Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — Goldman Sachs Financial Services Conference 2023
17 slides from Citizens Financial's conference presentation, Dec 5, 2023
Slide 1: Goldman Sachs Financial Services Conference 2023
Goldman Sachs Financial Services Conference 2023 December 5, 2023 Bruce Van Saun Chairman, Chief Executive Officer
Slide 2: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These state
Slide 3: Overview
Overview Refining and strengthening the balance sheet in a strategic fashion – Strong CET1 ratio of 10.4% at 3Q23, one of the highest capital levels in the peer group – Liquidity metrics compliant with current Category 1 LCR requirements at 3Q23 – Highly diversified and retail-oriented deposit franc
Slide 4: 3Q23 Underlying financial performance detail
3Q23 Underlying financial performance detail(1) (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(2) Private Bank Core Non-Core(3) Total CFG Net interest income $1,563 $0.3 $1,563 $(41) $1,522 Noninterest income 492 — 492 — 492 Total revenue 2,055 0.3 2,055 (41) 2,014 Noninteres
Slide 5: Citizens' strong capital position relative to peers
Citizens’ strong capital position relative to peers(1)(2) ■ Strong capital level positions us well for changing regulatory environment ■ CET1 ratio of 10.4% at 3Q23; repurchased $250 million shares during third quarter – 8.3% CET1 ratio adjusted for AOCI opt-out removal is 2nd highest within peer gr
Slide 6: Deposit beta performance to date reflects significant investments in the franchise
Deposit beta performance to date reflects significant investments in the franchise(1) Retail-oriented, highly insured/ Performance in core deposits* since 3Q23 secured deposit base 3/31/22 better than most peers(3) Consumer Deposits as Insured/Secured as % of Total Deposits % of Total Deposits(2) (2
Slide 7: Credit performance broadly in-line with peer regional banks
Credit performance broadly in-line with peer regional banks(1) Quarterly average NCO ratio by Quarterly average NCO ratio since IPO business since IPO Peer 1 0.45% Peer 2 0.37% Retail Commercial Peer 3 0.36% 0.46% 0.43% Peer 4 0.35% CFG 0.33% Peer Avg. 0.29% 0.18% 0.18% Peer 5 0.27% Peer 6 0.25% Pee
Slide 8: Growing Citizens Private Bank
Growing Citizens Private Bank Building for world-class client experience Medium-term aspirations ■ Strong start, with momentum building after official launch of the Private Bank in mid- ~$11B deposits October ■ Announced six planned office locations ■ Mostly commercial products with emphasis on attr
Slide 9: Building a leading NY/NJ Bank
Building a leading NY/NJ Bank Progress towards parity with legacy Driving brand awareness Strong deposit growth New York City Marathon 9% ■ The 2023 TCS NYC Marathon was Citizens first HSBC and ISBC consumer deposits per race since partnering with 1% branch growth YTD has significantly New York Road
Slide 10: Capturing the Private Capital opportunity
Capturing the Private Capital opportunity A substantial and growing market Citizens serving Private Capital ecosystem Over the last six years, Private Capital for 10 years fundraising has led to record deal formation, ■ Significant investments in talent and capabilities; five M&A activity and fees a
Slide 11: Enterprise-wide initiatives
Enterprise-wide initiatives Balance sheet optimization TOP program/ expense management ■ Non-core portfolio of $12.3 billion at 9/30/23 ■ TOP 8 tracking well to ~$115 million pre-tax run-rate – ~4.2% WA loan yield (~95% fixed rate); ~5.4% WA benefit by YE2023 funding cost ■ TOP 9 in process of launc
Slide 12: Significant NII tailwind from Non-Core and swaps in 2025 and beyond
Significant NII tailwind from Non-Core and swaps in 2025 and beyond Expected incremental quarterly NII impact from $250 $250 Non-Core and swaps portfolio relative to 4Q23* $225 $225 $200 $200 $175 $175 $150 $150 $125 $125 $100 $100 $75 $75 $50 $50 $25 $25 $— $— $(25) $(25) $(50) $(50) $(75) 4Q24 4Q2
Slide 13: Investment thesis
Investment thesis Citizens has a robust capital, liquidity and funding position – Committed to strengthening even further with balance sheet optimization, including Non-Core strategy – Relative strength allows Citizens to take advantage of opportunities – Focused on deploying capital to best relatio
Slide 14: Notes
Notes Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results. Where there is
Slide 15: Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core
Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core* 3Q 2023 (GAAP) 3Q 2023 Notables 3Q 2023 (Non-GAAP) Commercial Consumer Legacy Private (3) Private Legacy Private Banking Banking(1) Other Core(2) Bank Non-Core Legacy Bank Non-Core Core Bank Non-Core Total $s in milli
Slide 16: Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal
Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal $s in millions, except share, per share and ratio data 3Q23 CET1 Ratio adjusted for AOCI opt-out removal CET1 capital $ 18,360 Less: AFS securities - AOCI 2,341 (1) HTM securities - AOCI 854 DTA for AFS/HTM secu
Slide 17: Citizens Financial Group, Inc.
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Citizens Financial Group — Goldman Sachs Financial Services Conference 2023 on 6ix