24 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jul 15, 2016
Slide 1: Second Quarter 2016 Earnings Conference Call
Exhibit 99.2 Second Quarter 2016 Earnings Conference Call July 15, 2016 The PNC Financial Services Group © PNC
Slide 2: Cautionary Statement Regarding Forward-Looking and Adjusted Information
Cautionary Statement Regarding Forward-Looking and ®@PNc Adjusted 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 its corporate w
Slide 3: Second Quarter 2016 Highlights
Second Quarter 2016 Highlights ive to execute on our strategic priorities to better serve our custom Delivered quality results = Solid revenue growth driven by fee income — Disciplined expense management — Stable credit quality = Grew average loans and deposits Maintained strong capital position whi
Slide 4: Balance Sheet: Grew Loans and Deposits
Balance Sheet : Grew Loans and Deposits @PNc Change vs. Average balances, §bllions 2016 101s 2015 2016 Highlights Commercial lending $136.2 $17 $5.4 Primarily driven by large corporate and CRE iieciee tah d educati Consumer tending offset by growth in auto and credit card loans Total loans Investmen
Slide 5: Balance Sheet: Substantial Capital Returned to Shareholders
Balance Sheet: Substantial Capital Returned to Shareholders $ millions Shareholder Return $850 bl $764 2Q15 3Q15 4Q15 1016 2Q16 ™ Common Dividends ($)_™ Program Shares Repurchased ($) @PNC Highlights During 2Q16 PNC repurchased 6.1 million common shares for $526 million and paid dividends on common
Slide 6: Income Statement: Strong Fee Income; Well-Controlled Expenses
Income Statement: Strong Fee Income; Well-Controlled Expenses (PNC Change vs. $ millions 2016 1a16 2015 2016 Net interest income $2,068 ($20) $16) CON finan Se ane nea raaheotiss Fee Income $1,462 $201 $23 pote bee income growth oo Other Income $266 (G42) itt) 7 $BEnetVisagains : Noninterest income
Slide 7: Income Statement: PAA and Rate Environment Impact NII and NIM
Income Statement: PAA and Rate Environment Impact NIland NIM @PNC $ millions Net Interest Income 2015 3Q15 4Q15 mmmPAA = mmm Core Nil fe Nil -See Reconciliation in Appendix. 1016 —NIM 2016 Highlights Net interest income down from 1016, driven primarily by lower PAA Core Nil relatively stable with 1Q
Slide 8: Income Statement: Strong Fee Income Growth
t: Strong Fee Income Growth Noninterest Income Grew 10% LQ $ million: $1,713 . Corporate 51.439 FM cs a09 mM 91.425 $1,462 Asset Management 377 +11% LO 9% YOY Refers to a comparison of second quarter 2016 with first quarter 2016 jarter 2016 with second quarter 20) Lo YOY ~ Refers to a comparison of
Slide 9: Income Statement: Disciplined Expense Management
Income Statement: Disciplined Expense Management ®@PNc $ billions Noninterest Expense E. ble while continuing to i in gy 2.4 $2.4 $2.4 $: $23 $24 2Q15 3Q15 4Q15 1Q16 2016 Highlights Noninterest expense increased 3% from 1Q16 — Higher variable compensation costs related to higher business activity —
Slide 10: Credit Quality: Stable Credit Quality
Credit Quality: Stable Credit Quality Nonperforming Loans $2,281 $2252 $2177 $7.12 2Q15 3Q15 4Q15 1Q16 Oil, Gas & Coal @PNC $2,266 $1971 2Q16 Provision millions $ millions 2Q15 3Q15 4Q15 1016 2Q16 Oil, Gas & Coal Net Charge-Offs $149 $134 $120 59% $67 o aie $126 : ce $7 $87 2015 3Q15 4Q15 1016 2Q16
Slide 11: Credit Quality: Energy Related Loans - Less than 2% of Total Loans
Credit Quality: Energy Related Loans - Less than 2% of Total Loans & PNC Total Loans $ billions Outstanding Balances 6 Oil & Gas Loans billions Coal Loans @ Outstanding Balances of 6/30/16 Oil & Gas Loans 2016 1016 Reserves 6% 5% bs of outstanding 42% 38% loans criticized Utilization 33% 34% Total e
Slide 12: Outlook: Third Quarter 2016
Outlook: Third Quarter 2016 ®@PNc Balance Sheet Loans Up modestly from 2Q16 Net interest income Stable with 2Q16 Fee income Stable with 2Q16 Income ptatement Noninterest expense Stable with 2Q16 Loan loss provision $100 - $150 million ~ Reler to Cautionary Statement in the Appendix, including econom
