Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Keefe, Bruyette & Woods Large Cap Bank Conference 2005
26 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Aug 8, 2005
Slide 1: Keefe, Bruyette & Woods Large Cap Bank Conference
EXHIBIT The Keefe, Kohler, August PNCBruyette 8, WIFinancial 2005 99.1 & Woods Services Large Group, CapInc. Bank Conference
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Forward-looking well www.sec.gov Future The This available forward-looking as presentation events those onStatement our factors and or corporate circumstances statements contains may on previously or statements Regarding also through website forward-looking include aremay disclosed necess
Slide 3: Financial Highlights
First Strong Riggs quarter Financial Six June Net EPS ROCE Noninterest Loans * Business Loans Months income (diluted) 30, Half successfully to client 16.7% primarily to 2005 deposits* Highlights 2005 deposits segment $636 Ended income activity $2.22 Highlights driven million converted 84% as to earn
Slide 4: Keys to Success
Keys A Diversified Strong Executable Invest Continue Generate Improve Make Solid to operating and risk Platform Success asset value-added togrow management Growth business grow yields efficiency national inlow-cost the Strategies mix loans Current fee-based adeposit core Environment competency franc
Slide 5: Capturing Growth Opportunities in Consolidated Net Interest Income
Capturing Growing $1,050 Consolidated (Taxable Net 2005 2004 2003 2002Interest interest $950 Equivalent Noninterest Revenue income Income $850 Noninterest Net Interest $750 Growth on Trends Basis) Income a$650 taxable-equivalent Income Improving Opportunities $550$ $450 millionsbasis $610is$590 reco
Slide 6: Fee-Based Businesses Differentiate PNC
Fee-Based Noninterest 80% BK BlackRock Information PNC 70%WB60% Businesses PFPC Income for USB 50% theBanking FITB three to 40% Differentiate Total months NCC 30% &Revenue Other 20% WFCended PNC 10% KEY 6/30/05; 0% STI BBT PNC amounts calculated in the Appendix Source: SNL DataSource
Slide 7: BlackRock Earnings Growth
BlackRock Earnings GAAP Twelve Six 1H05 1H04 * Assets 2002 6/30/05 12/31 Reflects Months 2003 Under Earnings Months $adjusted 2004 millions –Ended AManagement Growth Ended Adjusted $133 June earnings $155 December Engine 30Earnings* $$178 for billions 2004, $143 31 $200 $103 $500 1H04$150 $93 $400 a
Slide 8: PFPC Earnings and Serviced Assets Trends
PFPC Earnings % 41 Assets Jun Mar 2004 2005 15 Increase %30 31 $665 Increase –Serviced Sep Jun Strong $ $667 millions 30 $17 30 Dec Trends $17 $$721 billions 31 $30 $20$745 $25 $23 $800 $766 $20 $24$750 $15 $10 $700$5$650 $0 $600 $550 $500
Slide 9: Deepening Consumer Relationships in Regional Community Banking
Deepening Focused Regional 2.0 2002 C % 8 6/30/05 12/31 Small GR …Provides Home Growth* Consumer * A Growth 1.52003 Business equity 1.0 on Community isOn-line 0.5 2004 Our Opportunities Increasing for loans 0.0 Relationships six Consumer Banking Bill-Pay +19% months Banking andfor Deepening ended Us
Slide 10: Growing Deposit Base in Regional Community Banking
Growing Relationship Regional $11 $13 Average $5 $7 3.00% 4.00% 5.00% 2002 4Q 0.00% 1.00% 2003 1Q 2004 20052Q $9 2.00% 3QCertificates Federal aCommunity 4Q Valuable Strategy FundsCore ofGenerating Banking Deposit Rate Deposit Average $15 Deposit Base Certificates Demand GrowthDeposits of Deposit $ b
Slide 11: Differentiated Funding Sources: Noninterest-Bearing Deposits
Differentiated PNC’s Noninterest-Bearing 22% PNC Industry Rising Impact 0.50% 1Q 2004 2005 2Q20% Industry 0.40% Interest High 3Q ofreflects source: Noninterest-Bearing 18% 4Q %0.30% by Rates of 16% SNL average Lower 14% Funding Deposits 0.20% Increase DataSource Cost of 12% 460 0.10% Funding Value t
Slide 12: Improving Execution Driving Wholesale Banking Loan Growth
Improving PNC 2005 2004 2003 2002 Wholesale Execution Banking loans Driving outstanding LoansLoan $ billions exclude Growth $20 the $18 reclassification $16 $14 $12of$10 Market Street Funding purchased customer receivables and is reconciled to GAAP in the Appendix
Slide 13: Securities Portfolio Yields and Retained Flexibility
