Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Citigroup Financial Services Conference 2011
27 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Mar 9, 2011
Slide 1: The PNC Financial Services Group, Inc. Citigroup Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Citigroup Financial Services Conference March 9, 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 PNC’s powerful franchise and ability to execute delivered record results in 2010 PNC’s business model is designed to deliver strong results and long-term value PNC has momentum and is positioned to achieve even greater shareholder value PNC Continues to Build a Great Company. 3
Slide 4: PNC's Powerful Franchise
A Powerful PNC’s Powerful Franchise Franchise and Record Results Dec. 31, 2010 U.S. Rank1 th Deposits $183B 6 th Assets $264B 6 Branches 2,470 5 th th ATMs 6,673 5 CO KS Record 2010 net income of $3.4B OK Asset Management TX One of the largest bank-held asset managers in the U.S. Retail Corporate &
Slide 5: PNC's Successful Business Model
Designed to PNC’s Successful Business Model Deliver Strong Results Staying core funded and disciplined in our deposit pricing Returning to a moderate risk profile Leveraging customer relationships and our strong brand to grow high quality, diverse revenue streams 1 Creating positive operating levera
Slide 6: PNC's Higher Quality, Differentiated Balance Sheet
PNC’s Higher Quality, Designed to Deliver Differentiated Balance Sheet Strong Results Dec. 31, Change from Dec. 31, 3 Category (billions) 2011 expectations 2010 2008 Investment securities $64 $21 48% 1 Improving environment for Core loans 136 (13) (9%) corporate loan demand 2 Distressed loans 15 (12
Slide 7: Returning to a Moderate Risk Profile
Designed to Returning to a Moderate Risk Profile Deliver Strong Results 1 2010 key metrics 2010 reserves / NCOs MTB 2.6 X 3.68% PNC 1.7 3.25% 3.27% CMA 1.6 2.97% JPM 1.4 2.55% 2.65% WFC 1.3 2.01% 1.91% FITB 1.3 USB 1.3 BAC 1.2 RF 1.1 BBT 1.1 STI 1.0 Nonperforming Nonperforming Net charge- Allowance
Slide 8: Strong Pretax Pre-Provision Earnings and Well-Controlled Expenses Drive Strong ROAA
1 Strong Pretax Pre-Provision Earnings and Designed to Deliver Well-Controlled Expenses Drive Strong ROAA Strong Results Year ended December 31, 2010 2010 return on average assets COF 1.37% $15.2 PNC 1.28% USB 1.14% MTB 1.08% WFC 1.03% $8.6 JPM 0.85% $6.6 FITB 0.67% KEY 0.62% $3.4 $2.5 BBT 0.53% CMA
Slide 9: Expect Core and Provision-Adjusted Net Interest Income to Improve in 2011
1 2 Positioned to Expect Core and Provision-Adjusted Net Achieve Greater Interest Income to Improve in 2011 Shareholder Value 5 (billions) 1Q10 2Q10 3Q10 4Q10 FY10 2011 expectations Core NII 1 $1.9 $1.9 $1.9 $1.9 $7.6 Purchase accounting Although lower NII and NIM is $.4 $.5 $.3 $.3 $1.6 expected, c
Slide 10: Provision-Adjusted Net Interest Margin Trend
Positioned to 1 Achieve Provision-Adjusted Net Interest Margin Trend Greater Shareholder Value 1 2 PNC provision-adjusted margin vs. Peers 2 PNC Peers 4.50% 3.43% 3.40% 3.32% 3.38% 3.33% Average 3.50% 3.03% 2.90% PNC 3.26% 2.89% 3.27% 3.14% 2.97% 2.50% 2.27% 2.76% 2.68% 2.49%3 Peers² 2.17% 2.69% 1.5
Slide 11: Diversified Sources of Fee Income
Positioned to Achieve Diversified Sources of Fee Income Greater Shareholder Value YoY change in noninterest Year ended December 31, 2010 2011 drivers income MTB 1% Noninterest income Diversified fee sources USB 0% -2% PNC¹ Residential Mortgage Sales and service model -2% Consumer 12% STI services 21
Slide 12: Disciplined Expense Management
Positioned to Achieve Disciplined Expense Management Greater Shareholder Value 2010 noninterest expense highlights Expenses of $8.6 billion decreased 5% YoY Integration costs totaled $387 million in 2010 Achieved acquisition cost savings of $1.8 billion annualized in 4Q10 2011 outlook Expenses expec
