Attached files
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| 8-K - 8-K - MUFG Americas Holdings Corp | investorpresentation8kcove.htm |
• Long history of Union Bank presence, including 150+ years in California
• One of the few banks with outstanding credit performance during the economic downturn, with
continuing high-credit standards
• Top 10 bank reputation in the past three years3 and top 3 customer satisfaction rating4
1. United States Census Bureau
2. U.S. Bureau of Economic Analysis for 2014
3. American Banker / Reputation Institute Survey of Bank Reputations
4. JD Power 2015 Retail Banking Satisfaction Study CA Region
Demographic
Attributes1 CA USA Feature of CA markets
Small Businesses 875,000 7,500,000 Includes 12% of small businesses in the US
Median Household
Value $366,400 $176,700
The largest jumbo residential market in the US,
driving median home value ~2x US median
Median Household
Income $61,000 $53,000
Median income is ~15% higher than the US
median
GDP2 $2.3T $17.4T Ranked 8
th among world’s largest national
economies
Population 39M 319M Includes ~12% of the US population
California is the 8th largest economy in the world | Largest jumbo market in the US
12% of small businesses in the US | Median incomes 15% higher than the US median
Regional Bank ‐Well-positioned with an Attractive Geographic Footprint
MUFG Union Bank in California
1
Regional Bank - Go-Forward Value Proposition
To be THE PREMIER AND MOST TRUSTED
West Coast bank that is the local
alternative to national banks
Strategic Vision
For ambitious individuals and businesses,
a local relationship bank
providing holistic solutions
to help achieve financial aspirations
Value Proposition
Deepen Existing Customer Relationships1
Diversify Products & Drive Fee Income2
Improve Efficiency & Effectiveness3
Provide Meaningful Liquidity to MUAH4
Increase Customer Acquisition 5
Core Foundational Technology Investments 6
Strategic Objectives
Improving Profitability and Generating
Sustainable Growth
2
(USD MM） Jan-Mar Quarter
FY15 FY16 YoY($/ppt) YoY(%)
Gross Profits 590 596 6 1%
Non-Interest Expense 425 399 (26) (6%)
Operating Profits2 165 197 32 19%
Efficiency Ratio 72% 67% (5ppt) (7%)
Regional Bank Financial Performance
1. As disclosed in MUAH 2016 Q1-Q2 10Q and 2015 10K under US GAAP. Loans and deposits are average balance
2. Pre-tax, pre-provision
• In challenging rate
environment, Regional Bank
has been focused on steady
loan and fee growth and
efficiency
• Initiatives are continuing to
drive revenues despite low
rates
• Expense decline driven by
non-recurring events in
addition to ongoing expense
management
(USD Bn)
Steady Loan & Deposit Growth1 Improving Efficiency
Income Statement1
3
0
20
40
60
FY13 FY14 FY15 FY16 H1
Loans Deposits
300
320
340
360
380
400
420
2,000
3,000
4,000
5,000
6,000
7,000
FY13 FY14 FY15 FY16 H1
FTE（Left Axis) # of Branches（Right Axis)
Key Initiatives for Profitability and Sustainable Growth3
4
In August 2016, Union Bank converted its consumer and small business credit card
portfolio from First National Bank of Omaha and initiated the sale of new Union Bank-
issued credit cards
Initial activation rates, retention rates, and new card production volumes have
been strong and in-line with forecasts
The Regional Bank is focused on driving incremental credit card balance growth
through the following priorities and initiatives:
Regional Bank - Key Initiative 1
Diversifying Lending Products: Consumer Credit Card Expansion
5
Strategic Priorities & Initiatives
Increase
Application
Volume
• Deliver targeted marketing offers
across bank channels
• Enhance digital account opening
processes
Enhance
Servicing
Improve
Approval Rates
Expand
Product Suite
• Deliver expanded card controls and
alerts
• Enhance Union Bank rewards program
to drive greater relationship value
• Enable digital wallet support and
integration
• Expand card offerings to optimize
penetration within our risk profile
• Enhance relationship-based
underwriting processes
• Launch small business, vertical-based
card offering
• Launch card offering for high net
worth segment
• Provide U.S. card offerings to
Japanese expats
Regional Bank - Key Initiative 2
Deepening Existing Relationships: Collaboration Among Business Segments
6
Unified Regional Bank under single leadership to enhance collaboration across business lines (e.g., Commercial
Banking, Jumbo Mortgages and Wealth)
Wealth Markets represents a significant opportunity to deepen existing client relationships and to generate
recurring fee income
Increase
Sales Execution
• Scale salesforce
• Disciplined sales management
• Align incentives
• Leverage data
• Enhance sales support
Drive
Partner
Dialogue
• Expand relationship mortgage
program with wealth
• Increase investment penetration
among Retail clients
• Improve joint account planning and
referrals between wealth and
commercial
Upgrade
Core & Digital
Technology
• Unify online and mobile experience
and increase functionality
• Partner to develop low-cost
automated investment platform
• Upgrade core tools and technology
Enhance
Capabilities
• Expand high net worth products
• Leverage client events and social
media to drive increased client
engagement, thought leadership and
brand awareness
Strategic Priorities
Cross Regional Bank Initiatives Example: Wealth Initiatives
Regional Bank - Key Initiative 3
Providing Meaningful Liquidity
7
The Regional Bank is focused on becoming a larger net liquidity contributor to the MUAH organization
• Increase core Retail deposit gathering, leveraging digital and database marketing techniques
• Grow the Transaction Banking deposit portfolio through cross-sell to new and existing customers
• Launch a national direct bank in the near future
Regional Bank Deposit Balances1
0
10
20
30
40
50
60
FY11 FY12 FY13 FY14 FY15
(USD Bn)
1. Average balances. Based on managerial accounting methodologies as disclosed in MUAH’s 2015 10-K statutory report. Includes deposits acquired from Tamalpais Bank,
Frontier Bank and Pacific Capital Bancorp.
CAGR: 10%