Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Barclays Global Investor Conference 2014
22 slides from Pnc Financial Services Group, Inc. (the)'s conference presentation, Sep 9, 2014
Slide 1: The PNC Financial Services Group, Inc. Barclays Global Investor Conference
Exhibit 99.1 The PNC Financial Services Group, Inc. Barclays Global Investor Conference September 9, 2014
Slide 2: Cautionary Statement Regarding Forward-Looking Information and Adjusted Information
Cautionary Statement Regarding Forward-Looking Information and Adjusted Information Our 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 ava
Slide 3: Focused on Executing
Focused on Executing Industry Issues Difficult operating environment Revenue growth challenged Regulatory compliance costs increasing PNC’s Differentiation Remain focused on acquiring appropriate risk-adjusted assets Invest and grow our fee income businesses Enhance our technologies and processes Ma
Slide 4: Performance Through the Cycle
Performance Through the Cycle Franchise Basel I Tier 1 Common Tangible Book Value All Time High (3) Closing Differentiation Capital Ratios (1) Per Common Share (2) Stock Price vs. 9/4/14 (1) (2) (3) Variance % Chg 12/31/07 to 6/30/14 % Chg From All Time High Performance through the cycle Disciplined
Slide 5: Executing Our Strategic Priorities
Executing Our Strategic Priorities Strategic Priorities Update Drive growth in acquired & Southeast sales (1) +22% CAGR (’12 -’14) underpenetrated Midwest sales (2) +8% CAGR (’09 -’14) markets Capture more investable assets AUA (3) :$300B +10% (2Q14 vs. 2Q13) Redefine the Retail Fee income (4) +7% (
Slide 6: Building Best In Class Technology & Operations
Building Best In Class Technology & Operations Key Accomplishments Priorities Activities YTD 2014 Developed and began execution Business Establish and demonstrate of technology strategy to further ability to recover critical Continuity systems mitigate business continuity and disaster recovery risks
Slide 7: Redefining the Retail Banking Business
Redefining the Retail Banking Business Successfully migrating customers to self-service – ATM/Mobile usage increasing Total deposit transactions 2Q13 2Q14 Retail Banking Headcount (HC) Digital Consumer Customers (1) 12 month change (June 2013 vs. June 2014) Investment Professionals Call Center Sales
Slide 8: Diverse and Higher Percentage of Noninterest Income
Diverse and Higher Percentage of Noninterest Income 1H14 Noninterest Income Mix Noninterest Income to Total Revenue (1) Includes net commercial mortgage servicing rights valuation gains. (2) Includes benefit/provision for residential mortgage repurchase obligations. (3) Other includes net gains on s
Slide 9: Focused Expense Management While Investing for Future Growth
Focused Expense Management While Investing for Future Growth (1) 2014 Expense Management Noninterest Expense Trends Opportunities Branch reconfiguration Process optimization Re-engineering mortgage servicing business Continued focus on expense savings initiatives through CIP (2) goal of $500 million
Slide 10: Balance Sheet Positioned for Rising Rates
Balance Sheet Positioned for Rising Rates Net Interest Income Sensitivity 2Q14 (1) Assumptions 100 Bps Parallel Increase Deposit betas are more conservative and higher (2) (3) than historical Yr1 Yr2 2Q14 10-Q 2.0% 6.8% Assumes re-investment yield of 1.54% on 6/30/14 and 2.54% on $ in millions Yr1 Y
Slide 11: Stronger Capital Position
Stronger Capital Position Capital Position Provides Capital Flexibility Highlights Capital priorities: – Build capital to support client growth and business investment – Maintain appropriate capital in light of economic uncertainty – Return excess capital to shareholders, subject to the CCAR process
Slide 12: Strategies to Drive Long-Term Potential
Strategies to Drive Long-Term Potential Strategic Priorities Update Long-Term Potential (1) Drive growth in acquired & Incremental annual underpenetrated markets revenue of $500M Total investable assets Capture more investable assets growth of $100 billion+ Redefine the Retail Banking Fee income (2)
Slide 13: Well-Positioned for the Future
Well-Positioned for the Future Opportunity to grow share in underpenetrated markets and deepen product penetration Focused on growing fee income businesses Creating opportunities to drive positive operating leverage Stronger capital provides opportunity to return more capital to shareholders 13
Slide 14: 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 15: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix • PNC’s ability to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock o
Slide 16: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) Appendix Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of third-party insurance, derivatives, a
Slide 17: Notes
Notes Appendix Explanatory Notes (A) Tangible book value (TBV) per common share calculated based on tangible common shareholders' equity (common shareholders' equity less goodwill and other intangible assets, other than servicing rights, net of deferred tax liabilities on such intangible assets) div
Slide 18: Transitional Basel III and Pro forma Fully Phased-In Basel III Common Equity Tier 1 Capital Ratios
Transitional Basel III and Pro forma Fully Phased-In Basel III Common Equity Tier 1 Capital Ratios Appendix As a result of the staggered effective dates of the final U.S. capital rules issued in July 2013, as well as the fact that PNC remains in the parallel run qualification phase for the advanced
Slide 19: Transitional Basel III and Pro forma Fully Phased-In Basel III Common Equity Tier 1 Capital Ratios
Transitional Basel III and Pro forma Fully Phased-In Basel III Common Equity Tier 1 Capital Ratios Appendix Transitional Basel III Pro forma Fully Phased-In Basel III Dollars in millions June 30, 2014 March 31, 2014 June 30, 2014 March 31, 2014 December 31, 2013(a) June 30, 2013(a) Common stock, rel
Slide 20: Tangible Book Value per Common Share
Tangible Book Value per Common Share Appendix Tangible book value per common share is a non-GAAP financial measure and is calculated based on tangible common shareholders’ equity divided by period-end common shares outstanding. We believe this non-GAAP financial measure serves as a useful tool to he
Slide 21: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix For the three months ended $ in millions June 30, 2014 June 30, 2013 % change Service charges on deposits $148 $141 Brokerage $61 $58 Consumer Services $248 $229 Total Retail Banking fee income $457 $428 7% Other $84 $114 Total Retail Banking noninterest incom
Slide 22: Peer Group of Banks
Peer Group of Banks Appendix 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, Inc. ST
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