Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Credit Suisse Financial Services Forum 2014
25 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Feb 11, 2014
Slide 1: The PNC Financial Services Group, Inc. Credit Suisse Financial Services Forum
Exhibit 99.1 The PNC Financial Services Group, Inc. Credit Suisse Financial Services Forum February 11, 2014
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information Our earnings conference call presentation includes “snapshot” information about PNC used by way of illustration. It is not intended as a full business or financial review and should be viewed in the context of all of
Slide 3: Agenda
Agenda 2013 financial performance Strategic priorities update Continued focus on expense management and capital flexibility 3
Slide 4: PNC's Leading Franchise
PNC’s Leading Franchise (1) December 31, 2013 U.S. Rank Deposits $221B 7 th Assets $320B 7 th Branches 2,714 4 th ATMs 7,445 3 rd Asset Management A top 10 U.S. bank-held wealth manager Retail Banking Corporate & Institutional A leader in serving middle-market, Footprint covering nearly half of the
Slide 5: Record FY13 Net Income
Record FY13 Net Income Financial Highlights - FY13 ROAA(1) 1.38% ROACE(1) 10.88% Noninterest income to total revenue 43% (1) See Note A in the Appendix for additional details. 5
Slide 6: Strong Relative Performance
Strong Relative Performance FY12-FY13 FY12-FY13 FY12-FY13 FY12-FY13 Loan growth (1) Revenue growth Expense growth Pre-tax pre-provision growth (2) STI PNC FITB BAC WFC JPM USB KEY CMA KEY BBT CMA CMA WFC RF USB BBT WFC RF MTB USB BBT COF STI JPM Average (2) 0% -1% 0% 3% Peer Source: SNL Datasource.
Slide 7: Value Creation Through the Cycles
Value Creation Through the Cycles Tangible Book Value Per Common Share (1) % change 12/31/2007 to 12/31/2013 PNC $54.68 $17.93 12/31/07 12/31/13 (1) Peer source: SNL Datasource. See Note C and PNC reconciliation in Appendix for further details. PNC’s book value per common share was $43.60 at 12/31/2
Slide 8: Revenue Growth and Efficiency Improvement Opportunities
Revenue Growth and Efficiency Improvement Opportunities Strategic Priorities Targeted Outcomes (1) Drive growth in acquired & underpenetrated Expand markets market share Capture more investable assets Deepen relationships Redefine the Retail Banking business Increase Build a stronger fee income Resi
Slide 9: Deeper Penetration in Underpenetrated and Acquired Markets
Deeper Penetration in Underpenetrated and Acquired Markets Total Corporate Banking and AMG sales Deepening client relationships Northeast Midwest Southeast (1) Product Growth Corporate Banking Primary Clients Total Corporate Banking and AMG cross-sales Northeast Midwest Southeast (1) New client New
Slide 10: Gaining Momentum in Southeast Markets
Gaining Momentum in Southeast Markets (1) Retail Banking Corporate & Institutional Banking Total DDA households (2) Average Loans Corporate Banking Average Loans new primary clients (3) Asset Management Group Residential Mortgage Banking New primary clients (5) Referral sales Loan origination volume
Slide 11: Capturing More Investable Assets
Capturing More Investable Assets AMG - Assets Under Administration (AUA) Highlights Asset Management Group AUA increased 10% from 12/31/12 to 12/31/13 Core net flows (1) of $4.7 billion in Discretionary AUM in 2013, up 84% over 2012 Noninterest income increased 11% in 2013 compared to 2012 Retail Ba
Slide 12: Retail Banking – Redefining the Branch Network
Retail Banking – Redefining the Branch Network Successfully migrating customers to self-service – ATM/Mobile usage increasing Total deposit transactions 2012 2013 Active online banking customers Retail Banking Headcount (HC) 12 month change (Dec. 2012 vs. Dec. 2013) Investment Professionals Call Cen
Slide 13: Building a Stronger Residential Mortgage Banking Business
Building a Stronger Residential Mortgage Banking Business Closing applications faster Growing purchase volume faster than industry than industry Purchase Applications to Close Date Loan Origination Volume Purchase (1) Refinance Purchase (1) Fundings 2012 vs. 2013 volume increase (1) A mortgage with
Slide 14: Building Best In Class Technology & Operations
Building Best In Class Technology & Operations Establishing a foundation to support our scale and effectively respond to our rapidly changing environments Providing ability to grow with existing investments Creating a competitive advantage – improved operational efficiency and business agility Focus
Slide 15: Continued Focus on Expense Management
Continued Focus on Expense Management Noninterest Expense Trend 2013 Highlights Decreased expense reflected our continued focus on disciplined expense management – FY13 expenses down 7% for first YOY decline since 2010 – Exceeded $700 million FY13 CIP (2) targets 2014 expense management opportunitie
Slide 16: Strong Capital Improvement
Strong Capital Improvement Strong Capital Position Provides Capital Flexibility Highlights Capital levels and ratios continued to increase Capital priorities: – Build capital to support client growth and business investment – Maintain appropriate capital in light of economic uncertainty – Return exc
Slide 17: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix This presentation includes “snapshot” information about PNC used by way of illustration and is not intended as a full business or financial review. It should not be viewed in isolation but rather in the context of all of the informa
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •PNC’s ability to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock or
Slide 19: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of third-party insurance, derivatives,
Slide 20: Notes
Notes Appendix Explanatory Notes (A) ROAA is Return on Average Assets and ROACE is Return on Average Common Shareholders' Equity. (B) Pretax pre-provision earnings is defined as total revenue less noninterest expense. We believe that pretax pre-provision earnings, a non-GAAP measure, is useful as a
Slide 21: Estimated Pro forma Basel III Tier I Common Capital
Estimated Pro forma Basel III Tier I Common Capital Appendix We provide information below regarding PNC’s pro forma fully phased-in Basel III Tier 1 common capital ratio and how it differs from the Basel I Tier 1 common capital ratio. This Basel III ratio is calculated using PNC's estimated risk-wei
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended $ in millions Dec. 31, 2013 Dec. 31, 2012 % Change Net interest income $9,147 $9,640 -5% Noninterest income $6,865 $5,872 17% Total revenue $16,012 $15,512 3% Noninterest expense ($9,801) ($10,582) -7% Pretax pre-provision earnings (1) $6,21
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended $ in millions Dec. 31, 2013 Dec. 31, 2012 % change Asset management $1,342 $1,169 Consumer services $1,253 $1,136 Corporate services $1,210 $1,166 Residential mortgage $871 $284 Deposit service charges $597 $573 Total fee income, as reported
Slide 24: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Tangible Book Value per Common Share Ratio Tangible book value per common share is a non-GAAP financial measure and is calculated based on tangible common shareholders' equity divided by period-end common shares outstanding. We believe this non-GAAP financial
Slide 25: Peer Group of Banks
Peer Group of Banks Appendix The PNC Financial Services Group, Inc. PNC BB&T Corporation BBT Bank of America Corporation BAC Capital One Financial, Inc. COF Comerica Inc. CMA Fifth Third Bancorp FITB JPMorgan Chase JPM KeyCorp KEY M&T Bank MTB Regions Financial Corporation RF SunTrust Banks, Inc. ST
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