Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Sanford C. Bernstein Strategic Decisions Conference 2010
25 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Jun 2, 2010
Slide 1: The PNC Financial Services Group, Inc. – Sanford C. Bernstein Strategic Decisions Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Sanford C. Bernstein Strategic Decisions Conference June 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: Today’s Discussion
Today’s Discussion PNC’s franchise is powerful and our execution delivered a strong 1Q10 performance PNC has made tremendous progress on meeting our strategic financial objectives PNC is well-positioned to achieve greater value as the economy recovers PNC Continues to Build a Great Company. 3
Slide 4: PNC’s Powerful Franchise
A Powerful PNC’s Powerful Franchise Franchise and a Solid 1Q10 March 31, 2010 U.S. Rank¹ 1 Deposits $183 billion 6thth Assets $265 billion 8thth Branches 2,461 5thth CO KS ATMs 6,467 5thth OK Asset Management TX One of the largest bank-held asset managers in the U.S. Retail Corporate & Institutional
Slide 5: Substantial 1Q10 Achievements
A Powerful Substantial 1Q10 Achievements Franchise and a Solid 1Q10 1Q10 Highlights 1Q10 pretax pre-provision earnings ¹ /provision Successfully delivered on key MTB 3.09 X strategic objectives while executing PNC 2.20 the PNC business model WFC 1.75 - Redeemed TARP preferred stock COF 1.65 - Improv
Slide 6: PNC’s Higher Quality, Differentiated Balance Sheet
PNC’s Higher Quality, Differentiated A Powerful Balance Sheet Franchise and a Solid 1Q10 March 31, Dec. 31, Category (billions) 2010 2008 ¹ Change Investment securities $58 $43 $15 Total loans 157 175 (18) Highlights Other assets 50 73 (23) Core funded - loans to Total assets $265 $291 ($26) deposit
Slide 7: Relative Credit Risk Profile
A Powerful Relative Credit Risk Profile Franchise and a Solid 1Q10 Key 1Q10 Metrics 1 1Q10 reserves / annualized NCOs 4.02% MTB 2.4 X 3.66% 3.65% PNC 1.9 3.38% FITB 1.6 2.97% 3.00% BBT 1.4 2.46% CMA 1.4 JPM 1.2 1.77% WFC 1.2 KEY 1.2 USB 1.2 RF 1.1 BAC 1.1 Nonperforming Nonperforming Net charge- Allo
Slide 8: Relative Capital Positioning
A Powerful Relative Capital Positioning Franchise and a Solid 1Q10 March 31, 2010 Tier 1 common ratio PNC highlights 9.6% 9.1% Improved quality of capital 8.6% 8.7% 7.7% 7.9% - Common as a % of Tier 1 7.5% 7.6% 7.1% 7.1% 7.1% capital ² increased to 77% 7.0% from 49% Capital priorities - Maintain str
Slide 9: PNC’s Framework for Success
Meeting PNC’s Framework for Success Strategic Financial Objectives PNC Business Strategic Model Key Metrics March 31, 2010 Objective 1Q10 ROAA Staying core Loans to deposits COF 1.23% ratio 86% 80%-90% funded (as of) PNC 1.02 Provision to USB .94 Returning to a average loans 1.9% MTB .88 moderate ri
Slide 10: An Environment of Change
Well An Environment of Change Positioned to Achieve Greater Value Economic environment - Subdued recovery - Unemployment - Interest rates Regulatory environment - PNC’s culture and principles - Impact on competitors - Reputational impact PNC’s Vision, Values and Business Model Position Us Well to Su
Slide 11: PNC’s Opportunities for Growth
Well PNC’s Opportunities for Growth Positioned to Achieve Greater Value Asset/Revenue Growth Leveraging the brand and 1.30% + ROAA Goal positioning to grow revenue Balance sheet flexibility Lending Acquisition cost savings New sales and deeper relationships Improvement in credit costs Bold thinking
Slide 12: Balance Sheet and Lending Opportunities
Well Balance Sheet and Lending Opportunities Positioned to Achieve Greater Value Substantial lending potential Significant balance sheet flexibility Corporate & Institutional As of March 31, 2010 Increased loan utilization Strong deposit funding base Commercial real estate Asset sensitive – position
Slide 13: Meeting Changing Customer Needs
Well Meeting Changing Customer Needs Positioned to Achieve Greater Value Averaging 350 new accounts per day since launch; approaching 200,000 users From 4Q08 to 1Q10 PNC has grown our Gen-Y customer base by 17% A successful platform to reach a broader consumer base over time - Students, Gen-X, Retir
Slide 14: Product Sales Across the Franchise
Well Product Sales Across the Franchise Positioned to Achieve Greater Value 1Q10 annualized sales contribution by region Sales highlights 1Q10 franchise sales up 23% vs. 1Q09 Legacy PNC Products markets ¹ 62% Corporate Legacy PNC markets 1 Banking 1Q10 sales up 22% vs. 1Q09 Wealth 92% of markets exc
Slide 15: Executing on Retail Cross Sell Opportunities
Well Executing on Retail Cross Sell Opportunities Positioned to Achieve Greater Value Relative cross-selling success ¹ “Gallup Great Workplace Award” Recipient Average # of products owned per retail customer BBT 3.4 Awarded to 15 PNC 3.3 companies worldwide WFC 3.2 recognized for an extraordinary ab
Slide 16: Executing on C&IB Cross Sell Opportunities
Well Executing on C&IB Cross Sell Opportunities Positioned to Achieve Greater Value Treasury Management Capital Markets Revenue 1 Revenue 1 $298 $276 $164 1Q10 cross-sell 1Q10 cross-sell highlights highlights Sales force at 126% Sales force at 100% of goal of goal Annualized sales Annualized sales r
Slide 17: Summary
Summary Our franchise is powerful and our ability to execute delivered a strong 1Q10 performance We have made tremendous progress on meeting our strategic financial objectives We are well-positioned to achieve greater value as the economy recovers PNC Continues to Build a Great Company. 17
Slide 18: 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 19: 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 tur
Slide 20: 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. Specifically, we may incur more
Slide 21: Impact of Pending Sale of PNC Global Investment Servicing
Impact of Pending Sale of PNC Global Investment Servicing 1 Appendix Estimated gain and capital enhancement (billions) Sales price $2.3 Less: Book equity / intercompany debt (1.5) Pretax gain 0.8 Income taxes (0.3) After-tax gain 0.5 Elimination of net intangible assets: Goodwill and other intangibl
Slide 22: Risk-Based Capital Ratios
Risk-Based Capital Ratios Appendix $ in billions Tier 1 common Tier 1 risk-based March 31, 2010 - Capital $17.6 $22.9 Ratios 7.9% 10.3% Net impact of pending 2010 sale of GIS 1 1.6 1.6 Proforma $19.2 $24.5 Proforma ratios 2 8.6% 11.0% (1) Pending sale of PNC Global Investment Servicing (“GIS”) is an
Slide 23: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix March 31, 2010 Net income Adjustments, Income taxes attributable to Diluted EPS from For the three months ended, in millions except per share data pretax (benefit) 1 Net income common shareholders net income Net income, as reported $671 $333 $.66 Adjustments:
Slide 24: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix December 31, 2008 Income taxes 1 For the three months ended, in millions Pretax (benefit) Net income Reported net income (loss) ($246) Conforming provision for credit losses - National City $504 ($176) 328 Net income excluding conforming provision for credit $
Slide 25: 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,
PNC Financial Services Group — Sanford C. Bernstein Strategic Decisions Conference 2010 on 6ix