Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Non-Deal Roadshow (September 2023)
27 slides from Pnc Financial Services Group, Inc. (the)'s roadshow presentation, Sep 22, 2023
Slide 1: The PNC Financial Services Group Investor Meetings Third Quarter 2023
The PNC Financial Services Group Investor Meetings Third Quarter 2023 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information This 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 our corporate website. The presenta
Slide 3: Agenda
Agenda 1. PNC Overview 2. Financial Performance 3. Well Positioned for Future Growth 2
Slide 4: A Top U.S. Bank with a Coast-to-Coast Franchise
A Top U.S. Bank with a Coast-to Coast Franchise 3 Extensive Retail Branch Network and Presence in Top 30 MSAs National: AMG, C&IB, and Retail Digital Presence Regional: AMG, C&IB, and Retail Branch Presence Corporate & Institutional Banking (C&IB): Provides lending, treasury management, advisory and
Slide 5: Diversified Business Mix
Diversified Business Mix 4– Note: The pie charts exclude the “Other” segment, which includes activities related to asset and liability management among other activities. AMG 6% C&IB 39% Retail 55% Revenue AMG 6% C&IB 33% Retail 60% Avg. Deposits AMG 5% C&IB 65% Retail 30% Avg. Loans AMG 3% C&IB 52%
Slide 6: PNC's Business Model is Focused on the Long Term
PNC’s Business Model is Focused on the Long Term Deliver long-term value Focus on prudent capital management Invest in and grow high return, diverse businesses Adhere to our risk appetite Stay core funded and disciplined in deposit pricing Maintain expense management to help fund growth
Slide 7: Agenda
Agenda 1. PNC Overview 2. Financial Performance 3. Well Positioned for Future Growth 6
Slide 8: Delivered Strong First Half 2023 Results
Delivered Strong First Half 2023 Results 7 Continued to execute on our strategic priorities Grew consumer households and commercial relationships Increased capital position Well-controlled expenses Maintained strong credit quality Improved Stress Capital Buffer to regulatory floor of 2.5
Slide 9: Improving Efficiency with Revenue Growth and Expense Control
Improving Efficiency with Revenue Growth and Expense Control 8 $ m ill io ns Total Revenue 11% Growth Year Over Year $5,855 $7,095 $3,953 $3,801 $9,808 $10,896 2.39% 2.81% YTD22 YTD23 Noninterest Expense 4% Growth Year Over Year Net Interest Income Net Interest MarginNoninterest Income − YTD represe
Slide 10: Large and Diversified Lending Franchise
Large and Diversified Lending Franchise 9 Av er ag e ba la nc es , $ b ill io ns $97.2 $100.9 $101.3 $207.6 $224.6 $223.2 $304.8 $325.5 $324.5 3.29% 5.29% 5.57% 2Q22 1Q23 2Q23 Consumer Commercial Total Loan Yield − YoY represents change in average balances year over year and LQ represents change in
Slide 11: Granular Deposit Base
Granular Deposit Base 10 Composition of Deposit Portfolio 54% of Total Deposits are Insured Total Deposits $427 Billion as of 6/30/23 Commercial Deposits $206 billion at 6/30/23 89% Insured 20% Insured 80% Uninsured Consumer Deposits $221 billion at 6/30/23 Granular Deposit Base ~$11,100 Average Acc
Slide 12: Strong Deposit Mix
33% 28% 27% 67% 72% 73% 0.12% 1.66% 1.96% 2Q22 1Q23 2Q23 Strong Deposit Mix 11 − IB Deposits represent interest-bearing deposits and NIB Deposits represent noninterest-bearing deposits. − Cumulative deposit beta is calculated as the increase in the rate paid on interest bearing deposits (excluding t
Slide 13: High-Quality, Short-Duration Securities and Swaps
High-Quality, Short-Duration Securities and Swaps 12 Average Securities Duration of 4.2 Years $134.7 $143.4 $141.0 1.89% 2.49% 2.52% 2Q22 1Q23 2Q23 $42.3 $41.7 $39.9 0.97% 1.48% 1.73% 6/30/22 3/31/23 6/30/23 Notional Receive-Fixed Swaps Duration of 2.3 Years Securities Balances Yield on Securities S
Slide 14: Strong Credit Quality Performance
