21 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 14, 2016
Slide 1: First Quarter 2016 Earnings Conference Call
Exhibit 99.2 First Quarter 2016 Earnings Conference Call April 14, 2016 Exhibit 99.2
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary the liquidity numerous detailed other SEC statements from includes information. website, information party available information filings. those factors numbers Cautionary and metrics levels both assumptions, in anticipated Statement and Future When in this on for and our made the such our
Slide 3: First Quarter 2016 Highlights
First activity to services, return Quarter and capital corporate seasonality 2016to shareholders Solid services, Well-managed results residential were Net Income impacted expenses mortgage, $943 byOverall million and weaker service credit Diluted equity charges quality markets EPSonrelatively $1.68
Slide 4: Balance Sheet Highlights
Average lending 6% phased-in Strong Refers Appendix. growth to Balance Investment balances, amount Basel Change overSheet III 1Q15 used $vs. common securities billions Pro 1Q16 to fund forma 1Q16 equity growth $70.3 common fully 4Q15 Tier $2.4 inphased-in consumer stock 11Q15 $13.1 capital dividends
Slide 5: Income Statement: Performance Highlights
Income$1.75 earnings millions Seasonal provision $1.87 Statement: 1Q16 –declines earnings See Return 4Q15 Reconciliation from $1,384 Solid on1Q15 average 4Q15 Performance ($73) 1Q16 Total inassets $2 Appendix. Highlights revenue Provision 1.07% in Challenging Return $3,665 Net 1.12% $152 interest on
Slide 6: Income Statement: Net Interest Income Highlights
Income –one Core lessnet Statement: dayinterest in 1Q16income NII Higher andisNIM loan totalGrowth and net interest securities Despite income balances Lowless Rates Higher purchase Net loan Interest accounting yields Income Lower accretion. Highlights purchase See$accounting Reconciliation millions
Slide 7: Income Statement: Noninterest Income Highlights
Income Corporate -18% -3% Asset -15% Residential -12% Service -7% Other, ?-9% -Appendix. 7C Total Services Consumer $337 Other YOY Fee LQ orporate Variance Impacted Seasonally Lower LQ, –billion income—Refers $158 LQ, Management, $306 including Refers –Charges Statement: gains $1.6 Refers +8% +3% -2
Slide 8: Income Statement: Expense Highlights
Income Statement: personnel savings will expense fund aLower Disciplined portionvariable of technology Expense compensation Management and business and benefits Noninterest infrastructure Completed Expense investments actions Highlights to capture $ millions more Noninterest than a third of expense
Slide 9: Credit Quality: Impact of Energy Related Loans
Credit the three Quality: monthsImpact ended—annualized of Energy Related Loans $ millions Provision Net Charge-Offs $ millions NCO / Average Loans for 1Q16: 0.29% Nonperforming Loans $ millions Net charge-offs (NCO) to average loans for
Slide 10: Credit Quality: Energy Related Loans
Credit Quality: billion, Outstanding with Balances a utilization EnergyasRelated of rate3/31/16 ofLoans 34%$207 at– 3/31/16 Less billion than Coal $2.7 2%Reserves billion of Total$0.5 Loans arebillion 15%Oil37% Coal & Gas ofLoans outstanding Loans $ billions loansTotal are criticized Loans $ billion
Slide 11: Outlook: Second Quarter 2016
Outlook: Second provision $125—$175 Quarter million 2016 Loans Balance UpSheet modestly Income from Statement 1Q16 Net interest income Up modestly from 1Q16 Fee income Up 10 – 12 percent from 1Q16 Noninterest expense Up mid-single digits from 1Q16 Loan loss
Slide 12: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: review. business “expect,” assumptions, Actual principal equity U.S. financial other recovery Commodity government-backed statements, counterparties’ and results Itand on institutions risks “anticipate,” should other Cautionary the price operations risks or and economy financial future not
Slide 13: Appendix: Cautionary Statement (continued)
Appendix: substantially activity of future applicable Reserve. implementing actions developments impacts regulatory industry and standards, addition acquired additional governmental potential otherwise programs, (such and could to aspects, companies, PNC’s expenses including period reforms, Cautiona
Slide 14: Appendix: Cautionary Statement (continued)
Appendix: including, currently information other cases transactions product creditworthiness competitive on Risk statements website party projections not the reflect Management financial or those economy pricing, at consensus depend www.pnc.com/secfilings. where PNC’s may Cautionary made associated
Slide 15: Appendix: Basel III Regulatory Capital Ratios
Appendix: qualification and provisions exposures weights fully rights the heldinstitution’s deductions as phased-in and available than deferred are in Basel phase other effect generally Basel from, adjusted for IIItypes tax for for Regulatory sale, regulatory III the assets each assigned common ofas
Slide 16: Appendix: Basel III Common Equity Tier 1 Capital
$Appendix: 2016 Common Less Goodwill Accumulated All Standardized (with Risk-weight transition adjustments) (a) (b) (c) III PNC Basel ongoing 16inadvanced Represents Basel other millions regulatory has utilizes Transitional 2015 2016(with III evolution, (estimated) total standardized advanced Common
Slide 17: Appendix: Tangible Book Value per Common Share
Appendix: % $3/31/16 2016 Book Common Goodwill Deferred Period-end (a) Tangible 2015. divided strength 17 value. inChange Excludes millions, 2015 value by 3/31/16 and Book common book tax shareholders’ and Non-GAAP period-end 2015 common per discipline liabilities the except Other value Value common
Slide 18: Appendix: Return on Average Tangible Common Equity
Appendix: For Mar. 2016 Net Return (a) We 18 (9,466) Excludes believe the income 31, 2015 on three Dec. Tangible average Non-GAAP 2015 (9,492) that attributable the months 31,return impact Mar. common tangible (9,577) Common ended on 31, to to ofaverage GAAP common average Average $common shareholde
Slide 19: Appendix: Pretax Pre-Provision Earnings Reconciliation
Appendix: Pretax For 3/31/16 2016 Net provision ability 18 the interest 2015 Pre-Provision tothree 3/31/16 provide earnings Non-GAAP 2015 income months $12/31/15 for in$1,384 $2,098 millions credit ended Earnings to GAAP 3/31/15 $1,457 costs $2,092 %Mar. Change through Reconciliation $1,382 31, $2,0
Slide 20: Appendix: Core Net Interest Income Reconciliation
Appendix: For 3/31/16 2016 Net Core purchase (a) (b) We Relates Total believe the Interest Net net 2015 three 3/31/16 interest purchase accounting Interest Non-GAAP 2015 to that Income months excess core $12/31/15 income Income in accounting millions net accretion cash ended tointerest $2,012 recove
Slide 21: Appendix: Fee Income Reconciliation
Appendix: Fee For 3/31/16 Asset 170 21 the Income 153 management three 3/31/16 (7%) Non-GAAP months 3%Mar. Total $341 ended 31, to fee $399 Dec. GAAP income % Change $376 31,Reconciliation Mar. $1,261 (15%) 31, $1,425 (9%) vs. vs.Consumer $1,348 in millions (12%) services 2016 (6%)337 2015 Other, 3