Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays London Conference 2011
29 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, May 23, 2011
Slide 1: The PNC Financial Services Group, Inc. Barclays London Conference
The PNC Financial Services Group, Inc. Barclays London Conference May 23, 2011 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: PNC Continues to Build a Great Company
Today’s Discussion PNC Continues to Build a Great Company. PNC’s powerful franchise and proven business model are designed to deliver strong results Delivered strong financial performance and positioned for even greater shareholder value Client momentum is building across our businesses PNC Continue
Slide 4: PNC's Powerful Franchise
PNC’s Powerful Franchise (1) Rankings source: SNL DataSource; Banks headquartered in U.S. Assets rank excludes Morgan Stanley and Goldman Sachs.
Slide 5: PNC's Successful Business Model
PNC’s Successful Business Model Staying core funded and disciplined in our deposit pricing Returning to a moderate risk profile Leveraging customer relationships and our strong brand to grow high quality, diverse revenue streams Focus on creating positive operating leverage while investing in innova
Slide 6: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Change from: Category (billions ) Mar. 31, 2011 Dec. 31, 2010 Dec. 31, 2008 Highlights Investment securities $61 ($3) $18 Core commercial loans ¹ (12) Core commercial real estate ¹ (1) (6) Core consumer loans ¹ (1) Distressed portfolio loans ² (1) (13)
Slide 7: Relative Balance Sheet Strength
Relative Balance Sheet Strength 1Q11 loans/deposits 1Q11 Tier 1 common ratio 1Q11 reserves/loans 68% 80% 82% 84% 90% 91% 93% 94% 94% 94% 96% 99% 103% JPM KEY PNC RF WFC BAC STI CMA USB FITB BBT COF MTB 4.34% 4.29% 4.16% 4.08% 3.84% 3.56% 3.19% 2.80% 2.80% 2.64% 2.52% 2.44% 2.17% 1.73% JPM PNC BAC CO
Slide 8: Credit Trends Continue to Improve
Credit Trends Continue to Improve Accruing loans past due 1,2 Provision and net charge-offs Criticized commercial loans Nonperforming loans 1,3 $2.5 $1.9 $1.4 $1.4 $1.4 $751 $486 $442 $421 $840 $614 $791 $823 $691 $533 1Q10 2Q10 3Q10 4Q10 1Q11 30-89 Days 90 Days + $.8 $.6 $.6 $.5 $.5 1Q10 2Q10 3Q10
Slide 9: PNC's Balance Sheet Is Positioned for Higher Interest Rates
PNC’s Balance Sheet Is Positioned for Higher Interest Rates PNC 1Q11 NII Sensitivity Effect on NII in 1 st year from gradual interest rate change over following 12 months Effect on NII in 2 nd year from gradual interest rate change over preceding 12 months (6) (5) (4) (3) (2) (1) 0% 1% 2% 3% 4% 5% 6
Slide 10: Financial Performance
Financial Performance Strong Earnings 1Q11 4Q10 1Q10 Valuation Drivers 1Q11 4Q10 1Q10 Operating Leverage 1Q11 4Q10 1Q10 Performance Measures 1Q11 4Q10 1Q10 Net income ($ millions) $832 $820 $671 Earnings per diluted share $1.57 $1.50 $0.66 Tier 1 common capital ratio 10.3% 9.8% 7.9% Book value per c
Slide 11: Core and Provision-Adjusted Net Interest Income Trends
Core 1 and Provision-Adjusted 2 Net Interest Income Trends (millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Core NII ¹ $1,939 $1,895 $1,890 $1,857 $1,895 Scheduled purchase accounting accretion Cash recoveries ² Total NII $2,379 $2,435 $2,215 $2,201 $2,176 Provision Provision-adjusted NII ³ $1,628 $1,612 $1,729
Slide 12: Diversified Sources of Fee Income
Diversified Sources of Fee Income 1Q YoY change in noninterest income Mar. 31, 2011 Asset management Consumer services Corporate services Deposit service charges 18% 21% 13% 15% 8% Other 1 16% Residential Mortgage Growth strategies Equity Mgmt/ Trading 9% 18% 5% 4% 3% 2% 1% 1% -6% -6% -7% -9% -16% -
Slide 13: Focus on Well-Managed Expenses
Focus on Well-Managed Expenses Expense management strategies YoY change in noninterest expense Expense management is subject to legal and regulatory contingencies. See Note 16 Legal included in Part I, Item 1 of PNC’s 1Q11 Form 10-Q. Also refer to the economic assumptions in the Cautionary Statement
Slide 14: Delivering Strong Returns
Delivering Strong Returns 1Q11 return on average assets 1Q11 return on Tier 1 common capital ¹ Annualized dividend yield ² 1.34% 1.29% 1.23% 1.21% 1.19% 1.06% 0.96% 0.77% 0.60% 0.43% 0.35% 2.05% 0.21% COF USB PNC WFC MTB KEY JPM FITB CMA BBT STI BAC RF Peer Source: SNL DataSource and company reports
Slide 15: Outlook – Full Year 2011 vs. 2010
Outlook 1 – Full Year 2011 vs. 2010 Balance Sheet Income Statement Commercial loan growth is expected Continue to shift deposit mix towards transaction accounts Core NII expected to increase by $100 million or more Purchase accounting accretion expected to decline by as much as $700 million, resulti
Slide 16: A Demonstrated Ability to Achieve Greater Shareholder Value
A Demonstrated Ability to Achieve Greater Shareholder Value Achieving greater shareholder value As of quarter end. (1) Tangible book value per share calculated as book value per share less total intangible assets per share. PNC believes that tangible book value, a non-GAAP measure, is useful as a to
Slide 17: Strong Momentum – Retail Banking
Strong Momentum – Retail Banking Retail Banking Mix of checking relationships Growth strategies Growth in Checking relationships Growth in Online bill payment active customers 12/31/10 Goal Free checking Relationship checking Recent results (one month post launch) 100% 0% Expand market share and sha
Slide 18: @PNC
@PNC
Slide 19: Strong Momentum – Corporate & Institutional Banking
Strong Momentum – Corporate & Institutional Banking Growth strategies 65% 59% 53% 54% Strong Momentum – Corporate & Institutional Banking Continue to add new clients across the footprint - Goal of 1,000 for 2011 Leverage PNC’s loan syndication capabilities as a leader in the middle- market Deepening
Slide 20: PNC's Growth Opportunities
PNC’s Growth Opportunities Building Momentum
Slide 21: Summary: PNC Continues to Build a Great Company
Summary PNC Continues to Build a Great Company. PNC Continues to Build a Great Company. PNC’s powerful franchise and proven business model are designed to deliver strong results Delivered strong financial performance and positioned for even greater shareholder value Client momentum is building acros
Slide 22: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix
Slide 23: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix
Slide 24: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix
Slide 25: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 26: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 27: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 28: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 29: 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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