Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Goldman Sachs Financial Services Conference 2010
32 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Dec 7, 2010
Slide 1: The PNC Financial Services Group, Goldman Sachs Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Goldman Sachs Financial Services Conference December 7, 2010
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 2010 has been a year of strategic achievements for PNC in a challenging environment PNC is well positioned to deliver strong returns PNC has substantial opportunities for growth to achieve even greater shareholder value PNC Continues to Build a Great Company. 3
Slide 4: PNC - A Powerful Franchise
A PNC - A Powerful Franchise Focus on Achievement 1 Sept. 30, 2010 U.S. Rank th Deposits $179 billion 6 th Assets $260 billion 8 th Branches 2,461 5 CO KS th ATMs 6,626 5 OK Asset Management TX One of the largest bank-held asset managers in the U.S. Retail Corporate & Institutional Footprint coverin
Slide 5: Building a High Quality, Differentiated Balance Sheet
Building a High Quality, A Focus on Differentiated Balance Sheet Achievement Sept. 30, Change from (billions) 2010 Dec. 31, 2008 1 Sept. 30, 2010 highlights Investment securities $63.5 $20.0 Loans to deposits ratio of 84% Total loans 150.1 (25.4) Loans declined driven by loan Other assets 46.5 (25.5
Slide 6: Continued Credit Quality Improvement
A Continued Credit Quality Improvement Focus on Achievement 1 2 Nonperforming loans Accruing loans past due 1 Quarter end nonperforming loans 30-89 Days 90 Days + $5.7 $5.8 $5.1 $5.1 $4.8 $2.5 $2.4 $2.4 $1.9 $1.4 $0.9 $0.9 $0.8 $0.6 $0.6 3Q09 4Q09 1Q10 2Q10 3Q10 3Q09 4Q09 1Q10 2Q10 3Q10 (1) Loans ac
Slide 7: Well-Positioned Capital Level to Support Growth
A Well-Positioned Capital Level to Support Growth Focus on Achievement Sept. 30, 2010 Tier 1 common ratio PNC’s capital priorities 9.6% 10.0% Maintain strong 9.5% 9.0% levels 8.5% 8.6% 8.0% 8.0% 8.2% 7.6% 7.6% Support our clients 7.3% 6.4% Invest in our businesses 4.8% Basel III clarity Return capit
Slide 8: Sustaining Solid Returns
A Sustaining Solid Returns Focus on Achievement 1 Return on tangible common equity¹ 3Q10 ROTCE USB 21% 2 PNC Peer average MTB 20% 40% WFC 17% 33% PNC4 16% 30% JPM 15% 27% FITB 12% 3 21% KEY 12% 18% 20% 20% 16% 4 BBT 9% 13% STI 5% 10% CMA 4% 10% 9% 8% RF (8%) 6% 2% 2% 6% BAC (23%) 0% 1Q09 2Q09 3Q09 4
Slide 9: PNC's Growth Opportunities
A PNC’s Growth Opportunities Focus on Growth Higher interest rates Growth through lending Credit quality improvement Growth through Disciplined market share expense management Growth through Capital Growth innovation management through execution Time 9
Slide 10: Sales Momentum Across the Franchise
Growth Sales Momentum Across the Franchise Through Execution Sales contribution by region YTD10 annualized YTD10 franchise sales up 15% vs. YTD09 Products Corporate Eastern Banking markets YTD10 sales up 8% vs. YTD09 57% Wealth 100% of markets exceeded YTD10 goal Management Institutional Investments
Slide 11: Growing Corporate Services Revenue
Growth Growing Corporate Services Revenue Through Execution Treasury Management Capital Markets 1 1 Revenue Revenue One of the nation's top A leading provider of $919 treasury management innovative investment $841 providers $411 banking solutions to the middle market Excellent source of low $346 In
Slide 12: Growing Asset Management and Residential Mortgage Revenue
Growing Asset Management and Growth Through Residential Mortgage Revenue Execution Asset Management Residential Mortgage 1 Revenue Servicing Fees $751 Asset Management Group Aligning the business continued to outperform $196 with PNC’s model $639 sales and client acquisition goals $171 Focused on le
Slide 13: Growing and Deepening Customer Relationships
Growth Growing and Deepening Customer Relationships Through Execution Growing and retaining checking relationships 3 Checking relationships Retail active customers (thousands) (Growth during the quarter) Online banking Online bill payment +53,000 2,968 2,682 +43,000 +37,000 942 753 1 2 3Q08 3Q09 3Q1
Slide 14: Recognizing Changing Customer Preferences
Growth Recognizing Changing Customer Preferences Through Innovative Thinking Customers have more choices and want more control US banking transactions by channel (billions) 100 Mobile Online ATM Growth in electronic Call center channels continues to 75 Branch reduce consumer check payments In 2002,
Slide 15: Delivering Innovative Products and Services
Growth Delivering Innovative Products and Services Through Innovative Thinking Recognized as an industry leading payment account Overall site ranked #1 - Inside Online Banking 2010 A tremendously successful platform for PNC to reach a broader consumer base over time Virtual Wallet - Student Edition
Slide 16: Capturing More Share of the Wallet
