Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays Global Financial Services Conference 2013
27 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Sep 9, 2013
Slide 1: The PNC Financial Services Group, Inc. Barclays Global Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Barclays Global Financial Services Conference September 9, 2013
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: Expanding our Leading Franchise
Expanding our Leading Franchise June 30, 2013 U.S. Rank (1) Deposits $212B 7 th Assets $304B 7 th Branches 2,780 4 th CO KS ATMs 7,335 3 rd OK Asset Management TX A top 10 U.S. bank-held wealth manager Retail Banking Corporate & Institutional A leader in serving middle-market, Footprint covering nea
Slide 4: Today's Discussion
Today’s Discussion Enhancing shareholder value through focused execution of strategic priorities Demonstrated progress on strategic priorities Stronger capital position – greater flexibility for capital returns PNC Is Well-Positioned to Continue to Create Shareholder Value. 4
Slide 5: Well-Positioned to Deliver Long-Term Value
Well-Positioned to Deliver Long-Term Value Strategic Priorities Targeted Outcomes (1) Drive growth in newly acquired & underpenetrated Expand markets market share Capture more Leverage investable assets cross-sales Redefine the Retail Increase Banking business Fee income Build a stronger Residential
Slide 6: Focused Execution Yielding Results
Focused Execution Yielding Results 1H12-1H13 1H12-1H13 1H12-1H13 Pretax Revenue growth Expense growth Pre-provision earnings growth (1) (1) See Appendix for PNC reconciliation. See Notes 1 and 2 in the Appendix for further details. (2) Peer Source: SNL Datasource. See Note 3 in the Appendix for furt
Slide 7: Achieving Higher Returns
Achieving Higher Returns Return on average Return on average assets shareholders’ common equity 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 PNC Peer Average (1) PNC Peer Average (1) (1) Peer Source: SNL DataSource. See Note 3 in the Appendix for further details. 7
Slide 8: Optimizing Returns through the Cycle
Optimizing Returns through the Cycle Growth in 5 Year BBB Corporate Bond Spreads Commercial Loans (2) (12/31/09 to 6/30/13) Premium risk- adjusted returns Average 207 (1) (1) Average is calculated from January 2, 2003 through August 2, 2013. Source: Moody’s. (2) PNC’s commercial loan balance include
Slide 9: Investing in Opportunities to Grow Fee Income
Investing in Opportunities to Grow Fee Income Noninterest income % of total revenue $16.2 $15.5 $14.3 $8.0 (1) Noninterest income percentage of total revenue adjusted for pre-tax gain of $1.076 billion related to BlackRock’s acquisition of Barclays Global Investors on December 1, 2009. See Appendix
Slide 10: Deeper Penetration and Cross-sell in Underpenetrated Markets
Deeper Penetration and Cross-sell in Underpenetrated Markets Total Corporate Banking and AMG sales Leveraging cross-sell opportunity Northeast Midwest Product Growth New Corporate Banking Primary Clients Actual Annualized (1) Actual Annualized (1) Total Corporate Banking and AMG cross-sales Northeas
Slide 11: Building Momentum in Southeast Markets
Building Momentum in Southeast Markets (1) Retail Banking Corporate & Institutional Banking Total DDA households (2) Average Loans Average Loans Corporate Banking new primary clients (3) $6.5 $6.0 $5.9 $5.1 Asset Management Group Residential Mortgage New primary clients (4) Referral sales % of total
Slide 12: Capturing More Investable Assets
Capturing More Investable Assets AMG - Assets Under Administration (AUA) Highlights AMG AUA increased 4% from 12/31/12 to 6/30/13 Core net flows (1) of $2.1 billion in Discretionary AUM in 1H13 and $4.5 billion over last four quarters Fees accelerating with core net flows and new business Retail Ban
Slide 13: Transforming our Retail Banking Model
Transforming our Retail Banking Model Transitioning model based on innovation and premium value Old Model New Model Outcomes Responses Expectations of “free” New checking continuum Changing customer preferences Fair value exchange and brand Reduced revenue sources Value-based revenue model Expensive
Slide 14: Retail Banking – Redefining the Branch Network
Retail Banking – Redefining the Branch Network Successfully migrating customers to self-service – ATM/Mobile usage increasing Total deposit transactions YTD May 2012 YTD May 2013 Active online banking customers Retail Banking Headcount (HC) 6 month change (Dec. 2012 vs. Jun. 2013) 4.3 4.0 Investment
Slide 15: Retail Banking – Redefining the Branch
Retail Banking – Redefining the Branch Investing in technology Current technology initiatives – Video advisor – Employee tablet – Video wall – Deposit easy ATMs New branch formats – Flexible spaces – New sales and services focus Future technology initiatives – Assisted ATM – Video teller – Instant c
Slide 16: Building a Stronger Residential Mortgage Banking Business
Building a Stronger Residential Mortgage Banking Business Improving operational excellence and Grow the Purchase business customer experience Purchase Applications to Close Date Purchase (2) Applications (2Q13 vs. 2Q12) 29% 12% (3) (4) Origination Volume Purchase (2) Refinance $4.7 PNC’s customer lo
Slide 17: Executing on our Expense Objectives
Executing on our Expense Objectives Noninterest expense trend 1H13 Efficiency (1) ratio (1) Noninterest expense divided by total revenue. 17
Slide 18: Stronger Capital and Increased Value
Stronger Capital and Increased Value Tier 1 Common Capital Ratio Tangible Book Value Per Share (3) (1) See Note 5 in the Appendix for further details. (2) Estimated without benefit of phase-ins; estimate not provided for 2Q’12 or 3Q’12. Pending completion of PNC’s evaluation of the Basel III final r
Slide 19: Key Take-Aways
Key Take-Aways Enhancing shareholder value through focused execution of strategic priorities Demonstrated progress on strategic priorities Stronger capital position – greater flexibility for capital returns PNC Is Well-Positioned to Continue to Create Shareholder Value. 19
Slide 20: 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 21: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • PNC’s ability to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock o
Slide 22: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •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 third-party insurance, derivatives,
Slide 23: Notes
| Appendix Explanatory Notes (1) Pretax pre-provision earnings is defined as total revenue less noninterest expense. We believe that pretax pre-provision earnings, a non-GAAP measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations. (2) Pretax earnings
Slide 24: Estimated Pro forma Basel III Tier 1 Common Capital
Estimated Pro forma Basel III Tier 1 Common Capital Appendix We provide information below regarding PNC’s pro forma fully phased-in Basel III Tier 1 common capital ratio using PNC's estimated Basel III advanced approaches risk-weighted assets and how it differs from the Basel I Tier 1 common capital
Slide 25: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended In millions December 31, 2009 Total noninterest income, as reported $7,145 Total revenue, as reported $16,228 Adjustments: Pretax gain related to BlackRock's acquisition of $1,076 Barclays Global Investors on December 1, 2009 Total nonintere
Slide 26: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of In millions except per share data Dec. 31, 2007 June 30, 2013 % Change Common shareholders' equity $14,847 $36,347 Common shares outstanding 341 531 Book value per common share $43.60 $68.46 57% Goodwill and other intangible assets other than servicing r
Slide 27: Peer Group of Banks
Peer Group of Banks Appendix 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, Inc. ST
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