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

Pnc Financial Services Group, Inc. (the) — Lehman Brothers Financial Services Conference 2005

35 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Sep 13, 2005

  1. Slide 1: The PNC Financial Services Group, Inc. at Lehman Brothers Financial Services Conference

    Exhibit 99.1 The PNC Lehman 2005 New York, Financial Brothers Financial NY September Services Services Conference 13,Group, 2005 Inc.

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Information

    Cautionary Forward-looking well www.sec.gov Future The This available forward-looking as presentation events those onStatement our factors and or corporate circumstances statements contains may on previously or statements Regarding also through website forward-looking include aremay disclosed necess

  3. Slide 3: Keys to Success in the Current Environment

    Keys A Diversified Executable Invest Solid toinPlatform Success andGrowth business growin fee-based the Strategies mix Current Strong businesses Environment risk management Continue to grow low-cost deposit franchise Generate value-added loans Improve asset yields Make operating efficiency a core co

  4. Slide 4: A Diversified Business Mix

    Business Regional A Wholesale Top One Among Regional, BlackRock PA MD VA PNC International PFPC leading NJ DC 10 DE of Advisors ––A Bank Employees/Offices the Treasury KY the with IN Leadership Diversified Community community National Banking nation’s Branches –largest OHinvestment fund offices with

  5. Slide 5: PNC's Businesses Earnings Contribution, First Half 2005

    PNCsAdvisors Regional PNC Wholesale BlackRock Earnings: PFPC Return Business High onearnings Earnings Community $258 $53 $254 $100 $47 capital: average Banking Return30% 21% 38% and equity: capital: Contribution—First Business Banking return 24% 34% Mix on capital Half reconciled 2005 $millions to G

  6. Slide 6: Built for a Strong Credit Risk Profile

    Built PNC June for Nonperforming Net Excluding Allowance Source: Moody’s sale charge-offs 30, Compares a Strong and SNL 2005 and $53 for foreclosed DataSource; peer PNC Credit loan million to assets loans Favorably group average and A-/A2 Risk to to loan assets lease loans represents loans, PNC Prof

  7. Slide 7: First Half 2005 Highlights

    First Strong Riggs quarter…excluding Financial Six June Net EPS ROCE Noninterest to Loans * Business Loans total Months income (diluted) 30, Half successfully to client 16.7% revenue to 2005 deposits* Highlights 2005 deposits segment $636 Ended income activity $2.22 Highlights 65% million converted

  8. Slide 8: Keys to Success in the Current Environment

    Keys A Diversified Executable Invest Solid toinPlatform Success andGrowth business growin fee-based the Strategies mix Current Strong businesses Environment risk management Continue to grow low-cost deposit franchise Generate value-added loans Improve asset yields Make operating efficiency a core co

  9. Slide 9: Growing Fee-Based Noninterest Income to Differentiate PNC

    Fee-Based Noninterest Banking PFPC BlackRock BK 0% 10% 20% 30% 40% 50% 60% 70% 80% Information Growing Consolidated 2002 $450 $550 $650 $750 $850 $950 $1,050 PNC 2003& Noninterest WBBusinesses 2004 Other Income for Noninterest USB the 2005 FITB three toIncome Differentiate Total months NCC Income Re

  10. Slide 10: BlackRock Earnings Growth

    BlackRock Earnings GAAP $178 $0 $50 $100 $150 $200 Twelve Six * Assets $342 2002 12/31 6/30/05 Reflects Months $155 $309 2003 Under Earnings Months $adjusted $133 $273 2004 millions –Ended AManagement Growth Ended Adjusted $143 1H04 June earnings $120 1H05 December Engine 30Earnings* $$103 for billi

  11. Slide 11: PFPC Earnings

    PFPC Earnings $24 $0 $5 $10 $15 $20 $25 $30 $17 Mar Assets 2005 $766 $500 $550 $600 $650 $700 $750 $800 $665 Jun 200430 $23 $17 31 $745 $667 2005 –Serviced Sep Jun Strong $20 $ $721 millions 30 30 Dec Growth $ billions 31 Mar 31 Jun 30

