This document provides an analysis of the banking industry and a comparison of Regions Bank and PNC Bank. It discusses the characteristics of the retail banking industry, the business strategies of Regions and PNC, how they recognize earnings and accounting issues. It also analyzes the risks and profitability between the two banks by examining their loan portfolios, deposit structures, and efficiency. The document concludes by looking at future prospects, key milestones, and first quarter 2012 results for Regions which showed broad-based asset quality improvement.
The document discusses the banking industry, business strategies of Regions Bank and PNC Bank, earnings quality and accounting issues, risks and profitability, and future prospects. It analyzes the loan portfolios, geographic exposures, classified loans, and allowance for loan losses of Regions Bank and PNC Bank. It finds that both banks have decreased classified loans and improved credit quality in recent years.
1) The document discusses an online portal called 'Being Stylish' that sells merchandise used in Bollywood movies.
2) It aims to partner with film production houses and stars to source authentic merchandise and offer a share of profits.
3) The portal would sell merchandise through auctions and fixed pricing, targeting different consumer segments.
This document discusses the launch of an electronic billing platform called Zoomit. It aims to improve the financial efficiency of the billing process by bringing invoices and payments together electronically. Zoomit would allow suppliers to send invoices digitally to customers through their internet banking, integrating invoice details with payment. This has the potential to reduce costs for both suppliers and customers through straight-through processing and faster payment cycles. The launch of SEPA provides an incentive for companies to transition to this more efficient electronic billing system.
The document discusses Rabobank's mobile banking and payments subsidiary Rabo Mobiel. It provides an overview of Rabobank and Rabo Mobiel, describing their large customer base, innovation focus, and AAA credit rating. It then outlines Rabo Mobiel's product rollout strategy from 2007-2012, focusing on trials and integration with partners. Key challenges and opportunities around mobile security and payments in the Netherlands are also summarized.
KF is the union of 58 Swedish consumer co-operative societies with over 3 million members. In 2005, KF recorded a strong profit of SEK 715 million and continued to be financially strong. KF owns 42% of Coop Norden, the largest FMCG player in the Nordic region, and operates other subsidiaries that support the FMCG operations through services and real estate. KF works to develop the consumer co-operative movement and provide benefits to members.
BancoPosta and Customer Engagement - Paolo BaldrigaOpenKnowledge srl
The document discusses BancoPosta's use of social media and loyalty programs to engage customers. It provides details on BancoPosta's Sconti BancoPosta loyalty program, including its large number of cardholders and growing network of merchant partners. It also describes two case studies: a charity deal on Facebook to promote the loyalty program, and Postepay Deals, a new marketplace on Facebook dedicated to BancoPosta's prepaid customers. The document concludes by discussing key advantages of using Facebook for financial institutions and potential future scenarios for social commerce.
The document discusses the future of banking and finance in 2030, 2060, and 2100. By 2030, banks will have transitioned to digital platforms and will dominate the digital economy using fintech. By 2060, banks will provide capital through cloud-based funding and will control all production and sales. By 2100, banks will define people's life scripts and control all aspects of people's lives, effectively becoming the new government in a cashless, decentralized world.
The document discusses digital banking and omni-channel banking. It covers topics like internet banking, mobile banking, the internet of things, customer experience, content creation, data analytics, predictive analytics, CRM systems, and ensuring consistency across channels. The key aspects are using customer data and insights to improve the customer experience across online, mobile, and physical channels to provide a seamless omni-channel banking experience.
The document discusses the banking industry, business strategies of Regions Bank and PNC Bank, earnings quality and accounting issues, risks and profitability, and future prospects. It analyzes the loan portfolios, geographic exposures, classified loans, and allowance for loan losses of Regions Bank and PNC Bank. It finds that both banks have decreased classified loans and improved credit quality in recent years.
1) The document discusses an online portal called 'Being Stylish' that sells merchandise used in Bollywood movies.
2) It aims to partner with film production houses and stars to source authentic merchandise and offer a share of profits.
3) The portal would sell merchandise through auctions and fixed pricing, targeting different consumer segments.
This document discusses the launch of an electronic billing platform called Zoomit. It aims to improve the financial efficiency of the billing process by bringing invoices and payments together electronically. Zoomit would allow suppliers to send invoices digitally to customers through their internet banking, integrating invoice details with payment. This has the potential to reduce costs for both suppliers and customers through straight-through processing and faster payment cycles. The launch of SEPA provides an incentive for companies to transition to this more efficient electronic billing system.
The document discusses Rabobank's mobile banking and payments subsidiary Rabo Mobiel. It provides an overview of Rabobank and Rabo Mobiel, describing their large customer base, innovation focus, and AAA credit rating. It then outlines Rabo Mobiel's product rollout strategy from 2007-2012, focusing on trials and integration with partners. Key challenges and opportunities around mobile security and payments in the Netherlands are also summarized.
KF is the union of 58 Swedish consumer co-operative societies with over 3 million members. In 2005, KF recorded a strong profit of SEK 715 million and continued to be financially strong. KF owns 42% of Coop Norden, the largest FMCG player in the Nordic region, and operates other subsidiaries that support the FMCG operations through services and real estate. KF works to develop the consumer co-operative movement and provide benefits to members.
BancoPosta and Customer Engagement - Paolo BaldrigaOpenKnowledge srl
The document discusses BancoPosta's use of social media and loyalty programs to engage customers. It provides details on BancoPosta's Sconti BancoPosta loyalty program, including its large number of cardholders and growing network of merchant partners. It also describes two case studies: a charity deal on Facebook to promote the loyalty program, and Postepay Deals, a new marketplace on Facebook dedicated to BancoPosta's prepaid customers. The document concludes by discussing key advantages of using Facebook for financial institutions and potential future scenarios for social commerce.
The document discusses the future of banking and finance in 2030, 2060, and 2100. By 2030, banks will have transitioned to digital platforms and will dominate the digital economy using fintech. By 2060, banks will provide capital through cloud-based funding and will control all production and sales. By 2100, banks will define people's life scripts and control all aspects of people's lives, effectively becoming the new government in a cashless, decentralized world.
The document discusses digital banking and omni-channel banking. It covers topics like internet banking, mobile banking, the internet of things, customer experience, content creation, data analytics, predictive analytics, CRM systems, and ensuring consistency across channels. The key aspects are using customer data and insights to improve the customer experience across online, mobile, and physical channels to provide a seamless omni-channel banking experience.
EUCI Presentation by Andrew Chant FIT 2.0 Program July 20 2012mtingle
This document summarizes M&A activities related to Ontario's FIT programs. It discusses how FIT 1 projects are approaching their notice to proceed milestones and may face liquidated damages for delays, representing risks for buyers. It outlines opportunities in FIT 2 for aggregating microFIT projects and financing community/Aboriginal projects. The document predicts intense competition for remaining FIT contracts and uncertainty from annual price reviews, creating political risks for long-term renewable projects.
PwC: What private companies should know about emerging marketsviarocci001
This document summarizes a presentation about opportunities for Canadian private companies in emerging markets. It notes that growth prospects are weak in developed western markets but high in emerging markets. While emerging markets offer opportunities for growth, they also pose significant political risks, cultural differences, and barriers to deals. Currently, most Canadian private company activity in emerging markets involves large public firms operating in a narrow range of industries, and companies often go it alone rather than partnering with others. The presentation argues companies face a choice to either stay in stagnant western markets or go to high-growth emerging markets.
Netflix has experienced strong growth since 1998 by expanding its DVD rental business and becoming a leader in online streaming. It now has over 20 million subscribers across various streaming platforms and devices. While it faces competition from other streaming services, Netflix maintains healthy margins through managing costs relative to sales and subscriber growth. Its financial position remains strong with high cash balances, moderate debt levels, and strong cash flows to support continued investment in expanding its streaming library and technology. Sustaining its innovation, brand reputation for quality, and cost management will be keys to Netflix's ongoing success.
Bank of America reported first quarter 2005 results with key highlights including a 21% increase in diluted EPS compared to fourth quarter 2004. Revenue was up 2% from the previous quarter driven by strength in trading and mortgage banking offsetting seasonal declines in consumer business. Credit quality continued to improve across both consumer and commercial portfolios although credit card losses rose due to portfolio growth and minimum payment changes. Overall, the results demonstrated continued momentum in the company's consumer and commercial businesses.
The document discusses Paraná Banco's consolidated financial statements and pro forma statements for 1Q07. It notes that the statements were prepared according to Brazilian corporate law and regulatory standards. The document also contains a disclaimer that forward-looking statements are based on management expectations and are not guarantees of future performance.
(1) First Horizon National Corporation reported a net loss of $35 million in Q3 2009, an improvement from a $105 million net loss in Q2 2009. (2) Noninterest income increased 7% quarter-over-quarter due to debt repurchase gains, while noninterest expense decreased 13% due to lower restructuring charges. (3) The provision for loan losses decreased 29% from $260 million to $185 million as credit quality stabilized.
Global Water Investment Conference June 20, 2012BSTRINGE
The name Xylem is derived from classical Greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all -- that which occurs in nature
The document discusses Georgia's service sector and its opportunities for investment. Some key points:
- Services account for 43% of Georgia's GDP and the sector has received major foreign direct investment inflows of $500 million in 2011, with financial services being a leading sub-sector.
- Retail/wholesale trade represents 40% of service sector GDP and has seen strong FDI growth. Healthcare/social work FDI inflows have also grown substantially in recent years.
- Georgia presents opportunities to capitalize on investment in financial services/headquarters and developing as a regional retail hub.
Bank of America Chief Financial Officer Al de Molina presented at the Credit Suisse Financial Services Conference on February 10, 2006. In his presentation, he discussed Bank of America's business mix, 2006 earnings outlook, leadership in the consumer and small business market, and efforts to diversify distribution channels and reduce costs. He projected 2006 revenue growth at the low end of the company's 6-9% long-term target range.
Camerjam mobile marketing finance masterclass millenial mediaJames Cameron
This document discusses the mobile advertising landscape and provides insights for financial services companies. It shows that the finance industry's mobile ad spending grew 36% from 2010 to 2011 and that finance advertisers focus on actions like placing calls and getting users to enroll or subscribe more so than other industries. The conclusions recommend that finance companies advertise across all stages of the customer funnel, optimize their mobile sites for mobile users, clearly define metrics, reach all devices, and integrate mobile ads with other media.
Global Corporate and Investment Banking President Gene Taylor presented on the division's strategy for growth between 2006-2011. The goals are to increase revenues by $10 billion and earnings by $3 billion through deepening client relationships, increasing market share internationally, and strategically deploying capital. Global Investment Banking Head Brian Brille then discussed the strategic themes of integrated delivery of Bank of America's capabilities, capturing largest fee pool opportunities including becoming a top 3 investment bank in the US, and growing the international presence including becoming a top 10 investment bank in Europe.
The document summarizes BR Properties' 4Q12 and full year 2012 financial highlights. Some key points:
- 4Q12 net revenues were R$200.7 million, up 122% year-over-year. Full year 2012 net revenues reached R$630.8 million.
- 4Q12 adjusted EBITDA was R$176.1 million, up 117% year-over-year, with a margin of 88%. Full year 2012 adjusted EBITDA was R$568.8 million with a margin of 90%.
- The portfolio was appraised at R$13.84 billion at the end of 4Q12, up 20% from 2011. The average capitalization
4 q12 br properties earnings release presentation - final (1)brproperties
- BR Properties reported strong financial results in 4Q12 and full year 2012, with net revenues increasing 122% and 84% respectively.
- Adjusted EBITDA grew 117% in 4Q12 and 82% for the full year, while net income was up 160% and 266% due to property appraisals.
