Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Sandler O'Neill West Coast Financial Services Conference 2009
21 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Mar 3, 2009
Slide 1: The PNC Financial Services Group, Inc. – Sandler O'Neill West Coast Financial Services Conference
Exhibit 99.1 * * * * * * * The PNC Financial Services Group, Inc. * * Sandler O’Neill * West Coast Financial Services Conference March 3, 2009
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: Key Take-Aways
Key Take-Aways The PNC business model has performed well on a relative basis given the difficult environment A significant portion of National City’s credit risk has been recognized through purchase accounting The National City acquisition presents a tremendous opportunity to leverage PNC’s business
Slide 4: A Leader in Executing the Banking Basics
A Leader in Executing the Banking Basics PNC’s Business Model 4Q08 growth versus 2Q07 PNC Peers¹ Average total loans 19% 13% PNC has remained “open Average total deposits 12% 7% for business” throughout the credit crunch… Average noninterest-bearing deposits 6% (3%) 4Q08 annualized linked quarter gr
Slide 5: Balance Sheet Composition
Balance Sheet Composition PNC’s Business Model Dec 31 2008 % 2007 % Dec 31, 2008 in billions 2008 of total of total Key Ratios Cash and short-term investments $24 8% 7% Loans held for sale 4 2 3 Loans/Assets Investment securities 44 15 22 PNC Peers¹ Loans, net of unearned income 176 60 49 60% 69% Ot
Slide 6: Risk Management Overview
Risk Management Overview PNC’s Business Model PNC monitors multiple risk areas under our Enterprise Wide Risk program - Operational - Reputational - Credit - Strategic - Liquidity - Market PNC’s well-established committee structure requires multiple scenario analysis - Stress testing - Economic capi
Slide 7: Relative Credit Risk Profile
Relative Credit Risk Profile PNC’s Business Model Key 4Q08 Metrics (excluding the impact of National City) 2.75% 2.54% Credit migration accelerated in 4Q08 2.20% 1.94% 2.07% 1.86% Strengthened loan loss 1.77% 1.55% reserve coverage 1.65% Substantially de-risked 1.09% the National City loan 1.10% .92
Slide 8: Capital and Liquidity
Capital and Liquidity PNC’s Business Model Dec 31 Sept 30 Dec 31 Key Capital Ratios 2008 2008 2007 Tier 1 risk-based 9.7% 8.2% 6.8% Tangible common equity¹ 2.9% 3.6% 4.7% Tangible common equity excluding accumulated 4.3% 5.1% 4.8% other comprehensive loss 1,2 Key Liquidity Ratios Loans to deposits 9
Slide 9: Powerful Opportunities Across the Franchise
Leveraging Powerful Opportunities Across the Franchise PNC’s Business Model BlackRock (offices in 22 countries) BLK CO KS Global Investment Servicing (international offices) OK A leading provider of processing, technology and business intelligence services to asset managers, broker- dealers, and fin
Slide 10: Key Integration Objectives
Leveraging Key Integration Objectives PNC’s Business Model Objective Status Distressed and core loan portfolios identified, purchase Return the balance sheet accounting marks established to a moderate risk profile Credit approval and loan/deposit pricing processes aligned Achieve $1.2 billion of Cos
Slide 11: Key System Integration Milestones
Leveraging Key System Integration Milestones PNC’s Business Model System integration guiding principles Planning and actions will be customer focused and in accordance with our focus on managing toward a moderate risk profile PNC’s core suite of systems will be augmented with value added systems of
Slide 12: Significant Retail and Asset Management Revenue Opportunity
Significant Retail and Asset Management Leveraging PNC’s Revenue Opportunity Business Model Legacy PNC¹ PNC² Opportunity Allows for deeper penetration of our product set, especially fee based and payment business related Consumer products and small 2.9 million 6+ million Combine focus on on-line inn
Slide 13: Significant Corporate & Institutional Banking Revenue Opportunity
Significant Corporate & Institutional Leveraging PNC’s Banking Revenue Opportunity Business Model Legacy PNC¹ PNC² Opportunity Leverage established deposit gathering strategy Deposits $15 billion $27 billion and relationship based approach Treasury Leverage combined strengths in the middle market ma
Slide 14: Summary
PNC’s Summary Business Model A relentless focus on implementing the PNC model Managing toward an overall moderate risk profile Leverage the brand to grow high quality revenue streams A focus on continuous improvement while investing in innovation Disciplined approach to capital management Strong exe
Slide 15: 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 16: 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 or our financial condition or results of operations or our competitive position or reputation. Reputational impacts, in tu
Slide 17: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • Our ability to achieve anticipated results from this transaction is dependent on the state going forward of the economic and financial markets, which have been under significant stress recently. Specifically, we may in
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix In millions, except percentages Tier 1 risk-based capital ratio December 31 2008 Tier 1 risk-based capital $24,287 Less: TARP issuance (7,579) Tier 1 risk-based capital less TARP issuance $16,708 Risk weighted assets (assumes no decrease in assets without TARP
Slide 19: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix In millions, except per share data THREE MONTHS ENDED December 31, 2008 September 30, 2008 Adjustments, Net Diluted Adjustments, Net Diluted Pretax Income EPS Pretax Income EPS Net income (loss), as reported $(248) $(.77) $248 $.71 Adjustments: Conforming prov
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Purchase accounting, PNC, excluding National As of December 31, 2008 ($ in millions) National City eliminations, and PNC, as reported City (a) reclassifications (b) Total assets $157,373 $153,069 ($19,361) $291,081 Nonperforming assets 1,443 722 2,165 Nonperfo
Slide 21: Peer Group of Super-Regional Banks
Peer Group of Super-Regional Banks Appendix Ticker The PNC Financial Services Group, Inc. PNC BB&T Corporation BBT Comerica CMA Fifth Third Bancorp FITB KeyCorp KEY Regions Financial RF SunTrust Banks, Inc. STI U.S. Bancorp USB Wells Fargo & Company WFC List represents 2008 peer group after acquisit
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