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▪	Net income was $915 million, a decrease of $466 million driven by a higher provision for credit losses.

▪	Total revenue of $4.5 billion declined $92 million, or 2 percent.

▪	Net interest income of $2.5 billion increased $23 million, or 1 percent, primarily due to lower rates on deposits and borrowings and higher loan and securities balances partially offset by lower loan and other earning asset yields and one less day in the first quarter.

–	Net interest margin increased 6 basis points to 2.84 percent.

▪	Noninterest income of $2.0 billion decreased $115 million, or 5 percent.

–	Fee income of $1.7 billion was stable as higher residential mortgage revenue and corporate service fees were offset by lower asset management revenue, service charges on deposits and consumer service fees.

–	Other noninterest income of $343 million declined $113 million primarily due to negative valuation adjustments of private equity investments and a fourth quarter gain on the sale of proprietary mutual funds partially offset by higher net securities gains in the first quarter.

▪	Noninterest expense of $2.5 billion decreased $219 million, or 8 percent, primarily due to lower incentive compensation and benefits expense, the impact of fourth quarter equipment write-offs and lower marketing expense.

–	The efficiency ratio improved to 56 percent for the first quarter from 60 percent in the fourth quarter.

▪	Provision for credit losses of $914 million, which was calculated under the Current Expected Credit Loss (CECL) accounting standard effective January 1, 2020, increased $693 million primarily due to the significant economic impact of COVID-19 and loan growth.

–	Provision was $506 million for the commercial portfolio and $399 million for the consumer portfolio.

▪	The effective tax rate declined to 13.7 percent for the first quarter compared with 15.1 percent for the fourth quarter primarily due to the benefit from resolution of certain tax matters and the impact of lower pretax earnings.

▪	Loans at March 31, 2020 increased $24.8 billion, or 10 percent, to $264.6 billion compared with December 31, 2019. Commercial lending balances increased $24.1 billion, or 15 percent, reflecting higher utilization of loan commitments near quarter end driven by the economic impact of COVID-19. Consumer lending balances increased $.7 billion.

–	Unfunded commercial lending commitments declined to $116.0 billion at March 31, 2020 from $131.8 billion at December 31, 2019.

▪	Average loans increased $4.7 billion, or 2 percent, to $243.6 billion in the first quarter compared with the fourth quarter.

–	Average commercial lending balances of $164.1 billion increased $3.3 billion, or 2 percent, in PNC's corporate banking, real estate and business credit businesses.

–	Average consumer lending balances of $79.5 billion increased $1.4 billion, or 2 percent, due to growth in auto, residential mortgage, credit card and unsecured installment loans.

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▪	Credit quality performance:

–	Overall delinquencies of $1.5 billion at March 31, 2020 decreased $21 million, or 1 percent, compared with December 31, 2019.

–	Nonperforming assets of $1.8 billion at March 31, 2020 were stable with December 31, 2019.

–	Net loan charge-offs were $212 million for the first quarter compared with $209 million for the fourth quarter.

–	The allowance for credit losses for loans and leases and off-balance sheet credit exposures of $4.4 billion to total loans was 1.66 percent at March 31, 2020, and reflects the January 1, 2020 transition adjustment of $.6 billion for adoption of the CECL accounting standard.

▪	Deposits at March 31, 2020 increased $16.7 billion, or 6 percent, to $305.2 billion compared with December 31, 2019 as higher commercial deposits near quarter end reflected liquidity maintained by customers due to the economic impact of COVID-19.

–	Average deposits increased $2.0 billion, or 1 percent, to $289.7 billion in the first quarter compared with the fourth quarter due to growth in consumer deposits partially offset by seasonal declines in commercial deposits.

▪	Investment securities at March 31, 2020 increased $3.7 billion, or 4 percent, to $90.5 billion compared with December 31, 2019.

–	Average investment securities increased $.9 billion, or 1 percent, to $84.4 billion in the first quarter compared with the fourth quarter.

▪	Balances held with the Federal Reserve of $19.6 billion at March 31, 2020 decreased $3.6 billion compared with December 31, 2019, and first quarter average balances of $17.3 billion decreased $5.7 billion compared with the fourth quarter.

▪	PNC returned $1.9 billion of capital to shareholders in the first quarter through repurchases of 10.1 million common shares for $1.4 billion and dividends on common shares of $.5 billion.

–	PNC announced on March 16, 2020 a temporary suspension of its common stock repurchase program through June 30, 2020 in conjunction with the Federal Reserve's effort to support the U.S. economy during the COVID-19 outbreak.

–	On April 2, 2020, the PNC board of directors declared a quarterly cash dividend on common stock of $1.15 per share effective with the May 5, 2020 dividend payment date.

