Document

Exhibit 99.2

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2023

(UNAUDITED)


Consolidated Results:			Page
Income Statement			1
Balance Sheet			2
Average Balance Sheet			3
Details of Net Interest Margin			4

Loans			5
Allowance for Credit Losses			6-7
Nonperforming Assets			8
Accruing Loans Past Due			9-11

Business Segment Results:
Descriptions			12
Period End Employees			12
Net Income and Revenue			13
Retail Banking			14-15
Corporate & Institutional Banking			16
Asset Management Group			17

Glossary of Terms			18-19

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on October 13, 2023. 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

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. For a description of each updated noninterest income revenue stream, see Note 1 Accounting Policies in our 2022 Form 10-K.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Third Quarter 2023 Financial Supplement (Unaudited)
Financial Supplement Table Reference

Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4

5	Details of Loans	5
6	Change in Allowance for Loan and Lease Losses	6
7	Components of the Provision for (Recapture of) Credit Losses	7
8	Allowance for Credit Losses by Loan Class	7
9	Nonperforming Assets by Type	8
10	Change in Nonperforming Assets	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	10
13	Accruing Loans Past Due 90 Days or More	11
14	Period End Employees	12
15	Summary of Business Segment Net Income and Revenue	13
16	Retail Banking	14-15
17	Corporate & Institutional Banking	16
18	Asset Management Group	17


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
In millions, except per share data	2023			2023			2023			2022			2022			2023			2022
Interest Income
Loans	$	4,643		$	4,523		$	4,258		$	3,860		$	3,138		$	13,424		$	7,935
Investment securities	892			883			885			836			715			2,660			1,890
Other	668			538			516			413			279			1,722			502
Total interest income	6,203			5,944			5,659			5,109			4,132			17,806			10,327
Interest Expense
Deposits	1,792			1,531			1,291			812			340			4,614			455
Borrowed funds	993			903			783			613			317			2,679			542
Total interest expense	2,785			2,434			2,074			1,425			657			7,293			997
Net interest income	3,418			3,510			3,585			3,684			3,475			10,513			9,330
Noninterest Income
Asset management and brokerage	348			348			356			345			357			1,052			1,099
Capital markets and advisory	168			213			262			336			299			643			960
Card and cash management	689			697			659			671			671			2,045			1,962
Lending and deposit services	315			298			306			296			287			919			838
Residential and commercial mortgage	201			98			177			184			143			476			463
Other (a) (b)	94			129			258			247			317			481			705
Total noninterest income	1,815			1,783			2,018			2,079			2,074			5,616			6,027
Total revenue	5,233			5,293			5,603			5,763			5,549			16,129			15,357
Provision For Credit Losses	129			146			235			408			241			510			69
Noninterest Expense
Personnel	1,773			1,846			1,826			1,943			1,805			5,445			5,301
Occupancy	244			244			251			247			241			739			745
Equipment	347			349			350			369			344			1,046			1,026
Marketing	93			109			74			106			93			276			249
Other	788			824			820			809			797			2,432			2,375
Total noninterest expense	3,245			3,372			3,321			3,474			3,280			9,938			9,696
Income before income taxes and noncontrolling interests	1,859			1,775			2,047			1,881			2,028			5,681			5,592
Income taxes	289			275			353			333			388			917			1,027




Net income	1,570			1,500			1,694			1,548			1,640			4,764			4,565
Less: Net income attributable to noncontrolling interests	16			17			17			20			16			50			52
Preferred stock dividends (c)	104			127			68			120			65			299			181
Preferred stock discount accretion and redemptions	2			2			2			1			1			6			4
Net income attributable to common shareholders	$	1,448		$	1,354		$	1,607		$	1,407		$	1,558		$	4,409		$	4,328
Earnings Per Common Share
Basic	$	3.60		$	3.36		$	3.98		$	3.47		$	3.78		$	10.95		$	10.39


