January 16, 2024 - EX-99.2 - 8-K: Current report filing | The PNC Financial Services Group, Inc. (PNC)

Exhibit 99.2

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2023

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH 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 January 16, 2024. 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.


THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth 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															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
In millions, except per share data	2023			2023			2023			2023			2022			2023			2022
Interest Income
Loans	$	4,875		$	4,643		$	4,523		$	4,258		$	3,860		$	18,299		$	11,795
Investment securities	885			892			883			885			836			3,545			2,726
Other	742			668			538			516			413			2,464			915
Total interest income	6,502			6,203			5,944			5,659			5,109			24,308			15,436
Interest Expense
Deposits	1,995			1,792			1,531			1,291			812			6,609			1,267
Borrowed funds	1,104			993			903			783			613			3,783			1,155
Total interest expense	3,099			2,785			2,434			2,074			1,425			10,392			2,422
Net interest income	3,403			3,418			3,510			3,585			3,684			13,916			13,014
Noninterest Income
Asset management and brokerage	360			348			348			356			345			1,412			1,444
Capital markets and advisory	309			168			213			262			336			952			1,296
Card and cash management	688			689			697			659			671			2,733			2,633
Lending and deposit services	314			315			298			306			296			1,233			1,134
Residential and commercial mortgage	149			201			98			177			184			625			647
Other (a) (b)	138			94			129			258			247			619			952
Total noninterest income	1,958			1,815			1,783			2,018			2,079			7,574			8,106
Total revenue	5,361			5,233			5,293			5,603			5,763			21,490			21,120
Provision For Credit Losses	232			129			146			235			408			742			477
Noninterest Expense
Personnel	1,983			1,773			1,846			1,826			1,943			7,428			7,244
Occupancy	243			244			244			251			247			982			992
Equipment	365			347			349			350			369			1,411			1,395
Marketing	74			93			109			74			106			350			355
Other	1,409			788			824			820			809			3,841			3,184
Total noninterest expense	4,074			3,245			3,372			3,321			3,474			14,012			13,170
Income before income taxes and noncontrolling interests	1,055			1,859			1,775			2,047			1,881			6,736			7,473
Income taxes	172			289			275			353			333			1,089			1,360




Net income	883			1,570			1,500			1,694			1,548			5,647			6,113
Less: Net income attributable to noncontrolling interests	19			16			17			17			20			69			72
Preferred stock dividends (c)	118			104			127			68			120			417			301
Preferred stock discount accretion and redemptions	2			2			2			2			1			8			5
Net income attributable to common shareholders	$	744		$	1,448		$	1,354		$	1,607		$	1,407		$	5,153		$	5,735
Earnings Per Common Share
Basic	$	1.85		$	3.60		$	3.36		$	3.98		$	3.47		$	12.80		$	13.86


Diluted	$	1.85		$	3.60		$	3.36		$	3.98		$	3.47		$	12.79		$	13.85


Average Common Shares Outstanding
Basic	400			400			401			401			404			401			412
Diluted	401			400			401			402			404			401			412
Efficiency	76		%	62		%	64		%	59		%	60		%	65		%	62		%
Noninterest income to total revenue	37		%	35		%	34		%	36		%	36		%	35		%	38		%
Effective tax rate (d)	16.3		%	15.5		%	15.5		%	17.2		%	17.7		%	16.2		%	18.2		%

(a)Includes net gains (losses) on sale of securities of less than $1 million, less than $1 million, $(2) million, less than $1 million and $(3) million for the quarters ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022 respectively, and $(2) million and $(7) million for the twelve months ended December 31, 2023 and December 31, 2022, respectively.

(b)Includes Visa Class B derivative fair value adjustments of $(100) million, $(51) million, $(83) million, $(45) million and $(41) million for the quarters ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, respectively, and $(279) million and $(40) million for the twelve months ended December 31, 2023 and December 31, 2022, respectively.

(c)Dividends are payable quarterly, other than Series S preferred stock, which is 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)


	December 31		September 30		June 30		March 31		December 31
In millions, except par value	2023		2023		2023		2023		2022
Assets
Cash and due from banks	$	6,921	$	5,300	$	6,191	$	5,940	$	7,043
Interest-earning deposits with banks (a)	43,804		41,484		38,259		33,865		27,320
Loans held for sale (b)	734		923		835		998		1,010
Investment securities – available for sale	41,785		40,590		41,787		43,220		44,159
Investment securities – held to maturity	90,784		91,797		93,874		95,019		95,175
Loans (b)	321,508		318,416		321,761		326,475		326,025
Allowance for loan and lease losses	(4,791)		(4,767)		(4,737)		(4,741)		(4,741)
Net loans	316,717		313,649		317,024		321,734		321,284
Equity investments	8,314		8,046		8,015		8,323		8,437
Mortgage servicing rights	3,686		4,006		3,455		3,293		3,423
Goodwill	10,932		10,987		10,987		10,987		10,987
Other (b)	37,903		40,552		37,780		38,398		38,425
Total assets	$	561,580	$	557,334	$	558,207	$	561,777	$	557,263
Liabilities
Deposits
Noninterest-bearing	$	101,285	$	105,672	$	110,527	$	118,014	$	124,486
Interest-bearing	320,133		317,937		316,962		318,819		311,796
Total deposits	421,418		423,609		427,489		436,833		436,282
Borrowed funds
Federal Home Loan Bank borrowings	38,000		36,000		34,000		32,020		32,075
Senior debt	26,836		22,407		22,005		19,622		16,657
Subordinated debt	4,875		4,728		5,548		5,630		6,307
Other (b)	3,026		3,032		3,831		3,550		3,674
Total borrowed funds	72,737		66,167		65,384		60,822		58,713
Allowance for unfunded lending related commitments	663		640		663		672		694
Accrued expenses and other liabilities (b)	15,621		17,437		15,325		14,376		15,762
Total liabilities	510,439		507,853		508,861		512,703		511,451
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800,000,000 shares, issued 543,116,271, 543,012,047, 543,012,047, 542,874,855 and 542,874,829 shares	2,716		2,715		2,715		2,714		2,714
Capital surplus	19,020		19,971		19,934		19,864		18,376
Retained earnings	56,290		56,170		55,346		54,598		53,572
Accumulated other comprehensive income (loss)	(7,712)		(10,261)		(9,525)		(9,108)		(10,172)
Common stock held in treasury at cost: 145,087,054, 144,671,252, 144,763,739, 143,781,812 and 142,298,689 shares	(19,209)		(19,141)		(19,150)		(19,024)		(18,716)
Total shareholders’ equity	51,105		49,454		49,320		49,044		45,774
Noncontrolling interests	36		27		26		30		38
Total equity	51,141		49,481		49,346		49,074		45,812
Total liabilities and equity	$	561,580	$	557,334	$	558,207	$	561,777	$	557,263

