CONSOLIDATED INCOME STATEMENT (a)
THE PNC FINANCIAL SERVICES GROUP, INC.
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| Three months ended |
| In millions, except per share data | December 31 2021 | September 30 2021 | June 30 2021 | March 31 2021 |
| Interest Income | | | | |
| Loans | $ | 2,414 | | $ | 2,437 | | $ | 2,160 | | $ | 1,996 | |
| Investment securities | 484 | | 460 | | 469 | | 421 | |
| Other | 77 | | 78 | | 72 | | 66 | |
| Total interest income | 2,975 | | 2,975 | | 2,701 | | 2,483 | |
| Interest Expense | | | | |
| Deposits | 27 | | 29 | | 30 | | 40 | |
| Borrowed funds | 86 | | 90 | | 90 | | 95 | |
| Total interest expense | 113 | | 119 | | 120 | | 135 | |
| Net interest income | 2,862 | | 2,856 | | 2,581 | | 2,348 | |
| Noninterest Income | | | | |
| Asset management and brokerage | 385 | | 375 | | 350 | | 328 | |
| Capital markets related | 460 | | 482 | | 324 | | 311 | |
| Card and cash management (b) | 646 | | 663 | | 597 | | 492 | |
| Lending and deposit related (c) | 273 | | 305 | | 270 | | 254 | |
| Residential and commercial mortgage | 209 | | 248 | | 206 | | 187 | |
| Other (d)(e) | 292 | | 268 | | 339 | | 300 | |
| Total noninterest income | 2,265 | | 2,341 | | 2,086 | | 1,872 | |
| Total revenue | 5,127 | | 5,197 | | 4,667 | | 4,220 | |
| Provision For (Recapture of) Credit Losses | (327) | | (203) | | 302 | | (551) | |
| Noninterest Expense | | | | |
| Personnel | 2,038 | | 1,986 | | 1,640 | | 1,477 | |
| Occupancy | 260 | | 248 | | 217 | | 215 | |
| Equipment | 437 | | 355 | | 326 | | 293 | |
| Marketing | 97 | | 103 | | 74 | | 45 | |
| Other | 959 | | 895 | | 793 | | 544 | |
| Total noninterest expense | 3,791 | | 3,587 | | 3,050 | | 2,574 | |
| Income before income taxes and noncontrolling interests | 1,663 | | 1,813 | | 1,315 | | 2,197 | |
| Income taxes | 357 | | 323 | | 212 | | 371 | |
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| Net income | 1,306 | | 1,490 | | 1,103 | | 1,826 | |
| Less: Net income attributable to noncontrolling interests | 13 | | 16 | | 12 | | 10 | |
| Preferred stock dividends | 71 | | 57 | | 48 | | 57 | |
| Preferred stock discount accretion and redemptions | 2 | | 1 | | 1 | | 1 | |
| Net income attributable to common shareholders | $ | 1,220 | | $ | 1,416 | | $ | 1,042 | | $ | 1,758 | |
| Earnings Per Common Share | | | | |
| Basic | $ | 2.87 | $ | 3.31 | $ | 2.43 | $ | 4.11 |
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| Diluted | $ | 2.86 | $ | 3.30 | $ | 2.43 | $ | 4.10 |
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| Average Common Shares Outstanding | | | | |
| Basic | 424 | 426 | 427 | 426 |
| Diluted | 424 | | 426 | | 427 | | 426 | |
(a)Results reflect the BBVA acquisition beginning on June 1, 2021.
(b)Card and cash management includes integration costs (contra revenue) of ($17) million included in fourth quarter 2021.
(c)Lending and deposit related includes integration costs (contra revenue) of ($11) million in fourth quarter 2021.
(d)Other noninterest income includes integration costs (contra revenue) of ($19) million in fourth quarter 2021, ($8) million in third quarter 2021 and ($10) million in second quarter 2021.
(e)Other noninterest income is composed of private equity revenue, net securities gains and losses, activity related to our equity investment in Visa and gains and losses on asset sales. In addition to these components, the prior presentation of Other noninterest income included credit valuation adjustments related to the derivatives portfolio and customer-related trading, net gains on originations and sales of loans held for sale and portfolio underwriting.
CONSOLIDATED INCOME STATEMENT
THE PNC FINANCIAL SERVICES GROUP, INC.
