Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Day (February 2019)
33 slides from Regions Financial's investor day presentation, Feb 27, 2019
Slide 1: Investor Day 2019: More value, driven by insights
Exhibit 99.4 Investor Day 2019 More value, driven by insights Scott Peters| Head of Consumer Bank
Slide 2: Scott Peters, Head of Consumer Banking Group
Scott Peters Head of Consumer Banking Group Scott Peters serves as the head of Regions Consumer Banking Group, which is comprised of the Retail Bank, Mortgage, and Indirect Lending and Partnerships. These business lines include Branch Bankers and Retail Leadership; Mortgage Sales; Indirect Auto Lend
Slide 3: Key takeaways Consumer Bank
Key takeaways Consumer Bank Leveraging SUPERLATIVE SERVICE QUALITY, loyalty, 1 brand, and primacy Investing in OMNI‐CHANNEL to drive customer 2 satisfaction, efficiency, and effectiveness Utilizing STRONG ANALYTICS for smart targeting, 3 execution and resource allocation Use operating advantage to G
Slide 4: Consumer Bank overview
Consumer Bank overview • 86% of Consumer pre‐tax income Pre‐tax pre‐provision income contribution • Revenue $2.9B • 4.3M Retail Households • 370K Small Business Households Retail Bank • 1,454 Branches • ~9,600 Associates • 12% of Consumer pre‐tax income • Revenue $354M • Loans $14.0B Mortgage Origin
Slide 5: Consumer banking loans and deposits overview
Consumer banking loans and deposits overview Total company deposit balances Total company loan balances Consumer 61% Consumer 39% Corporate 28% Corporate 58% $94B $81B Wealth 9% Wealth 3% Other 2% Consumer deposit balances by type Consumer loan balances by type Interest‐Free 33% Residential 1st Mort
Slide 6: Focused on risk-adjusted returns and concentration limits
Focused on risk‐adjusted returns and concentration limits Prudent lending based on risk and relationship profitability Indirect Lending Consumer Real Estate • Optimizing capital by exiting less profitable • Price competitively to grow share while maintaining businesses proper returns • Exited third‐
Slide 7: Consumer Bank Strengths
Consumer Bank Strengths INVESTOR DAY 2019 | Consumer Bank | 7
Slide 8: Unique opportunity for stability and growth: core markets
Unique opportunity for stability and growth High share, core markets provide stability • Strong share in core, stable, midsize markets • Population more than 130M(1) • More than 1/3rd of U.S. • Over 50M(1) households • Strong market share: AL, GA, MS, TN, AR, LA, & FL • Ranked 3rd or better in depos
Slide 9: Unique opportunity for stability and growth: large, attractive markets
Unique opportunity for stability and growth Large, attractive markets for growth Market Other Growing Market Investments Opportunities • Growing presence in large, Dallas dense, and fast growing Atlanta Houston Miami markets Orlando Jacksonville • Population growth >40% Tampa Nashville higher than t
Slide 10: A unique team based approach focused on customer needs
SM ‐ a unique team based approach focused on customer needs 2018 Profitability Impact • 3.5% YoY in SM relationships, our most valuable customers who generate 140% more revenue • 70% of sales are to existing customers Referrals • Branch Contact Mortgage Branches generated 150K referrals resulting in
Slide 11: Strong brand favorability and loyalty
Strong brand favorability and loyalty • High brand favorability & top decile loyalty scores(1) • >60% of consumer deposits are held by customers who have banked with Regions for over 10 years • 75% of customers are likely to refer friends and family • 6 consecutive years of strong checking growth wi
Slide 12: External validation confirms our approach is working
External validation confirms our approach is working Among the top 2 Traditional #1 among all #1 among all traditional Banks and Top 10% of all US measured banks in banks for customer companies (+300) for the 2017 ACSI Retail experience & loyalty Experience and Trust (2018) Banking Study (2018) Over
Slide 13: Industry leading customer primacy
Industry leading customer primacy • Top ranked debit card performance(1) • Primary relationships comprise >90% of checking accounts and half of all consumer deposits(2) • Stable and lower cost deposits • Retain >90% of operational accounts of rate sensitive customers Overview | Strengths | Growth St
Slide 14: Solid low cost deposit base
Solid low cost deposit base Prudently managed deposit cost Consumer Deposit Cost • Consumer deposits represent 61% 15bps 16bps of Regions’ total deposits 13bps 14bps • Favorable mix of low cost deposits • 33% non‐interest bearing 2015 2016 2017 2018 • Among the lowest deposit cost vs. Consumer Depos
Slide 15: Relationship focused card & payment offerings
Relationship focused card & payment offerings with leading customer engagement • #1 debit card portfolio amongst all Visa Issuers Credit Card Spend Credit Card Balances • Credit spend and balances growing faster than the industry over last 3 years CAGR CAGR • Early participant in Apple®, Samsung® &
Slide 16: Consumer Bank Growth Strategies
Consumer Bank Growth Strategies INVESTOR DAY 2019 | Consumer Bank | 16
Slide 17: Leveraging data and analytics
