grow Educati
Slide 15: We target a 10%+ run-rate ROTCE by the end of 2016
We target a 10%+ run-rate ROTCE by the end of 2016 End 2016 Key Indicators 2011 2013(1) 2014 4Q14 Targets Return on average tangible (2) 4.2% 4.9% 6.7% 6.1% Future common equity ("ROTCE") 10%+ target (2)(3) Adjusted ROTCE 4.5% 5.1% 6.1% 6.8% 12%+ Return on average total (2) 0.4% 0.6% 0.7% 0.7% 1.0%+
Slide 16: Where will we play?
Citizens: Building a top-performing regional bank Citizens went public on September 24, 2014 Who 70.5% owned by RBS with plan for full divesture by YE 2016 Whoare we? Whatis the vision for Citizens? What Whatare the strategy and key priorities? Whatare the key financial targets? Wherewill we play? W
Slide 17: We have made choices on where we will focus
We have made choices on where we will focus Customers Geography Business Consumer We will concentrate on Return on Average Tangible opportunities in our current Common Equity > 10% Target: 50% of revenue footprint Focus on customer segments Target: ~75%+ of revenue Ability to gain market with a broa
Slide 18: Capital allocation focused on maximizing growth and returns
Capital allocation focused on maximizing growth and returns 4Q14 Balances Emphasize risk-adjusted $92.0 Billion $106.0 Billion returnsin allocating capital 5% Treasury/Non-Core 11% Treasury/Non-Core Focus on acquiring and Other Commercial deepening customer Asset Finance Other Commercial relationshi
Slide 19: When will we deliver the key objectives in our Plan?
Citizens: Building a top-performing regional bank Citizens went public on September 24, 2014 Who 70.5% owned by RBS with plan for full divesture by YE 2016 Whoare we? Whatis the vision for Citizens? What Whatare the strategy and key priorities? Whatare the key financial targets? Wherewill we play? W
Slide 20: Plan spans three years to end of 2016; tracked well in 2014
Plan spans three years to end of 2016; tracked well in 2014 Targets progressed as planned in 2014 2014 Operating Plan Net interest income High-single-digit growth Loan portfolio Mid- single-digit growth Credit quality 35-45 bps of net charge-offs Efficiency ratio <70% Loan-to-deposit ratio < 100% RO
Slide 21: External factors broadly consistent except for rates
External factors broadly consistent except for rates External Factors Current view entering 2015 Interest Rates Macro Housing Market Environment Overall health of consumer Competitive hiring market Competitor Easing competitor credit pricing and discipline Actions Investment in technology, convenien
Slide 22: Initiatives broadly on track
Initiatives broadly on track 2014 Status 2015 INITIATIVE CFG Market Outlook Commentary Execution Condition Arrested household decline with new offerings. Contending with 1 Reenergize household growth competition and reduced foot traffic. Key is training/improved lead generation. Achieved2014hiring g
Slide 23: We are focused on fully meeting regulatory expectations
We are focused on fully meeting regulatory expectations Step-change improvement in CCAR capabilities – Integrated capital planning – Deepened expertise in stress testing and modeling Significant progress in remediating regulatory issue backlog, though more to do Strengthened the risk culture – Focus
Slide 24: Getting to top performing
Getting to top performing We have a clear plan with rolling objectives for each stakeholder Achieve current targets, then raise the bar Investors Strive for consistency in performance, limit tail risk Target relatively high pay-out ratio, steady and growing dividend Continue to improve customer sati
Slide 25: How will we sustain our execution?
Citizens: Building a top-performing regional bank Citizens went public on September 24, 2014 Who 70.5% owned by RBS with plan for full divesture by YE 2016 Whoare we? Whatis the vision for Citizens? What Whatare the strategy and key priorities? Whatare the key financial targets? Wherewill we play? W
Slide 26: Key to execution is the quality of our talent and instilling the right culture
Keyto executionisthequalityofourtalentandinstillingtherightculture People Culture To achievethis we needto continueto hire, Cultureis focused on: develop,andretainthe right talent – Customer Focusedon strengthening the leadershipof the organization – Leadership – Over 18 months have attracted or – A
Slide 27: How will we deal with the myriad of challenges we face?
How will we deal with the myriad of challenges we face? Driving balance sheet growth in areas that provide the most Low-rate attractive returns environment Remaining disciplined on pricing Increasing focus on fee-generating businesses Leading with our value proposition rather than price: – Consumer
Slide 28: Investment Thesis
Investment Thesis 13 th largest U.S. retail bank holding company with attractive Attractive, demographics in core markets client-centric Attractive business mix with growing and profitable commercial franchise with business complementing strong consumer business scale Client-centric model focused on
Slide 29: Citizens Financial Group, Inc.
** Citizens Financial Group, Inc. RA 28
Slide 30: Appendix
Appendix x** Citizens 29 Financial Group, Inc.”
Slide 31: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table (Excluding restructuring charges and special items) $s in millions, except per share data FULL YEAR QUARTERLY 2011 2013 2014 4Q14 Net income (loss), excluding restructuring charges and special items: Net income (loss) (GAAP) $506 ($3,426) $865 $197 Add: Restructuring ch
Slide 32: Citizens Financial Group, Inc.
«Citizens Financial Group, Inc.”
Citizens Financial Group — Credit Suisse 2015 Financial Services Forum on 6ix