Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2009 Earnings Presentation
17 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 22, 2009
Slide 1: The PNC Financial Services Group, Inc. Third Quarter 2009 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Third Quarter 2009 Earnings Conference Call October 22, 2009
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: Key Messages
Key Messages Our business model performed well We believe the economy has stabilized The balance sheet remained well-positioned – further increased capital and reserves and maintained strong liquidity Pace of credit quality deterioration eased Strong revenue performance and disciplined expense manag
Slide 4: Building a High Quality, Differentiated Balance Sheet
Building a High Quality, Differentiated Balance Sheet Change from Category (billions) Sept 30, June 30, Dec 31, 2009 2009 2008 Investment securities $54 $4 $11 Sept 30, 2009 Total loans 161 (4) (15) Key Ratios Other assets 56 (8) (16) Loans/Assets Total assets $271 ($8) ($20) 59% Transaction deposit
Slide 5: Pretax Pre-Provision Earnings Substantially Exceed Credit Costs
1 Pretax Pre-Provision Earnings Substantially Exceed Credit Costs September 30 Nine months ended Three months ended 2009 $11.9 Revenue Expense Pretax pre-provision earnings Provision $7.4 (billions) $4.0 $4.5 $2.4 $2.9 $1.7 $0.9 PNC Is Recognized for Our Ability to Create Positive Operating Leverage
Slide 6: High Quality, Diverse Revenue Streams
High Quality, Diverse Revenue Streams Net interest income 3Q09 Noninterest income $2.2 billion $1.8 billion 55% of total revenue 45% of total revenue 1 14% Net interest margin 3Q09 2Q09 Loans 5.12% 5.22% Deposit Investment securities 5.20 5.32 18% service Other 2.18 2.14 Consumer charges 14% service
Slide 7: Disciplined Expense Management
Disciplined Expense Management Noninterest expense comparison Integration cost savings highlights Third quarter savings of approximately $200 millions 3Q09 2Q09 million for a year-to-date total of more than $460 million Noninterest expense $2,379 $2,658 Implemented common vendor and expense policies
Slide 8: Loan Portfolio
Loan Portfolio Held for Investment (billions) 13% 3Q09 asset quality highlights 10% Commercial Pace of credit quality deterioration real estate $21.4 Other eased consumer $16.5 Growth rate in nonperforming loans slowed Current stress in commercial real Commercial 3Q09 Home estate and mortgage has be
Slide 9: Repositioning the Investment Securities Portfolio
Repositioning the Investment Securities Portfolio Period end securities available for sale - % of portfolio Highlights amortized cost basis 3Q09 4Q08 Made significant progress improving US Treasury and government agencies 13% 2% the risk profile Residential mortgage-backed Increased purchases of Tre
Slide 10: Strengthening Capital Ratios
Strengthening Capital Ratios Tier 1 common ratio Tier 1 risk-based ratio Highlights 1 PNC capital ratios already 10.8% reflect impact of fair value 5.5% 1 10.5% marks – as of September 10.0% 2 5.3% 30, 2009, fair value marks 9.7% 4.9% were approximately $6.6 4.8% billion Increased common equity by $
Slide 11: PNC's Framework for Success
PNC’s Framework for Success PNC Business September 30, Key Metrics Target Action Plans Model 2009 Loan to deposit Maximize credit portfolio value Staying core ratio 87% 80%-90% Reposition deposit gathering funded (as of) strategies Provision to Focus “front door” on risk-adjusted Returning to a retu
Slide 12: Summary
Summary PNC’s business model has performed well during the economic downturn PNC believes the economy has stabilized and the pace of our credit quality deterioration has eased PNC’s realistic opportunities for growth are expected to deliver significant value PNC Continues to Build a Great Company. 1
Slide 13: 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 14: 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 or our financial condition or results of operations or our competitive position or reputation. Reputational impacts, in tur
Slide 15: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Our ability to achieve anticipated results from this transaction is dependent on the state going forward of the economic and financial markets, which have been under significant stress recently. Specifically, we may inc
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix December 31, 2008 In millions, for the three months ended Pretax Net income Reported net income (loss) ($246) National City conforming provision for credit losses $504 328 Net income (loss) excluding National City conforming $82 provision for credit losses PNC
Slide 17: 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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