Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — BancAnalysts Association of Boston (November 2012)
24 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Nov 1, 2012
Slide 1: The PNC Financial Services Group, Inc. BancAnalysts Association of Boston
Exhibit 99.1 The PNC Financial Services Group, Inc. BancAnalysts Association of Boston November 1, 2012
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: Today's Discussion
Today’s Discussion Our business model has delivered shareholder value throughout the economic cycle Our strategies to drive future growth and improve returns in a challenging environment DRAFT 3
Slide 4: Our Successful Business Model
Our Successful Business Model Staying core funded and disciplined in our deposit pricing Maintaining a moderate risk philosophy Leveraging customer relationships and our strong brand to grow high quality, diverse revenue streams Focusing on positive operating leverage while investing in innovation R
Slide 5: Value Creation Throughout the Changing Environment
Value Creation Throughout the Changing Environment Financial crisis “New normal” 1 1 % change in TBV/Share 12/31/2007 to 12/31/2009 % change in TBV/Share 12/31/2009 to 12/31/2011 Peer Source: SNL DataSource. (1) Tangible book value per share calculated as book value per share less goodwill and certa
Slide 6: Growing Customers Creates Revenue Potential
Growing Customers Creates Revenue Potential (1) Net organic checking relationship growth refers to new consumer and small business accounts exclusive of accounts acquired through acquisition. DRAFT (2) A Corporate Banking primary client is defined as a corporate banking relationship with annual reve
Slide 7: Our Sales Momentum is Strong
Our Sales Momentum is Strong AMG refers to Asset Management Group. (1) 2012 sales through September 30, 2012 annualized. DRAFT 7
Slide 8: Strong Commercial Loan Growth; More Favorable Deposit Mix
Strong Commercial Loan Growth; More Favorable Deposit Mix % change from: Highlights Category (billions) Sep. 30, Jun. 30, Sep. 30, 2012 2012 2011 Commercial and Commercial Commercial 79.7 1% 28% Real Estate loans primary Commercial real estate 18.6 1% 13% drivers of interest earning 1 Total commerci
Slide 9: Loan Growth has Delivered Net Interest Income Growth
Loan Growth has Delivered Net Interest Income Growth Five quarter trend Highlights Increase in interest earning assets driven by Southeast expansion and organic loan growth Core NII growth driven by Southeast expansion, organic loan growth and lower funding costs Recently stable PAA declined in 3Q12
Slide 10: Revenue Potential Should Exceed Decline in Purchase Accounting Accretion
Revenue Potential Should Exceed Decline in Purchase 1 Accounting Accretion 2013 highlights Purchase accounting accretion decline Total revenue in 2013 expected to increase when compared to 2012 2 Core NII and noninterest income growth expected to exceed the purchase accounting accretion decline of a
Slide 11: Fee Income Should Become a Higher Percentage of Total Revenue
Fee Income Should Become a Higher Percentage of 1 Total Revenue Strategies to drive higher fee income 3Q12 noninterest income mix across our franchise Retail Banking Grow consumer and small business checking relationships Broaden sources of revenue Invest and grow mass affluent segment Corporate & I
Slide 12: Focused on Creating Positive Operating Leverage
Focused on Creating Positive Operating Leverage 1 3Q12 efficiency ratio Highlights Investing for future growth Midwest and Southeast – Sales teams already in place to grow revenues similar to legacy PNC markets Product and Technology investments – Investing and Retirement – PNC Wealth Insight® – Vir
Slide 13: Effectively Managing Credit Risk
Effectively Managing Credit Risk 3Q12 net charge-offs to average loans 3Q12 loan loss reserves¹ to total loans Reflects company data for 3Q12 as of quarter-end except net charge-offs, which are for the quarter and annualized, and average loans, which are for the DRAFT quarter. Peer source: SNL datab
Slide 14: We Are Focused On Improving Our Performance
We Are Focused On Improving Our Performance 1 3Q12 return on average assets 3Q12 return on average tangible common equity Peer Source: SNL database. STI 3Q12 return on average assets not meaningful for the peer comparison as it includes their net gain from sale of Coca Cola DRAFT shares. Return on a
Slide 15: Strong Capital Position
Strong Capital Position 3Q12 highlights 1 Basel I Tier 1 common ratio of 9.5% Basel III Tier 1 common ratio goal is 8.0-8.5% by year-end 2013 without 2 benefit of phase-ins Capital priorities: – Build capital to support client growth and business investment – Improve the quality of capital – Maintai
Slide 16: Actions to Improve Performance
Actions to Improve Performance Continue to add customers and loans that meet our risk return criteria Focus on cross-selling opportunities to existing customers to grow fee income Aggressively attack expenses to improve efficiency Manage credit risk and add capital Continue to execute on our strateg
Slide 17: 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 18: 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, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportu
Slide 19: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •In addition to the RBC Bank (USA) transaction, we grow our business in part by acquiring from time to time other financial services companies, financial services assets and related deposits and other liabilities. These
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of In millions except per share data Dec. 31, 2007 Dec. 31, 2009 % Change Common shareholders' equity $14,847 $22,011 Common shares outstanding 341 462 Book value per common share $43.60 $47.68 Goodwill and other intangible assets other than servicing right
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended $ in millions Sept. 30, 2012 Jun. 30, 2012 Mar. 31, 2012 Dec. 31, 2011 Sep. 30, 2011 Net interest margin, as reported 3.82% 4.08% 3.90% 3.86% 3.89% Purchase accounting accretion (1) $245 $343 $263 $256 $291 Purchase accounting accret
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of In millions Sep. 30, 2012 Allowance for loan and lease losses $4,039 Remaining mark on purchased impaired loans $1,164 Allowance for loan and lease losses, adjusted to include remaining mark $5,203 Loans, as reported $181,864 Loans, adjusted to include r
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix As of or for the three months ended In millions Sep. 30, 2012 Average common shareholders' equity $34,323 Average goodwill and other intangible assets other than servicing rights 9,956 Average tangible common equity $24,367 Net income attributable to common sh
Slide 24: 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 — BancAnalysts Association of Boston (November 2012) on 6ix