Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2019 Earnings Presentation
18 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 17, 2019
Slide 1: Second Quarter 2019 Earnings Conference Call
Exhibit 99.2 Second Quarter 2019 Earnings Conference Call July 17, 2019 The PNC Financial Services Group
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on its corpora
Slide 3: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights . Successful quarter Net Income − Average loans up 3% $1.4 billion − Average deposits up 2% Diluted Earnings Per Share − Net income up 8% $2.88 − Revenue up 4% Return on Average Assets − Net interest income up 1% 1.39% − Noninterest income up 7% − Noninterest expense u
Slide 4: Balance Sheet: Grew Loans, Deposits and Securities
Balance Sheet: Grew Loans, Deposits and Securities Change vs. Average balances, $ billions 2Q19 1Q19 2Q18 Highlights . Growth primarily in corporate banking and business Commercial lending $160.1 $5.4 $10.4 credit businesses . Growth in residential mortgage, auto, credit card and Consumer lending 74
Slide 5: Balance Sheet: Strong Growth in Loans and Deposits
Balance Sheet: Strong Growth in Loans and Deposits Loans Deposits 3% Linked Quarter Growth 2% Linked Quarter Growth $234.8 $228.5 $267.2 $272.9 $222.6 $261.0 $160.1 $154.7 $195.8 $201.2 $149.7 $184.4 4.61% 4.56% 0.98% 1.03% 4.23% 0.57% Average Average balances, $ billions Average Average balances, $
Slide 6: Balance Sheet: Substantial Capital Returned to Shareholders
Balance Sheet: Substantial Capital Returned to Shareholders Announced Share Repurchase Programs Highlights Significant Increase in 2019 Plan $4.3 . Completed 2018 capital plan: $2.7 $2.9 $2.3 − Returned $4.5 billion to $ billions shareholders via dividends and share repurchases 3Q16 - 2Q17 3Q17 - 2Q
Slide 7: Income Statement: Strong Results, Positive Operating Leverage
Income Statement: Strong Results, Positive Operating Leverage Change vs. $ millions 2Q19 1Q19 2Q18 Highlights . Higher interest-earning assets, partially offset by lower Net interest income $2,498 $23 $85 asset yields and higher interest-bearing liability balances . Linked quarter had seasonally hig
Slide 8: Income Statement: Revenue Growth Despite Margin Compression
Income Statement: Revenue Growth Despite Margin Compression Total Revenue Noninterest Income Detail 4% Linked Quarter Growth 7% Linked Quarter Growth $4,439 $4,324 $4,286 Change vs. $2,498 $ millions 2Q19 1Q19 2Q18 $2,413 $2,475 Asset management $445 $8 ($11) Consumer services 392 21 11 2.96% 2.98%
Slide 9: Income Statement: Focused on Expense Management
Income Statement: Focused on Expense Management Noninterest Expense Noninterest Expense Detail Efficiency Ratio Improved 1% Linked Quarter Growth Change vs. $2,584 $2,578 $2,611 $ millions 2Q19 1Q19 2Q18 Personnel $1,365 ($49) $9 Occupancy 212 (3) 9 60% 60% 59% Equipment 298 25 17 $ millions Marketi
Slide 10: Credit Quality: Remains Strong
Credit Quality: Remains Strong Provision Net Charge-offs ALLL to Loans for 2Q19: 1.15% NCO / Average Loans for 2Q19: 0.24% $189 $180 $136 $142 $148 $109 $107 $91 $80 $88 $ millions $ millions 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Nonperforming Loans Delinquencies $1,724 $1,719 $1,694 $1,
Slide 11: Outlook: Third Quarter 2019 Compared to Second Quarter 2019
Outlook: Third Quarter 2019 Compared to Second Quarter 2019 Balance Average loans Up approximately 1% Sheet Net interest income Stable Fee income Up low-single digits Income Other noninterest income $250 - $300 million Statement Noninterest expense Stable Loan loss provision $150 - $200 million − Re
Slide 12: Outlook: Full Year 2019 Compared to Full Year 2018
Outlook: Full Year 2019 Compared to Full Year 2018 Balance Average loans Up approximately 5% Sheet Revenue Up higher end of low-single digits Income Noninterest expense Up lower end of low-single digits Statement Effective tax rate Approximately 17% Positioned to deliver positive operating leverage
Slide 13: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 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 inform
Slide 14: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and
Slide 15: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . 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 systems and controls, third-party insurance, d
Slide 16: Appendix: Non-GAAP to GAAP Reconciliation - Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity (Non-GAAP) For the three months ended June 30, March 31, June 30, $ millions 2019 2019 2018 Return on average common shareholders' equity 11.75% 11.13% 12.13% Average common shareholders' equity $44,591 $43,624 $42,670 Averag
Slide 17: Appendix: Non-GAAP to GAAP Reconciliation - Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (Non-GAAP) % Change 6/30/19 6/30/19 $ millions, except per share data June 30, March 31, June 30, vs. vs. 2019 2019 2018 3/31/19 6/30/18 Book value per common share $101.53 $98.47 $92.26 3% 10% Tangible book value per com
Slide 18: Appendix: Non-GAAP to GAAP Reconciliation - Pretax, Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (Non-GAAP) For the three months ended % Change June 30, March 31, June 30, 2Q19 2Q19 $ millions 2019 2019 2018 vs. 1Q19 vs. 2Q18 Net interest income $2,498 $2,475 $2,413 1% 4% Noninterest income 1,941 1,811 1,911 7% 2% Total re
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