  12. Slide 12: Strong Wholesale Banking Highlights

    Selling One Highlights Strong $ Midland $0 $50 $100 $150 $200 $250 $300 $350 2004 +12% +3% +16% Six millions Months of2005 Product the More Loan largest Ended Fee-Based Services Revenue bank June treasury Capital 30 Wholesale GrowthMarkets management Banking Treasury Products providers Management #1

  13. Slide 13: Keys to Success in the Current Environment

    Keys A Diversified Executable Invest Solid toinPlatform Success andGrowth business growin fee-based the Strategies mix Current Strong businesses Environment risk management Continue to grow low-cost deposit franchise Generate value-added loans Improve asset yields Make operating efficiency a core co

  14. Slide 14: Growing a Valuable Deposit Base

    Growing Relationship $ 11% 4% Regional Average $5 $7 $9 $11 $13 $15 4Q 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2002 billions 1Q CAGR CAGR 2003 2QCertificates Federal aCommunity 3Q Valuable 2004 Strategy 4Q2005 Funds 1QCore of2Q Generating Banking Deposit Rate 3Q Deposit 4QAverage 1Q Deposit Base 2Q Cert

  15. Slide 15: Noninterest-Bearing Deposits Becoming More Valuable

    PNC’s Noninterest-Bearing PNC 12% 14% 16% 18% 20% 22% Industry Rising Impact 1Q 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 2004 2QIndustry 2005 Interest High 3Q ofreflects source: Noninterest-Bearing 4Q%1QRates ofSNL average 2QDeposits Funding Increase DataSource of 460 Value Becoming to Sources publicly A

  16. Slide 16: Increasing Regional Community Banking Customer Base

    Increasing Regional 8% 0.0 0.5 1.0 1.5 2.0 millions 2002 Small 12/31 …Provides Home Growth* Consumer * Growth CAGR 2003 Business equity Community isOn-line and 2004 Opportunities for loans Deepening six Consumer 6/30/05 Banking Bill-Pay +19% months Banking for Checking ended Users Deepening Checking

  17. Slide 17: Keys to Success in the Current Environment

    Keys A Diversified Executable Invest Solid toinPlatform Success andGrowth business growin fee-based the Strategies mix Current Strong businesses Environment risk management Continue to grow low-cost deposit franchise Generate value-added loans Improve asset yields Make operating efficiency a core co

  18. Slide 18: Improving Business Loan Growth

    Improving PNC Business $0 $5 $10 $15 $20 $25 Commercial 5% 26% 11% 27% 4Q03 Since CAGR * Includes Average 1Q04 Banking Market Execution 2Q04 Real Commercial Estate 3Q04 Business Street Driving 4Q04 and Funding Loans Credit Real Loan 1Q05$Corporation Estate billions Growth 2Q05 Related Corporate Bank

  19. Slide 19: Keys to Success in the Current Environment

    Keys A Diversified Executable Invest Solid toinPlatform Success andGrowth business growin fee-based the Strategies mix Current Strong businesses Environment risk management Continue to grow low-cost deposit franchise Generate value-added loans Improve asset yields Make operating efficiency a core co

  20. Slide 20: An Opportunity to Increase Retained Securities Portfolio Yield

    An of Retained As Weighted-average Increasing Yield 2Q05 PNC BK STI WB USB FITB NCC KEY WFC BBT Source: Opportunity 4.12 4.33 5.03 4.13 4.24 4.61 4.58 5.11 on 4.42 5.68 June 2Q04 SNL 3.32 Securities 3.62 Portfolio 4.61 4.04 % 4.27 4.42 4.88 Yields 4.17 5.54 30, Change 3.33 DataSource +80bp +71bp +42

  21. Slide 21: Consolidated Net Interest Income Trends

    Consolidated $ 2002 $450 $470 $490 $510 $530 $550 $570 $590 $610 Net millions Interest interest 2003 2004 income Income Net2005 Interest on Trends a taxable-equivalent Income Improving (Taxable Equivalent basis is reconciled Basis) to GAAP net interest income in Appendix

  22. Slide 22: Keys to Success in the Current Environment

    Keys A Diversified Executable Invest Continue Generate Improve Make Solid to operating inPlatform Success asset and value-added toGrowth business grow grow yields efficiency inlow-cost fee-based the Strategies mix loans Current Strong adeposit core businesses Environment risk competency franchise ma

