Exhibit 99.2

pncbanklogoa18.jpg



THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT
FOURTH QUARTER 2022
(Unaudited)



THE PNC FINANCIAL SERVICES GROUP, INC.
FINANCIAL SUPPLEMENT
FOURTH QUARTER 2022
(UNAUDITED)
Consolidated Results:
Page
6-7
9-11
Business Segment Results:
14-15
18-20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 18, 2023. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS
PNC is one of the largest diversified financial services companies in the United States (U.S.) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.

PRESENTATION OF NONINTEREST INCOME
Effective for the first quarter of 2022, PNC updated the presentation of its noninterest income categorization to be based on product and service type, and accordingly, has changed the basis of presentation of its noninterest income revenue streams to: (i) Asset management and brokerage, (ii) Capital markets related, (iii) Card and cash management, (iv) Lending and deposit services, (v) Residential and commercial mortgage and (vi) Other noninterest income. For a description of each updated noninterest income revenue stream, see our third quarter 2022 Form 10-Q. Additionally, in the fourth quarter of 2022, PNC updated the name of the noninterest income line item "capital markets related" to "capital markets and advisory." This update did not impact the components of the category. All periods presented herein reflect these changes.

ACQUISITION OF BBVA USA BANCSHARES, INC.
On June 1, 2021, PNC acquired BBVA USA Bancshares Inc. (BBVA), a U.S. financial holding company conducting its business operations primarily through its U.S. banking subsidiary, BBVA USA. PNC paid $11.5 billion in cash as consideration for the acquisition.

On October 8, 2021, BBVA USA merged into PNC Bank. On October 12, 2021, PNC converted approximately 2.6 million
customers, 9,000 employees and over 600 branches across seven states. Our results of operations and balance sheets for all periods presented in this Financial Supplement reflect the benefit of BBVA’s acquired businesses for the period since the acquisition closed on June 1, 2021.





THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth Quarter 2022 Financial Supplement (Unaudited)
Financial Supplement Table Reference
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THE PNC FINANCIAL SERVICES GROUP, INC.

Page 1

Table 1: Consolidated Income Statement (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions, except per share data2022202220222022202120222021
Interest Income
Loans$3,860 $3,138 $2,504 $2,293 $2,414 $11,795 $9,007 
Investment securities836 715 631 544 484 2,726 1,834 
Other413 279 146 77 77 915 293 
Total interest income5,109 4,132 3,281 2,914 2,975 15,436 11,134 
Interest Expense
Deposits812 340 88 27 27 1,267 126 
Borrowed funds613 317 142 83 86 1,155 361 
Total interest expense1,425 657 230 110 113 2,422 487 
Net interest income3,684 3,475 3,051 2,804 2,862 13,014 10,647 
Noninterest Income
Asset management and brokerage345 357 365 377 385 1,444 1,438 
Capital markets and advisory336 299 409 252 460 1,296 1,577 
Card and cash management671 671 671 620 646 2,633 2,398 
Lending and deposit services296 287 282 269 273 1,134 1,102 
Residential and commercial mortgage184 143 161 159 209 647 850 
Other (a)247 317 177 211 292 952 1,199 
Total noninterest income2,079 2,074 2,065 1,888 2,265 8,106 8,564 
Total revenue5,763 5,549 5,116 4,692 5,127 21,120 19,211 
Provision For (Recapture of) Credit Losses408 241 36 (208)(327)477 (779)
Noninterest Expense
Personnel1,943 1,805 1,779 1,717 2,038 7,244 7,141 
Occupancy247 241 246 258 260 992 940 
Equipment369 344 351 331 437 1,395 1,411 
Marketing106 93 95 61 97 355 319 
Other809 797 773 805 959 3,184 3,191 
Total noninterest expense3,474 3,280 3,244 3,172 3,791 13,170 13,002 
Income before income taxes and noncontrolling interests1,881 2,028 1,836 1,728 1,663 7,473 6,988 
Income taxes333 388 340 299 357 1,360 1,263 
Net income1,548 1,640 1,496 1,429 1,306 6,113 5,725 
Less: Net income attributable to noncontrolling interests20 16 15 21 13 72 51 
Preferred stock dividends (b)120 65 71 45 71 301 233 
Preferred stock discount accretion and
    redemptions		1 1 1 2 2 5 5 
Net income attributable to common shareholders$1,407 $1,558 $1,409 $1,361 $1,220 $5,735 $5,436 
Earnings Per Common Share
Basic$3.47 $3.78 $3.39 $3.23 $2.87 $13.86 $12.71 
Diluted$3.47 $3.78 $3.39 $3.23 $2.86 $13.85 $12.70 
Average Common Shares Outstanding
Basic404 410 414 420 424 412 426 
Diluted404 410 414 420 424 412 426 
Efficiency60 %59 %63 %68 %74 %62 %68 %
Noninterest income to total revenue36 %37 %40 %40 %44 %38 %45 %
Effective tax rate from continuing operations (c)17.7 %19.1 %18.5 %17.3 %21.5 %18.2 %18.1 %
(a)Includes net gains (losses) on sales of securities of $(3) million, less than $1 million, less than $(1) million, $(4) million and $14 million for the quarters ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively, and $(7) million and $64 million for the twelve months ended December 31, 2022 and December 31, 2021, respectively.
(b)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.
(c)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.












THE PNC FINANCIAL SERVICES GROUP, INC.

Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
December 31September 30June 30March 31December 31
In millions, except par value20222022202220222021
Assets
Cash and due from banks$7,043 $6,548 $8,582 $7,572 $8,004 
Interest-earning deposits with banks (a)27,320 40,278 28,404 48,776 74,250 
Loans held for sale (b)1,010 1,126 1,191 1,506 2,231 
Investment securities – available for sale 44,159 45,798 52,984 112,313 131,536 
Investment securities – held to maturity95,175 90,653 79,748 20,098 1,426 
Loans (b)326,025 315,400 310,800 294,457 288,372 
Allowance for loan and lease losses (4,741)(4,581)(4,462)(4,558)(4,868)
Net loans321,284 310,819 306,338 289,899 283,504 
Equity investments8,437 8,130 8,441 7,798 8,180 
Mortgage servicing rights3,423 3,206 2,608 2,208 1,818 
Goodwill10,987 10,987 10,916 10,916 10,916 
Other (b) 38,425 41,932 41,574 40,160 35,326 
Total assets$557,263 $559,477 $540,786 $541,246 $557,191 
Liabilities
Deposits
Noninterest-bearing$124,486 $138,423 $146,438 $150,798 $155,175 
Interest-bearing311,796 299,771 294,373 299,399 302,103 
Total deposits436,282 438,194 440,811 450,197 457,278 
Borrowed funds
Federal Home Loan Bank borrowings32,075 30,075 10,000 
Senior debt16,657 13,357 14,358 16,206 20,661 
Subordinated debt6,307 7,286 7,487 6,766 6,996 
Other (b)3,674 3,915 4,139 3,599 3,127 
Total borrowed funds58,713 54,633 35,984 26,571 30,784 
Allowance for unfunded lending related commitments 694 682 681 639 662 
Accrued expenses and other liabilities15,762 19,245 15,622 14,623 12,741 
Total liabilities511,451 512,754 493,098 492,030 501,465 
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 543 shares2,714 2,714 2,714 2,713 2,713 
Capital surplus18,376 19,810 18,531 17,487 17,457 
Retained earnings53,572 52,777 51,841 51,058 50,228 
Accumulated other comprehensive income (loss)(10,172)(10,486)(8,358)(5,731)409 
Common stock held in treasury at cost: 142, 139, 132, 128, and 123 shares(18,716)(18,127)(17,076)(16,346)(15,112)
Total shareholders’ equity45,774 46,688 47,652 49,181 55,695 
Noncontrolling interests38 35 36 35 31 
Total equity45,812 46,723 47,688 49,216 55,726 
Total liabilities and equity$557,263 $559,477 $540,786 $541,246 $557,191 
(a)Amounts include balances held with the Federal Reserve Bank of $26.9 billion, $39.8 billion, $28.0 billion, $48.4 billion and $73.8 billion as of December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, respectively.
(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2022 Form 10-Qs included, and our 2022 Form 10-K will include, additional information regarding these items.
(c)Par value less than $0.5 million at each date.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 3
Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions2022202220222022202120222021
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency$31,818 $32,500 $37,285 $67,498 $64,521 $42,151 $57,325 
Non-agency714 7489021,0079748421,100 
Commercial mortgage-backed3,377 3,4894,3625,2295,5384,1076,093 
Asset-backed1051102,3886,2256,2062,1845,745 
U.S. Treasury and government agencies10,34511,78917,48047,46844,41521,64234,394 
Other3,3703,5064,2004,8764,7413,9824,852 
Total securities available for sale49,72952,14266,617132,303126,39574,908109,509
Securities held to maturity
Residential mortgage-backed44,184 39,329 33,086 106 29,325  
Commercial mortgage-backed2,323 2,069 1,175 1,400  
Asset-backed6,995 6,571 4,119 4,446 
U.S. Treasury and government agencies36,44134,279 28,16791981225,074805 
Other3,2182,6001,5605696421,996660 
Total securities held to maturity93,16184,84868,1071,5941,45462,2411,465
Total investment securities142,890136,990134,724133,897127,849137,149110,974
Loans
Commercial and industrial179,111172,788166,968155,481152,355168,663143,389 
Commercial real estate36,18135,14034,46734,00435,25634,95433,159 
Equipment lease financing6,2756,2026,2006,0996,1836,1966,286 
Consumer54,80954,56354,55154,96556,24454,72154,338 
Residential real estate45,49944,33342,60440,15238,87243,16531,524 
Total loans321,875313,026304,790290,701288,910307,699268,696
Interest-earning deposits with banks (c)30,39531,89239,68962,54075,37741,05079,869 
Other interest-earning assets9,6909,5609,9359,4179,1139,6518,539 
Total interest-earning assets504,850491,468489,138496,555501,249495,549468,078
Noninterest-earning assets52,35655,62957,74053,54158,12355,10355,088 
Total assets$557,206 $547,097 $546,878 $550,096 $559,372 $550,652 $523,166 
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market$63,944 $60,934 $58,019 $62,596 $65,214 $61,376 $68,124 
Demand122,501120,358119,636112,372108,345118,749101,471 
Savings102,020106,761109,063108,532104,644106,57791,194 
Time deposits12,98210,02010,37816,04318,02912,34018,439 
Total interest-bearing deposits301,447298,073297,096299,543296,232299,042279,228
Borrowed funds
Federal Home Loan Bank borrowings30,64016,7086,978 13,674661 
Senior debt16,31214,59716,17218,01521,58116,26522,390 
Subordinated debt6,9337,6146,9986,7736,7797,0816,432 
Other5,3465,3425,5085,5245,9875,4305,025 
Total borrowed funds59,23144,26135,65630,31234,34742,45034,508
Total interest-bearing liabilities360,678342,334332,752329,855330,579341,492313,736
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits133,461141,167149,432153,726156,549144,382139,683 
Accrued expenses and other liabilities17,46115,69917,11614,05816,81816,41415,299 
Equity45,60647,89747,57852,45755,42648,36454,448 
Total liabilities and equity$557,206 $547,097 $546,878 $550,096 $559,372 $550,652 $523,166 
(a)Calculated using average daily balances.
(b)Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest-bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
(c)Amounts include average balances held with the Federal Reserve Bank of Cleveland of $30.0 billion, $31.5 billion, $39.3 billion, $62.3 billion and $75.1 billion for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021, and $40.7 billion and $79.6 billion for the twelve months ended December 31, 2022 and December 31, 2021, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 4
Table 4: Details of Net Interest Margin (Unaudited)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
2022202220222022202120222021
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency2.54 %2.36 %2.17 %1.73 %1.47 %2.11 %1.54 %
Non-agency7.85 %7.62 %7.56 %7.53 %7.36 %7.60 %7.64 %
Commercial mortgage-backed2.75 %2.70 %2.45 %2.36 %2.37 %2.53 %2.45 %
Asset-backed11.98 %6.31 %1.84 %1.35 %1.48 %1.69 %1.72 %
U.S. Treasury and government agencies1.96 %1.73 %1.60 %1.18 %1.17 %1.45 %1.30 %
Other2.39 %2.47 %2.59 %2.73 %2.77 %2.56 %2.97 %
Total securities available for sale2.52 %2.33 %2.13 %1.62 %1.50 %2.02 %1.65 %
Securities held to maturity
Residential mortgage-backed2.60 %2.30 %1.98 %2.31 %
Commercial mortgage-backed4.57 %3.50 %2.30 %3.64 %
Asset-backed3.44 %2.58 %1.92 %2.74 %
U.S. Treasury and government agencies1.30 %1.19 %1.05 %2.61 %2.89 %1.20 %2.86 %
Other4.47 %4.10 %4.21 %4.17 %4.20 %4.31 %4.09 %
Total securities held to maturity2.27 %1.96 %1.65 %2.99 %3.47 %1.99 %3.41 %
Total investment securities2.36 %2.10 %1.89 %1.64 %1.52 %2.00 %1.67 %
Loans
Commercial and industrial4.70 %3.69 %2.90 %2.75 %2.90 %3.60 %2.92 %
Commercial real estate5.28 %4.27 %3.15 %2.79 %2.86 %3.97 %2.99 %
Equipment lease financing4.18 %3.85 %3.62 %3.74 %3.81 %3.84 %3.82 %
Consumer5.88 %5.32 %4.68 %4.69 %4.71 %5.14 %4.79 %
Residential real estate3.28 %3.21 %3.11 %3.10 %3.26 %3.16 %3.32 %
Total loans4.75 %3.98 %3.29 %3.19 %3.32 %3.86 %3.37 %
Interest-earning deposits with banks3.76 %2.32 %0.79 %0.19 %0.15 %1.41 %0.13 %
Other interest-earning assets5.20 %3.94 %2.76 %2.07 %2.14 %3.50 %2.23 %
Total yield on interest-earning assets4.02 %3.35 %2.69 %2.37 %2.36 %3.14 %2.39 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market1.75 %0.85 %0.19 %0.03 %0.02 %0.72 %0.03 %
Demand1.14 %0.59 %0.15 %0.02 %0.02 %0.49 %0.03 %
Savings0.50 %0.09 %0.04 %0.04 %0.04 %0.17 %0.05 %
Time deposits1.45 %0.26 %0.18 %0.13 %0.11 %0.52 %0.18 %
Total interest-bearing deposits1.07 %0.45 %0.12 %0.04 %0.04 %0.42 %0.05 %
Borrowed funds
Federal Home Loan Bank borrowings3.92 %2.60 %1.24 %3.22 %0.45 %
Senior debt4.30 %2.96 %1.61 %1.02 %0.94 %2.47 %1.00 %
Subordinated debt4.79 %3.43 %1.94 %1.40 %1.28 %2.91 %1.34 %
Other
3.24 %2.20 %1.46 %0.97 %0.79 %1.99 %0.96 %
Total borrowed funds4.07 %2.81 %1.58 %1.10 %0.98 %2.72 %1.05 %
Total rate on interest-bearing liabilities1.55 %0.75 %0.27 %0.13 %0.13 %0.71 %0.16 %
Interest rate spread2.47 %2.60 %2.42 %2.24 %2.23 %2.43 %2.23 %
Benefit from use of noninterest-bearing sources (b)0.45 %0.22 %0.08 %0.04 %0.04 %0.22 %0.06 %
Net interest margin2.92 %2.82 %2.50 %2.28 %2.27 %2.65 %2.29 %
(a)Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. 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 GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022 and December 31, 2021 were $36 million, $29 million, $25 million, $22 million and $22 million, respectively. The taxable-equivalent adjustments to net interest income for the twelve months ended December 31, 2022 and December 31, 2021 were $112 million and $74 million, respectively.
(b)Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 5
Table 5: Details of Loans (Unaudited)
December 31September 30June 30March 31December 31
In millions20222022202220222021
Commercial
Commercial and industrial
Manufacturing$30,845 $28,629 $27,179 $25,035 $22,597 
Retail/wholesale trade29,17627,53226,47525,02722,803
Service providers23,54822,04321,18420,58420,750
Financial services21,32021,59019,59417,67417,950
Real estate related (a)17,78017,51316,17915,45915,123
Technology, media & telecommunications11,84511,36616,24910,68410,070
Health care10,64910,42010,1539,8109,944
Transportation and warehousing7,8587,9777,6047,2097,136
Other industries29,19826,74327,21426,39226,560
Total commercial and industrial182,219 173,813 171,831 157,874 152,933 
Commercial real estate36,316 35,592 34,452 34,171 34,015 
Equipment lease financing6,514 6,192 6,240 6,216 6,130 
Total commercial225,049215,597212,523198,261193,078
Consumer
Residential real estate45,889 45,057 43,717 41,566 39,712 
Home equity25,983 25,367 24,693 24,185 24,061 
Automobile14,836 15,025 15,323 16,001 16,635 
Credit card7,069 6,774 6,650 6,464 6,626 
Education2,173 2,287 2,332 2,441 2,533 
Other consumer5,026 5,293 5,562 5,539 5,727 
Total consumer100,976 99,803 98,277 96,196 95,294 
Total loans$326,025 $315,400 $310,800 $294,457 $288,372 
(a)Represents loans to customers in the real estate and construction industries.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 6
Allowance for Credit Losses (Unaudited)

