Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays London Conference 2013
25 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, May 21, 2013
Slide 1: The PNC Financial Services Group, Barclays London Conference
The PNC Financial Services Group, Inc. Barclays London Conference May 21, 2013 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Slide 3: Today's Discussion
Today’s Discussion Overview of the PNC franchise First quarter 2013 results PNC’s strategic priorities for growth
Slide 4: PNC's Powerful Franchise
Corporate & Institutional Asset Management Residential Mortgage PNC’s Powerful Franchise CO TX KS OK BlackRock December 31, 2012 U.S. Rank 1 Retail Banking A leader in serving middle-market customers and government entities A top 10 U.S. bank-held wealth manager A primary consumer product National d
Slide 5: Value Creation Throughout the Economic Cycle
Value Creation Throughout the Economic Cycle Financial crisis “New normal” Peer Source: SNL DataSource. (1) Tangible book value (TBV) per share calculated as book value per share less goodwill and certain other intangible assets. PNC’s book value per share was $44 and $67 at December 31, 2007 and De
Slide 6: Strong First Quarter Results in a Challenging Environment
Strong First Quarter Results in a Challenging Environment 1Q13 achievements 1Q13 financial summary Net income Diluted EPS from net income Return on average assets Continued growth in customers and loans Solid revenue and disciplined expense management drove higher earnings and returns Significant li
Slide 7: Focused on Improving Earnings in 2013
4Q12-1Q13 Expense growth 4Q12-1Q13 Revenue growth Focused on Improving Earnings in 2013 4Q12-1Q13 Pretax pre-provision earnings growth (1) (1) See Appendix for PNC reconciliation. See Note in the Appendix for further details. (2) See Note in the Appendix for further details. Peer Source: SNL Datasou
Slide 8: Effectively Managing Credit Risk
Effectively Managing Credit Risk 1Q13 loan loss reserves 1 to total loans Highlights Reflects company data for 1Q13 as of quarter-end. Peer source: SNL Datasource. (1) The allowance for loan and lease losses includes impairment reserves attributable to purchased impaired loans. (2) 1Q13 reserves/loa
Slide 9: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position (1) See Note 4 in the Appendix for further details. (2) See Note 2 on Slide 6. Pro forma Basel III Tier 1 common capital ratio estimate not provided in 1Q12.
Slide 10: Well-Positioned to Drive Growth: Strategic Priorities
Well-Positioned to Drive Growth Strategic Priorities Develop and grow in newly acquired and underpenetrated markets Capture more investable assets – build on strong AMG business model Build a stronger Residential Mortgage Banking business Redefine the Retail Banking business Manage expenses
Slide 11: Deeper Penetration and Cross-sell in Underpenetrated Markets
Highlights Deeper Penetration and Cross-sell in Underpenetrated Markets Corporate Banking is a business within Corporate & Institutional Banking. AMG refers to Asset Management Group. Solid growth in the Northeast Building momentum in Midwest markets gives us confidence as we enter the Southeast Reg
Slide 12: Newly Acquired Southeast Markets Provide Additional Opportunities
Newly Acquired Southeast Markets Provide Additional Opportunities
Slide 13: Investment & Retirement – Build on Strong AMG Business Model
Investment & Retirement – Build on Strong AMG Business Model Highlights A top 10 U.S. bank-held wealth manager - $275 billion client assets under administration (3) Approaching $1 billion in annual AMG revenues Referral sales contributed 36% of total sales in 2012 Investment and Retirement investabl
Slide 14: Building a Stronger Residential Mortgage Banking Business
Building a Stronger Residential Mortgage Banking Business Growing the right way Highlights (1) Purchase is defined as a mortgage with a borrower as part of a residential real estate purchase transaction.
Slide 15: Redefining the Retail Branch Network
Serving Customers Tomorrow - Redefining the Retail Branch Network ( 1) Percentages reflect the proportion of PNC customers considered to be traditional branch, primarily virtual or multi-channel customers based upon channels utilized for transactions. See Note 6 in Appendix for further details. (2)
Slide 16: Managing Expenses - 2013 Expense Opportunities
Managing Expenses - 2013 Expense Opportunities (1) Retail Banking Corporate & Institutional Banking Asset Management Group Residential Mortgage Banking Shared Services Lower service delivery costs Branch consolidation Staffing and back office efficiencies Enhance staffing model Review loan originati
Slide 17: Key Take-Aways
Key Take-Aways PNC has the scale and business model to win Continued expense discipline – strong commitment to continuous improvement savings Positioned in 2013 to deliver improved earnings Strategic growth priorities to create long-term value Strong capital position – greater flexibility for capita
Slide 18: 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 19: 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 20: 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 21: Notes
Notes Appendix Explanatory Notes (1) ROAA is Return on Average Assets and ROACE is Return on Average Common Equity. (6) Transactions refer to service transactions which include deposits, withdrawals and payments. Traditional branch customer is a customer who conducts greater than 80% of monthly tran
Slide 22: Estimated Pro Forma Basel III Tier 1 Common Capital
Estimated Pro Forma Basel III Tier 1 Common Capital Appendix PNC's pro forma Basel III Tier 1 common capital ratio was estimated without the benefit of phase-ins and is based on our current understanding of Basel III proposed rules. PNC utilizes this estimate to assess its Basel III capital position
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement
Slide 24: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix In millions Mar. 31, 2013 Dec. 31, 2012 % Change Net interest income $2,389 $2,424 Noninterest income $1,566 $1,645 Total revenue $3,955 $4,069 Noninterest expense ($2,395) ($2,829) Pretax pre-provision earnings $1,560 $1,240 26% Net income $1,004 $719 40% See
Slide 25: 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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