An Opportunity Retained Short Increasing Yield 2Q05 PNC BK STI WB USB FITB NCC KEY WFC BBT Source: 4.12 4.33 5.03 4.13 4.24 4.61 4.58 5.11 on portfolio 4.42 5.68 2Q04 SNL 3.32 Securities 3.62 Flexibility 4.61 4.04 % 4.27 4.42 4.88 Yields 4.17 5.54 Change 3.33 DataSource +80bp +71bp +42bp duration +9
Slide 14: The One PNC Initiative
The One Move Goals Expected Simplified Eliminate Achieve Generate Severance closer cost PNC approximately Results 3,000 and business to savings Initiative related customer positions structure of charges approximately $100 Become or 13% million of $85 of more total million in$300 efficient revenues p
Slide 15: Summary
Already Summary A Our solid businesses platform—built accomplished have executable aagreat diversified deal plans inrevenue 2005 to drivestream growthand fortress balance sheet
Slide 16: © PNC
© PNC
Slide 17: Appendix
Appendix
Slide 18: Cautionary Statement Regarding Forward-Looking Information
Cautionary We or “believe,” Forward-looking assume statements, In (accessible interest loan (e) balance from and impact •such changes the affecting addition our make uncertainties, regulators’ commitments impact introduction, matters recent net of rates, any sheet statements any in “expect,” interes
Slide 19: Cautionary Statement Regarding Forward-Looking Information
Cautionary customer credit how policies; the Our savings inaccurate accomplished Furthermore, successful In goals. acquisition integration regulated addition, impact ability impact, timing extent future we losses; and choose the acceptance financial of to and in results on of transactions extent Sta
Slide 20: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary pursuit reputational acquisitions, You performance Also, discussed Any earnings estimates) can annualized, risks offind estimates in attractive are and Statement harm more including in additional theirs uncertainties the proforma, to detail are reports acquisition alone, PNC Regarding cal
Slide 21: Non-GAAP Appendix: Business Earnings Reconcilement
Non-GAAP Business Appendix For $ June Banking Regional Wholesale PNC Asset BlackRock PFPC processing Minority Other Total millions the 30, Advisors banking asset business consolidated management (46) 47six 2005 businesses interest Earnings 33 Community 6Banking management businesses months 100 tobus
Slide 22: Non-GAAP Appendix: Net Interest Income Reconcilement
Non-GAAP Appendix $ 1Q03 1Q04 Taxable-equivalent Net millions Interest interest 2Q031Q02 2Q04 income, Income 3Q03 3Q04 to GAAP 2Q02 4Q03 4Q04 adjustment GAAP taxable-equivalent Reconcilement 3Q02 1Q05 basis 4Q02 2Q05 34 3$494 2$590 $503 46 2 7 3 6$481 $555 $521 basis 7 $491 $528 $487 $593 $503 $506
Slide 23: Non-GAAP Appendix: Noninterest Income to Total Revenue
Non-GAAP Appendix $ Three Noninterest BlackRock PFPC Banking Other 29.8% Total *Sum millions consolidated (21) Months of 219businesses net 15.0 (1.5) $271 Income to interest Ended GAAP 18.6% $925 456 to Consolidated income 6/30/05 Reconcilement Total $1,459 31.3Revenue* and63.4% noninterest Total Re
Slide 24: Non-GAAP Appendix: BlackRock Reconcilement
Non-GAAP BlackRock Appendix Management be will to 2004 1st As Revenues Compensation Expenses Long Other Total Operating Nonoperating Income Minority (a)Diluted Three June 2005 Add SSR Release Impact Net Diluted help met reported 2nd Income income, not back: acquisition 30, Quarter 2004 112,056 Term
Slide 25: Non-GAAP Appendix: Wholesale Banking Loans
Non-GAAP Wholesale Appendix Three 9/30/03 12/31/03 3/31/04 6/30/04 9/30/04 12/31/04 3/31/05 6/30/05 * Market Months $17,478 16,728 17,171 17,650 18,595 20,726 16,441 17,959 Street Banking to Ended GAAP 1,932 1,741 1,804 2,195 2,335 Funding $2,481 2,223 2,251 Loans Total 14,796 15,430 15,846 16,400 1
Slide 26: Peer Super-Regional Banks and Tickers
PeerPNC BB&T Ticker Appendix Fifth KeyCorp National The SunTrust U.S. Wachovia WellsBank Group Bancorp Third Fargo Corporation City Banks, KEY Financial of Corporation Bancorp of & New Corporation USB Super-Regional Company Inc. York Services BBT FITB STI WB Company, WFC NCC Group, Banks Inc. Inc. B
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