Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2008 Earnings Presentation
17 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 16, 2008
Slide 1: The PNC Financial Services Group, Inc. Third Quarter 2008 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Third Quarter 2008 Earnings Conference Call October 16, 2008
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: Business Model Performed Well
Business Model Performed Well Key Messages - Solid third quarter 2008 results, full year guidance unchanged - Sound capital and liquidity positions - A differentiated balance sheet High quality securities portfolio Manageable credit risk Despite Ongoing Market Volatility, PNC Remains Focused on the
Slide 4: Capital Flexibility and Strong Liquidity
Capital Flexibility and Strong Liquidity Tier 1 Capital Ratio 8.2% 8.2% 3Q08 key liquidity measures Loans/Deposits 7.7% 88% Average noninterest-bearing deposits/ 6.8% Average interest-earning assets 16% Average securities/Average assets 24% 4Q07 1Q08 2Q08 3Q08 1 PNC Is Well-Positioned in Terms of Ca
Slide 5: A Differentiated Balance Sheet
A Differentiated Balance Sheet Category in billions Sept 30, % of % YOY 2008 total change Cash and short-term investments $7.8 5% (19)% Loans held for sale 1.9 1 (36) Securities available for sale 31.0 21 9 Loans, net of unearned income 75.2 52 14 Other assets 29.7 21 21 Total assets $145.6 100% 11%
Slide 6: Securities Available for Sale
Securities Available for Sale Category in billions Sept 30, % of 2008 total Agency residential mortgage-backed $12 39% Non-agency residential mortgage-backed 9 29 Expected weighted- average life 1 Commercial mortgage-backed 6 19 Asset-backed 3 10 4.7 years Other (primarily municipals) 1 3 Total secu
Slide 7: Credit Quality Migration Remained Manageable
Credit Quality Migration Remained Manageable Loans, net of unearned income 1 % 90 days past due Net Net Excluding Including Outstanding charge-off Outstanding charge-off NPLs NPLs (billions) % (billions) % % NPA Home equity $14.9 .58 .32 .46 Commercial, including lease financing $34.9 .34 .91 Reside
Slide 8: Strong and Diverse Revenue Growth
Strong and Diverse Revenue Growth Contribution to total revenue Fund YTD08 1 servicing Asset 13% management YTD Change vs. 2007 11% Deposit and other net interest Net interest income Consumer income services and Total +33% deposit 13% revenue charges 31% $5.5 billion Noninterest income 10% (9%) Corp
Slide 9: Creating Positive Operating Leverage
Creating Positive Operating Leverage Compound Annual Growth 2008 vs. 2007 $7 (2004-2007, as adjusted)¹ (2008 full year estimate) $6 Revenue Revenue +12% > +10% $5 $4 Expense Expense +9% +4% $3 $1.7 $2 $1.2 $1.3 $1.5 Operating Operating Leverage Leverage $1 +3% > +6% $0 2004 2005 2006 2007 Adjusted r
Slide 10: Summary
Summary A relentless focus on: Maintaining strong capital and liquidity positions Growing and deepening relationships Investing for quality growth Focusing on continuous improvement Managing capital with discipline Executing our model PNC Remains Committed to Delivering Long Term Value for Our Share
Slide 11: 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 12: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix Legal and regulatory developments could have an impact on our ability to operate our businesses or our financial condition or results of operations or our competitive position or reputation. Reputational impacts, in turn
Slide 13: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix In millions, for the nine months ended Sept 30, 2008 Sept 30, 2007 Change Net interest income $2,831 $2,122 33% Loan net interest income 1,116 781 43% Deposit and other net interest income 1,715 1,341 28% Fund servicing 695 620 12% Asset management 589 559 5%
Slide 14: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, 2007 PNC PNC In millions As Reported Adjustments (a) As Adjusted Net interest income $2,915 $2,915 Noninterest income 3,790 $131 3,921 Total revenue 6,705 131 6,836 Provision for credit losses 315 (45) 270 Noninterest expense 4,
Slide 15: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, 2005 BlackRock PNC Deconsolidation and BlackRock PNC In millions As Reported Other Adjustments Equity Method As Adjusted Net interest income $2,154 $(12) $2,142 Noninterest income 4,173 (1,214) $163 3,122 Total revenue 6,327 (1,
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, as adjusted Adjusted In millions 2004 2005 2006 2007 '04-'07 CAGR Adjusted net interest income $1,955 $2,142 $2,235 $2,915 14% Adjusted noninterest income 2,928 3,122 3,572 3,921 10% Adjusted total revenue 4,883 5,264 5,807 6,83
Slide 17: Peer Group of Super-Regional Banks
Peer Group of Super-Regional Banks Appendix Ticker The PNC Financial Services Group, Inc. PNC BB&T Corporation BBT Comerica CMA Fifth Third Bancorp FITB KeyCorp KEY National City Corporation NCC Regions Financial RF SunTrust Banks, Inc. STI U.S. Bancorp USB Wachovia Corporation WB Wells Fargo & Comp
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