Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — FY2012 Earnings Presentation
18 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 17, 2013
Slide 1: Fourth Quarter and Full Year 2012 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Fourth Quarter and Full Year 2012 Earnings Conference Call January 17, 2013
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 2012 Achievements
Significant 2012 Achievements 2012 highlights Exceptional customer growth across our businesses resulted in strong loan, deposit and revenue growth Grew commercial and consumer loans Investment in Southeast markets showing early cross-sales and fee income results Overall credit quality improved Expe
Slide 4: Growing Customers – Long-Term Revenue Potential
Growing Customers – Long-Term Revenue Potential Retail Banking Corporate Banking (1) New primary clients (2) Net organic checking relationships 1,165 255 254 1,012 1,061 75 2010 2011 2012 2010 2011 2012 Asset Management Group Residential Mortgage Total loan originations New primary clients (3) Refin
Slide 5: Financial Performance – 4Q12 Linked Quarter
Financial Performance – 4Q12 Linked Quarter Highlights Continued strong loan growth including in asset-based lending, healthcare, public finance, real estate and automobile lending Reported revenues stable - increased by 5% excluding impact of residential mortgage repurchase provision (1) – NII incr
Slide 6: Loan Growth Delivered Stable Core NII
Loan Growth Delivered Stable Core NII Five quarter trend Highlights $250.1 $252.6 $253.6 Linked quarter: $237.7 Increase in average interest $228.4 $2.5 earning assets driven by loan $2.4 $2.4 growth $2.2 $2.3 $0.3 $0.2 $0.2 Loan growth supported NII $0.3 increase of 1%: $0.3 $2.2 $2.2 $2.2 $2.0 – C
Slide 7: Client Growth and Sales Driving Noninterest Income Growth
Client Growth and Sales Driving Noninterest Income Growth (millions) 4Q12 3Q12 FY12 FY11 Highlights Asset management (1) $302 $305 $1,169 $1,088 Linked quarter: Consumer services 294 288 1,136 1,243 Noninterest income increased 10% Corporate services 349 295 1,166 898 excluding impact of residential
Slide 8: Residential Mortgage Repurchase Obligations
Residential Mortgage Repurchase Obligations Key Statistics 4Q12 highlights GSEs Total Total ‘06-‘08 ‘04-‘05 Expected elevated levels of GSE- ($ billions) Portfolio Portfolio Vintages Vintages related repurchase demands Original UPB $388 $217 $57 $60 Primarily 2004-2005 vintages Remaining UPB 92 58 1
Slide 9: Focused on Expense Management While Investing for Growth
Focused on Expense Management While Investing for Growth (millions) 4Q12 3Q12 FY12 FY11 Highlights Personnel $1,216 $1,171 $4,617 $3,966 Linked quarter: Occupancy 226 212 827 738 Noninterest expense increased Equipment 194 185 735 661 $179 million due to: Residential mortgage-related Marketing 70 74
Slide 10: Credit Trends Continue to Improve
Credit Trends Continue to Improve Criticized commercial loans Accruing loans past due (2,3) Criticized Commercial loans (1) 30-89 Days 90 Days + $9.9 $11.8 $10.7 $9.9 $1.6 $8.9 $1.5 $1.4 $1.4 $1.4 $3.0 $2.6 $2.5 $2.5 $2.4 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 Nonperforming loans (2,4) Pr
Slide 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position 4Q12 highlights Basel I Tier 1 common capital ratio of 9.6% (1) – Increased 10 bps due to retained earnings growth Basel III Tier 1 estimated pro forma common capital ratio was 7.3% as of December 31, 2012 without benefit of phase-ins (2) (goal is to be within a
Slide 12: 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 13: 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 14: 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 15: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended Dec. 31, 2012 Adjustments, Income taxes Return on Avg. In millions pretax (benefit) (a) Net income Average Assets Assets Net income and return on avg. assets, as reported $719 $302,131 0.95% Adjustments: Gain on sale of Visa Class B
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended In millions Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Total noninterest income, as reported $1,097 $1,689 $1,645 Total revenue, as reported $3,623 $4,088 $4,069 Adjustments: Provision for residential mortgage repurchase obligations 4
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended In millions Dec. 31, 2012 Sep. 30, 2012 % change Total noninterest income, as reported $1,645 $1,689 -3% Adjustments: Provision for residential mortgage repurchase obligations 254 37 Total noninterest income, as adjusted $1,899 $1,72
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended For the year ended In millions, except per share data Dec. 31, 2012 Sep. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2011 Noninterest Income Provision for residential mortgage repurchase obligations (Pre
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