Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2011 Earnings Presentation
23 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 21, 2011
Slide 1: The PNC Financial Services Group, Inc. First Quarter 2011 Earnings Conference Call
Exhibit 99.2 * * The PNC Financial Services Group, Inc. * First Quarter 2011 * Earnings Conference Call April 21, 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 1Q11 strategic achievements – strong results and capital actions Building momentum in our businesses – client growth and new product launches Key financial take-aways – strong balance sheet, strong earnings and solid returns 2011 outlook remains positive PNC Continues to Build a G
Slide 4: Significant 1Q11 Achievements
Significant 1Q11 Achievements 1Q11 highlights Delivered strong financial results through the execution of our business model Record capital levels - Increased quarterly common stock dividend 250% to $0.35 per share for 2Q11 - Confirmed 25 million share repurchase program; plan to repurchase up to $5
Slide 5: Focused on Growing Our Businesses
Focused on Growing Our Businesses Retail Banking Corporate & Institutional Banking Grew checking relationships by 56,000 Beginning to see growth in loans and during 1Q11 commitments and increased utilization Reached a definitive agreement to acquire 19 - Average loans increased $1.2 billion in 1Q11
Slide 6: Financial Performance
Financial Performance 1Q11 4Q10 1Q10 Strong Net income ($ millions) $832 $820 $671 Earnings Earnings per diluted share $1.57 $1.50 $0.66 1Q11 4Q10 1Q10 Operating Revenue ($ millions) $3,631 $3,903 $3,763 Leverage Provision ($ millions) $421 $442 $751 Noninterest expense ($ millions) $2,070 $2,340 $2
Slide 7: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Mar. 31, Dec. 31, Category (billions) 2011 2010 Highlights Investment securities $61.0 $64.3 Securities impacted by principal Core commercial loans 1 62.0 60.7 prepayments and sales 1 Core commercial real estate 15.8 16.4 Core commercial loan growth off
Slide 8: Credit Trends Continue to Improve
Credit Trends Continue to Improve Accruing loans past due 1,2 Nonperforming loans 1,3 30-89 Days 90 Days + Total nonperforming loans $5.8 $5.1 $4.8 $4.5 $4.4 $2.5 $1.9 $1.4 $1.4 $1.4 $.8 $.6 $.6 $.5 $.5 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 Provision and net charge-offs Coverage Provisio
Slide 9: Core and Provision-Adjusted Net Interest Income Trends
1 2 Core and Provision-Adjusted Net Interest Income Trends (millions) 1Q10 2Q10 3Q10 4Q10 1Q11 1 Core NII $1,939 $1,895 $1,890 $1,857 $1,895 Scheduled purchase accounting accretion 365 376 214 211 200 Cash recoveries 2 75 164 111 133 81 Total NII $2,379 $2,435 $2,215 $2,201 $2,176 Provision 751 823
Slide 10: Client Growth and Sales Momentum Provide Opportunities to Increase Noninterest Revenue
Client Growth and Sales Momentum Provide Opportunities to Increase Noninterest Revenue (millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Highlights Asset 1 $259 $243 $249 $303 $263 Asset management fees impacted in management comparison by higher 4Q10 BlackRock contribution. Strong Asset Management Consumer servi
Slide 11: Well-Controlled Expenses While Investing for Growth
Well–Controlled Expenses While Investing for Growth (millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Highlights Personnel $956 $959 $959 $1,032 $989 Personnel expense declined versus 4Q10 primarily due to lower incentive compensation Occupancy 187 172 177 194 193 Marketing expense declined in 1Q11 due to elevate
Slide 12: Strengthened Capital to Record Levels
Strengthened Capital to Record Levels Tier 1 common ratio PNC’s capital management actions / priorities 9.6% 9.8% 10.3% Actions: 7.9% 8.3% Increased quarterly common stock dividend 250% to $0.35 for 2Q11 Confirmed share repurchase program; plan to repurchase up to $500 million in 2011 2 Priorities:
Slide 13: Generating Solid Returns on a Higher Quality Balance Sheet
Generating Solid Returns on a Higher Quality Balance Sheet Return on average assets ROAA highlights 1.65% Declining credit costs more than offsetting 1.22% 1.23% 1.29% reductions in purchase accounting accretion 1.02% Average assets declined $4.6 billion since 1Q10 3Q10 benefitted from gain on sale
Slide 14: Outlook – Full Year 2011 vs. 2010
Outlook 1 – Full Year 2011 vs. 2010 Balance Sheet Commercial loan growth is expected Continue to shift deposit mix towards transaction accounts Income Statement Core NII expected to increase by more than $100 million Purchase accounting accretion expected to decline by $700 million, resulting in low
Slide 15: Summary
Summary 1Q11 strategic achievements – strong results and capital actions Building momentum in our businesses – client growth and new product launches Key financial take-aways – strong balance sheet, strong earnings and solid returns 2011 outlook remains positive PNC Continues to Build a Great Compan
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 •We will be impacted by the extensive reforms provided for in the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and ongoing reforms impacting the financial institutions industry generally.
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Competition can have an impact on customer acquisition, growth and retention, as well as on our credit spreads and product pricing, which can affect market share, deposits and revenues. •Our business and operating resul
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended March 31, 2011 Adjustments, Income taxes Average Return on Avg. In millions pretax (benefit)1 Net income Assets Assets Net income and return on avg. assets, as reported $832 Reported net income, if annualized $3,374 $262,554 1.29% Fo
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended June 30, 2010 Adjustments, Income taxes Average Return on Avg. In millions pretax (benefit)1 Net income Assets Assets Net income and return on avg. assets, as reported $803 Reported net income, if annualized $3,221 $264,366 1.22% For
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended $ in millions Mar. 31, 2011 Dec. 31, 2010 Sept. 30, 2010 June 30, 2010 Mar. 31, 2010 Net interest margin, as reported 3.94% 3.93% 3.96% 4.35% 4.24% Provision for credit losses $421 $442 $486 $823 $751 Provision for credit losses, if
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of Change from Dec. 31, 2008 to In millions except per share data Dec. 31, 2008 Dec. 31, 2010 Mar. 31, 2011 Dec. 31, 2010 Mar. 31, 2011 Common shareholders' equity $17,490 $29,595 $30,485 Common shares outstanding 443 526 526 Book value per common share $39
Slide 23: 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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