Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q2 2009 Earnings Presentation
14 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 23, 2009
Slide 1: The PNC Financial Services Group, Second Quarter 2009 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Second Quarter 2009 Earnings Conference Call July 23, 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 from 2Q09
Key Take-Aways from 2Q09 Results demonstrate resiliency of our business model Transitioning the balance sheet – increased capital and maintained strong liquidity Credit quality deterioration continued along with the broader economy – continued to build loan loss reserves Businesses performing well a
Slide 4: 2Q09 Performance Overview
2Q09 Performance Overview 2Q09 1Q09 Net income, millions $207 $530 Reported earnings per diluted common share $.14 $1.03 EPS impact of: Declared preferred dividends including TARP .26 .11 Integration costs .20 .08 Special FDIC assessment .19 - 2Q09 earnings summary Solid performance driven by divers
Slide 5: Diverse Revenue Streams Less Well Controlled Expenses Exceed Credit Costs
Diverse Revenue Streams Less Well Controlled Expenses Exceed Credit Costs 2Q09 - Noninterest income categories in millions $7.9 14% Revenue Expense 1 Pretax pre-provision earnings Residential Provision 18% mortgage $245 15% Consumer $5.0 services Corporate $4.0 $329 services $264 2Q09 noninterest 45
Slide 6: Loan Portfolio
Loan Portfolio 14% Portfolio highlights 9% $22.9 Commercial real estate is 67% project $15.2 related and 33% mortgage Commercial Other real estate Residential real estate is 10% construction consumer and 90% mortgage 20% Home equity portfolio is high quality and performing well $32.9 Impaired portfo
Slide 7: Credit Quality Deterioration Continued
Credit Quality Deterioration Continued (billions, except percentages) June 30, 2009 March 31, 2009 Nonperforming loans Areas of focus Commercial real estate $1.66 $1.21 Commercial 1.45 1.21 Commercial real Equipment leasing .12 .12 estate Total commercial NPLs $3.23 $2.54 NPLs/commercial lending 3.5
Slide 8: Strengthening Capital Ratios
Strengthening Capital Ratios Tier 1 common ratio Tier 1 risk-based ratio 2Q09 Highlights 1 10.5% 1 5.3% 10.0% At-the-market offering 9.7% increased Tier 1 4.8% 4.9% common by approximately $625 million Current capital ratios exceed end of period stress test requirements Stress test-related capital p
Slide 9: PNC's Framework for Success
PNC’s Framework for Success PNC Business Six months ended Key Metrics Target Action Plans Model June 30, 2009 Staying core Loan to Maximize credit portfolio value 87% 80%-90% funded deposit ratio Reposition deposit gathering strategies Focus “front door” on risk-adjusted Returning to a Provision to
Slide 10: Summary
Summary Leveraging PNC’s business model delivered solid results The National City integration is on track and the benefits are expected to exceed original estimates PNC is well-positioned to deliver greater shareholder value as the economy recovers PNC Continues to Build a Great Company. 10
Slide 11: 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 12: 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 13: 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 14: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Three months ended Six months ended March 31, 2009 June 30, 2009 June 30, 2009 in millions Total revenue $3,871 $3,987 $7,858 Noninterest expense 2,328 2,658 4,986 Pretax pre-provision earnings $1,543 $1,329 $2,872 PNC believes that pretax pre-provision earnin
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