October 15, 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

THIRD QUARTER 2024

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2024

(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 15, 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 Third Quarter 2024 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 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	2024			2024			2024			2023			2023			2024			2023
Interest Income
Loans	$	4,954		$	4,842		$	4,819		$	4,875		$	4,643		$	14,615		$	13,424
Investment securities	1,097			1,001			883			885			892			2,981			2,660
Other	771			725			798			742			668			2,294			1,722
Total interest income	6,822			6,568			6,500			6,502			6,203			19,890			17,806
Interest Expense
Deposits	2,230			2,084			2,077			1,995			1,792			6,391			4,614
Borrowed funds	1,182			1,182			1,159			1,104			993			3,523			2,679
Total interest expense	3,412			3,266			3,236			3,099			2,785			9,914			7,293
Net interest income	3,410			3,302			3,264			3,403			3,418			9,976			10,513
Noninterest Income
Asset management and brokerage	383			364			364			360			348			1,111			1,052
Capital markets and advisory	371			272			259			309			168			902			643
Card and cash management	698			706			671			688			689			2,075			2,045
Lending and deposit services	320			304			305			314			315			929			919
Residential and commercial mortgage	181			131			147			149			201			459			476
Other income
Gain on Visa shares exchange program				754												754
Securities gains (losses)	1			(499)												(498)			(2)
Other (a)	68			77			135			138			94			280			483
Total other income	69			332			135			138			94			536			481
Total noninterest income	2,022			2,109			1,881			1,958			1,815			6,012			5,616
Total revenue	5,432			5,411			5,145			5,361			5,233			15,988			16,129
Provision For Credit Losses	243			235			155			232			129			633			510
Noninterest Expense
Personnel	1,869			1,782			1,794			1,983			1,773			5,445			5,445
Occupancy	234			236			244			243			244			714			739
Equipment	357			356			341			365			347			1,054			1,046
Marketing	93			93			64			74			93			250			276
Other	774			890			891			1,409			788			2,555			2,432
Total noninterest expense	3,327			3,357			3,334			4,074			3,245			10,018			9,938
Income before income taxes and noncontrolling interests	1,862			1,819			1,656			1,055			1,859			5,337			5,681
Income taxes	357			342			312			172			289			1,011			917




Net income	1,505			1,477			1,344			883			1,570			4,326			4,764
Less: Net income attributable to noncontrolling interests	15			18			14			19			16			47			50
Preferred stock dividends (b)	82			95			81			118			104			258			299
Preferred stock discount accretion and redemptions	2			2			2			2			2			6			6
Net income attributable to common shareholders	$	1,406		$	1,362		$	1,247		$	744		$	1,448		$	4,015		$	4,409
Earnings Per Common Share
Basic	$	3.50		$	3.39		$	3.10		$	1.85		$	3.60		$	9.99		$	10.95


Diluted	$	3.49		$	3.39		$	3.10		$	1.85		$	3.60		$	9.98		$	10.94


Average Common Shares Outstanding
Basic	399			400			400			400			400			400			401
Diluted	400			400			400			401			400			400			401
Efficiency	61		%	62		%	65		%	76		%	62		%	63		%	62		%
Noninterest income to total revenue	37		%	39		%	37		%	37		%	35		%	38		%	35		%
Effective tax rate (c)	19.2		%	18.8		%	18.8		%	16.3		%	15.5		%	18.9		%	16.1		%

(a)Includes Visa Class B derivative fair value adjustments of $(128) million, $(116) million, $(7) million, $(100) million and $(51) million for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 respectively, and $(251) million and $(179) million for the nine months ended September 30, 2024 and September 30, 2023, respectively. These adjustments are primarily related to escrow funding and the extension of anticipated litigation resolution timing.

