Pnc Financial Services Group, Inc. (the) · NYSE:PNC

Pnc Financial Services Group, Inc. (the) — Q3 2017 Earnings Presentation

20 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 13, 2017

  1. Slide 1: Third Quarter 2017 Earnings Conference Call

    Exhibit 99.2 Third Quarter 2017 Earnings Conference Call October 13, 2017

  2. Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information

    Cautionary Statement Regarding Forward-Looking and Non- @®PNC GAAP Financial Information Our m intended as a full business or financial review and should be viewed in the context of all of th lable by EC fil id website. outlook for earnings, revenues. expenses, capital ms liquidity tevels and ratios

  3. Slide 3: Third Quarter 2017 Highlights

    Third Quarter 2017 Highlights Delivered high quality results — Loan growth — Net interest income growth — Net interest margin expansion — Well-managed expenses — Benign credit quality — Strong capital return Ongoing execution on our strategic priorities positions us to deliver positive operating lev

  4. Slide 4: Balance Sheet: Grew Loans and Deposits

    Balance Sheet: Grew Loans and Deposits @PnNc Change vs. Average balances, $ billions 3017 2017 3016 Highlights + Linked quarter growth driven by corporate banking mrormencieliending $146.9 $27 $101 business credit and equipment finance businesses conamar ONT re a2 03 * Growth in residential mortgage

  5. Slide 5: Income Statement: High Quality Results

    Income Statement: High Quality Results @PnNc Change vs $mions 30172173018 Highlights Net interest income $2,345 $87 $250 * Reflects higher loan yields and balances LQ decline primarily related to lower corporate service fees Fasten 1,438 ($32) ($41) compared with record corporate service fees in 201

  6. Slide 6: Performance Metrics

    Performance Metrics PNC Return on Average Assets Return on Average Common Equity 8.74% o, I 97-88% Im 9.89% mm I +115 bps YoY 3016 4016 1017 2017 3017 3a16 = 4Q16 Return on Tangible Common Equity Tangible Book Value per Share 3016 = 4Q16-— 1017-217 Return ont GAAP) 3017 $69.72 12.67% Im 12.66%| $68.

  7. Slide 7: Income Statement: Revenue Growth

    Income Statement: Revenue Growth Revenue 8% YOY Total Revenue Growth $1,736 $1,744 $1,802 ff $1,780 $1,724 3Q16 4Q16 1017 2017 =NI 3Q17 MME Noninterest Income -O-NIM ~ NII Net interest income, NIM Net interest rnaegin, @Pnc Noninterest Income Diverse Sources of Fee-Based Revenue Change Change vs. xs

  8. Slide 8: Income Statement: Well-Controlled Expenses

    Statement: Well-Controlled Expenses PNC while Investing in our Businesses Expense $2,394 $2,441 $2,402 at] oesoe $ millions 1017 2017 3Q17 3016 4Q16 mm Noninterest Expense Efficiency

  9. Slide 9: Credit Quality: Remains Benign

    Credit Quality: Remains Benign Nonperforming Loans $2,146] $2,144) ] : $1,998 $1,957] 3016 4Q16 1017-2017 @PnNc Delinquencies $1,576) 1,456 | 3016 © 4Q16 1017-2017, 3Q17 ~ Accruing loans. past due 30-days or more Provision 3Q16 4016 1017 2017 3Q17 Net Charge-Offs 316 = 4Q16 1017, 217, 317 NCO / Aver

  10. Slide 10: Outlook: Fourth Quarter 2017 Compared to Third Quarter 2017

    Outlook: Fourth Quarter 2017 Compared to Third Quarter 2017 Balance Sheet Income Statement Loans Net interest income Fee income Noninterest expense Loan loss provision Up modestly Up low-single digits Up low-single digits Up low-single digits $100 - $150 million regulatory contingencies. @PnNc quart

