Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays Global Investor Conference 2016
20 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Sep 14, 2016
Slide 1: Barclays Global Investor Conference
Exhibit 99.1 Barclays Global Investor Conference September 14, 2016 The PNC Financial Services Group (>) PNC
Slide 2: Cautionary Statement Regarding Forward-Looking and Adjusted Information
Cautionary Statement Regarding Forward-Looking and @Pnc Adjusted Information This presentation is not intended as a full business or financial review and should be viewed in the context of all of the Le by PNC in its SEC di outlook for earrings, revenues, expenses capi ond Uquity vols end ratios, se
Slide 3: Navigating the Current Environment
Navigating the Current Environment @®PNC PNC is poised to succeed independent of rates = We are focused on our strategic priorities to drive higher fee income, control expenses and create long-term value = PNC has additional levers to create positive operating leverage absent rate increases — Digiti
Slide 4: Strong Fee Income
Strong Fee Income @®PNC Diverse sources of fee income differentiate PNC * Drivers of fee income — Corporate Services: Treasury Management - 10% of total revenue in 1H16; grew 17% in 1H16 over 1H1 — Consumer Services: Retail payments - debit card, credit card and merchant services fees grew 9% in 1H1
Slide 5: Well-Controlled Expenses
Well-Controlled Expenses ®PNC Three years of reduced expenses = PNC has reduced annual expenses by more than $1 billion over the last three years = Culture of continuous improvement to identify significant expense reductions — Completed actions to capture more than two-thirds of the 2016 continuous
Slide 6: Investing in Technology and Infrastructure
Investing in Technology and Infrastructure @PNC Strengthening technology backbone to enhance efficiency and ability to grow Five-year program to build key foundational capabilities of speed, security and stability Infrastructure and application modernization, cyber enhancements, employee enablement
Slide 7: Technology Enhancements Allow for Digitization
Technology Enhancements Allow for Digitization Digital experience is core to our retail business model Protect and Grow Payments PRET ene ae * PNC Mobile Wallet Distinctive Financial ™ Apple, Android, Samsung, Protect Our ; Tools by Segment Microsoft Pay Customers / Security * Virtual Wallet* * EWS
Slide 8: Retail Distribution Network Transformation
Retail Distribution Network Transformation Improving operating efficiency and increasing sales @PnNc Transaction | Universal L Branch Business Banking Migration Branches Consolidations Operating Model + 48% of total deposit = 18% of network under 1a13 - 2016: + Implemented new transactions via ATM a
Slide 9: Delivery Generating Consumer Revenue Growth Opportunities
Delivery Generating Consumer Revenue Growth Opportunities New product and service to drive fee income @PnNc Multi-ch. I r Setting 30% of appointment offers are accepted and 65% of accepted appointments result ina sale Focused on consumer, business banking and asset management clients Getting Paid fo
Slide 10: Opportunity to Accelerate Lending
Opportunity to Accelerate Lending ®PNC PNC’s loan portfolio - growth driven by commercial loans * Commercial loan growth has been strong through our relationship-based lending approach Consumer loan growth has been challenged by runoff and execution . There is opportunity to grow risk adjusted retur
Slide 11: Accelerate Consumer Loan Growth
Accelerate Consumer Loan Growth Loan growth opportunity through improved execution @PnNc Consumer loans are a smaller portion of our portfolio compared to our peers, impacting our loan yiel . Loss experience has been better than our peers . Change the trajectory of consumer lending through product c
Slide 12: Initiatives to Drive Growth in Consumer Lending
Initiatives to Drive Growth in Consumer Lending Enhance customer acquisition, distribution and product capabilities @PnNc Credit Card billion portfolio at 6/30/16 = Deepen Benetistion of existing custom: — PNC 25% household porate vs. 35-40% industry * Engage customers with tailored product offering
Slide 13: Corporate Banking Market Expansion
Corporate B g Market E i @®PNC Moving into new markets to complement national C&IB businesses Pursuing multi-year expansion of our Middle Market and Corporate Finance businesses — Under penetrated in 15 of the top 25 U.S. metropolitan markets — Proven success in growing national C&IB businesses in g
Slide 14: Home Lending Transformation
Home Lending Transformation Integrating residential mortgage and home equity Current State: Home Equity and Mortgage Infrastructure Drivers of Efficiency & Growth @PNC Expected Results = Sales Channel — 2,000 employees Shift to lower cost channels Revenue enhancement and cost reduction — $510 millio
Slide 15: Opportunity for Positive Operating Leverage Absent Rate Rise
Opportunity for Positive Operating Leverage Absent Rate Rise (PNC Focused on growth and efficiencies = Continuing to focus on what is within our power to control = Executing on our strategic priorities = Applying levers to maintain expenses and generate revenue — Digitize customer acquisition, fulfi
Slide 16: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNC piidetltcall financial review. It Thould not be viewed in colaion but rather in the content of la the information made avatable by PNC in its SEC flings ents, regarding our outlook for earnings, revenues, stal expenses, capital and ti Tow
Slide 17: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNC Information Our forward-looking financial statements are subject to the risk that economic and financial marke di ill the latter half of 2016, prices, 7 id bond yield: will is year do not, unl |, take into account the impact of potential
Slide 18: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNC Information — Results gt id process, 9 governmental agencies. iene of our intellectual property protection in general. - Bi fected by out -nt in our businesses, including, a seers ‘wo niches ey notte party insurance, derivatives, ae manag
Slide 19: Appendix: Fee Income
Appendix: Fee Income Fee Income For the six For the Year Ended months ended I$ millions 2012 2013, 2015 _June 30, 2016] Asset management $1,169 $1,342 $1,513 «$1,567 $718 Consumer services 1,136 1,253 1,254 1,335 ot Corporate services 1,166 1,210 1,415 1,491 728 Residential mortgage 284 871 618 566
Slide 20: Appendix: Peer Group of Banks
Appendix: Peer Group of Banks @PNC The PNC Financial Services Group, Inc. PNC BB&T Corporation BBT Bank of America Corporation BAC Capital One Financial, Inc. COF Fifth Third Bancorp FITB JPMorgan Chase & Co JPM KeyCorp KEY M&qT Bank Corporation MTB Regions Financial Corporation RF SunTrust Banks, I
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