Diluted	$	3.60		$	3.36		$	3.98		$	3.47		$	3.78		$	10.94		$	10.39


Average Common Shares Outstanding
Basic	400			401			401			404			410			401			414
Diluted	400			401			402			404			410			401			415
Efficiency	62		%	64		%	59		%	60		%	59		%	62		%	63		%
Noninterest income to total revenue	35		%	34		%	36		%	36		%	37		%	35		%	39		%
Effective tax rate (d)	15.5		%	15.5		%	17.2		%	17.7		%	19.1		%	16.1		%	18.4		%

(a)Includes net gains (losses) on sale of securities of less than $1 million, $(2) million, less than $1 million, $(3) million and less than $1 million for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively, and $(2) million and $(4) million for the nine months ended September 30, 2023 and September 30, 2022, respectively.

(b)Includes Visa Class B derivative fair value adjustments of $(51) million, $(83) million, $(45) million, $(41) million and $13 million for the quarters ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively, and $(179) million and $1 million for the nine months ended September 30, 2023 and September 30, 2022, respectively.

(c)Dividends are payable quarterly other than Series R and Series S preferred stock, which are payable semiannually.

(d)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)


	September 30		June 30		March 31		December 31		September 30
In millions, except par value	2023		2023		2023		2022		2022
Assets
Cash and due from banks	$	5,300	$	6,191	$	5,940	$	7,043	$	6,548
Interest-earning deposits with banks (a)	41,484		38,259		33,865		27,320		40,278
Loans held for sale (b)	923		835		998		1,010		1,126
Investment securities – available for sale	40,590		41,787		43,220		44,159		45,798
Investment securities – held to maturity	91,797		93,874		95,019		95,175		90,653
Loans (b)	318,416		321,761		326,475		326,025		315,400
Allowance for loan and lease losses	(4,767)		(4,737)		(4,741)		(4,741)		(4,581)
Net loans	313,649		317,024		321,734		321,284		310,819
Equity investments	8,046		8,015		8,323		8,437		8,130
Mortgage servicing rights	4,006		3,455		3,293		3,423		3,206
Goodwill	10,987		10,987		10,987		10,987		10,987
Other (b)	40,552		37,780		38,398		38,425		41,932
Total assets	$	557,334	$	558,207	$	561,777	$	557,263	$	559,477
Liabilities
Deposits
Noninterest-bearing	$	105,672	$	110,527	$	118,014	$	124,486	$	138,423
Interest-bearing	317,937		316,962		318,819		311,796		299,771
Total deposits	423,609		427,489		436,833		436,282		438,194
Borrowed funds
Federal Home Loan Bank borrowings	36,000		34,000		32,020		32,075		30,075
Senior debt	22,407		22,005		19,622		16,657		13,357
Subordinated debt	4,728		5,548		5,630		6,307		7,286
Other (b)	3,032		3,831		3,550		3,674		3,915
Total borrowed funds	66,167		65,384		60,822		58,713		54,633
Allowance for unfunded lending related commitments	640		663		672		694		682
Accrued expenses and other liabilities (b)	17,437		15,325		14,376		15,762		19,245
Total liabilities	507,853		508,861		512,703		511,451		512,754
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800,000,000 shares, issued 543,012,047, 543,012,047, 542,874,855, 542,874,829 and 542,768,817 shares	2,715		2,715		2,714		2,714		2,714
Capital surplus	19,971		19,934		19,864		18,376		19,810
Retained earnings	56,170		55,346		54,598		53,572		52,777
Accumulated other comprehensive income (loss)	(10,261)		(9,525)		(9,108)		(10,172)		(10,486)
Common stock held in treasury at cost: 144,671,252, 144,763,739, 143,781,812, 142,298,689 and 138,582,781 shares	(19,141)		(19,150)		(19,024)		(18,716)		(18,127)
Total shareholders’ equity	49,454		49,320		49,044		45,774		46,688
Noncontrolling interests	27		26		30		38		35
Total equity	49,481		49,346		49,074		45,812		46,723
Total liabilities and equity	$	557,334	$	558,207	$	561,777	$	557,263	$	559,477