(a)Amounts include balances held with the Federal Reserve Bank of $43.3 billion, $41.1 billion, $37.8 billion, $32.5 billion and $26.9 billion as of December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2023 Form 10-Qs included, and our 2023 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 ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions	2023		2023		2023		2023		2022		2023		2022
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	30,980	$	31,020	$	31,180	$	31,850	$	31,818	$	31,255	$	42,151
Non-agency	599		627		663		689		714		644		842
Commercial mortgage-backed	2,727		2,880		2,948		3,102		3,377		2,913		4,107
Asset-backed	1,080		989		575		218		105		719		2,184
U.S. Treasury and government agencies	7,788		7,996		8,231		9,088		10,345		8,271		21,642
Other	2,899		2,931		2,997		3,263		3,370		3,021		3,982
Total securities available for sale	46,073		46,443		46,594		48,210		49,729		46,823		74,908
Securities held to maturity
Residential mortgage-backed	43,336		44,112		45,033		45,616		44,184		44,517		29,325
Commercial mortgage-backed	2,318		2,346		2,396		2,453		2,323		2,378		1,400
Asset-backed	6,040		6,463		6,712		7,026		6,995		6,557		4,446
U.S. Treasury and government agencies	36,457		37,043		36,912		36,748		36,441		36,790		25,074
Other	3,164		3,256		3,391		3,338		3,218		3,286		1,996
Total securities held to maturity	91,315		93,220		94,444		95,181		93,161		93,528		62,241
Total investment securities	137,388		139,663		141,038		143,391		142,890		140,351		137,149
Loans
Commercial and industrial	180,566		175,206		180,878		182,017		179,111		179,650		168,663
Commercial real estate	35,617		36,032		35,938		36,110		36,181		35,923		34,954
Equipment lease financing	6,430		6,441		6,364		6,452		6,275		6,423		6,196
Consumer	54,512		54,744		55,070		55,020		54,809		54,835		54,721
Residential real estate	47,444		47,081		46,284		45,927		45,499		46,689		43,165
Total loans	324,569		319,504		324,534		325,526		321,875		323,520		307,699
Interest-earning deposits with banks (c)	42,627		38,352		31,433		34,054		30,395		36,645		41,050
Other interest-earning assets	8,738		8,777		9,215		8,806		9,690		8,884		9,651
Total interest-earning assets	513,322		506,296		506,220		511,777		504,850		509,400		495,549
Noninterest-earning assets	48,997		48,667		49,287		50,555		52,356		49,370		55,103
Total assets	$	562,319	$	554,963	$	555,507	$	562,332	$	557,206	$	558,770	$	550,652
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	66,393	$	64,310	$	63,691	$	65,753	$	63,944	$	65,037	$	61,376
Demand	124,124		123,730		124,111		124,376		122,501		124,084		118,749
Savings	98,490		100,643		102,415		104,408		102,020		101,470		106,577
Time deposits	30,357		25,872		22,342		20,519		12,982		24,802		12,340
Total interest-bearing deposits	319,364		314,555		312,559		315,056		301,447		315,393		299,042
Borrowed funds
Federal Home Loan Bank borrowings	37,783		34,109		33,752		32,056		30,640		34,440		13,674
Senior debt	26,634		23,479		20,910		19,679		16,312		22,696		16,265
Subordinated debt	5,091		5,293		5,850		6,100		6,933		5,580		7,081
Other	3,384		4,584		5,180		5,133		5,346		4,566		5,430
Total borrowed funds	72,892		67,465		65,692		62,968		59,231		67,282		42,450
Total interest-bearing liabilities	392,256		382,020		378,251		378,024		360,678		382,675		341,492
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	104,567		107,981		113,178		121,176		133,461		111,670		144,382
Accrued expenses and other liabilities	16,328		15,629		15,063		16,014		17,461		15,759		16,414
Equity	49,168		49,333		49,015		47,118		45,606		48,666		48,364
Total liabilities and equity	$	562,319	$	554,963	$	555,507	$	562,332	$	557,206	$	558,770	$	550,652

(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 $42.2 billion, $37.9 billion, $30.6 billion, $33.5 billion and $30.0 billion for the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022 and $36.1 billion and $40.7 billion for the twelve months ended December 31, 2023 and December 31, 2022, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 4


Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
	2023		2023		2023		2023		2022		2023		2022
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.83	%	2.73	%	2.67	%	2.67	%	2.54	%	2.73	%	2.11	%
Non-agency	9.15	%	10.42	%	9.39	%	8.53	%	7.85	%	9.32	%	7.60	%
Commercial mortgage-backed	3.00	%	3.41	%	2.84	%	2.62	%	2.75	%	2.95	%	2.53	%
Asset-backed	6.41	%	6.30	%	6.56	%	7.04	%	11.98	%	6.40	%	1.69	%
U.S. Treasury and government agencies	2.22	%	2.28	%	2.20	%	2.05	%	1.96	%	2.21	%	1.45	%
Other	2.61	%	2.58	%	2.55	%	2.47	%	2.39	%	2.55	%	2.56	%
Total securities available for sale	2.89	%	2.87	%	2.73	%	2.64	%	2.52	%	2.78	%	2.02	%
Securities held to maturity
Residential mortgage-backed	2.75	%	2.72	%	2.72	%	2.74	%	2.60	%	2.73	%	2.31	%
Commercial mortgage-backed	5.53	%	5.55	%	5.35	%	4.95	%	4.57	%	5.34	%	3.64	%
Asset-backed	4.57	%	4.36	%	4.10	%	3.97	%	3.44	%	4.24	%	2.74	%
U.S. Treasury and government agencies	1.32	%	1.34	%	1.34	%	1.33	%	1.30	%	1.33	%	1.20	%
Other	4.72	%	4.57	%	4.65	%	4.62	%	4.47	%	4.63	%	4.31	%
Total securities held to maturity	2.44	%	2.42	%	2.41	%	2.41	%	2.27	%	2.42	%	1.99	%
Total investment securities	2.59	%	2.57	%	2.52	%	2.49	%	2.36	%	2.54	%	2.00	%
Loans
Commercial and industrial	6.13	%	5.86	%	5.70	%	5.34	%	4.70	%	5.84	%	3.60	%
Commercial real estate	6.68	%	6.59	%	6.37	%	6.02	%	5.28	%	6.50	%	3.97	%
Equipment lease financing	4.98	%	4.72	%	4.51	%	4.28	%	4.18	%	4.62	%	3.84	%
Consumer	7.00	%	6.89	%	6.57	%	6.34	%	5.88	%	6.70	%	5.14	%
Residential real estate	3.60	%	3.52	%	3.41	%	3.35	%	3.28	%	3.47	%	3.16	%
Total loans	5.94	%	5.75	%	5.57	%	5.29	%	4.75	%	5.69	%	3.86	%
Interest-earning deposits with banks	5.53	%	5.44	%	5.10	%	4.58	%	3.76	%	5.19	%	1.41	%
Other interest-earning assets	6.96	%	6.66	%	5.96	%	5.75	%	5.20	%	6.33	%	3.50	%
Total yield on interest-earning assets	5.03	%	4.87	%	4.70	%	4.46	%	4.02	%	4.80	%	3.14	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	3.32	%	3.10	%	2.79	%	2.40	%	1.75	%	2.91	%	0.72	%
Demand	2.26	%	2.15	%	1.89	%	1.58	%	1.14	%	1.97	%	0.49	%
Savings	1.68	%	1.49	%	1.26	%	1.03	%	0.50	%	1.36	%	0.17	%
Time deposits	4.11	%	3.67	%	3.26	%	3.00	%	1.45	%	3.60	%	0.52	%
Total interest-bearing deposits	2.48	%	2.26	%	1.96	%	1.66	%	1.07	%	2.10	%	0.42	%
Borrowed funds
Federal Home Loan Bank borrowings	5.66	%	5.55	%	5.28	%	4.80	%	3.92	%	5.41	%	3.22	%
Senior debt	6.25	%	6.17	%	5.91	%	5.39	%	4.30	%	6.05	%	2.47	%
Subordinated debt	6.63	%	6.52	%	6.19	%	5.69	%	4.79	%	6.24	%	2.91	%
Other	5.55	%	4.49	%	3.79	%	3.70	%	3.24	%	4.34	%	1.99	%
Total borrowed funds	5.94	%	5.77	%	5.44	%	4.98	%	4.07	%	5.62	%	2.72	%
Total rate on interest-bearing liabilities	3.10	%	2.86	%	2.56	%	2.20	%	1.55	%	2.72	%	0.71	%
Interest rate spread	1.93	%	2.01	%	2.14	%	2.26	%	2.47	%	2.08	%	2.43	%
Benefit from use of noninterest-bearing sources (b)	0.73	%	0.70	%	0.65	%	0.58	%	0.45	%	0.68	%	0.22	%
Net interest margin	2.66	%	2.71	%	2.79	%	2.84	%	2.92	%	2.76	%	2.65	%

