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| 8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC. | d524157d8k.htm |
 The PNC
Financial Services Group, Inc. Annual Meeting of Shareholders
April 23, 2013
Exhibit 99.1 |
 James E.
Rohr Chairman and Chief Executive Officer |
 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 for earnings, revenues, expenses, capital levels and ratios, liquidity levels, asset levels, asset quality, financial
position, and other matters regarding or affecting PNC and its future business and
operations. 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 and in our SEC filings. We provide greater
detail regarding these as well as other factors in our 2012 Form 10-K, including in the
Risk Factors and Risk Management sections and in the Legal Proceedings and Commitments
and Guarantees Notes of the Notes To Consolidated Financial Statements in that report, and in our subsequent SEC
filings. Our forward-looking statements may also be subject to other risks and
uncertainties, including those we may discuss in this presentation or in SEC filings,
accessible on the SEC’s website at www.sec.gov and on PNC’s corporate website at www.pnc.com/secfilings. We have included web
addresses in this presentation as inactive textual references only. Information on these
websites is not part of this presentation. Future events or circumstances may
change our outlook and may also affect the nature of the assumptions, risks and uncertainties to which our forward-looking
statements are subject. 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. Actual results or future events could differ, possibly materially, from those anticipated in forward-
looking statements, as well as from historical performance.
In this presentation, we may sometimes refer to adjusted results to help illustrate the impact
of certain types of items. This information supplements our results as reported in
accordance with GAAP and should not be viewed in isolation from, or as 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 to help evaluate the impact of these respective items
on our operations. We may also provide information on the components of net interest income (purchase accounting
accretion and the core remainder) and the impact of purchase accounting accretion on net
interest margin. We believe that core net interest margin (net interest margin less
(annualized purchase accounting accretion divided by average interest-earning assets)), a non-GAAP measure, is useful as a
tool to help evaluate the impact of purchase accounting accretion on net interest margin.
Where applicable, we provide GAAP reconciliations for such additional information,
including in other slides and materials on our corporate website at www.pnc.com/investorevents and in our SEC filings. 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. We may also use
annualized, proforma, estimated or third party numbers for illustrative or comparative
purposes only. These may not reflect actual results. 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.”
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 2012
Achievements 2012 financial
summary
Net income
Diluted EPS from
net income
Return on average
assets
$3.0 billion
$5.30
1.02%
Exceptional customer growth across our businesses
Strong loan, deposit and revenue growth
Expenses reflect overall business investments
Overall credit quality improved
Capital and liquidity remained strong
Expanded into Southeastern markets with RBC Bank (USA) acquisition
Highlights
PNC Is Well-Positioned to Continue to Create Shareholder Value. |
 William S.
Demchak President |
 Strong First
Quarter Results in Challenging Environment Continued growth in customers and
loans Strengthened capital position
Increased common dividend by 10% to $.44 per share effective
with May dividend
1Q13 balance sheet highlights
Net income of $1 billion; Diluted EPS of $1.76
Solid revenue, disciplined expense management and improved
returns
Significant expense reduction from last quarter
Delivered strong returns
1Q13 income statement highlights
–
Return on average assets of 1.34%
–
Return on average common equity of 10.68% |
 Drive growth
in newly acquired and underpenetrated markets
Capture more investable assets
Build a stronger Residential Mortgage Banking
business
Redefine the Retail Banking business
Manage expenses
2013 Strategic Priorities |
 Cautionary
Statement Regarding Forward-Looking Information
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 for earnings, revenues, expenses, capital levels and
ratios, liquidity levels, asset levels, asset quality, financial position, and other matters regarding or
affecting PNC and its future business and operations that are forward-looking statements
within the meaning of the PrivateSecurities Litigation Reform Act.
Forward-looking statements are typically identified by words such as “believe,” “plan,” “expect,” “anticipate,” “see,”
“look,” “intend,” “outlook,” “project,”
“forecast,” “estimate,” “goal,” “will,” “should” 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 made. We do not assume any duty
and do not undertake to update forward-looking statements. Actual results or
future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as
from historical performance.
Our forward-looking statements are subject to the following principal risks and
uncertainties.
Changes in interest rates and valuations in debt, equity and other financial markets.
Disruptions in the liquidity and other functioning of U.S. and global financial markets. The
impact on financial markets and the economy of any changes in the credit ratings of U.S. Treasury obligations and other
U.S. government-backed debt, as well as issues surrounding the level of U.S. and European
government debt and concerns regarding the creditworthiness of certain sovereign
governments, supranationals and financial institutions in Europe.
Actions by Federal Reserve, U.S. Treasury and other government agencies, including those that
impact money supply and market interest rates. Changes
in customers’, suppliers’ and other counterparties’ performance and creditworthiness.
Slowing or failure of the current moderate economic expansion.