(a)Amounts include balances held with the Federal Reserve Bank of $41.1 billion, $37.8 billion, $32.5 billion, $26.9 billion and $39.8 billion as of September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2023 Form 10-Q included, and our third quarter 2023 Form 10-Q 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 ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions	2023		2023		2023		2022		2022		2023		2022
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	31,020	$	31,180	$	31,850	$	31,818	$	32,500	$	31,347	$	45,633
Non-agency	627		663		689		714		748		659		885
Commercial mortgage-backed	2,880		2,948		3,102		3,377		3,489		2,976		4,354
Asset-backed	989		575		218		105		110		597		2,885
U.S. Treasury and government agencies	7,996		8,231		9,088		10,345		11,789		8,434		25,448
Other	2,931		2,997		3,263		3,370		3,506		3,062		4,189
Total securities available for sale	46,443		46,594		48,210		49,729		52,142		47,075		83,394
Securities held to maturity
Residential mortgage-backed	44,112		45,033		45,616		44,184		39,329		44,914		24,317
Commercial mortgage-backed	2,346		2,396		2,453		2,323		2,069		2,398		1,089
Asset-backed	6,463		6,712		7,026		6,995		6,571		6,732		3,587
U.S. Treasury and government agencies	37,043		36,912		36,748		36,441		34,279		36,902		21,243
Other	3,256		3,391		3,338		3,218		2,600		3,329		1,585
Total securities held to maturity	93,220		94,444		95,181		93,161		84,848		94,275		51,821
Total investment securities	139,663		141,038		143,391		142,890		136,990		141,350		135,215
Loans
Commercial and industrial	175,206		180,878		182,017		179,111		172,788		179,342		165,142
Commercial real estate	36,032		35,938		36,110		36,181		35,140		36,026		34,541
Equipment lease financing	6,441		6,364		6,452		6,275		6,202		6,419		6,168
Consumer	54,744		55,070		55,020		54,809		54,563		54,944		54,692
Residential real estate	47,081		46,284		45,927		45,499		44,333		46,435		42,378
Total loans	319,504		324,534		325,526		321,875		313,026		323,166		302,921
Interest-earning deposits with banks (c)	38,352		31,433		34,054		30,395		31,892		34,629		44,641
Other interest-earning assets	8,777		9,215		8,806		9,690		9,560		8,933		9,637
Total interest-earning assets	506,296		506,220		511,777		504,850		491,468		508,078		492,414
Noninterest-earning assets	48,667		49,287		50,555		52,356		55,629		49,496		56,029
Total assets	$	554,963	$	555,507	$	562,332	$	557,206	$	547,097	$	557,574	$	548,443
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	64,310	$	63,691	$	65,753	$	63,944	$	60,934	$	64,579	$	60,510
Demand	123,730		124,111		124,376		122,501		120,358		124,070		117,485
Savings	100,643		102,415		104,408		102,020		106,761		102,475		108,112
Time deposits	25,872		22,342		20,519		12,982		10,020		22,931		12,125
Total interest-bearing deposits	314,555		312,559		315,056		301,447		298,073		314,055		298,232
Borrowed funds
Federal Home Loan Bank borrowings	34,109		33,752		32,056		30,640		16,708		33,313		7,957
Senior debt	23,479		20,910		19,679		16,312		14,597		21,370		16,249
Subordinated debt	5,293		5,850		6,100		6,933		7,614		5,745		7,131
Other	4,584		5,180		5,133		5,346		5,342		4,964		5,457
Total borrowed funds	67,465		65,692		62,968		59,231		44,261		65,392		36,794
Total interest-bearing liabilities	382,020		378,251		378,024		360,678		342,334		379,447		335,026
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	107,981		113,178		121,176		133,461		141,167		114,063		148,062
Accrued expenses and other liabilities	15,629		15,063		16,014		17,461		15,699		15,567		16,061
Equity	49,333		49,015		47,118		45,606		47,897		48,497		49,294
Total liabilities and equity	$	554,963	$	555,507	$	562,332	$	557,206	$	547,097	$	557,574	$	548,443

