 The PNC
Financial Services Group, Inc. CLSA AsiaUSA Forum March 3, 2010 Exhibit 99.1 |
| The PNC
Financial Services Group, Inc. CLSA AsiaUSA Forum March 3, 2010 Exhibit 99.1 |
 2 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 available by PNC in its SEC filings. The presentation also contains forward- looking statements regarding our outlook or expectations relating to PNC’s future business,
operations, financial condition, financial performance, capital and liquidity levels,
and asset quality. Forward-looking statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over time. The forward-looking statements in this presentation are qualified by the factors affecting
forward-looking statements identified in the more detailed Cautionary Statement
included in the Appendix, which is included in the version of the presentation materials posted on our corporate website at www.pnc.com/investorevents. We provide greater detail regarding some of these factors in
our 2008 Form 10-K and 2009 Form 10-Qs, including in the Risk Factors and Risk
Management sections of those reports, and in our other SEC filings (accessible on the SEC’s website at www.sec.gov and on or through our corporate website at www.pnc.com/secfilings). We have included
web addresses here and elsewhere in this presentation as inactive textual references
only. Information on these websites is not part of this document. Future events or circumstances may change our outlook or expectations and may also affect the
nature of the assumptions, risks and uncertainties to which our forward-looking
statements are subject. The forward-looking statements in this presentation speak only as of the date of this presentation. We do not assume any duty and do not undertake to update those statements.
In this presentation, we will sometimes refer to adjusted results to help illustrate the impact of
certain types of items, including our fourth quarter 2009 gain related to
BlackRock’s acquisition of Barclays Global Investors (“BGI”), our fourth quarter 2008 conforming provision for credit losses for National City, and other integration costs in the 2009 and 2008 periods. This information
supplements our results as reported in accordance with GAAP and should not be viewed in
isolation from, or a substitute for, our GAAP results. We believe that this additional information and the reconciliations we provide may be useful to investors, analysts, regulators and others as they
evaluate the impact of these respective items on our results for the periods presented
due to the extent to which the items are not indicative of our ongoing operations. In certain discussions, we may also provide information on yields and margins for all
interest-earning assets calculated using net interest income on a
taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. We believe this adjustment may be useful when comparing yields and margins
for all earning assets. This presentation may also include discussion of other non-GAAP financial measures, which, to
the extent not so qualified therein or in the Appendix, is qualified by GAAP
reconciliation information available on our corporate website at www.pnc.com under “About PNC–Investor Relations.” |
 3 PNC’s achievements have been exceptional Today’s Discussion Solid 2009 financial performance Significant execution across our businesses has PNC well-positioned for growth PNC Continues to Build a Great Company. PNC Continues to Build a Great Company. |
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 5 Footprint covering nearly 1/3 of the U.S. population Retail Corporate & Institutional A leader in serving middle-market customers and government entities One of the largest bank-held asset managers in the U.S. Asset Management Residential Mortgage One of the nation’s largest mortgage platforms PNC’s Powerful Franchise $270 billion Assets Dec. 31, 2009 6,473 2,512 $187 billion ATMs Branches Deposits (1) Rankings source: SNL DataSource; Headquartered in U.S. CO TX KS OK 2009 Overview BlackRock One of the largest publicly traded investment management firms in the world th th th th 5 8 5 5 1 U.S. Rank |
 6 PNC’s Framework for Success Execute on and deliver the PNC business model Capitalize on integration opportunities Emphasize continuous improvement culture Leverage credit that meets our risk/return criteria Focus on cross selling PNC’s deep product offerings Focus “front door” on risk- adjusted returns Leverage “back door” credit liquidation capabilities Maximize credit portfolio value Reposition deposit gathering strategies Action Plans 0.17% N/A 45% 3.5% 93% >$1.2 billion 2.4% 84% PNC Dec. 31, 2009 1.30%+ $1.5 billion >50% 0.3%-0.5% 80%-90% Target Return on average assets (for the year ended) Key Metrics Loan to deposit ratio (as of) Provision to average loans (for the year ended) Noninterest income/total revenue (for the year ended) Integration cost savings (4Q09 annualized) Executing our strategies PNC Business Model Staying core funded Returning to a moderate risk profile Growing high quality, diverse revenue streams Creating positive operating leverage 2009 Overview 1 43% 0.62% 1 2 Peers Dec. 31, 2009 (1) Excludes the impact of the $1.1 billion pretax, $687 million after-tax, gain related to
