15 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 19, 2007
Slide 1: Second Quarter 2007 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Second Quarter 2007 Earnings Conference Call July 19, 2007
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 Second Quarter Highlights
2007 Second Quarter Highlights Executing on Our Strategies Primary businesses met or exceeded expectations Reported earnings of $1.22 per diluted share First half 2007 earnings up 20% versus first half 2006 Asset quality remained excellent Mercantile integration on track
Slide 4: Performance Summary
Performance Summary Key Take-Aways Adjusted earnings* of $1.25 per diluted share Strong core performance by primary businesses partially offset by weak private equity and trading; cross-border lease impact Continued to create positive operating leverage Well positioned from a risk perspective Contin
Slide 5: Growing Higher Quality Revenue Streams
Growing Higher Quality Revenue Streams Revenue Mix Six months ended June 30, As Adjusted* % Change vs 2006** 2007 2006 Noninterest Income $1.9 Billion 10% Noninterest Income 58% $1.75 Billion 61% Deposit NII 30% Deposit NII $849 Million $653 Million 26% 23% 13% Loan NII Loan NII $465 Million $526 Mi
Slide 6: Creating Positive Operating Leverage
Creating Positive Operating Leverage Growing Revenues Faster Than Expenses $ billions Trend Continues* Compound Annual Six months ended June 30, as adjusted $7 Growth Rate (2004 – 2006) 2007 vs 2006 $6 Revenue Revenue +15% 9% $5 $4 Expense Expense +12% $3 7% $1.5 $2 $1.2 $1.3 $1 Net Income Net Incom
Slide 7: Maintaining Moderate Risk Profile
Maintaining Moderate Risk Profile Credit Risk Profile - Excellent credit quality - Credit decisions driven by risk-adjusted returns - Minimal sub-prime exposure Interest Rate Risk - Total return philosophy - Sophisticated risk management skills - Well-positioned balance sheet
Slide 8: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information 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-looking stat
Slide 9: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) • The adequacy of our intellectual property protection, and the extent of any costs associated with obtaining rights in intellectual property claimed by others, can impact our business and operating results. • Our business and op
Slide 10: Additional Information About The PNC/Sterling Financial Corporation Transaction
Additional Information About The PNC/Sterling Financial Corporation Transaction The PNC Financial Services Group, Inc. and Sterling Financial Corporation will be filing a proxy statement/prospectus and other relevant documents concerning the merger with the United States Securities and Exchange Comm
Slide 11: Additional Information About The PNC/Yardville National Bancorp Transaction
Additional Information About The PNC/Yardville National Bancorp Transaction The PNC Financial Services Group, Inc. (“PNC”) and Yardville National Bancorp (“Yardville”) have filed with the United States Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that includes
Slide 12: Non-GAAP to GAAP Reconcilement Appendix
Non-GAAP to GAAP Reconcilement Appendix June 30, 2007 March 31, 2007 June 30, 2006 THREE MONTHS ENDED Pretax Net Diluted Pretax Net Diluted Pretax Net Diluted Jn millions, except per share data. Adjustments. Tul fia) Adjustments Income. EPS Impact Adjustments __Income__ EPS _Impact Net income, as re
Slide 13: Non-GAAP to GAAP Reconcilement Appendix
Non-GAAP to GAAP Reconcilement Appendix State For the Six Months Ended Jun SIX MONTHS ENDED June 30, 2007 June 30, 2006 Jamillions As Reported Adjustments As Adjusted (a) “AS Reported Adjustments “As Adjusted (o) Net interest income $1,361 $1,361 $1,112 $7) $1,105 Taxable-equivalent adjustment 14 14
Slide 14: Non-GAAP to GAAP Reconcilement Appendix
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summa 2004 to 200 BlackRock For the year ended December 31, 2006 PNC Deconsolidation and BlackRock PNC In millions As Reported Adjustments (a) Other Adjustments Equity Method As Adjusted Net interest income $2,245 $(10) $2,235 Provision for cr
Slide 15: Non-GAAP to GAAP Reconcilement Appendix
Non-GAAP to GAAP Reconcilement Appendix Income Statement Summary – 2004 to 2006 (continued) For the year ended December 31, 2004 BlackRock PNC Deconsolidation and BlackRock PNC In millions As Reported Other Adjustments Equity Method As Adjusted Net interest income $1,969 $(14) $1,955 Provision for c