Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Corporate Update (February 2010)
25 slides from Pnc Financial Services Group, Inc. (the)'s corporate update, Feb 2, 2010
Slide 1: Planned TARP Preferred Redemption, Sale of PNC Global Investment Servicing and Equity Offering
Exhibit 99.2 The PNC Financial Services Group, Inc. Planned TARP Preferred Redemption, Sale of PNC Global Investment Servicing and Equity Offering February 2, 2010
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: Key Messages
Key Messages Planned redemption of $7.6 billion of PNC preferred stock held by the US Treasury - Will eliminate $380 million in annual preferred dividends Definitive agreement to sell PNC Global Investment Servicing (“GIS”) for $2.3 billion 1 - $1.6 billion increase to Tier 1 common capital upon clo
Slide 4: Equity Offering
Equity Offering Issuer The PNC Financial Services Group, Inc. Ticker/Exchange PNC/NYSE Offering size/over-allotment $3.0 billion / 15% Share composition 100% primary common equity Stock price (as of 2/1/2010) $55.86 Shares outstanding (pre-offer as of 1/31/2010) 461,416,582 Market cap (as of 2/1/201
Slide 5: Risk-Based Capital Ratios
Risk-Based Capital Ratios 1 1 $ in billions Tier 1 common Tier 1 risk based December 31, 2009 $13.8 $26.4 Ratios 6.0% 11.5% 2 TARP redemption (.3) (7.6) 2 Common equity offering 3.0 3.0 3 Net impact of sale of GIS 1.6 1.6 Proforma $18.1 $23.4 Proforma ratios 8.0% 10.3% Net cash outflow from the TARP
Slide 6: Relative Capital Positioning
Relative Capital Positioning December 31, 2009 Tier 1 common ratio 10.7% 8.8% 8.5% 8.0% 8.2% 7.5% 7.7% 7.8% 7.0% 7.2% 6.8% 6.5% 6.0% PNC WFC USB FITB RF KEY STI BAC PNC CMA BBT JPM COF (1) Estimated. See page 5 for further information. Peer source: company reports. 6
Slide 7: PNC's Powerful Franchise
PNC’s Powerful Franchise BlackRock (offices in 21 countries) 1 Dec. 31, 2009 U.S. Rank th Deposits $187 billion 5 th Assets $270 billion 8 CO KS th Branches 2,512 5 th OK ATMs 6,473 5 TX Retail Residential Mortgage Footprint covering nearly 1/3 of the One of the nation’s largest mortgage U.S. popula
Slide 8: PNC's Framework for Success
PNC’s Framework for Success 2 PNC Peers PNC Business Dec. 31, Key Metrics Target Action Plans Model Dec. 31, 2009 2009 Loan to Maximize credit portfolio value Staying core deposit ratio 84% 80%-90% Reposition deposit gathering 93% funded (as of) strategies Provision to Focus “front door” on risk- Re
Slide 9: 2009 Financial Highlights
2009 Financial Highlights Execution of the PNC business model delivered exceptional results Well-positioned balance sheet at year end with an improved risk profile, increased loan loss reserves, more liquidity and more capital Strong revenue performance of $17 billion from diversified sources Discip
Slide 10: A Higher Quality, Differentiated Balance Sheet
A Higher Quality, Differentiated Balance Sheet Category (billions) Dec. 31, 2009 Balance sheet positioning Investment securities $56 Core funded - loan to deposit ratio of 84% Loans 157 Appropriately reserved - loss coverage Other assets 57 1 ratio of 6.2% Total assets $270 Improved securities portf
Slide 11: Stronger Loss Coverage
Stronger Loss Coverage PNC loss coverage ¹ 2009 reserves / net charge-offs 2009 reserves / total loans including marks: PNC 1.9 X JPM 4.99% Total loans MTB 1.7 FITB 4.75% 6.2% BBT 1.5 COF 4.54% Commercial real estate 9.4% FITB 1.5 KEY 4.28% Commercial RF 1.4 BAC 3.94% 4.0% JPM 1.4 RF 3.38% Residenti
Slide 12: Pretax Pre-Provision Earnings Exceed Credit Costs Substantially
Pretax Pre-Provision Earnings ¹ Substantially Exceed Credit Costs PNC full year 2009 2009 pretax pre-provision earnings ¹ /provision MTB 1.86 X $17.0 Excluding GIS ² PNC Excluding the BLK/BGI gain 1.57x ³ 1.85 $16.2 WFC 1.83 JPM 1.50 USB 1.47 $9.7 $9.0 BBT 1.37 $7.3 $7.2 COF 1.32 $3.9 $3.9 FITB 1.22
Slide 13: Cost Saves – A Substantial Contributor to 2010
Cost Saves – A Substantial Contributor to 2010 PNC integration cost saves (millions) 2010 expectations 2 Net interest income and net interest $1,500 margin consistent with 3Q09 annualized $1,300+ Lower noninterest income due to 4Q09 annualized 2009 impact of MSR hedging gains >$1,200 Reduced expense
Slide 14: Summary
Summary The execution of the PNC business model resulted in exceptional 2009 performance Actions announced today are consistent with PNC’s disciplined use of capital - Redemption of TARP preferred will eliminate a degree of uncertainty for our shareholders, customers and employees - Issuance of comm
Slide 15: Appendix
Appendix
Slide 16: 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 17: 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 tu
Slide 18: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Our ability to achieve anticipated results from this transaction is dependent on the state going forward of the economic and financial markets, which have been under significant stress recently. Specifically, we may inc
Slide 19: Impact of Planned Sale of GIS
Impact of Planned Sale of GIS ¹ Appendix Estimated gain, cash proceeds and capital enhancement (billions) Book Cash Sales price $2.3 $2.3 Less: Book equity / intercompany debt (1.5) Adjustments / other ² (0.0) (0.2) Pretax gain 0.8 2.1 Taxes (0.3) (0.3) After tax gain / increase in cash 0.5 1.8 Elim
Slide 20: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix December 31, 2008 Income taxes For the three months ended, in millions Pretax (benefit) (a) Net income Reported net income (loss) ($246) National City conforming provision for credit losses $504 ($176) 328 Net income excluding National City conforming provisio
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Year ended Dec. 31, 2009 Three months ended Dec. 31, 2009 Reported Reported Gain on excluding Gain on excluding BlackRock/BGI BlackRock/BGI BlackRock/BGI BlackRock/BGI in millions Reported transaction gain Reported transaction gain Net interest income $9,054 $
Slide 22: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Three months ended Year ended March 31, 2009 June 30, 2009 Sept. 30, 2009 Dec. 31, 2009 Dec. 31, 2009 in millions Total revenue $3,871 $3,987 $4,048 $5,082 $16,988 Noninterest expense 2,328 2,658 2,379 2,369 9,734 Pretax pre-provision earnings $1,543 $1,329 $1
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix December 31, 2009 September 30, 2009 Adjustments, Income taxes Net Diluted Adjustments, Income taxes Net Diluted For the three months ended, in millions except per share data Pretax (benefit) (a) Income EPS Pretax (benefit) (a) Income EPS Net income, as report
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,
Slide 25: The PNC Financial Services Group, Inc.
The PNC Financial Services Group, Inc. PNC has filed a registration statement (including a prospectus) (File No. 333-164364) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents PNC has
PNC Financial Services Group — Corporate Update (February 2010) on 6ix