PNC Bank 2014 Annual Report Download - page 2

The PNC Financial Services Group, Inc.
Financial Highlights
Year ended December 31
In millions, except per share data
Financial Results 2014 2013 2012
Net interest income $ 8,525 $ 9,147 $ 9,640
Noninterest income 6,850 6,865 5,872
Total revenue 15,375 16,012 15,512
Noninterest expense 9,488 9,681 10,486
Pretax, pre-provision earnings (non-GAAP) 5,887 6,331 5,026
Provision for credit losses 273 643 987
Net income $ 4,207 $ 4,212 $ 2,994
Diluted earnings per common share $ 7.30 $ 7.36 $ 5.28
Cash dividends declared per common share $ 1.88 $ 1.72 $ 1.55
Balance Sheet At year end 2014 2013 2012
Assets $ 345,072 $ 320,192 $ 305,029
Loans $ 204,817 $ 195,613 $ 185,856
Deposits $ 232,234 $ 220,931 $ 213,142
Shareholders’ equity $ 44,551 $ 42,334 $ 38,948
Common shares outstanding 523 533 528
Closing price per common share $ 91.23 $ 77.58 $ 58.31
Book value per common share $ 77.61 $ 72.07 $ 66.95
Tangible book value per common share (non-GAAP) $ 59.88 $ 54.57 $ 49.07
Selected Ratios 2014 2013 2012
Return on average common shareholders’ equity 9.91% 10.85% 8.29%
Return on average assets 1.28% 1.38% 1.02%
Net interest margin 3.08% 3.57% 3.94%
Noninterest income to total revenue 45% 43% 38%
Transitional Basel III common equity
Tier 1 capital ratio 10.9%
Pro forma fully phased-in Basel III common
equity Tier 1 capital ratio 10.0% 9.4% 7.5%
Basel I Tier 1 common capital ratio 10.5% 9.6%
PNC’s fee income consists of these categories within noninterest income: asset management, consumer services, corporate services, residential
mortgage and service charges on deposits. The fee income portion of noninterest income totaled $5.46 billion, $5.27 billion and $4.33 billion for 2014,
2013 and 2012, respectively. The residential mortgage income category was $.62 billion, $.87 billion and $.28 billion for 2014, 2013 and 2012, respectively.
PNC believes that pretax, pre-provision earnings serves as a useful tool to help evaluate the ability to provide for credit costs through operations.
PNC believes that tangible book value per common share serves as a useful tool to help evaluate the strength and discipline of a company’s
capital management strategies and as an additional, conservative measure of total company value. See the Statistical Information (Unaudited)
section included in Item 8 of the accompanying 2014 Form 10-K for additional information.
Transitional Basel III common equity Tier 1 capital ratio was calculated using the regulatory capital methodology applicable to PNC during
2014. The pro forma fully phased-in Basel III common equity Tier 1 capital ratios as of December 31, 2014 and 2013 were calculated under the
standardized approach, and the December 31, 2012 ratio was calculated under the advanced approaches. Effective January 1, 2014, the Basel I
Tier 1 common capital ratio no longer applies to PNC except for stress testing purposes. See the capital ratios discussion in the Supervision and
Regulation section of Item 1 and in the Consolidated Balance Sheet Review section in Item 7 and see Statistical Information (Unaudited) in Item 8
of the accompanying 2014 Form 10-K for additional information.
These Financial Highlights should be read in conjunction with disclosures in the accompanying 2014 Form 10-K including the audited fi nancial
statements. Certain prior period amounts have been updated for adoption of ASU 2014-01. Certain prior period amounts have been reclassifi ed to
conform with the current period presentation.