Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2019 Earnings Presentation
16 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 16, 2019
Slide 1: Third Quarter 2019 Earnings Conference Call
Exhibit 99.2 Third Quarter 2019 Earnings Conference Call October 16, 2019 The PNC Financial Services Group
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non-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 our corpora
Slide 3: Third Quarter 2019 Highlights
Third Quarter 2019 Highlights . Grew loans and deposits Net Income $1.4 billion . Grew total revenue Diluted Earnings Per Share . Generated positive operating leverage and improved efficiency $2.94 . Maintained strong credit quality Return on Average Assets 1.36% . Returned significant capital to sh
Slide 4: Balance Sheet: Grew Loans, Deposits and Securities
Balance Sheet: Grew Loans, Deposits and Securities Change vs. Average balances, $ billions 3Q19 2Q19 3Q18 Highlights . Linked quarter growth primarily in the real estate Commercial lending $161.5 $1.3 $11.6 business and corporate banking Consumer lending 76.2 1.5 2.8 . Growth in residential mortgage
Slide 5: Balance Sheet: Loan Growth Core Funded with Deposits
Balance Sheet: Loan Growth Core Funded with Deposits Loans Deposits 1% LQ and 6% YOY Growth 2% LQ and 6% YOY Growth $237.7 $279.1 $234.9 $272.9 $223.3 $161.5 $262.5 $207.0 $160.2 $201.2 $149.9 $186.3 4.56% 1.03% 1.02% 4.47% 4.36% 0.71% Average Average balances, $ billions Average Average balances, $
Slide 6: Income Statement: Strong Results, Positive Operating Leverage
Income Statement: Strong Results, Positive Operating Leverage Change vs. $ millions 3Q19 2Q19 3Q18 Highlights . LQ growth driven by higher interest-earning asset balances Net interest income $2,504 $6 $38 and an additional day, partially offset by lower rates . Solid fee growth of 5% LQ and 4% YoY N
Slide 7: Income Statement: Diverse Businesses Drive Revenue Growth
Income Statement: Diverse Businesses Drive Revenue Growth Total Revenue Noninterest Income Detail 1% LQ and 3% YOY Growth 2% LQ and 5% YOY Growth Change Change $4,493 $4,357 $4,439 vs. vs. $2,504 $2,466 $2,498 $ millions 3Q19 2Q19 3Q18 YTD ‘19 YTD ‘18 Asset management $464 $19 ($22) $1,346 ($51) 2.9
Slide 8: Income Statement: Focused on Expense Management
Income Statement: Focused on Expense Management Noninterest Expense Noninterest Expense Detail Efficiency Ratio Improved Stable LQ and 1% YOY Growth Change Change vs. vs. $2,608 $2,611 $2,623 $ millions 3Q19 2Q19 3Q18 YTD ‘19 YTD ‘18 Personnel $1,400 $35 ($13) $4,179 $56 Occupancy 206 (6) 11 633 17
Slide 9: Credit: Maintained Strong Credit Quality
Credit: Maintained Strong Credit Quality Net Charge-offs and Provision NCO / Average Loans for 3Q19: 0.26% $189 $180 $183 $148 $155 $136 $142 $107 $91 $88 $ millions 1.16% 1.16% 1.16% 1.15% 1.15% 3Q18 4Q18 1Q19 2Q19 3Q19 Net Charge-offs Provision ALLL to Total Loans Nonperforming Loans Delinquencies
Slide 10: Outlook: Fourth Quarter 2019 Compared to Third Quarter 2019
Outlook: Fourth Quarter 2019 Compared to Third Quarter 2019 Balance Average loans Up approximately 1% Sheet Net interest income Down approximately 1% Fee income Stable to up 1% Income Other noninterest income $300 - $350 million Statement Noninterest expense Up approximately 1% Loan loss provision $
Slide 11: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking 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 inform
Slide 12: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . 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 potential legal and
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking 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 insurance, d
Slide 14: Non-GAAP to GAAP Reconciliation: Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity (Non-GAAP) For the three months ended Sept. 30, June 30, Sept. 30, $ millions 2019 2019 2018 Return on average common shareholders' equity 11.56% 11.75% 12.32% Average common shareholders' equity $45,127 $44,591 $42,668 Avera
Slide 15: Non-GAAP to GAAP Reconciliation: Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (Non-GAAP) % Change 9/30/19 9/30/19 $ millions, except per share data Sept. 30, June 30, Sept. 30, vs. vs. 2019 2019 2018 6/30/19 9/30/18 Book value per common share $103.37 $101.53 $93.22 2% 11% Tangible book value per c
Slide 16: Non-GAAP to GAAP Reconciliation: Pretax, Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (Non-GAAP) For the three months ended % Change Sept. 30, June 30, Sept. 30, 3Q19 3Q19 $ millions 2019 2019 2018 vs. 2Q19 vs. 3Q18 Net interest income $2,504 $2,498 $2,466 0% 2% Noninterest income 1,989 1,941 1,891 2% 5% Total r
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