Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays Global Financial Services Conference 2012
21 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Sep 10, 2012
Slide 1: The PNC Financial Services Group, Inc. Barclays Global Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Barclays Global Financial Services Conference September 10, 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: Navigating The Current Environment
Navigating The Current Environment Industry challenges Regulatory Global Mortgage- Revenue change economy related issues growth PNC’s priorities Grow customers and Control costs while Manage risks and quality revenues investing for growth capital DRAFT 3
Slide 4: Launching New Products That Enhance Customer Experience
Launching New Products That Enhance Customer Experience Driven by product innovation Future service delivery model SM Investing in technology across all customer segments Product innovation driving customer growth PNC’s customer service differentiation: – Information organized based on how customers
Slide 5: Growing Customers – Long-Term Revenue Potential
Growing Customers – Long-Term Revenue Potential Retail Banking Corporate & Institutional Banking Asset Management Group 1 3 Total checking relationships Corporate Banking new New primary clients primary clients 2 1,165 866 6.3 1,012 5.6 696 5.4 467 492 2Q10 2Q11 2Q12 FY10 FY11 1H12 1H10 1H11 1H12 (a
Slide 6: Our Sales Momentum is Strong
Our Sales Momentum is Strong Total Corporate Banking and AMG sales Total Corporate Banking and AMG cross-sell 3-year CAGR 3-year CAGR $600 Northeast 5% $300 Northeast 2% Midwest 17% Midwest 20% $500 $250 $400 $200 $300 $150 $200 $100 $100 $50 $0 $0 2009 2010 2011 2012 1 2009 2010 2011 2012 1 Actual
Slide 7: Expanding the Successful PNC Model in Underpenetrated Markets
Expanding the Successful PNC Model in Underpenetrated Markets Total Corporate Banking and AMG sales Corporate Banking cross-sell sales by type Philadelphia 1 1 Chicago 1 1 RBC markets 22 Philadelphia 33 Chicago 3 3 RBC markets 22 $121 $105 29% $xx 57% 51% $65 $40 $42 71% 43% 49% 2010 2012 5 2010 201
Slide 8: Key Retail Revenue Strategies
Key Retail Revenue Strategies Overall revenue strategies Grow select customer segments Broaden revenue opportunities by expanding our share of customers’ wallets Rethink our delivery network by creating a customer experience that improves customer loyalty and our business margins Traditional branch
Slide 9: Improving Customer Experience, Loyalty and Margins
Improving Customer Experience, Loyalty and Margins PNC’s customers changing preferences ATM channel migration strategy Transaction behavior mix 1 Traditional Branch 12 Teller ATM 20% Virtual 21% 10 Multi- High online 8 channel 13% 46% 6 40% potential Cost per transaction 4 20% Consumer 2 potential C
Slide 10: Revenue Potential Should Exceed Decline in Purchase Accounting Accretion
Revenue Potential Should Exceed Decline in Purchase Accounting Accretion 1 2013 highlights Purchase accounting accretion decline Total revenue in 2013 expected $500 Expected year over year decline in to increase when compared to purchase accounting accretion 2012 $400 $400 2 Core NII and noninterest
Slide 11: Disciplined Expense Management While Investing For Growth
Disciplined Expense Management While Investing For Growth Noninterest expense overview Highlights Components of 1H11 1H12 1 Continuous improvement: Noninterest Expense 1 Legal/mortgage 2% 6% foreclosure-related/ 2012 continuous $5.1 OREO costs³ improvement initiatives Integration costs 0% 4% target
Slide 12: Effectively Managing Credit Risk
Effectively Managing Credit Risk 2Q12 credit risk metrics Strong credit performance 1 2 Net charge-offs Nonperforming assets to to average loans total assets 2.09% 1.39% 1.03% 0.71% PNC Peers PNC Peers 2 3 Nonperforming loans to Loan loss reserves to total loans total loans 3.26% 3.06% 4 2.26% 1.92%
Slide 13: Reserves for Residential Mortgage Repurchase Demands Reflect Expected Lifetime Losses
1 Reserves for Residential Mortgage Repurchase Demands Reflect Expected Lifetime Losses Reserves to outstanding demands 2 Highlights USB 132% Elevated levels of residential mortgage WFC 100 repurchase demands and the change in JPM 94 behaviors of the GSE’s are issues impacting PNC 92 the entire indu
Slide 14: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Basel III Tier 1 common ratio 2Q12 highlights Basel I Tier 1 common ratio of 9.3% at June 8.0% - 8.5% 30, 2012 Capital priorities: – Build capital to support client growth and 7.0% business investment 6.4% – Maintain appropriate capital in light of 5.8% economic
Slide 15: Executing Our Business Model has Delivered Value
Executing Our Business Model has Delivered Value 1 PNC’s successful business model Tangible book value per share Annualized dividend yield 2 Staying core funded and % change 12/31/2007 to 6/30/2012 As of 8/31/2012 disciplined in our deposit pricing PNC PNC 157% MTB 3.2% Committed to our WFC 112% JPM
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 As of In millions except per share data Dec. 31, 2007 Jun. 30, 2012 % Change Common shareholders' equity $14,847 $33,884 Common shares outstanding 341 529 Book value per common share $43.60 $64.00 47% Goodwill and other intangible assets other than servicing r
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the six months ended In millions Jun. 30, 2012 Jun. 30, 2011 Legal/regulatory/OREO costs 283 74 Integration costs 197 6 TPS redemption-related charges 130 - RBC Bank (USA) operating costs 189 - All other 4,304 4,166 Total noninterest expense $5,103 $4,246
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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