(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, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022 were $36 million, $36 million, $37 million, $38 million and $36 million, respectively. The taxable-equivalent adjustments to net interest income for the twelve months ended December 31, 2023 and December 31, 2022 were $147 million and $112 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 31		September 30		June 30		March 31		December 31
In millions	2023		2023		2023		2023		2022
Commercial
Commercial and industrial
Manufacturing	$	28,989	$	29,163	$	30,586	$	32,132	$	30,845
Financial services	28,422		22,770		21,823		22,534		21,320
Retail/wholesale trade	28,198		28,284		28,751		29,172		29,176
Service providers	21,354		21,680		22,277		23,186		23,548
Real estate related (a)	16,235		16,182		17,200		17,548		17,780
Technology, media & telecommunications	10,249		10,989		11,158		11,338		11,845
Health care	9,808		10,092		10,186		10,537		10,649
Transportation and warehousing	7,733		7,891		8,048		7,824		7,858
Other industries	26,592		27,112		27,600		28,726		29,198
Total commercial and industrial	177,580		174,163		177,629		182,997		182,219
Commercial real estate	35,436		35,776		35,928		35,991		36,316
Equipment lease financing	6,542		6,493		6,400		6,424		6,514
Total commercial	219,558		216,432		219,957		225,412		225,049
Consumer
Residential real estate	47,544		47,359		46,834		46,067		45,889
Home equity	26,150		26,159		26,200		26,203		25,983
Automobile	14,860		14,940		15,065		14,923		14,836
Credit card	7,180		7,060		7,092		6,961		7,069
Education	1,945		2,020		2,058		2,131		2,173
Other consumer	4,271		4,446		4,555		4,778		5,026
Total consumer	101,950		101,984		101,804		101,063		100,976
Total loans	$	321,508	$	318,416	$	321,761	$	326,475	$	326,025

(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															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2023			2023			2023			2023			2022			2023			2022
Allowance for loan and lease losses
Beginning balance	$	4,767		$	4,737		$	4,741		$	4,741		$	4,581		$	4,741		$	4,868
Adoption of ASU 2022-02 (a)										(35)						(35)
Beginning balance, adjusted	4,767			4,737			4,741			4,706			4,581			4,706			4,868
Gross charge-offs:
Commercial and industrial	(52)			(43)			(45)			(104)			(121)			(244)			(257)
Commercial real estate	(56)			(25)			(87)			(12)			(22)			(180)			(44)
Equipment lease financing	(7)			(4)			(3)			(4)			(2)			(18)			(6)
Residential real estate	(2)			(1)			(2)			(3)			(2)			(8)			(11)
Home equity	(6)			(4)			(5)			(6)			(6)			(21)			(15)
Automobile	(30)			(30)			(28)			(33)			(34)			(121)			(152)
Credit card	(87)			(78)			(80)			(74)			(62)			(319)			(256)
Education	(4)			(4)			(5)			(4)			(4)			(17)			(16)
Other consumer	(40)			(44)			(38)			(42)			(64)			(164)			(228)
Total gross charge-offs	(284)			(233)			(293)			(282)			(317)			(1,092)			(985)
Recoveries:
Commercial and industrial	24			45			33			20			33			122			101
Commercial real estate	2			2						2			2			6			5
Equipment lease financing	1			2			3			3			1			9			8
Residential real estate	3			3			4			3			2			13			17
Home equity	10			12			13			11			13			46			71
Automobile	23			26			27			24			24			100			124
Credit card	11			10			11			11			8			43			51
Education	2			1			2			2			1			7			5
Other consumer	8			11			6			11			9			36			40
Total recoveries	84			112			99			87			93			382			422
Net (charge-offs) / recoveries:
Commercial and industrial	(28)			2			(12)			(84)			(88)			(122)			(156)
Commercial real estate	(54)			(23)			(87)			(10)			(20)			(174)			(39)
Equipment lease financing	(6)			(2)						(1)			(1)			(9)			2
Residential real estate	1			2			2									5			6
Home equity	4			8			8			5			7			25			56
Automobile	(7)			(4)			(1)			(9)			(10)			(21)			(28)
Credit card	(76)			(68)			(69)			(63)			(54)			(276)			(205)
Education	(2)			(3)			(3)			(2)			(3)			(10)			(11)
Other consumer	(32)			(33)			(32)			(31)			(55)			(128)			(188)
Total net (charge-offs)	(200)			(121)			(194)			(195)			(224)			(710)			(563)
Provision for credit losses (b)	221			153			189			229			380			792			439
Other	3			(2)			1			1			4			3			(3)
Ending balance	$	4,791		$	4,767		$	4,737		$	4,741		$	4,741		$	4,791		$	4,741
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(88)		$	(23)		$	(99)		$	(95)		$	(109)		$	(305)		$	(193)
Consumer net charge-offs	(112)			(98)			(95)			(100)			(115)			(405)			(370)
Total net charge-offs	$	(200)		$	(121)		$	(194)		$	(195)		$	(224)		$	(710)		$	(563)
Net charge-offs to average loans (c)	0.24		%	0.15		%	0.24		%	0.24		%	0.28		%	0.22		%	0.18		%
Commercial	0.16		%	0.04		%	0.18		%	0.17		%	0.20		%	0.14		%	0.09		%
Consumer	0.44		%	0.38		%	0.38		%	0.40		%	0.45		%	0.40		%	0.38		%

(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 third quarter 2023 Form 10-Q included, and our 2023 Form 10-K 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.

(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 Credit Losses


	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions	2023		2023		2023		2022		2022		2023		2022
Provision for credit losses
Loans and leases	$	221	$	153	$	189	$	229	$	380	$	792	$	439
Unfunded lending related commitments	23		(23)		(9)		(22)		12		(31)		32
Investment securities	(7)		(10)				(1)		10		(18)		17
Other financial assets	(5)		9		(34)		29		6		(1)		(11)
Total provision for credit losses	$	232	$	129	$	146	$	235	$	408	$	742	$	477

