Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2022 Earnings Presentation
23 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 15, 2022
Slide 1: Second Quarter 2022 Earnings Conference Call
Exhibit 99.2 Second Quarter 2022 Earnings Conference Call July 15, 2022 The PNC Financial Services Group © PNC
Slide 2: Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and @®PNC 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 c
Slide 3: Second Quarter 2022 Highlights
▪ – – – – – – – – Net Income $1.5 billion Diluted Earnings Per Share $3.39 Loan to Deposit Ratio 71% Linked Quarter Operating Leverage 7% Return on Common Equity 13.52% – Adjusted diluted earnings per share (EPS) is calculated without the impact of $14 million in integration costs. See Non-GAAP reco
Slide 4: Sales and Growth in BBVA USA Markets
✓ ✓ ✓ ✓ ✓ – Corporate Banking and Commercial Banking sales represent projected first year credit and non-credit product revenue. BBVA USA markets represent markets that were new or significantly expanded as a result of the BBVA USA acquisition, which include California, Nevada, Arizona, Colorado, Ne
Slide 5: Balance Sheet: Well-Positioned Balance Sheet
Balance Sheet: Well-Positioned Balance Sheet ®PNC 2022 vs. 1022 2Q22 vs. 2021 Average balances; $ billions 2022 $ Chg. % Chg. $ Chg. % Chg. Commercial $207.6 $12.0 6% $31.8 18% Consumer $97.2 $2.4 2% $17.4 22% Total loans $304.8 $14.1 5% $49.2 19% Investment securities $134.7 $0.8 1% $26.2 24% Feder
Slide 6: Executing on BBVA USA Opportunities
BBVA USA Exits and PPP Forgiveness Executing on BBVA USA Opportunities − Acquisition Closed 6/1/21
Slide 7: Balance Sheet: Strong Core Deposit Base
Balance Sheet: Strong Core Deposit Base Composition of Deposit Portfolio: 2Q22 Average $206.0 Consumer Inter Average balances, $ $91.1 Commercial interest-bearing $23.6 Consumer Noninterest-bearing $ billions Average balances, PNC Linked Quarter Change in Average Deposits $453.3 +$1.5 $446.5 Commerc
Slide 8: Balance Sheet: Well-Positioned Securities Portfolio
Balance Sheet: Well-Positioned Securities Portfolio Average Securities $133.9 $134.7 $132.4 93% $120.6 Suz . $132.3 $126.4 $108.5 $119.1 $107.0 (1) 3 © © 1.89% a 2021 3021 4a21 1022 2022 3/31/2022 mAFS HTM Average Securities Yield MAFS all activity, maturities, acer ortization prepaymer trade date a
Slide 9: Income Statement: Generated 7% Positive Operating Leverage
Income Statement: Generated 7% Positive Operating Leverage @PNC % Chg. 2022 vs. $ millions 2Q22 1022 2021 1Q22 2021 Revenue $5,116 $4,692 $4,667 9% 10% Noninterest expense 3,244 3,172 3,050 2% 6% Pretax, pre-provision earnings (non-GAAP) $1,872 $1,520 $1,617 23% 16% Provision for (recapture of) cred
Slide 10: Income Statement: Diversified Business Mix
Income Statement: Diversified Business Mix @®PNC Total Revenue Details of Revenue 22 Basis Points of Net Interest Margin Expansion Net Interest Income +9%; Noninterest Income +9% 2022 vs. 1022 $ millions 2022 1022 $Chg. %Chg. $5,197 $5,127 $5,116 Net interest income $3,051 $2,804 $247 9% Asset manag
Slide 11: Income Statement: Focused On Controlling Expenses
Income Statement: Focused On Controlling Expenses Noninterest Expense Expenses Remain Well Controlled; +2% Linked Quarter $3,771 $3,587 $3,244 $3,050 $3,352 $3,400 pa $3,157 $3,235 $2,949 rex) 2 } z Po 2021 3Q21 4021 1Q22 2Q22 m Integration Expense ™ Noninterest Expense (ex. Integration Expense) © E
Slide 12: Credit: Strong Credit Quality Performance
Credit: Strong Credit Quality Performance ®© PNC Credit Quality Metrics 2021 3021 4021 1022 2022 Nonperforming Loans (NPLs) NPLs / Total Loans (Period End) 0.96% 0.87% 0.86% 0.78% 0.66% $2,779 Delinquencies / Total Loans (PeriodEnd) 0.47% 0.51% 0.69% 0.58% 0.49% $2,528 NCOs / Average Loans 0.48% 0.1
Slide 13: Outlook: Third Quarter 2022 Compared to Second Quarter 2022
Outlook: Third Quarter 2022 Compared to Second Quarter 2022 (PNC (6 millions; except average loans, $ billions) 2022 3022 Guidance Average loans $304.8 Up 1% - 2% Net interest income $3,051 Up 10% - 12% Noninterest income $2,065 Down 3% - 5% Revenue $5,116 Up 4% - 6% Noninterest expense $3,244 Stabl
Slide 14: Outlook: Full Year 2022 Compared to Full Year 2021
Outlook: Full Year 2022 Compared to Full Year 2021 @PNC (6 mitions; except loans, $ billions) 2021 2022 Guidance Average loans $268.7 Up approximately 13% Period-end Loans (as of 12/31/21) $288.4 Up approximately 8% Revenue $19,211 Up 9% - 11% Noninterest expense excl. integration expense (non-GAAP)
Slide 15: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @®PNC 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 r
Slide 16: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @®PNC 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
Slide 17: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking @®PNC Information = Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportuniti
Slide 18: Appendix: Well-Reserved for the Current Environment
$ millions Appendix: Well-Reserved for the Current Environment @PNC Allowance for Credit Losses (ACL) ($114) +$60 Portfolio Changes Economic / Qualitative Factors ACL to Total Loans ACL to Total Loans ACL ACL 3/31/22 6/30/22 ~ ACL is Allowance for Loan and Lease Losses plus Allowance for Unfunded Le
Slide 19: Appendix: Integration Costs Incurred Since Announcement
Appendix: Integration Costs Incurred Since Announcement Acquisition Integration Cost Update Approximately 99% of Integration Costs Incurred as of 6/30/22 @©PNC Total Since $ millions 4020 1021 2021 3021 4021 1022 2022 Announcement Write-offs $--- - $120 $--- $--- \ $120 Contra-revenue Fee income ear
Slide 20: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (non-GAAP) ®PNC For the three months ended $ millions, except per share data June 30, 2022 March 31, 2022 June 30, 2021 Book value per common share $101.39 $106.47 $120.25 Tangible book value per common share Common share
Slide 21: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Adjusted Income Statement Results (non-GAAP) ®PNC For the three months ended $ millions, except per share data June 30, 2022 March 31, 2022 June 30, 2021 Net interest income $3,051 $2,804 $2,581 Noninterest income 2,065 1,888 2,086 Total Revenue $5,116 $4,69
Slide 22: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation @®PNC Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended $ millions June 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sept. 30, 2021 June 30, 2021 Net interest income $3,051 $2,804 $2,862 $2,856 $2,581 Taxable-equivalent adjustments 25 22 2
Slide 23: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation ®PNC Noninterest Expense excluding Integration Expense and Adjusted Efficiency (non-GAAP) For the three months ended For the year ended $ millions June 30, 2022 Mar. 31, 2022 June 30, 2021 Dec. 31, 2021 Noninterest expense $3,244 $3,172 $3,050 $13,002 Integr
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