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


	September 30		June 30		March 31		December 31		September 30
In millions, except par value	2024		2024		2024		2023		2023
Assets
Cash and due from banks	$	6,162	$	6,242	$	5,933	$	6,921	$	5,300
Interest-earning deposits with banks (a)	35,024		33,039		53,612		43,804		41,484
Loans held for sale (b)	750		988		743		734		923
Investment securities – available for sale	60,338		51,188		42,280		41,785		40,590
Investment securities – held to maturity	83,845		87,457		88,180		90,784		91,797
Loans (b)	321,381		321,429		319,781		321,508		318,416
Allowance for loan and lease losses	(4,589)		(4,636)		(4,693)		(4,791)		(4,767)
Net loans	316,792		316,793		315,088		316,717		313,649
Equity investments	9,217		9,037		8,280		8,314		8,046
Mortgage servicing rights	3,503		3,739		3,762		3,686		4,006
Goodwill	10,932		10,932		10,932		10,932		10,987
Other (b)	38,318		37,104		37,352		37,903		40,552
Total assets	$	564,881	$	556,519	$	566,162	$	561,580	$	557,334
Liabilities
Deposits
Noninterest-bearing	$	94,588	$	94,542	$	98,061	$	101,285	$	105,672
Interest-bearing	329,378		321,849		327,563		320,133		317,937
Total deposits	423,966		416,391		425,624		421,418		423,609
Borrowed funds
Federal Home Loan Bank borrowings	28,000		35,000		37,000		38,000		36,000
Senior debt	32,492		29,601		27,907		26,836		22,407
Subordinated debt	4,196		4,078		4,827		4,875		4,728
Other (b)	3,381		2,712		2,973		3,026		3,032
Total borrowed funds	68,069		71,391		72,707		72,737		66,167
Allowance for unfunded lending related commitments	725		717		672		663		640
Accrued expenses and other liabilities (b)	16,392		15,339		15,785		15,621		17,437
Total liabilities	509,152		503,838		514,788		510,439		507,853
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800,000,000 shares, issued 543,225,979, 543,225,979, 543,116,260, 543,116,271 and 543,012,047 shares	2,716		2,716		2,716		2,716		2,715
Capital surplus	19,150		19,098		19,032		19,020		19,971
Retained earnings	58,412		57,652		56,913		56,290		56,170
Accumulated other comprehensive income (loss)	(5,090)		(7,446)		(8,042)		(7,712)		(10,261)
Common stock held in treasury at cost: 146,306,706, 145,667,981, 145,068,954, 145,087,054 and 144,671,252 shares	(19,499)		(19,378)		(19,279)		(19,209)		(19,141)
Total shareholders’ equity	55,689		52,642		51,340		51,105		49,454
Noncontrolling interests	40		39		34		36		27
Total equity	55,729		52,681		51,374		51,141		49,481
Total liabilities and equity	$	564,881	$	556,519	$	566,162	$	561,580	$	557,334