(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 $37.9 billion, $30.6 billion, $33.5 billion, $30.0 billion and $31.5 billion for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022 and $34.0 billion and $44.2 billion for the nine months ended September 30, 2023 and September 30,2022, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 4


Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
	2023		2023		2023		2022		2022		2023		2022
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.73	%	2.67	%	2.67	%	2.54	%	2.36	%	2.69	%	2.01	%
Non-agency	10.42	%	9.39	%	8.53	%	7.85	%	7.62	%	9.42	%	7.57	%
Commercial mortgage-backed	3.41	%	2.84	%	2.62	%	2.75	%	2.70	%	2.95	%	2.49	%
Asset-backed	6.30	%	6.56	%	7.04	%	11.98	%	6.31	%	6.44	%	1.56	%
U.S. Treasury and government agencies	2.28	%	2.20	%	2.05	%	1.96	%	1.73	%	2.17	%	1.36	%
Other	2.58	%	2.55	%	2.47	%	2.39	%	2.47	%	2.53	%	2.61	%
Total securities available for sale	2.87	%	2.73	%	2.64	%	2.52	%	2.33	%	2.75	%	1.91	%
Securities held to maturity
Residential mortgage-backed	2.72	%	2.72	%	2.74	%	2.60	%	2.30	%	2.73	%	2.14	%
Commercial mortgage-backed	5.55	%	5.35	%	4.95	%	4.57	%	3.50	%	5.28	%	3.04	%
Asset-backed	4.36	%	4.10	%	3.97	%	3.44	%	2.58	%	4.14	%	2.31	%
U.S. Treasury and government agencies	1.34	%	1.34	%	1.33	%	1.30	%	1.19	%	1.34	%	1.14	%
Other	4.57	%	4.65	%	4.62	%	4.47	%	4.10	%	4.61	%	4.12	%
Total securities held to maturity	2.42	%	2.41	%	2.41	%	2.27	%	1.96	%	2.41	%	1.82	%
Total investment securities	2.57	%	2.52	%	2.49	%	2.36	%	2.10	%	2.52	%	1.88	%
Loans
Commercial and industrial	5.86	%	5.70	%	5.34	%	4.70	%	3.69	%	5.64	%	3.14	%
Commercial real estate	6.59	%	6.37	%	6.02	%	5.28	%	4.27	%	6.33	%	3.44	%
Equipment lease financing	4.72	%	4.51	%	4.28	%	4.18	%	3.85	%	4.51	%	3.73	%
Consumer	6.89	%	6.57	%	6.34	%	5.88	%	5.32	%	6.60	%	4.89	%
Residential real estate	3.52	%	3.41	%	3.35	%	3.28	%	3.21	%	3.43	%	3.12	%
Total loans	5.75	%	5.57	%	5.29	%	4.75	%	3.98	%	5.54	%	3.50	%
Interest-earning deposits with banks	5.44	%	5.10	%	4.58	%	3.76	%	2.32	%	5.05	%	0.87	%
Other interest-earning assets	6.66	%	5.96	%	5.75	%	5.20	%	3.94	%	6.12	%	2.92	%
Total yield on interest-earning assets	4.87	%	4.70	%	4.46	%	4.02	%	3.35	%	4.68	%	2.80	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	3.10	%	2.79	%	2.40	%	1.75	%	0.85	%	2.76	%	0.36	%
Demand	2.15	%	1.89	%	1.58	%	1.14	%	0.59	%	1.87	%	0.26	%
Savings	1.49	%	1.26	%	1.03	%	0.50	%	0.09	%	1.26	%	0.06	%
Time deposits	3.67	%	3.26	%	3.00	%	1.45	%	0.26	%	3.34	%	0.18	%
Total interest-bearing deposits	2.26	%	1.96	%	1.66	%	1.07	%	0.45	%	1.96	%	0.20	%
Borrowed funds
Federal Home Loan Bank borrowings	5.55	%	5.28	%	4.80	%	3.92	%	2.60	%	5.22	%	2.20	%
Senior debt	6.17	%	5.91	%	5.39	%	4.30	%	2.96	%	5.85	%	1.80	%
Subordinated debt	6.52	%	6.19	%	5.69	%	4.79	%	3.43	%	6.12	%	2.30	%
Other	4.49	%	3.79	%	3.70	%	3.24	%	2.20	%	3.98	%	1.54	%
Total borrowed funds	5.77	%	5.44	%	4.98	%	4.07	%	2.81	%	5.41	%	1.95	%
Total rate on interest-bearing liabilities	2.86	%	2.56	%	2.20	%	1.55	%	0.75	%	2.54	%	0.39	%
Interest rate spread	2.01	%	2.14	%	2.26	%	2.47	%	2.60	%	2.14	%	2.41	%
Benefit from use of noninterest-bearing sources (b)	0.70	%	0.65	%	0.58	%	0.45	%	0.22	%	0.64	%	0.13	%
Net interest margin	2.71	%	2.79	%	2.84	%	2.92	%	2.82	%	2.78	%	2.54	%