- The company acquired one property and delivered certificates of occupancy for two others, while prepaying debt and raising additional capital.
This document discusses Indonesia's transition from voice to data services, and the growth of internet and mobile connectivity from 2000-present. It notes that while SIM penetration reached over 120% in 2011, unique subscriber penetration was only around 60% due to multiple SIM ownership. It also summarizes that voice revenue growth is tapering as the market matures, requiring new sources of revenue from non-voice data services. The document highlights Indonesia's progress in broadband and mobile data speeds compared to other Asian countries, and forecasts strong growth in mobile internet and commerce through 2016, though challenges around payments and infrastructure remain.
Microfinance as an asset class and related case studiesIFMR
Microfinance has grown significantly but was impacted by the financial crisis, slowing growth. It has the potential to become a new asset class but lacks liquidity and track record. IFC has supported the industry's development through investments, partnerships, and helping MFIs access capital markets. Case studies show how Compartamos issued local bonds in Mexico and an Indian securitization pooled loans from multiple small MFIs.
Itaú corretora meeting with buy-side analysts on accounting for the sector ...Gafisa RI !
The document discusses key accounting practices used by Gafisa, a Brazilian real estate company. It explains that Gafisa uses the percentage of completion method to recognize revenues over time as construction progresses. It also uses special purpose entities (SPEs) for real estate investments to address third party interests, construction financing requirements, and tax/accounting matters. The legal structure involves Gafisa holding ownership stakes in multiple SPEs, which in turn hold ownership positions in joint venture projects with other real estate developers.
Bite Size - October 2012 Quarterly M&A activity in the food and beverage sectorGrant Thornton
No 58%
opportunities in the sector.
Maybe/too early to say 25%
Looking ahead to 2013, the key questions are how
long consumer caution will last, whether input costs
Q3: How do you see your company's growth prospects
over the next 12 months?
stabilise, whether retailers continue to demand lower
prices and whether the economy pulls out of recession.
Positive 31%
For those businesses that can innovate, consolidate
Flat 42%
supply chains, invest in brands and operate efficiently
Negative 27%
the prospects remain good. For others the challenges
will continue to be severe.
The document provides an overview of Bank of America's Global Business & Financial Services division. It summarizes several key business lines including Middle Market Banking, Business Banking, Commercial Real Estate Banking, and others. For each business line, it provides revenue, net income, loans, deposits and other metrics for 2004. It also outlines the division's integrated operating model and global footprint.
The document summarizes the performance of Global Banking and Markets in the first half of 2008. Key points include:
- Global Banking and Markets contributed 26% of the group's pre-tax profits despite challenging market conditions.
- Strength in emerging markets like Asia Pacific and Latin America helped offset losses elsewhere.
- Writedowns were taken on subprime, credit, and leveraged loan exposures totaling $3.9 billion.
- Two of the group's structured investment vehicles, Cullinan and Asscher, had their assets transferred or sold into three securities investment conduits to provide more stable funding.
EUCI Presentation by Andrew Chant FIT 2.0 Program July 20 2012mtingle
This document summarizes M&A activities related to Ontario's FIT programs. It discusses how FIT 1 projects are approaching their notice to proceed milestones and may face liquidated damages for delays, representing risks for buyers. It outlines opportunities in FIT 2 for aggregating microFIT projects and financing community/Aboriginal projects. The document predicts intense competition for remaining FIT contracts and uncertainty from annual price reviews, creating political risks for long-term renewable projects.
PwC: What private companies should know about emerging marketsviarocci001
This document summarizes a presentation about opportunities for Canadian private companies in emerging markets. It notes that growth prospects are weak in developed western markets but high in emerging markets. While emerging markets offer opportunities for growth, they also pose significant political risks, cultural differences, and barriers to deals. Currently, most Canadian private company activity in emerging markets involves large public firms operating in a narrow range of industries, and companies often go it alone rather than partnering with others. The presentation argues companies face a choice to either stay in stagnant western markets or go to high-growth emerging markets.
