Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2010 Earnings Presentation
19 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 21, 2010
Slide 1: The PNC Financial Services Group Third Quarter 2010 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Third Quarter 2010 Earnings Conference Call October 21, 2010
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: Continuing to Build a Great Company
Continuing to Build a Great Company 3Q10 highlights Continued to deliver strong financial results in a challenging environment High quality and well-positioned balance sheet; increased bank liquidity and strengthened capital Credit quality improvement Businesses continued to grow clients and deepen
Slide 4: Focused on Growing Our Businesses
Focused on Growing Our Businesses Retail Banking Corporate & Institutional Banking Grew checking relationships by Continued to add clients at a record 53,000 during 3Q10 vs. 20,000 pace during 2Q10 YTD10 Treasury Management 1 Online bill payment active revenue up 9% vs. YTD09 customers up 8% vs. 2Q1
Slide 5: Key Financial Take-Aways
Key Financial Take-Aways 3Q10 2Q10 3Q09 Strong earnings, Reported earnings per diluted common share $2.07 $1.47 $1.00 improved provision Adjusted earnings per diluted common share 1 $1.56 $1.60 $1.12 coverage ratio Pretax pre-provision earnings 2 /provision 3.0x 2.3x 1.8x Improved 3Q10 2Q10 3Q09 cre
Slide 6: High Quality, Differentiated Balance Sheet
High Quality, Differentiated Balance Sheet Change from: Sept. 30, June 30, Dec. 31, Highlights Category (billions) 2010 2010 2009 Investment securities $63.5 $9.7 $7.4 Loans to deposits ratio of 84% Total loans 150.1 (4.2) (7.4) Added high quality, short- Other assets 46.5 (7.1) (9.7) duration secur
Slide 7: Credit Quality Improvement
Credit Quality Improvement Nonperforming loans 1,2 Accruing loans past due 1,3 30-89 Days 90 Days + $5.7 $5.8 $2.4 $2.5 $5.1 $4.8 $1.9 $1.4 $.9 $.8 $.6 $.6 4Q09 1Q10 2Q10 3Q10 4Q09 1Q10 2Q10 3Q10 Net charge-offs Allowance 4 to NPLs 1,2 Loan sales impact 104% 108% $75 89% 92% $835 $840 $691 $614 4Q09
Slide 8: Net Interest Income, Provision and Credit Risk-Adjusted Net Interest Margin
Net Interest Income, Provision and Credit Risk-Adjusted Net Interest Margin 1 Net interest income Margin trend Net interest margin Credit risk-adjusted NIM 1 $2,435 Annualized provision/average interest-earning assets $2,215 4.05% 3.96% ($93) ($56) ($71) 4.24% 4.35% 2Q10 adjustments² Loan 2.25% 3.10
Slide 9: Pretax Pre-Provision Earnings Continued to Significantly Exceed Credit Costs
Pretax Pre-Provision Earnings 1 Continued to Significantly Exceed Credit Costs 3Q10 Pretax pre-provision earnings 1 /provision trend Pretax pre-provision earnings 1 $3.6 Provision X= as a multiple of $2,000 $1,500 $2.2 1.5x 2.3x 1.8x 2.2x $1.4 $1,000 3.0x $.5 $500 $0 Total Noninterest Pretax Provisi
Slide 10: Increased Capital and High Quality Structure
Increased Capital and High Quality Structure Tier 1 common capital ratio Highlights 9.6% 1 Further improvement in quality of 8.3% 7.9% capital Capital priorities 6.0% - Maintain strong capital levels - Support our clients - Invest in our businesses - Basel III clarity - Return capital to shareholder
Slide 11: Framework for Success
Framework for Success PNC Business Strategic Key Metrics Sept. 30, 2010 Action Plans Model Objective Loans to Maximize credit portfolio value Staying core deposits ratio 84% 80%-90% Reposition deposit gathering funded (as of) strategies Provision to Focus “front door” on risk-adjusted Returning to a
Slide 12: Summary
Summary The execution of PNC’s business model continued to deliver strong results PNC is focused on quality growth across the franchise with a proven disciplined approach PNC is well-positioned to achieve greater shareholder value PNC Continues to Build a Great Company. 12
Slide 13: 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 14: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •We will be impacted by the extensive reforms enacted in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Further, as much of that Act will require the adoption of implementing regulations by a number of di
Slide 15: 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 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended September 30, 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,
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the nine months ended September 30, 2010 Net income attributable to Diluted EPS Adjustments, Income taxes common from net Average Return on In millions except per share data pretax (benefit) 1 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 three months ended Sept. 30, 2010 June 30, 2010 Mar. 31, 2010 Dec. 31, 2009 Sept. 30, 2009 In millions except ratio and per share data Total revenue $3,598 $3,912 $3,763 $4,886 $3,853 Noninterest expense 2,158 2,002 2,113 2,209 2,214 Pretax pre-provisi
Slide 19: 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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