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Actionable news in CFG: CITIZENS FINANCIAL GROUP Inc,

CITIZENS FINANCIAL GROUP: Summary Of Progress On Strategic Initiatives Consumer Commercial Enterprise

The following excerpt is from the company's SEC filing.

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 Business Capital, Govt & Professional Banking, Corporate Finance & Global Markets, Treasury Solutions, Corporate and Commercial Banking Admin. Retail loan growth rate excludes Business Banking loans reported in Consumer Banking which are included in Commercial loan product growth rate for comparison purposes. Results al so include Other segment loans. Peer banks include BBT, CMA, FITB, KEY, MTB, PNC, RF, STI and USB. (3,4) Consumer Banking average loans and leases Yields 3.67% 3.68% 3.72% 3.68% 3.69% Mid - Corporate Industry Verticals Franchise Finance Middle Market Asset Finance Commercial Real Estate Other(2) Yields 2.61% 2.62% 2.57% 2.56% 2.57% Mortgage Home Equity Auto Student Business Banking Other(1) 8% growth 11% growth

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. See appendix for a reconciliation of non-GAAP items. Core CFG results exclude, as applicable, restructuring charges and special items, and securities gains. 1Q15 excludes $10 million gain on sale of mortgage portfolio. Peer results adjusted for similar unusual or special revenue and expense items where available. Peer banks include BBT, CMA, FITB, KEY, MTB, PNC, RF, STI and USB.

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 BBT, CMA, FITB, KEY, MTB, PNC, RF, STI and USB. Lower net interest margin compression Lower yield compression (Earning asset yield) 8 bps worse than peers Opportunity to minimize deposit costs (Total deposit costs change)

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 business banking clients Strong focus on improving risk-adjusted commercial loan yields 1% 2% 3% 4% 5% 6% Company X 4.75% Company Y 1.75% 0% BBB BBB- BB BB- B+ B Investment grade or equivalent risk rating Yield % R2 =63% N =61

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 3Q14 average balances of $46 million. Includes the impact of a 20% YoY decrease in non-core and other loans. Evaluating and refining targeted growth opportunities to drive enhanced risk-adjusted returns Invest to drive higher returns Reduce capital allocation to these areas Continue growth trajectory (2) (1)

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...


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