Citizens Financial Group, Inc. · NYSE:CFG
Citizens Financial — BofA Securities Future of Financial Services Conference 2020
22 slides from Citizens Financial's conference presentation, Nov 10, 2020
Slide 1: BofA Securities Future of Financial Services Conference 2020
BofA Securities Future of Financial Services Conference 2020 John F. Woods Vice Chairman and Chief Financial Officer Eric J. Schuppenhauer President of Consumer Lending and National Banking November 10, 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: Overview
Overview A more diversified business model helps us navigate through a challenging rate environment Self-help initiatives to improve profitability and capital efficiency Investments in fee-generation capabilities Positioning Mortgage Banking to continue thriving even as rates rise Balance Sheet Opti
Slide 4: Significant progress in building a stronger and more diversified business model
Significant progress in building a stronger and more diversified business model see page 19 for notes and important information on Non-GAAP Financial Measures, as applicable, including “Underlying” results. “Underlying” results exclude the impact of notable items. Underlying PPNR performance has str
Slide 5: Consumer Banking – strategic priorities
Consumer Banking – strategic priorities Consumer Banking priorities to drive future growth Digital-first front to back re-imagination Zero-based restructuring of customer journeys from marketing through fulfillment Accelerating the repositioning of the distribution network to improve efficiency and
Slide 6: Consumer lending – a powerful platform for growth in an ever-changing landscape
Consumer lending – a powerful platform for growth in an ever-changing landscape Major trends reshaping how we compete Further enhance customer experience and improve efficiencies via digitization Maintain solid credit discipline and operational excellence while innovating every day Grow fee income;
Slide 7: Consumer lending – developing relationships by serving customer needs
Consumer lending – developing relationships by serving customer needs(1) Mortgage banking Point-of-sale finance Education lending Servicing ~500K customers nationwide; ~55% outside regional footprint Top-10 bank-owned originator & servicer(2) ~2.8 million customers currently with ~75% outside region
Slide 8: Mortgage Banking – platform for fee growth and customer acquisition
Mortgage Banking – platform for fee growth and customer acquisition Key strategic investments enabled us to build a strong Mortgage Banking business 2020 YTD originations ~$30 billion $103 billion servicing portfolio at 9/30/20 $s in billions #7 ranked bank originator; ~1.1% market share ~35%/65% pu
Slide 9: Mortgage Banking – positioned for significant opportunities ahead
Mortgage Banking – positioned for significant opportunities ahead Deliver best-in-class digital experience while improving efficiencies Increase distribution presence and gain share in all channels Continue to build digital-first origination process for Retail channel Develop digital gateway for Who
Slide 10: Mortgage Banking – continue to improve customer experience and efficiency
Mortgage Banking – continue to improve customer experience and efficiency E2E digitization effort well underway as part of TOP 6 Transformation Reducing human touchpoints in operations via redesign and digitization of workflows Empowering colleagues with digital tools to better serve customers Expec
Slide 11: Mortgage Banking – expect to gain share even as rates rise
Mortgage Banking – expect to gain share even as rates rise Potential for >$3T mortgage market in 2021(1) Focused on taking share in the purchase market Expect total market share to approach ~2% from 1%+ today as market begins to normalize in 2022 and beyond CFG market share expected to rise as refi
Slide 12: Education lending – a distinctive area of lending strength
Education lending – a distinctive area of lending strength A leader in education lending Positioning for the future Leading education lending platform enables us to grow target customers Targeting emerging mass affluent customers with growing financial needs; powerful means of building core banking
Slide 13: Point-of-sale finance – capabilities well-established in a high growth market
Point-of-sale finance – capabilities well-established in a high growth market Significant profit pools to disrupt – general purpose and private label cards Early advantage with 2015 Apple partnership Deep expertise in creating a seamless customer experience and credit/fraud analytics at POS Scalable
Slide 14: Point-of-sale finance – fintech agility paired with the strength of a bank
Point-of-sale finance – fintech agility paired with the strength of a bank 100% digital end-to-end capability Omni-channel solutions, e.g., online, mobile, in-store Highly scalable and flexible platform enables onboarding merchants quickly with low incremental cost Consumer Electronics Retail Teleco
Slide 15: Point-of-sale finance – continuing to innovate
Point-of-sale finance – continuing to innovate Created altogether new products and capabilities Seamless customer experience integrated with product sale Capability for merchants to distribute via multiple retailers Leveraging deep POS expertise and innovation to build competitive advantage Next gen
Slide 16: Wrapping up
Wrapping up Focused on mass affluent/affluent segments to drive stickier revenue through deepening Deliver front-to-back digital transformation to enhance customer experience and efficiency Build on Citizens Access®, combined with distinctive lending capabilities, to expand nationally through a bold
Slide 17: Appendix
Appendix Xx Citizens nancial Group,
Slide 18: Retail credit quality update
Retail credit quality update Retail credit generally performing well reflecting our focus on super-prime/prime customers Forbearance rates down from 6.0% at 6/30/20 to 2.8%* at 10/31/20 Broadly stable early-stage retail delinquency trends for loans not in forbearance ~95% of borrowers who exited for
Slide 19: Notes
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 20: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data FOR THE NINE MONTHS ENDED SEPTEMBER 30, FULL YEAR 2020 2019 2018 2017 2016 2015 Total revenue, Underlying: Total revenue (GAAP) A $5,198 $6,491 $6,128 $5,707 $5,255 $4,824 Less: Special items — — —
Slide 21: Non-GAAP financial measures and reconciliations
Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data FOR THE NINE MONTHS ENDED SEPTEMBER 30, FULL YEAR 2020 2019 2018 2017 2016 2015 Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) E $526 $1
Slide 22: 3* Citizens
3* Citizens Financial Group, Inc.”
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