Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — BancAnalysts Association of Boston Conference 2024
29 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Nov 8, 2024
Slide 1: Driving Growth Through National Expansion
Driving Growth Through National Expansion BancAnalysts Association of Boston Conference November 8, 2024 Exhibit 99.1
Slide 2: Regarding Forward-Looking and non-GAAP Financial Information
Regarding Forward-Looking and non-GAAP Financial Information This 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 corporate website. The presentation contains forward
Slide 3: Driving for Scale
3 Driving for Scale Retail Banking Corporate & Institutional Asset Management Loans $96bn Deposits #5 Retail Franchise1 $249bn Client Assets $84bn Coast-to-Coast Branches 2,242 Loans #4 C&I Lender2 $204bn Deposits $146bn Fee Revenue Mix3 38% Loans $16bn Deposits $27bn Client Assets $430bn YTD Manage
Slide 4: Focus on Organic Investment and Growth
4 Focus on Organic Investment and Growth • Branch Investments • Digital Platforms • Relationship Rewards • Treasury Management • Credit Card • PNC Investments • Mass Affluent • Private Bank Grow DDAs Grow Payments Grow Client Assets Grow Expansion Markets – DDA = Demand Deposit Account. Retail Banki
Slide 5: Top-Rated Businesses Under-Exposed to Large and Fast-Growing Markets
5 Top-Rated Businesses Under-Exposed to Large and Fast-Growing Markets 77% 58% 54% 52% 48% 37% PNC Large Bank 1 Large Bank 2 Large Bank 3 Large Bank 4 Large Bank 5 #1 in Corporate Client Satisfaction1 #1 #1 Reliability Responsiveness #1 #1 Customer Focus Transparency Strong National Brand Perception
Slide 6: Expanding Into Larger and Faster Growing Markets
6 Expanding Into Larger and Faster Growing Markets Bank / Branch Acquisitions Organic Market Build-Outs Seattle NashvilleKansas City Minneapolis Denver Las Vegas Phoenix Dallas Houston Boston Portland Successful Expansion Through Build Or Buy San Diego (Branch Acquisition)
Slide 7: Our Ongoing Franchise Transformation
7 Our Ongoing Franchise Transformation PNC Weighted Avg. Population Growth2 1.2% 2.4% C&IB / AMG # of Top-30 MSAs3 9 / 30 30 / 30 # of Prospects ~90k ~227k # of 10 Fastest Growing MSAs4 0 / 10 10 / 10 Retail # of Top-30 MSAs3 10 / 30 26 / 30 # of 10 Fastest Growing MSAs4 2 / 10 9 / 10 % of U.S. with
Slide 8: PNC Expansion Markets – Current Profile
8 PNC Expansion Markets – Current Profile Nashville Miami Dallas Austin Birmingham San Diego San Francisco Denver Building Our Brand in Expansion Markets – AUM = Assets under management. Average loans and average deposits as of 3Q24. AUM, branches and ATMs as of 9/30/2024. For definition of PNC Expa
Slide 9: Consistent Expansion Markets Playbook
9 Consistent Expansion Markets Playbook • Leverage Regional President model to become deeply entrenched in communities • Hire top local talent and combine with relocated PNC bankers • Retain client-facing top talent • Rigorous client selection and grow with the great ones • Drive value-added strateg
Slide 10: Expansion Market Sales Growing Rapidly – C&IB and AMG
10 Expansion Market Sales Growing Rapidly – C&IB and AMG Expansion Market C&IB and AMG Sales1 2024 C&IB & AMG Sales1 48% 52% 6% 13% 17% 14% 17% 19% 22% 29% 32% 34% 45% 46% 48% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 – 2024 C&IB and AMG sales annualized as of year-to-date 9/3
Slide 11: Expansion Market Sales Growing Rapidly – Retail
11 Expansion Market Sales Growing Rapidly – Retail Expansion Market Consumer DDA Production 2024 Consumer DDA Production 56% 14% 16% 17% 17% 17% 18% 19% 21% 23% 28% 34% 37% 39% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 – DDA = Demand Deposit Account. 2024 Consumer DDA producti
Slide 12: Executing on the Playbook
12 Executing on the Playbook No Change to Risk AppetiteHire and Keep Great People – 2024 new C&IB clients annualized as of year-to-date 9/30/2024. For definition of PNC Expansion Markets and PNC Legacy Markets refer to definition 1 and 2 on slide 28. ~90% talent retention since 2011 Retained Volunta
Slide 13: Executing on the Playbook: Build Deep Relationships
45% 45% 54% 56% 49% 65% 62% 2018 2019 2020 2021 2022 2023 2024 13 Executing on the Playbook Build Deep Relationships Non-credit % of C&IB sales in Expansion Markets1 77% 76% 78% 57% 77% 79% 80% 2018 2019 2020 2021 2022 2023 2024 Drive Value-Added Strategy TM penetration in Expansion Markets2 TM Clie
Slide 14: Executing on the Playbook – Client Example
14 Executing on the Playbook – Client Example Active calling process, bringing value-added ideas, but no revenue “Patient, persistent, consistent” Led significant securitization during COVID, JLA on revolver; passive bookrunner on bond issuance; won TM business “Be there when great clients need it”
