The PNC Financial Services Group, Inc. (PNC) 8-K Citigroup 2013 Financial Services Conference

The PNC Financial Services Group, Inc.

Citigroup 2013 Financial Services Conference

March 5, 2013

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

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,

such

as

provisions

for

residential

mortgage

repurchase

obligations,

gains

on

sales

of

a

portion

of

our

VISA

shares,

non-cash

charges

related

to

redemptions

of

trust

preferred

securities,

expenses

for

residential

mortgage

foreclosure-related

matters,

goodwill

impairment

charge

and

integration

costs.

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.

Where

applicable,

we

provide

GAAP

reconciliations

for

such

additional

information,

including

in

the

slides,

the

Appendix

and/or

other

slides

and

materials

on

our

corporate

website

at

www.pnc.com/investorevents

and

in

our

SEC

filings

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.”

3

2013 Key Priorities

(1)

Grow customers and improve profitability

Continue to grow deposits, loans and revenues

Deliver positive operating leverage

–

Increase

ratio

of

fee

income

to

total

revenue

–

Decrease

expenses

by

mid-single

digits,

core

expenses

(2)

flat

Maintain strong risk discipline

Well-positioned

to

achieve

Basel

III

goal

(3)

(1)

Refer

to

Cautionary

Statement

in

the

Appendix,

including

economic

and

other

assumptions.

Does

not

take

into

account

the

impact

of

potential

legal

and

regulatory

contingencies.

(2)

Core

expenses

do

not

include

any

integration

costs

or

noncash

charges

for

unamortized

discounts

related

to

redemption

of

hybrid

capital

securities.

(3)

Basel

III

Tier

1

common

capital

ratio

goal

is

to

be

within

the

range

of

8.0-8.5%

by

year-end

2013without

the

benefit

of

phase-ins,

based

on

our

current

understanding

of

Basel

III

NPRs

and

estimates

of

Basel

II

(with

proposed

modifications)

risk-weighted

assets.

Includes

application

of

Basel

II.5.

Subject

to

further

regulatory

clarity

and

development,

validation

and

regulatory

approval

of

Basel

models.

4

Improve Profitability of Growing Customer Base

(1)

Net

new

organic

checking

relationship

growth

refers

to

new

consumer

and

small

business

accounts

exclusive

of

accounts

acquired

through

acquisition.

(2)

A

Corporate

Banking

primary

client

is

defined

as

a

corporate

banking

relationship

with

annual

revenue

generation

of

$50,000

or

more

or,

within

corporate

banking,

a

commercial

banking

client

relationship

with

annual

revenue

generation

of

$10,000

or

more.

(3)

An

Asset

Management

Group

primary

client

is

defined

as

a

client

relationship

with

annual

revenue

generation

of

$10,000

or

more.

(4)

A

mortgage

with

a

borrower

as

part

of

a

residential

real

estate

purchase

transaction.

Asset Management Group

Residential Mortgage

Retail Banking

Corporate Banking

5

2011-2012 revenue growth

2011-2012 net loan growth

2011-2012 deposit growth

Peer

Source:

SNL

Database.

Deposit

and

net

loan

growth

based

on

balances

at

December

31    ,

2011

and

2012,

respectively.

Revenue

growth

based

on

change

for

2012

vs.

2011.

Data

reflects

acquisitions.

Continue to Grow Deposits, Loans and Revenues

st

6

(1) Noninterest income and total revenue each adjusted for impact of residential mortgage repurchase provision and gain on sale of VISA

shares, as applicable. Further information provided in the Appendix.

