Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2012 Earnings Presentation
18 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 18, 2012
Slide 1: The PNC Financial Services Group, Second Quarter 2012 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Second Quarter 2012 Earnings Conference Call July 18, 2012
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information 2
Slide 3: Significant 2Q12 Achievements
Significant 2Q12 Achievements 2Q12 highlights Net income of $546 million and EPS of $0.98 – Includes $403 million or $0.76 EPS charge associated with residential mortgage 1 repurchase obligations, trust preferred securities redemptions and integration Strong performance driven by customer growth and
Slide 4: Business Fundamentals Continued to Improve
Business Fundamentals Continued to Improve 2Q12 Retail Banking 2Q12 Corporate & Institutional Banking 1 Grew net organic checking relationships by Continued strong client additions – added nearly 500 3 128,000 or 4% annualized YTD12; greater than new Corporate Banking primary clients in 1H12 1.9% fo
Slide 5: Strong Financial Performance Affected by Select Charges
Strong Financial Performance Affected by Select Charges 2Q12 1Q12 2Q11 Balance Sheet Loans 1 ($ billions) $180 $176 $150 Growth Deposits 1 ($ billions) $207 $206 $182 2Q12 1Q12 2Q11 YTD12 YTD11 Earnings Net income ($ millions) $546 $811 $912 $1,357 $1,744 Earnings per diluted share $0.98 $1.44 $1.67
Slide 6: Strong Commercial Loan Growth Funded by Favorable Deposit Mix
Strong Commercial Loan Growth Funded by Favorable Deposit Mix % change from: 2Q12 highlights Jun. 30, Mar. 31, Jun. 30, Category (billions) 2012 2012 2011 Commercial 78.9 5% 35% Loans increased $4.2 billion or 2% from 1Q12, primarily driven by Commercial real estate 18.5 0% 14% total commercial loan
Slide 7: Loan Growth and Reduced Funding Costs Driving Net Interest Income
Loan Growth and Reduced Funding Costs Driving Net Interest Income 2Q12 1Q12 4Q11 3Q11 2Q11 2Q12 highlights Average interest earning assets (in billions) $250.1 $237.7 $228.4 $224.1 $220.7 Average interest earning assets grew $12 billion or 5% from 1Q12 Average yields/rate: and 13% from 2Q11 Interest
Slide 8: Client Growth and Sales Impact Noninterest Revenue
Client Growth and Sales Impact Noninterest Revenue (millions) 2Q12 1Q12 4Q11 3Q11 2Q11 2Q12 highlights 1 Asset management $278 $284 $250 $287 $288 Noninterest income in the quarter Consumer services 290 264 269 330 333 included provision for residential mortgage repurchase obligations Corporate serv
Slide 9: Residential Mortgage Repurchase Obligations
Residential Mortgage Repurchase Obligations Key Statistics 1 2Q12 highlights GSEs ($ billions) Total Total ‘06-‘08 Recent and expected elevated Portfolio Portfolio Vintages levels of GSE-related repurchase Original UPB $384 $214 $57 demands Remaining UPB 106 68 15 As a result, PNC added provision of
Slide 10: Disciplined Expense Management While Investing for Growth
Disciplined Expense Management While Investing for Growth (millions) 2Q12 1Q12 4Q11 3Q11 2Q11 2Q12 highlights Core 1: Total core noninterest expense Personnel $1,107 $1,067 $1,050 $948 $975 increased $156 million from 1Q12 primarily due to: Occupancy 198 178 197 171 176 Full quarter impact of RBC Eq
Slide 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Basel III Tier 1 common ratio 2Q12 highlights 2 Basel I Tier 1 common ratio of 9.3% 8.0% - 8.5% Capital priorities: – Build capital to support client growth and business investment 7.0% – Maintain appropriate capital in light of 6.4% economic uncertainty 5.8% –
Slide 12: Outlook – Full Year 2012 vs. 2011
Outlook 1– Full Year 2012 vs. 2011 Strong loan and revenue growth expected RBC Bank (USA) acquisition expected to be accretive in 2012 2 Disciplined credit and expense management Estimated % Change 3 Combined Balance sheet Loans Increase mid to high teens Total revenue Increase high single digits 4
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix 13
Slide 14: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix 14
Slide 15: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix 15
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix 16
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix 17
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix 18
PNC Financial Services Group — Q2 2012 Earnings Presentation on 6ix