BlackRock’s acquisition of Barclays Global Investors on December 1, 2009
(“the BLK/BGI gain”). Including the gain, noninterest income to total revenue percentage for the year was 47% and the return on average assets for the year was .87%. Further information is provided in
the Appendix. (2) Peers represents average of banks identified in the Appendix. Source:
SNL DataSource. |
 7 Transitioning to a Higher Quality, Differentiated Balance Sheet Core funded - loan to deposit ratio of 84% Appropriately reserved Improved quality and pricing of deposit base Asset sensitive – duration of equity negative 1 year Higher quality capital Balance sheet positioning - 8 Preferred equity ($21) $270 Total liabilities and equity ($13) $39 Borrowed funds (12) 12 Other time/savings ($6) $187 Total deposits (7) 14 Other liabilities (9) 49 Retail CDs $15 $126 Transaction deposits 5 22 Common equity (16) 57 Other assets (18) 157 Total loans ($21) $270 Total assets $56 Dec. 31, 2009 $13 YoY change Investment securities Category (billions) 2009 Overview PNC Made Substantial Progress in 2009 Transitioning the PNC Made Substantial Progress in 2009 Transitioning the Balance Sheet to Reflect Its Business Model. Balance Sheet to Reflect Its Business Model. |
 8 Pretax Pre-Provision Earnings Substantially Exceed Credit Costs $17.0 $9.7 $7.3 $3.9 Full year 2009 $2.4 1.86 1.85 1.83 1.50 1.47 1.37 1.32 1.22 1.09 0.89 0.66 0.40 0.27 MTB PNC WFC JPM USB BBT COF FITB BAC CMA RF STI KEY 2009 pretax pre-provision earnings /provision Excluding the BLK/BGI gain 1.57 X 2009 Overview Revenue Expense Pretax pre- provision earnings Provision Net income PNC Is Recognized for the Ability to Create Positive Operating PNC Is Recognized for the Ability to Create Positive Operating Leverage to Help Offset Credit Costs. Leverage to Help Offset Credit Costs. x² 1 1 1 (1) Total revenue less noninterest expense. Revenue includes a $1.1 billion gain related to
BlackRock’s acquisition of BGI on December 1, 2009. Further information is
provided in the Appendix. (2) Further information is provided in the Appendix. |
 9 Execution Opportunities for Delivering Shareholder Value Potential Year ended Dec. 31, 2009 Well- Positioned for Growth Revenue growth enhancements Capture integration cost saves Improvement in credit costs Return on average assets 1.30%+ .62% PNC Is Recognized for Delivering on Its Growth Initiatives. PNC Is Recognized for Delivering on Its Growth Initiatives. Economic recovery EXPENSES CREDIT COSTS REVENUE (1) Excludes the impact of the $1.1 billion pretax, $687 million after-tax, gain related to
BlackRock’s acquisition of Barclays Global Investors on December 1, 2009
(“the BLK/BGI gain”). Including the gain, the return on average assets for the year was .87%. Further information is provided in the Appendix. 1 |
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Integration Progress 0 1 2 3 4 5 6 Millions Nov 2009 Feb 2010 Apr 2010 Jun 2010 2009 captured $800 $1,300+ June 2011 goal¹ $1,500 2010 expectation 4Q09 annualized >$1,200 PNC integration cost saves # Customers converted to PNC Millions Branch divestitures completed by September 2009 Increased estimate of integration savings by $300 million at year- end 2009 Personnel expense savings increased due to benefit consolidations Office space reduced by two million square feet Optimizing our expense base remains a top priority Highlights Waves 1 2 3 4 Well- Positioned for Growth (1) Annualized acquisition-related cost savings goal. (2) Scheduled. 2 2 PNC Is Well-Positioned to Capture the Full Value of the Integration. |
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Strong Loss Coverage 2009 reserves / total loans 4.99% 4.75% 4.54% 4.28% 3.94% 3.38% 3.22% 2.96% 2.64% 2.54% 2.45% 2.34% 1.69% JPM FITB COF KEY BAC RF PNC WFC STI USB BBT CMA MTB 2009 reserves / net charge-offs 1.9 1.7 1.5 1.5 1.4 1.4 1.3 1.3 1.1 1.1 1.1 1.0 0.9 PNC MTB BBT FITB RF JPM WFC USB CMA KEY BAC STI COF As of or for the year ended for 2009. Peer source: SNL DataSource. (1) Impairment marks on loans
acquired from National City that were impaired per FASB ASC 310-30 (AICPA SOP
03-3). X Well- Positioned for Growth PNC’s Loan Loss Reserves and Impairment Marks¹ Leave It Well-Positioned as the Economy Recovers. |