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


	December 31, 2023						September 30, 2023						December 31, 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	$	1,806	$	177,580	1.02	%	$	1,843	$	174,163	1.06	%	$	1,957	$	182,219	1.07	%
Commercial real estate	1,371		35,436		3.87	%	1,270		35,776		3.55	%	1,047		36,316		2.88	%
Equipment lease financing	82		6,542		1.25	%	109		6,493		1.68	%	110		6,514		1.69	%
Total commercial	3,259		219,558		1.48	%	3,222		216,432		1.49	%	3,114		225,049		1.38	%
Consumer
Residential real estate	61		47,544		0.13	%	62		47,359		0.13	%	92		45,889		0.20	%
Home equity	276		26,150		1.06	%	288		26,159		1.10	%	274		25,983		1.05	%
Automobile	173		14,860		1.16	%	169		14,940		1.13	%	226		14,836		1.52	%
Credit card	766		7,180		10.67	%	762		7,060		10.79	%	748		7,069		10.58	%
Education	56		1,945		2.88	%	56		2,020		2.77	%	63		2,173		2.90	%
Other consumer	200		4,271		4.68	%	208		4,446		4.68	%	224		5,026		4.46	%
Total consumer	1,532		101,950		1.50	%	1,545		101,984		1.51	%	1,627		100,976		1.61	%
Total	4,791		$	321,508	1.49	%	4,767		$	318,416	1.50	%	4,741		$	326,025	1.45	%
Allowance for unfunded lending related commitments	663						640						694
Allowance for credit losses	$	5,454					$	5,407					$	5,435

Supplemental Information
Allowance for credit losses to total loans					1.70	%					1.70	%					1.67	%
Commercial					1.73	%					1.73	%					1.66	%
Consumer					1.62	%					1.62	%					1.69	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $120 million, $131 million and $176 million at December 31, 2023, September 30, 2023 and December 31, 2022, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 8

Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type


	December 31			September 30			June 30			March 31			December 31
Dollars in millions	2023			2023			2023			2023			2022
Nonperforming loans (a)
Commercial
Commercial and industrial
Service providers	$	157		$	162		$	114		$	128		$	174
Technology, media & telecommunications	156			51			55			22			20
Health care	36			37			60			57			50
Transportation and warehousing	35			44			33			24			27
Manufacturing	32			34			50			105			85
Retail/wholesale trade	30			41			41			82			151
Real estate related (b)	30			31			42			43			50
Other industries	83			58			75			87			106
Total commercial and industrial	559			458			470			548			663
Commercial real estate	735			723			350			337			189
Equipment lease financing	13			30			7			6			6
Total commercial	1,307			1,211			827			891			858
Consumer (c)
Residential real estate	294			330			429			432			424
Home equity	458			446			506			523			526
Automobile	104			114			133			145			155
Credit card	10			11			10			9			8
Other consumer	7			11			8			10			14
Total consumer	873			912			1,086			1,119			1,127
Total nonperforming loans (d)	2,180			2,123			1,913			2,010			1,985
OREO and foreclosed assets	36			35			36			38			34
Total nonperforming assets	$	2,216		$	2,158		$	1,949		$	2,048		$	2,019
Nonperforming loans to total loans	0.68		%	0.67		%	0.59		%	0.62		%	0.61		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.69		%	0.68		%	0.61		%	0.63		%	0.62		%
Nonperforming assets to total assets	0.39		%	0.39		%	0.35		%	0.36		%	0.36		%
Allowance for loan and lease losses to nonperforming loans	220		%	225		%	248		%	236		%	239		%

(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. Amounts as of December 31, 2022 included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. Our third quarter 2023 Form 10-Q included, and our 2023 Form 10-K 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


	October 1, 2023 -		July 1, 2023 -		April 1, 2023 -		January 1, 2023 -		October 1, 2022 -
In millions	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Beginning balance	$	2,158	$	1,949	$	2,048	$	2,019	$	2,101

New nonperforming assets	496		641		410		452		346
Charge-offs and valuation adjustments	(104)		(91)		(135)		(122)		(174)
Principal activity, including paydowns and payoffs	(250)		(112)		(297)		(172)		(139)
Asset sales and transfers to loans held for sale	(6)		(7)		(12)		(46)		(22)
Returned to performing status (a)	(78)		(222)		(65)		(83)		(93)
Ending balance	$	2,216	$	2,158	$	1,949	$	2,048	$	2,019

(a)Amounts for the three months ended September 30, 2023 included updates to our return to accrual guidelines to bring consistency across consumer loan classes as to how and when loans become eligible to return to performing status.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 9

Accruing Loans Past Due (Unaudited)

The CARES Act Credit reporting rules expired in the third quarter of 2023 and as such, delinquency status at December 31, 2023 and September 30, 2023 is being reported for all loans based on the contractual terms of the loan. Prior period amounts continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period.

Table 11: Accruing Loans Past Due 30 to 59 Days (a)



	December 31			September 30			June 30			March 31			December 31
Dollars in millions	2023			2023			2023			2023			2022
Commercial
Commercial and industrial	$	104		$	84		$	64		$	119		$	169
Commercial real estate	7			2			10			25			19
Equipment lease financing	41			25			14			33			20
Total commercial	152			111			88			177			208
Consumer
Residential real estate
Non government insured	201			179			151			167			190
Government insured	81			78			77			78			91
Home equity	63			59			56			48			53
Automobile	91			83			84			79			106
Credit card	54			50			49			48			50
Education
Non government insured	5			6			5			6			5
Government insured	22			26			28			29			29
Other consumer	16			15			17			13			15
Total consumer	533			496			467			468			539
Total	$	685		$	607		$	555		$	645		$	747
Supplemental Information
Total accruing loans past due 30-59 days to total loans	0.21		%	0.19		%	0.17		%	0.20		%	0.23		%
Commercial	0.07		%	0.05		%	0.04		%	0.08		%	0.09		%
Consumer	0.52		%	0.49		%	0.46		%	0.46		%	0.53		%