(a)Amounts include balances held with the Federal Reserve Bank of $34.6 billion, $32.6 billion, $53.2 billion, $43.3 billion and $41.1 billion as of September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2024 Form 10-Q included, and our third quarter 2024 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	2024		2024		2024		2023		2023		2024		2023
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	30,962	$	30,229	$	30,411	$	30,980	$	31,020	$	30,535	$	31,347
Non-agency	529		551		578		599		627		553		659
Commercial mortgage-backed	2,635		2,698		2,622		2,727		2,880		2,652		2,976
Asset-backed	2,177		1,987		1,414		1,080		989		1,861		597
U.S. Treasury and government agencies	17,311		15,350		8,199		7,788		7,996		13,634		8,434
Other	2,575		2,620		2,776		2,899		2,931		2,655		3,062
Total securities available for sale	56,189		53,435		46,000		46,073		46,443		51,890		47,075
Securities held to maturity
Residential mortgage-backed	41,698		42,234		42,633		43,336		44,112		42,187		44,914
Commercial mortgage-backed	2,057		2,174		2,252		2,318		2,346		2,161		2,398
Asset-backed	4,422		5,035		5,627		6,040		6,463		5,026		6,732
U.S. Treasury and government agencies	35,093		35,467		35,860		36,457		37,043		35,472		36,902
Other	2,855		2,961		3,062		3,164		3,256		2,958		3,329
Total securities held to maturity	86,125		87,871		89,434		91,315		93,220		87,804		94,275
Total investment securities	142,314		141,306		135,434		137,388		139,663		139,694		141,350
Loans
Commercial and industrial	177,019		177,130		177,258		180,566		175,206		177,136		179,342
Commercial real estate	35,451		35,523		35,522		35,617		36,032		35,498		36,026
Equipment lease financing	6,528		6,490		6,468		6,430		6,441		6,495		6,419
Consumer	53,543		53,503		53,933		54,512		54,744		53,659		54,944
Residential real estate	47,061		47,272		47,428		47,444		47,081		47,253		46,435
Total loans	319,602		319,918		320,609		324,569		319,504		320,041		323,166
Interest-earning deposits with banks (c)	45,319		41,113		48,250		42,627		38,352		44,896		34,629
Other interest-earning assets	8,909		9,279		8,002		8,738		8,777		8,731		8,933
Total interest-earning assets	516,144		511,616		512,295		513,322		506,296		513,362		508,078
Noninterest-earning assets	53,369		51,414		50,553		48,997		48,667		51,784		49,496
Total assets	$	569,513	$	563,030	$	562,848	$	562,319	$	554,963	$	565,146	$	557,574
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	72,578	$	67,631	$	67,838	$	66,393	$	64,310	$	69,361	$	64,579
Demand	119,848		121,423		122,748		124,124		123,730		121,305		124,070
Savings	95,939		97,232		97,719		98,490		100,643		96,960		102,475
Time deposits	37,946		34,663		32,975		30,357		25,872		35,233		22,931
Total interest-bearing deposits	326,311		320,949		321,280		319,364		314,555		322,859		314,055
Borrowed funds
Federal Home Loan Bank borrowings	31,785		35,962		37,717		37,783		34,109		35,142		33,313
Senior debt	32,204		29,717		28,475		26,634		23,479		30,139		21,370
Subordinated debt	4,330		4,567		5,082		5,091		5,293		4,658		5,745
Other	7,764		7,210		4,316		3,384		4,584		6,435		4,964
Total borrowed funds	76,083		77,456		75,590		72,892		67,465		76,374		65,392
Total interest-bearing liabilities	402,394		398,405		396,870		392,256		382,020		399,233		379,447
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	95,811		96,284		98,875		104,567		107,981		96,986		114,063
Accrued expenses and other liabilities	17,395		17,144		16,404		16,328		15,629		16,983		15,567
Equity	53,913		51,197		50,699		49,168		49,333		51,944		48,497
Total liabilities and equity	$	569,513	$	563,030	$	562,848	$	562,319	$	554,963	$	565,146	$	557,574

