Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Sanford C. Bernstein Strategic Decisions Conference 2009
20 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, May 27, 2009
Slide 1: The PNC Financial Services Group, Inc. at Sanford C. Bernstein Strategic Decisions Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Sanford C. Bernstein Strategic Decisions Conference May 27, 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: A Challenging Operating Environment
A Challenging Operating Environment High levels of uncertainty Severe volatility 90 Rising unemployment Unemployment Potential regulatory changes 75 8.9% Altered competitive landscape Changing customer needs 60 45 4.7% 30 15 CBOE VOLATILITY INDEX 0 June 2007 December 2007 June 2008 December 2008 May
Slide 4: Key Messages
Key Messages PNC’s successful business model is built to deliver solid results over the long term PNC is off to a strong start in 2009 with 1Q09 net income up 38% versus 1Q08 Strategic execution should leave PNC well- positioned to deliver long term shareholder value 4
Slide 5: PNC's Business Model
PNC’s PNC’s Business Model Business Model Returning to an overall moderate risk profile Leveraging the brand to grow high quality revenue streams A focus on continuous improvement while investing in innovation Disciplined approach to capital management Strong execution capabilities 5
Slide 6: PNC's Business Model Positioned Us Well
PNC’s Business Model Positioned Us Well PNC’s Business Model 1 PNC Peers 2007 – 2008 17% 11% PNC’s focus on the Average total loan 3 year CAGR 15% 12% banking basics of growth responsible lending… 5 year CAGR 15% 14% 2007 – 2008 10% 7% Average total 3 year CAGR 14% 10% deposit growth 5 year CAGR 14%
Slide 7: A Powerful Franchise
PNC’s A Powerful Franchise Business Model BlackRock (offices in 22 countries) BLK CO KS OK Global Investment Servicing (international offices) A leading provider of TX processing, technology and business solutions to the global investment industry Retail Asset Management Residential Mortgage Corpora
Slide 8: Diverse Revenue Streams and Strong Pretax Pre-Provision Earnings
Diverse Revenue Streams and Strong Pretax Strong Pre-Provision Earnings Start to 2009 1Q09 - Noninterest income categories in millions 27% $3.87 Residential mortgage $431 $2.33 Consumer 1Q09 Corporate 20% services total services 16% $316 noninterest $245 $1.54 income $1.6B $.88 Deposit Asset service
Slide 9: Balance Sheet Composition
Balance Sheet Composition Strong Start to 2009 March 31, % of billions 2009 total Cash and short-term investments $7 3% March 31, 2009 Interest-earning deposits with banks 15 5 Key Ratios 1 Loans held for sale 4 1 Investment securities 46 16 Loans/Assets 1 Loans 171 60 PNC Peers 2 Other assets and a
Slide 10: PNC's Loan Mix
PNC’s Loan Mix Strong Start to 2009 Equipment leasing $6.3 Commercial lending of Consumer lending of $74 $97 billion represents $23.8 billion represents 43% of 57% of total loans total loans Commercial Nonperforming loans Nonperforming loans real estate $48.3 Commercial $1.2 Consumer $0.1 Consumer C
Slide 11: PNC's Relative Credit Risk Profile
PNC’s Relative Credit Risk Profile Strong Start to 2009 1 Key 1Q09 Metrics 3.00% 2.59% 2.63% 2.51% 2.50% 2.11% 2.05% 2.00% 1.73% 1.50% 1.21% 1.01% 1.00% 0.50% 0.00% Nonperforming Nonperforming Net charge- Allowance for assets to total loans to total offs to average loan and lease assets loans loans
Slide 12: Strengthening Capital
Strengthening Capital Strong Start to 2009 Supervisory capital Tier 1 common ratio Tier 1 risk-based ratio assessment program Conducted under more 10.3% proforma¹ adverse economic 10.0% conditions 9.7% as 5.2% reported proforma¹ Emphasis on Tier 1 4.9% as common 4.8% reported Completed at-the- marke
Slide 13: Growing and Deepening Checking Relationships
Growing and Deepening Checking Relationships Strategic Execution Growth during the quarter Total retail checking relationships Deepening relationships % of legacy PNC consumer DDA households using: PNC Is Leading the Way in Building Relationships. (1) Legacy PNC checking relationships exclude relati
Slide 14: Virtual Wallet
Virtual Wallet Strategic Execution One of our fastest growing consumer bases Gen-Y will outnumber any other generation by 2017 Total income will surpass Baby Boomers by 2017 “A slick personal finance tool” Average new accounts opened per day at 175+ since BUSINESSWEEK launch From 1Q08 to 1Q09 PNC ha
Slide 15: Summary
Summary Strategic Execution A relentless focus on implementing the PNC model Returning to an overall moderate risk profile Leveraging the brand to grow high quality revenue streams A focus on continuous improvement while investing in innovation Disciplined approach to capital management Strong execu
Slide 16: 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 17: 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 tu
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our equity interest in BlackRock, Inc. are discussed in more detail in Blac
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended Dec 31 Mar 31 2008 2009 Change in millions Total revenue $1,676 $3,871 Noninterest expense 1,129 2,328 Pretax pre-provision earnings $547 $1,543 $996 For the year ended December 31 '07-'08 '05-'08 '03-'08 2003 2004 2005 2006 (a) 2007
Slide 20: 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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