(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 31			September 30			June 30			March 31			December 31
Dollars in millions	2023			2023			2023			2023			2022
Commercial
Commercial and industrial	$	45		$	32		$	47		$	21		$	27
Commercial real estate				2						1			4
Equipment lease financing	8			6			5			5			4
Total commercial	53			40			52			27			35
Consumer
Residential real estate
Non government insured	50			52			36			43			54
Government insured	51			51			50			55			58
Home equity	27			22			18			18			20
Automobile	20			19			20			18			25
Credit card	39			38			36			35			35
Education
Non government insured	3			3			2			4			2
Government insured	16			19			15			17			20
Other consumer	11			9			9			8			12
Total consumer	217			213			186			198			226
Total	$	270		$	253		$	238		$	225		$	261
Supplemental Information
Total accruing loans past due 60-89 days to total loans	0.08		%	0.08		%	0.07		%	0.07		%	0.08		%
Commercial	0.02		%	0.02		%	0.02		%	0.01		%	0.02		%
Consumer	0.21		%	0.21		%	0.18		%	0.20		%	0.22		%

(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 31			September 30			June 30			March 31			December 31
Dollars in millions	2023			2023			2023			2023			2022
Commercial
Commercial and industrial	$	76		$	102		$	112		$	134		$	137
Commercial real estate	9
Total commercial	85			102			112			134			137
Consumer
Residential real estate
Non government insured	38			36			30			26			32
Government insured	154			146			144			152			167
Automobile	7			6			5			5			7
Credit card	86			80			71			74			70
Education
Non government insured	2			2			2			2			2
Government insured	47			46			46			54			57
Other consumer	10			9			9			9			10
Total consumer	344			325			307			322			345
Total	$	429		$	427		$	419		$	456		$	482
Supplemental Information
Total accruing loans past due 90 days or more to total loans	0.13		%	0.13		%	0.13		%	0.14		%	0.15		%
Commercial	0.04		%	0.05		%	0.05		%	0.06		%	0.06		%
Consumer	0.34		%	0.32		%	0.30		%	0.32		%	0.34		%
Total accruing loans past due	$	1,384		$	1,287		$	1,212		$	1,326		$	1,490
Commercial	$	290		$	253		$	252		$	338		$	380
Consumer	$	1,094		$	1,034		$	960		$	988		$	1,110
Total accruing loans past due to total loans	0.43		%	0.40		%	0.38		%	0.41		%	0.46		%
Commercial	0.13		%	0.12		%	0.11		%	0.15		%	0.17		%
Consumer	1.07		%	1.01		%	0.94		%	0.98		%	1.10		%

(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 who are serviced through our coast-to-coast branch network, digital channels, ATMs, or through our phone-based customer contact centers. Deposit products include checking, savings and money market accounts and time deposits. 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, capital markets and advisory 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 and advisory includes services and activities primarily related to merger and acquisitions advisory, equity capital markets advisory, asset-backed financing, loan syndication, securities underwriting and customer-related trading. 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 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 31	September 30	June 30	March 31	December 31
	2023	2023	2023	2023	2022
Full-time employees
Retail Banking	28,761	29,692	30,446	31,583	32,467
Other full-time employees	26,052	27,725	27,785	27,874	27,427
Total full-time employees	54,813	57,417	58,231	59,457	59,894
Part-time employees
Retail Banking	1,540	1,480	1,567	1,537	1,577
Other part-time employees	58	70	503	79	74
Total part-time employees	1,598	1,550	2,070	1,616	1,651
Total	56,411	58,967	60,301	61,073	61,545


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 13

Table 15: Summary of Business Segment Net Income and Revenue (Unaudited) (a)


	Three months ended										Year ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions	2023		2023		2023		2023		2022		2023		2022
Net Income
Retail Banking	$	1,073	$	1,094	$	954	$	647	$	752	$	3,768	$	1,974
Corporate & Institutional Banking	1,213		960		817		1,059		982		4,049		3,870
Asset Management Group	72		73		63		52		52		260		330
Other	(1,494)		(573)		(351)		(81)		(258)		(2,499)		(133)
Net income excluding noncontrolling interests	$	864	$	1,554	$	1,483	$	1,677	$	1,528	$	5,578	$	6,041

Revenue
Retail Banking	$	3,391	$	3,360	$	3,150	$	3,024	$	3,079	$	12,925	$	10,507
Corporate & Institutional Banking	2,637		2,254		2,202		2,300		2,451		9,393		8,891
Asset Management Group	380		362		353		357		375		1,452		1,544
Other	(1,047)		(743)		(412)		(78)		(142)		(2,280)		178
Total revenue	$	5,361	$	5,233	$	5,293	$	5,603	$	5,763	$	21,490	$	21,120

