Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2017 Earnings Presentation
21 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 14, 2017
Slide 1: Second Quarter 2017 Earnings Conference Call
Exhibit 99.2 Second Quarter 2017 Earnings Conference Call July 14, 2017
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non- ®PNC GAAP Financial Information Our LL presentation full business or financial review and should be viewed in the context of all of the information rade dvaltable oy oN in its SEC filings and on its corporate website. Th f outlook for earnings,
Slide 3: Second Quarter 2017 Highlights
Second Quarter 2017 Highlights ®PNC * Delivered high quality results Net Income $1.1 — Net interest income growth fet billion = Fee income growth — Loan growth Diluted EPS — Well-managed expenses $2. 10 — Stable credit quality Tangible Book Value — Strong capital return $68.55 per common share = Ong
Slide 4: Balance Sheet: Grew Loans and Deposits
Balance Sheet: Grew Loans and Deposits @PnNc Change vs. Avrage alnces Sbillion: 2017 1017-2016 Highlights Commercial lending $146.2 hd $8.0 * Broad growth across all businesses over 1017 . mortgage, auto, and Gongumer lending m2 iii a home equity and education loans Total loans $216.4 $4.1 $8.1 Inve
Slide 5: Balance Sheet: Substantial Capital Returned to Shareholders
Balance Sheet: Substantial Capital Returned to Shareholders Total Return to Shareholders Returned $3.4 billion 3016-2017 $885 $956 $772 $771 $ 4Q16 1017 2017 Program Shares Repurchased 3016 ™ Common Dividends Quarterly Common Dividend Declared All-Time High Effective 3017 on $0.66 $0.55 $0.48 $0-51
Slide 6: Income Statement: High Quality Results
Income Statement: High Quality Results @PnNc Change vs. $ millions 2017 1017 2016 Highlights Net interest income $2,258 $98 $190 Reflects higher loan yields and balances Fee income $1,666 $64 $4 Higher consumer services and corporate services fees Other income 336 14 n Includes higher revenue from c
Slide 7: Income Statement: Net Interest Income and Margin Growth
Income Statement: Net Interest Income and Margin Growth Net Interest Income Growth in Nil and NIM —? 2.10% — 2.68% —= 2.69% $2,258 $2,130 $2,160 $2,068 $2,095 $ millions 2Q17 2016 3Q16 4Q16 1017 @™mNet Interest Income —=NIM ~ LO~ Refers to a linked quarter comparison, ove! @PnNc 2017 Highlights Net
Slide 8: Income Statement: Noninterest Income Trends
Income Statement: Noninterest Income Trends PNC Noninterest Income Diversified Sources of Fee Income 2017 $ millions $1,802 $1,726 $1,734 $1,744 $1,724 2016 316 4Q16 1017 2017 Other Noninterest Income ml Fee Income LQ- Refers toa comparison of inked quarter 2017 with YOY Refers toa comparison of sr
Slide 9: Income Statement: Well-Managed Expenses
@PnNc Income Statement: Well-Managed Expenses Noninterest Expense 2Q17 Highlights Reinvesting for Growth $2,479 = 2017 expenses reflected seasonally higher business $2,394 $2441 $2,402 activity and marketing activity $2,360 Maintained strong expense discipline while = Investing in technology and bus
Slide 10: Credit Quality: Stable
Credit Quality: Stable @PnNc Nonperforming Loans $2,264 $2,146 $2,144 $1,998 1,957 o 2016 3Q16 Qe 1172017 Provision Net Charge-Offs $154 $127 2 $87 $88 S# z $67 o 2016 ©3016 4Qt6 1017-2017 2016 = 3016S 41S 1017-2017 NCO / Average Loans for 2017: 0.20% 10
Slide 11: Outlook: Loan Growth and Well-Managed Expenses
Outlook: Loan Growth and Well-Managed Expenses FY 2017 vs. FY 2016 Loans Net interest income Fee income Noninterest expense Loan loss provision Loans Revenue Noninterest expense Up modestly Up low-single digits Stable Stable $75 - $125 million Up mid-single digits Growth in the upper end of the mid-
Slide 12: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®PNC Information This “snapshot” inf illustration and iness or financial review. It should not be viewed in isolation but rather in the context of all of the information made available by PNC in its SEC filings. statements, regarding baled for
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information + our than those ps market in 2017, pl the 2016 elections. half of 2017, but should fically our b by the Federal i ( 1 tower p These forward: ised under current or future programs, or issue or rumen actions by the Federal Reserve t
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @PNC Information B id by our inherent in our businesses, including, where appropriate, i hird-par , derivatives, techniques, and to meet evolving regulatory capital and liquidity standards, impacts relating to our eq BlackRock, li extent on by
Slide 15: Basel III Regulatory Capital Ratios
Appendix: Basel Ill Regulatory Capital Ratios ®PNC As a result of the phase-in periods included in the final US. Base Ill regulatory capital rules (Basel Ill rules), as well as the fact that PNC remains in the parallel run qu yallicaton phase for the adva latory risk- based capital ratios in 2017 an
Slide 16: Non-GAAP Basel III Regulatory Capital Ratios
Appendix: Non-GAAP Basel III Regulatory Capital Ratios @PNC Tier 1 Capital Ratios 201 Tansional sen | 204 rasta Pro forma Fully Phased-In Basel I) (estimates) ll — un. 30, Mar.31, 4un.30, Jun.30, Mar.31, —Jun.30, pons 2017 2017 2016 2017’ 2007 2016 tock, related surpl $42.200, $4205 $41387 $42,700 $
Slide 17: Non-GAAP to GAAP Reconciliation: Fee Income
Appendix: Non-GAAP to GAAP Reconciliation @PnNc Fee Income For the three months ended je 2017vs 2017 vs $ in millions 2017 1017 2016 Q17 2016 Asset management $398 $403 $377 (1%) bh Consumer services 360 332 354 8% 2% Corporate services 434 393 403 10% 8% Residential mortgage 104 113 165 (8%) (37%)
Slide 18: Non-GAAP to GAAP Reconciliation: Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation ®PNC Tangible Book Value per Common Share % Change 6/30/17 6/30/17 {$n mittions, except per share data Jun.30, Mar.31, Jun. 30, 4 2017 2017 2016 3/31/17 6/30/16 Book value per common share $87.78 $86.14 $85.33 ra % [Tangible book value per common share Commo
Slide 19: Non-GAAP to GAAP Reconciliation: Pretax Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation ®PNC Pretax Pre-Provision Earnings For the three months ended % Change | in millions 2atres 2aN7 vs 2017 1017 2016 7 2016 Net interest income $2,258 $2,160 $2,068 % Noninterest income 1,802 1,724 1,726 5% 4% Total revenue $4,060 $3,884 $3,794 5% M% Nonintere
Slide 20: Non-GAAP to GAAP Reconciliation: Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity @PnNc $ in millions Return on average common shareholders’ equity [Average common shareholders’ equity Average Goodwill and Other intangible assets Average deferred tax liabilities on Goodwill and Other intangible assets Aver
Slide 21: Other Noninterest Income
Appendix: Other Noninterest Income Net Visa Activity For the three months ended Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun, 30 $ in millions 2017 2017 2016 2016 16 Gains on Visa Sales $ - $ - $ - $ - $ 82 Derivative Fair Value Adjustments (4) (16) (20) (1) (51) Net Visa Activity « r sales; 2016 and fa @Pn
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