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Meeting Changing Customer Needs Well- Positioned for Growth Declining check usage Higher purchasing through alternative channels Increasing online banking and online bill pay usage Importance of deepening customer relationships Need for successful, innovative platforms for growth Reliance on electronic payments and processing Leverage provided by a broad set of products and services Gathering assets and gaining a greater share of wallets Delivering consistent products and services PNC has recognized and responded to: |
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Growing and Deepening Relationships 2008 2009 Alternative distribution channels are critical to sustained growth Legacy PNC retail checking relationship growth during the year Deepening relationships drives retention and profitability 4Q08 4Q09 Legacy PNC active online bill pay customers 70,000 119,000 379,000 447,000 Well- Positioned for Growth PNC’s History of Building and Deepening Relationships Creates Tremendous Opportunity. 1 1 (1) Legacy PNC excludes relationships added from acquisitions and the impact of required
divestitures. (2) Numbers as of period end. 2 2 |
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Product Innovation Average new accounts opened per day at 300+ in 2009 From 4Q08 to 4Q09 PNC has grown our Gen-Y customer base by 14% Virtual Wallet customers average higher balances and transactions than checking-only accounts High retention rates have greatly exceeded our expectations “A slick personal finance tool” - BUSINESSWEEK “A truly inspired effort” - NETBANKER “One of the boldest enhancements to the online banking experience” - CELENT Well- Positioned for Growth A successful platform to reach a broader consumer base - - Student edition Student edition - - Retirement Retirement PNC Is a Recognized Leader in Product Innovation. PNC Is a Recognized Leader in Product Innovation. |
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Growing Relationship-Based Revenue $0 $130 $260 $390 $520 $650 1Q09 4Q09 millions +7% Treasury management Capital markets Commercial mortgage banking activities C&IB product revenue¹ +330% +41% $0 $50 $100 $150 $200 $250 1Q09 4Q09 millions Asset management revenue² 4Q09 PNC assets under management +7% from 1Q09³ Well- Positioned for Growth (1) Represents PNC consolidated amounts for these product categories. (2) Represents PNC consolidated
amount. Includes BlackRock and Asset Management Group segments. (3) Asset Management
Group. |
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Product Sales Across the Franchise Corporate Banking Wealth Management Institutional Investments Business Bank- Commercial 2009 FY annualized sales contribution by region Total franchise FY09 sales 132% of full year goal 4Q09 sales up 41% vs. 1Q09 Legacy PNC
markets¹ FY09 sales 136% of full year goal All markets exceeded FY goal Legacy National City
markets² FY09 sales 126% of full year goal 85% of markets exceeded FY goal Sales highlights Products Legacy PNC markets¹ 58% Legacy National City markets² 42% (1) Includes overlap markets where PNC had a higher deposit share than National City prior to the
acquisition. (2) Includes overlap markets where National City had a higher deposit
share than PNC prior to the acquisition. Well- Positioned for Growth PNC Has Significant Sales Momentum Across the Franchise. PNC Has Significant Sales Momentum Across the Franchise. |
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(6) (5) (4) (3) (2) (1) 0 1 2 3 4 0% 1% 2% 3% 4% 5% 6% Balance Sheet Management PNC Duration of Equity (At Quarter End) Fed Funds Effective Rate (At Quarter End) 2007 2008 2009 1.4% 100 bps increase (6.0%) 100 bps decrease Effect on NII in 2 year from gradual interest rate change over preceding 12 months Effect on NII in 1 year from gradual interest rate change over following 12 months PNC 4Q09 NII Sensitivity (2.0%) 1.1% 100 bps decrease 100 bps increase Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Well- Positioned for Growth Q4 PNC’s Balance Sheet Is Well-Positioned to Take Advantage of Improvement in Loan Demand. nd st |
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February 2010 Actions Redeemed $7.6 billion of PNC preferred stock held by the US Treasury - Eliminated $380 million in annual preferred dividends Reached a definitive agreement to sell PNC Global Investment Servicing for $2.3 billion - Expected $1.6 billion increase to Tier 1 common capital upon closing¹ Issued $3.0 billion of PNC common equity and $2.0 billion of senior debt Well- Positioned for Growth PNC’s Recent Actions Are Consistent with a History of Disciplined Capital Management. (1) See the Appendix for additional information. The transaction is currently anticipated to
close in the third quarter of 2010 subject to regulatory approvals and certain other
closing conditions. |