(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 September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022 were $36 million, $37 million, $38 million, $36 million and $29 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2023 and September 30, 2022 were $111 million and $76 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)


	September 30		June 30		March 31		December 31		September 30
In millions	2023		2023		2023		2022		2022
Commercial
Commercial and industrial
Manufacturing	$	29,163	$	30,586	$	32,132	$	30,845	$	28,629
Retail/wholesale trade	28,284		28,751		29,172		29,176		27,532
Financial services	22,770		21,823		22,534		21,320		21,590
Service providers	21,680		22,277		23,186		23,548		22,043
Real estate related (a)	16,182		17,200		17,548		17,780		17,513
Technology, media & telecommunications	10,989		11,158		11,338		11,845		11,366
Health care	10,092		10,186		10,537		10,649		10,420
Transportation and warehousing	7,891		8,048		7,824		7,858		7,977
Other industries	27,112		27,600		28,726		29,198		26,743
Total commercial and industrial	174,163		177,629		182,997		182,219		173,813
Commercial real estate	35,776		35,928		35,991		36,316		35,592
Equipment lease financing	6,493		6,400		6,424		6,514		6,192
Total commercial	216,432		219,957		225,412		225,049		215,597
Consumer
Residential real estate	47,359		46,834		46,067		45,889		45,057
Home equity	26,159		26,200		26,203		25,983		25,367
Automobile	14,940		15,065		14,923		14,836		15,025
Credit card	7,060		7,092		6,961		7,069		6,774
Education	2,020		2,058		2,131		2,173		2,287
Other consumer	4,446		4,555		4,778		5,026		5,293
Total consumer	101,984		101,804		101,063		100,976		99,803
Total loans	$	318,416	$	321,761	$	326,475	$	326,025	$	315,400

