Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — BancAnalysts Association of Boston Conference 2011
24 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Nov 3, 2011
Slide 1: The PNC Financial Services Group, Inc. BancAnalysts Association of Boston
Exhibit 99.1 The PNC Financial Services Group, Inc. BancAnalysts Association of Boston November 3, 2011
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: Today's Discussion
Today’s Discussion PNC’s differentiated business model has delivered strong results through the cycle Investing for future growth Balance sheet positioned to support client demand Significant opportunity to deliver long-term shareholder value PNC Continues to Build a Great Company. DRAFT 3
Slide 4: Significant 2011 Achievements
Significant 2011 Achievements YTD11 highlights Delivered strong financial results through exceptional client growth across businesses and markets Grew commercial loans Maintained a high quality balance sheet, improved overall credit quality Disciplined expense management Pending RBC Bank (USA) acqui
Slide 5: Delivering Strong Returns
Delivering Strong Returns YTD return on Tier 1 common 9/30/11 Tier 1 common ratio¹ YTD return on average assets capital² -.06% BAC -.03% BAC Peer Source: SNL DataSource, First Call reports and company reports, as available. (1) PNC Sept. 30, 2011 Tier 1 common and Tier 1 common DRAFT ratio estimated
Slide 6: Growing Customers – Retail Banking
Growing Customers – Retail Banking YTD highlights Strong results Organic checking Checking relationships YTD relationship growth¹ New originations annualized organic growth + 225 rate of 5.5% far exceeded Free checking the 1.2% population growth Relationship checking³ of our retail footprint On trac
Slide 7: Growing Customers – Corporate Banking
Growing Customers – Corporate Banking YTD highlights Strong results New primary clients: 1 Growth Corporate Banking New Cumulative Primary Client — New client additions represent 1,000 2011 Goal 869 revenue potential of $200 million per 750 2011 Actual performance of existing clients 565 500 — Grew
Slide 8: Growing Customers – Asset Management Group
Growing Customers – Asset Management Group YTD highlights Strong results Referral sales 1 New primary clients 2 Total sales increased 38% in 3Q11 compared with 3Q10 86% 34% Expanding distribution in all markets with a particular focus on higher growth markets — 216 external new hires in the first ni
Slide 9: Performance and Team Driven Culture
Performance and Team Driven Culture “Gallup Great Workplace Award” recipient for 2011 Reflects PNC’s brand attributes of ease, confidence and achievement Awarded to 29 companies worldwide for extraordinary ability to create an engaged workplace culture PNC is a three-time winner and the only U.S ban
Slide 10: Investing for Future Growth
Investing for Future Growth Large markets provide excellent C&IB Higher growth markets and Wealth Management opportunities Expanding into faster growing regions with attractive market demographics — Chicago, Atlanta 1 , Charlotte 1 , Orlando 1 RBC Bank (USA)¹ Market Potential People Adding relations
Slide 11: The Chicago Story – "Go-To-Market Strategy"
The Chicago Story – “Go-To-Market Strategy” Strategy Convert to PNC common platform Initiate “Human Sigma” in retail distribution Increase brand awareness Invest in product and relationship managers Significant increase in PNC’s customer confidence and brand awareness National Customer Confidence To
Slide 12: The Chicago Story – Market Opportunity
The Chicago Story – Market Opportunity Philadelphia Chicago Projected 5-year growth: Population .71% 1.86% Household income 15.4% 16.6% Market demographics: Population (in millions) 5.9 9.7 Deposits (in millions) $204,860 $291,896 Branches 1,892 3,214 Market opportunities: Households² (in millions)
Slide 13: The Chicago Story – Executing on the Opportunity
The Chicago Story – Executing on the Opportunity PNC’s demonstrated execution and revenue potential Total Corporate Banking and AMG Sales 1 Corporate Banking Cross-sell Revenue 2 $114 32% 52% Prior to conversion of Non-Credit $52 Sales Chicago market 68% Credit Sales $26 48% August 2011, annualized
Slide 14: Balance Sheet Management in a Low Rate Environment
Balance Sheet Management in a Low Rate Environment Strategies Increase responsible lending to partially offset lower asset yields Substantially reduce cost of funding to maintain net interest income Maintain liquidity and strong capital position Drivers Focus on risk-adjusted loan growth to mitigate
Slide 15: Accelerating Commercial and Industrial Loan Growth
Accelerating Commercial and Industrial Loan Growth Annual loan growth Utilization 25% 53% 20% 52% 15% 51% 10% 50% 5% 49% 0% 48% -5% -10% 47% -15% 46% -20% 45% PNC All Commercial Banks PNC Corporate & Institutional Banking Utilization 1 Every percentage point increase in utilization increases loan ba
Slide 16: Loan Growth Momentum
Loan Growth Momentum Average loan growth primarily driven by new clients YTD highlights Total Corporate & Institutional Banking Corporate Finance average loans increased in 3Q11 by 7% Middle Market compared with 3Q10 Business Credit Loans have been steadily increasing in Business Credit, Middle Mark
Slide 17: Capital Management
Capital Management Tier 1 common ratio Highlights Proforma Basel III Tier 1 common ratio 8.0% - 8.5%¹ estimated to be between 8.0-8.5% at December 31, 2012² – Possible improvement assuming final capital requirements reflect the inherent risk profile in our sub-investment grade securities – Assumes n
Slide 18: Delivering Long-Term Shareholder Value
Delivering Long-Term Shareholder Value Tangible book value per share¹ Pretax pre-provision earnings per share³ PNC % change 2007-2011² PNC % change 2007-2011² PNC 155% PNC 58% $11.16 $44.85 WFC 87% MTB 23% USB 71% WFC 17% JPM 48% USB 13% MTB 36% $7.06 JPM 11% BBT 24% -7% COF COF 21% -29% BBT $17.58
Slide 19: 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 20: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Legal and regulatory developments could have an impact on ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportuniti
Slide 21: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix o Integration of RBC Bank (USA)’s business and operations into PNC, which will include conversion of RBC Bank (USA)’s different systems and procedures, may take longer than anticipated or be more costly than anticipated
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of or for the nine months ended In millions Sept. 30, 2011 Tier 1 common capital (1) $23,410 Reported net income 2,578 Reported net income, if annualized 3,447 Return on tier 1 common capital 14.7% PNC believes that return on tier 1 common capital is useful
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended For the nine months ended In millions except per share data Dec. 31, 2007 September 30, 2011 % Change Total revenue $6,705 $10,777 Noninterest expense 4,296 6,386 Pretax pre-provision earnings from continuing operations $2,409 $4,391 Pretax
Slide 24: 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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