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6.5% 6.8% 7.0% 7.2% 7.5% 7.7% 7.8% 8.2% 8.5% 8.8% 10.7% 8.0% 6.0% PNC WFC USB FITB RF KEY STI BAC PNC CMA BBT JPM COF Relative Capital Positioning December 31, 2009 Tier 1 common ratio (1) Estimated. Further information is provided in the Appendix. Peer source: company reports.
PNC’s Proforma Tier 1 Common Capital Ratio 1 of 8.0% Provides Flexibility for Future Growth. PNC’s capital priorities Maintain strong capital levels Support our clients Invest in our businesses Return capital to shareholders when appropriate Well- Positioned for Growth |
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Summary PNC’s achievements have been exceptional given the challenging environment PNC’s businesses continued to execute and
are well-positioned as the economy recovers PNC’s positioning and opportunities for growth are expected to deliver significant value PNC Continues to Build a Great Company. PNC Continues to Build a Great Company. |
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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 information made available by PNC in its SEC filings. We also make statements in this presentation, and we may from time to time make other statements,
regarding our outlook or expectations for earnings, revenues, expenses, capital levels,
liquidity levels, asset quality and/or other matters regarding or affecting PNC that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
Forward-looking statements are typically identified by words such as “believe,” “plan,” “expect,” “anticipate,”
“intend,” “outlook,” “estimate,” “forecast,” “will,” “project” and other similar words and expressions. Forward- looking statements are subject to numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are made. We do not assume any duty
and do not undertake to update our forward-looking statements. Actual results
or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ materially from our historical performance. Our forward-looking statements are subject to the following principal risks and
uncertainties. We provide greater detail regarding some of these factors in our
2008 Form 10-K and 2009 Form 10-Qs, including in the Risk Factors and Risk Management sections of those reports, and in our other SEC filings. Our forward-looking statements may also be subject to other risks and
uncertainties, including those that we may discuss elsewhere in this presentation or in
our filings with the SEC, accessible on the SEC’s website at www.sec.gov and on or through our corporate website at www.pnc.com/secfilings. We have included these web addresses as inactive textual references
only. Information on these websites is not part of this document. •Our businesses and financial results are affected by business and economic conditions, both
generally and specifically in the principal markets in which we operate. In particular,
our businesses and financial results may be impacted by: o
Changes in interest rates and valuations in the debt, equity and other financial
markets; o Disruptions in the liquidity and other functioning of financial markets, including such disruptions
in the markets for real estate and other assets commonly securing financial products;
o Actions by the Federal Reserve and other government agencies, including those that impact money
supply and market interest rates; o Changes in our customers’, suppliers’ and other counterparties’ performance in
general and their creditworthiness in particular; o
Changes in levels of unemployment; and o Changes in customer preferences and behavior, whether as a result of changing business and economic
conditions, climate-related physical changes or legislative and regulatory
initiatives, or other factors. •A continuation of recent turbulence in significant
portions of the US and global financial markets, particularly if it worsens, could impact our performance, both directly by affecting our revenues and the value of our assets and liabilities
and indirectly by affecting our counterparties and the economy generally. •Our business and financial performance could be impacted as the financial industry
restructures in the current environment, both by changes in the creditworthiness and
performance of our counterparties and by changes in the competitive and regulatory landscape. •Given current economic and financial market conditions, our forward-looking financial
statements are subject to the risk that these conditions will be substantially
different than we are currently expecting. These statements are based on our current expectations that interest rates will remain low in the first half of 2010 but will move upward in the second half of the year and our view that the
modest economic recovery that began last year will extend through 2010.