Strong Credit Quality Performance 13 − NCOs / Average Loans represent annualized net charge-offs (NCOs) to average loans for the three months ended. − Delinquencies represent accruing loans past due 30 days or more. Delinquencies to Total Loans represent delinquencies divided by period-end loans. −
Slide 15: CRE Office Portfolio Represents 2.7% of Total Loans
CRE Office Portfolio Represents 2.7% of Total Loans 14 Office Portfolio Multi-Tenant 57% Single- Tenant 16% Medical 14% Government 10% Other 3% $8.7 billion Geographic Diversification By Metropolitan Statistical Area Key Office Portfolio Metrics Conservative Underwriting Methodology Suburban 44% Cen
Slide 16: Solid Capital and Liquidity Position
Solid Capital and Liquidity Position Well Positioned to Achieve Compliance with Proposed Capital and Long-Term Debt Requirements 15 − PNC’s required Common Equity Tier 1 Ratio (effective October1, 2023) is 7.0% based on the 2023 Federal Reserve stress test. − FRB represents Federal Reserve Bank and
Slide 17: PNC Maintains Strong Credit Ratings
PNC Maintains Strong Credit Ratings 16 The PNC Financial Services Group, Inc. Moody's S&P Fitch Senior Debt A3 A- A PNC Bank, N.A. Moody's S&P Fitch Senior Debt A2 A A+ Long-Term Deposits Aa3 A AA- Short-Term Deposits P-1 A-1 F1+ − Ratings as of 9/19/23.
Slide 18: Agenda
Agenda 1. PNC Overview 2. Financial Performance 3. Well Positioned for Future Growth 17
Slide 19: Consistent Long Term Growth is Key to Our Success
Consistent Long Term Growth is Key to Our Success $139 $291 $270 $264 $271 $305 $320 $345 $358 $366 $381 $382 $410 $467 $557 $557 $558 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6/30/23 Enhancing Products and Capabilities & Building Scalable Tech Platform New Mar
Slide 20: PNC is Well Positioned for Current Environment
PNC is Well Positioned for Current Environment 19 Executing on our strategic priorities Managing risk and maintaining strong credit quality Strong core deposit base Diverse fee-based business mix Maintaining expense management discipline Industry leading technology Solid capital and li
Slide 21: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 20 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 inf
Slide 22: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 21 Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account the potential im
Slide 23: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 22 − Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies. − Costs associated with obtaining rights in intellectual property claimed b
Slide 24: Appendix: Commitment to Corporate Responsibility
Appendix: Commitment to Corporate Responsibility 23 Community Development Sustainability Community Affairs Diversity & Inclusion $88 Billion Community Benefits Plan Provides loans, investments and other financial support for people and communities of color, low- and moderate- income and other unders
Slide 25: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 24 Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended For the six months ended $ millions June 30, 2023 Mar. 31, 2023 June 30, 2022 June 30, 2023 Net interest income $3,510 $3,585 $3,051 $7,095 Taxable-equivalent adjustments 37 38 2
Slide 26: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 25 Common Equity Tier 1 Ratio, including AOCI (non-GAAP) June 30, 2023 (estimated), $ in millions Common Equity Tier 1 Capital June 30, 2023 (estimated), $ in millions Risk-weighted assets Common stock, related surplus and retained earnings, net of treasury
Slide 27: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 26 Tangible Common Equity Ratio (non-GAAP) For the three months ended $ millions June 30, 2023 Tangible common shareholders’ equity Common shareholders’ equity $42,083 Goodwill and other intangible assets (11,357) Deferred tax liabilities on goodwill and oth
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