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| Three months ended |
| In millions, except per share data | December 31 2020 | September 30 2020 | June 30 2020 | March 31 2020 |
| Interest Income | | | | |
| Loans | $ | 2,074 | | $ | 2,116 | | $ | 2,257 | | $ | 2,480 | |
| Investment securities | 442 | | 490 | | 527 | | 582 | |
| Other | 60 | | 70 | | 71 | | 138 | |
| Total interest income | 2,576 | | 2,676 | | 2,855 | | 3,200 | |
| Interest Expense | | | | |
| Deposits | 53 | | 74 | | 141 | | 375 | |
| Borrowed funds | 99 | | 118 | | 187 | | 314 | |
| Total interest expense | 152 | | 192 | | 328 | | 689 | |
| Net interest income | 2,424 | | 2,484 | | 2,527 | | 2,511 | |
| Noninterest Income | | | | |
| Asset management and brokerage | 315 | | 309 | | 285 | | 294 | |
| Capital markets related | 440 | | 250 | | 319 | | 250 | |
| Card and cash management | 498 | | 497 | | 437 | | 481 | |
| Lending and deposit related | 274 | | 250 | | 204 | | 298 | |
| Residential and commercial mortgage | 191 | | 231 | | 225 | | 299 | |
| Other (a) | 66 | | 260 | | 79 | | 203 | |
| Total noninterest income | 1,784 | | 1,797 | | 1,549 | | 1,825 | |
| Total revenue | 4,208 | | 4,281 | | 4,076 | | 4,336 | |
| Provision For (Recapture of) Credit Losses | (254) | | 52 | | 2,463 | | 914 | |
| Noninterest Expense | | | | |
| Personnel | 1,521 | | 1,410 | | 1,373 | | 1,369 | |
| Occupancy | 215 | | 205 | | 199 | | 207 | |
| Equipment | 296 | | 292 | | 301 | | 287 | |
| Marketing | 64 | | 67 | | 47 | | 58 | |
| Other | 612 | | 557 | | 595 | | 622 | |
| Total noninterest expense | 2,708 | | 2,531 | | 2,515 | | 2,543 | |
| Income from continuing operations before income taxes and noncontrolling interests | 1,754 | | 1,698 | | (902) | | 879 | |
| Income taxes from continuing operations | 298 | | 166 | | (158) | | 120 | |
| Net income from continuing operations | 1,456 | | 1,532 | | (744) | | 759 | |
| Income from discontinued operations before taxes | | | 5,596 | | 181 | |
| Income taxes from discontinued operations | | | 1,197 | | 25 | |
| Net income from discontinued operations | | | 4,399 | | 156 | |
| Net income | 1,456 | | 1,532 | | 3,655 | | 915 | |
| Less: Net income attributable to noncontrolling interests | 14 | | 13 | | 7 | | 7 | |
| Preferred stock dividends | 48 | | 63 | | 55 | | 63 | |
| Preferred stock discount accretion and redemptions | 1 | | 1 | | 1 | | 1 | |
| Net income attributable to common shareholders | $ | 1,393 | | $ | 1,455 | | $ | 3,592 | | $ | 844 | |
| Earnings Per Common Share | | | | |
| Basic earnings from continuing operations | $ | 3.26 | $ | 3.40 | $ | (1.90) | $ | 1.59 |
| Basic earnings from discontinued operations | | | 10.28 | 0.37 |
| Total basic earnings | $ | 3.26 | | $ | 3.40 | | $ | 8.40 | | $ | 1.96 | |
| Diluted earnings from continuing operations | $ | 3.26 | $ | 3.39 | $ | (1.90) | $ | 1.59 |
| Diluted earnings from discontinued operations | | | 10.28 | 0.36 |
| Total diluted earnings | $ | 3.26 | | $ | 3.39 | | $ | 8.40 | | $ | 1.95 | |
| Average Common Shares Outstanding | | | | |
| Basic | 425 | | 426 | | 426 | | 429 | |
| Diluted | 426 | | 426 | | 426 | | 430 | |
(a)Other noninterest income is composed of private equity revenue, net securities gains and losses, activity related to our equity investment in Visa and gains and losses on asset sales. In addition to these components, the prior presentation of Other noninterest income included credit valuation adjustments related to the derivatives portfolio and customer-related trading, net gains on originations and sales of loans held for sale and portfolio underwriting.
RECONCILIATION OF FEE INCOME (NON-GAAP) (a)
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| Three months ended |
In millions | December 31 2021 | | September 30 2021 | | June 30 2021 | | March 31 2021 |
| Noninterest income | | | | | | | |
| Asset management and brokerage | $ | 385 | | | $ | 375 | | | $ | 350 | | | $ | 328 | |
| Capital markets related | 460 | | | 482 | | | 324 | | | 311 |
| Card and cash management (b) | 646 | | | 663 | | | 597 | | | 492 |
| Lending and deposit related (c) | 273 | | | 305 | | | 270 | | | 254 |
| Residential and commercial mortgage | 209 | | | 248 | | | 206 | | | 187 |
| Total fee income | 1,973 | | | 2,073 | | | 1,747 | | | 1,572 | |
| Other (d)(e) | 292 | | | 268 | | | 339 | | | 300 |
| Total noninterest income | $ | 2,265 | | | $ | 2,341 | | | $ | 2,086 | | | $ | 1,872 | |
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| Three months ended |
In millions | December 31 2020 | | September 30 2020 | | June 30 2020 | | March 31 2020 |
| Noninterest income | | | | | | | |
| Asset management and brokerage | $ | 315 | | | $ | 309 | | | $ | 285 | | | $ | 294 | |
| Capital markets related | 440 | | | 250 | | | 319 | | | 250 |
| Card and cash management | 498 | | | 497 | | | 437 | | | 481 |
| Lending and deposit related | 274 | | | 250 | | | 204 | | | 298 |
| Residential and commercial mortgage | 191 | | | 231 | | | 225 | | | 299 |
| Total fee income | 1,718 | | | 1,537 | | | 1,470 | | | 1,622 | |
| Other (e) | 66 | | | 260 | | | 79 | | | 203 |
| Total noninterest income | $ | 1,784 | | | $ | 1,797 | | | $ | 1,549 | | | $ | 1,825 | |
(a)Results reflect the BBVA acquisition beginning on June 1, 2021.
(b)Card and cash management includes integration costs (contra revenue) of ($17) million included in fourth quarter 2021.
(c)Lending and deposit related includes integration costs (contra revenue) of ($11) million in fourth quarter 2021.
(d)Other noninterest income includes integration costs (contra revenue) of ($19) million in fourth quarter 2021, ($8) million in third quarter 2021 and ($10) million in second quarter 2021.
(e)Other noninterest income is composed of private equity revenue, net securities gains and losses, activity related to our equity investment in Visa and gains and losses on asset sales. In addition to these components, the prior presentation of Other noninterest income included credit valuation adjustments related to the derivatives portfolio and customer-related trading, net gains on originations and sales of loans held for sale and portfolio underwriting.