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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 turn, could affect matters such as business generation and retention, our ability to attract and retain management, liquidity, and funding. These legal and
regulatory developments could include: o Changes resulting from legislative and regulatory responses to the current economic and financial
industry environment; o Other legislative and regulatory reforms, including broad-based restructuring of financial
industry regulation as well as changes to laws and regulations involving tax, pension,
bankruptcy, consumer protection, and other aspects of the financial institution industry; o Increased litigation risk from recent regulatory and other governmental developments; o Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental
inquiries; o The results of the regulatory examination and supervision process, including our failure to satisfy
the requirements of agreements with governmental agencies; o Changes in accounting policies and principles; o Changes resulting from legislative and regulatory initiatives relating to climate change that have
or may have a negative impact on our customers’ demand for or use of our products
and services in general and their creditworthiness in particular; and o Changes to regulations governing bank capital, including as a
result of the so-called “Basel 3” initiatives. •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, derivatives, and capital
management techniques, and by our ability to meet evolving regulatory capital
standards. •The adequacy of our intellectual property protection, and the extent
of any costs associated with obtaining rights in intellectual property claimed by
others, can impact our business and operating results. •Our ability to anticipate
and respond to technological changes can have an impact on our ability to respond to customer needs and to meet competitive demands. •Our ability to implement our business initiatives and strategies could affect our financial
performance over the next several years. •Competition can have an impact on
customer acquisition, growth and retention, as well as on our credit spreads and product pricing, which can affect market share, deposits and revenues. •Our business and operating results can also be affected by widespread natural disasters,
terrorist activities or international hostilities, either as a result of the impact on
the economy and capital and other financial markets generally or on us or on our customers, suppliers or other counterparties specifically. •Also, risks and uncertainties that could affect the results anticipated in
forward-looking statements or from historical performance relating to our equity
interest in BlackRock, Inc. are discussed in more detail in BlackRock’s filings with the SEC, including in the Risk Factors sections of BlackRock’s reports. BlackRock’s SEC filings are accessible on the SEC’s website and
on or through BlackRock’s website at www.blackrock.com. This material is
referenced for informational purposes only and should not be deemed to constitute a part of this document. In addition, our acquisition of National City Corporation (“National City”) on December
31, 2008 presents us with a number of risks and uncertainties related both to the
acquisition itself and to the integration of the acquired businesses into PNC. These risks and uncertainties include the following: •The anticipated benefits of the transaction, including anticipated cost savings and strategic
gains, may be significantly harder or take longer to achieve than expected or may not
be achieved in their entirety as a result of unexpected factors or events. |
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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 recently. Specifically, we may incur more credit losses from National City’s loan portfolio than expected. Other issues related to achieving anticipated financial results
include the possibility that deposit attrition or attrition in key client, partner and
other relationships may be greater than expected. •Legal proceedings or other
claims made and governmental investigations currently pending against National City, as well as others that may be filed, made or commenced relating to National City’s business and activities
before the acquisition, could adversely impact our financial results. •Our ability to achieve anticipated results is also dependent on our ability to bring National
City’s systems, operating models, and controls into conformity with ours and to do
so on our planned time schedule. The integration of National City’s business and operations into PNC, which includes conversion of National City’s different systems and
procedures, may take longer than anticipated or be more costly than anticipated or have
unanticipated adverse results relating to National City’s or PNC’s existing businesses. PNC’s ability to integrate National City successfully may be adversely affected by the fact
that this transaction has resulted in PNC entering several markets where PNC did not
previously have any meaningful retail presence. In addition to the National City transaction, we grow our business from time to time by acquiring
other financial services companies. Acquisitions in general present us with
risks, in addition to those presented by the nature of the business acquired, similar to some or all of those described above relating to the National City acquisition. Any annualized, proforma, estimated, third party or consensus numbers in this presentation are used
for illustrative or comparative purposes only and may not reflect actual results.
