Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2011 Earnings Presentation
22 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 19, 2011
Slide 1: The PNC Financial Services Group, Inc. Third Quarter 2011 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Third Quarter 2011 Earnings Conference Call October 19, 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 Significant 3Q11 achievements and financial highlights Exceptional client growth Positioned to deliver long-term shareholder value PNC Continues to Build a Great Company. 3
Slide 4: Significant 3Q11 Achievements
Significant 3Q11 Achievements 3Q11 highlights Delivered strong financial results through exceptional client growth across businesses and markets Grew commercial and consumer loans Maintained a high quality balance sheet, improved overall credit quality Disciplined expense management Continued to mai
Slide 5: Focused on Growing Client Relationships
Focused on Growing Client Relationships Retail Banking Corporate & Institutional Banking Asset Management Group Organic checking relationship Corporate Banking new primary Assets under administration 1 3 growth clients (billions) Period end 4 YTD11 annualized organic growth of Ahead of pace to excee
Slide 6: Corporate and Institutional Banking Loan Momentum
Corporate and Institutional Banking Loan Momentum Linked quarter change in loans and commitments Year over year loan growth C&IB Loan Commitments $140 3.8% $130 2.8% 2.0% 3.3% 1.6% 2.3% 4Q10 3Q11 0.7% C&IB Loans -1.0% $68 $63 4Q10 1Q11 2Q11 3Q11 C&IB Loan Commitments C&IB Loans 4Q10 3Q11 Loan and co
Slide 7: Financial Performance
Financial Performance 3Q11 2Q11 4Q10 Balance Sheet Loans ($ billions) $155 $150 $151 Growth Deposits ($ billions) $188 $182 $183 3 3Q11 2Q11 YTD11 YTD10 Strong Earnings Net income ($ millions) $834 $912 $2,578 $2,249 Earnings per diluted common share $1.55 $1.67 $4.79 $3.62 3Q11 2Q11 4Q10 Capital Ad
Slide 8: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Change from: Highlights Category (billions) Sep. 30, Jun. 30, Dec. 31, 2011 2011 2010 Total investment securities $62.1 $2.7 $(2.2) Loans increased $4 billion or 3% linked-quarter driven by Core commercial loans 1 67.7 3.6 7.0 commercial and consumer lo
Slide 9: Credit Trends Continue to Improve
Credit Trends Continue to Improve Criticized commercial loans Accruing loans past due 2,3 Criticized Commercial loans 1 30-89 Days 90 Days + $15.0 $13.7 $1.8 $1.8 $1.9 $12.7 $1.5 $1.6 $11.7 $10.8 $2.6 $2.7 $2.6 $2.6 $2.7 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 Nonperforming loans 2,4 Provi
Slide 10: Net Interest Income and Provision Trends
Net Interest Income and Provision Trends (millions) 3Q11 2Q11 YTD11 YTD10 Highlights 1 Quarterly: Core NII $1,883 $1,860 $5,638 $5,724 Total NII improved from 2Q11 due 1 2 to growth in core NII and better Purchase accounting accretion 292 290 863 1,305 than expected cash recoveries on commercial imp
Slide 11: Client Growth and Sales Momentum Provide Opportunities to Increase Noninterest Revenue
Client Growth and Sales Momentum Provide Opportunities to Increase Noninterest Revenue (millions) 3Q11 2Q11 YTD11 YTD10 Highlights 1 Asset management $287 $288 $838 $751 Quarterly: Asset management and consumer Consumer services 330 333 974 939 services remained stable 2 Corporate services 187 228 6
Slide 12: Well–Controlled Expenses While Investing for Growth
Well–Controlled Expenses While Investing for Growth (millions) 3Q11 2Q11 YTD11 YTD10 Highlights Personnel $949 $976 $2,914 $2,874 Quarterly: Personnel, Occupancy, Equipment and Occupancy 171 176 540 536 Other expenses remain well-managed Equipment 159 158 484 492 Marketing increased due to elevated
Slide 13: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Tier 1 common ratio Highlights Tier 1 ratio increased primarily due to $1 billion 10.3% 10.5% 10.5% preferred stock issuance 9.6% 9.8% Proforma Basel III Tier 1 common ratio estimated 2 to be between 8.0-8.5% at December 31, 2012 – Significant upside potential a
Slide 14: Outlook for 2012 Compared with Estimated 2011
Outlook for 2012 Compared with Estimated 2011 1 PNC stand-alone: Stable NII assuming low interest rates and no loan growth Increasing fees driven by client growth, despite regulatory impacts Lower credit costs 2 Flat expenses RBC Bank (USA): Immediately accretive assuming no capital issuance PNC is
Slide 15: Delivering Long-Term Shareholder Value
Delivering Long-Term Shareholder Value 1 3 Tangible book value per share Pretax pre-provision earnings per share 2 2 PNC % change 2007-2011 PNC % change 2007-2011 $11.45 PNC 144% PNC 62% $42.93 Peer 1 69% Peer 1 37% Peer 2 63% Peer 2 16% Peer 3 43% Peer 3 14% Peer 4 $7.06 Peer 4 32% 11% Peer 5 18% -
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 Legal and regulatory developments could have an impact on ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunitie
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix o Integration of RBC Bank (USA)’s business and operations into PNC, which will include conversion of RBC Bank (USA)’s different systems and procedures, may take longer than anticipated or be more costly than anticipated
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of or for the three months ended In millions Sept. 30, 2011 June 30, 2011 Mar. 31, 2011 Dec. 31, 2010 Sept. 30, 2010 Tier 1 common capital (1) $23,410 $22,745 $21,976 $21,188 $20,437 Reported net income 834 912 832 820 1,103 Reported net income, if annualiz
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of In millions except per share data Dec. 31, 2007 June 30, 2011 % Change Common shareholders' equity $14,847 $31,588 Common shares outstanding 341 526 Book value per common share $43.60 $60.02 38% Goodwill and other intangible assets $8,853 $9,005 Common s
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended For the six months ended In millions Dec. 31, 2007 June 30, 2011 % Change Total revenue $6,705 $7,233 Noninterest expense 4,296 4,246 Pretax pre-provision earnings $2,409 $2,987 Pretax pre-provision earnings, annualized $2,409 $6,024 Common
Slide 22: 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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