▪	PNC maintained strong capital and liquidity positions.

–	The Basel III common equity Tier 1 capital ratio was an estimated 9.4 percent at March 31, 2020 and 9.5 percent at December 31, 2019.

–	The March 31, 2020 ratio reflects PNC's election of a five-year transition provision to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.

–	The Liquidity Coverage Ratio at March 31, 2020 for both PNC and PNC Bank, N.A. exceeded the regulatory minimum requirement.

–	March 31, 2020 ratios incorporate Tailoring Rule changes that reduced net cash outflows by 15 percent in the ratio calculations effective January 1, 2020.

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▪	Average loans increased 2 percent compared with the fourth quarter and 8 percent compared with the first quarter of 2019 due to growth in residential mortgage, auto and credit card loans partially offset by lower education loans driven by continued runoff in the government guaranteed education loan portfolio.

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▪	Average deposits increased 1 percent compared with the fourth quarter and 5 percent compared with first quarter 2019 due to increases in savings and demand deposits partially offset by lower money market deposits reflecting a shift to relationship-based savings products.

▪	Net loan charge-offs were $166 million for the first quarter of 2020 compared with $154 million in the fourth quarter of 2019 and $132 million in the first quarter of 2019.

▪	Residential mortgage loan origination volume was $3.2 billion for the first quarter of 2020 compared with $3.5 billion for the fourth quarter of 2019 and $1.7 billion for the first quarter of 2019. Approximately 36 percent of first quarter 2020 volume was for home purchase transactions compared with 40 percent and 56 percent for the fourth and first quarters of 2019, respectively.

▪	The third party residential mortgage servicing portfolio was $118 billion at March 31, 2020 compared with $120 billion at December 31, 2019 and $123 billion at March 31, 2019. Residential mortgage loan servicing acquisitions were $2 billion for first quarter 2020 compared with $3 billion for the fourth quarter of 2019 and $1 billion for the first quarter of 2019.

▪	Approximately 71 percent of consumer customers used non-teller channels for the majority of their transactions during the first quarter of 2020 and the fourth quarter of 2019 compared with 68 percent in the first quarter of 2019.

▪	Deposit transactions via ATM and mobile channels were 59 percent of total deposit transactions in the first quarter of 2020 compared with 58 percent in the fourth quarter of 2019 and 57 percent in the first quarter of 2019.

▪	Average loans increased 2 percent compared with the fourth quarter of 2019 and 6 percent compared with the first quarter of 2019 due to broad growth across PNC's corporate banking,

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▪	Average deposits were largely unchanged from the fourth quarter reflecting lower than usual seasonal declines offset by liquidity maintained by customers due to the economic impact of COVID-19. Average deposits increased 11 percent over the first quarter of 2019.

▪	Net loan charge-offs were $50 million in the first quarter of 2020 compared with $47 million in the fourth quarter of 2019 and $5 million in the first quarter of 2019.

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(a)	Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

(b)	The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

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(a)

Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest margins, we use net interest income on a taxable-equivalent basis in calculating average yields used in the calculation of net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019 were $22 million, $23 million and $27 million, respectively.

(b)	Calculated as noninterest expense divided by total revenue.

(c)

Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflect PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.

(d)	Includes earnings and gains or losses related to PNC's equity investment in BlackRock and residual activities that do not meet the criteria for disclosure as a separate reportable business. We provide additional information on these activities in our Form 10-K and Form 10-Q filings with the SEC.

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(a)	Amounts include assets and liabilities for which we have elected the fair value option. Our 2019 Form 10-K included, and our first quarter 2020 Form 10-Q will include, additional information regarding these Consolidated Balance Sheet line items.

(b)

Reflects the impact of adopting Accounting Standards Update 2016-13, Financial Instruments - Credit Losses and our transition from an incurred loss model for these reserves to an expected credit loss methodology. Our 2019 Form 10-K included, and our first quarter 2020 Form 10-Q will include additional information related to our adoption of this standard, which is commonly referred to as the Current Expected Credit Losses (CECL) standard.

(c)	Amount as of March 31, 2020 is net of the related Allowances for Credit Losses recorded in accordance with the adoption of CECL. Our 2019 Form 10-K included, and our first quarter 2020 Form 10-Q will include additional information related to our adoption of this standard.

(d)	Amounts include our equity investment in BlackRock.

(e)	See the Tangible Book Value per Common Share table on page 19 for additional information.

(f)	All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented and calculated based on the standardized approach. See Capital Ratios on page 18 for additional information. The ratios as of March 31, 2020 are estimated.

(g)	The March 31, 2020 ratios are calculated to reflect PNC's election to adopt the CECL optional transition provision.