(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 $44.9 billion, $40.7 billion, $47.8 billion, $42.2 billion and $37.9 billion for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 and $44.5 billion and $34.0 billion for the nine months ended September 30, 2024 and September 30, 2023, 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
	2024		2024		2024		2023		2023		2024		2023
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	3.32	%	2.98	%	2.88	%	2.83	%	2.73	%	3.06	%	2.69	%
Non-agency	10.64	%	10.30	%	9.65	%	9.15	%	10.42	%	10.18	%	9.42	%
Commercial mortgage-backed	3.08	%	3.07	%	2.99	%	3.00	%	3.41	%	3.05	%	2.95	%
Asset-backed	5.85	%	5.92	%	6.02	%	6.41	%	6.30	%	5.92	%	6.44	%
U.S. Treasury and government agencies	5.40	%	4.28	%	2.67	%	2.22	%	2.28	%	4.44	%	2.17	%
Other	2.70	%	2.66	%	2.63	%	2.61	%	2.58	%	2.66	%	2.53	%
Total securities available for sale	4.09	%	3.53	%	3.01	%	2.89	%	2.87	%	3.58	%	2.75	%
Securities held to maturity
Residential mortgage-backed	2.82	%	2.79	%	2.77	%	2.75	%	2.72	%	2.79	%	2.73	%
Commercial mortgage-backed	5.33	%	5.38	%	5.46	%	5.53	%	5.55	%	5.39	%	5.28	%
Asset-backed	4.62	%	4.65	%	4.49	%	4.57	%	4.36	%	4.58	%	4.14	%
U.S. Treasury and government agencies	1.33	%	1.31	%	1.31	%	1.32	%	1.34	%	1.32	%	1.34	%
Other	4.72	%	4.69	%	4.52	%	4.72	%	4.57	%	4.64	%	4.61	%
Total securities held to maturity	2.43	%	2.43	%	2.42	%	2.44	%	2.42	%	2.43	%	2.41	%
Total investment securities	3.08	%	2.84	%	2.62	%	2.59	%	2.57	%	2.85	%	2.52	%
Loans
Commercial and industrial	6.28	%	6.22	%	6.18	%	6.13	%	5.86	%	6.23	%	5.64	%
Commercial real estate	6.68	%	6.66	%	6.67	%	6.68	%	6.59	%	6.67	%	6.33	%
Equipment lease financing	5.65	%	5.37	%	5.17	%	4.98	%	4.72	%	5.40	%	4.51	%
Consumer	7.47	%	7.24	%	7.16	%	7.00	%	6.89	%	7.29	%	6.60	%
Residential real estate	3.73	%	3.70	%	3.65	%	3.60	%	3.52	%	3.69	%	3.43	%
Total loans	6.13	%	6.05	%	6.01	%	5.94	%	5.75	%	6.06	%	5.54	%
Interest-earning deposits with banks	5.48	%	5.47	%	5.47	%	5.53	%	5.44	%	5.47	%	5.05	%
Other interest-earning assets	6.78	%	6.98	%	6.92	%	6.96	%	6.66	%	6.89	%	6.12	%
Total yield on interest-earning assets	5.25	%	5.13	%	5.08	%	5.03	%	4.87	%	5.15	%	4.68	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	3.59	%	3.39	%	3.45	%	3.32	%	3.10	%	3.48	%	2.76	%
Demand	2.31	%	2.25	%	2.26	%	2.26	%	2.15	%	2.27	%	1.87	%
Savings	1.86	%	1.85	%	1.81	%	1.68	%	1.49	%	1.84	%	1.26	%
Time deposits	4.46	%	4.48	%	4.44	%	4.11	%	3.67	%	4.46	%	3.34	%
Total interest-bearing deposits	2.72	%	2.61	%	2.60	%	2.48	%	2.26	%	2.64	%	1.96	%
Borrowed funds
Federal Home Loan Bank borrowings	5.63	%	5.66	%	5.65	%	5.66	%	5.55	%	5.65	%	5.22	%
Senior debt	6.64	%	6.55	%	6.59	%	6.25	%	6.17	%	6.59	%	5.85	%
Subordinated debt	6.77	%	6.65	%	6.64	%	6.63	%	6.52	%	6.68	%	6.12	%
Other	5.28	%	5.51	%	5.59	%	5.55	%	4.49	%	5.44	%	3.98	%
Total borrowed funds	6.09	%	6.04	%	6.07	%	5.94	%	5.77	%	6.07	%	5.41	%
Total rate on interest-bearing liabilities	3.34	%	3.26	%	3.24	%	3.10	%	2.86	%	3.28	%	2.54	%
Interest rate spread	1.91	%	1.87	%	1.84	%	1.93	%	2.01	%	1.87	%	2.14	%
Benefit from use of noninterest-bearing sources (b)	0.73	%	0.73	%	0.73	%	0.73	%	0.70	%	0.73	%	0.64	%
Net interest margin	2.64	%	2.60	%	2.57	%	2.66	%	2.71	%	2.60	%	2.78	%

(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, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023 were $33 million, $34 million, $34 million, $36 million and $36 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2024 and September 30, 2023 were $101 million and $111 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	2024		2024		2024		2023		2023
Commercial
Commercial and industrial
Retail/wholesale trade	$	30,226	$	30,128	$	28,923	$	28,198	$	28,284
Financial services	29,244		27,986		27,640		28,422		22,770
Manufacturing	28,748		29,544		29,402		28,989		29,163
Service providers	22,033		21,948		21,413		21,354		21,680
Real estate related (a)	14,856		15,198		15,583		16,235		16,182
Health care	10,169		9,527		10,193		9,808		10,092
Technology, media and telecommunications	9,292		9,621		10,158		10,249		10,989
Transportation and warehousing	7,723		8,036		7,523		7,733		7,891
Other industries	26,600		26,801		25,957		26,592		27,112
Total commercial and industrial	178,891		178,789		176,792		177,580		174,163
Commercial real estate	35,104		35,498		35,591		35,436		35,776
Equipment lease financing	6,726		6,555		6,462		6,542		6,493
Total commercial	220,721		220,842		218,845		219,558		216,432
Consumer
Residential real estate	46,972		47,183		47,386		47,544		47,359
Home equity	25,970		25,917		25,896		26,150		26,159
Automobile	15,135		14,820		14,788		14,860		14,940
Credit card	6,827		6,849		6,887		7,180		7,060
Education	1,693		1,732		1,859		1,945		2,020
Other consumer	4,063		4,086		4,120		4,271		4,446
Total consumer	100,660		100,587		100,936		101,950		101,984
Total loans	$	321,381	$	321,429	$	319,781	$	321,508	$	318,416