Netflix has experienced strong growth since 1998 by expanding its DVD rental business and becoming a leader in online streaming. It now has over 20 million subscribers across various streaming platforms and devices. While it faces competition from other streaming services, Netflix maintains healthy margins through managing costs relative to sales and subscriber growth. Its financial position remains strong with high cash balances, moderate debt levels, and strong cash flows to support continued investment in expanding its streaming library and technology. Sustaining its innovation, brand reputation for quality, and cost management will be keys to Netflix's ongoing success.
Bank of America reported first quarter 2005 results with key highlights including a 21% increase in diluted EPS compared to fourth quarter 2004. Revenue was up 2% from the previous quarter driven by strength in trading and mortgage banking offsetting seasonal declines in consumer business. Credit quality continued to improve across both consumer and commercial portfolios although credit card losses rose due to portfolio growth and minimum payment changes. Overall, the results demonstrated continued momentum in the company's consumer and commercial businesses.
The document discusses Paraná Banco's consolidated financial statements and pro forma statements for 1Q07. It notes that the statements were prepared according to Brazilian corporate law and regulatory standards. The document also contains a disclaimer that forward-looking statements are based on management expectations and are not guarantees of future performance.
(1) First Horizon National Corporation reported a net loss of $35 million in Q3 2009, an improvement from a $105 million net loss in Q2 2009. (2) Noninterest income increased 7% quarter-over-quarter due to debt repurchase gains, while noninterest expense decreased 13% due to lower restructuring charges. (3) The provision for loan losses decreased 29% from $260 million to $185 million as credit quality stabilized.
Global Water Investment Conference June 20, 2012BSTRINGE
The name Xylem is derived from classical Greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all -- that which occurs in nature
The document discusses Georgia's service sector and its opportunities for investment. Some key points:
- Services account for 43% of Georgia's GDP and the sector has received major foreign direct investment inflows of $500 million in 2011, with financial services being a leading sub-sector.
- Retail/wholesale trade represents 40% of service sector GDP and has seen strong FDI growth. Healthcare/social work FDI inflows have also grown substantially in recent years.
- Georgia presents opportunities to capitalize on investment in financial services/headquarters and developing as a regional retail hub.
Bank of America Chief Financial Officer Al de Molina presented at the Credit Suisse Financial Services Conference on February 10, 2006. In his presentation, he discussed Bank of America's business mix, 2006 earnings outlook, leadership in the consumer and small business market, and efforts to diversify distribution channels and reduce costs. He projected 2006 revenue growth at the low end of the company's 6-9% long-term target range.
Camerjam mobile marketing finance masterclass millenial mediaJames Cameron
This document discusses the mobile advertising landscape and provides insights for financial services companies. It shows that the finance industry's mobile ad spending grew 36% from 2010 to 2011 and that finance advertisers focus on actions like placing calls and getting users to enroll or subscribe more so than other industries. The conclusions recommend that finance companies advertise across all stages of the customer funnel, optimize their mobile sites for mobile users, clearly define metrics, reach all devices, and integrate mobile ads with other media.
Global Corporate and Investment Banking President Gene Taylor presented on the division's strategy for growth between 2006-2011. The goals are to increase revenues by $10 billion and earnings by $3 billion through deepening client relationships, increasing market share internationally, and strategically deploying capital. Global Investment Banking Head Brian Brille then discussed the strategic themes of integrated delivery of Bank of America's capabilities, capturing largest fee pool opportunities including becoming a top 3 investment bank in the US, and growing the international presence including becoming a top 10 investment bank in Europe.
The document summarizes BR Properties' 4Q12 and full year 2012 financial highlights. Some key points:
- 4Q12 net revenues were R$200.7 million, up 122% year-over-year. Full year 2012 net revenues reached R$630.8 million.
- 4Q12 adjusted EBITDA was R$176.1 million, up 117% year-over-year, with a margin of 88%. Full year 2012 adjusted EBITDA was R$568.8 million with a margin of 90%.
