Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Citigroup Financial Services Conference 2010
25 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Mar 11, 2010
Slide 1: The PNC Financial Services Group, Inc. Citigroup Financial Services Conference
Exhibit 99.1 * * * * * * * * The PNC Financial Services Group, Inc. * * Citigroup Financial Services Conference * March 11, 2010
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 An overview of the PNC business model and franchise Our performance has positioned us well with a strong balance sheet Our earnings capacity is expected to deliver strong results in 2010 We are well-positioned to meet our strategic financial objectives PNC Continues to Build a Gre
Slide 4: PNC's Business Model
PNC’s Business Model Overview of PNC Staying core funded and disciplined in our deposit pricing Returning to a moderate risk profile Leveraging customer relationships and our strong brand to grow high quality, diverse revenue streams Creating positive operating leverage while investing in innovation
Slide 5: PNC's Powerful Franchise
PNC’s Powerful Franchise Overview of PNC Dec. 31, 2009 U.S. Rank¹ th Deposits $187 billion 5 th Assets $270 billion 8 th Branches 2,512 5 CO KS th ATMs 6,473 5 OK Asset Management TX One of the largest bank-held asset managers in the U.S. Retail Corporate & Institutional Footprint covering nearly 1/
Slide 6: 2009 Performance Summary
2009 2009 Performance Summary Performance Summary Execution of the PNC business model delivered strong financial results – net income of $2.4 billion Well-positioned balance sheet at year end with an improved risk profile, increased loan loss reserves, more liquidity and more capital Strong revenue
Slide 7: PNC's Higher Quality, Differentiated Balance Sheet
PNC’s Higher Quality, Differentiated 2009 Balance Sheet Performance Summary Category (billions) Dec. 31, YoY 2009 change Balance sheet positioning Investment securities $56 $13 Core funded - loans to deposits Total loans 157 (18) ratio of 84% Other assets 57 (16) Total assets $270 ($21) Appropriatel
Slide 8: Relative Balance Sheet Strength
2009 Relative Balance Sheet Strength Performance Summary 4Q09 loans/deposits 4Q09 loans/assets 4Q09 comm’l real estate loans/assets JPM 68% JPM 31% JPM 3% COF 78% BAC 40% BAC 3% PNC 84% COF 53% COF 8% KEY 90% PNC 58% PNC 9% BBT 90% BBT 63% WFC 11% BAC 91% WFC 63% BBT 11% FITB 91% KEY 63% USB 12% RF
Slide 9: Relative Credit Risk Profile
2009 Relative Credit Risk Profile Performance Summary Key 2009 Metrics¹ 2009 reserves / net charge-offs 3.96% PNC 1.9 X 3.60% MTB 1.7 3.38% 3.22% BBT 1.5 2.77% FITB 1.5 2.62% 2.34% RF 1.4 JPM 1.4 1.64% WFC 1.3 USB 1.3 CMA 1.1 KEY 1.1 BAC 1.1 Nonperforming Nonperforming Net charge- Allowance for STI
Slide 10: Relative Capital Positioning
2009 Relative Capital Positioning Performance Summary December 31, 2009 Tier 1 common ratio 10.2% 8.5% 8.6% 8.8% PNC’s capital priorities 8.2% 7.7% 7.8% 8.0% 7.5% 7.0% 7.2% Maintain strong capital 6.8% 6.5% levels 6.0% Support our clients Invest in our businesses Return capital to shareholders when
Slide 11: Pretax Pre-Provision Earnings Exceeded Credit Costs Substantially
Pretax Pre-Provision Earnings² Substantially 2009 Exceeded Credit Costs Performance Summary PNC full year 2009 2009 pretax pre-provision earnings²/provision MTB 1.86 X $16.2 WFC 1.83 $15.2 excluding the BLK/BGI gain PNC Excluding the BLK/BGI gain 1.55x³ 1.82 JPM 1.50 USB 1.47 $9.1 BBT 1.37 $7.1 COF
Slide 12: Strong Earnings Capacity in 2010
Strong Earnings Capacity in 2010 2010 Expectations¹ 2010 expectations¹ PNC acquisition cost saves Net interest income and net interest (millions) $1,500 margin consistent with 3Q09 annualized $1,300+ 4Q09 Lower noninterest income due to annualized >$1,200 2009 impact of MSR hedging gains Reduced exp
Slide 13: PNC's Opportunities for Growth
Strategic PNC’s Opportunities for Growth Financial Objectives Strategic benefits Leveraging PNC brand to grow clients Immediate benefits across our businesses Product innovation Higher loan utilization rates Lower deposit costs Commercial real estate refinancings Leveraging cross sell capabilities I
Slide 14: Balance Sheet Management
Strategic Balance Sheet Management Financial Objectives PNC Duration Fed Funds of Equity Effective Rate (At Quarter End) (At Quarter End) PNC 4Q09 NII Sensitivity 4 6% st 3 Effect on NII in 1 year from 5% gradual interest rate change 2 over following 12 months 1 4% 100 bps increase 1.1% 0 (1) 3% 100
Slide 15: PNC's Framework for Success
Strategic PNC’s Framework for Success Financial Objectives PNC Business Strategic Key Metrics Dec. 31, 2009 Action Plans Model Objective Staying core Loans to deposits Maximize credit portfolio value ratio 84% 80%-90% funded (as of) Reposition deposit gathering strategies Focus “front door” on risk-
Slide 16: Summary
Summary The execution of its business model resulted in a strong 2009 performance leaving PNC well-positioned for an economic recovery PNC’s earnings capacity is expected to deliver a solid 2010 financial performance PNC is positioned to achieve its strategic financial objectives PNC Continues to Bu
Slide 17: 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 18: 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 tur
Slide 19: 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 inc
Slide 20: Impact of Pending Sale of PNC Global Investment Servicing
Impact of Pending Sale of PNC Global Investment Servicing¹ Appendix Estimated gain, cash proceeds and capital enhancement (billions) Book Cash Sales price $2.3 $2.3 Less: Book equity / intercompany debt (1.5) Adjustments / other² (0.0) (0.2) Pretax gain 0.8 2.1 Taxes (0.3) (0.3) After-tax gain / inc
Slide 21: Risk-Based Capital Ratios
Risk-Based Capital Ratios Appendix $ in billions Tier 1 common Tier 1 risk-based December 31, 2009 - Capital $13.9 $26.5 Ratios 6.0% 11.4% TARP preferred stock redemption – February 2010¹ (.3) (7.6) Common equity offering – February 2010² 3.0 3.0 Net impact of pending sale of GIS³ 1.6 1.6 Proforma $
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Dec. 31, 2008 Income taxes 1 For the three months ended, in millions Pretax (benefit) Net income Reported net income (loss) ($246) Conforming provision for credit losses - National City $504 ($176) 328 Net income excluding conforming provision for credit $82 l
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Year ended Dec. 31, 2009 Gain on BlackRock/BGI Reported excluding 1 in millions except percentages Reported transaction BlackRock/BGI gain Net interest income $9,083 $9,083 Noninterest income 7,145 $1,076 6,069 Total revenue $16,228 $1,076 $15,152 Noninterest
Slide 24: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Dec. 31, 2009 Sept. 30, 2009 Income Diluted EPS Income Diluted EPS Adjustments, taxes Net from net Adjustments, taxes Net from net 1 1 For the three months ended, in millions except per share data pretax (benefit) income income pretax (benefit) income income N
Slide 25: 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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