Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2009 Earnings Presentation
18 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 23, 2009
Slide 1: The PNC Financial Services Group, Inc. First Quarter 2009 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. First Quarter 2009 Earnings Conference Call April 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
Key Take-Aways Posted strong 1Q09 results Businesses performed well in light of economic conditions Strengthened capital and liquidity, increased loan loss reserves Benefits of National City acquisition exceeding original expectations Despite the Environment, PNC Remains Focused on Delivering Long-T
Slide 4: Significant Integration Progress in 90 Days
Significant Integration Progress in 90 Days Focus on the firm A powerful franchise with experienced leadership in place Conducted comprehensive market visits and town hall meetings Focus on clients Kicked-off new marketing campaign – Two of America’s best-known banks. Now simply one of America’s bes
Slide 5: 1Q09 Performance Overview
1Q09 Performance Overview 1Q09 4Q08 3Q08 Net income (loss), millions $530 $(246) $259 Diluted earnings per common share $1.03 $(.77) $.71 Earnings highlights Strong revenue performance driven by net interest income and diversified fee income Expenses remained well-controlled Pretax pre-provision ear
Slide 6: Revenue Diversification
Revenue Diversification Revenue categories in millions Fund servicing $199 5% Asset management 1Q09 revenue performance $189 5% Consumer services Strong net interest income 8% $316 Net interest Net interest margin of 3.81% income 1Q09 $2,305 total Residential Significant residential revenue 11% mort
Slide 7: Creating Positive Operating Leverage
Creating Positive Operating Leverage 2004-2008 CAGR $7.2 $3.87 Revenue +7% $5.5 $4.4 $2.33 Expense $3.7 +5% $2.8 $1.54 $1.8 $.88 Operating Leverage +2% 2004 2008 1Q09 Revenue Expense Revenue Expense Pretax pre-provision earnings ¹ Pretax pre-provision earnings ¹ Provision Creating Positive Operating
Slide 8: Balance Sheet Composition
Balance Sheet Composition March 31, % of Dec 31, billions 2009 total 2008 Cash and short-term investments $7 3% 3% Interest-earning deposits with banks 15 5 5 Loans held for sale ¹ 4 1 2 Investment securities 46 16 15 Loans ¹ 171 60 60 Other assets and loan and lease loss allowance 43 15 15 Total as
Slide 9: Investment Securities
Investment Securities Net unrealized March 31, 2009, billions Fair value % of total gain/(loss) US Treasury and government agencies $2.6 6% $- Agency residential mortgage-backed 23.4 50 .6 Non-agency residential mortgage-backed 9.3 20 (3.6) Commercial mortgage-backed 5.5 12 (.8) Asset-backed 3.1 7 (
Slide 10: Credit Metrics
Credit Metrics 2009 2008 Asset quality ratios ¹, % March 31 Dec 31 Sept 30 June 30 March 31 Net charge-offs to average loans 1.01 1.09 .66 .62 .57 Provision to average loans 2.03 5.25 1.04 1.02 .87 Nonperforming loans to total loans 1.73 .95 1.12 .95 .81 Nonperforming assets to total assets 1.21 .74
Slide 11: Capital and Liquidity
Capital and Liquidity ¹ March 31 Dec 31 Sept 30 Key Capital Ratios 2009 2008 2008 Tier 1 risk-based 10.2% 9.7% 8.2% 2 Tangible common equity 3.3% 2.9% 3.6% Tangible common equity excluding accumulated 2,3 4.4% 4.3% 5.1% other comprehensive loss Key Liquidity Ratios Loans to deposits 88% 91% 88% Inve
Slide 12: Summary
Summary A relentless focus on implementing the PNC model Returning to an overall moderate risk profile Leveraging the brand to grow high quality revenue streams A focus on continuous improvement while investing in innovation Disciplined approach to capital management Strong execution capabilities PN
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 or our financial condition or results of operations or our competitive position or reputation. Reputational impacts, in tu
Slide 15: 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 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix In millions, except percentages Tangible common equity ratio (a, b) March 31 December 31 September 30 2009 2008 2008 Common shareholders' equity $18,546 $17,490 $13,712 Add back: accumulated other comprehensive loss (AOCL) 3,289 3,949 2,230 Common shareholders
Slide 17: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended Dec 31 Mar 31 2008 2009 Change in millions Total revenue $1,676 $3,871 Noninterest expense 1,129 2,328 Pretax pre-provision earnings $547 $1,543 $996 17
Slide 18: 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,
PNC Financial Services Group — Q1 2009 Earnings Presentation on 6ix