Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Goldman Sachs Financial Services Conference 2012
22 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Dec 4, 2012
Slide 1: The PNC Financial Services Group, Inc. Goldman Sachs Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Goldman Sachs Financial Services Conference December 4, 2012
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information This presentation includes “snapshot” information about PNC used by way of illustration. It is not intended as a full business or financial review and should be viewed in the context of all of the information made av
Slide 3: Achieving in the Current Environment
Achieving in the Current Environment The “new normal” Regulatory Slow U.S. Low interest Tepid revenue implementation economic growth rates growth PNC’s opportunities and challenges Grow profitable Control expenses Manage risks and customers and while investing for capital quality revenues growth DRA
Slide 4: Value Creation Throughout the Changing Environment
Value Creation Throughout the Changing Environment Financial crisis “New normal” % change in TBV/Share 1 12/31/2007 to 12/31/2009 % change in TBV/Share 1 12/31/2009 to 9/30/2012 PNC 40% PNC 94% WFC 25% USB 77% JPM 22% WFC 63% USB 15% COF 56% BBT 8% MTB 52% MTB 1% JPM 38% -5% COF FITB 31% -6% CMA KEY
Slide 5: Delivering Solid Returns
Delivering Solid Returns 1 3Q12 return on average assets 3Q12 return on average tangible common equity USB 1.66% USB 24.3% COF 1.59% COF 21.5% WFC 1.49% BBT 17.0% MTB 1.46% JPM 16.0% FITB 1.24% PNC 1.23% PNC 14.3% BBT 1.11% FITB 12.9% KEY 1.02% RF 12.4% JPM 1.01% KEY 9.7% RF 0.99% CMA CMA 7.4% 0.74%
Slide 6: Effectively Managing Credit Risk
Effectively Managing Credit Risk 3Q12 net charge-offs to average loans 3Q12 loan loss reserves¹ to total loans MTB 0.26% JPM 3.16% CMA 0.39% RF 2.69% PNC 0.73% COF 2.53% FITB 0.74% FITB 2.27% KEY 0.85% PNC 2.22% USB 0.95% WFC 2.09% BBT 1.08% USB 2.05% WFC 1.14% STI 1.76% RF 1.36% BBT 1.74% JPM 1.53%
Slide 7: Growing Customers Creates Revenue Potential
Growing Customers Creates Revenue Potential Retail Banking Corporate Banking Net new organic checking relationships 1 New primary clients 2 869 225 230 773 694 48 YTD10 YTD11 YTD12 YTD10 YTD11 YTD12 Asset Management Group Residential Mortgage Total loan originations New primary clients 3 1,355 Refin
Slide 8: Balance Sheet Growth Driving Revenue
Balance Sheet Growth Driving Revenue -3Q12 noninterest-bearing 3Q11-3Q12 commercial loans¹ 3Q11-3Q12 revenue deposits BBT 25% PNC 24% STI 2 (12%) w/o Coca-Cola gain² 76% COF 18% JPM 15% COF 39% PNC 17% COF 15% BBT 16% WFC 17% USB 12% PNC 15% MTB 17% CMA 9% MTB 13% STI 16% KEY 7% USB 8% USB 14% FITB
Slide 9: Loan Growth has Delivered Net Interest Income Growth
Loan Growth has Delivered Net Interest Income Growth Five quarter trend Highlights $250.1 $252.6 $237.7 Increase in interest earning $224.1 $228.4 assets driven by Southeast $2.5 $2.4 expansion and organic loan $2.3 $0.3 $2.2 $2.2 growth $0.2 $0.3 $0.3 $0.3 $2.2 $2.2 Core NII growth driven by $2.0 S
Slide 10: Expanding the Successful PNC Business Model into Underpenetrated Markets
Expanding the Successful PNC Business Model into Underpenetrated Markets Total Corporate Banking and AMG sales Corporate Banking cross-sales by type 1 1 3 3 Philadelphia Chicago RBC Bank (USA) Philadelphia Chicago RBC Bank (USA) 2 2 $120 markets markets $105 32% $xx 55% 54% $64 $48 $40 68% 45% 46% 2
Slide 11: Our Sales Momentum is Strong
Our Sales Momentum is Strong Total Corporate Banking and AMG sales Total Corporate Banking and AMG cross-sales 3-year CAGR 3-year CAGR $600 Northeast 4% $300 Northeast 4% Midwest 16% Midwest 24% $500 $250 $400 $200 $300 $150 $200 $100 $100 $50 $0 $0 1 2009 2010 2011 YTD12 2009 2010 2011 YTD12 1 Actu
Slide 12: Serving Customers Tomorrow – Changing the Retail Branch Model
Serving Customers Tomorrow – Changing the Retail Branch Model PNC customers’ changing preferences ATM channel migration strategy 1 Transaction behavior mix Traditional Branch 12 Teller ATM 20% Primary 10 Virtual 34% 8 Multi- channel 46% 6 40% potential 4 2 20% Cost per consumer interaction 2 potenti
Slide 13: Capturing More Investable Assets in Underpenetrated Customer Segments
Capturing More Investable Assets in Underpenetrated Customer Segments Significant opportunity to grow Asset Management Group personal investable assets 3 A Top 10 bank-held wealth manager in U.S. $1,356B Customers (in thousands) 3 >8% $490B Investment & Wealth 6% households 400+ $43B 3 Assets (in bi
Slide 14: PNC’s Efficiency Ratio
PNC’s Efficiency Ratio 1 2 Sensitivity to adjustments 2013 highlights Expect positive operating 68% leverage 3 4% 3% 61% No integration and minimal trust preferred securities redemption charges expected Integration Residential costs and relative to 2012 Mortgage Trust repurchase Expect lower provisi
Slide 15: Strong Capital Position
Strong Capital Position 3Q12 highlights Basel I Tier 1 common ratio of 9.5% Basel III Tier 1 common pro forma ratio is 7.2% as of September 30, 2012 1 without benefit of phase-ins Basel III Tier 1 common ratio goal is 8.0-8.5% by year-end 2013 without 1 benefit of phase-ins Capital priorities: – Bui
Slide 16: Cautionary Statement Regarding Forward-Looking Information Appendix
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 17: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • 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 opport
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • In addition to the RBC Bank (USA) transaction, we grow our business in part by acquiring from time to time other financial services companies, financial services assets and related deposits and other liabilities. These
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of In millions except per share data Dec. 31, 2007 Dec. 31, 2009 % Change Common shareholders' equity $14,847 $22,011 Common shares outstanding 341 462 Book value per common share $43.60 $47.68 Goodwill and other intangible assets other than servicing right
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of or for the three months ended In millions Sep. 30, 2012 Average common shareholders' equity $34,323 Average goodwill and other intangible assets other than servicing rights 9,956 Average tangible common equity $24,367 Net income attributable to common sh
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended $ in millions Sept. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011 Net interest margin, as reported 3.82% 4.08% 3.90% 3.86% 3.89% Purchase accounting accretion (1) $245 $343 $263 $256 $291 Purchase accounting accret
Slide 22: Peer Group of Banks
Peer Group of Banks Appendix Ticker 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,
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