Slide 13: Strong Momentum – Retail Banking
Positioned to Achieve Strong Momentum – Retail Banking Greater Shareholder Value Retail Banking Checking relationships Most of 2010 client growth occurred in 5,465 5,390 2H10 following conversions 4Q10 checking relationships up 27,000 in a typically flat seasonal quarter 4Q09 4Q10 Customer engagemen
Slide 14: Products Designed to Accelerate Retail Market Share Expansion
Positioned to Products Designed to Accelerate Achieve Greater Retail Market Share Expansion Shareholder Value Industry challenge Regulatory changes are impacting revenue streams Some competitors have chosen to increase fees and/or reduce customer choices PNC strategy Expand market share and share of
Slide 15: Strong Momentum – Corporate & Institutional Banking
Positioned to Strong Momentum – Achieve Greater Corporate & Institutional Banking Shareholder Value Corporate & Institutional Banking 1 Treasury management revenue 85% of Corporate Banking relationship $1,225 managers sold to a new name in 2010, with $1,137 many bringing in five or more All relation
Slide 16: Strong Momentum – Asset Management Group
Positioned to Achieve Strong Momentum – Asset Management Group Greater Shareholder Value Asset Management Group 1 Channel sales Record sales year in 2010, including +60% 60% YoY increase in channel sales, a strategic focus for PNC Total assets under administration of $212 billion, discretionary asse
Slide 17: Remaining Disciplined With Our Capital
Positioned to Achieve Remaining Disciplined With Our Capital Greater Shareholder Value 4Q10 Tier 1 common ratio 2010 return on Tier 1 common capital 1 CMA 10.1% COF 24.6% PNC 9.8% MTB 17.8% JPM 9.8% USB 16.9% KEY 9.3% PNC 16.0% BBT 9.1% WFC 15.6% COF 8.8% JPM 15.1% BAC 8.6% FITB 10.0% WFC 8.3% KEY 8
Slide 18: Possible Impact of Basel III
Positioned to Achieve Possible Impact of Basel III Greater Shareholder Value Tier 1 common ratio PNC’s capital management priorities 12.6% Increase the return of capital to shareholders via dividends and share repurchases; subject 10.0% to regulatory approval 9.8% Maintain ample capacity to meet the
Slide 19: A Demonstrated Ability to Achieve Greater Shareholder Value
Positioned to A Demonstrated Ability to Achieve Achieve Greater Greater Shareholder Value Shareholder Value Achieving greater shareholder value 1 Book value per share Tangible book value per share Stock price $60.72 $56.29 $35.82 $49.00 $39.44 $13.10 4Q08 4Q10 4Q08 4Q10 4Q08 4Q10 As of quarter end.
Slide 20: Summary
Summary PNC’s powerful franchise and ability to execute delivered record results in 2010 PNC’s business model is designed to deliver strong results and long-term value PNC has momentum and is positioned to achieve even greater shareholder value PNC Continues to Build a Great Company. 20
Slide 21: 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 22: 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 institutions industry generally.
Slide 23: 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 24: 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 Net interest margin, as reported 3.93% 3.96% 4.35% 4.24% Provision for credit losses $442 $486 $823 $751 Avg. interest earning assets $223,795 $223,677 $224,580 $
Slide 25: 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 Net interest margin, as reported 3.93% 3.96% 4.35% 4.24% Purchase accounting accretion $344 $325 $540 $440 Purchase accounting accretion, if annualized $1,365 $1,
Slide 26: 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 $21,188 $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 27: 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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