Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays Capital Global Financial Services Conference 2010
27 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Sep 14, 2010
Slide 1: The PNC Financial Services Group, Barclays Capital Global Financial Services Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Barclays Capital Global Financial Services Conference September 14, 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 The financial services industry continues to be challenged PNC is well-positioned to navigate these challenges and achieve even greater shareholder value - Demonstrated execution - Growing and deepening customer relationships - Investing to grow; disciplined expense management - A
Slide 4: Delivering Long-Term Value
Delivering Long-Term Value Demonstrated Execution Total shareholder return 350 PNC Bank Index ¹ S&P 500 300 250 200 PNC +192% 150 S&P +124% 100 Bank Index ¹ +86% 50 0 1995 1997 1999 2001 2003 2005 2007 2009 Sept 2010 (1) SNL Bank and Thrift Index. 4
Slide 5: PNC's Strong Franchise
PNC’s Strong Franchise Demonstrated Execution June 30, 2010 U.S. Rank ¹ th Deposits $179 billion 6 th Assets $262 billion 8 th CO Branches 2,458 5 KS th ATMs 6,539 5 OK Asset Management TX One of the largest bank-held asset managers in the U.S. Retail Corporate & Institutional Footprint covering nea
Slide 6: PNC's Higher Quality Balance Sheet
PNC’s Higher Quality Balance Sheet Demonstrated Execution June 30, Dec. 31, (billions) 2010 2008 ¹ Change Balance sheet positioning Investment securities $54 $43 $11 Core funded - loans to Loans 154 175 (21) deposits ratio of 86% Other assets 54 73 (19) Appropriately reserved Total assets $262 $291
Slide 7: A Focus on Risk Adjusted Returns
A Focus on Risk Adjusted Returns Demonstrated Execution 1H10 net interest margin 1H10 risk adjusted net interest margin ¹ COF 7.10% COF 4.63% PNC 4.29% MTB 3.15% WFC 4.28% PNC 2.90% BBT 3.98% WFC 2.54% USB 3.88% BBT 2.20% MTB 3.78% CMA 2.06% FITB 3.57% JPM 1.93% STI 3.30% USB 1.91% CMA 3.21% FITB 1.
Slide 8: PNC's Credit Quality Continued to Stabilize
PNC’s Credit Quality Continued to Stabilize Demonstrated Execution Nonperforming loans Accruing loans past due 1,3 Quarter end nonperforming loans 1,2 30-89 Days Loans transferred to nonperforming 90 Days + status during the quarter $2.5 $5.7 $5.8 $2.4 $2.4 $5.1 $5.1 $2.1 $2.2 $1.9 $4.2 $3.0 $1.0 $0
Slide 9: Pretax Pre-Provision Earnings More Than Doubled Credit Costs
Pretax Pre-Provision Earnings ¹ More Than Demonstrated Doubled Credit Costs Execution 1H10 income statement summary 1H10 noninterest income mix Categories in millions $7.7 14% Deposit Driven by well-diversified streams service charges $409 21% Consumer $4.1 $3.6 services Corporate 18% $611 services
Slide 10: Sales Momentum Across the Franchise
Growing Sales Momentum Across the Franchise and Deepening Relationships Sales contribution by region 1H10 annualized 1H10 franchise sales up 11% vs. 1H09 Products Corporate Eastern Banking markets 1H10 sales up 11% vs. 1H09 60% Wealth 92% of markets exceeded 1H10 goal Management Institutional Invest
Slide 11: Executing on C&IB Cross Sell Opportunities
Growing Executing on C&IB Cross Sell Opportunities and Deepening Relationships Treasury Management Capital Markets Revenue ¹ Revenue ¹ $600 $560 $292 $191 Sales at 120% of Sales at 125% of 1H10 cross-sell goal 1H10 cross-sell goal 1H09 1H10 1H09 1H10 PNC Has a Demonstrated Ability to Cross-Sell a Fu
Slide 12: Growing and Deepening Retail Relationships
Growing Growing and Deepening Retail Relationships and Deepening Relationships Checking relationships per branch Active Online Bill Pay customers Retail highlights 2Q10 average 2,057 870 transaction deposits up 2,046 826 $4.8 billion from 2Q09 ¹ 780 2,006 753 726 Net new checking relationships +59,0
Slide 13: Driving Wealth Management Referrals