Table 6: Change in Allowance for Loan and Lease Losses
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2022202220222022202120222021
Allowance for loan and lease losses
Beginning balance$4,581 $4,462 $4,558 $4,868 $5,355 $4,868 $5,361 
Acquisition PCD reserves1,056 
Gross charge-offs:
Commercial and industrial(121)(65)(30)(41)(35)(257)(385)
Commercial real estate(22)(7)(5)(10)(2)(44)(36)
Equipment lease financing(2)(1)(2)(1)(4)(6)(13)
Residential real estate(2)(2) (7)(4)(11)(15)
Home equity(6)(3)(2)(4)(4)(15)(20)
Automobile(34)(32)(34)(52)(49)(152)(169)
Credit card(62)(59)(67)(68)(60)(256)(256)
Education(4)(4)(4)(4)(4)(16)(15)
Other consumer(64)(49)(51)(64)(62)(228)(192)
Total gross charge-offs(317)(222)(195)(251)(224)(985)(1,101)
Recoveries:
Commercial and industrial33 23 15 30 20 101 88 
Commercial real estate2 1 1 1 2 5 7 
Equipment lease financing1 1 3 3 3 8 11 
Residential real estate2 4 6 5 8 17 28 
Home equity13 19 18 21 23 71 86 
Automobile24 30 39 31 26 124 143 
Credit card8 12 19 12 10 51 46 
Education1 1 2 1 2 5 8 
Other consumer9 12 9 10 6 40 27 
Total recoveries93 103 112 114 100 422 444 
Net (charge-offs) / recoveries:
Commercial and industrial(88)(42)(15)(11)(15)(156)(297)
Commercial real estate(20)(6)(4)(9)(39)(29)
Equipment lease financing(1)1 2 (1)2 (2)
Residential real estate2 6 (2)4 6 13 
Home equity7 16 16 17 19 56 66 
Automobile(10)(2)5 (21)(23)(28)(26)
Credit card(54)(47)(48)(56)(50)(205)(210)
Education(3)(3)(2)(3)(2)(11)(7)
Other consumer(55)(37)(42)(54)(56)(188)(165)
Total net (charge-offs) (a)(224)(119)(83)(137)(124)(563)(657)
Provision for (recapture of) credit losses (b)380 241 (10)(172)(362)439 (887)
Other4 (3)(3)(1)(1)(3)(5)
Ending balance$4,741 $4,581 $4,462 $4,558 $4,868 $4,741 $4,868 
Supplemental Information
Net charge-offs
Commercial net charge-offs$(109)$(48)$(18)$(18)$(16)$(193)$(328)
Consumer net charge-offs(115)(71)(65)(119)(108)(370)(329)
Total net charge-offs (a)$(224)$(119)$(83)$(137)$(124)$(563)$(657)
Net charge-offs to average loans (c)0.28 %0.15 %0.11 %0.19 %0.17 %0.18 %0.24 %
Commercial0.20 %0.09 %0.03 %0.04 %0.03 %0.09 %0.18 %
Consumer0.45 %0.28 %0.27 %0.51 %0.45 %0.38 %0.38 %
(a)Amounts for the year ended December 31, 2021 included charge-offs attributable to BBVA, primarily related to commercial and industrial loans, which were largely the result of required purchase accounting treatment for the BBVA acquisition on June 1, 2021.
(b)See Table 7 for the components of the Provision for (recapture of) credit losses being reported on the Consolidated Income Statement.
(c)Three month period percentages are annualized.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 7
Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for (Recapture of) Credit Losses
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions20222022202220222021 20222021 (a)
Provision for (recapture of) credit losses
Loans and leases$380 $241 $(10)$(172)$(362)$439 $(887)
Unfunded lending related commitments12 1 42 (23)16 32 32 
Investment securities 10 3 3 1 17 17 51 
Other financial assets6 (4)1 (14)19 (11)25 
Total provision for (recapture of) credit losses$408 $241 $36 $(208)$(327)$477 $(779)
(a)     Amounts include $1.0 billion of provision for credit losses that was recorded as part of the BBVA acquisition on June 1, 2021.

