Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2020 Earnings Presentation
19 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 15, 2020
Slide 1: First Quarter 2020 Earnings Conference Call
Exhibit 99.2 First Quarter 2020 Earnings Conference Call April 15, 2020 The PNC Financial Services Group
Slide 2: Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and Non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our corpora
Slide 3: PNC's Priority: Supporting Clients, Employees, Communities
PNC’s Priority: Supporting Clients, Employees, Communities . Paycheck Protection Program: Helping thousands of business customers apply for Clients emergency relief loans Supporting the . Continuing to provide liquidity to corporate clients Needs of our . Grace periods for mortgage payments and cons
Slide 4: First Quarter 2020 Highlights
First Quarter 2020 Highlights Net Income . Entered a challenging environment with $915 million strong capital and liquidity Diluted Earnings Per Share . Supporting customers, communities, employees $1.95 . Good quarter with solid financial results Average Loan Growth despite the declining economic c
Slide 5: Balance Sheet: Grew While Supporting Our Customers
Balance Sheet: Grew While Supporting Our Customers Change vs. Spot balances, $ billions 3/31/20 12/31/19 3/31/19 Highlights . Reflects higher utilization of commitments near quarter Commercial lending $184.7 $24.1 $26.3 end driven by the economic impact of COVID-19 on customer liquidity needs Consum
Slide 6: Balance Sheet: Strong Liquidity Position
Balance Sheet: Strong Liquidity Position Commercial Lending Exposure 6% Increase in Utilization Well Positioned to Support Liquidity Needs $300.7 $292.4 Liquidity Sources (3/31/20) Amount ($bn) Fed Reserves $ 19.6 Unpledged Investment Securities $ 68.1 FHLB Borrowing Capacity $ 31.2 $116.0 Current F
Slide 7: Balance Sheet: Providing Relief to Customers
Balance Sheet: Providing Relief to Customers Paycheck Protection Loan Modifications Additional Customer Program (PPP) to Borrowers Relief Programs . Began receiving PPP . Granting extensions, . Providing personal applications on 4/3/20 deferrals, and emergency loans of up . Currently funding loans f
Slide 8: Income Statement: Strong Growth in Pre-Provision Earnings
Income Statement: Strong Growth in Pre-Provision Earnings Change vs. $ millions 1Q20 4Q19 1Q19 Highlights . LQ and YoY growth of 1% primarily due to lower deposit and Net interest income $2,511 $23 $36 borrowing rates and higher interest earning asset balances partially offset by lower loan and othe
Slide 9: Credit Quality: COVID-19 High Impact Industries
Credit Quality: COVID-19 High Impact Industries $19.3 billion Outstanding Loan Balances $10.6 billion Commercial & Equipment Lease Financing Loans $4.4 billion / 1.6% of Loans Leisure Recreation: Restaurants, casinos, hotels, convention centers 73% Utilization $2.5 billion / 0.9% of Loans Retail (no
Slide 10: Credit Quality: Oil & Gas Loans
Credit Quality: Oil & Gas Loans $4.6 billion Outstanding Loan Balance Total Loans As of 3/31/20 $1.2 billion Exploration & Production (0.4% of Loans) $ billions Utilization Rate 32% Oil / Gas Mix 51% / 49% 1.7% Reserve-Based Structure 72% $264.6 billion $2.2 billion Midstream and Downstream (0.8% of
Slide 11: Credit: Entering Challenging Environment With Strong Metrics
Credit: Entering Challenging Environment With Strong Metrics Net Loan Charge-Offs 1.00% Provision CECL Implementation in 1Q20 0.80% $209 $212 $914 0.60% $155 $136 $142 0.40% 0.35% 0.35% 0.26% Incurred Loss Method CECL 0.24% 0.24% 0.20% $ millions $ millions $221 $189 $180 $183 0.00% 1Q19 2Q19 3Q19 4
Slide 12: Credit: Drivers of Change Under CECL
Credit: Drivers of Change Under CECL Allowance for Credit Losses – Loans and Leases and Off-Balance Sheet Credit Exposures Economic Factors Portfolio $496 Day 1 Changes Adjustment $196 . Changes to macro- . New loans economic $642 . Changes in variables credit quality . Changes to . Aging of weighti
Slide 13: Outlook: Second Quarter 2020 and Full Year 2020 Guidance
Outlook: Second Quarter 2020 and Full Year 2020 Guidance Second Quarter 2020 Full Year 2020 Balance Average loans Up high-single digits Sheet Revenue Down 5 – 10% Net interest income Stable Income Noninterest income Down approx. 15 – 20% Statement Noninterest expense Flat to down Down 5 – 10% Net lo
Slide 14: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information 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 inform
Slide 15: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and
Slide 16: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information − Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. These matters may result in monetary judgments or settlements or other remedies, including fines
Slide 17: Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity (Non-GAAP) For the three months ended Mar. 31, Dec. 31, Mar. 31, $ millions 2020 2019 2019 Return on average common shareholders' equity 7.51% 11.54% 11.13% Average common shareholders' equity $45,058 $45,063 $43,624 Average
Slide 18: Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (Non-GAAP) % Change 3/31/20 3/31/20 $ millions, except per share data Mar. 31, Dec. 31, Mar. 31, vs. vs. 2020 2019 2019 12/31/19 3/31/19 Book value per common share $106.70 $104.59 $98.47 2% 8% Tangible book value per com
Slide 19: Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (Non-GAAP) For the three months ended % Change Mar. 31, Dec. 31, Mar. 31, 1Q20 1Q20 $ millions 2020 2019 2019 vs. 4Q19 vs. 1Q19 Net interest income $2,511 $2,488 $2,475 1% 1% Noninterest income 2,006 2,121 1,811 (5%) 11% Total
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