Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2012 Earnings Presentation
18 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 16, 2012
Slide 1: The PNC Financial Services Group, Inc. Third Quarter 2012 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Third Quarter 2012 Earnings Conference Call October 16, 2012
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: Significant 3Q12 Achievements
Significant 3Q12 Achievements 3Q12 highlights Net income of $925 million and EPS of $1.64 Strong overall performance driven primarily by customer, loan and fee income growth Overall credit quality improved Well-managed expenses - continuous improvement initiatives remained on track Continued to stre
Slide 4: Growing Customers – Long-Term Revenue Potential
Growing Customers – Long-Term Revenue Potential Retail Banking Corporate Banking 1 2 Net organic checking relationships New primary clients 869 + 225 + 230 773 694 + 48 YTD10 YTD11 YTD12 YTD10 YTD11 YTD12 Asset Management Group Residential Mortgage 3 Total loan originations New primary clients 4 Ref
Slide 5: Strong Financial Performance
Strong Financial Performance 3Q12 2Q12 3Q11 Balance 1 Sheet Loans ($ billions) $182 $180 $155 Growth 1 Deposits ($ billions) $206 $207 $188 3Q12 2Q12 3Q11 YTD12 YTD11 Strong Net income ($ millions) $925 $546 $834 $2,282 $2,578 Earnings Earnings per diluted share $1.64 $0.98 $1.55 $4.06 $4.79 3Q12 2Q
Slide 6: Strong Commercial Loan Growth Funded by Favorable Deposit Mix
Strong Commercial Loan Growth Funded by Favorable Deposit Mix % change from: 3Q12 highlights Category (billions) Sep. 30, Jun. 30, Sep. 30, 2012 2012 2011 Commercial 79.7 1% 28% Loans increased $1.5 billion or 1% from 2Q12, primarily driven by Commercial real estate 18.6 1% 13% total commercial lend
Slide 7: NII Improved YOY and YTD
NII Improved YOY and YTD (millions) 3Q12 2Q12 3Q11 YTD12 YTD11 Highlights 1 Core NII $2,154 $2,183 $1,884 $6,365 $5,639 Linked quarter: Purchase accounting 1 Core NII relatively stable due to accretion (PAA) 2 245 343 291 851 862 the impact of lower yielding assets partially offset by loan growth To
Slide 8: Client Growth and Sales Drive Noninterest Income
Client Growth and Sales Drive Noninterest Income (millions) 3Q12 2Q12 3Q11 YTD12 YTD11 Highlights 1 Asset management $305 $278 $287 $867 $838 Linked quarter: Consumer services 288 290 330 842 974 Noninterest income increased 54% Corporate services 295 290 187 817 632 due to: Residential mortgage – L
Slide 9: Disciplined Expense Management While Investing for Growth
Disciplined Expense Management While Investing for Growth (millions) 3Q12 2Q12 3Q11 YTD12 YTD11 Highlights 1 Core : Linked quarter: Personnel $1,173 $1,107 $948 $3,346 $2,912 Noninterest expense remained stable when compared to 2Q12 Occupancy 207 198 171 583 540 Increased personnel expense related E
Slide 10: 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 + $11.8 $10.8 $10.7 $1.6 $1.6 $1.7 $9.9 $9.9 $1.4 $1.4 $2.8 $3.0 $2.6 $2.5 $2.5 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Nonperforming loans 2,4 Provisi
Slide 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position 3Q12 highlights 1 Basel I Tier 1 common ratio of 9.5% Increased 20 bps due to retained earnings partially offset by increase in risk-weighted assets from loan growth Capital priorities: Build capital to support client growth and business investment Maintain appr
Slide 12: 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 13: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportu
Slide 14: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •In addition to the RBC Bank (USA) transaction, we grow our business in part by acquiring from time to time other financial services companies, financial services assets and related deposits and other liabilities. These
Slide 15: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of or for the three months ended As of or for the nine months ended In millions Sep. 30, 2012 Jun. 30, 2012 Sep. 30, 2011 Sep. 30, 2012 Sep. 30, 2011 Average common shareholders' equity $34,323 $33,648 $32,124 $33,654 $31,147 Average goodwill and other inta
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the nine months ended In millions Sep. 30, 2012 Sep. 30, 2011 % change Total noninterest income, as reported $4,227 $4,276 -1% Adjustments: Provision for residential mortgage repurchase obligations 507 66 Gain on sale of Visa Class B common shares (137) -
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended $ in millions Sept. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011 Net interest margin, as reported 3.82% 4.08% 3.90% 3.86% 3.89% Purchase accounting accretion (1) $245 $343 $263 $256 $291 Purchase accounting accret
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the quarter ended For the nine months ended In millions Sep. 30, 2012 Jun. 30, 2012 Sep. 30, 2011 Sep. 30, 2012 Sep. 30, 2011 Personnel, as reported $1,171 $1,119 $949 $3,401 $2,914 Integration costs (2) 12 1 55 2 Core Personnel 1,173 1,107 948 3,346 2,912
PNC Financial Services Group — Q3 2012 Earnings Presentation on 6ix