PNC Financial Services Group, Inc. (the) · NYSE:PNC
PNC Financial Services Group, Inc. (the) — Q1 2017 Earnings Presentation
21 slides from PNC Financial Services Group, Inc. (the)'s earnings presentation, Apr 13, 2017
Slide 1: First Quarter 2017 Earnings Conference Call
First Quarter 2017 Earnings Conference Call April 13, 2017 @®PNC
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non- @PNC GAAP Financial Information Our earnings conference call 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 c
Slide 3: First Quarter 2017 Highlights
First Quarter 2017 Highlights "Delivered high quality results — Higher revenues — Loan growth — Well-managed expenses — Stable credit quality — Strong capital return and liquidity position = Continued to execute on our strategic priorities to deliver positive operating leverage and create long-term
Slide 4: Balance Sheet: Grew Loans and Securities
Balance Sheet: Grew Loans and Securities @PNC Change vs. Average balances Sbillions 1017 4016 1916 Highlights Commercial lending $139.8 $12 $53 * Growth in corporate banking & equipment finance businesses 3 * Growth in residential mortgage, auto and credit card, partially siciaaiiilaainals 1 ae ne (
Slide 5: Income Statement: High Quality Results
Income Statement: High Quality Results @PNc Change vs $mitions 1017 4ate 106 Highlights Net interest income $2,160 $30 $62 Growth primarily driven by higher loan and securities yields Fee income $1,402 ($47) $14 Seasonal declines from 4016 Includes a $47 million valuation adjustment associated with
Slide 6: Income Statement: Net Interest Income and Margin Growth
Income Statement: Net Interest Income and Margin Growth Net Interest Income Growth in Niland NIM 2.10% — 9 69% —= 2.69% $2,130 $2,160 $2,068 $2,095 $ millions: 1016 2016 3016 4Q16 1017 M@MENet Interest Income —=NIM @PNc 1017 Highlights Net interest income (NII) grew $30 million over 4016 ~ Growth dr
Slide 7: Income Statement: Noninterest Income Trends
atement: Noninterest Income Trends PNC Noninterest Income Diversified Sources of Fee Income 1017 $ millions $1,726 $1,734 $1,744 $1,724 $1,567 Total $1.4 billion 1016 2016 3016 4Q16 Qi7 Other Noninterest Income Fee Income to.a comparison of linked quarter 1017 with 4016 quarter 1017 with 1016 YOF Re
Slide 8: Income Statement: Stable Expenses
Income Statement: Stable Expenses @PNC Well-Managed Expenses 1017 Highlights Reinvesting for Growth $2,260 $2,396 © $2441 §2,402 "Maintained strong expense discipline while $2,281 7 — Investing in technology and business infrastructure — Transforming the retail banking and home lending experience —
Slide 9: Credit Quality: Stable
Credit Quality: Stable $2,281 @PNc Nonperforming Loans $2,264 $2,146 $2,144 $mil $152 1016 2016 L [ ; i L l 1016-2016 = 316 = 4161017 Provision Net Charge-Offs 3Q16 4016 1017 $19 $154 $136 $118 $106 1016 2016 3Q16 4016 1017 NCO / Average Loans for 1017: 0.23% ~ Annualized net charge-offs (NCO) to av
Slide 10: Outlook: Full Year 2017 Compared to Full Year 2016
Outlook: Full Year 2017 Compared to Full Year 2016 Balance a mer Sheat Loans Up mid-single digits Revenue Growth in the upper end of the Income mid-single digit range Statement Noninterest expense Up low-single digits Refer to Cautionary Statement in the Appendix, including econornic and ather assur
Slide 11: Outlook: Second Quarter 2017 Compared to First Quarter 2017
Outlook: Second Quarter 2017 Compared to First Quarter 2017 Balance Sheat Loans Up modestly Net interest income Up low-single digits Fee income Up mid-single digits Income Statement Noninterest expense Up low-single digits Loan loss provision $75 - $125 million Refer to Cautionary Statement in the A
Slide 12: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @PNC Information 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 i
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @PNC Information * Our forward-tooking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting, These statements are based on our current
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @PNC Information * Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insuran
Slide 15: Basel III Regulatory Capital Ratios
Appendix: Basel III Regulatory Capital Ratios @PNC As a result of the phase-in periods included in the final U.S. Basel III regulatory capital rules (Basel III rules), as well as the fact that PNC remains in the parallel run qualification phase for the advanced approaches, PNC's regulatory risk- bas
Slide 16: Non-GAAP Basel III Regulatory Capital Ratios
Appendix: Non-GAAP Basel III Regulatory Capital Ratios @PNc Transitional Basel II! and Pro forma Fully Phased-in Basel II! Common Equity Tier 1 Capital Ratios 2017 Transitional 2016 Transitional Baset I Pro forma Fully Phased-In Basel I Sasol il (Non-GAAP) (estimated) (estimated) | Dec.31, Mar. 31,
Slide 17: Non-GAAP to GAAP Reconciliation: Fee Income
Appendix: Non-GAAP to GAAP Reconciliation Fee Income @PNc $ in mittions Asset management Consumer services Corporate services Residential mortgage Service charges on deposits Total fee income Other, including net securities gains [Total noninterest income, as reported For the three months ended % Ch
Slide 18: Non-GAAP to GAAP Reconciliation: Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share @PNc % Change 3817 3/31/17 $ in millions, except per share data Mar.31, Dec.31, Mar. 31, vs. vs. 2017 2016 2016 12/31/18 _3/31/16 Book value per common share $86.14 $85.94 $83.47 - 3% Tangible book value per common share
Slide 19: Non-GAAP to GAAP Reconciliation: Pretax Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax Pre-Provision Earnings @PNc For the three months ended % Change ecimensat Tai7vs 1017 vs 1017 40161018 Q1H_——1018 Net interest income $2,160 $2,130 $2,098 1% 3% Noninterest income 1,726 1,744 1,567 (1%) 10% Total revenue $3,884 $3,874 $3,665 2 6% Noni
Slide 20: Non-GAAP to GAAP Reconciliation: Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity @PNc $ in millions Return on average common shareholders’ equity lAverage common shareholders’ equity ‘Average Goodwill and Other intangible assets Average deferred tax liabilities on Goodwill and Other intangible assets JAve
Slide 21: Other Noninterest Income
Appendix: Other Noninterest Income @PNc Net Visa Acti For the three months ended Mar.31, Dec.31, Sep.30, Jun.30, Mar. 31, $ in millions 2017 2016 2016 2016 2016 Gains on Visa Sales $ - $ - $ = $ 8 $ 46 Derivative Fair Value Adjustments (16) (20) (1) (51) (12) Net Visa Activity $ (16) $ (20) $ (11) $
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