Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2010 Earnings Presentation
20 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 22, 2010
Slide 1: The PNC Financial Services Group, Inc. Second Quarter 2010 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Second Quarter 2010 Earnings Conference Call July 22, 2010
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: Significant 2Q10 Achievements
Significant 2Q10 Achievements Delivered strong financial results Balance sheet remains well-positioned Businesses continued to perform well; continued to grow clients and deepen relationships Successfully completed the conversion of more than 6 million customers and 1,300 branches across 9 states fr
Slide 4: Higher Quality, Differentiated Balance Sheet
Higher Quality, Differentiated Balance Sheet Category (billions) June 30, 2010 March 31, June 30, 2010 2010 key statistics Investment securities $53.7 $57.6 Loans/assets Total loans 154.3 157.3 59% Other assets 53.7 50.5 Total assets $261.7 $265.4 Investment securities/assets Transaction deposits $1
Slide 5: Key Take-Aways
Key Take-Aways 2Q10 1Q10 Reported earnings per diluted common share $1.47 $.66 Strong earnings 1 Adjusted earnings per diluted common share $1.60 $1.31 2 Pretax pre-provision earnings (billions) $1.9 $1.7 2Q10 1Q10 Stabilization of Provision for credit losses (millions) $823 $751 credit quality, res
Slide 6: Pretax Pre-Provision Earnings More Than Doubled Credit Costs
1 Pretax Pre-Provision Earnings More Than Doubled Credit Costs 2Q10 2Q10 noninterest income mix Categories in millions $3.9 YTD 2010 pretax pre- 14% provision earnings1,2 of $3.6 billion exceeded provision 21% Deposit by 2.26x service charges $209 $2.0 $1.9 Consumer services Corporate services 18% $
Slide 7: Initial Cost Save Objectives Exceeded – New Target of $1.8 Billion
Initial Cost Save Objectives Exceeded – New Target of $1.8 Billion PNC acquisition-related cost saves Highlights $1.8 billion Successfully captured $1.6 billion in annualized $1.6 billion acquisition-related cost savings through 2Q10, well ahead of our original target amount and $800 schedule millio
Slide 8: Overall Credit Quality Continued to Stabilize
Overall Credit Quality Continued to Stabilize 2Q10 1Q10 4Q09 3Q09 2Q09 30 – 89 days $1,780 $2,482 $2,388 $2,380 $2,195 Accruing loans past due1,2 (millions) 90 days or more $647 $846 $884 $875 $1,043 Total nonperforming loans $5,281 $5,761 $5,671 $5,126 $4,156 Nonperforming loans² (millions, except
Slide 9: Further Improvement in Quality of Capital Structure
Further Improvement in Quality of Capital Structure Tier 1 common capital ratio Highlights Improved quality of capital 9.0% 3 8.4% - Common as a % of Tier 1 capital 1 7.9% increased to 78% from 50% in 2Q09 6.0% Capital priorities - Maintain strong capital levels - Support our clients - Invest in our
Slide 10: Framework for Success
Framework for Success PNC Business Strategic Key Metrics June 30, 2010 Action Plans Model Objective Staying core Loans to deposits Maximize credit portfolio value ratio 86% 80%-90% funded (as of) Reposition deposit gathering strategies Returning to a Provision to average Focus “front door” on risk-a
Slide 11: Summary
Summary The continued execution of PNC’s business model resulted in a strong first half of 2010 The completed National City branch conversions position PNC to achieve substantial revenue growth PNC is well-positioned to achieve its strategic financial objectives PNC Continues to Build a Great Compan
Slide 12: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix 12
Slide 13: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix 13
Slide 14: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix 14
Slide 15: Impact of Sale of PNC Global Investment Servicing
1 Impact of Sale of PNC Global Investment Servicing Appendix Estimated gain and capital enhancement (billions) Sales price $2.3 Less: Book equity / intercompany debt (1.7) Pretax gain 0.6 Income taxes (0.3) After-tax gain 0.3 Elimination of net intangible assets: Goodwill and other intangible assets
Slide 16: Risk-Based Capital Ratios
Risk-Based Capital Ratios Appendix $ in billions Tier 1 common Tier 1 risk-based June 30, 2010 - Capital $18.3 $23.4 1 Ratios as of June 30, 2010 8.4% 10.8% 2 Net impact of July 1, 2010 sale of GIS 1.4 1.4 Proforma $19.7 $24.8 1 Proforma ratios as of June 30, 2010 9.0% 11.4% 3 Ratios as of December
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended June 30, 2010 Net income Adjustments, Income taxes attributable to Diluted EPS from In millions except per share data pretax (benefit) 1 Net income common shareholders net income Net income and diluted EPS, as reported $803 $786 $1.4
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the six months ended June 30, 2010 Net income Adjustments, Income taxes attributable to Diluted EPS from In millions except per share data pretax (benefit) 1 Net income common shareholders net income Net income and diluted EPS, as reported $1,474 $1,119 $2
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended December 31, 2009 Net income Adjustments, Income taxes attributable to Diluted EPS from In millions except per share data pretax (benefit) 1 Net income common shareholders net income Net income and diluted EPS, as reported $1,107 $1,
Slide 20: 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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