(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 (FTP) 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 ended																	Year ended
	December 31			September 30				June 30				March 31			December 31			December 31			December 31
Dollars in millions	2023			2023				2023				2023			2022			2023			2022
Income Statement
Net interest income	$	2,669		$	2,576			$	2,448			$	2,281		$	2,330		$	9,974		$	7,540
Noninterest income	722			784				702				743			749			2,951			2,967
Total revenue	3,391			3,360				3,150				3,024			3,079			12,925			10,507
Provision for (recapture of) credit losses	130			42				(14)				238			193			396			259
Noninterest expense	1,848			1,876				1,904				1,927			1,892			7,555			7,598
Pretax earnings	1,413			1,442				1,260				859			994			4,974			2,650
Income taxes	329			337				295				202			232			1,163			621
Noncontrolling interests	11			11				11				10			10			43			55
Earnings	$	1,073		$	1,094		752	$	954		322	$	647		$	752		$	3,768		$	1,974
Average Balance Sheet
Loans held for sale	$	488		$	633			$	614			$	542		$	737		$	569		$	927
Loans
Consumer
Residential real estate	$	34,951		$	35,107			$	35,150			$	35,421		$	35,286		$	35,156		$	33,643
Home equity	24,569			24,591				24,663				24,571			24,126			24,598			23,221
Automobile	14,875			14,976				15,005				14,918			14,793			14,943			15,425
Credit card	7,084			7,075				7,015				6,904			6,882			7,020			6,620
Education	2,001			2,057				2,115				2,188			2,257			2,090			2,381
Other consumer	1,840			1,882				1,929				1,990			2,049			1,910			2,164
Total consumer	85,320			85,688				85,877				85,992			85,393			85,717			83,454
Commercial	12,088			11,733				11,708				11,438			11,181			11,744			11,177
Total loans	$	97,408		$	97,421			$	97,585			$	97,430		$	96,574		$	97,461		$	94,631
Total assets	$	114,730		$	114,724			$	114,826			$	115,384		$	115,827		$	114,914		$	113,829
Deposits
Noninterest-bearing	$	55,948		$	58,110			$	59,464			$	60,801		$	64,031		$	58,566		$	64,775
Interest-bearing	195,314			195,560				197,854				201,720			195,743			197,589			199,614
Total deposits	$	251,262		$	253,670			$	257,318			$	262,521		$	259,774		$	256,155		$	264,389
Performance Ratios
Return on average assets	3.71		%	3.78		%		3.33		%		2.27		%	2.58		%	3.28		%	1.73		%
Noninterest income to total revenue	21		%	23		%		22		%		25		%	24		%	23		%	28		%
Efficiency	54		%	56		%		60		%		64		%	61		%	58		%	72		%

(a)See note (a) on page 13.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 15

Retail Banking (Unaudited) (Continued)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2023			2023			2023			2023			2022			2023			2022
Supplemental Noninterest Income Information
Asset management and brokerage	$	139		$	130		$	123		$	131		$	128		$	523		$	528
Card and cash management	$	326		$	329		$	344		$	324		$	335		$	1,323		$	1,338
Lending and deposit services	$	186		$	193		$	176		$	181		$	172		$	736		$	670
Residential and commercial mortgage	$	117		$	128		$	75		$	104		$	111		$	424		$	319
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	209		$	213		$	191		$	188		$	190
Serviced portfolio acquisitions	$	1		$	25		$	7		$	2		$	24		$	35		$	74
MSR asset value (b)	$	2.7		$	2.8		$	2.3		$	2.2		$	2.3
MSR capitalization value (in basis points) (b)	127			133			123			119			122
Servicing income: (in millions)
Servicing fees, net (c)	$	89		$	67		$	67		$	78		$	73		$	301		$	192
Mortgage servicing rights valuation net of economic hedge	$	11		$	37		$	(9)		$	14		$	24		$	53		$	9
Residential mortgage loan statistics
Loan origination volume (in billions)	$	1.5		$	2.1		$	2.4		$	1.4		$	2.1		$	7.4		$	15.1
Loan sale margin percentage	2.45		%	2.43		%	2.23		%	2.26		%	2.20		%	2.34		%	2.14		%
Percentage of originations represented by:
Purchase volume (d)	87		%	87		%	90		%	84		%	88		%	87		%	67		%
Refinance volume	13		%	13		%	10		%	16		%	12		%	13		%	33		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	66		%	68		%	65		%	65		%	65		%	66		%	64		%
Digital consumer customers (f)	78		%	78		%	76		%	75		%	76		%	77		%	78		%
Credit-related statistics
Nonperforming assets	$	834		$	856		$	981		$	1,009		$	1,003
Net charge-offs - loans and leases	$	128		$	114		$	109		$	112		$	108		$	463		$	435
Other statistics
ATMs	8,447			8,476			8,566			8,697			8,933
Branches (g)	2,299			2,303			2,361			2,450			2,518
Brokerage account client assets (in billions) (h)	$	78		$	73		$	75		$	73		$	70