Table 8: Allowance for Credit Losses by Loan Class (a)
December 31, 2022September 30, 2022December 31, 2021

Dollars in millions		Allowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total LoansAllowance AmountTotal Loans% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial$1,957 $182,219 1.07 %$1,974 $173,813 1.14 %$1,879 $152,933 1.23 %
Commercial real estate1,047 36,316 2.88 %994 35,592 2.79 %1,216 34,015 3.57 %
Equipment lease financing110 6,514 1.69 %93 6,192 1.50 %90 6,130 1.47 %
Total commercial3,114 225,049 1.38 %3,061 215,597 1.42 %3,185 193,078 1.65 %
Consumer
Residential real estate92 45,889 0.20 %50 45,057 0.11 %21 39,712 0.05 %
Home equity274 25,983 1.05 %215 25,367 0.85 %149 24,061 0.62 %
Automobile226 14,836 1.52 %214 15,025 1.42 %372 16,635 2.24 %
Credit card748 7,069 10.58 %732 6,774 10.81 %712 6,626 10.75 %
Education63 2,173 2.90 %64 2,287 2.80 %71 2,533 2.80 %
Other consumer224 5,026 4.46 %245 5,293 4.63 %358 5,727 6.25 %
Total consumer1,627 100,976 1.61 %1,520 99,803 1.52 %1,683 95,294 1.77 %
Total
4,741 $326,025 1.45 %4,581 $315,400 1.45 %4,868 $288,372 1.69 %
Allowance for unfunded lending related commitments
694 682 662 
Allowance for credit losses
$5,435 $5,263 $5,530 
Supplemental Information
Allowance for credit losses to total loans
1.67 %1.67 %1.92 %
Commercial1.66 %1.70 %1.94 %
Consumer1.69 %1.60 %1.87 %
(a)     Excludes allowances for investment securities and other financial assets, which together totaled $176 million, $162 million and $171 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 8
Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type
December 31September 30June 30March 31December 31
Dollars in millions20222022202220222021
Nonperforming loans, including TDRs
Commercial
Commercial and industrial
Service providers$174 $223 $151 $173 $188 
Retail/wholesale trade151 158 87 59 50 
Manufacturing85 88 101 70 52 
Health care50 45 54 37 46 
Real estate related (a)50 47 59 39 64 
Transportation and warehousing27 29 30 28 18 
Technology, media & telecommunications20 20 21 36 33 
Other industries106 138 146 218 345 
Total commercial and industrial663 748 649 660 796 
Commercial real estate189 148 161 332 364 
Equipment lease financing6 7 5 6 8 
Total commercial858 903 815 998 1,168 
Consumer (b)
Residential real estate 424 429 457 526 517 
Home equity526 530 556 576 596 
Automobile155 167 175 181 183 
Credit card8 6 6 8 7 
Other consumer14 33 37 9 9 
Total consumer1,127 1,165 1,231 1,300 1,312 
Total nonperforming loans (c)1,985 2,068 2,046 2,298 2,480 
OREO and foreclosed assets34 33 29 26 26 
Total nonperforming assets$2,019 $2,101 $2,075 $2,324 $2,506 
Nonperforming loans to total loans0.61 %0.66 %0.66 %0.78 %0.86 %
Nonperforming assets to total loans, OREO and foreclosed assets0.62 %0.67 %0.67 %0.79 %0.87 %
Nonperforming assets to total assets0.36 %0.38 %0.38 %0.43 %0.45 %
Allowance for loan and lease losses to nonperforming loans 239 %222 %218 %198 %196 %
(a)Represents loans related to customers in the real estate and construction industries.
(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(c)Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale and loans accounted for under the fair value option.



