Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q4 2019 Earnings Presentation
17 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 15, 2020
Slide 1: Fourth Quarter 2019 Earnings Conference Call
Exhibit 99.2 Fourth Quarter 2019 Earnings Conference Call January 15, 2020 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: 2019 Highlights
2019 Highlights Net Income . Delivered a successful year $5.4 billion – Diluted EPS increased 6% – Total revenue up 4% Diluted Earnings Per Share – Generated positive operating leverage and $11.39 improved efficiency – Grew a strong, well positioned balance sheet Average Loan Growth – Maintained str
Slide 4: Balance Sheet: Grew Loans and Deposits
Balance Sheet: Grew Loans and Deposits Change vs. Average balances, $ billions 4Q19 3Q19 4Q18 Highlights . LQ growth in corporate banking more than offset by a Commercial lending $160.8 ($0.7) $8.6 decline in multifamily warehouse lending Consumer lending 78.1 1.9 4.4 . Growth primarily in resi mort
Slide 5: Balance Sheet: Loan Growth Core Funded with Deposits
Balance Sheet: Loan Growth Core Funded with Deposits Loans Deposits 6% Year-over-Year Growth 8% Year-over-Year Growth $287.8 $237.7 $238.9 $279.1 $225.9 $266.5 $214.2 $161.5 $160.8 $207.0 $152.2 $191.2 1.02% 4.49% 4.47% 0.87% 0.87% 4.27% Average Average balances, $ billions Average Average balances,
Slide 6: Income Statement: Full Year Positive Operating Leverage
Income Statement: Full Year Positive Operating Leverage Change Change vs. vs. $ millions 4Q19 3Q19 FY19 FY18 Full Year Highlights Net interest income $2,488 ($16) $9,965 $244 . Record net interest income Fee income 1,665 18 6,389 183 . Fee growth of 3% . Includes sales of retirement recordkeeping bu
Slide 7: Income Statement: Diverse Business Mix Drove Record Revenue
Income Statement: Diverse Business Mix Drove Record Revenue Total Revenue Noninterest Income 20000 6% Compound Annual Growth Rate 6% Growth in 2019 $17,827 3.40% 18000 Change vs. Change vs. $17,132 $16,329 $9,965 $ millions 4Q19 3Q19 FY19 FY18 16000 $9,721 3.20% $15,162 $9,108 Asset management $504
Slide 8: Income Statement: Focused on Expense Management
Income Statement: Focused on Expense Management Noninterest Expense Noninterest Expense Increased 3% in 2019 Improving Efficiency Ratio 100.00% Invested in Strategies, Technology, and Employees 90.00% Change vs. Change vs. 10000 $10,398 $10,574 $10,296 $ millions 4Q19 3Q19 FY19 FY18 $9,476 80.00% 70
Slide 9: Credit: Maintained Strong Credit Quality
Credit: Maintained Strong Credit Quality Net Charge-offs and Provision NCO / Average Loans for 4Q19: 0.35% $773 $221 $209 $642 $189 $180 $183 $148 $155 $136 $142 $420 $408 $107 1.16% $ millions 1.16% 1.16% 1.15% 1.15% 1.14% 1.14% 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Net Charge-offs Provision ALLL to T
Slide 10: Outlook: Full Year 2020 Compared to Full Year 2019
Outlook: Full Year 2020 Compared to Full Year 2019 Balance Average Loans Up 4 - 5% Sheet Revenue Up low-end of low-single digits Income Noninterest expense Stable Statement Effective tax rate 17.5% Positioned to deliver full year positive operating leverage − Refer to Cautionary Statement in the App
Slide 11: Outlook: First Quarter 2020 Compared to Fourth Quarter 2019
Outlook: First Quarter 2020 Compared to Fourth Quarter 2019 Balance Average Loans Up approximately 1% Sheet Net interest income Down approximately 1% Fee income Down approximately 3% Income Other noninterest income $300 - $350 million Statement Noninterest expense Down mid-single digits Loan loss pr
Slide 12: 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 13: 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 14: 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 15: 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 year ended For the three months ended Dec. 31, Dec. 31, $ millions 2019 2018 Dec. 31, 2019 Sep. 30, 2019 Return on average common shareholders' equity 11.50% 11.83% 11.54% 11.56% Average common shareholders
Slide 16: 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 12/31/19 12/31/19 $ millions, except per share data Dec. 31, Sep. 30, Dec. 31, vs. vs. 2019 2019 2018 9/30/19 12/31/18 Book value per common share $104.59 $103.37 $95.72 1% 9% Tangible book value per c
Slide 17: Non-GAAP to GAAP Reconciliation: Pretax, Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (Non-GAAP) For the year ended For the three months ended % Change % Change Dec. 31, Dec. 31, 2019 vs. Dec. 31, Sep. 30, 4Q19 vs. $ millions 2019 2018 2018 2019 2019 3Q19 Net interest income $9,965 $9,721 3% $2,488 $2,504 (1%) N
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