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®@PNc Information “snapshot” i y i ht i outlook for pens nl set levels, asset quality, financi affecting ” “plan,” “expect,” “anticipate,” “see,” “look,” “intend,” “outlook,” “project,” “forecast,” “estimate,” “goal,” “will,” “should” and othe
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ®@PNc Information * Our k d- i 2016, is Ties leraant so do not, unless PNC's stock under current pr or issue ‘other . things, ni ; banking ‘sheet. In addition, * it ic models. Tiguidiy, funding Id includ pension, bankrupt (the “Dodd-Frank Act’
Slide 15: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking Information @PNc governmental agencies. adequacy of our s, including, where appropriat derivatives In particular, our . Ine. i by BlackRock SEC filings. grow ou! and other ar Las risk: acquired businesses into PNC after closing. market share d
Slide 16: Net Visa Gains
Net Visa Gains For the three months ended Jun.30, Mar.31, Dec.31, Sep.30, Jun. 30, $ in mitions 2016 2016 2015 2015 2015 Gains on Visa Sales 82 44 47 43 79 Derivative Fair Value Adjustments ($51) ($12) ($5) ($0) ($0) Net Visa Gains $31 $32 $42 $43 $79 6h ix: Other Noninterest Income: Net Visa Gains
Slide 17: Basel III Regulatory Capital Ratios
Appendix: Basel III Regulatory Capital Ratios @PNc Asa result of the mane inhep Sori dates of ‘the final us i eset Ml theaduanced capital mules (Basel III rules), as well as the fact that PNC remains i ae the h for deterning risk- -weighted assets, an and deductions from, tanger the Beall ral cr ase
Slide 18: Basel III Regulatory Capital Ratios
Appendix: Basel III Regulatory Capital Ratios 1 Capital Ratios @PNc 2016 Transitional Basel lillestimated_ Jun. 9, Mar. 2015 Transitional Basel i Pro forma Fully Phased-In Basel I (estimated) [Sin mitions 31, Jun, 30, Tun.30, Mar.31, _ Jun.20, 2016 16 215 Dw _20%6 2015 |Common stock, related surplus
Slide 19: Non-GAAP to GAAP Reconciliation: Tangible Book Value per Common Share
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share Ratio @PNc % Change 6/30/16 6/30/16 $ in miltions, except per share data Jun.30, Mar.31, Jun. 3 vs. vs. 201 2016 2015 3/31/16 _6/30/15 Book value per common share $85.33 $83.47 $79.64 2% ™M% Tangible book value per common
Slide 20: Non-GAAP to GAAP Reconciliation: Return on Tangible Common Equity
Appendix: Non-GAAP to GAAP Reconciliation Return on Tangible Common Equity @PNc For the three months ended $ in mittions jun. 30, Mar.31, Jun. 30, 2016 2016 2015 Return on average common shareholders’ equity 8.87% 8.44% 9.75%] |Average common shareholders’ equity $41,717 $41,281 $40,818 ge goodwill
Slide 21: Non-GAAP to GAAP Reconciliation: Pretax Pre-Provision Earnings
Appendix: Non-GAAP to GAAP Reconciliation @PNc Pretax Pre-Provision Earnings For the three months ended % Change 6/60/16 = 6/30/16 |$ in miltions Jun.30, Mar.31, Jun. 30, vs. vs. 2016 2016 2015 3/31/16 6/30/15 Net interest income $2,068 $2,098 $2,052 (1%) 1% Noninterest income 1,726 1,567 1,814 10%
Slide 22: Non-GAAP to GAAP Reconciliation: Core Net Interest Income
Appendix: Non-GAAP to GAAP Reconciliation @PNc Core Net Interest Income For the three months ended % Change 6/30/16 6/30/16 $ in mittions Jun.30, Mar.31, Jun.30, vs. vs. 2016 2016 = 2015 3/31/16 6/30/15, Core net interest income $2,006 $2,012 $1,941 (.4%) 3% Total purchase accounting accretion Sched
Slide 23: Non-GAAP to GAAP Reconciliation: Core Net Interest Margin
Appendix: Non-GAAP to GAAP Reconciliation Core Net Interest Margin @PNc For the three months ended Jun.30, Mar.31, Dec. 31, Sept.30, Jun. 30, a 2016 2016 201520152015, Core net interest margin * 2.63% 2.65% 2.60% 2.57% 2.59%] Purchase accounting accretion impact on net interest margin 0.07% 0.10% 0.
Slide 24: Non-GAAP to GAAP Reconciliation: Fee Income
Appendix: Non-GAAP to GAAP Reconciliation @PNc Feelncome For the three months ended % Change 6/30/16 6/30/16 Jun.30, Mar.31, Jun. 30, vs. vs. $ in mittions 201 2016 2015 3/31/16 6/30/15 Asset management $377 $341 $416 11% (9%) Consumer services 354 337 334 5% 6% Corporate services 403 325 369 26% %