Table 10: Change in Nonperforming Assets
October 1, 2022 -July 1, 2022 -April 1, 2022 -January 1, 2022 -October 1, 2021 -
In millionsDecember 31, 2022September 30, 2022June 30, 2022March 31, 2022December 31, 2021
Beginning balance$2,101 $2,075 $2,324 $2,506 $2,559 
New nonperforming assets346 438 393 346 395 
Charge-offs and valuation adjustments(174)(79)(55)(62)(53)
Principal activity, including paydowns and payoffs(139)(182)(273)(274)(240)
Asset sales and transfers to loans held for sale(22)(3)(6)(21)(3)
Returned to performing status(93)(148)(308)(171)(152)
Ending balance$2,019 $2,101 $2,075 $2,324 $2,506 




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 9
Accruing Loans Past Due (Unaudited)                  

Under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due
for the periods presented based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Our 2021 Form 10-K included additional information on COVID-19 related loan modifications.

Table 11: Accruing Loans Past Due 30 to 59 Days (a)
December 31September 30June 30March 31December 31
Dollars in millions20222022202220222021
Commercial
Commercial and industrial$169$321$99$185$235
Commercial real estate1911286846
Equipment lease financing20672025
Total commercial208338134273306
Consumer
Residential real estate
Non government insured 190223230239310
Government insured9175686669
Home equity5346434153
Automobile10696102109146
Credit card5044373949
Education
Non government insured 56555
Government insured
2930393638
Other consumer1521384735
Total consumer539541562582705
Total$747$879$696$855$1,011
Supplemental Information
Total accruing loans past due 30-59 days to total loans0.23 %0.28 %0.22 %0.29 %0.35 %
Commercial0.09 %0.16 %0.06 %0.14 %0.16 %
Consumer0.53 %0.54 %0.57 %0.61 %0.74 %
(a)Excludes loans held for sale.



THE PNC FINANCIAL SERVICES GROUP, INC.

Page 10
Accruing Loans Past Due (Unaudited) (Continued)

Table 12: Accruing Loans Past Due 60 to 89 Days (a)
December 31September 30June 30March 31December 31
Dollars in millions20222022202220222021
Commercial
Commercial and industrial$27$55$128$64$72
Commercial real estate44114124
Equipment lease financing46412
Total commercial356514310698
Consumer
Residential real estate
Non government insured 5449534778
Government insured5846423741
Home equity2016141618
Automobile2521242640
Credit card3530252833
Education
Non government insured
24232
Government insured
2022212123
Other consumer1215212622
Total consumer226203202204257
Total$261$268$345$310$355
Supplemental Information
Total accruing loans past due 60-89 days to total loans0.08 %0.08 %0.11 %0.11 %0.12 %
Commercial0.02 %0.03 %0.07 %0.05 %0.05 %
Consumer0.22 %0.20 %0.21 %0.21 %0.27 %
(a)Excludes loans held for sale.




THE PNC FINANCIAL SERVICES GROUP, INC.

Page 11
Accruing Loans Past Due (Unaudited) (Continued)

Table 13: Accruing Loans Past Due 90 Days or More (a)
December 31September 30June 30March 31December 31
Dollars in millions20222022202220222021
Commercial
Commercial and industrial$137$139$138$105$132
Commercial real estate571
Total commercial137144138112133
Consumer
Residential real estate
Non government insured 3230204159
Government insured167166182232269
Automobile766814
Credit card7058546262
Education
Non government insured 22222
Government insured
5761566263
Other consumer1012121517
Total consumer345335332422486
Total$482$479$470$534$619
Supplemental Information
Total accruing loans past due 90 days or more to total loans0.15 %0.15 %0.15 %0.18 %0.21 %
Commercial0.06 %0.07 %0.06 %0.06 %0.07 %
Consumer0.34 %0.34 %0.34 %0.44 %0.51 %
Total accruing loans past due$1,490$1,626$1,511$1,699$1,985
Commercial$380$547$415$491$537
Consumer$1,110$1,079$1,096$1,208$1,448
Total accruing loans past due to total loans0.46 %0.52 %0.49 %0.58 %0.69 %
Commercial0.17 %0.25 %0.20 %0.25 %0.28 %
Consumer1.10 %1.08 %1.12 %1.26 %1.52 %
(a)Excludes loans held for sale.





































THE PNC FINANCIAL SERVICES GROUP, INC.

Page 12

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. As a result of the BBVA acquisition, we have become a coast-to-coast retail bank. Our national expansion strategy is designed to grow customers with digitally-led banking and a thin branch network as we expand into new markets. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to agency and/or third-party standards, and either sold, servicing retained or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management and capital markets related products and services to mid-sized and large corporations, and government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. The Treasury Management business provides corporations with cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services and access to online/mobile information management and reporting services. Capital markets related products and services include foreign exchange, derivatives, fixed income, securities underwriting, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally.

