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We will also provide details of the reconciliations to GAAP of non-GAAP financial measures we may discuss. These details may be found in today's conference call, press release and our financial supplement, in our presentation slides and appendix and in various SEC reports and other documents. These are also all available on our corporate website at pnc.com in the Investors Relations section.And I'd now like to turn the call over to Jim Rohr. James Rohr Thank you, Bill. Good morning, and thank you for joining us. This was an excellent quarter for PNC from both a financial and a strategic standpoint. We have executed our business plan in the first half of this year and are well positioned to deliver solid results in the second half. I will say more about the financial results in a moment. But first, I would like to highlight some of our strategic accomplishments. The first one. We completed the final wave of National City customer and branch conversions last month. I believe this process was handled as well as any large client conversion that's been done in the banking industry. In total, we brought six million retail and business clients in nine states onto PNC's technology platform. We completed the process six months ahead of our original schedule. Client retention was within our expectations, and we've already significantly exceeded our original cost-savings target. Second item. Sales across our franchise were 126% on plan through June 30. On a linked-quarter basis, total sales were up 6%. In our Western markets, sales were 113% on plan through the first half, and up 15% linked quarter. I believe that this reflects our customer focus throughout the conversion process. And what I'm very pleased about is the rate of customer penetration in our corporate bank. Across the company, cross-selling is at 132% on plan year-to-date. In the Western markets, it's 110% on plan through six months. While not as robust as the levels in our Eastern markets, this reflects both the tremendous progress we're making and the opportunities for growth. With the conversion behind us, we are now investing in people to help us serve our customers in these markets, and we're implementing the PNC business model across the entire franchise.
Now another strategic highlight this quarter was arranging for the sales of residential mortgage loans and brokered home equity loans in our Distressed Assets segment. While the income statement effect of this sale is recorded in the second quarter, the balance sheet effect will take place in the third quarter as those sales close. It's important to note, the majority of these loans are seriously delinquent and they represent approximately $2 billion in customer balances. With the market for these loans opening up, we see this as an opportunity to reduce risk with reasonable valuations. And Rick will discuss this in more detail in a moment.Finally, the regulatory reform legislation is now in place. We support many of the changes, such as the creation of a systemic risk regulator and the extension of consumer protection laws to nonbank financial companies. We believe core elements of the bill should contribute to a stronger and more secure financial system over time. There are a variety of issues in the legislation that we are currently studying. There is much more to come in the hundreds of regulations expected over the next few years. One thing is clear. The reform bill will impact revenue and increase the cost of doing business. However, we believe that the expected changes will be manageable for PNC and will have a smaller impact on us than the Wall Street banks. Now another important topic is capital, and we are well positioned from a capital standpoint. We closed the sale of Global Investment Servicing on July 1, which added to our capital. As of June 30, our estimated Tier 1 ratio was 10.8% and pro forma as of July 1, after the sale of GIS, Tier 1 would be 11.4%. The Tier 1 common ratio was 8.4% at the end of the quarter estimated, and reflecting the sale of GIS to pro forma as of July 1 is 9% for Tier 1 common. Since we closed on the National City acquisition, we have nearly doubled our Tier 1 common capital ratio when the impact of the GIS sale is included. Read the rest of this transcript for free on seekingalpha.com