Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — BancAnalysts Association of Boston Conference 2017
24 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Nov 2, 2017
Slide 1: BancAnalysts Association of Boston Conference
Exhibit 99-1 BancAnalysts Association of Boston Conference November 2, 2017 The PNC Financial Services Group
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and @®PNC Non-GAAP Financial Information This 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 corporate website. presen
Slide 3: Executing Strategic Priorities
Executing Strategic Priorities @®PNC Designed to create value = We are focused on our strategic priorities to drive higher fee income, control expenses and create long-term value ) Building a Leading Banking Franchise in Our Underpenetrated Markets ) Capturing More Investable Assets | ) Bolstering C
Slide 4: Highlights for YTD 3Q17
Highlights for YTD 3017 @®PNC Net Income = Delivered high quality results $3 3 billion = Compared with the same perioda year ago: Net Interest Income — Grew net interest income $6 8 billion — Grew fee income Noninterest Income — Controlled expenses $5 3 billion — Grew loans and deposits Return on Av
Slide 5: Outlook: Fourth Quarter 2017 Compared to Third Quarter 2017
Outlook: Fourth Quarter 2017 Compared to Third Quarter 2017. @PNC Balance Loans Up modestly Sheet Net interest income Up low-single digits Fee income Up low-single digits Income Other noninterest income $250 - $300 million Statement Noninterest expense Up low-single digits Loan loss provision $100 -
Slide 6: Karen Larrimer
Karen Larrimer EVP, Head of Retail Banking & Chief Customer Officer The PNC Financial Services Group
Slide 7: PNC Retail Banking
PNC Retail Banking @®PNC = A strong retail banking franchise in attractive markets — Diverse revenue streams — Core funded with relationship-based deposits Focused on creating the easiest way to bank and invest = Building a customer focused omni-channel presence — Optimizing the branch network — Lea
Slide 8: Retail Banking: Strong Franchise in Attractive Markets
Retail Banking: Strong Franchise in Attractive Markets Serving > 8 million C 's and Small United States Footprint agement and Corporate & titutional Management and Corporate & Institution, des ba fl Represents three month avera tumer che ckingrela ial — full service franchise @PnNc Retail Bank Em a0
Slide 9: Retail Banking Financial Snapshot
Retail Banking Financial Snapshot PNC Consolidated Revenue YTD 3017, $12 billion Retail Banking $5.3 @PNc Retail Banking Segment $ billions Nine months ended 9/30/17 Net Interest Income $3.4 Noninterest Income 19 Total Revenue $5.3 Hine months ended 9/30/17 Average Loans $72.4 Average Deposits $159.
Slide 10: Strong Deposit Growth
Strong Deposit Growth Driven by Stable Relationship Balances Non-Maturing, Interest-Bearing Deposi its Trends arter Retail Banking interest-b yearing demand, money market (MMDA) and savings deposit @PnNc Deposit Pricing Approach
Slide 11: PNC's Retail Banking Strategy
PNC’s Retail Banking Strategy IssueFree Banking Fastest and Fewest Steps PNC Employees Enabled to Make it Easy Seamless Experience Across Channels Foundation - Managin:
Slide 12: Employees Enabled
Employees Enabled @®PNC Investing in Wages, Tools, and Technology ] l {to hire and retain the best talent — Increased starting hourly rate = Reduced voluntary turnover rate = Simplifying procedures ed * Implementing new customer relationship management platform with industry leading, cloud-bas solut
Slide 13: Optimizing the Branch Network
Optimizing the Branch Network @PNc Transformation in Support of Transaction Migration * Migration to ATM and mobile pt TM or M a . a ra = ¢ 3 } ) Cost per Interaction by Channel PNC Retail Branch Network 13x 2,881 2.71408 2.6978 9 org 2,474) 1x a Alternative Channe| Branch 2012-2013 2014 «2015-2016»
Slide 14: Customers Driving Disruptive Change
Customers Driving Disruptive Change @®PNC Digital Sales Continue to Grow Digital Engagement Digital Customers Continue to Increase 46% 1 ail : 2012 2013-2014 = YOY - Refers toa year over year comparison of 3016 with3Q17 14 52%
Slide 15: Digital First
Digital First Digital Experience is Core to our Retail Banking Strategy Distinctive Financial Tools by Segment Digital Payments = PNC PaySM * Grow Visa Checkout” @PNc Protect Customers / Security *Zelle” ual Wallet eee a ue = Multi-factor authentication ® Cash Flow Insight™ * Security/privacy dashbo
Slide 16: Digital First: Making it Easy to Transact
Digital First Making it Easy to Transact PNC Mobile PNC Pay™ Redesigned apps Comes with PNC Mobile Express Funds on mobile deposits | = PNC debit, credit, SmartAccess card Shop PNC: apply for Card, Auto = Tap & pay at point of sale Cardless access at ATM One click connect — Products and serv Visa Ch
Slide 17: Digital First: Making it Easy to Service
Digital First @®PNC Making it Easy to Service Protecting Our Customers Self-Service = Multi-factor authentication Scale mobile deposit = Security/ privacy dashboard = PNCHelp Center * Real-time fraud Continue to scale paperless * Fingerprint and facialID New digitalservicing = Open API for data aggr
Slide 18: Digital First: Grow Lending
Digital First @®PNC Grow Lending - Origination, Fulfillment and Product [Credit Card $5.4 billion ] * Expanded thin credit, student offerings = = Customized offers * New Cash Rewards card "13% of sales from digital channels in 3Q17 Unsecured Install $1.1 billion _| ws * Scaled pre-approved offers La
Slide 19: Home Lending Transformation
Home Lending Transformation ®PNC Enhance Customer Acquisition, Distribution and Product Capabilities Drivers of Efficiency & Growth Expected Results Shift to lower cost channels Revenue enhancement and c t reduction Simplify vendor network Enhance customer experience Eliminate redundant functions Op
Slide 20: PNC Retail Banking
PNC Retail Banking @®PNC = A strong retail banking franchise in attractive markets — Diverse revenue streams — Core funded with relationship-based deposits Focused on creating the easiest way to bank and invest = Building a customer focused omni-channel presence — Optimizing the branch network — Lea
Slide 21: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNcC Information Fae rea aise Ta BL Le and is not intended as afull business or financial review. It isolation but rather in the context of all of the infermation made available by PNC in its SEC filings. This pres should not be We also 1m ti
Slide 22: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNcC Information Our forward that econor current view that the US, ‘of 2017 andin 2018, nom it should pick up as the labor under current of future programs, oF iscui other is subject prop by the Federal Reserve Board, depend on, 9! Ip conside
Slide 23: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNcC Information . Soe a ss ys effectively manage risks inherent in our bu ng, ies St vCal Nuria arabes Wesvelvees an le neal ieee. oieaee Business and operating results also include impacts relating to our equity interest in BlackRock, Inc.
Slide 24: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation @®PNC Consolidated Fee Income For the nine months ended $ in millions 3017 3016 Asset management $1,222 $1,122 Consumer services 1,049 1,039 Corporate services 1,198 1,117 Residential mortgage 321 425 Service charges on deposits 512 495 Total fee income $4,3
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