Asset Management Group provides private banking for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is composed of two distinct operating units:
•PNC Private Bank provides products and services to emerging affluent, high net worth and ultra high net worth individuals and their families including investment and retirement planning, customized investment management, credit and cash management solutions, trust management and administration. In addition, multi-generational family planning services are also provided to ultra high net worth individuals and their families which include estate, financial, tax, fiduciary and customized performance reporting through PNC Private Bank Hawthorn.
•Institutional Asset Management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, retirement plan fiduciary investment services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 14: Period End Employees
December 31September 30June 30March 31December 31
20222022202220222021
Full-time employees
Retail Banking32,467 33,288 33,565 33,293 32,563 
Other full-time employees27,427 26,328 25,390 25,037 25,105 
Total full-time employees59,894 59,616 58,955 58,330 57,668 
Part-time employees
Retail Banking1,577 1,520 1,712 1,670 1,669 
Other part-time employees74 77 460 82 89 
Total part-time employees1,651 1,597 2,172 1,752 1,758 
Total61,545 61,213 61,127 60,082 59,426 


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 13
Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
In millions2022202220222022202120222021
Net Income
Retail Banking$752 $560 $322 $340 $362 $1,974 $1,648 
Corporate & Institutional Banking982 929 1,003 956 1,334 3,870 4,324 
Asset Management Group52 90 86 102 106 330 406 
Other(258)45 70 10 (509)(133)(704)
Net income excluding noncontrolling
  interests		$1,528 $1,624 $1,481 $1,408 $1,293 $6,041 $5,674 
  
Revenue
Retail Banking$3,079 $2,742 $2,410 $2,276 $2,408 $10,507 $9,002 
Corporate & Institutional Banking2,451 2,255 2,221 1,964 2,281 8,891 8,354 
Asset Management Group375 396 387 386 388 1,544 1,463 
Other(142)156 98 66 50 178 392 
Total revenue$5,763 $5,549 $5,116 $4,692 $5,127 $21,120 $19,211 
(a)Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects 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.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 14
Table 16: Retail Banking (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2022202220222022202120222021
Income Statement
Net interest income$2,330 $2,017 $1,662 $1,531 $1,634 $7,540 $6,206 
Noninterest income749 725 748 745 774 2,967 2,796 
Total revenue3,079 2,742 2,410 2,276 2,408 10,507 9,002 
Provision for (recapture of) credit losses193 92 55 (81)55 259 (101)
Noninterest expense1,892 1,901 1,913 1,892 1,874 7,598 6,916 
Pretax earnings 994 749 442 465 479 2,650 2,187 
Income taxes232 175 105 109 112 621 508 
Noncontrolling interests10 14 15 16 5 55 31 
Earnings $752 $560 $322 $340 $362 $1,974 $1,648 
Average Balance Sheet
Loans held for sale$737 $837 $957 $1,183 $1,425 $927 $1,328 
Loans
Consumer
Residential real estate$35,286 $34,465 $33,240 $31,528 $30,888 $33,643 $25,230 
Home equity24,126 23,393 22,886 22,458 22,572 23,221 22,387 
Automobile14,793 15,088 15,566 16,274 16,944 15,425 15,787 
Credit card6,882 6,684 6,508 6,401 6,513 6,620 6,182 
Education2,257 2,327 2,410 2,532 2,620 2,381 2,770 
Other consumer2,049 2,092 2,173 2,348 2,612 2,164 2,397 
Total consumer 85,393 84,049 82,783 81,541 82,149 83,454 74,753 
Commercial 11,181 10,881 11,044 11,610 12,844 11,177 14,321 
Total loans$96,574 $94,930 $93,827 $93,151 $94,993 $94,631 $89,074 
Total assets$115,827 $114,619 $113,068 $111,754 $113,782 $113,829 $106,331 
Deposits
Noninterest-bearing $64,031 $65,405 $65,599 $64,058 $65,510 $64,775 $57,729 
Interest-bearing 195,743 198,956 202,801 201,021 197,312 199,614 184,040 
Total deposits$259,774 $264,361 $268,400 $265,079 $262,822 $264,389 $241,769 
Performance Ratios
Return on average assets2.58 %1.94 %1.14 %1.23 %1.26 %1.73 %1.55 %
Noninterest income to total revenue24 %26 %31 %33 %32 %28 %31 %
Efficiency61 %69 %79 %83 %78 %72 %77 %
(a)See note (a) on page 13.

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 15
Retail Banking (Unaudited) (Continued)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions, except as noted2022202220222022202120222021
Supplemental Noninterest Income Information
Asset management and brokerage $128 $131 $135 $134 $131 $528 $465 
Card and cash management$335 $344 $351 $308 $347 $1,338 $1,281 
Lending and deposit services $172 $167 $167 $164 $157 $670 $619 
Residential and commercial mortgage $111 $38 $71 $99 $101 $319 $456 
Residential Mortgage Information
Residential mortgage servicing statistics
   (in billions, except as noted) (a)
Serviced portfolio balance (b)$190 $170 $145 $135 $133 
Serviced portfolio acquisitions$24 $29 $15 $6 $2 $74 $44 
MSR asset value (b)$2.3 $2.1 $1.6 $1.3 $1.1 
MSR capitalization value (in basis points) (b)122 122 112 98 81 
Servicing income: (in millions)
Servicing fees, net (c)$73 $50 $36 $33 $14 $192 $34 
Mortgage servicing rights valuation, net of
   economic hedge		$24 $(30)$13 $2 $2 $9 $64 
Residential mortgage loan statistics
Loan origination volume (in billions)$2.1 $3.1 $4.8 $5.1 $6.6 $15.1 $24.8 
Loan sale margin percentage2.20 %1.97 %1.88 %2.45 %2.55 %2.14 %2.84 %
Percentage of originations represented by:
Purchase volume (d)88 %85 %74 %42 %38 %67 %43 %
Refinance volume12 %15 %26 %58 %62 %33 %57 %
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)65 %65 %64 %64 %64 %64 %65 %
Digital consumer customers (f)76 %78 %78 %78 %79 %78 %79 %
Credit-related statistics
Nonperforming assets $1,003 $1,027 $1,088 $1,168 $1,220 
Net charge-offs - loans and leases$108 $98 $88 $141 $124 $435 $393 
Other statistics
ATMs8,933 9,169 9,301 9,502 9,523 
Branches (g)2,518 2,527 2,535 2,591 2,629 
Brokerage account client assets (in billions) (h)$70 $67 $68 $74 $78 
(a)Represents mortgage loan servicing balances for third parties and the related income.
(b)Presented as of period end, except for average customer-related statistics and net charge-offs, which are both shown for the three months and year ended, respectively.
(c)Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan payments, prepayments and loans that were paid down or paid off during the period.
(d)Mortgages with borrowers as part of residential real estate purchase transactions.
(e)Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.
(f)Represents consumer checking relationships that process the majority of their transactions through non-teller channels.
(g)Reflects all branches and solution centers excluding stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.
(h)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.

