Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Goldman Sachs 14th Annual Bank CEO Conference (December 2003)
25 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Dec 2, 2003
Slide 1: Goldman Sachs 14th Annual Bank CEO Conference
The PNC Financial Services Group, Inc. New York, NY December 2, 2003 Goldman Sachs 14th Annual Bank CEO Conference EXHIBIT 99.1
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements with respect to PNC's outlook or expectations relating to its future business, operations, financial condition, financial performance and asset quality. Forward-looking statements are nec
Slide 3: Key Messages
Key Messages PNC has... Strong platform for growth Differentiated business mix that can deliver growth Clear and executable plans to achieve growth
Slide 4: Strong Platform for Growth
Strong Platform for Growth Solid financial position Enhanced risk management and corporate governance Premier technology platform Outstanding team and culture Clear strategic direction
Slide 5: PNC's Strategic Direction
To expand as a deposit-driven bank franchise with select asset management and processing businesses that leverage the core operating platform and customer base to enhance the long-term growth rate and return for shareholders PNC's Strategic Direction PNC will be defined as a company with: Above Aver
Slide 6: PNC's Valuable Business Mix
PNC's Valuable Business Mix Business Earnings Contribution Business Earnings are for the nine months ended 9/30/03 and are reconciled to GAAP in the Appendix A leading community bank in all major markets served Top 10 treasury management business Top 5 asset-based lender One of the nation's largest
Slide 7: PNC's Business Synergies
BlackRock manages trading desk, performs research and provides investment advice for PNC Advisors BlackRock Solutions provides risk management modeling capabilities to PNC BlackRock manages Midland's servicing deposits PNC Advisors invests customer funds at BlackRock Treasury Management refers sweep
Slide 8: A Differentiated Franchise
FITB 20.6% USB 20.5% WFC 18.9% PNC 17.1% NCC 16.2% BK 15.9% ONE 15.8% FBF 15.5% STI 14.2% WB 13.7% KEY 13.1% BK 68% PNC 64% WB 50% ONE 48% FITB 48% FBF 47% USB 43% WFC 41% STI 40% KEY 40% NCC 32% A Differentiated Franchise A Core Funded Bank... That's Fee Driven... Generating High Returns BK 64% PNC
Slide 9: Driving Growth and Efficiencies: Premier Technology Platform
Driving Growth and Efficiencies Premier Technology Platform Web-enabled branches Leading call center Positioned for Check 21 Treasury Management A/R Advantage product PFPC global transfer agency platform BlackRock Solutions 19 The PNC Financial Services Group, Inc. 38 Mellon Financial Corp. J.P. Mor
Slide 10: Regional Community Bank Strategies
Competitive and attractive product offerings Advertising positions PNC as the "bank of choice" for checking Targeted channels that leverage our business mix 2000 2003 Acquired 117 182 Established Branches Workplace Banking University Banking In-Store Loan Direct Mail Chairman's Challenge New Branche
Slide 11: Keeping More Customers
Keeping More Customers 2000 2001 2002 9/30/2003 Single-service 0.908 0.92 0.934 0.94 thousands YTD DDA Households - Retention 91% 92% 93% 94% Regional Community Bank Retention Initiatives Have Produced Impressive Results
Slide 12: Selling More to Customers
Provides Opportunities for Growth and Improved Retention ATM / debit card fees +14% Home equity loans +15% Online banking users +29% Growth Growth is for the nine months ended 9/30/03 vs. 9/30/02 Selling More to Customers Proven Success in Growing Valuable Customer Base 2001 2002 9/30/2003 Multi-ser
Slide 13: Building a More Successful Model: Wholesale Bank
Building a More Successful Model Wholesale Bank Improve customer acquisition and penetration Continue transition to customer-focused approach Establish best-in-class risk management Develop culture for growth Strategies Profile of New Corporate Banking Clients with Annual Revenue to PNC >$35,000 Cli
Slide 14: Selling More Fee-Based Products
Selling More Fee-Based Products Highlights 3Q02 4Q02 1Q03 2Q03 3Q03 108 112 115 117 126 Noninterest income is reconciled to GAAP in the Appendix and excludes held for sale gains, net securities gains, and the adoption of FIN 46 $ millions Wholesale Bank Noninterest Income Significant Treasury Manage
Slide 15: Strategies to Reposition PNC Advisors
Strategies to Reposition PNC Advisors Shift to advice-based provider New managed account product strengthens value proposition Energizing sales with well-prepared sales force Improve client retention Managing at-risk client relationships Strengthen client relationships Plans to improve client and em
Slide 16: PFPC - A Leading Global Provider of Fund Services
PFPC - A Leading Global Provider of Fund Services Highlights Improve client retention and penetration Build aggressive sales force Improve efficiency Strengthen product development and technology Accounting/ administration assets $510 $634 24% Custody assets $336 $384 14% Average FTEs quarter-ended
Slide 17: BlackRock - A World Class Asset Manager
1997 1998 1999 2000 2001 2002 2003 Fixed income 52 65 86 117 135 176 201 Liquidity 40 49 58 61 80 79 74 Equity 13 15 19 22 18 13 12 Alternative investment products 0.489 2 2 4 6 5 7 BlackRock - A World Class Asset Manager $ billions Assets Under Management Liquidity Fixed income Equity Alternative i
Slide 18: Key Messages
Key Messages PNC has... Strong platform for growth Differentiated business mix that can deliver growth Clear and executable plans to achieve growth
Slide 19: Every day is an opportunity to do more
© PNC Every day is an opportunity to do more:
Slide 20: Appendix
Appendix
Slide 21: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation and other statements made by PNC may contain forward-looking statements with respect to PNC's outlook or expectations for earnings, revenues, expenses, capital levels, asset quality or other future financial or business per
Slide 22: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) developments on such matters as business generation and retention, the ability to attract and retain management, liquidity and funding; (9) the denial of insurance coverage for claims made by PNC; (10) an increase in the number o
Slide 23: Non-GAAP to GAAP Reconcilement: Business Earnings
Non-GAAP to GAAP Reconcilement Banking businesses Regional Community Banking $449 51% Wholesale Banking 212 24% PNC Advisors 56 7% Total banking businesses 717 82% Asset management and processing businesses BlackRock 114 13% PFPC 43 5% Total asset management and processing businesses 157 18% Total b
Slide 24: Non-GAAP to GAAP Reconcilement: Wholesale Banking Noninterest Income
Non-GAAP to GAAP Reconcilement Wholesale Banking noninterest income $125 $164 $153 $134 $155 Less: Net securities gains - - 23 2 - Held for sale gains, net of valuation adjustments 17 52 15 15 23 Adoption of FIN 46 - - - - 6 Wholesale Banking - adjusted noninterest income $108 $112 $115 $117 $126 9/
Slide 25: Peer Group of Super-Regional Banks
Peer Group of Super- Regional Banks The Bank of New York Company, Inc. BK Bank One Corporation ONE Fifth Third Bancorp FITB FleetBoston Financial Corporation FBF KeyCorp KEY National City Corporation NCC The PNC Financial Services Group, Inc. PNC SunTrust Banks, Inc. STI U.S. Bancorp USB Wachovia Co
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