Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Merger or Acquisition (November 2020)
19 slides from Pnc Financial Services Group, Inc. (the)'s merger presentation, Nov 16, 2020
Slide 1: PNC Announces Agreement to Buy BBVA USA Bancshares, Inc.
Exhibit 99.2 PNC Announces Agreement to Buy BBVA USA Bancshares, Inc. Accelerating PNC’s National Expansion Strategy Investor Presentation November 16, 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 This presentation contains forward-looking statements regarding our outlook or expectations with respect to the planned acquisition of BBVA USA Bancshares, Inc., the combination of BBVA USA Bancshares, Inc. into PNC an
Slide 3: Strategic Rationale
Strategic Rationale . Substantially enhances PNC’s scale, distribution and reach . Complementary acquisition accelerates PNC’s national strategy, creating franchise with coast-to-coast branch presence . Financially compelling with significant synergies . Attractive and opportunistic redeployment of
Slide 4: BBVA USA: A Premier Sunbelt Franchise
BBVA USA: A Premier Sunbelt Franchise Projected Population Growth Attractive Balance Sheet Profile . Top 40 U.S. commercial bank with complementary local market coverage 5.3% Loans – Assets of $104 billion 2021 - 2026 as of 9/30/20 Consumer – 637 branches 15% Commercial 6 of top 10 & Industrial . #4
Slide 5: Substantially Enhances Scale, Distribution and Reach
Substantially Enhances Scale, Distribution and Reach Combined Presence in 29 of the Top 30 U.S. MSAs Accelerating Expansion in Fast Growing Sunbelt Markets Rank MSA PNC BBVA USA 1 New York, NY 2 Los Angeles, CA 3 Chicago, IL 4 Dallas, TX 5 Houston, TX 6 Washington, DC 7 Miami,
Slide 6: Delivering Best-In-Class Product Offering in More Markets
Delivering Best-In-Class Product Offering in More Markets Broad Set of Products and Services Organized Around the Client C&IB Presence in the Top 30 Largest MSAs Treasury Management Capital Markets 29 #4 Provider by TM Revenue Top-4 Middle Market Loan Syndicator . Receivables . Securitization 7 . Di
Slide 7: Committed to our Employees, Customers and Communities
Committed to our Employees, Customers and Communities A Commitment to all PNC and BBVA USA Constituents Our philosophy, as a Main Street bank, is that our prosperity will be proportional to the prosperity we help to create for our customers, communities where we operate and our employees. – Bill Dem
Slide 8: Creates Top U.S. Bank with Coast-to-Coast Franchise
Creates Top 5 U.S. Bank with Coast-to-Coast Franchise PNC BBVA USA Strong Pro Forma Capital and Returns ($ billions) as of 9/30/20 as of 9/30/20 PNC Pro Forma Common Equity Assets $461.8 $102.4 $564.2 #5 U.S. Bank Tier 1 Ratio 9.4% 9.3% 2022E Loans $249.3 $66.2 $315.5 #5 U.S. Bank Return on Tangible
Slide 9: Financially Compelling Transaction
Financially Compelling Transaction Transaction Summary Low Entry Point with Solid Upside for Shareholders KBW Bank Index P / TBV Transaction total value $11.567 billion, all cash 2.75x KBW Performance Pre-COVID BKX P / TBV Price to tangible book 1.34x % of Days Trading < 1.34x 5.1% 2.50x 10-Year Med
Slide 10: Effectively Deploying BLK Proceeds to Accelerate Growth
Effectively Deploying BLK Proceeds to Accelerate Growth Transaction Expected to Replace BLK Earnings Contribution . PNC’s stake in BlackRock was a highly concentrated passive investment in the world’s leading asset manager, with complex regulatory and capital treatment . The acquisition of BBVA USA
Slide 11: Demonstrated Success with Prior Acquisitions
Demonstrated Success with Prior Acquisitions Many Similarities to Past Transactions Experience Integrating Large Franchises Date 2008 2012 2021 Seller Domestic Bank Foreign Bank Parent Foreign Bank Parent Geographic Expansion Midwest Southeast Sunbelt 1,434 in 9 states 424 in 6 states 637 in 7 state
Slide 12: Proven Ability to Grow Acquired Franchises
Proven Ability to Grow Acquired Franchises Transformational Acquisitions Execution and Organic Growth $564 De-risking acquired businesses by exiting asset Leverage Strength of Combined Franchise to classes that didn't meet risk / return profile Deliver Consistent Growth and Efficiency Total Assets $
Slide 13: Thorough Due Diligence to Ensure Successful Integration
Thorough Due Diligence to Ensure Successful Integration Experienced Management Team Driving Extensive Due Diligence Process Comprehensive Diligence Process Integration Plan . Management led review of all functional areas . Leverage the same playbook as we used for RBC including Credit, Business Line
Slide 14: Summary: Value Added Acquisition Positions PNC Well for the Future
Summary Value Added Acquisition Positions PNC Well for the Future . Substantially enhances PNC’s scale, distribution and reach . Complementary acquisition accelerates PNC’s national strategy, creating franchise with coast-to-coast branch presence . Financially compelling with significant synergies .
Slide 15: 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 16: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information − Despite the improvement in the economy in recent months, economic activity remains far below its pre-pandemic level and unemployment remains elevated. Real GDP growth in the third quarter was extremely strong, at an annual rate o
Slide 17: Appendix: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information . We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those assoc
Slide 18: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (Non-GAAP) $ millions, except per share data Impact from Sept. 30, 2020 Sept. 30, 2020 Gain on BLK Sale (ex. BLK Impact) Book value per common share $117.44 $10.19 $107.25 Tangible book value per common share Common share
Slide 19: Appendix: Awards and Recognition
Appendix: Awards and Recognition PNC has been recognized nationally and regionally for our accomplishments and success as a diversified financial services firm that reflects the needs, values and aspirations of our customers, employees, communities and shareholders. Employer of Choice Diversity & In
PNC Financial Services Group — Merger or Acquisition (November 2020) on 6ix