PNC Financial Services Group, Inc. (the) · NYSE:PNC
PNC Financial Services Group, Inc. (the) — FY2006 Earnings Presentation
14 slides from PNC Financial Services Group, Inc. (the)'s earnings presentation, Jan 23, 2007
Slide 1: Fourth Quarter and Full Year 2006 Earnings Conference Call
Exhibit 99.2 The PNC Financial Services Group, Inc. Fourth Quarter and Full Year 2006 Earnings Conference Call January 23, 2007
Slide 2: 2006 Highlights
2006 Highlights Record net income for the year PNC recognized a $1.6 billion increase in capital resulting from the BlackRock/MLIM transaction Strong client activity – business segment earnings* grew 9% Balance sheet well positioned for this interest rate environment Overall asset quality remained v
Slide 3: Income Statement
Income Statement Fourth Quarter Third Quarter Fourth Quarter $ millions (except per share data) 2006 2006 2005 Net interest income * $571 $574 $568 Noninterest income 969 2,943 1,154 Total revenue* 1,540 3,517 1,722 Noninterest expense 969 1,167 1,127 Pretax, pre-provision income 571 2,350 595 Provi
Slide 4: Income Statement - As Adjusted
Income Statement - As Adjusted As Adjusted** Fourth Quarter Third Quarter Fourth Quarter $ millions (except per share data) 2006 2006 2005 Net interest income * $571 $571 $563 Noninterest income 979 832 837 Total revenue* 1,550 1,403 1,400 Noninterest expense 969 872 870 Pretax, pre-provision income
Slide 5: Balance Sheet Highlights - Fourth Quarter 2006
Balance Sheet Highlights - Fourth Quarter 2006 % Change vs. Fourth Quarter Third Quarter Fourth Quarter Reported Reported Reported Average balances, $ billions 2006 2006 2005 Loans $49.0 (3)% N/M Securities $21.2 (2)% 2% Total interest-earning assets $78.6 N/M 3% Total assets $99.0 4% 8% Noninterest
Slide 6: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-looking stat
Slide 7: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) • 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
Slide 8: Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued) • The integration of Mercantile’s business and operations with those of PNC, which will include conversion of Mercantile’s different systems and procedures, may take longer than anticipated, may be more costly than anticipated, a
Slide 9: Additional Information About The PNC/Mercantile Transaction
Additional Information About The PNC/Mercantile Transaction The PNC Financial Services Group, Inc. and Mercantile Bankshares Corporation have filed a proxy statement/prospectus and other relevant documents concerning the merger with the United States Securities and Exchange Commission (the “SEC”). W
Slide 10: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Business Earnings Summary Year Ended December 31 Earnings (Loss) $ millions 2006 2005 Growth Retail Banking $765 $682 12% Corporate & Institutional Banking 463 480 (4)% BlackRock (a)(b)(c) 187 152 23% PFPC 124 104 19% Total business segment earnings 1,539 1,41
Slide 11: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Fourth – Quarter 2006 Reported, Taxable- Taxable- As Adjusted, GAAP Equivalent Equivalent TE $ millions (except per share data) Basis Adjustment Basis Adjustments * Basis Net interest income $566 $5 $571 - $571 Noninterest income 969 - 969 $10
Slide 12: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Third – Quarter 2006 Reported, Taxable- Taxable- Significant BlackRock GAAP Equivalent Equivalent Item Deconsolidation As Adjusted, $ millions (except per share data) Basis Adjustment Basis Adjustments * & Equity Method TE Basis Net interest i
Slide 13: Non-GAAP to GAAP Reconcilement
Non-GAAP to GAAP Reconcilement Appendix Income Statement Fourth – Quarter 2005 Reported, Taxable- Taxable- BlackRock As Adjusted GAAP Equivalent Equivalent Deconsolidation For BlackRock, $ millions (except per share data) Basis Adjustment Basis & Equity Method TE Basis Net interest income $555 $13 $
Slide 14: Peer Group of Super-Regional Banks
Peer Group of Super-Regional Banks Appendix Ticker BB&T Corporation BBT Comerica CMA Fifth Third Bancorp FITB KeyCorp KEY National City Corporation NCC The PNC Financial Services Group, Inc. PNC Regions Financial RF SunTrust Banks, Inc. STI U.S. Bancorp USB Wachovia Corporation WB Wells Fargo & Comp
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