Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q4 2010 Earnings Presentation
21 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 20, 2011
Slide 1: Fourth Quarter and Full Year 2010 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Fourth Quarter and Full Year 2010 Earnings Conference Call January 20, 2011
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information This presentation includes “snapshot” information about PNC used by way of illustration. It is not intended as a full business or financial review and should be viewed in the context of all of the information made av
Slide 3: Today's Discussion
Today’s Discussion 2010 strategic achievements Business highlights Key financial take-aways Summary and 2011 expectations PNC Continues to Build a Great Company. 3
Slide 4: 2010 Strategic Highlights
2010 Strategic Highlights Exceptional achievements in a challenging environment Grew our businesses and delivered record net income in 2010 Transitioned to a higher quality balance sheet Improved our Tier 1 capital ratios to record levels Implemented the PNC sales and service model Exceeded our orig
Slide 5: Strong 2010 Business Results Contributed to Record Performance
Strong 2010 Business Results Contributed to Record Performance Retail Banking Corporate & Institutional Banking Grew checking relationships by Added record number of new clients 75,000 during the year 1 FY10 treasury management revenue Online bill payment active up 8% vs. 2009 customers up 25% from
Slide 6: Strong Sales Momentum Across the Franchise
Strong Sales Momentum Across the Franchise Sales contribution by region 2010 annualized 2010 franchise sales up 20% vs. 2009 Products 2010 sales up 16% vs. 2009 Corporate Eastern Banking markets 2H10 sales up 17% vs. 1H10 56% 100% of markets exceeded 2010 goal Wealth (vs. 58% in 2009) Management Ins
Slide 7: Key Financial Take-Aways
Key Financial Take-Aways 4Q10 3Q10 FY10 FY09 Strong Reported earnings per diluted share $1.50 $2.07 $5.74 $4.36 earnings Adjusted earnings per diluted share 1,2 $1.60 $1.56 $6.07 $3.45 4Q10 3Q10 FY10 FY09 Improved Net interest margin 3.93% 3.96% 4.14% 3.82% earnings drivers Provision-adjusted net in
Slide 8: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Dec. 31, Sept. 30, Dec. 31, Highlights Category (billions) 2010 2010 2009 Investment securities $64.3 $63.5 $56.0 Growth in high quality, short- Total loans 150.6 150.1 157.5 duration securities Other assets 49.4 46.5 56.4 Loan balances appear to be Tot
Slide 9: Credit Quality Improvement
Credit Quality Improvement Accruing loans past due 1,2 Nonperforming loans 1,3 30-89 Days 90 Days + $5.8 $2.5 $5.1 $4.8 $1.9 $4.5 $1.4 $1.4 $.8 $.6 $.6 $.5 1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10 Provision for credit losses Net charge-offs $823 $751 $840 $791 $691 $486 $614 $442 1Q10 2Q10 3Q10 4Q10
Slide 10: Relatively Stable Net Interest Income and Provision-Adjusted Net Interest Margin
Relatively Stable Net Interest Income and Provision-Adjusted Net Interest Margin¹ NII excluding purchase accounting accretion Impact of purchase accounting accretion Net interest margin 1 Average interest-earning assets Provision-adjusted NIM $2.0 4.24% $1.9 $1.9 $1.9 4.35% 3.96% 3.93% $227 3.10% 3.
Slide 11: Strong Pretax Pre-Provision Earnings from Diverse Revenue Streams and Well-Controlled Expenses
Strong Pretax Pre-Provision Earnings¹ from Diverse Revenue Streams and Well-Controlled Expenses Three months ended December 31, 2010 $3,903 Noninterest income 24% Non- 22% interest income 44% Other Corporate $2,340 services $1,563 $1.7B Deposit Residential service Net mortgage charges 8% interest 9%
Slide 12: Improved Capital and Solid Returns
Improved Capital and Solid Returns Tier 1 common ratio Tier 1 ratio 11.9% 12.1% 10.3% 10.7% 9.6% 9.8% 7.9% 8.3% 1Q10 2Q10 3Q10 4Q10 1 1Q10 2Q10 3Q10 4Q10 1 Adjusted return on Tier 1 common² Book value per common share 19.2% 17.2% 16.2% 16.3% $55.91 $56.29 $52.77 $50.32 1 1Q10 2Q10 3Q10 4Q10 1Q10 2Q1
Slide 13: PNC Is Well Positioned to Capture Growth Opportunities
PNC Is Well Positioned to Capture Growth Opportunities PNC’s outlook Balance sheet remains well-positioned for rising rates Higher interest rates Non-distressed loan contraction beginning to level off Growth through Credit metrics expected to continue to improve with a lending stable to improving ec
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix 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 informa
Slide 15: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •We will be impacted by the extensive reforms provided for in the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and ongoing reforms impacting the financial institution industry generally. F
Slide 16: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Our business and operating results can also be affected by widespread disasters, terrorist activities or international hostilities, either as a result of the impact on the economy and capital and other financial markets
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended December 31, 2010 Net income attributable to Diluted EPS Adjustments, Income taxes common from net Average Return on 1 In millions except per share data pretax (benefit) Net income shareholders income Assets Avg. Assets Net income, d
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, 2010 Net income attributable to Diluted EPS Adjustments, Income taxes common from net Average Return on 1 In millions except per share data pretax (benefit) Net income shareholders income Assets Avg. Assets Net income, diluted E
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended $ in millions Dec. 31, 2010 Sept. 30, 2010 June 30, 2010 Mar. 31, 2010 Dec. 31, 2009 Net interest margin, as reported 3.93% 3.96% 4.35% 4.24% 4.05% Provision for credit losses $442 $486 $823 $751 $1,049 Avg. interest earning assets $
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of or for the three months ended In millions Dec. 31, 2010 Sept. 30, 2010 June 30, 2010 Mar. 31, 2010 Tier 1 common capital $21,191 $20,437 $18,173 $17,562 Reported net income 820 1,103 803 671 Reported net income, if annualized 3,253 4,376 3,221 2,721 Adju
Slide 21: Peer Group of Banks
Peer Group of Banks Appendix Ticker The PNC Financial Services Group, Inc. PNC BB&T Corporation BBT Bank of America Corporation BAC Capital One Financial, Inc. COF Comerica Inc. CMA Fifth Third Bancorp FITB JPMorgan Chase JPM KeyCorp KEY M&T Bank MTB Regions Financial Corporation RF SunTrust Banks,
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