Retail Banking

Deepen cross-sell and share of wallet

Broaden sources of revenue –

Investment and

Retirement opportunity (Consumer Services)

Corporate & Institutional Banking

Pursue cross-sell opportunities with clients

added in last three years

Leverage new and underpenetrated markets

as well as targeted verticals   

Asset Management Group

Distribution build out in newly acquired

markets

Capture more investable assets in

underpenetrated client segments

Residential Mortgage Banking

Drive higher purchase origination volume

Deeper market penetration and cross-sell

Strategies to Grow Fee Income

7

Strategic Growth Priorities

Drive growth in newly acquired and underpenetrated

markets

Capture more investable assets

Build a stronger Residential Mortgage Banking

business

Redefine the Retail Banking business

8

Total Corporate Banking and AMG sales

Total Corporate Banking and AMG cross-sales

Corporate Banking is a business within Corporate & Institutional. AMG refers to Asset Management Group. 

Highlights

Building momentum in Midwest

markets

Regional President model key to

success in newly acquired markets

Southeast revenue opportunities

–

Fully

staffed

–

Sales

teams

now

in

place

–

Winning

new

clients

Significant cross-sell opportunities

–

Treasury

Management

–

Capital

Markets

–

Innovative

Retail

products

Deeper Penetration and Cross-sell in Newly Acquired

Markets 

9

Asset Management Group –

Build on Strong Business

Model

A top 10 U.S. bank held wealth

manager

Approaching $1 billion in annual

revenues

Referral sales contributed 36% of

total sales in 2012

Investment and Retirement growth

opportunity

–

Capturing

more

investable

assets

in

underpenetrated

client

segments

–

Southeast

market

represents

$800B

(3)

potential

high

net

worth

investable

assets

(1)

Referral

sales

are

new

sales

from

clients

referred

to

AMG

by

Retail

Banking

or

Corporate

and

Institutional

Banking.

(2)

Adjusted

AUM

netflows

defined

as

total

netflows

after

adjustment

for

cyclical

client

activities.

(3)

Represents

the

value

of

investments

by

individuals

in

the

states

represented

by

the

RBC

Bank

(USA)

acquisition

even

where

it

overlaps

with

prior

PNC

states

such

as

Florida.

Source:

Data

Analytics

Research

using

IXI

household

data.

(1)

Highlights

10

Building a Stronger Residential Mortgage Banking

Business

PNC’s advantages in Residential

Mortgage Banking

–

Leverage

balance

sheet

strength

–

Retail

channels

only

–

National

distribution

–

High

customer

satisfaction

–

Integrated

with

PNC

Bank

Origination priorities

–

Purchase

(1)

business

growth

–

Strong

credit

quality

Servicing priorities

–

Full

compliance

and

moderate

risk

philosophy

–

Optimize

servicing

portfolio

size

Growing the right way

Highlights

Residential Mortgage Banking Originations

(1)

Purchase

is

defined

as

a

mortgage

with

a

borrower

as

part

of

a

residential

real

estate

purchase

transaction.

11

Migrate from dense branch to technology-

centric branch network presence to drive

efficient growth

Technology enabled convenience and

experience

Customer data insight

Drive more efficient growth and share of

profitable customer relationships

Smaller segment

“stores”

& kiosks

in branches

Mobile stores,

street teams and

educational

events

Remote sales

force specialists

Extensive full

function ATM network

Digital Call Center

-

Chat

-

Social Media

Digital Marketing

Mobile Deposit

Deposit Scanner

Serving Customers Tomorrow -

Redefining the Retail

Branch Network

12

Managing Expenses -

2013 Expense Opportunities

(1)

Lower service

delivery costs

Branch

consolidation

Staffing and

back office

efficiencies

Enhance

staffing

model

Review loan

origination

process

Online

investment

platform

and

centralized

services

Lower

mortgage

foreclosure

compliance

costs

Staffing

efficiencies

Continued

focus on

consulting

expense

reductions

(1)

Refer

to

Cautionary

Statement

in

the

Appendix,

including

economic

and

other

assumptions.

Does

not

take

into

account

the

impact

of

potential

legal

and

regulatory

contingencies.