(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 ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions	2023			2023			2023			2022			2022			2023			2022
Allowance for loan and lease losses
Beginning balance	$	4,737		$	4,741		$	4,741		$	4,581		$	4,462		$	4,741		$	4,868
Adoption of ASU 2022-02 (a)							(35)									(35)
Beginning balance, adjusted	4,737			4,741			4,706			4,581			4,462			4,706			4,868
Gross charge-offs:
Commercial and industrial	(43)			(45)			(104)			(121)			(65)			(192)			(136)
Commercial real estate	(25)			(87)			(12)			(22)			(7)			(124)			(22)
Equipment lease financing	(4)			(3)			(4)			(2)			(1)			(11)			(4)
Residential real estate	(1)			(2)			(3)			(2)			(2)			(6)			(9)
Home equity	(4)			(5)			(6)			(6)			(3)			(15)			(9)
Automobile	(30)			(28)			(33)			(34)			(32)			(91)			(118)
Credit card	(78)			(80)			(74)			(62)			(59)			(232)			(194)
Education	(4)			(5)			(4)			(4)			(4)			(13)			(12)
Other consumer	(44)			(38)			(42)			(64)			(49)			(124)			(164)
Total gross charge-offs	(233)			(293)			(282)			(317)			(222)			(808)			(668)
Recoveries:
Commercial and industrial	45			33			20			33			23			98			68
Commercial real estate	2						2			2			1			4			3
Equipment lease financing	2			3			3			1			1			8			7
Residential real estate	3			4			3			2			4			10			15
Home equity	12			13			11			13			19			36			58
Automobile	26			27			24			24			30			77			100
Credit card	10			11			11			8			12			32			43
Education	1			2			2			1			1			5			4
Other consumer	11			6			11			9			12			28			31
Total recoveries	112			99			87			93			103			298			329
Net (charge-offs) / recoveries:
Commercial and industrial	2			(12)			(84)			(88)			(42)			(94)			(68)
Commercial real estate	(23)			(87)			(10)			(20)			(6)			(120)			(19)
Equipment lease financing	(2)						(1)			(1)						(3)			3
Residential real estate	2			2									2			4			6
Home equity	8			8			5			7			16			21			49
Automobile	(4)			(1)			(9)			(10)			(2)			(14)			(18)
Credit card	(68)			(69)			(63)			(54)			(47)			(200)			(151)
Education	(3)			(3)			(2)			(3)			(3)			(8)			(8)
Other consumer	(33)			(32)			(31)			(55)			(37)			(96)			(133)
Total net (charge-offs)	(121)			(194)			(195)			(224)			(119)			(510)			(339)
Provision for credit losses (b)	153			189			229			380			241			571			59
Other	(2)			1			1			4			(3)						(7)
Ending balance	$	4,767		$	4,737		$	4,741		$	4,741		$	4,581		$	4,767		$	4,581
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(23)		$	(99)		$	(95)		$	(109)		$	(48)		$	(217)		$	(84)
Consumer net charge-offs	(98)			(95)			(100)			(115)			(71)			(293)			(255)
Total net charge-offs	$	(121)		$	(194)		$	(195)		$	(224)		$	(119)		$	(510)		$	(339)
Net charge-offs to average loans (annualized)	0.15		%	0.24		%	0.24		%	0.28		%	0.15		%	0.21		%	0.15		%
Commercial	0.04		%	0.18		%	0.17		%	0.20		%	0.09		%	0.13		%	0.05		%
Consumer	0.38		%	0.38		%	0.40		%	0.45		%	0.28		%	0.39		%	0.35		%

(a)Represents the impact of adopting ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023. Our second quarter 2023 Form 10-Q included, and our third quarter 2023 Form 10-Q will include additional information related to our adoption of this ASU.

(b)See Table 7 for the components of the Provision for credit losses being reported on the Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 7

Allowance for Credit Losses (Unaudited) (Continued)

Table 7: Components of the Provision for Credit Losses


	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions	2023		2023		2023		2022		2022		2023		2022
Provision for credit losses
Loans and leases	$	153	$	189	$	229	$	380	$	241	$	571	$	59
Unfunded lending related commitments	(23)		(9)		(22)		12		1		(54)		20
Investment securities	(10)				(1)		10		3		(11)		7
Other financial assets	9		(34)		29		6		(4)		4		(17)
Total provision for credit losses	$	129	$	146	$	235	$	408	$	241	$	510	$	69

Table 8: Allowance for Credit Losses by Loan Class (a)


