Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Sandler O'Neill & Partners 2004 West Coast Financial Services Conference
29 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Mar 10, 2004
Slide 1: The PNC Financial Services Group, Inc.
EXHIBIT 99.1 The PNC Financial Services Group, Inc. Sandler O’Neill & Partners, L.P. 2004 West Coast Financial Services Conference Carlsbad, CA March 10, 2004
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements with respect to PNC’s outlook or expectations relating to its future business, operations, financial condition, financial performance and asset quality. Forward-looking statements are nec
Slide 3: Key Messages
Key Messages PNC has Strong platform for growth Differentiated business mix that can deliver growth Clear and executable plans to achieve growth
Slide 4: Strong Platform for Growth
Strong Platform for Growth Solid financial position Enhanced risk management and corporate governance Premier technology platform Outstanding team and culture Clear strategic direction
Slide 5: Key Messages
Key Messages PNC has Strong platform for growth Differentiated business mix that can deliver growth Clear and executable plans to achieve growth
Slide 6: PNC's Valuable Business Mix
PNC’s Valuable Business Mix Business Earnings Contribution Regional Community A leading community bank in Banking all major markets served PNC Top 10 treasury management Banking 82% Wholesale Banking business Businesses Top 5 asset-based lender PNC Advisors One of the nation’s largest bank wealth ma
Slide 7: PNC's Business Synergies
PNC’s Business Synergies PFPC refers clients to Wholesale Banking for financing needs PFPC is one of Treasury Management’s largest clients Bank provides check processing and clearing for PFPC BlackRock manages trading desk, performs research and provides investment advice for PNC Advisors BlackRock
Slide 8: A Differentiated Franchise
A Differentiated Franchise A Core Funded Bank… That’s Fee Driven… Generating High Returns Return on Noninterest Income Average Common Loans to Deposits to Total Revenue Shareholders’ Equity BK 63% BK 71% NCC 23.6% WB 75% PNC 62% FITB 20.4% PNC 75% ONE 49% WFC 19.4% ONE 77% WB 46% USB 19.3% FITB 92%
Slide 9: Premier Technology Platform
Premier Technology Platform Driving Growth and Efficiencies Web-enabled branches Leading call center Positioned for Check 21 Treasury Management A/R Advantage product PFPC global enterprise platform BlackRock Solutions #1 Bank #19 Overall Rank 19 The PNC Financial Services Group, Inc. 38 Mellon Fina
Slide 10: Key Messages
Key Messages PNC has Strong platform for growth Differentiated business mix that can deliver growth Clear and executable plans to achieve growth
Slide 11: Our Growth Goals
Our Growth Goals Three to Five Year Horizon Annualized Earnings Growth Banking businesses 5—7% Asset management and processing 15—20% Capital management 1—3% Consolidated PNC 10—12%
Slide 12: Focus on Customer Acquisition
Focus on Customer Acquisition Regional Community Banking Growth Strategies Create an exceptional customer experience Competitive and attractive product offerings Advertising positions PNC as the “bank of choice” for checking Targeted channels that leverage our business mix Checking Relationships Acq
Slide 13: Keeping More Customers
Keeping More Customers Regional Community Banking Retention Initiatives Have Produced Impressive Results DDA Households—Retention
Slide 14: Selling More to Customers
Selling More to Customers Regional Community Banking Proven Success in Growing Valuable Customer Base Checking Relationships Provides Opportunities for Growth and Improved Retention Growth ATM / debit card fees +9% Home equity loans +17% Online banking users +26% Growth is for the twelve months ende
Slide 15: Building a More Successful Model
Building a More Successful Model Wholesale Banking Growth Strategies Improve customer acquisition, retention and penetration Continue transition to customer-focused approach Enhance our best-in-class risk management Align revenue and expense relationship Profile of New Corporate Banking Clients with