(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	2024			2024			2024			2023			2023			2024			2023
Allowance for loan and lease losses
Beginning balance	$	4,636		$	4,693		$	4,791		$	4,767		$	4,737		$	4,791		$	4,741
Adoption of ASU 2022-02 (a)																			(35)
Beginning balance, adjusted	4,636			4,693			4,791			4,767			4,737			4,791			4,706
Gross charge-offs:
Commercial and industrial	(89)			(77)			(84)			(52)			(43)			(250)			(192)
Commercial real estate	(102)			(113)			(56)			(56)			(25)			(271)			(124)
Equipment lease financing	(9)			(8)			(8)			(7)			(4)			(25)			(11)
Residential real estate				(1)			(1)			(2)			(1)			(2)			(6)
Home equity	(8)			(9)			(10)			(6)			(4)			(27)			(15)
Automobile	(34)			(32)			(32)			(30)			(30)			(98)			(91)
Credit card	(86)			(90)			(92)			(87)			(78)			(268)			(232)
Education	(4)			(5)			(4)			(4)			(4)			(13)			(13)
Other consumer	(44)			(40)			(43)			(40)			(44)			(127)			(124)
Total gross charge-offs	(376)			(375)			(330)			(284)			(233)			(1,081)			(808)
Recoveries:
Commercial and industrial	22			39			19			24			45			80			98
Commercial real estate	2			7			2			2			2			11			4
Equipment lease financing	4			6			2			1			2			12			8
Residential real estate	2			3			3			3			3			8			10
Home equity	10			12			9			10			12			31			36
Automobile	25			24			25			23			26			74			77
Credit card	15			12			15			11			10			42			32
Education	2			1			2			2			1			5			5
Other consumer	8			9			10			8			11			27			28
Total recoveries	90			113			87			84			112			290			298
Net (charge-offs) / recoveries:
Commercial and industrial	(67)			(38)			(65)			(28)			2			(170)			(94)
Commercial real estate	(100)			(106)			(54)			(54)			(23)			(260)			(120)
Equipment lease financing	(5)			(2)			(6)			(6)			(2)			(13)			(3)
Residential real estate	2			2			2			1			2			6			4
Home equity	2			3			(1)			4			8			4			21
Automobile	(9)			(8)			(7)			(7)			(4)			(24)			(14)
Credit card	(71)			(78)			(77)			(76)			(68)			(226)			(200)
Education	(2)			(4)			(2)			(2)			(3)			(8)			(8)
Other consumer	(36)			(31)			(33)			(32)			(33)			(100)			(96)
Total net (charge-offs)	(286)			(262)			(243)			(200)			(121)			(791)			(510)
Provision for credit losses (b)	235			204			147			221			153			586			571
Other	4			1			(2)			3			(2)			3
Ending balance	$	4,589		$	4,636		$	4,693		$	4,791		$	4,767		$	4,589		$	4,767
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(172)		$	(146)		$	(125)		$	(88)		$	(23)		$	(443)		$	(217)
Consumer net charge-offs	(114)			(116)			(118)			(112)			(98)			(348)			(293)
Total net charge-offs	$	(286)		$	(262)		$	(243)		$	(200)		$	(121)		$	(791)		$	(510)
Net charge-offs to average loans (annualized)	0.36		%	0.33		%	0.30		%	0.24		%	0.15		%	0.33		%	0.21		%
Commercial	0.31		%	0.27		%	0.23		%	0.16		%	0.04		%	0.27		%	0.13		%
Consumer	0.45		%	0.46		%	0.47		%	0.44		%	0.38		%	0.46		%	0.39		%

(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. Refer to our 2023 Form 10-K for 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	2024		2024		2024		2023		2023		2024		2023
Provision for credit losses
Loans and leases	$	235	$	204	$	147	$	221	$	153	$	586	$	571
Unfunded lending related commitments	7		45		9		23		(23)		61		(54)
Investment securities			(11)		1		(7)		(10)		(10)		(11)
Other financial assets	1		(3)		(2)		(5)		9		(4)		4
Total provision for credit losses	$	243	$	235	$	155	$	232	$	129	$	633	$	510