Any consensus earnings estimates are calculated based on the earnings projections made
by analysts who cover that company. The analysts’ opinions, estimates or forecasts (and therefore the consensus earnings estimates) are theirs alone, are not those of PNC or its management, and may not reflect PNC’s
or other company’s actual or anticipated results. |
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Impact of Planned Sale of GIS (0.2) (0.0) Adjustments / other 1.1 Net intangible 1.3 Goodwill and other intangible assets Elimination of net intangible: Less: (1.5) Book equity / intercompany debt Cash Book (billions) $1.6 (0.2) 0.5 (0.3) 0.8 $2.3 PNC tangible capital improvement Eligible deferred income taxes on goodwill and other intangible assets After tax gain / increase in cash Taxes Pretax gain Sales price $1.8 (0.3) 2.1 $2.3 Estimated gain, cash proceeds and capital enhancement Appendix (1) The transaction is currently expected to close in the third quarter of 2010, subject to
regulatory approvals and certain other closing conditions. (2) Book column amount
reflects transaction expenses of $46 million; cash column amount reflects transaction expenses of $46 million and $138 million of deferred tax reversal. 2 1 |
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Risk-Based Capital Ratios 1.6 1.6 Net impact of sale of GIS 10.3% 8.0% Proforma ratios $23.4 $18.1 Proforma 11.5% 6.0% Ratios 3.0 (.3) $13.8 3.0 Common equity offering (7.6) TARP redemption $26.4 December 31, 2009 $ in billions (1) Estimated. (2) Completed February 10, 2010. (3) Tier 1 common column reflects acceleration of
accretion of remaining issuance discount. (4) Completed February 8, 2010. (5)
Anticipated to occur in the third quarter of 2010 subject to regulatory approvals and certain other closing conditions. Appendix 1 Tier 1 common 2,3 4 5 1 Tier 1 risk based |
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Non-GAAP to GAAP Reconcilement Appendix For the three months ended, in millions Pretax Income taxes (benefit) (a) Net income Reported net income (loss) ($246) National City conforming provision for credit losses $504 ($176) 328 Net income excluding National City conforming provision for credit losses $82 Year ended, in millions Pretax Income taxes (benefit) (a) Net income Diluted EPS Reported net income $2,403 $4.36 Gain on BlackRock/BGI transation ($1,076) $389 (687) (1.51) Net income excluding gain on BlackRock/BGI transaction $1,716 $2.85 Year ended, in millions Net income Average assets Return on average assets Reported $2,403 $276,876 0.87% Excluding gain on BlackRock/BGI transaction $1,716 $276,876 0.62% December 31, 2008 PNC believes that information adjusted for the impact of certain items may be useful due to the extent to which the items are not indicative of our ongoing operations. December 31, 2009 PNC believes that information adjusted for the impact of certain items may be useful due to the extent to which the items are not indicative of our ongoing operations. December 31, 2009 (a) Calculated using a marginal federal income tax rate of 35%. The after-tax gain on the
BlackRock/BGI transaction also reflects the impact of state income taxes.
