Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q4 2011 Earnings Presentation
22 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 18, 2012
Slide 1: Fourth Quarter and Full Year 2011 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Fourth Quarter and Full Year 2011 Earnings Conference Call January 18, 2012
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information 2
Slide 3: Today's Discussion
Today’s Discussion Significant 2011 achievements and financial highlights Strong growth in customers, loans and deposits Delivered strong returns Positioned to achieve strong results in 2012 PNC Continues to Build a Great Company. 3
Slide 4: Significant 2011 Achievements
Significant 2011 Achievements 2011 highlights Delivered good financial results through exceptional client growth across businesses and markets Grew commercial loans Maintained a high quality balance sheet that reflected an overall moderate risk profile Managed expenses while investing for growth in
Slide 5: Focused on Growing Client Relationships
Focused on Growing Client Relationships Retail Banking Corporate & Institutional Banking Asset Management Group 1 Checking relationship growth Corporate 3 Banking new primary Discretionary AUM Total 4 + 296 clients Net Flows $0.8 1,165 1,012 + 75 -$2.3 FY10 FY11 FY10 FY11 FY10 FY11 5 2011 total grow
Slide 6: Delivering Long-Term Shareholder Value
Delivering Long-Term Shareholder Value Pretax pre-provision earnings per share¹ Tangible book value per share³ PNC % change 2007-2011² PNC % change 2007-2011² $9.91 PNC 40% PNC 152% $44.38 Peer 1 23% Peer 1 72% Peer 2 17% Peer 2 71% Peer 3 13% Peer 3 48% $7.06 Peer 4 11% Peer 4 36% -8% Peer 5 Peer 5
Slide 7: 2011 Risk Management Progress
2011 Risk Management Progress Credit, Market and Operational risk – Credit costs significantly improved – Continued to position balance sheet for rising interest rates – Repositioned retail deposit products and reduced higher cost retail CDs – Added new clients and loans at lower risk weighting – Co
Slide 8: Financial Performance – Fourth Quarter Highlights
Financial Performance – Fourth Quarter Highlights Continued focus on high quality loan growth Delivered strong revenue performance – NII growth driven by increase in core net interest income – Noninterest income grew excluding the impact of regulatory changes¹ Overall improved credit quality resulte
Slide 9: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Change from: 4Q11 highlights Category (billions) Dec. 31, Sep. 30, Dec. 31, 2011 2011 2010 Total investment securities $60.6 $(1.5) $(3.6) Loans increased $4.5 billion or Core commercial loans¹ 86.7 3.6 9.6 3% linked-quarter driven by commercial and con
Slide 10: Credit Trends Continue to Improve
Credit Trends Continue to Improve 2,3 Criticized commercial loans Accruing loans past due Criticized Commercial loans¹ 30-89 Days 90 Days + $1.8 $1.9 $1.6 $1.6 $13.7 $1.5 $12.7 $11.7 $10.8 $9.9 $3.0 $2.7 $2.6 $2.6 $2.8 4Q10 1Q11 2Q11 3Q11 4Q11 4Q10 1Q11 2Q11 3Q11 4Q11 Nonperforming loans 2,5 Provisi
Slide 11: Improving Net Interest Income and Provision Trends
Improving Net Interest Income and Provision Trends Highlights Quarterly: Total NII improved from 3Q11 due 1 to growth in core NII , partially offset by lower purchase accounting accretion Provision declined as overall credit quality continued to improve Full Year 2011: 3 Provision-adjusted NII incre
Slide 12: Client Growth and Sales Momentum Provide Opportunities to Increase Noninterest Revenue
Client Growth and Sales Momentum Provide Opportunities to Increase Noninterest Revenue (millions) 4Q11 3Q11 FY11 FY10 4Q11 highlights 1 Asset management $250 $287 $1,088 $1,054 Quarterly: Asset management declined Consumer services 269 330 1,243 1,261 partially due to a third quarter 2 non-cash tax
Slide 13: Well–Managed Expenses While Investing for Growth
Well–Managed Expenses While Investing for Growth (millions) 4Q11 3Q11 FY11 FY10 Highlights Personnel $1,052 $949 $3,966 $3,906 Quarterly: Personnel increased primarily due to higher Occupancy 198 171 738 730 personnel expenses largely driven by higher stock market prices and higher business Equipmen
Slide 14: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Tier 1 common ratio Highlights Proforma Basel III Tier 1 common ratio estimated 1 to be between 8.0-8.5% during 2013 – Possible improvement assuming final capital requirements reflect the inherent risk profile in our sub-investment grade securities Capital prior
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) pending 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
Slide 16: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix 16
Slide 17: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix 17
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix 18
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended In millions Dec. 31, 2007 Dec. 31, 2011 % Change Total revenue $6,705 $14,326 Noninterest expense 4,296 9,105 Pretax pre-provision earnings $2,409 $5,221 Common shares outstanding 341 527 Pretax pre-provision earnings per share $7.06 $9.91 4
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended Year over year $ in millions Dec. 31, 2011 Sept. 30, 2011 June 30, 2011 Mar. 31, 2011 Dec. 31, 2010 % Change Accruing loans past due, 30-89 days $1,565 $1,551 $1,498 $1,868 $1,817 Accruing loans past due, 90+ days 2,973 2,768 2,646 2
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the quarter ended For the year ended 2011 vs. 2010 In millions Dec. 31, 2011 Sept. 30, 2011 Dec. 31, 2011 Dec. 31, 2010 % Change Total noninterest income, as reported $1,350 $1,369 $5,626 $5,946 -5% Adjustments for negative impact of regulatory changes: Re
Slide 22: 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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