Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Citigroup 2012 Financial Services Conference
21 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Mar 8, 2012
Slide 1: The PNC Financial Services Group, Inc. Citigroup 2012 Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Citigroup 2012 Financial Services Conference March 8, 2012
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information This 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 the information made av
Slide 3: Evolving Environment Presents Challenges and Opportunities
Evolving Environment Presents Challenges and Opportunities Industry impact PNC’s position Business model challenges Capture relationship market share Improving commercial loan growth Invest in products, people and services Tepid U.S. Economic Consumer deleveraging Expansion in attractive growth mark
Slide 4: Investing for Future Growth
Investing for Future Growth TM PNC Wealth Insight SM Planned 2012 investments Expand sales capacity by 16% across targeted growth markets, businesses Revenue and new product initiatives Generating Nearly $130 million capital expenditures on approximately 60 new branches Product and Over $400 million
Slide 5: A Strong Retail Franchise - Adapting to a Challenging Environment
A Strong Retail Franchise - Adapting to a Challenging Environment Franchise positioning Strategic priorities Our footprint covers nearly half of the U.S. Grow checking relationships population Increase share of wallet 1 Ranked #6 in U.S. deposits Lower cost to serve Serving nearly six million househ
Slide 6: Customer Growth Provides Sustainable Revenue Opportunity – Retail Banking
Customer Growth Provides Sustainable Revenue Opportunity – Retail Banking New consumer household Customer growth New originations cross-sell penetration 3 1 Free checking Checking relationship growth 2 Relationship checking 44% +296 70% 34% Goal 59% +75 31% 2010 2011 4Q10 4Q11 2010 2011 (1) Checking
Slide 7: Serving Customers Tomorrow – Retail Banking
Serving Customers Tomorrow – Retail Banking Goals Preserve our customer-centric service model while we evolve to a lower cost structure Use our differentiated Customer Interaction Management capability to deliver greater value Lower cost to serve by migrating certain customer transactions toward low
Slide 8: Corporate & Institutional Banking – A "Through-the-Cycle" Relationship Bank
Corporate & Institutional Banking – A “Through-the-Cycle” Relationship Bank Franchise positioning Multi-product and financing capabilities offered nationally 1 A leading middle market loan syndicator New presence in attractive Southeast markets Strategic priorities Capitalize on market dislocation t
Slide 9: Customer Growth Provides Sustainable Revenue Opportunity – Corporate & Institutional Banking
Customer Growth Provides Sustainable Revenue Opportunity – Corporate & Institutional Banking Average quarterly loan growth Customer growth Cross-sell opportunities of select C&IB segments Corporate Banking new Average revenue per new 1 primary clients Corporate Banking primary clients $250 1,165 6.1
Slide 10: Asset Management Group – Capturing Greater Market Share
Asset Management Group – Capturing Greater Market Share Franchise positioning Top 10 bank-held wealth manager in the U.S. 1 2 Hawthorn - Top 10 ultra-affluent provider in the U.S. 3 Over $240 billion in investable assets Over 3,100 employees 4 with a broad market presence in 70 cities Open architect
Slide 11: Customer Growth Provides Sustainable Revenue Opportunity – Asset Management Group
Customer Growth Provides Sustainable Revenue Opportunity – Asset Management Group Strong referral channel driving higher sales Discretionary AUM net flows 2 Total sales $0.8 +36% -$1.7 Capturing referral +52% Non-core 3 activity channel sales¹ 2010 vs. 2011 -$0.6 2010 vs. 2011 2010 2011 (1) Referral
Slide 12: Capturing the Wealth Opportunity
Capturing the Wealth Opportunity Mass Market Affluent High Net Worth Client - < $100K $100K - $1 MM > $1 MM Focused (4 MM) (1.6 MM) (.4 MM) Differentiated Multi-Channel Approach Call center Internet Branch Call center Internet Salesforce Branch Call center Internet Focused on growth in the mass mark
Slide 13: Continuous Improvement – Expense Efficiencies
Continuous Improvement – Expense Efficiencies Provide Capacity to Invest 1 Noninterest expense outlook 4 $9.2 -$9.3 2 $.6 ($.4) $.3-$.4 $8.7 RBC Bank (USA) Efficiency Mid-single expense gains Customer 3 enhancements digit % (net of cost saves) growth Product estimate innovation 2011 RBC Expenses Con
Slide 14: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Tier 1 common ratio Highlights 8.0% - 8.5% 1 Target Basel III Tier 1 common ratio to reach 1 between 8.0-8.5% during 2013 Capital priorities: – Build capital to support client growth and business investment – Maintain appropriate capital in light of economic unc
Slide 15: Outlook – Full Year 2012 vs. 2011
1 Outlook – Full Year 2012 vs. 2011 PNC stand-alone positioned for strong results in 2012 RBC Bank (USA) acquisition expected to be accretive in 2012, excluding integration costs 3 Estimated % Change 2 Combined Loans Increase mid to high teens Balance sheet Total revenue Increase mid to high single
Slide 16: 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 17: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opport
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • In addition to the RBC Bank (USA) transaction, we grow our business in part by acquiring from time to time other financial services companies, financial services assets and related deposits and other liabilities. These
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Retail Banking results for the year ended $ in millions Dec. 31, 2008 (1) Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Net interest income, as reported $1,594 $3,522 $3,435 $3,280 Proforma adjustments: National City 1,907 - - - Adjusted proforma net interest inco
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Retail Banking results for the year ended $ in millions Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Net interest income, as adjusted proforma for 2008 and as reported for 2009-2011 $3,501 $3,522 $3,435 $3,280 2008 interest rate adjustment: Differen
Slide 21: Peer Group of Banks
Peer Group of Banks Appendix Ticker 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,
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