(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 regularly scheduled loan principal payments, prepayments and loans 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 standalone 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 ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2023			2023			2023			2023			2022			2023			2022
Income Statement
Net interest income	$	1,642		$	1,419		$	1,381		$	1,414		$	1,489		$	5,856		$	5,270
Noninterest income	995			835			821			886			962			3,537			3,621
Total revenue	2,637			2,254			2,202			2,300			2,451			9,393			8,891
Provision for (recapture of) credit losses	115			102			209			(28)			183			398			198
Noninterest expense	975			895			921			939			990			3,730			3,651
Pretax earnings	1,547			1,257			1,072			1,389			1,278			5,265			5,042
Income taxes	330			292			250			325			291			1,197			1,155
Noncontrolling interests	4			5			5			5			5			19			17
Earnings	$	1,213		$	960		$	817		$	1,059		$	982		$	4,049		$	3,870
Average Balance Sheet
Loans held for sale	$	450		$	283		$	440		$	456		$	337		$	407		$	475
Loans
Commercial
Commercial and industrial	$	167,185		$	161,810		$	167,357		$	168,874		$	166,176		$	166,289		$	155,551
Commercial real estate	34,488			34,587			34,410			34,605			34,663			34,522			33,373
Equipment lease financing	6,430			6,441			6,364			6,451			6,274			6,422			6,195
Total commercial	208,103			202,838			208,131			209,930			207,113			207,233			195,119
Consumer	5			4			5			7			8			6			9
Total loans	$	208,108		$	202,842		$	208,136		$	209,937		$	207,121		$	207,239		$	195,128
Total assets	$	234,590		$	230,082		$	234,174		$	234,536		$	234,120		$	233,337		$	219,941
Deposits
Noninterest-bearing	$	46,880		$	48,123		$	51,948		$	58,529		$	67,340		$	51,329		$	76,956
Interest-bearing	97,660			93,563			89,068			86,832			79,916			91,815			71,388
Total deposits	$	144,540		$	141,686		$	141,016		$	145,361		$	147,256		$	143,144		$	148,344
Performance Ratios
Return on average assets	2.05		%	1.66		%	1.40		%	1.83		%	1.66		%	1.74		%	1.76		%
Noninterest income to total revenue	38		%	37		%	37		%	39		%	39		%	38		%	41		%
Efficiency	37		%	40		%	42		%	41		%	40		%	40		%	41		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	1,044		$	849		$	778		$	785		$	843		$	3,456		$	2,801
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (c)	$	17		$	17		$	13		$	27		$	15		$	74		$	77
Commercial mortgage loan servicing income (d)	59			43			44			39			52			185			256
Commercial mortgage servicing rights valuation, net of economic hedge	19			54			4			41			39			118			138
Total	$	95		$	114		$	61		$	107		$	106		$	377		$	471
Commercial mortgage servicing statistics
Serviced portfolio balance (in billions) (e)	$	288		$	282		$	280		$	281		$	281
MSR asset value (e)	$	1,032		$	1,169		$	1,106		$	1,061		$	1,113
Average loans by C&IB business (f)
Corporate Banking	$	119,916		$	113,538		$	117,259		$	119,602		$	115,126		$	117,568		$	106,098
Real Estate	47,028			47,234			47,692			47,297			48,031			47,312			45,335
Business Credit	29,252			29,900			30,613			30,180			30,087			29,984			28,461
Commercial Banking	7,591			7,861			8,225			8,430			8,683			8,024			9,294
Other	4,321			4,309			4,347			4,428			5,194			4,351			5,940
Total average loans	$	208,108		$	202,842		$	208,136		$	209,937		$	207,121		$	207,239		$	195,128
Credit-related statistics
Nonperforming assets (e)	$	1,217		$	1,130		$	738		$	801		$	761
Net charge-offs - loans and leases	$	76		$	12		$	93		$	85		$	100		$	266		$	143

(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 amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(e)Presented as of period end.

(f)As the result of a business realignment within C&IB during the second quarter of 2023, certain loans were reclassified from Other to Corporate Banking in the prior periods to conform to the current period presentation.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 17

Table 18: Asset Management Group (Unaudited) (a)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2023			2023			2023			2023			2022			2023			2022
Income Statement
Net interest income	$	156		$	139		$	125		$	127		$	152		$	547		$	608
Noninterest income	224			223			228			230			223			905			936
Total revenue	380			362			353			357			375			1,452			1,544
Provision for (recapture of) credit losses	2			(4)			(10)			9			17			(3)			28
Noninterest expense	284			271			280			280			291			1,115			1,086
Pretax earnings	94			95			83			68			67			340			430
Income taxes	22			22			20			16			15			80			100
Earnings	$	72		$	73		$	63		$	52		$	52		$	260		$	330
Average Balance Sheet
Loans
Consumer
Residential real estate	$	11,314		$	10,750		$	9,855		$	9,174		$	8,835		$	10,280		$	8,029
Other consumer	3,893			3,901			4,065			4,156			4,388			4,003			4,550
Total consumer	15,207			14,651			13,920			13,330			13,223			14,283			12,579
Commercial	867			1,090			1,229			1,246			1,291			1,107			1,505
Total loans	$	16,074		$	15,741		$	15,149		$	14,576		$	14,514		$	15,390		$	14,084
Total assets	$	16,505		$	16,161		$	15,562		$	14,997		$	14,935		$	15,812		$	14,505
Deposits
Noninterest-bearing	$	1,742		$	1,756		$	1,787		$	1,846		$	2,107		$	1,782		$	2,664
Interest-bearing	26,479			25,417			25,482			26,337			25,651			25,928			27,830
Total deposits	$	28,221		$	27,173		$	27,269		$	28,183		$	27,758		$	27,710		$	30,494
Performance Ratios
Return on average assets	1.73		%	1.79		%	1.62		%	1.41		%	1.38		%	1.64		%	2.28		%
Noninterest income to total revenue	59		%	62		%	65		%	64		%	59		%	62		%	61		%
Efficiency	75		%	75		%	79		%	78		%	78		%	77		%	70		%
Other Information
Nonperforming assets (b)	$	39		$	39		$	41		$	42		$	56
Net charge-offs (recoveries) - loans and leases	$	(1)					$	(2)					$	18		$	(3)		$	17
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	189		$	176		$	176		$	177		$	173
Nondiscretionary client assets under administration	179			170			168			156			152
Total	$	368		$	346		$	344		$	333		$	325
Discretionary client assets under management
PNC Private Bank	$	117		$	109		$	111		$	108		$	105
Institutional Asset Management	72			67			65			69			68
Total	$	189		$	176		$	176		$	177		$	173

(a)See note (a) on page 13.

(b)As of period end.

(c)Excludes brokerage account client assets.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 18

Glossary of Terms

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).

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.

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.

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.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 19

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. 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.

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.

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).

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.

Troubled debt restructuring (TDR) – A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. On January 1, 2023, we adopted ASU 2022-02, which eliminated the accounting guidance for TDRs.

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.

Form: 8-K

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