Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Barclays Global Financial Services Conference 2020
29 slides from Citizens Financial's conference presentation, Sep 15, 2020
Slide 1: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference Bruce Van Saun Chief Executive Officer September 15, 2020 Exhibit 99.1
Slide 2: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures Forward-Looking Statements. This document contains forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends, as wel
Slide 3: Navigating a challenging environment while investing for the future
Navigating a challenging environment while investing for the future Investing in strategic priorities to generate top-line growth and efficiencies, including assessing opportunities arising from current environment Progressing TOP 6 Program; expected pre-tax run-rate benefits of ~$300 - $325 million
Slide 4: Strong franchise with leading positions in attractive markets
Loans $125.7 B Rank #11 Assets $179.9 B Rank #14 Strong franchise with leading positions in attractive markets Deposits $143.6 B Rank #11 Footprint GDP above national average Personal consumption 43% higher than the national average Higher percentage of households with income of $100K or above Top 5
Slide 5: Seek to deliver attractive and sustainable long-term financial performance
Seek to deliver attractive and sustainable long-term financial performance Success will be driven by what got us here today Continued investments in our future Strong and experienced board and leadership team, best-in-class talent Proven execution ability with a customer-first approach and mindset o
Slide 6: Building a stronger and more diversified business model
Building a stronger and more diversified business model Innovating for attractive growth Consistently expanding wealth platform Have taken mortgage to the next level á ~35 % Created innovative merchant finance partnership platform with exceptional customer experience Top-15 bank-owned mortgage platf
Slide 7: Executive Summary: Positioning Citizens to Investors
Executive Summary---Positioning Citizens to Investors Delivered solid 1H20 results in a difficult environment 1H20 vs. 1H19 CFG Results(2) Peer average Adjusted(3) Strong revenue growth (Total revenue growth) á 631 bps vs Peers Broadly stable NII (Net interest income growth) á124 bps vs Peers Robust
Slide 8: Strong PPNR performance reflects benefit of investments, diversity of revenues
$s in billions See page 23-24 for notes and important information on Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items. See slide 25 for GAAP Financial Summary Strong PPNR performance reflects benefit of investments,
Slide 9: Multi-year investments have delivered greater fee diversification
Multi-year investments have delivered greater fee diversification $s in millions See page 23-24 for notes and important information on Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items. See slide 25 for GAAP Financial
Slide 10: Diversification has resulted in reduced revenue volatility
Diversification has resulted in reduced revenue volatility See page 23-24 for notes and important information on Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items. A leading bank-owned mortgage business Acquired Frank
Slide 11: Challenges over 2020-2022: Achieving growth in a ZIRP environment
Challenges over 2020-2022: Achieving growth in a ZIRP environment 2019/2020 Active Bonds HY Sales & Trading M&A Bowstring M&A Trinity (2020) accessOptima Real time payments Achieving EPS growth and ROTCE improvement in spite of pressure on NIM will require strong execution across all dimensions: Loa
Slide 12: Loan and deposit growth, BSO, NIM management
Loan and deposit growth, BSO, NIM management Growth focus on higher risk-adjusted return categories such as education refinance and innovative merchant finance; demand should strengthen with economic recovery Disciplined risk-appetite with continued focus on superprime/prime consumer segments Commer
Slide 13: Growing lower-cost deposits
$s in millions Growing lower-cost deposits DDA CAGR á8% Demand deposits Lower-cost deposits Total deposit costs Interest-bearing deposit cost See page 23-24 for notes and important information on Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude
Slide 14: Further fee growth
Further fee growth Fee growth to be driven by ongoing investment in capabilities Fee area Current environment Expectations and opportunities Mortgage banking Robust refi and purchase volumes; strong margins given demand and industry capacity constraints Well positioned to capitalize on demand, keep
Slide 15: Expansion of TOP efficiency initiatives
Expansion of TOP efficiency initiatives Transformational Program ~$200-225 million Redesign go-to-market operating model Empower cross-functional teams with clear strategy/mission Shorten cycles for product/tech changes Enable customer-focused, entrepreneurial approach Improve new products/services
Slide 16: Digitization
Digitization Digital adoption rapidly increasing Digital Logins +19% App Downloads +13% Online banking enrollments +12% Non-branch % of transactions(2) +10 pts Further enhance front-end digital capabilities to create frictionless customer experiences Rolling out new digital platform: mobile app duri
Slide 17: Investing in strategic initiatives
Investing in strategic initiatives xxx Consumer Commercial Investing in strategic priorities to generate top-line growth and efficiencies Enhanced coverage model Maturing corporate finance advisory model with deep expertise in multiple industries; strong linkage with M&A advisory Utilizing data anal
Slide 18: Normalizing credit costs
Normalizing credit costs $s in millions Provision for credit losses, net charge-offs Provision for credit losses Total net c/os Net c/o ratio See page 23-24 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of
Slide 19: Normalizing credit costs – Forbearance update
Normalizing credit costs – Forbearance update See page 23-24 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items. $s in billions Working proactively with Commercial Banking customers seeking flex
Slide 20: Ample capital to support customers and maintain dividend
Ample capital to support customers and maintain dividend CET1 ratio strong relative to required minimums and peers Capital management priorities: Protect the dividend Prudent organic loan growth with compelling risk-adjusted returns Selective acquisitions to build capabilities and scale Share repurc
Slide 21: Looking forward
Looking forward Achieving growth in a ZIRP environment Achieving EPS growth and ROTCE improvement will require strong execution across all dimensions Growth mindset: innovating to source new customers and revenue streams Building fee capabilities organically and through targeted acquisitions Relentl
Slide 22: Appendix
Appendix Xx Citizens nancial Group,
Slide 23: Notes on Non-GAAP Financial Measures
Notes Notes on Non-GAAP Financial Measures See important information on Non-GAAP Financial Measures, as applicable, at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliations to GAAP financial measures. “Unde
Slide 24: Notes on Non-GAAP Financial Measures
Notes Notes on Non-GAAP Financial Measures See important information on Non-GAAP Financial Measures, as applicable, at the beginning and end of this presentation for an explanation of our use of these metrics and non-GAAP financial measures and their reconciliations to GAAP financial measures. “Unde
Slide 25: GAAP financial summary
GAAP financial summary Net interest income Noninterest income Total revenu Noninterest expense Pre-provision profit ision for credit losses Income before income tax expense Income tax expense let income available to common stockholders Mortgage Banking Other Income Operating leverage FOR THE SIX MON
Slide 26: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data
Slide 27: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data
Slide 28: Non-GAAP financial measures and reconciliations – Underlying excluding the impact of PPP Loans
Non-GAAP financial measures and reconciliations – Underlying excluding the impact of PPP Loans $s in millions, except share, per share and ratio data
Slide 29: Citizens Financial Group, Inc.
3* Citizens Financial Group, Inc.”
Citizens Financial Group — Barclays Global Financial Services Conference 2020 on 6ix