Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2007 Earnings Presentation
16 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 18, 2007
Slide 1: The PNC Financial Services Group, Inc. Third Quarter 2007 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Third Quarter 2007 Earnings Conference Call October 18, 2007
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information This presentation contains forward-looking statements regarding our outlook or expectations relating to PNC’s future business, operations, financial condition, financial performance and asset quality. Forward-looking
Slide 3: Continuing to Execute on Our Strategies
Continuing to Execute on Our Strategies 2007 Third Quarter Highlights Organic client growth is strong Expense base contained and well managed Primary businesses met or exceeded expectations Asset quality remains strong Mercantile integration successful Well-positioned balance sheet
Slide 4: Execution Delivers Outstanding Results
Execution Delivers Outstanding Results Key Take-Aways Reported 3Q07 earnings of $1.19 per diluted share 1 Adjusted earnings of $1.37 per diluted share Diverse revenue streams delivering strong results despite market volatility Continued to create year-to-date positive operating leverage 2 on an adju
Slide 5: Growing High Quality Revenue Streams
Growing High Quality Revenue Streams Revenue Mix Nine months ended September 30, As Adjusted 1,2 $5.5 2007 Mix 5.0 2007 vs 2006 1,3 4.5 2006 Mix 4.0 Noninterest Income +15% 3.5 Noninterest 58% Income 3.0 61% 2.5 2.0 1.5 Deposit NII +32% Deposit NII 26% 1.0 23% 0.5 Loan NII Loan NII 16% +20% 16% $0.0
Slide 6: Creating Positive Operating Leverage
Creating Positive Operating Leverage Growing Revenues Faster Than Expenses Trend Continues¹ billions Compound Annual Nine months ended September 30, as adjusted $7 Growth Rate (2004 – 2006) 2007 vs 2006 $6 Revenue 9% Revenue +20% $5 $4 Expense Expense +15% $3 7% $2 $1.5 $1.2 $1.3 $1 Net Income Net I
Slide 7: Maintaining a Moderate Risk Profile
Maintaining a Moderate Risk Profile Credit Risk Profile Well-Positioned for the Yield Curve Strong credit quality Duration of equity – 3 years Credit decisions driven by risk- Low loan to deposit ratio adjusted returns High fee income to revenue Minimal exposure to subprime percentage mortgages, hig
Slide 8: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-loo
Slide 9: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Our ability to implement our business initiatives and strategies could affect our financial performance over the next several years. •Legal and regulatory developments could have an impact on our ability to operate our
Slide 10: Additional Information About The PNC/Sterling Financial Corporation Transaction
Additional Information About The PNC/Sterling Financial Corporation Transaction Appendix The PNC Financial Services Group, Inc. and Sterling Financial Corporation will be filing a proxy statement/prospectus and other relevant documents concerning the merger with the United States Securities and Exch
Slide 11: Additional Information About The PNC/Yardville National Bancorp Transaction
Additional Information About The PNC/ Yardville National Bancorp Transaction Appendix The PNC Financial Services Group, Inc. (“PNC”) and Yardville National Bancorp (“Yardville”) have filed with the United States Securities and Exchange Commission (the “SEC”) a proxy statement/prospectus and other re
Slide 12: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Earnings Summary THREE MONTHS ENDED September 30, 2007 June 30, 2007 In millions, except per share data Adjustments, Net Diluted Adjustments, Net Diluted Pretax Income EPS Pretax Income EPS Net income, as reported $407 $1.19 $423 $1.22 Adjustments: BlackRock L
Slide 13: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – For the Nine Months Ended September 30 NINE MONTHS ENDED September 30, 2007 September 30, 2006 In millions As Reported Adjustments As Adjusted (a) As Reported Adjustments As Adjusted (b) Net interest income $2,122 $2,122 $1,679 ($10)
Slide 14: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – For the Three Months Ended For the three months ended September 30, 2007 PNC PNC % Change vs. June 30, 2007 In millions As Reported Adjustments (a) As Adjusted Reported Adjusted Net interest income $761 $761 Loan net interest income
Slide 15: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – 2004 to 2006 BlackRock For the year ended December 31, 2006 PNC Deconsolidation and BlackRock PNC In millions As Reported Adjustments (a) Other Adjustments Equity Method As Adjusted Net interest income $2,245 $(10) $2,235 Provision f
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – 2004 to 2006 (continued) For the year ended December 31, 2004 BlackRock PNC Deconsolidation and BlackRock PNC In millions As Reported Other Adjustments Equity Method As Adjusted Net interest income $1,969 $(14) $1,955 Provision for c
PNC Financial Services Group — Q3 2007 Earnings Presentation on 6ix