	September 30, 2023						June 30, 2023						September 30, 2022
Dollars in millions	Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans		Allowance Amount		Total Loans		% of Total Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial	$	1,843	$	174,163	1.06	%	$	1,836	$	177,629	1.03	%	$	1,974	$	173,813	1.14	%
Commercial real estate	1,270		35,776		3.55	%	1,206		35,928		3.36	%	994		35,592		2.79	%
Equipment lease financing	109		6,493		1.68	%	100		6,400		1.56	%	93		6,192		1.50	%
Total commercial	3,222		216,432		1.49	%	3,142		219,957		1.43	%	3,061		215,597		1.42	%
Consumer
Residential real estate	62		47,359		0.13	%	72		46,834		0.15	%	50		45,057		0.11	%
Home equity	288		26,159		1.10	%	294		26,200		1.12	%	215		25,367		0.85	%
Automobile	169		14,940		1.13	%	188		15,065		1.25	%	214		15,025		1.42	%
Credit card	762		7,060		10.79	%	765		7,092		10.79	%	732		6,774		10.81	%
Education	56		2,020		2.77	%	61		2,058		2.96	%	64		2,287		2.80	%
Other consumer	208		4,446		4.68	%	215		4,555		4.72	%	245		5,293		4.63	%
Total consumer	1,545		101,984		1.51	%	1,595		101,804		1.57	%	1,520		99,803		1.52	%
Total	4,767		$	318,416	1.50	%	4,737		$	321,761	1.47	%	4,581		$	315,400	1.45	%
Allowance for unfunded lending related commitments	640						663						682
Allowance for credit losses	$	5,407					$	5,400					$	5,263

Supplemental Information
Allowance for credit losses to total loans					1.70	%					1.68	%					1.67	%
Commercial					1.73	%					1.68	%					1.70	%
Consumer					1.62	%					1.67	%					1.60	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $131 million, $171 million and $162 million at September 30, 2023, June 30, 2023 and September 30, 2022, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 8

Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type


	September 30			June 30			March 31			December 31			September 30
Dollars in millions	2023			2023			2023			2022			2022
Nonperforming loans (a)
Commercial
Commercial and industrial
Service providers	$	162		$	114		$	128		$	174		$	223
Technology, media & telecommunications	51			55			22			20			20
Transportation and warehousing	44			33			24			27			29
Retail/wholesale trade	41			41			82			151			158
Health care	37			60			57			50			45
Manufacturing	34			50			105			85			88
Real estate related (b)	31			42			43			50			47
Other industries	58			75			87			106			138
Total commercial and industrial	458			470			548			663			748
Commercial real estate	723			350			337			189			148
Equipment lease financing	30			7			6			6			7
Total commercial	1,211			827			891			858			903
Consumer (c)
Residential real estate	330			429			432			424			429
Home equity	446			506			523			526			530
Automobile	114			133			145			155			167
Credit card	11			10			9			8			6
Other consumer	11			8			10			14			33
Total consumer	912			1,086			1,119			1,127			1,165
Total nonperforming loans (d)	2,123			1,913			2,010			1,985			2,068
OREO and foreclosed assets	35			36			38			34			33
Total nonperforming assets	$	2,158		$	1,949		$	2,048		$	2,019		$	2,101
Nonperforming loans to total loans	0.67		%	0.59		%	0.62		%	0.61		%	0.66		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.68		%	0.61		%	0.63		%	0.62		%	0.67		%
Nonperforming assets to total assets	0.39		%	0.35		%	0.36		%	0.36		%	0.38		%
Allowance for loan and lease losses to nonperforming loans	225		%	248		%	236		%	239		%	222		%

(a)In connection with the adoption of ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, nonperforming loan amounts after January 1, 2023 include certain loans whose terms were modified as a result of a borrower’s financial difficulty. Prior year amounts included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. Our second quarter 2023 Form 10-Q included, and our third quarter 2023 Form 10-Q will include additional information related to our adoption of this ASU.

(b)Represents loans related to customers in the real estate and construction industries.

(c)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.

(d)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


	July 1, 2023 -		April 1, 2023 -		January 1, 2023 -		October 1, 2022 -		July 1, 2022 -
In millions	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
Beginning balance	$	1,949	$	2,048	$	2,019	$	2,101	$	2,075

New nonperforming assets	641		410		452		346		438
Charge-offs and valuation adjustments	(91)		(135)		(122)		(174)		(79)
Principal activity, including paydowns and payoffs	(112)		(297)		(172)