(h)	The March 31, 2020 ratio is calculated to reflect the full impact of CECL and excludes the benefits of phase-ins.

(i)	The 2020 and 2019 Basel III Total risk-based capital ratios include nonqualifying trust preferred capital securities of $40 million and $60 million, respectively, that are subject to a phase-out period that runs through 2021.

(j)

The 2019 Pro forma Basel III ratio is calculated as if the 2019 Tailoring Rules, and PNC's election to opt-out of the inclusion of certain elements of accumulated other comprehensive income in regulatory capital, had been in effect at December 31, 2019. We believe that the pro forma Basel III ratio is a useful tool to assess the impact to our capital position after adoption of the 2019 Tailoring Rules.

(k)

Ratio at March 31, 2020 reflects the transition impact on our allowance for loans and leases from the adoption of the CECL standard along with the increases in reserves during the first quarter of 2020 due to the significant economic impact of COVID-19 and loan growth. Our 2019 Form 10-K included and our first quarter 2020 Form 10-Q will include additional information related to our adoption of this standard.

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(a)	All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented.

(b)	The March 31, 2020 ratio is calculated to reflect PNC's election to adopt the CECL optional transition provision.

(c)	The March 31, 2020 ratio is calculated to reflect the full impact of CECL and excludes the benefits of phase-ins.

(d)	The 2019 Pro forma Basel III ratio is calculated as if the 2019 Tailoring Rules, and PNC's election to opt-out of the inclusion of certain elements of accumulated other comprehensive income in regulatory capital, had been in effect at December 31, 2019. We believe that this ratio is a useful tool to assess the impact to our capital position after adoption of the 2019 Tailoring Rules.

(e)	Based on the Tailoring Rules, effective January 1, 2020 for PNC, the limit for threshold deductions increased, resulting in no deduction as of March 31, 2020.

(f)	Based on the Tailoring Rules effective January 1, 2020, PNC elected to opt-out of the inclusion of accumulated other comprehensive income in regulatory capital.

(g)	Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets.

(h)	Basel III advanced approaches risk-weighted assets in 2019 were based on the Basel III advanced approaches rules, and include credit, market and operational risk-weighted assets. Based on the Tailoring Rules effective January 1, 2020, PNC is no longer required to report advanced approaches risk-weighted assets.

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

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

–	Disruptions in the U.S. and global financial markets.

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

–	Changes in customer behavior due to changing business and economic conditions or legislative or regulatory initiatives.

–	Changes in customers’, suppliers’ and other counterparties’ performance and creditworthiness.

–	Impacts of tariffs and other trade policies of the U.S. and its global trading partners.

–	The length and extent of economic contraction as a result of the COVID-19 pandemic.

–	Commodity price volatility.

▪	Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting and do not take into account potential legal and regulatory contingencies. These statements are based on our views that:

–

PNC’s baseline economic forecast is for a severe but short recession in the first half of 2020. Restrictions on movement because of the COVID-19 pandemic have led to a huge drop in consumer spending and a steep drop in output as many workers are unable to get to their jobs. PNC expects a significant contraction in U.S. real GDP and steep job losses over the next few months and a large increase in the unemployment rate in 2020.

–	In the baseline forecast, economic growth resumes in the third quarter as consumers start to spend again. Fiscal stimulus and extremely low interest rates support the recovery. Real GDP surpasses its pre-recession peak in mid-2021, and growth is well above its long-term trend through mid-2022.

–	The baseline forecast assumes that the Federal Open Market Committee keeps the federal funds rate in its current range of 0.00 to 0.25 percent throughout 2020 and into 2021.

▪

Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain COVID-19 are unsuccessful and restrictions on movement last into the third quarter or beyond, the recession would be much longer and much more severe. Ineffective fiscal stimulus, or an extended delay in implementing it, are also major downside risks. The deeper the recession is, and the longer it lasts, the more it will damage consumer fundamentals and sentiment. This could both prolong the recession, and/or make any recovery weaker. Similarly, the recession could damage business fundamentals. And an extended global recession due to COVID-19 would weaken the U.S. recovery. As a result, the outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.

▪	PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding a stress capital buffer established by the Federal Reserve Board as part of PNC's comprehensive capital plan for the applicable period in connection with the Federal Reserve Board's Comprehensive Capital Analysis and Review (CCAR) process.

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▪

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 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 at least in part on the development, validation and regulatory review of related models.

▪

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:

–	Changes to laws and regulations, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.

–	Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries. 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.

–	Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.

–	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 systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards.

▪	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.

▪

We grow our business in part through acquisitions and new strategic initiatives. Risks and uncertainties include those presented by the nature of the business acquired and strategic initiative, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, 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. 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, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically.