Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Morgan Stanley Financials Conference 2012
27 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Jun 12, 2012
Slide 1: The PNC Financial Services Group, Inc. Morgan Stanley Financials Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Morgan Stanley Financials Conference June 12, 2012
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 Our successful business model positions us well for the future We have opportunities to capture organic growth Our disciplined growth strategies provide opportunities to deliver significant long-term shareholder value PNC Continues to Build a Great Company. DRAFT
Slide 4: Executing Our Business Model has Delivered Value
Executing Our Business Model has Delivered Value 1 PNC’s successful business model Tangible book value per share Staying core funded and % change 12/31/2007 to 3/31/2012 disciplined in our deposit pricing PNC PNC 152% Committed to our moderate risk philosophy $44.27 WFC 121% USB 86% Leveraging custo
Slide 5: Our Franchise Provides Significant Opportunities for Growth
Our Franchise Provides Significant Opportunities for Growth PNC’s revenue growth strategies: – Expanding into large, faster growing markets with successful Regional President “Go To Market” strategy – Improving brand awareness to help drive customer growth – Launching innovative new products that ad
Slide 6: Regional Presidents Model Key to Delivering PNC’s Capabilities to Local Markets
Regional Presidents Model Key to Delivering PNC’s Capabilities to Local Markets Connecting large bank products and services to local markets… Regional Presidents Markets DRAFT
Slide 7: Expanding the PNC Model in Underpenetrated Markets
Expanding the PNC Model in Underpenetrated Markets Total Corporate Banking and AMG sales Corporate Banking cross-sell sales by type $118 $105 14% 36% $xx 53% $62 86% $40 64% 47% $ 14 2010 2011 2010 2011 2012 Philadelphia 3 Chicago 3 RBC 4 Philadelphia 1 Chicago 1 RBC markets markets 2 AMG sales Non-
Slide 8: Improving Brand Awareness and Customer Confidence
Improving Brand Awareness and Customer Confidence Investments in PNC’s brand producing results 85% 1 PNC’s Brand Awareness 75% 75% 67% 65% 55% 55% 45% 2H 2009 2010 2011 Significant relative increase in PNC’s customer confidence National Customer Confidence 2 PNC customer confidence 3 US population c
Slide 9: Launching New Products that Enhance Customer Experience
Launching New Products that Enhance Customer Experience Driven by product innovation Future service delivery model Investing in technology across all customer segments Product innovation driving customer growth PNC’s customer service differentiation: – Information organized based on how customers th
Slide 10: Launching New Products that Enhance Customer Experience - PNC Wealth Insight
Launching New Products that Enhance Customer Experience - PNC Wealth Insight ® Customer demand for transparency, information Launched last fall to Wealth clients – 70% adoption rate Key features: – Aggregate and customize – Dynamic grouping – Personal rate of return – Integrated with banking – Colla
Slide 11: Growing Client Relationships
Growing Client Relationships Retail Banking Corporate & Institutional Banking Asset Management Group 1 Discretionary AUM Total Checking relationship growth Corporate Banking new primary 4 clients³ Net Flows 2011 total growth of 5.4%, greater New clients represent 12% of total 2011 referral sales 5 u
Slide 12: Generating Strong Commercial Loan Growth and Gaining Share
Generating Strong Commercial Loan Growth and Gaining Share (1) Peer Source: Company reports. JPM and COF loan growth reflects commercial banking segment reported in company reports. PNC 1Q12 DRAFT average commercial loan balance of $92,481 million includes impact of RBC Bank (USA) acquisition. PNC’s
Slide 13: Capturing Cross-Sell Opportunities
Capturing Cross-Sell Opportunities Retail Banking Corporate & Institutional Banking Asset Management Group New retail banking consumer Average revenue per average new Asset Management Group referral household cross-sell penetration 1 corporate banking primary clients 2 channel sales 3 44% $250 $100
Slide 14: Changing Customer Behavior
Changing Customer Behavior 1 U.S. branch transaction activity 2 U.S. banking transactions by channel (billions) (average annual change) 100 Mobile Deposit -7% to -9% Online ATM Call center 75 Branch Withdrawal -3% to -6% 50 Check -17% to -19% Cashing 25 Total -4% to -5% 0 2003 2004 2005 2006 2007 20
Slide 15: Serving Customers Tomorrow – Lower Cost to Serve
Serving Customers Tomorrow – Lower Cost to Serve Goals Continue to deliver industry leading customer loyalties while we evolve to a lower cost structure Lower cost to serve by migrating certain customer transactions toward lower cost channels Significant cost save opportunity with virtual sales kios
Slide 16: Serving Customers Tomorrow – Grow Revenue
Serving Customers Tomorrow – Grow Revenue Goals Use customer insights about transactional behaviors and needs to inform cross-channel actions Customer Interaction Management (CIM) capability enables delivery of targeted offers Significant opportunity to capture greater share of wallet Approximately
Slide 17: PNC’s Vision - Branch as Part of our Future Network
PNC’s Vision - Branch as Part of our Future Network Highlights Branches to operate as a team of customer solution experts Smaller special Multiple physical formats segment “stores” in the network Extensive full & kiosks function ATM Differentiated experience network by customer segment Integrated di
Slide 18: Capturing the Investment and Retirement Assets Opportunity
Capturing the Investment and Retirement Assets Opportunity Client - Mass Market Affluent High Net Worth Focused < $100K $100K - $1 MM > $1 MM Differentiated Multi -Channel Approach Call center Internet Branch Call center Internet Salesforce Branch Call center Internet Focused on growth in all client
Slide 19: Our Continuous Improvement Drives Capacity For Future Investments
Our Continuous Improvement Drives Capacity For Future Investments We have identified more than 600 initiatives to deliver our savings goals – 94 initiatives are estimated to achieve savings of greater than $1 million Estimated 2012 Financial 1 Expense Reduction Goals % Complete Impact (in millions)
Slide 20: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Basel III Tier 1 common ratio 1Q12 highlights 8.0% - 8.5% 1 Basel I Tier 1 common ratio of 9.3% at quarter end Target Basel III Tier 1 common ratio estimated to be between 8.0-8.5% by1 year-end 2013 7.0% 6.4% Capital priorities: 5.8% – Build capital to support c
Slide 21: Impact of Recent Increase in Repurchase Demands
1 Impact of Recent Increase in Repurchase Demands Residential Mortgage Repurchase New Claims Experiencing recent elevated levels of ($ millions) Qtr Avg GSE-related repurchase demands Vintage: 2011 1Q12 2Q12 2 Primarily in 2005-08 vintages 2004 & prior $14 $7 $21 Top reasons cited for recent claims:
Slide 22: Outlook – Full Year 2012 vs. 2011
Outlook 1 – Full Year 2012 vs. 2011 Strong balance sheet and revenue growth expected to drive higher earnings Credit costs expected to improve RBC Bank (USA) acquisition expected to be accretive in 2012 Estimated % Change 3 2 Combined Loans Increase mid to high teens Balance sheet 2 Total revenue In
Slide 23: 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 24: 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 25: 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 26: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of In millions except per share data Dec. 31, 2007 Mar. 31, 2012 % Change Common shareholders' equity $14,847 $33,408 Common shares outstanding 341 528 Book value per common share $43.60 $63.26 45% Goodwill and other intangible assets other than servicing r
Slide 27: 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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