Page 16
Table 17: Corporate & Institutional Banking (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions2022202220222022202120222021
Income Statement
Net interest income$1,489 $1,368 $1,253 $1,160 $1,228 $5,270 $4,571 
Noninterest income962 887 968 804 1,053 3,621 3,783 
Total revenue2,451 2,255 2,221 1,964 2,281 8,891 8,354 
Provision for (recapture of) credit losses183 150 (17)(118)(369)198 (646)
Noninterest expense990 890 934 837 975 3,651 3,479 
Pretax earnings1,278 1,215 1,304 1,245 1,675 5,042 5,521 
Income taxes 291 281 298 285 337 1,155 1,183 
Noncontrolling interests5 5 3 4 4 17 14 
Earnings$982 $929 $1,003 $956 $1,334 $3,870 $4,324 
Average Balance Sheet
Loans held for sale$337 $449 $490 $628 $539 $475 $583 
Loans
Commercial
Commercial and industrial $166,176 $160,140 $153,948 $141,622 $137,079 $155,551 $126,928 
Commercial real estate34,663 33,525 32,844 32,433 33,559 33,373 31,584 
Equipment lease financing6,274 6,202 6,201 6,099 6,184 6,195 6,286 
Total commercial 207,113 199,867 192,993 180,154 176,822 195,119 164,798 
Consumer8 7 14 8 12 9 13 
Total loans$207,121 $199,874 $193,007 $180,162 $176,834 $195,128 $164,811 
Total assets$234,120 $224,984 $219,513 $200,724 $198,874 $219,941 $188,470 
Deposits
Noninterest-bearing $67,340 $73,523 $81,028 $86,178 $88,023 $76,956 $79,109 
Interest-bearing79,916 71,925 65,151 68,429 72,397 71,388 72,210 
Total deposits$147,256 $145,448 $146,179 $154,607 $160,420 $148,344 $151,319 
Performance Ratios
Return on average assets1.66 %1.64 %1.83 %1.93 %2.66 %1.76 %2.29 %
Noninterest income to total revenue39 %39 %44 %41 %46 %41 %45 %
Efficiency40 %39 %42 %43 %43 %41 %42 %
Other Information
Consolidated revenue from:
Treasury Management (b)$843 $753 $659 $546 $560 $2,801 $2,169 
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (c)$15 $26 $20 $16 $42 $77 $145 
Commercial mortgage loan servicing income (d)52 66 70 68 90 256 334 
Commercial mortgage servicing rights
   valuation, net of economic hedge		39 53 33 13 16 138 80 
Total$106 $145 $123 $97 $148 $471 $559 
MSR asset value (e)$1,113 $1,132 $988 $886 $740 
Average loans by C&IB business
Corporate Banking$113,619 $109,197 $103,595 $92,503 $87,284 $104,798 $81,069 
Real Estate48,031 45,837 44,202 43,213 44,787 45,335 42,936 
Business Credit30,087 28,930 28,246 26,535 26,065 28,461 24,047 
Commercial Banking8,683 9,008 9,459 10,045 10,924 9,294 12,054 
Other6,701 6,902 7,505 7,866 7,774 7,240 4,705 
Total average loans$207,121 $199,874 $193,007 $180,162 $176,834 $195,128 $164,811 
Credit-related statistics
Nonperforming assets (e)$761 $779 $674 $866 $1,007 
Net charge-offs (recoveries) - loans and leases$100 $33 $11 $(1)$(1)$143 $289 
(a)See note (a) on page 13.
(b)Amounts are reported in net interest income and noninterest income.
(c)Represents commercial mortgage banking income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.
(d)Represents net interest income and noninterest income from loan servicing, net of reduction in commercial mortgage servicing rights due to ammortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.
(e)Presented as of period end.

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Table 18: Asset Management Group (Unaudited) (a)
Three months endedYear ended
December 31September 30June 30March 31December 31December 31December 31
Dollars in millions, except as noted2022202220222022202120222021
Income Statement
Net interest income$152 $165 $153 $138 $130 $608 $476 
Noninterest income223 231 234 248 258 936 987 
Total revenue375 396 387 386 388 1,544 1,463 
Provision for (recapture of) credit losses17 4 5 2 (15)28 (7)
Noninterest expense291 274 270 251 265 1,086 941 
Pretax earnings67 118 112 133 138 430 529 
Income taxes 15 28 26 31 32 100 123 
Earnings$52 $90 $86 $102 $106 $330 $406 
Average Balance Sheet
Loans
Consumer
Residential real estate $8,835 $8,430 $7,835 $6,989 $6,295 $8,029 $5,033 
Other consumer4,388 4,640 4,633 4,541 4,535 4,550 4,321 
Total consumer 13,223 13,070 12,468 11,530 10,830 12,579 9,354 
Commercial1,291 1,328 1,560 1,848 2,093 1,505 1,746 
Total loans$14,514 $14,398 $14,028 $13,378 $12,923 $14,084 $11,100 
Total assets$14,935 $14,820 $14,449 $13,801 $13,317 $14,505 $11,677 
Deposits
Noninterest-bearing $2,107 $2,286 $2,824 $3,458 $3,025 $2,664 $2,919 
Interest-bearing25,651 27,054 28,839 29,830 26,318 27,830 22,782 
Total deposits$27,758 $29,340 $31,663 $33,288 $29,343 $30,494 $25,701 
Performance Ratios
Return on average assets1.38 %2.41 %2.39 %3.00 %3.16 %2.28 %3.48 %
Noninterest income to total revenue59 %58 %60 %64 %66 %61 %67 %
Efficiency78 %69 %70 %65 %68 %70 %64 %
Other Information
Nonperforming assets (b)$56 $95 $114 $72 $62 
Net charge-offs (recoveries) - loans and leases $18 $(2)$(1)$2 $1 $17 $2 
Brokerage account client assets (in billions) (b)$4 $4 $4 $5 $5 
Client Assets Under Administration
     (in billions) (b) (c)
Discretionary client assets under management$173 $166 $167 $182 $192 
Nondiscretionary client assets under administration152 148 153 165 175 
Total$325 $314 $320 $347 $367 
Discretionary client assets under management
PNC Private Bank$105 $99 $103 $115 $123 
Institutional Asset Management68 67 64 67 69 
Total$173 $166 $167 $182 $192 
(a)See note (a) on page 13.
(b)As of period end.
(c)Excludes brokerage account client assets.

