Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2010 Earnings Presentation
19 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 22, 2010
Slide 1: The PNC Financial Services Group, Inc. First Quarter 2010 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. First Quarter 2010 Earnings Conference Call April 22, 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: Substantial 1Q10 Achievements
Substantial 1Q10 Achievements Successfully delivered on key strategic objectives while executing the PNC business model Delivered strong financial results - Well-diversified revenue - Disciplined expense management - Improved credit costs Business segments performed well; continued to grow clients a
Slide 4: PNC's Higher Quality, Differentiated Balance Sheet
PNC’s Higher Quality, Differentiated Balance Sheet March 31, Dec. 31, March 31, 2010 Category (billions) 2010 2009 Change key statistics Investment securities $58 $56 $2 Loans/assets Total loans 157 157 - 59% Other assets 50 57 (7) Total assets $265 $270 ($5) Investment securities/assets Transaction
Slide 5: Key Take-Aways
Key Take-Aways 1Q10 4Q09 Strong Reported earnings per diluted common share $.66 $2.17 earnings Adjusted earnings per diluted common share 1 $1.31 $.90 1Q10 4Q09 Stabilization of Net charge-offs to average loans 2 1.77% 2.09% credit quality, reserve level Nonperforming loans - change from prior quart
Slide 6: Pretax Pre-Provision Earnings Substantially Exceeded Credit Costs
Pretax Pre-Provision Earnings 1 Substantially Exceeded Credit Costs 1Q10 1Q10 noninterest income mix Categories in millions $3.8 14% 21% Deposit service charges $200 Consumer $2.1 services 19% $296 Corporate $1.7 services $268 $.8 $.7 Asset management Residential $259 mortgage $147 Other 19% $214 11
Slide 7: Maintaining Expense Discipline
Maintaining Expense Discipline PNC acquisition-related cost saves Highlights On pace to capture $1.5 billion in $1,500 annualized acquisition-related cost savings by end of 2010 $1,400 Continued to successfully manage expense base while investing for the future - 1Q10 noninterest expenses down 2% ye
Slide 8: Credit Quality Trends
Credit Quality Trends 1Q10 4Q09 3Q09 2Q09 1Q09 Accruing loans past 30 – 89 days $2,464 $2,388 $2,380 $2,195 $2,136 due 1 (millions) 90 days or more $841 $884 $875 $1,043 $501 Nonperforming loans Total nonperforming loans $5,761 $5,671 $5,126 $4,156 $2,960 (millions, except %) Change from prior quart
Slide 9: Improved Quality of Capital Structure
Improved Quality of Capital Structure Tier 1 common capital ratio Highlights 8.3% Improved quality of capital 7.6% - Common as a % of Tier 1 capital 3 increased to 77% 1 from 49% 6.0% 4.9% Capital priorities - Maintain strong capital levels - Support our clients - Invest in our businesses - Return c
Slide 10: PNC's Framework for Success
PNC’s Framework for Success PNC Business March 31, Strategic Key Metrics Action Plans Model 2010 Objective Staying core Loans to deposits Maximize credit portfolio value ratio 86% 80%-90% funded (as of) Reposition deposit gathering strategies Provision to Focus “front door” on risk-adjusted Returnin
Slide 11: Summary
Summary The continued execution of PNC’s business model resulted in a strong start to 2010 PNC’s earnings capacity is expected to deliver a solid 2010 financial performance PNC is well-positioned to achieve its strategic objectives PNC Continues to Build a Great Company. 11
Slide 12: 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 13: 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 14: 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 cr
Slide 15: 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 16: Risk-Based Capital Ratios
Risk-Based Capital Ratios Appendix $ in billions Tier 1 common 1 Tier 1 risk-based 1 March 31, 2010 - Capital $17.6 $22.9 Ratios 7.6% 9.9% Net impact of pending 2010 sale of GIS 2 1.6 1.6 Proforma $19.2 $24.5 Proforma ratios 8.3% 10.6% (1) Estimated. (2) Pending sale of PNC Global Investment Servici
Slide 17: 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 18: 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 19: 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,
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