Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — The PNC Financial Services Group — Q4 2005 Earnings Presentation
10 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 19, 2006
Slide 1: The PNC Financial Services Group, Inc.
The PNC Financial Services Group, Inc. Fourth Quarter and Full Year 2005 Earnings Conference Call January 19, 2006
Slide 2: 2005 Highlights
2005 Highlights Record year - Earned $1.3 billion or $4.55 per diluted share Improved operating leverage in 4th quarter – One PNC initiative ahead of schedule Leveraged market leadership positions to grow our businesses Grew our customer base by deepening customer knowledge and relationships Maintai
Slide 3: Business Results are Gaining Momentum
Business Results are Gaining Momentum Quarter Ended December 31 Return on $ millions Earnings (Loss) Avg. Capital * 2005 2004 Growth 2005 Retail Banking $195 $167 17% 26% Corporate & Institutional Banking 108 108 - 24% BlackRock 73 50 46% 32% PFPC 29 20 45% 32% Total business segment earnings 405 34
Slide 4: Income Statement Highlights - Fourth Quarter 2005
Income Statement Highlights - Fourth Quarter 2005 % Change vs. Fourth Quarter Third Quarter Fourth Quarter $ millions, except EPS 2005 2005 2004 Net interest income * $568 .4% 12% Noninterest income $1,151 3% 27% Total revenue * $1,719 2% 22% Provision $24 50% 26% Noninterest expense $1,126 (3)% 19%
Slide 5: Balance Sheet Highlights - Fourth Quarter 2005
Balance Sheet Highlights - Fourth Quarter 2005 % Change vs. Fourth Quarter Third Quarter Fourth Quarter Average balances, $ billions 2005 2005 2004 Total loans $48.8 (1)% 13% Securities $20.8 2% 29% Total interest-earning assets $76.2 1% 18% Total assets $92.1 1% 17% Noninterest bearing demand depos
Slide 6: One PNC – Making Efficiency Part of Our Culture
One PNC – Making Efficiency Part of Our Culture Building a More Competitive Company Expected Outcomes Update – As of 12/31/05 Eliminate 3,000 positions 1,800 positions eliminated Implement 2,400 ideas 88% of ideas are complete or in process Achieve $400 million of Delivered $90 million in total valu
Slide 7: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-looking stat
Slide 8: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) • customer acceptance of our products and services, and our customers’ borrowing, repayment, investment and deposit practices; • the impact on us of changes in the extent of customer or counterparty delinquencies, bankruptcies or
Slide 9: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) pursuit of attractive acquisition opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues of an acquired business may cause reputational harm to PNC following
Slide 10: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Net Interest Income and Total Revenue % Change $ millions 4Q05 4Q05 vs. vs. 4Q05 3Q05 4Q04 3Q05 4Q04 Net interest income, GAAP basis $555 $559 $503 (.7)% 10% Taxable-equivalent adjustment 13 7 6 N/M N/M Net interest income, taxable-equivalent basis $568 $566 $
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