Citizens Financial Group (CFG) Barclays 23rd Annual Global Financial Services Conference summary

Strategic transformation and business positioning

• Built a strong consumer bank by shifting from transaction-based to advice-based, digital, and data-driven services, with a focus on affluent customers.

• Expanded into the New York Metro region through acquisitions, achieving high deposit and household growth.

• Scaled commercial banking by adding industry expertise and targeting middle-market and mid-corporate clients, including private capital sponsors.

• Enhanced wealth management by hiring top talent and integrating teams, aiming for significant deposit, loan, and AUM growth.

• Pursuing further expansion in key markets like Southern California and Florida, with selective hiring of wealth teams.

Financial performance and outlook

• Targeting 16%-18% ROTCE in the medium term, with current under-earning attributed to legacy portfolios and non-core runoff.

• Private bank expected to deliver 20%-25% ROE this year, with commercial bank and payments investments contributing to future growth.

• Confident in achieving NIM of 3.25%-3.50% by 2027, supported by hedging and deposit growth strategies.

• NII and fee income projected to grow through 2026-2027, driven by capital markets, wealth, and payments businesses.

• Expense growth managed prudently, with investments in private banking and efficiency initiatives like Reimagine the Bank.

Reimagine the Bank initiative

• Multi-year transformation program leveraging generative and agentic AI to re-architect technology and customer journeys.

• Focused on improving customer experience, self-service, and operational efficiency.

• Designed to be self-funding, with tactical benefits offsetting initial investments and strong payback expected in 2-3 years.

• New CFO with deep transformation experience to help drive the initiative.

• Potential to exceed current ROE targets if the program delivers as planned.