Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Goldman Sachs Bank Field Trip (May 2003)
28 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, May 1, 2003
Slide 1: Goldman Sachs Bank Field Trip
Tenafly, NJ May 1, 2003 The PNC Financial Services Group, Ine. Goldman Sachs Bank Field Trip
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation and other tatements made by FNC may consi foruaooking tatements wth respect to PNC's etlock or expections for earings, revenues; Expenses capa lee, aut qualty or ther fauretrancial or Business parrmatoe, srateges or expectations, ortheimpart legal regtoy
Slide 3: Neil Hall, Regional Community Banking
PNC Neil Hall Chief Executive Officer Regional Community Banking
Slide 4: Today's Discussion
Today's Discussion Regional Community Banking > Strategic overview > Regional President Model » Execution - Business Banking - Customer experience > Summary >QBA > Branch visit Neil Hall Pete Classen Jeff Schmidt Dan Tuccillo and Ellen van der Horst Neil Hall @PNC
Slide 5: Regional Community Banking
Regional Community Banking Franchise 2002 Revenue - $2.2 Bi Consumer Business fo Banking 68% pu Other Businesses 2002 Business Highlights 18 million households 193 thousand businesses Home equity ¢average) $7 billion Business banking (average) $3 billion Other commercial (average) $1 billion Net cha
Slide 6: Our Aspiration ...
Our Aspiration ... To be a leading regional bank > With fast growing checking account customer base » Demonstrated success in increasing share of wallet - Loans - Deposits - Investments We recognize our challenges » Growing share in low growth footprint » Balancing business investments with earnings
Slide 7: Committed Employees, Satisfied Customers
O O C 0 peop Committed Satisfied Employees Customers Business Growth © PNC
Slide 8: Employee Engagement and Willingness to Recommend
0 d emplo P Your Company as a Place to Work Willingness to Recommend PNG Compared to Other Companies Products and Services are 58% ian aes 50% 42% Allindustries Financial PNC 2002 2000 2001 2002 Senices % Rating "One ofthe Best" or "Above Average" * Source: Watson-Wyatt Work USA 2000 Survey © PNC
Slide 9: Checking account need and branch and customer trends
> 97% of businesses and households have a checking account need > 70%+* consider their checking bank to be primary financial service > Favorable economics: Fee revenues and low-cost funding source provider Branch and Customer Trends Number of see ranaher = ee 820 eo 800 1155 720 150 760 fs B 720 700
Slide 10: Focus on Customer Acquisition
Focus on Customer Acquisition Strategies > Competitive and attractive product offerings > Advertising positions PNC as the “bank of choice” for checking > Targeted channels that leverage our business mix Checking Relationships Acquired Thousands 250 200 160 100 0 2000 2001 2002 Sources of Customer A
Slide 11: Strategies: Customer Satisfaction
Strategies » Focus on drivers of customer satisfaction > Utilize a segmentation approach > Enhance customer experience Improved Customer Satisfaction Overall Satisfaction with PNC on% 95% ages. aqo2, I % Satisfied IB % Rated Excellent Checking Relationship Attrition Thousands 160 125 100 15 0 25 200
Slide 12: Building Deeper Relationships
Building Deeper Relationships Strategies > Increase customer loyalty and commitment to gain their trust > Knowledgeable employees enabled by customer insight > Personalized solutions built from superior conversations Improved Customer Loyalty Commitment to PNC of Customers Surveyed cen ott om 23% 20
Slide 13: An Efficient Business Model
An Efficient Business Model Investment in single operating platform complete Customer database World-class call center Continued enhancement of web-banking Genesis Balance future investments with efficiency Continue investments that enhance customer experience or extend reach 2002 Operating Efficien
Slide 14: Today's Discussion
Today's Discussion Regional Community Banking > Strategic overview Neil Hall > Regional President Model Pete Classen » Execution - Business Banking - Customer experience > Summary >QBA > Branch visit Jeff Schmidt Dan Tuccillo and Ellen van der Horst Neil Hall @PNC
Slide 15: PNC's Regional President Model
PNC’s Regional President Model Going to market as one through people, proximity and products Regional Community Banking PNC Advisors Wholesale Banking Nine Regional Presidents Customer Base © PNC
Slide 16: Contribution of Referred Business to Wealth Management Sales
Contribution of Referred Business to Total Wealth Management Sales in New Jersey 25% 20% 15% 10% 5% 0% 2001 2002 1Q03 Sales are measured by estimated first ull year annualized revenue from sale © PNC
Slide 17: Rapid Product Development
Rapid Product Development Capabilities ® Development © PNC
Slide 18: Today's Discussion
Today's Discussion Regional Community Banking > Strategic overview > Regional President Model » Execution Neil Hall Pete Classen - Business Banking Jeff Schmidt - Customer experience > Summary >QBA > Branch visit Dan Tuccillo and Ellen van der Horst Neil Hall @PNC
Slide 19: Business Banking
Business Banking An unwavering focus on execution Strategic Drivers > Build on our dedicated sales force strategy > Grow customers through targeted acquisition > Deepen relationships through cross-selling > Generate quality assets by utilizing customer insights to enhance borrowing experience @PNC
Slide 20: Execution Strategies
Execution Strategies We feverage our insights and technology platform to deliver personalized solutions for small businesses Integrated Channels » Branches Genesis Seema een yconact cal eet ‘Winning Customers > Customer strategy > Loan center ecltey Fanecaiore year oe P Retain » Batawining proming a
Slide 21: Enhancing the Customer Experience and Improving Efficiency
Enhancing the Customer Experience and Improving Efficiency » Utilized dedicated in-bound call unit — Increased Sales and Service contacts by 145% past two years » Leveraged Consumer Loan Center to deliver 24 hour turnaround for small business loans — 73% increase in applications processed per employ
Slide 22: Today's Discussion
Today's Discussion Regional Community Banking > Strategic overview > Regional President Model » Execution - Business Banking Neil Hall Pete Classen Jeff Schmidt - Customer experience Dan Tuccillo and Ellen van der Horst > Summary >QBA > Branch visit Neil Hall © PNC
Slide 23: Putting the Strategy Into Practice
Putting the Strategy Into Practice Our investments in People and Technofogy, coupled with our emphasis on Teamwork, create a Differentiated Customer Experience Differentiated Peop Teamwork customel i Experience > Customer > Integrated > Database- ¥ Strong checking focused planning & driven leads hou
Slide 24: Empowering the Front Line
Empowering the Front Line Customer Conversation Deeper ™ Relationships | ae Mb Alternative Channels Integrated Sales Tools © PNC
Slide 25: Today's Discussion
Today's Discussion Regional Community Banking > Strategic overview > Regional President Model » Execution - Business Banking - Customer experience Neil Hall Pete Classen Jeff Schmidt Dan Tuccillo and Ellen van der Horst > Summary Neil Hall >QBA > Branch visit @PNC
Slide 26: Summary
Summary Aspirations » A growing customer base » Moderate risk, high return business - High-quality loan portfolio - Lower funding costs than peers » Grow earnings: 7 -11% © PNC
Slide 27: PNC
) PNC
Slide 28: Peer Group of Super-Regional Banks
Peer Group of Super- Regional Banks Ticker The Bank of New York Company, Inc. BK Bank One Corporation ONE Fifth Third Bancorp FITB FleetBoston Financial Corporation FBF KeyCorp KEY National City Corporation NCC The PNC Financial Services Group, Inc. PNC SunTrust Banks, Inc. STI U.S. Bancorp USB Wach
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