Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2020 Earnings Presentation
19 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 15, 2020
Slide 1: Second Quarter 2020 Earnings Conference Call
Exhibit 99.2 Second Quarter 2020 Earnings Conference Call July 15, 2020 The PNC Financial Services Group
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information Our earnings conference call 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 corpora
Slide 3: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights Net Income . We continued to support customers, $3.7 billion communities, and employees in a challenging economic environment Net Loss From Continuing Ops. ($0.7) billion . Strong loan and deposit growth helped Diluted Earnings Per Share expand our well-positioned bala
Slide 4: Balance Sheet: Grew While Supporting Our Customers
Balance Sheet: Grew While Supporting Our Customers Change vs. Average balances, $ billions 2Q20 1Q20 2Q19 Highlights . Reflects PPP lending and higher utilization of loan Commercial $189.3 $25.2 $29.2 commitments due to the economic impacts of COVID-19 . Linked quarter decline reflects lower credit
Slide 5: Well-Positioned with Strong Capital, Reserves and Liquidity
Well-Positioned with Strong Capital, Reserves and Liquidity Basel III Common Allowance for Credit Losses Loan to Equity Tier 1 to Total Loans Deposit Ratio Record High Level Significant Loss Absorbing Ability Low Cost Funding Base 11.3% 2.55% 87% 87% 9.7% 9.4% 75% 1.66% 1.27% 2Q19 1Q20 2Q20 6/30/19
Slide 6: Balance Sheet: Loan Growth Funded with Low Cost Deposits
Balance Sheet: Loan Growth Funded with Low Cost Deposits Loans Deposits 14% Year-over-Year Growth 23% Year-over-Year Growth $268.1 $335.2 $243.6 $189.3 $241.4 $234.8 $289.7 $164.1 $272.9 $160.1 $215.3 $201.2 4.56% 1.03% 4.08% 0.70% Average Average balances, $ billions Average Average balances, $ bil
Slide 7: Income Statement: Significant Reserve Build Impacts Results
Income Statement: Significant Reserve Build Impacts Results Change vs. $ millions 2Q20 1Q20 2Q19 Highlights . Growth primarily due to lower funding costs and higher earning Net interest income $2,527 $16 $29 asset balances partially offset by lower earning asset yields . Reflects lower service charg
Slide 8: Credit Quality: COVID-19 High Impact Industries
Credit Quality: COVID-19 High Impact Industries $19.6 billion Outstanding Loan Balances ($17.6 billion excluding PPP Loans) $11.5 billion Commercial & Industrial Loans ($9.5 billion excluding PPP Loans) $4.9 billion / 72% Utilization Leisure Recreation: Restaurants, casinos, hotels, convention cente
Slide 9: Credit Quality: Oil & Gas Loans
Credit Quality: Oil & Gas Loans $4.1 billion Outstanding Loan Balance Total Loans As of 6/30/20 $1.1 billion Exploration & Production (0.4% of Loans) $ billions Utilization Rate 33% Oil / Gas Mix 52% / 48% 1.6% Reserve-Based Structure 82% $258.2 billion $1.9 billion Midstream and Downstream (0.7% of
Slide 10: Credit: Providing Relief to Customers During Challenging Times
Credit: Providing Relief to Customers During Challenging Times . Provided assistance to nearly 280,000 consumer accounts representing $12.7 billion in balances – This includes approximately 35,000 Mortgage investor-owned accounts or $6.6 billion in balances . Compared to the peak, weekly requests ha
Slide 11: Credit: Well-Reserved For The Current Environment
Credit: Well-Reserved For The Current Environment 0.90% Net Loan Charge-Offs 1.20% Delinquencies $1,600 1.00% $1,400 0.80% $236 $1,483 $1,200 $212 0.80% $1,309 $1,310 0.70% $1,000 0.60% $800 $142 0.60% $600 0.40% 0.35% 0.35% 0.55% 0.56% $400 0.51% 0.50% 0.24% 0.20% $200 $ millions $ millions 0.00% $
Slide 12: Credit: Attribution of Change in Reserve Levels Under CECL
Credit: Attribution of Change in Reserve Levels Under CECL Allowance for Credit Losses Economic Factors $6,590 Portfolio $1,639 Changes $557 . Changes to macro-economic $4,394 . New loans scenarios . Changes in . Changes to credit quality weightings . Aging of existing assigned to the portfolio four
Slide 13: Outlook: Third Quarter 2020 and Full Year 2020 Guidance
Outlook: Third Quarter 2020 and Full Year 2020 Guidance Third Quarter 2020 Full Year 2020 Balance Average loans Down low-single digits Sheet Revenue Down 2 – 5% Net interest income Down approximately 1% Noninterest income Down 3 – 5% Income Statement Noninterest expense Flat to down Down 2 – 5% Net
Slide 14: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 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 inform
Slide 15: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement 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 and do not take into account potential legal and
Slide 16: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information − Changes to laws and regulations, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, pension, bankruptcy and other industry aspects, and changes in
Slide 17: Appendix: Non-GAAP to GAAP Reconciliation – Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity (Non-GAAP) For the three months ended June 30, Mar. 31, June 30, $ millions 2020 2020 2019 Return on average common shareholders' equity 30.11% 7.51% 11.75% Average common shareholders' equity $47,854 $45,058 $44,591 Average
Slide 18: Appendix: Non-GAAP to GAAP Reconciliation – Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (Non-GAAP) % Change 6/30/20 6/30/20 $ millions, except per share data June 30, Mar. 31, June 30, vs. vs. 2020 2020 2019 3/31/20 6/30/19 Book value per common share $115.26 $106.70 $101.53 8% 14% Tangible book value per co
Slide 19: Appendix: Non-GAAP to GAAP Reconciliation – Pretax, Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (Non-GAAP) For the three months ended % Change June 30, Mar. 31, June 30, 2Q20 2Q20 $ millions 2020 2020 2019 vs. 1Q20 vs. 2Q19 Net interest income $2,527 $2,511 $2,498 1% 1% Noninterest income 1,549 1,825 1,717 (15%) (10%) Tot
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