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Non-GAAP to GAAP Reconcilement Appendix in millions Reported Gain on BlackRock/BGI transaction Reported excluding BlackRock/BGI gain Reported Gain on BlackRock/BGI transaction Reported excluding BlackRock/BGI gain Net interest income $9,054 $9,054 $2,345 $2,345 Noninterest income 7,934 $1,076 6,858 2,737 $1,076 1,661 Total revenue $16,988 $1,076 $15,912 $5,082 $1,076 $4,006 Noninterest income/total revenue 47% 43% 54% 41% in millions Reported excluding BlackRock/BGI gain Global Investment Servicing Reported excluding BlackRock/BGI gain and Global Investment Servicing Net interest income $9,054 ($29) $9,083 Noninterest income 6,858 810 6,048 Total revenue $15,912 $781 $15,131 Noninterest income/total revenue 43% 40% PNC believes that information adjusted for the impact of certain items may be useful due to the extent to which the items are not indicative of our ongoing operations. Year ended Dec. 31, 2009 Three months ended Dec. 31, 2009 Year ended Dec. 31, 2009 |
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Non-GAAP to GAAP Reconcilement Appendix Year ended March 31, 2009 June 30, 2009 Sept. 30, 2009 Dec. 31, 2009 Dec. 31, 2009 in millions Total revenue $3,871 $3,987 $4,048 $5,082 $16,988 Noninterest expense 2,328 2,658 2,379 2,369 9,734 Pretax pre-provision earnings 1,543 1,329 1,669 2,713 7,254 Provision for credit losses 880 1,087 914 1,049 3,930 Excess of pretax pre-provision earnings over credit losses $663 $242 $755 $1,664 $3,324 Net charge-offs $431 $795 $650 $835 $2,711 Pretax pre-provision earnings / provision 1.85 Total revenue $3,871 $3,987 $4,048 $5,082 $16,988 Gain on BlackRock/BGI transaction 1,076 1,076 Total revenue excluding BlackRock/BGI gain 3,871 3,987 4,048 4,006 15,912 Noninterest expense 2,328 2,658 2,379 2,369 9,734 Pretax pre-provision earnings excluding BlackRock/BGI gain 1,543 1,329 1,669 1,637 6,178 Provision for credit losses 880 1,087 914 1,049 3,930 Excess of pretax pre-provision earnings excluding BlackRock/BGI gain over credit losses $663 $242 $755 $588 $2,248 Net charge-offs $431 $795 $650 $835 $2,711 Pretax pre-provision earnings excluding BlackRock/BGI gain / provision 1.57 Three months ended PNC believes that pretax pre-provision earnings is useful as a tool to help evaluate ability to
provide for credit costs through operations. PNC believes that information adjusted for the impact of certain items may be useful due to the extent to which the items are not
indicative of our ongoing operations. |
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Non-GAAP to GAAP Reconcilement Appendix Adjustments, Income taxes Net Diluted Adjustments, Income taxes Net Diluted For the three months ended, in millions except per share data Pretax (benefit) (a) Income EPS Pretax (benefit) (a) Income EPS Net income, as reported $1,107 $2.17 $559 $1.00 Adjustments: Gain on BlackRock/BGI transaction ($1,076) $389 (687) (1.49) Integration costs 155 (54) 101 .22 $89 ($31) 58 .12 Net income, as adjusted $521 $.90 $617 $1.12 Adjustments, Income taxes Net Diluted For the three months ended, in millions except per share data Pretax (benefit) (a) Income EPS Net income (loss), as reported ($246) $(.77) Adjustments: $504 ($176) 328 .94 Other integration costs 81 (29) 52 .15 Net income, as adjusted $134 $.32 Adjustments, Income taxes Net Diluted Adjustments, Income taxes Net Diluted Year ended, in millions except per share data Pretax (benefit) (a) Income EPS Pretax (benefit) (a) Income EPS Net income, as reported $2,403 $4.36 $914 $2.44 Adjustments: Gain on BlackRock/BGI transaction $(1,076) $389 (687) (1.51) $504 ($176) 328 .95 Other integration costs 421 (147) 274 .60 145 (51) 94 .27 Net income, as adjusted $1,990 $3.45 $1,336 $3.66 December 31, 2009 September 30, 2009 December 31, 2008 December 31, 2009 December 31, 2008 (a) Calculated using a marginal federal income tax rate of 35%. The after-tax gain on the
BlackRock/BGI transaction also reflects the impact of state income taxes. PNC believes that information adjusted for the impact of certain items may be useful due to the
extent to which the items are not indicative of our ongoing operations. Conforming
provision for credit losses - National City Conforming provision for credit losses - National City |
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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. STI U.S. Bancorp USB Wells Fargo & Company WFC Ticker |