Slide 16: Selling More Fee-Based Products
Selling More Fee-Based Products Wholesale Banking Highlights Significant Treasury Management client wins #1 in number of loan syndications for middle market in the Northeast in 2003 Commercial real estate finance industry leader Noninterest Income $ millions $140 $135 $130 $125 $120 $115 $110 $105 $
Slide 17: PNC Advisors – Repositioning the Franchise
PNC Advisors – Repositioning the Franchise Growth Strategies Significantly improve sales results Enhance client experience Implement best practices around sales, service and client relationships Leverage United National customer base Capitalize on cross-sell opportunities
Slide 18: PFPC – A Leading Global Provider of Fund Services
PFPC – A Leading Global Provider of Fund Services Growth Strategies Enhance client retention and penetration Leverage outsourcing trends Continue global expansion Improve efficiency Strengthen product development and technology Assets Serviced Reduced workforce by 1,300 people since 2002 Custody Acc
Slide 19: BlackRock – A World Class Asset Manager
BlackRock—A World Class Asset Manager Growth Strategies Client-driven consolidation of fixed income asset managers BlackRock Solutions Leverage unified operating platform International expansion Assets Under Management Fixed income Liquidity Equity Alternative investment products
Slide 20: PNC Valuation Opportunity
PNC Valuation Opportunity 2004 Actual / Implied First Call Estimated Market Earnings Capitalization 2004 $ millions $ billions P/E PNC $ 1,145 $ 16 14x BlackRock $ 188 $ 4 21x PNC excluding BlackRock * $ 1,013 $ 13 13x KBW Bank Index Average 15x First Call estimated earnings for PNC and BlackRock ba
Slide 21: Key Messages
Key Messages PNC has Strong platform for growth Differentiated business mix that can deliver growth Clear and executable plans to achieve growth
Slide 22: Every day is an opportunity to do more
© PNC Every day is an opportunity to do more:
Slide 23: Appendix
Appendix
Slide 24: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This Report contains, and other statements that the Corporation may make may contain, forward-looking statements with respect to the Corporation’s outlook or expectations for earnings, revenues, expenses, capital levels, asset quality or oth
Slide 25: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) (5) customer acceptance of PNC’s products and services and their borrowing, repayment, investment and deposit practices; (6) the impact of changes in the extent of customer or counterparty delinquencies, bankruptcies or defaults
Slide 26: Non-GAAP to GAAP Reconcilement: Business Earnings
Non-GAAP to GAAP Reconcilement Appendix Business Earnings Year Ended 12/31/03 $ millions Business Earnings Earnings (Loss) Contribution Banking businesses Regional Community Banking $ 608 51% Wholesale Banking 306 25% PNC Advisors 72 6% Total banking businesses 986 82% Asset management and processin
Slide 27: Non-GAAP to GAAP Reconcilement: Return on Equity
Non-GAAP to GAAP Reconcilement Appendix PNC Return on Average Common Shareholders’ Equity Year Ended 12/31/03 Return on average common shareholders’ equity, reported (GAAP basis) 15.06% Adjustment for DOJ-related expenses 1.31% Adjustment for cumulative effect of accounting change 0.42% Return on av
Slide 28: Non-GAAP to GAAP Reconcilement: Wholesale Banking Noninterest Income
Non-GAAP to GAAP Reconcilement Appendix Wholesale Banking Noninterest Income Three Months Ended $ millions 12/30/02 3/31/03 6/30/03 9/30/03 12/31/03 Wholesale Banking noninterest income $164 $153 $134 $155 $162 Less: Net securities gains - 23 2 - - Held for sale gains, net of valuation adjustments 5
Slide 29: Peer Group of Super-Regional Banks
Peer Group of Super- Regional Banks Appendix Ticker The Bank of New York Company, Inc. BK Bank One Corporation ONE Fifth Third Bancorp FITB FleetBoston Financial Corporation FBF KeyCorp KEY National City Corporation NCC The PNC Financial Services Group, Inc. PNC SunTrust Banks, Inc. STI U.S. Bancorp