Form: 8-K

Current report filing

March 31, 2022

Documents

Exhibit 99.1
CONSOLIDATED INCOME STATEMENT (a)
THE PNC FINANCIAL SERVICES GROUP, INC.
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 
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
Diluted $ 2.86 $ 3.30 $ 2.43 $ 4.10
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.
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)

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 

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.