Leveraging data and analytics Understanding our customers is core to our strategy • Omni‐channel approach provides proactive guidance and meets customer needs while improving efficiency • Utilize geospatial analytics to drive market strategies, De Novos, and consolidations • Proactive guidance drive
Slide 18: Creating a value-added omni-channel experience
Creating a value‐added omni‐channel experience Delivering across all channels • 60%+ of checking customers use multiple channels • Automated channels account for 90% of all customer interactions • 11% YoY digital channel growth while certified bankers deliver higher value interactions • Branches pro
Slide 19: Always on: Next-Best-Actions drive customer offers
Always on: Next‐Best‐Actions (NBA) drive timely and relevant customer offers in all channels Data Inputs Always On Outputs Delivery Methods ROSIE: Transactions Branch & ATM Demo‐ Internet Regions graphics Behavior Optimal Online & Mobile Financial Solutions Goals Next Best Action Product Products In
Slide 20: Operationalizing data & analytics
Operationalizing data & analytics What does it really mean? Better and more timely leads, offers and intercepts Increased sales, retention and revenue Continuous improvement Prioritizing best opportunity for proactive resources Overview | Strengths | Growth Strategies INVESTOR DAY 2019 | Consumer Ba
Slide 21: Thin network strategy
Thin network strategy Provides exposure in the right places • Digital behaviors and analytics allow us to be relevant with a thin network • From beginning of 2014 to 2021, expect decreased branch count by ~16% and increased branch trade area population by >10% • Continued consolidation of proximal a
Slide 22: Optimizing the branch network
Optimizing the branch network Consolidations funding growth initiatives Cumulative branch consolidations and de novos Over the last five years Consolidations • Consolidated 284 branches since De Novos 2014 while opening 33 branches with most being in 2018 Forward strategies 2014 2015 2016 2017 2018
Slide 23: Transforming the retail network
Transforming the retail network Opportunity for significant improvement in growth & profitability Revenue Per Branch Consumer Efficiency Ratio ($ in millions) • Strengthened trade areas – 500 bps 400 growth rates, density, income, 13% $2.6 bps 30% $2.3 65% home value, businesses $1.8 60% 56% • Grew
Slide 24: Analytics drive customized approach in opportunity markets
Analytics drive customized approach in opportunity markets Reposition ST. LOUIS Optimize ATLANTA Trade area population Will have 900K more growth improved 190% people in trade area Build‐out HOUSTON Optimize ORLANDO Will have 2.4M more & TAMPA population in trade Reduce 30+ branches area while growi
Slide 25: Making banking easier for customers and associates
Making banking easier for customers and associates More value, higher satisfaction, at lower cost More Value Over the last year • “Build Better Bankers” initiative increases knowledge of Operational Operational branch staff by improved training Tasks (Hours) Paper Usage • Utilizing analytics to prov
Slide 26: Continue to invest in digital
Continue to invest in digital Focus on high value Product innovation & delivery Instant issue Proactive Digital Digital debit & Guidance Migration Payments credit card Automating Rewards Processes multiplier Digital credit & deposit availability Protecting our customers Real time Agile Digital Card
Slide 27: Leverage operating advantage to grow mortgage share
Leverage operating advantage to grow mortgage share and relationships Service Prime Delivery Mortgage Highly Quality Portfolio Efficiency Servicing Profitable Industry leading 80% purchase No correspondent 58% lower cost to Sustained service quality 766 Avg. FICO lending service than profitability t
Slide 28: Leverage business advantage to grow mortgage share and relationships
Leverage business advantage to grow mortgage share and relationships • Investing in Mortgage Loan Officers and growing direct‐to‐consumer • Leverage servicing efficiency and quality to grow mortgage servicing rights and origination / servicing contribution split • Drive growth through sophisticated
Slide 29: Key takeaways Consumer Bank
Key takeaways Consumer Bank Leveraging SUPERLATIVE SERVICE QUALITY, loyalty, brand, and 1 primacy Investing in OMNI‐CHANNEL to drive customer satisfaction, 2 efficiency, and effectiveness Utilizing STRONG ANALYTICS for smart targeting, execution and 3 resource allocation Use operating advantage to G
Slide 30: Appendix
Appendix INVESTOR DAY 2019 | Consumer Bank | 30
Slide 31: Consumer banking revenue overview
Consumer banking revenue overview Total Company Revenue Total Company Non‐Interest Income Consumer 58% Consumer 57% Commercial 33% Commercial 27% $5.8B $2.0B Wealth 9% Wealth 16% Consumer Total Revenue Consumer Non‐Interest Income Service Charges 49% Net Interest Income 66% Mortgage 12% $3.4B $1.1B
Slide 32: Forward looking statements disclosure
Forward looking statements disclosure This presentation may include forward‐looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect Regions’ current views with respect to future events and financial performance. Forward‐looking statements are not based on
Slide 33: Forward looking statements disclosure (continued)
Forward looking statements disclosure (continued) • Our ability to identify and address cyber‐security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse