Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2012 Earnings Presentation
19 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 18, 2012
Slide 1: The PNC Financial Services Group First Quarter 2012 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. First Quarter 2012 Earnings Conference Call April 18, 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 1Q12 Achievements
Significant 1Q12 Achievements 1Q12 highlights Delivered excellent financial results driven by customer, loan and revenue growth Successfully completed conversion of RBC Bank (USA) – integration costs of $0.18 per diluted common share¹ Capital actions reflect balance sheet strength – Increased quarte
Slide 4: RBC Bank (USA): Closed, Converted and Accretive
RBC Bank (USA): Closed, Converted and Accretive Expanded into faster growing Attractive market demographics regions with attractive market Five year growth demographics while adding: forecast (CAGR): HH >1MM 4 Annual Annual Net Worth – 900,000 customers population² GDP³ – Over 400 branches Atlanta 2
Slide 5: Focused on Growing Client Relationships
Focused on Growing Client Relationships Retail Banking Corporate & Institutional Banking Asset Management Group Net organic checking relationship Corporate Banking new primary Discretionary assets under growth¹ clients² management³ + (11) 5 61% of checking accounts opened in Growth markets (Florida,
Slide 6: Strong Financial Performance
Strong Financial Performance 1Q12 4Q11 1Q11 Balance Sheet Loans ($ billions) $176 $159 $149 Growth Deposits ($ billions) $206 $188 $182 1Q12 4Q11 1Q11 Strong Earnings Net income ($ millions) $811 $493 $832 Earnings per diluted common share $1.44 $.85 $1.57 1Q12 4Q11 1Q11 Capital Adequacy 1 Tier 1 co
Slide 7: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Change from: 1Q12 highlights Category (billions) Mar. 31, 2012 Dec. 31, 2011 Total investment securities $64.6 $3.9 Loans increased $17 billion or 11% from 4Q11 driven by organic commercial loan Commercial lending 100.6 12.3 growth and approximately $15
Slide 8: Loan Growth Driving Net Interest Income
Loan Growth Driving Net Interest Income 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 highlights Average interest earning assets (in billions) $237.7 $228.4 $224.1 $220.7 $224.1 Average earning assets grew by $9 billion or 4% from 4Q11 and Average yields/rate: 6% from 1Q11 with RBC Bank Interest-earning assets 4.41
Slide 9: Client Growth and Sales Driving Noninterest Revenue
Client Growth and Sales Driving Noninterest Revenue (millions) 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 highlights Asset management¹ $284 $250 $287 $288 $263 Noninterest income increased 7% from 4Q11 Consumer services 264 269 330 333 311 Asset management increased 14% Corporate services² 232 266 187 228 217 du
Slide 10: Disciplined Expense Management While Investing for Growth
Disciplined Expense Management While Investing for Growth (millions) 1Q12 4Q11 3Q11 2Q11 1Q11 1Q12 highlights 1 Core : Total noninterest expense declined Personnel $1,067 $1,050 $948 $975 $989 $264 million Occupancy 178 197 171 176 193 Core noninterest expense impacted by: Equipment 168 173 159 158
Slide 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Basel III Tier 1 common ratio 1Q12 highlights 1 3 Basel I Tier 1 common ratio of 9.3% 8.0% - 8.5% Target Basel III Tier 1 common ratio estimated to 1 be between 8.0-8.5% by year-end 2013 Capital priorities: – Build capital to support client growth and business i
Slide 12: Improving Outlook – Full Year 2012 vs. 2011
1 Improving Outlook – Full Year 2012 vs. 2011 Strong balance sheet and revenue growth expected to drive positive operating leverage Credit costs expected to improve RBC Bank (USA) acquisition expected to be accretive in 2012 Estimated % Change³ 2 Combined Loans Increase mid to high teens Balance she
Slide 13: 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 14: 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 opportun
Slide 15: 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 o
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the quarter ended In millions, except per share data Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011 Integration costs, pretax $145 $28 $1 Integration costs, after-tax 94 18 - Integration costs impact on diluted earnings per share $0.18 $0.04 $0.00 After-tax amo
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Average yields/rates Yield on interest-earning assets Loans Commercial 4.51% 4.66% 4.86% 4.88% 5.04% Commercial real estate 5.19 5.33 5.25 5.51 4.63 Equipment leas
Slide 18: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the quarter ended In millions Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011 Jun. 30, 2011 Mar. 31, 2011 Personnel, as reported $1,111 $1,052 $949 $976 $989 Integration costs 44 2 1 1 - Core Personnel 1,067 1,050 948 975 989 Occupancy, as reported 190 198 171 1
Slide 19: 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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