Regions Financial Corporation · NYSE:RF
Regions Financial — Goldman Sachs Financial Services Conference 2013
24 slides from Regions Financial's conference presentation, Dec 10, 2013
Slide 1: Goldman Sachs Financial Services Conference
1 Goldman Sachs Financial Services Conference December 10, 2013 Grayson Hall Chief Executive Officer Exhibit 99.1
Slide 2: Regions Financial – company profile
2 Regions Financial – company profile Consumer Services Business Services Wealth Management Business Groups 17 Businesses (1) (1) Refer to appendix for detail
Slide 3: We are a relationship bank
3 We are a relationship bank Service quality › the foundation of relationship banking Shared value › for our customers, communities, associates and shareholders › a deliberate, prescriptive approach to building a strong relationship banking culture Gaining momentum Growing Customer Base Deepening Re
Slide 4: Allowing customers to bank the way they choose
4 Allowing customers to bank the way they choose CONTACT CENTER 10% Sales Growth YOY AUTOMATED PHONE +80MM Customers Served Annually SOCIAL MEDIA 134% Customer Care Growth YOY Customer MARKETING Direct • • MOBILE 55% Growth in Mobile Alerts YOY RETAIL NETWORK 76% of Transactions 81% of Sales ONLINE
Slide 5: Innovation
5 Innovation Retail / ATM › Two Way Video › Tablet › Universal Banker › Teller Kiosk Contact Center › Intelligent Routing › Automated Phone System Personalization Online / Mobile › Digital Wallet (Visa) › Small Business Mobile Deposits › Small Business Online › Online Banking Platform Upgrade Produc
Slide 6: New revenue initiatives
6 Expected Full Year 2013 Revenue $ › Moved from Free Checking to Fee Eligible Checking in 2009/2010 $38 M › Launched Personal Lines Insurance in April 2010 $6 M › Re-entered Indirect Auto in September 2010 $74 M › Launched Now Banking in January 2012 $15 M › Re-launched Credit Card business in June
Slide 7: Growing loans
7 Growing loans Loan growth through 3Q totaled $1.9 billion or 3% Total Loan Balances (1) (1) Ending balances Peers include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial ($ in millions) 45,705 44,793 45,061 46,044 46,736 29,554 29,202 28,875 28,946 29,156 $75,25
Slide 8: Growing low-cost deposits and improving deposit costs
8 Growing low-cost deposits and improving deposit costs Proven execution in lowering deposit costs Deposit Balances (1) and Deposit Costs ($ in millions) (1) Average balances Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 13 bps 0 bps 5 b
Slide 9: Continued increases in net interest margin
9 3.08% 3.24% 3.47% 3.29% 3Q12 4Q12 1Q13 2Q13 3Q13 Regions Peer Average Continued increases in net interest margin Margin benefits from both short-term and long-term rate increases Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial Net Intere
Slide 10: Focused on improved efficiency
10 Focused on improved efficiency 64.3% 67.3% 64.0% 66.3% 3Q12 4Q12 1Q13 2Q13 3Q13 Regions Peer Median Efficiency Ratio (1) (1) Non-GAAP – See appendix for reconciliation Peer banks include: BBT, CMA, FHN, FITB, HBAN, HCBK, KEY, MTB, PBCT, PNC, STI, USB, WFC, ZION Source: SNL Financial › One of the
Slide 11: Continued asset quality improvement
11 $262 $180 $180 $144 $114 1.38% 0.96% 0.99% 0.77% 0.60% 0.92% 0.68% 0.65% 0.45% 0.47% 3Q12 4Q12 1Q13 2Q13 3Q13 Net Charge-Offs Regions Peer Median Continued asset quality improvement Credit leverage remains 2.74% 2.03% 1.96% 1.67% 3Q12 4Q12 1Q13 2Q13 3Q13 Regions Peer Median Note: Peer banks inclu
Slide 12: Strong capital and solid liquidity
12 Strong capital and solid liquidity Well positioned for future capital deployment (1) Non-GAAP – See appendix for reconciliation Note: Peer banks include BBT, CMA, FHN, FITB, HBAN, KEY, MTB, PNC, STI, USB, WFC, ZION Source: SNL Financial 10.5% 10.8% 11.2% 11.1% 11.0% 9.9% 10.0% 10.1% 10.2% 10.4% 3
Slide 13: Capital management
13 Capital management Invest Internally › Grow loans consistent with our risk tolerance › Purchase complementary loan portfolios Return Capital to Shareholders › Increase dividends closer to peer average payout levels › Share repurchases
Slide 14: Expectations for 2014
14 Expectations for 2014 › Prolonged low interest rate environment › Evolving regulatory environment › Leverage to grow customer relationships across business groups by 2% to 4% › Loan growth of 2% to 4% › Deposit growth of 1% to 2% › Generate positive operating leverage
Slide 15: Strategic priorities for 2014
15 Strategic priorities for 2014
Slide 16: Appendix
Appendix Ms REGIONS «
Slide 17: Forward-looking statements
17 Forward-looking statements This presentation may include forward-looking statements which reflect Regions’ current views with respect to future events and financial performance. The Private Securities Litigation Reform Act of 1995 (“the Act”) provides a “safe harbor” for forward-looking statement
Slide 18: Consumer Services
18 Consumer Services Retail Consumer Banking Branch Small Business NOW Banking Credit Card Mortgage Indirect Auto › Grow 5 of 6 businesses while maintaining current low risk business model › Retail Consumer – Grow checking accounts › Branch Small Business – Grow loans and deposits › Now Banking – Gr
Slide 19: Business Services
19 Business Services Commercial Banking Specialized Industries Regions Business Capital Real Estate Banking Treasury Management Capital Markets Business & Community Banking › Continue to be a growth engine for the bank, increasing number of clients, loans, deposits, and fee based revenue › Continued
Slide 20: Wealth Management
20 Wealth Management Investment Services Private Wealth Management Institutional Services Insurance › The Wealth Management Group will grow revenue 4% to 6% in 2014 (90% of the growth will be non-interest revenue) › Grow client relationships across each business 2% to 10% › Continue to coach, recrui
Slide 21: Non-GAAP reconciliation: non-interest income / expense, fee income and efficiency ratios
21 Non-GAAP reconciliation: non-interest income / expense, fee income ratios, efficiency ratios and non-interest expense to average assets ratios The table below presents computations of the efficiency ratio (non-GAAP), which is a measure of productivity, generally calculated as non-interest expense
Slide 22: Non-GAAP reconciliation: Tier 1 common
22 Non-GAAP reconciliation: Tier 1 common The following table provides calculations of Tier 1 capital (regulatory) and "Tier 1 common equity" (non-GAAP). Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank's capital adequacy based on Tier 1 capital, the calcul
Slide 23: Non-GAAP reconciliation: Basel III
23 Non-GAAP reconciliation: Basel III (1) Under Basel III, in addition to goodwill and other identified intangibles regulatory capital must be reduced by purchased credit card relationship intangible assets. The majority of these assets are allowed in Basel I capital. (2) Regions continues to develo
Slide 24: Ma REGIONS
Ma REGIONS
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