  11. Slide 11: Cautionary Statement Regarding Forward-Looking Information

    Appendix: Cautionary Statement Regarding Forward-Looking @®PNc Information his presentation includes “snap: PNC ie reLIneHaRarS MLK fi h Fis ats avs AOA SO nee fal of the information in its SEC filings, expenses, capital and (nee levels and ratios, asset levels, asset quality, i sti and other Evie e

  12. Slide 12: Cautionary Statement Regarding Forward-Looking Information

    Appendix: Cautionary Statement Regarding Forward-Looking @®PNc Information = Our Th based current view that theUS bal but ata slower p: hi under current programs, or issue or c instruments, is subject to the review of such proposed part of PNC's plan for Reserve by the Federal Reserve Board. 9 P dep

  13. Slide 13: Appendix: Cautionary Statement Regarding Forward-Looking Information

    @PnNc Appendix: Cautionary Statement Regarding Forward-Looking esses, including, wl Information third-party insurance, derivatives, and abies ean techniques, and fee B sence nui effective use of systems and controls, ceo coat atl Uni secs . r r equity interest 9 iran pl ais steel astioacara mseouet

  14. Slide 14: Basel III Regulatory Capital Ratios

    Appendix: Basel III Regulatory Capital Ratios @®PNc ‘6 a result of the phase-in periods included in the final U.S. Basel III regulatory capital rules (Basel III rules). as well as the fact that PNC remains in the parallel run qualification phase forthe advanced approach s regulatory risk- based capi

  15. Slide 15: Non-GAAP Basel III Regulatory Capital Ratios

    Appendix: Non-GAAP Basel III Regulatory Capital Ratios @®PNC y Tier 1 Capital Ratios care Bi 2016 Transitional Pased-In Bose Il 2017 Trarsitonal Basel I Ml y. Sep.30, [sn mitions 2017 un. 30, Sep.30, Jun.30, Sep.30, (estimated) 2017 2017 2017 2016 |common siock, related surplus, and retained earring

  16. Slide 16: Non-GAAP to GAAP Reconciliation

    Appendix: Non-GAAP to GAAP Reconciliation @PNC Fee Income For the three months ended % Chang 3Qi7vs. 3017 vs. $ in mitlions 3017 201 3016 2017 3016 Asset management $421 $398, $404 6% 4% Consumer services 987 360 348 (1%) 3% (Corperazarsse 371 43h 389 (15%) Residential mortgage 104 104 160 : Service

  17. Slide 17: Non-GAAP to GAAP Reconciliation

    Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share @PnNc $ in mitions, except per share date Book value per common share [Tangible book value per common share *% Change 9/30/17 9/30/17 vs. vs. 3 2 . 016 _6/30/17_ _ 9/30/16 657 % Common shareholders’ equity $42,406, BATT $

  18. Slide 18: Non-GAAP to GAAP Reconciliation

    Appendix: Non-GAAP to GAAP Reconciliation @PNC Pretax Pre-Provision Earnings For the three months ended % Change 6m milions 3017 vs. Sdi7vs. 3017 201 3016 Net interest income $2,345 4% 12% Noninterest income 1,780 (1%) 3% Total revenue $4,125 2% 8% Noninterest expense (2,456) (1%) 3% Pretax pre-prov

  19. Slide 19: Non-GAAP to GAAP Reconciliation

    Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity @PnNc i is three months ended Mar. 31 Sep.30, Jun. , Dec. 31, Sep. 30, pxenalions 2017 207 2817 2016 2016 Return on average commen shareholders’ equity 989% 9.88% — 9.50% = 9.31% 8.74) lAverage common shareholders’ equity $42

  20. Slide 20: Other Noninterest Income

    Appendix: Other Noninterest Income @PnNc Net Visa Activity For the three months ended Sep.30, Jun.30, Mar.31, Dec.31, Sept. 30, $ in mittions 2017 2017 2017 2016 2016 Gains on Visa Sales $ - $ - $ o FF - $ 8 Derivative Fair Value Adjustments 2) (4) (16) (20) (11) Net Visa Activity $ 12) $ (4) $ (16)

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