Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — BancAnalysts Association of Boston Conference 2015
28 slides from Citizens Financial's conference presentation, Nov 5, 2015
Slide 1: BancAnalysts Association of Boston Conference
BancAnalysts Association of Boston Conference Eric Aboaf Chief Financial Officer November 5, 2015 Exhibit 99.1
Slide 2: Important Information and GAAP/Non-GAAP Information
Important Information and GAAP/Non-GAAP Information 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 statements often include the words
Slide 3: Solid franchise with leading positions in attractive markets
Dimension(2) Rank(3) Assets - $135.4 billion #13 Loans - $97.4 billion #12 Deposits - $101.9 billion #13 Branches - ~1,200 #11 ATM network - ~3,200 #8 Lead/joint lead bookrunner #8(4) Student - $ 3.8 billion Top 4 rank nationally(5) Deposits - $101.9 billion Top 5 rank: 9/10 markets(1) HELOC - $15.1
Slide 4: Robust product offerings and balanced business mix
Corporate Banking Commercial Real Estate Franchise Finance Asset Finance PE/Sponsor Finance Healthcare/Technology/ Oil & Gas/Not-for-Profit verticals Capital Markets Treasury Solutions Commercial Deposit Services Retail Deposit Services Mobile/Online Banking Credit/Debit Card Wealth Management Home
Slide 5: Building a top-performing regional bank
Building a top-performing regional bank Where we’ve come from Lagging revenue productivity Under-levered balance sheet Lack of scale in key businesses Sub-optimal asset mix/risk appetite Product and customer proposition behind peers Underinvestment in brand Where we are now Developed/implemented pla
Slide 6: Summary of progress on strategic initiatives
Summary of progress on strategic initiatives Consumer Commercial Enterprise
Slide 7: Loan growth tracking well vs. peers
Loan growth tracking well vs. peers Commercial Banking average loans and leases 7% Retail loan growth vs. peer average of (1)% 10% Commercial loan growth vs. peer average of 6% (3,4) Source: SNL Financial, Bloomberg, and Company filings. Other includes Credit Card, RV, Marine, Other. Other includes
Slide 8: CFG core revenue vs. peers
CFG core revenue vs. peers Growing revenues faster (Core revenue(1)) $s in millions growth 290 bps better than peers CFG delivering solid core revenue growth as initiatives gain traction CFG Peer average(2) 1.2% growth 4.1% growth Source: SNL Financial, Bloomberg, and Company filings. Non-GAAP item.
Slide 9: CFG core net interest margin vs. peers
CFG core net interest margin vs. peers 13 bps better than peers Continued efforts to optimize asset growth and minimize cost of deposits …current expectation is that this may be the bottom 20 bps better than peers CFG Peers(1) Source: SNL Financial, Bloomberg, and Company filings. Peer banks include
Slide 10: Identifying and capitalizing on loan pricing opportunities
Identifying and capitalizing on loan pricing opportunities Identifying significant variance in risk-adjusted yields Applying full relationship view to better understand drivers of returns Create a rules-driven approach to identify opportunities in a structured way Applying to both our wholesale and
Slide 11: Optimizing loan mix to help drive improving yield and returns
Optimizing loan mix to help drive improving yield and returns Note: Coupons differ from financial supplement reported yields which include the impact of amortization of deferred fees and costs. Reported growth rate /growth rate excluding the impact of the 3Q15 sale of a credit card portfolio with 3Q
Slide 12: Increasing our discipline on how we gather deposits
Increasing our discipline on how we gather deposits Post the Chicago Divestiture, deposit growth has largely been driven by higher-cost retail products Leveraged peer benchmarking data to analyze deposit mix, pricing, and business capacity in order to optimize deposit pricing and segmentation strate
Slide 13: We remain positioned for rising rates
We remain positioned for rising rates… …but also see plenty of opportunity to further enhance performance by executing well on our initiatives Interest-rate sensitivity trend Peer banks include BBT, CMA, FITB, KEY, MTB, RF and USB. Peer estimates based on public disclosures and utilizes 200 basis po
Slide 14: CFG core noninterest income vs. peers
CFG core noninterest income vs. peers 3.5% growth 4.7% growth Securities gains, estimated Chicago Divestiture fees, and estimated posting order change fees Trust and investment service fees Mortgage banking fees Capital markets fees Foreign exchange and trade finance fees Core other income Card fees
Slide 15: CFG adjusted noninterest expense vs. peers
CFG adjusted noninterest expense vs. peers Source: SNL Financial, Bloomberg, and Company filings. Non-GAAP item. Adjusted results exclude the effect of net restructuring charges and special items associated with Chicago Divestiture, efficiency and effectiveness programs and separation from RBS. See
Slide 16: CFG core efficiency improving vs. peers
Expense/earning assets (Adjusted expense/Earning assets ratio(1)) 275 bps improvement vs. peers Core efficiency improvement reflects benefit of revenue and expense initiatives Real estate square footage down 5.8% from 9/30/2014 Non revenue producing FTEs down 3.0% from 9/30/2014 Investing heavily in
Slide 17: CFG asset quality performance vs. peers
CFG asset quality performance vs. peers Considerable progress in cleaning up non-core issues and moving back towards peer averages Source: Company filings. Peer banks include BBT, CMA, FITB, KEY, MTB, PNC, RF, STI and USB. Favorable charge-off trends (Net charge-offs/average loans and leases) 4 bps
Slide 18: Stronger capital than peers
Stronger capital than peers Executed $1.2 billion in capital exchange transactions since 6/30/14, mix of capital now broadly aligned with peers Common equity tier 1 ratio Total capital ratio 160 bps above peers CFG Peers Common equity tier 1 ratio All other capital 16.1% 15.4% 3.2% 3.6% 12.9% 11.8%
Slide 19: CFG core profitability vs. peers
$s in millions Profitability growth 3Q14-3Q15 (Core net income(1)) Improving return on equity (Core return on average tangible common equity(1)) CFG core profitability vs. peers Peers 125 bps CFG 37 bps Consistent record of improving profitability and returns, narrowing gap vs. peers Source: SNL Fin
Slide 20: We are executing on strategic enterprise initiatives
We are executing on strategic enterprise initiatives Balance Sheet Management We need to continue to manage our asset growth plans in a disciplined way in light of the persistent low-rate environment Optimizing Earning Assets: Improving our discipline Driving improved asset mix by rigorously analyzi
Slide 21: Key messages
Key messages We are executing well against our agenda; delivering near-term financial progress towards ambitious medium-term goals We have the foundation for a great franchise, though much to do to tap full potential Our turnaround plan addresses gaps/weaknesses on both a tactical and strategic leve
Slide 22: Citizens Financial Group, Inc.
3* Citizens Financial Group, Inc.”
Slide 23: Appendix
Appendix Xx Citizens
Slide 24: Summary GAAP Financial Information
Summary GAAP Financial Information Includes held for sale. Non-GAAP item. See important information on use of Non-GAAP items in the Appendix. Return on average tangible common equity. Return on average total tangible assets. Full-time equivalent employees.
Slide 25: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table (Excluding restructuring charges and special items) $s in millions, except per share data
Slide 26: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table (Excluding restructuring charges and special items) $s in millions, except per share data
Slide 27: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table (Excluding restructuring charges and special items) $s in millions, except per share data
Slide 28: Citizens Financial Group, Inc.
3* Citizens Financial Group, Inc.”
Citizens Financial Group — BancAnalysts Association of Boston Conference 2015 on 6ix