Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q4 2007 Earnings Presentation
16 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 17, 2008
Slide 1: The PNC Financial Services Group, Inc. Fourth Quarter 2007 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Fourth Quarter 2007 Earnings Conference Call January 17, 2008
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information This presentation contains forward-looking statements regarding our outlook or expectations relating to PNC’s future business, operations, financial condition, financial performance and asset quality. Forward-looking
Slide 3: 2007 Performance Leaves PNC Well-Positioned for the Future
2007 Performance Leaves PNC Well-Positioned for the Future Execution Results in a Good Year Despite a Difficult Environment Strong organic client growth Expenses well-contained Solid business segment results in an uncertain time Asset quality migrating, as expected, and at a manageable pace Well-pos
Slide 4: Executing on Our Strategy Delivers Differentiated Results
Executing on Our Strategy Delivers Differentiated Results Key Take-Aways 4Q07 2007 Reported diluted EPS $0.52 $4.35 Adjusted diluted EPS¹ $1.07 $5.05 Delivered solid results with diverse revenue streams in a period of extreme market volatility Continued to create positive operating leverage on a ful
Slide 5: Growing High Quality, Diverse Revenue Streams
Growing High Quality, Diverse Revenue Streams Adjusted Revenue Mix for the Year Ended 1,2 $7 2007 Mix 1,3 2007 vs 2006 $6 2006 Mix $5 Noninterest Income +10% Noninterest 57% $4 Income 62% $3 $2 Deposit NII +34% Deposit NII 27% 23% $1 Loan NII Loan NII 16% +25% 15% $0 Total Revenue Growth +18% (1) Ad
Slide 6: Creating Positive Operating Leverage
Creating Positive Operating Leverage Growing Revenues Faster Than Expenses Compound Annual Growth 2006-2007 $7 (2004-2006, as adjusted) 1,3 As adjusted 2,3 $6 Revenue Revenue +9% +18% $5 $4 Expense Expense +7% +15% $3 Operating Operating $1.7 Leverage Leverage $2 $1.2 $1.3 $1.5 +2% +3% $1 Net Income
Slide 7: Maintaining a Moderate Risk Profile
Maintaining a Moderate Risk Profile Asset Quality Interest Rate Risk Capital Management Credit decisions driven by Active balance sheet Shift to Tier 1 capital risk-adjusted returns management style benchmark Minimal exposure to Duration of equity of 2.1 Earnings growth creates subprime mortgages, h
Slide 8: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-loo
Slide 9: 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 10: Additional Information About The PNC/Sterling Financial Corporation Transaction
Additional Information About The PNC/Sterling Financial Corporation Transaction Appendix The PNC Financial Services Group, Inc. and Sterling Financial Corporation (“Sterling”) will be filing a proxy statement/prospectus and other relevant documents concerning the merger with the United States Securi
Slide 11: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Earnings Summary THREE MONTHS ENDED December 31, 2007 September 30, 2007 December 31, 2006 In millions, except per share data Adjustments, Net Diluted Adjustments, Net Diluted Adjustments, Net Diluted Pretax Income EPS Pretax Income EPS Pretax Income EPS Net i
Slide 12: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – For the year ended Year ended December 31, 2007 December 31, 2006 In millions As Reported Adjustments As Adjusted (a) As Reported Adjustments As Adjusted (b) Net interest income $2,915 $2,915 $2,245 ($10) $2,235 % Change As % Change
Slide 13: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – For the three months ended For the three months ended December 31, 2007 PNC PNC % Change vs. Sept 30, 2007 In millions As Reported Adjustments (a) As Adjusted Reported Adjusted Net interest income $793 $793 Loan net interest income 3
Slide 14: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – 2004 to 2007 For the year ended December 31, 2007 PNC PNC In millions As Reported Adjustments (a) As Adjusted Net interest income $2,915 $2,915 Provision for credit losses 315 $(45) 270 Noninterest income 3,790 131 3,921 Noninterest
Slide 15: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – 2004 to 2007 (continued) For the year ended December 31, 2005 BlackRock PNC Deconsolidation and BlackRock PNC In millions As Reported Other Adjustments Equity Method As Adjusted Net interest income $2,154 $(12) $2,142 Provision for c
Slide 16: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – 2004 to 2007 (continued) For the year ended December 31, as adjusted % Change In millions 2004 2005 2006 2007 2004-2006 CAGR 2006-2007 Adjusted net interest income $1,955 $2,142 $2,235 $2,915 Adjusted noninterest income 2,928 3,122 3
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