Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — BancAnalysts Association of Boston Conference 2015
24 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Nov 5, 2015
Slide 1: BancAnalysts Association of Boston Conference
The PNC Financial Services Group, Inc. BancAnalysts Association of Boston Conference November 5, 2015 Exhibit 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information Our 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 its corporate website. The present
Slide 3: Agenda
Agenda Our business model Continued focus on achieving our capital objectives and expense management Our strategic priorities provide levers in a low rate environment
Slide 4: Our Business Model
Our Business Model Deliver long-term value Effective capital management Invest in and grow high return, diverse businesses which fit our desired risk profile Adhere to our risk appetite Stay core funded and disciplined in deposit pricing Create positive operating leverage while self-funding growth a
Slide 5: Achieving Consistent Performance in Challenging Environment
Achieving Consistent Performance in Challenging Environment 2013 2014 2012 2011 2015 PNC’s Diluted EPS(1) (1) Consensus estimate source: Thomson One. FY13 has and FY11 and FY12 have not been updated to reflect the first quarter 2014 adoption of Accounting Standards Update (ASU) 2014-01 related to in
Slide 6: Balance Sheet Remains Liquid
Balance Sheet Remains Liquid Total Loan Growth Interest-Earning Assets Growth Interest-Earning Deposits With Banks 2X Growth $ in billions Total Deposit Growth 5X Growth (1) Percentages calculated by comparing nine month average balances to prior year nine month average balances. Average Balances(1)
Slide 7: Achieving Our Capital Objectives
Achieving Our Capital Objectives Higher Capital Return Highlights Strong pro forma fully phased-in Basel III common equity Tier I capital ratio of 10.1%(1) Capital priorities: Build capital to support client growth and business investment Maintain appropriate capital in light of economic uncertainty
Slide 8: Solid Core NII and Well-Positioned for Rising Rates
Sept YTD12 Sept YTD13 Sept YTD14 Sept YTD15 Solid Core NII and Well-Positioned for Rising Rates NII Trends $ in billions $7.2 Core NII(1) PAA(2) (1) Core net interest income(Core NII) is total net interest income (NII), as reported, less related purchase accounting accretion (scheduled and cash reco
Slide 9: Continued Expense Management
Branch reconfigurations Transaction migration and lower cost alternative channels Lowering costs and focused on efficiencies in mortgage business Increased FY15 CIP(2) target by $100 million to $500 million in 2Q15 Expenses expected to be down approximately 1% for FY15(1) Ongoing CIP(2) initiatives
Slide 10: Focused on Growing Fee Income
Focused on Growing Fee Income Strategic Priorities Organic growth opportunities Long-Term Potential(1) Incremental annual revenue of $500M Total client investment assets growth of $100 billion+ Fee income(2) growth of mid to upper single digits Increase product penetration to 8%-10%(3) Drive growth
Slide 11: Providing Sustainable Long-Term Fee Income
Growth across our diverse businesses have offset lower revenue from residential mortgage Fee income grew 4% Fee income excluding residential mortgage increased 7%(1) Asset management(3) up 9% Consumer(2) up 4% Corporate services up 10% Residential mortgage down 13% Execution of Strategic Priorities
Slide 12: Diverse Businesses Driving Strong YOY Fee Income Growth
Diverse Businesses Driving Strong YOY Fee Income Growth Fee Income Growth(1) Brokerage up 20% Credit Card up 12% Debit Card up 7% Merchant Services up 4% PNC AMG noninterest income up 8% Commercial Mortgage servicing fee income up 17%(2) Treasury Management fee income up 7% Lower hedge gains and fai
Slide 13: Driving Growth in Southeast Markets
Driving Growth in Southeast Markets Southeast Market Revenue(1) (1) Southeast markets defined as Alabama, Georgia, North Carolina, South Carolina and Florida. See reconciliation in Appendix for additional details, including an explanation of total market revenue. 9% 10% 11% $ in millions Southeast m
Slide 14: Well-Positioned for the Future
Well-Positioned for the Future Stronger relative capital position provides opportunity to return more capital to shareholders, subject to CCAR process Opportunity to grow share in underpenetrated markets and deepen product penetration Continued focus on growing fee income and managing expenses
Slide 15: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix 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 informa
Slide 16: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix PNC’s ability to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock or
Slide 17: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of third-party insurance, derivatives, a
Slide 18: Estimated Transitional Basel III and Pro forma Fully Phased-In Basel III CET1 Ratios
Estimated Transitional Basel III and Pro forma Fully Phased-In Basel III Common Equity Tier 1 Capital Ratios Appendix
Slide 19: Estimated Transitional Basel III and Pro forma Fully Phased-In Basel III CET1 Ratios
Estimated Transitional Basel III and Pro forma Fully Phased-In Basel III Common Equity Tier 1 Capital Ratios
Slide 20: Tangible Book Value per Common Share
Tangible Book Value per Common Share Appendix
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix
Slide 24: Peer Group of Banks
Peer Group of Banks Appendix The PNC Financial Services Group, Inc.PNC BB&T CorporationBBT Bank of America CorporationBAC Capital One Financial, Inc.COF Fifth Third BancorpFITB JPMorgan ChaseJPM KeyCorpKEY M&T BankMTB Regions Financial CorporationRF SunTrust Banks, Inc.STI U.S. BancorpUSB Wells Farg
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