Slide 15: Bolstering Branch Presence in Expansion Markets
15 Bolstering Branch Presence in Expansion Markets Houston ~15 Branches San Antonio ~5 Branches Austin ~10 Branches Denver ~15 Branches Dallas ~20 Branches Miami ~5 Branches – For definition of PNC Expansion Markets refer to definition 1 on slide 28. 1Q24: Announced ~100 New Branch Builds by 2028
Slide 16: Bolstering Branch Presence in Expansion Markets
16 Bolstering Branch Presence in Expansion Markets Houston ~15 Branches San Antonio ~5 Branches Phoenix ~10 Branches Austin ~10 Branches Denver ~15 Branches Dallas ~20 Branches Atlanta ~25 Branches Charlotte ~25 Branches Raleigh ~10 Branches Orlando ~15 Branches Tampa ~20 Branches Today: Increasing
Slide 17: Densifying Retail Markets and Deepening Relationships
Dallas Houston Tampa Orlando San Antonio Denver Miami Atlanta Phoenix Austin Charlotte Raleigh Today Est. Increase in Share 17 Densifying Retail Markets and Deepening Relationships Densifying Our Branch Presence Opportunity to Further Deepen Retail Relationships Branch share in key markets1 – For fo
Slide 18: Expansion Markets Are Growing Rapidly
18 Expansion Markets Are Growing Rapidly 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2012 Alabama Charlotte Raleigh Atlanta Florida 2016 – 17 Dallas Kansas City Minneapolis Nashville Denver Houston 2021 San Diego, Austin, Tucson, San Antonio, Los Angeles, Sacramento, San Francis
Slide 19: Improving Productivity Across Markets
19 Improving Productivity Across Markets De Novo Southwest Southeast Legacy 2012 2016 2020 2024 C&IB and AMG Expansion Market vs. Legacy Market Revenue per Capita1 – For definition of PNC Expansion Markets and PNC Legacy Markets refer to definition 1 and 2 on slide 28. For additional footnoted infor
Slide 20: Significant Upside to Expansion Market Revenue
20 Significant Upside to Expansion Market Revenue 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Near-Term Target Long-Term Opportunity $3.5bn >$6bn – For definition of PNC Expansion Markets and PNC Legacy Markets refer to definition 1 and 2 on slide 28. For additional footnoted in
Slide 21: National Expansion Key Takeaways
21 National Expansion Key Takeaways Relatively Low Risk Organic Strategy with Attractive Returns Significant Incremental Organic Revenue Opportunity Accelerating Retail Expansion With Incremental Upside National Expansion Supports Sustained Long-Term Growth for PNC
Slide 22: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement 22 Regarding Forward-Looking Information We make statements in this presentation, and we may from time to time make other statements, regarding our outlook for financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and rati
Slide 23: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement 23 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. These statements are based on our views that
Slide 24: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement 24 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
Slide 25: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 25 Expansion market average loans and average deposits are non-GAAP measures and is calculated based on total PNC average balances minus non-Expansion Market average balances. We believe that Expansion Market average loans and average deposits are useful too
Slide 26: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 26 The “Other” category, for the purposes of this reconciliation, includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as asset and liability management activities, including net securities gains o
Slide 27: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation 27 Expansion market AMG assets under management is a non-GAAP measure and is calculated based on AMG assets under management minus non-Expansion Market AMG assets under management. We believe that Expansion Market AMG assets under management is a useful tool
Slide 28: Footnotes and Definitions
Footnotes and Definitions Definitions 1. PNC Expansion Markets: refer collectively to PNC’s Southeast, Southwest and De Novo markets, excluding the business operations of PNC’s national businesses. Southeast markets include PNC markets in the states of Florida, Georgia, North Carolina and South Caro
Slide 29: Footnotes and Definitions
Footnotes and Definitions Slide 8 - PNC Expansion Markets – Current Profile 1. Average loans and average deposits in PNC Expansion Markets represents a non-GAAP measure and is calculated as total average loan and average deposit balances in PNC Expansion Markets for 3Q24. See non-GAAP reconciliation
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