Growing Driving Wealth Management Referrals and Deepening Relationships Referrals to Wealth Management Strong Eastern market referrals Improved Western market referrals (as a % of goal) (as a % of goal) 213% 206% 389% 103% 99% 95% From Retail From C&IB From Retail From C&IB 37% 112% 1Q10 2Q10 1Q10 2
Slide 14: Changes in the Payments Space
Investing Changes in the Payments Space to Grow; Disciplined Expense Management Mainstreaming of online payments Paper decline continues U.S. Households (millions) Transactions (billions) Online banking only Debit card Checks Online bill-pay Cash 51 +121% 23 33 26 21 (34%) 66 32 49 37 139 146 +11% 1
Slide 15: PNC - Investing to Grow
Investing PNC - Investing to Grow to Grow; Disciplined Expense Management Building out PNC’s Virtual Wallet platform to reach a broader consumer base over time Broadening PNC Healthcare Advantage with annual revenue growth of 15%+ since 2004 Leveraging our deep product strengths such as credit card,
Slide 16: Initial Cost Save Objectives Exceeded – Established New Target of $1.8 Billion
Initial Cost Save Objectives Exceeded – Investing to Grow; Disciplined Established New Target of $1.8 Billion Expense Management PNC acquisition-related cost saves Highlights $1.8 billion Successfully captured $1.6 billion in $1.6 billion annualized acquisition-related cost savings through 2Q10, wel
Slide 17: Well Positioned Capital Level and Structure
A Strong and Well Positioned Capital Level and Structure High Quality Capital Position June 30, 2010 Tier 1 common ratio PNC highlights Improved quality of 9.6% 9.8% capital 8.9% 9.0% - Common as a % of Tier 1 8.3% capital ² increased to 7.9% 8.0% 8.0% 7.5% 7.7% 78% ¹ from 50% in 2Q09 7.2% 7.4% 6.8%
Slide 18: Summary
Summary The operating environment for the financial services industry remains challenging PNC’s business model and execution have delivered differentiated results throughout this cycle PNC is well positioned to navigate the future challenges and achieve even greater shareholder value PNC Continues t
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 •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 21: 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 22: Impact of Sale of PNC Global Investment Servicing
1 Impact of Sale of PNC Global Investment Servicing Appendix Estimated gain and capital enhancement (billions) Sales price $2.3 Less: Book equity / intercompany debt (1.7) Pretax gain 0.6 Income taxes (0.3) After-tax gain 0.3 Elimination of net intangible assets: Goodwill and other intangible assets
Slide 23: Risk-Based Capital Ratios
Risk-Based Capital Ratios Appendix $ in billions Tier 1 common Tier 1 risk-based June 30, 2010 - Capital $18.2 $23.3 Ratios as of June 30, 2010 8.3% 10.7% Net impact of July 1, 2010 sale of GIS ¹ 1.4 1.4 Proforma $19.6 $24.7 Proforma ratios as of June 30, 2010 9.0% 11.3% Ratios as of December 31, 20
Slide 24: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended June 30, 2010 Net income Adjustments, Income taxes attributable to Diluted EPS from In millions except per share data pretax (benefit) ¹ Net income common shareholders net income Net income and diluted EPS, as reported $803 $786 $1.4
Slide 25: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the six months ended June 30, 2010 Net income Adjustments, Income taxes attributable to Diluted EPS from In millions except per share data pretax (benefit) ¹ Net income common shareholders net income Net income and diluted EPS, as reported $1,474 $1,119 $2
Slide 26: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended December 31, 2009 Net income Adjustments, Income taxes attributable to Diluted EPS from In millions except per share data pretax (benefit) ¹ Net income common shareholders net income Net income and diluted EPS, as reported $1,107 $1,
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,
PNC Financial Services Group — Barclays Capital Global Financial Services Conference 2010 on 6ix