THE PNC FINANCIAL SERVICES GROUP, INC.

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Glossary of Terms

2019 Tailoring Rules – Rules adopted by the federal banking agencies to better tailor the application of their capital, liquidity, and enhanced prudential requirements for banking organizations to the asset size and risk profile (as measured by certain regulatory metrics) of the banking organization. Effective January 1, 2020, the agencies' capital and liquidity rules classify all BHCs with $100 billion or more in total assets into one of four categories (Category I, Category II, Category III, and Category IV).

Adjusted average total assets – Primarily consisted of total average quarterly (or annual) assets plus/less unrealized losses (gains) on investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Allowance for credit losses (ACL) – A valuation account that is deducted from or added to the amortized cost basis of the related
financial assets to present the net carrying value at the amount expected to be collected on the financial asset.

Amortized cost basis – Amount at which a financial asset is originated or acquired, adjusted for applicable accretion or amortization of premiums, discounts and net deferred fees or costs, collection of cash, charge-offs, foreign exchange and fair value hedge accounting adjustments.

Basel III common equity Tier 1 (CET1) capital (Tailoring Rules) – Common stock plus related surplus, net of treasury stock, plus retained earnings, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items (net of associated deferred tax liabilities) individually exceed 25% of our adjusted Basel III common equity Tier 1 capital.

Basel III common equity Tier 1 capital ratio – Common equity Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Tier 1 capital – Common equity Tier 1 capital, plus qualifying preferred stock, plus certain trust preferred capital securities, plus certain noncontrolling interests that are held by others and plus/less other adjustments.

Basel III Tier 1 capital ratio – Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Total capital – Tier 1 capital plus qualifying subordinated debt, plus certain trust preferred securities, plus, under the Basel III transitional rules and the standardized approach, the allowance for loan and lease losses included in Tier 2 capital and other.

Basel III Total capital ratio – Basel III Total capital divided by period-end risk-weighted assets (as applicable).

BBVA – BBVA USA Bancshares, Inc.

BBVA, S.A. – Banco Bilbao Vizcaya Argentaria, S.A.

BBVA USA – BBVA USA, the Alabama-chartered bank subsidiary of BBVA USA Bancshares, Inc.

Charge-off – Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Common shareholders’ equity – Total shareholders' equity less the liquidation value of preferred stock.

Credit valuation adjustment – Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

Criticized commercial loans – Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

Current Expected Credit Loss (CECL) – Methodology for estimating the allowance for credit losses on in-scope financial assets held at amortized cost and unfunded lending related commitments which uses a combination of expected losses over a reasonable and supportable forecast period, a reversion period and long run average credit losses for their estimated contractual term.

Discretionary client assets under management – Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

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Earning assets – Assets that generate income, which include: interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

Effective duration – A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

Efficiency – Noninterest expense divided by total revenue.

Fair value – The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fee income – Refers to the following categories within Noninterest income: Asset management and brokerage, Capital markets and advisory, Card and cash management, Lending and deposit services, and Residential and commercial mortgage.

FICO score – A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

GAAP – Accounting principles generally accepted in the United States of America.

Leverage ratio – Basel III Tier 1 capital divided by average quarterly adjusted total assets.

Nondiscretionary client assets under administration – Assets we hold for our customers/clients in a nondiscretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Nonperforming assets – Nonperforming assets include nonperforming loans, OREO and foreclosed assets. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans – Loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable, including TDRs which have not returned to performing status. Interest income is not recognized on nonperforming loans. Nonperforming loans exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale and loans accounted for under the fair value option.

Operating leverage – The period to period dollar or percentage change in total revenue less the dollar or percentage change in noninterest expense. A positive variance indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative variance implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Other real estate owned (OREO) and foreclosed assets – Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed assets include real and personal property. Certain assets that have a government-guarantee which are classified as other receivables are excluded.

Purchased credit deteriorated assets (PCD) – Acquired loans or debt securities that, at acquisition, are determined to have experienced a more-than-insignificant deterioration in credit quality since origination or issuance.

Risk-weighted assets – Computed by the assignment of specific risk-weights (as defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Servicing rights – Intangible assets or liabilities created by an obligation to service assets for others. Typical servicing rights include the right to receive a fee for collecting and forwarding payments on loans and related taxes and insurance premiums held in escrow.

Supplementary leverage ratio – Basel III Tier 1 capital divided by Supplementary leverage exposure.

Taxable-equivalent interest income – The interest income earned on certain assets that is completely or partially exempt from federal income tax. These tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

THE PNC FINANCIAL SERVICES GROUP, INC.

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Troubled debt restructuring (TDR) – A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Unfunded lending related commitments – Standby letters of credit, financial guarantees, commitments to extend credit and similar unfunded obligations that are not unilaterally, unconditionally, cancelable at PNC’s option.

Yield curve – A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.