Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2008 Earnings Presentation
14 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 17, 2008
Slide 1: The PNC Financial Services Group, Inc. First Quarter 2008 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. First Quarter 2008 Earnings Conference Call April 17, 2008
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information This presentation contains forward-looking statements regarding our outlook or expectations relating to PNC’s future business, operations, financial condition, financial performance and asset quality. Forward-looking
Slide 3: Key Take-Aways
Key Take-Aways Delivered solid results Posted strong revenue growth despite market volatility Created positive operating leverage Maintained a well-positioned balance sheet Asset quality performing as expected Building our tier 1 capital ratio Despite Market Volatility, PNC’s Ability to Execute Yiel
Slide 4: Business Segment Highlights
Business Segment Highlights Retail Effectively grew net checking relationships organically Investments in acquired branches produced excellent results Asset quality performing as expected Corporate & Institutional Acquisitions and client demand helped drive loan and deposit growth Strong year over y
Slide 5: First Quarter 2008 Highlights
First Quarter 2008 Highlights 1Q08 4Q07 1Q07 Diluted earnings per share $1.09 $.52 $1.46 Delivered solid results Posted strong revenue growth despite market volatility Created positive operating leverage Maintained a well-positioned balance sheet Asset quality performing as expected Building our tie
Slide 6: Diversified Revenue Growth
Diversified Revenue Growth 1 Change vs. $2.0 1Q08 Mix 4Q07 1Q07 $1.5 Noninterest Income +16% (2%) 53% $1.0 Deposit NII $0.5 29% +8% +36% Loan NII 18% +7% +40% $0 Net Interest Income Growth +8% +37% Total Revenue Growth +12% +13% PNC’s Revenue Streams are Diverse and Require Less Credit Capital. (1)
Slide 7: Noninterest Income
Noninterest Income Change vs. (In millions) 1Q08 4Q07 1Q07 Fund servicing $228 6% 12% Asset management 212 (6) 28 Consumer services 170 (5) 8 Corporate services 164 (9) 3 Service charges on deposits 82 (9) 6 Net securities gains (losses) 41 NM NM Other 1 70 NM (70) Total noninterest income $967 16%
Slide 8: Creating Positive Operating Leverage
Creating Positive Operating Leverage Compound Annual Growth 1Q08 vs. 1Q07 $7 (2004-2007, as adjusted)¹ $6 Revenue Revenue +12% +13% $5 $4 Expense Expense +9% +10% $3 $1.7 Operating $2 $1.2 $1.3 $1.5 Operating Leverage Leverage $1 +3% +3% $0 2004 2005 2006 2007 Adjusted Revenue (as reported $5.5 bill
Slide 9: Credit, Balance Sheet and Capital
Credit, Balance Sheet and Capital Asset Quality Balance Sheet Management Capital Management Credit decisions driven by Duration of equity of 2.2 Estimated Tier 1 capital risk-adjusted returns years ratio of 7.7% Minimal exposure to Net interest margin Continued access to capital subprime mortgages,
Slide 10: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information Appendix We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-loo
Slide 11: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix •Our business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through the effective use of third-party insurance, deriv
Slide 12: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, 2007 PNC PNC In millions As Reported Adjustments (a) As Adjusted Net interest income $2,915 $2,915 Noninterest income 3,790 $131 3,921 Total revenue 6,705 131 6,836 Provision for credit losses 315 (45) 270 Noninterest expense 4,
Slide 13: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, 2005 BlackRock PNC Deconsolidation and BlackRock PNC In millions As Reported Other Adjustments Equity Method As Adjusted Net interest income $2,154 $(12) $2,142 Noninterest income 4,173 (1,214) $163 3,122 Total revenue 6,327 (1,
Slide 14: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the year ended December 31, as adjusted Adjusted In millions 2004 2005 2006 2007 2004-2007 CAGR Adjusted net interest income $1,955 $2,142 $2,235 $2,915 14% Adjusted noninterest income 2,928 3,122 3,572 3,921 10% Adjusted total revenue 4,883 5,264 5,807 6,
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