Growth Capturing More Share of the Wallet Through Innovative Thinking While PNC’s footprint includes some …the footprint also includes some of the lower growth markets… wealthiest. Deposit State market share 1 California Projected population 2 New York PNC has growth 3 Florida 13 demonstrated 4 Illi
Slide 17: Helping Clients Manage Their Businesses
Growth Helping Clients Manage Their Businesses Through Innovative Thinking Industry-wide, nearly $2 trillion in annual healthcare payments are processed; growing at 7% annually PNC was the first bank accredited by the Electronic Healthcare Network Accreditation Commission for both clearinghouse and
Slide 18: PNC's Net Interest Income Trend
Growth PNC’s Net Interest Income Trend From Higher Rates PNC’s net interest income, excluding purchase accounting, has remained stable NII excluding purchase accounting accretion Impact of purchase accounting accretion Average interest-earning assets $2.0 $1.8 $1.8 $1.9 $1.9 $1.7 $1.7 $244 $243 $236
Slide 19: Active Balance Sheet Management
Growth Active Balance Sheet Management From Higher Rates PNC Duration Fed Funds of Equity Effective Rate (At Quarter End) (At Quarter End) PNC 3Q10 NII Sensitivity 4 6% 3 Effect on NII in 1st year from 5% gradual interest rate change 2 over following 12 months 1 4% 100 bps increase +1.5% 0 1 100 bps
Slide 20: Capturing Lending Opportunities
Growth Capturing Lending Opportunities Through Lending 3Q10 loans/deposits Substantial lending potential JPM 76% Corporate & Institutional KEY 84% Increased loan utilization PNC 84% RF 89% Commercial real estate WFC 93% Retail FITB 93% Small business BAC 96% Credit card STI 96% BBT 96% Direct/indire
Slide 21: Leveraging the PNC Brand to Drive Revenue Growth
Leveraging the PNC Brand to Drive Growth Through Revenue Growth Market Share 1 Revenue 1 per sales FTE by selected tier 1 market Revenue per sales FTE by selected tier 2 market Tier 1 market baseline average Tier 2 market baseline average Washington D.C., Columbus and St. Louis, Florida and Milwauke
Slide 22: PNC Is Well Positioned to Capture Growth Opportunities
PNC Is Well Positioned to Capture A Focus on Growth Opportunities Growth PNC’s view Balance sheet remains well-positioned for rising rates Higher interest rates Non-distressed loan contraction beginning to level off Growth through Credit metrics expected to continue to improve with a lending stable
Slide 23: A Demonstrated Ability to Achieve Greater Shareholder Value
A Demonstrated Ability to Achieve A Focus on Greater Shareholder Value Growth PNC 5-year CAGR versus peers¹ through 3Q10 As of or for the three months ended Sept. 30 PNC Peers¹ Assets +23% +13% Deposits +24% +12% Book value/share +14% +1% Annualized net income +18%² (23%) Annualized EPS +5%² (14%) T
Slide 24: Summary
Summary 2010 has been a year of strategic achievements for PNC in a challenging environment PNC is well positioned to deliver strong returns PNC has substantial opportunities for growth to achieve even greater shareholder value PNC Continues to Build a Great Company. 24
Slide 25: 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 26: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •We will be impacted by the extensive reforms enacted in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Further, as much of that Act will require the adoption of implementing regulations by a number of di
Slide 27: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Our business and operating results can also be affected by widespread disasters, terrorist activities or international hostilities, either as a result of the impact on the economy and capital and other financial markets
Slide 28: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended September 30, 2010 Net income attributable to Diluted EPS Adjustments, Income taxes common from net Average Return on 1 In millions except per share data and percentages pretax (benefit) Net income shareholders income Assets Avg. Ass
Slide 29: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the nine months ended September 30, 2010 Net income attributable to Diluted EPS Adjustments, Income taxes common from net Average Return on 1 In millions except per share data and percentages pretax (benefit) Net income shareholders income Assets Avg. Asse
Slide 30: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the nine months ended Sept. 30, 2010 Sept. 30, 2009 In millions except ratio Total revenue $11,273 $11,342 Noninterest expense 6,273 6,864 Pretax pre-provision earnings $5,000 $4,478 Provision $2,060 $2,881 Income from continuing operations before income t
Slide 31: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended September 30, 2010 Net income attributable to Diluted EPS Adjustments, Income taxes common from net 1 In millions except per share data and percentages pretax (benefit) Net income shareholders income Net income and diluted EPS, as re
Slide 32: 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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