  23. Slide 23: One PNC: Building a Simplified Structure and Move Closer to Customer

    One PNC Building Move Goals Expected Simplified enhancements closer aResults –More business toand customer Competitive growth structure Become initiatives Eliminate Company more Severance efficient 3,000 positions and Target related resources or 13% charges ofto total up moreto positions $85 value-a

  24. Slide 24: One PNC Implementation Sampling

    One PNC Implementation Sampling Expense Extend Charge Pricing Correspondent Growth PC international Reduction of –leases 2,400 banking Has 40-hour approved Begun debit Residential workweek card ideas transaction mortgage Consolidate feejoint Charge Hilliard-Lyons venture ATMwith statement Wells head

  25. Slide 25: Summary: Already Positioned

    Alreadyoverall Summary Positioned Expect accomplished to generate revenuepositive agrowth great deal trends operating in 2005 to continue leverageOne PNC initiative to drive efficiency improvements

  26. Slide 26: © PNC

    © PNC

  27. Slide 27: Appendix

    Appendix

  28. Slide 28: Cautionary Statement Regarding Forward-Looking Information

    Cautionary We or “believe,” Forward-looking assume statements, In SEC’s which economic supply, letters income; balance recent regulators’ of matters theaffecting addition any impact introduction, make regulatory of could website such or as any sheet (f) credit; statements or otherwise “expect,” busi

  29. Slide 29: Cautionary Statement Regarding Forward-Looking Information

    Cautionary practices; credit how policies; the Our savings inaccurate accomplished Furthermore, successful In goals. acquisition integration regulated addition, impact ability impact, timing extent future we losses; and choose the financial of to and in results on of transactions extent Statement we

  30. Slide 30: Cautionary Statement Regarding Forward-Looking Information (continued)

    Cautionary issues. additional closing You performance Also, discussed Any earnings estimates) can annualized, risks Regulatory risks find estimates in future are and Statement more and in additional theirs uncertainties the proforma, costs uncertainties detail and/or are reports alone, Regarding cal

  31. Slide 31: Non-GAAP Business Earnings Reconcilement

    Non-GAAP Business Appendix For $ Banking Regional Wholesale PNC Asset BlackRock PFPC Minority Other Total * millions Percentages the Advisors banking asset business consolidated management (46) 47six businesses interest Earnings 33 Community 2005 6Banking management months 100 to 34% businesses for

  32. Slide 32: Non-GAAP Noninterest Income to Consolidated Total Revenue

    Non-GAAP Appendix $ Three Noninterest BlackRock PFPC Banking Other 29.8% Total *Sum millions consolidated (21) Months of 219businesses net 15.0 (1.5) $271 Income to interest Ended GAAP 18.6% $925 456 to Consolidated income 6/30/05 Reconcilement Total $1,459 31.3Revenue* and63.4% noninterest Total Re

  33. Slide 33: Non-GAAP Adjusted BlackRock Earnings to GAAP Reconcilement

    Non-GAAPAdjusted BlackRock Appendix to GAAPEarnings Reconcilement $ millions

  34. Slide 34: Non-GAAP Net Interest Income Taxable-Equivalent Reconcilement

    Non-GAAP Appendix $ 1Q03 1Q04 Taxable-equivalent Net millions Interest interest 2Q031Q02 2Q05 income, Income 3Q03 2Q04 to GAAP 2Q02 4Q03 3Q04 adjustment GAAP taxable-equivalent Reconcilement 3Q02 4Q04 basis 4Q02 1Q05 34 3$494 2$590 $503 46 2 7 3 6$481 $555 $521 basis 7 $491 $528 $487 $593 $503 $506

  35. Slide 35: PNC Super-Regional Peer Group

    PeerPNC Super-Regional Appendix BB&T Fifth KeyCorp The SunTrust U.S. Wachovia Wells Marshall National Regions Moody’s Bank Groups Bancorp Third Fargo Corporation Financial City Ticker & peer Banks, KEY Financial of Corporation Bancorp Ilsley & New Corporation USB group Company Banks Inc. Corporation

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