Continued effects of aftermath of recessionary conditions and uneven spread of positive
impacts of recovery on the economy and our counterparties, including adverse impacts
on levels of unemployment, loan utilization rates, delinquencies, defaults and
counterparty ability to meet credit and other obligations. Changes
in customer preferences and behavior, whether due to changing business and economic conditions, legislative and
regulatory initiatives, or other factors.
•Our businesses, financial results and balance sheet values are affected by business and
economic conditions, including the following: Our forward-looking financial
statements are subject to the risk that economic and financial market conditions will be substantially different
than we are currently expecting. These statements are based on our current view that the
moderate economic expansion will persist and interest rates will remain very low
in 2013, despite drags from Federal fiscal restraint and a European recession. These forward-looking
statements also do not, unless otherwise indicated, take into account the impact of potential
legal and regulatory contingencies. • |
 Cautionary
Statement Regarding Forward-Looking Information
(continued)
•PNC’s
regulatory capital ratios in the future will depend on, among other things, the company’s financial performance, the scope and terms
of final capital regulations then in effect (particularly those implementing the Basel Capital
Accords), and management actions affecting the composition of PNC’s balance
sheet. In addition, PNC’s ability to determine, evaluate and forecast regulatory capital ratios, and to take
actions (such as capital distributions) based on actual or forecasted capital ratios, will be
dependent on the ongoing development, validation and regulatory approval of related
models.
•Legal and
regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations,
competitive position, reputation, or pursuit of attractive acquisition opportunities.
Reputational impacts could affect matters such as business generation and retention,
liquidity, funding, and ability to attract and retain management. These developments could include:
Changes resulting from legislative and regulatory reforms, including major reform of the
regulatory oversight structure of the financial services industry and changes to laws
and regulations involving tax, pension, bankruptcy, consumer protection, and other
industry aspects, and changes in accounting policies and principles. We will be impacted by extensive reforms provided for
in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the
“Dodd-Frank Act”) and otherwise growing out of the recent financial
crisis, the precise nature, extent and timing of which, and their impact on us, remains uncertain.
Changes to regulations governing bank capital and liquidity standards, including due to the
Dodd-Frank Act and to Basel-related initiatives.
Unfavorable resolution of legal proceedings or other claims and regulatory and other
governmental investigations or other inquiries. In addition to matters relating
to PNC’s business and activities, such matters may include proceedings, claims,
investigations, or inquiries relating to pre-acquisition business and activities of
acquired companies, such as National City. These matters may result in monetary
judgments or settlements or other remedies, including fines, penalties, restitution or alterations
in our business practices, and in additional expenses and collateral costs, and may cause
reputational harm to PNC.
Results of the regulatory examination and supervision process, including our failure to
satisfy requirements of agreements with governmental agencies.
Impact on business and operating results of any costs associated with obtaining rights in
intellectual property claimed by others and of adequacy of our intellectual property
protection in general.
•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, and
capital management techniques, and to meet evolving regulatory capital standards.
In particular, our results currently depend on our ability to manage elevated levels of impaired assets.
•Business
and operating results also include impacts relating to our equity interest in BlackRock, Inc. and rely to a significant extent
on information
provided to us by BlackRock. Risks and uncertainties that could affect BlackRock are discussed in more detail by BlackRock in its
SEC filings.
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 Cautionary
Statement Regarding Forward-Looking Information
(continued)
•We grow our
business in part by acquiring from time to time other financial services companies, financial services assets and related
deposits and other liabilities. Acquisition risks and uncertainties
include those presented by the nature of the business acquired, including in some cases
those associated with our entry into new businesses or new geographic or other markets and
risks resulting from our inexperience in those new areas, as well as risks and
uncertainties related to the acquisition transactions themselves, regulatory issues, and the integration of the
acquired businesses into PNC after closing.
•Competition
can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect
market share,
deposits and revenues. Industry restructuring in the current environment could also impact our business and financial performance through
changes in counterparty creditworthiness and performance and in the competitive and regulatory
landscape. Our ability to anticipate and respond to technological changes can
also impact our ability to respond to customer needs and meet competitive demands.
•Business
and operating results can also be affected by widespread natural and other disasters, dislocations, terrorist activities or international
hostilities through impacts on the economy and financial markets generally or on us or our
counterparties specifically.
We provide greater detail regarding these as well as other factors in our 2012 Form 10-K,
including in the Risk Factors and Risk Management sections and the Legal
Proceedings and Commitments and Guarantees Notes of the Notes To Consolidated Financial Statements in that report, and
in our subsequent SEC filings. Our forward-looking statements may also be subject to
other risks and uncertainties, including those we may discuss elsewhere in this
presentation or in SEC filings, accessible on the SEC’s website at www.sec.gov and on 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.
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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