13

Key Takeaways

(1)

Strategic growth priorities to create long-term value

Managing expenses –

Continuous Improvement

savings to fund future investment capacity

Positioned in 2013 to deliver improved earnings

quality and positive operating leverage

Strong capital position to provide greater flexibility

in 2014

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

(1) Refer to Cautionary Statement in the Appendix, including economic and other assumptions. Does not take into account the impact of

potential legal and regulatory contingencies.

14

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

Private

Securities

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.

•Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following:

o

Changes in interest rates and valuations in debt, equity and other financial markets.

o

Disruptions in the liquidity and other functioning of U.S. and global financial markets.

o

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.

o

Actions by Federal Reserve, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates.

o

Changes in customers’, suppliers’

and other counterparties’

performance and creditworthiness.

o

Slowing or failure of the current moderate economic expansion.

o

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.

o

Changes

in

customer

preferences

and

behavior,

whether

due

to

changing

business

and

economic

conditions,

legislative

and

regulatory

initiatives,

or

other

factors.

•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.

•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.

Appendix

15

Cautionary Statement Regarding Forward-Looking

Information (continued)

•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:

o

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.

o

Changes to regulations governing bank capital and liquidity standards, including due to the Dodd-Frank Act and to Basel-related initiatives.

o

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.

o

Results

of

the

regulatory

examination

and

supervision

process,

including

our

failure

to

satisfy

requirements

of

agreements

with

governmental

agencies.

o

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.

•Our

2012

acquisition

of

RBC

Bank

(USA)

presents

us

with

risks

and

uncertainties

related

to

the

integration

of

the

acquired

businesses

into

PNC,

including:

o

Anticipated

benefits

of

the

transaction,

including

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.

o

Our

ability

to

achieve

anticipated

results

from

this

transaction

is

dependent

also

on

the

extent

of

credit

losses

in

the

acquired

loan

portfolios

and

the

extent

of

deposit

attrition,

in

part

related

to

the

state

of

economic

and

financial

markets.

Also,

litigation

and

regulatory

and

other

governmental

investigations

that

may

be

filed

or

commenced

relating

to

the

pre-acquisition

business

and

activities

of

RBC

Bank

(USA)

could

impact

the

timing

or

realization

of

anticipated

benefits

to

PNC.

o

Integration

of

RBC

Bank

(USA)’s

business

and

operations

into

PNC

may

take

longer

than

anticipated

or

be

substantially

more

costly

than

anticipated

or

have

unanticipated

adverse

results

relating

to

RBC

Bank

(USA)’s

or

PNC’s

existing

businesses.

PNC’s

ability

to

integrate

RBC

Bank

(USA)

successfully

may

be

adversely

affected

by

the

fact

that

this

transaction

results

in

PNC

entering

several

geographic

markets

where

PNC

did

not

previously

have

any

meaningful

retail

presence.

Appendix

16

Cautionary Statement Regarding Forward-Looking

Information (continued)

•In

addition

to

the

RBC

Bank

(USA)

transaction,

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.

These

other

acquisitions

often

present

risks

and

uncertainties

analogous

to

those

presented

by

the

RBC

Bank

(USA)

transaction.

Acquisition

risks

include

those

presented

by

the

nature

of

the

business

acquired

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.

Appendix

17

Non-GAAP to GAAP Reconcilement

For the three months ended

In millions

Jun. 30, 2012

Sep. 30, 2012

Dec. 31, 2012

Total noninterest income, as reported

$1,097

$1,689

$1,645

Total revenue, as reported

$3,623

$4,088

$4,069

Adjustments:

   Provision for residential mortgage repurchase obligations

438

37

254

   Gain on sale of Visa Class B common shares

-

(137)

(130)

Total noninterest income, as adjusted

$1,535

$1,589

$1,769

Total revenue, as adjusted

$4,061

$3,988

$4,193

Total noninterest income to total revenue, as reported

30%

41%

40%

Total noninterest income to total revenue, as adjusted

38%

40%

42%

PNC believes that information adjusted for the impact of certain items may be useful to help evaluate the

impact of those items on our operations.

Appendix

18

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 & Co.

WFC