- The portfolio was appraised at R$13.84 billion at the end of 4Q12, up 20% from 2011. The average capitalization
4 q12 br properties earnings release presentation - final (1)brproperties
- BR Properties reported strong financial results in 4Q12 and full year 2012, with net revenues increasing 122% and 84% respectively.
- Adjusted EBITDA grew 117% in 4Q12 and 82% for the full year, while net income was up 160% and 266% due to property appraisals.
- The company acquired one property and delivered certificates of occupancy for two others, while prepaying debt and raising additional capital.
This document discusses Indonesia's transition from voice to data services, and the growth of internet and mobile connectivity from 2000-present. It notes that while SIM penetration reached over 120% in 2011, unique subscriber penetration was only around 60% due to multiple SIM ownership. It also summarizes that voice revenue growth is tapering as the market matures, requiring new sources of revenue from non-voice data services. The document highlights Indonesia's progress in broadband and mobile data speeds compared to other Asian countries, and forecasts strong growth in mobile internet and commerce through 2016, though challenges around payments and infrastructure remain.
Microfinance as an asset class and related case studiesIFMR
Microfinance has grown significantly but was impacted by the financial crisis, slowing growth. It has the potential to become a new asset class but lacks liquidity and track record. IFC has supported the industry's development through investments, partnerships, and helping MFIs access capital markets. Case studies show how Compartamos issued local bonds in Mexico and an Indian securitization pooled loans from multiple small MFIs.
Itaú corretora meeting with buy-side analysts on accounting for the sector ...Gafisa RI !
The document discusses key accounting practices used by Gafisa, a Brazilian real estate company. It explains that Gafisa uses the percentage of completion method to recognize revenues over time as construction progresses. It also uses special purpose entities (SPEs) for real estate investments to address third party interests, construction financing requirements, and tax/accounting matters. The legal structure involves Gafisa holding ownership stakes in multiple SPEs, which in turn hold ownership positions in joint venture projects with other real estate developers.
Bite Size - October 2012 Quarterly M&A activity in the food and beverage sectorGrant Thornton
No 58%
opportunities in the sector.
Maybe/too early to say 25%
Looking ahead to 2013, the key questions are how
long consumer caution will last, whether input costs
Q3: How do you see your company's growth prospects
over the next 12 months?
stabilise, whether retailers continue to demand lower
prices and whether the economy pulls out of recession.
Positive 31%
For those businesses that can innovate, consolidate
Flat 42%
supply chains, invest in brands and operate efficiently
Negative 27%
the prospects remain good. For others the challenges
will continue to be severe.
The document provides an overview of Bank of America's Global Business & Financial Services division. It summarizes several key business lines including Middle Market Banking, Business Banking, Commercial Real Estate Banking, and others. For each business line, it provides revenue, net income, loans, deposits and other metrics for 2004. It also outlines the division's integrated operating model and global footprint.
The document summarizes the performance of Global Banking and Markets in the first half of 2008. Key points include:
- Global Banking and Markets contributed 26% of the group's pre-tax profits despite challenging market conditions.
- Strength in emerging markets like Asia Pacific and Latin America helped offset losses elsewhere.
- Writedowns were taken on subprime, credit, and leveraged loan exposures totaling $3.9 billion.
- Two of the group's structured investment vehicles, Cullinan and Asscher, had their assets transferred or sold into three securities investment conduits to provide more stable funding.
