Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2019 Earnings Presentation
17 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 12, 2019
Slide 1: First Quarter 2019 Earnings Conference Call
Exhibit 99.2 First Quarter 2019 Earnings Conference Call April 12, 2019 The PNC Financial Services Group
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on its corpora
Slide 3: 1Q19 Highlights
1Q19 Highlights . Delivered very good results Net Income $1.3 billion . Grew loans and deposits Diluted Earnings Per Share . Stable net interest income despite two fewer days $2.61 . Net interest margin expanded Return on Average Assets 1.34% . Held expenses flat Return on Common Equity . Overall cr
Slide 4: Balance Sheet: Grew Loans, Deposits and Securities
Balance Sheet: Grew Loans, Deposits and Securities Change vs. Average balances, $ billions 1Q19 4Q18 1Q18 Highlights . LQ growth primarily in Corporate Banking Commercial lending $154.7 $2.5 $6.5 − Includes a $1.5 billion decline in multifamily agency warehouse lending Consumer lending 73.8 0.1 0.9
Slide 5: Balance Sheet: Grew Loans and Deposits
Balance Sheet: Grew Loans and Deposits Loans Deposits 3% Year-Over-Year Growth 3% Year-Over-Year Growth $260.6 $266.5 $267.2 $225.9 $228.5 $221.1 $183.4 $191.2 $195.8 $154.7 $148.2 $152.2 0.98% 0.87% 4.61% 4.49% 0.47% 4.09% Average Average balances, $ billions Average Average balances, $ billions $7
Slide 6: Income Statement: NIM Expanded and Expenses Well-Controlled
Income Statement: NIM Expanded and Expenses Well-Controlled Change vs. $ millions 1Q19 4Q18 1Q18 Highlights . LQ impacted by two fewer days in the first quarter Net interest income $2,475 $(6) $114 . NIM expanded 2bps compared to 4Q18 . Linked quarter decline primarily due to seasonally Noninterest
Slide 7: Income Statement: Diverse Sources of Revenue
Income Statement: Diverse Sources of Revenue Total Revenue Noninterest Income Detail 4% Year-Over-Year Growth 3% Year-Over-Year Growth Change vs. $4,340 $4,286 $ millions 1Q19 4Q18 1Q18 $4,111 $2,481 $2,475 $2,361 Asset management $437 $9 ($18) 2.98% 2.96% Consumer services 371 (16) 14 2.91% Corpora
Slide 8: Income Statement: Focused on Expense Management
Income Statement: Focused on Expense Management Noninterest Expense Noninterest Expense Detail Well Controlled Stable Linked Quarter Change vs. $2,577 $2,578 $2,527 $ millions 1Q19 4Q18 1Q18 Personnel $1,414 $66 $60 61% Occupancy 215 13 (3) 59% 60% Equipment 273 (12) - $ millions Marketing 65 (19) 1
Slide 9: Credit Quality: Remains Strong
Credit Quality: Remains Strong Net Charge-offs Provision NCO / Average Loans for 1Q19: 0.24% ALLL to Loans for 1Q19: 1.16% $136 $189 $113 $109 $107 $91 $148 $92 $80 $88 $ millions $ millions 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Consumer Commercial Nonperforming Loans Delinquencies $1,84
Slide 10: Outlook: Full Year 2019 Compared to Full Year 2018
Outlook: Full Year 2019 Compared to Full Year 2018 Balance Average loans Up 3% - 4% Sheet Revenue Up higher end of low-single digits Income Noninterest expense Up lower end of low-single digits Statement Effective tax rate Approximately 17% Positioned to deliver positive operating leverage − Refer t
Slide 11: Outlook: Second Quarter 2019 Compared to First Quarter 2019
Outlook: Second Quarter 2019 Compared to First Quarter 2019 Balance Average loans Up approximately 1% Sheet Net interest income Up low-single digits Fee income Up mid-single digits Income Other noninterest income $275 - $325 million Statement Noninterest expense Up low-single digits Loan loss provis
Slide 12: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 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 inform
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, d
Slide 15: Non-GAAP to GAAP Reconciliation: Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity (Non-GAAP) For the three months ended Mar. 31, Dec. 31, Mar. 31, $ millions 2019 2018 2018 Return on average common shareholders' equity 11.13% 11.83% 11.04% Average common shareholders' equity $ 43,624 $ 42,974 $ 42,806 Aver
Slide 16: Non-GAAP to GAAP Reconciliation: Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (Non-GAAP) % Change 3/31/19 3/31/19 $ millions, except per share data Mar. 31, Dec. 31, Mar. 31, vs. vs. 2019 2018 2018 12/31/18 3/31/18 Book value per common share $98.47 $95.72 $91.39 3% 8% Tangible book value per commo
Slide 17: Non-GAAP to GAAP Reconciliation: Pretax, Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (Non-GAAP) For the three months ended % Change Mar. 31, Dec. 31, Mar. 31, 1Q19 1Q19 $ millions 2019 2018 2018 vs. 4Q18 vs. 1Q18 Net interest income $2,475 $2,481 $2,361 - 5% Noninterest income 1,811 1,859 1,750 (3%) 3% Total re
PNC Financial Services Group — Q1 2019 Earnings Presentation on 6ix