1. Banking Industry
Financial Analysis
Nashville, April 5, 2012
Steven Guan, Alex Hardy Charlene Li, Martin Williams
2. Agenda
• Banking Industry Characteristics
• Business Strategy of Regions Bank and PNC Bank
• Earnings Quality and Accounting Issues
• Risks and Profitability
• Future Prospects
3. Banking Industry Characteristics
Retail Banking Industry
SUPPLIERS: High CUSTOMERS: High
Fed Interest Rate Numerous Banks
BARRIERS: Low SUBSTITUTES: High
Internet technology RIVALRY: Investment Vehicles
Competitive
Market
4. Agenda
• Banking Industry Characteristics
• Business Strategy of Regions Bank and PNC Bank
• Earnings Quality and Accounting Issues
• Risks and Profitability
• Future Prospects
5. Business Strategy
Business Strategy of Regions and PNC
Bank Strategy Regions PNC
Traditional Growth Innovation
Hold Southeast Market "Checking
Growth Share Relationships"
Risk Profile Conservative Moderate
Cost Control Lower "Cost of Deposit" Virtual Customers
Customer
Acqusition High Growth Cities Invest in Technology
6. Agenda
• Banking Industry Characteristics
• Business Strategy of Regions Bank and PNC Bank
• Earnings Quality and Accounting Issues
• Risks and Profitability
• Future Prospects
7. Earnings Quality and Accounting Issues
Income and Expense Recognition
• Income
- Interest income: revenue earned on interest-earnings asset like
loans and investment securities
- Non-interest income :fees and commissions from continuing
operations other than issuing loans
• Expense
- Interest expense: expense paid on interest-bearing liabilities,
principally deposits and borrowings
- Noninterest expense: salaries and employee benefits, occupancy
cost and FDIC insurance
8. Earnings Quality and Accounting Issues
• Provision for Loan Losses
- reflect management’s judgment of probable credit losses
inherent in the portfolio, and will adversely affect the bank’s income
- Regions and PNC earnings growth is driven by the huge decrease in provisions
for loan losses rather than core business operations growth
9. Earnings Quality and Accounting Issues
• Discontinued Operations:
- Regions bank agreed to sell its non-banking subsidiary Morgan
Keegan to Raymond James Financial, resulting in a non-cash goodwill
impairment recorded in the loss from discontinued operations in 2011,
while there was no major disposition for PNC in 2011
- One-time charge and should be eliminated
10. Agenda
• Banking Industry Characteristics
• Business Strategy of Regions Bank and PNC Bank
• Earnings Quality and Accounting Issues
• Risks and Profitability
• Future Prospects
11. Risks &Profitability-Loans
• Loan can by grouped into Commercial, Investor Real Estate
and Consumer Loans
• Commercial Loans:
-loans to normal business operations to finance working
capital needs, equipment purchases or other expansion projects
- collection risk in this portfolio is driven by the cash flow
from customers’ business operations
• Investor Real Estate Loans:
-credit to real estate developers or investors where repayment
is dependent on the sale of real estate or income generated from
the real estate collateral
• Consumer Loans:
-residential first mortgage, home equity, indirect, consumer
credit card, and other consumer loans
-sensitive to unemployment and other key consumer
economic measures
12. Risks &Profitability-Loans
• Regions 2011 Regions Loan Composition
Regions Loan by Type 2011 and 2010
40,000 Total
Total
Consumer
Commercial
35,000 40%
46%
30,000
25,000 Total
Investor
20,000 2011 Real Estate
14%
15,000 2010
10,000
2010 Regions Loan Composition
5,000
-
Total Commercial Total Investor real estate Total Consumer
Total Total
Consumer Commercial
40% 43%
Total
Investor
Real Estate
17%
13. Risks &Profitability-Loans
• PNC 2011 PNC Loan Composition
PNC Loan by Type for 2011 and 2010
80,000
Total Total
Consumer Commercial
70,000
45% 41%
60,000
50,000 Total
Investor
40,000 2011 Real Estate
14%
30,000 2010
20,000
2010 PNC Loan Composition
10,000
-
Total Commercial Total Investor real estate Total Consumer
Total Total
Consumer Commercial
47% 37%
Total
Investor Real
Estate
16%
14. Risks &Profitability-Loans
• Loans by Geographic
- Regions: Alabama, Florida, Tennessee, Mississippi and Georgia
- the value of real estate in the Southeastern United States in
particular declined significantly more than real estate values in the
United States as a whole
- PNC: Illinois, Michigan, District of Columbia and Pennsylvania
- less impacted by the “Great Recession”
15. Risks &Profitability-Loans
Classified Loan for 2011 and 2010
5 4.50%
4.5 4.00%
4
3.50%
3.5
3.00%
3
2.50% Regions
2.5 PNC
2.00% Regions Ratio
2
PNC Ratio
1.50%
1.5
1.00%
1
0.5 0.50%
0 0.00%
2011 2010
• Both banks have decreased classified loans in absolute amount as a
percentage of total loans, solidifying the fact than the credit quality if
improving.
16. Risks &Profitability-Loans
Allowance for Loan Losses for 2011 and 2010
6 4.50%
4.00%
5
3.50%
4 3.00%
2.50% Regions
3 PNC
2.00%
Regions Ratio
2 1.50% PNC Ratio
1.00%
1
0.50%
0 0.00%
2011 2010
• Allowance for loan losses to total loans ratio and the exact amount for both
banks have decreased from 2011 to 2010, indicating an improving credit-
worthiness of their loan portfolios
17. Deposits Structure- Regions
100%
5.39% 4.93% 4.13%
90%
• Transaction Accounts cover money
markets, interest-bearing, and
80%
39.52%
41.38% interest-free accounts.
70% 49.83%
• Transaction Accounts continued to
60%
be major contributor funding
50%
source.
40%
24.09% 31.92% • Money Market Accounts & Time
20.27%
30% Deposits further shrank.
20% 29.59%
24.50% 24.40%
10%
2011 2010 2009
Money Markets
Time deposits
Demand (Interest & non-interest) Deposits
Savings Accounts
18. Deposits Structure- Regions
Growth Rate 2011 2010
Transaction Accounts 5.87% 6.49%
Money Markets -16.28% 16.34%
Time Deposits -14.95% -27.60%
Demand Deposits 21.70% 0.41%
Interest 44.44% -15.00%
Non-interest 9.84% 10.90%
• Interest-bearing accounts go up substantially with 44% growth.
• Money Market Accounts experienced a roller coaster.
• Time Deposits slow down the downward trends.
19. Deposits Structure-PNC Bank
• Money Markets Accounts & Transaction Accounts increased
by 6% and 10% respectively.
• Time Deposits shrank by 24 percent.
• PNC had negligible interest-bearing accounts; so demand
deposits purely consist of non-interest bearing accounts.
90.00%
78.69%
80.00%
73.42%
70.00%
60.00%
50.00% 47.50% 46.12%
2011
40.00%
2010
31.19%
30.00% 27.30%
22.57%
20.00% 16.71%
10.00%
0.00%
Transaction Accounts Money Markets Time deposits Demand Deposits
20. Risks and Profitability-Profitability
Efficiency Ratio Net Interest Margin
70.00% 4.50%
68.00% 4.00%
66.00% 3.50%
64.00%
3.00%
62.00%
2.50%
60.00%
2.00%
58.00%
1.50%
56.00%
54.00% 1.00%
52.00% 0.50%
50.00% 0.00%
PNC 2010 PNC 2011
Regions 2010 Regions 2011 Regions 2010 Regions 2011 PNC 2010 PNC 2011
Banks headed in different directions?
21. Agenda
• Banking Industry Characteristics
• Business Strategy of Regions Bank and PNC Bank
• Earnings Quality and Accounting Issues
• Risks and Profitability
• Future Prospects
23. After-Presentation Events
Key Milestones 1Q12 Results
• No objection to capital plan • Net income available to
• Closed Morgan Keegan Sale common shareholders of
• Successful common equity $145MM or $0.11 per diluted
offering share
• Credit ratings upgrade • Income from continuing
• Redeemed $3.5 billion of Series operations $0.14 per diluted
A preferred stock share
Broad-Based Asset Quality Improvement
• Net charge-offs decreased $98MM or
23% to $332MM
• Lowest quarterly loan loss provision in
more than four years at $117MM
• NPLs declined 9%
• Inflows of NPLs down 32% to $381 MM