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


	September 30, 2024						June 30, 2024						September 30, 2023
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	$	1,715	$	178,891	0.96	%	$	1,728	$	178,789	0.97	%	$	1,843	$	174,163	1.06	%
Commercial real estate	1,441		35,104		4.10	%	1,441		35,498		4.06	%	1,270		35,776		3.55	%
Equipment lease financing	70		6,726		1.04	%	74		6,555		1.13	%	109		6,493		1.68	%
Total commercial	3,226		220,721		1.46	%	3,243		220,842		1.47	%	3,222		216,432		1.49	%
Consumer
Residential real estate	38		46,972		0.08	%	48		47,183		0.10	%	62		47,359		0.13	%
Home equity	270		25,970		1.04	%	260		25,917		1.00	%	288		26,159		1.10	%
Automobile	164		15,135		1.08	%	163		14,820		1.10	%	169		14,940		1.13	%
Credit card	672		6,827		9.84	%	698		6,849		10.19	%	762		7,060		10.79	%
Education	49		1,693		2.89	%	52		1,732		3.00	%	56		2,020		2.77	%
Other consumer	170		4,063		4.18	%	172		4,086		4.21	%	208		4,446		4.68	%
Total consumer	1,363		100,660		1.35	%	1,393		100,587		1.38	%	1,545		101,984		1.51	%
Total	4,589		$	321,381	1.43	%	4,636		$	321,429	1.44	%	4,767		$	318,416	1.50	%
Allowance for unfunded lending related commitments	725						717						640
Allowance for credit losses	$	5,314					$	5,353					$	5,407

Supplemental Information
Allowance for credit losses to total loans					1.65	%					1.67	%					1.70	%
Commercial					1.72	%					1.73	%					1.73	%
Consumer					1.50	%					1.52	%					1.62	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $111 million, $112 million and $131 million at September 30, 2024, June 30, 2024 and September 30, 2023, 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	2024			2024			2024			2023			2023
Nonperforming loans
Commercial
Commercial and industrial
Service providers	$	152		$	152		$	158		$	157		$	162
Retail/wholesale trade	149			70			30			30			41
Health care	75			37			40			36			37
Technology, media & telecommunications	74			108			177			156			51
Transportation and warehousing	46			41			40			35			44
Manufacturing	35			79			60			32			34
Real estate related (a)	29			47			23			30			31
Other industries	162			168			50			83			58
Total commercial and industrial	722			702			578			559			458
Commercial real estate	993			928			923			735			723
Equipment lease financing	14			16			13			13			30
Total commercial	1,729			1,646			1,514			1,307			1,211
Consumer (b)
Residential real estate	265			275			284			294			330
Home equity	473			468			464			458			446
Automobile	90			93			97			104			114
Credit card	15			13			13			10			11
Other consumer	6			8			8			7			11
Total consumer	849			857			866			873			912
Total nonperforming loans (c)	2,578			2,503			2,380			2,180			2,123
OREO and foreclosed assets	31			34			35			36			35
Total nonperforming assets	$	2,609		$	2,537		$	2,415		$	2,216		$	2,158
Nonperforming loans to total loans	0.80		%	0.78		%	0.74		%	0.68		%	0.67		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.81		%	0.79		%	0.76		%	0.69		%	0.68		%
Nonperforming assets to total assets	0.46		%	0.46		%	0.43		%	0.39		%	0.39		%
Allowance for loan and lease losses to nonperforming loans	178		%	185		%	197		%	220		%	225		%

(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


	Three months ended
	September 30		June 30		March 31		December 31		September 30
Dollars in millions	2024		2024		2024		2023		2023
Beginning balance	$	2,537	$	2,415	$	2,216	$	2,158	$	1,949

New nonperforming assets	661		571		616		496		641
Charge-offs and valuation adjustments	(200)		(178)		(133)		(104)		(91)
Principal activity, including paydowns and payoffs	(322)		(201)		(188)		(250)		(112)
Asset sales and transfers to loans held for sale	(6)		(16)		(16)		(6)		(7)
Returned to performing status (a)	(61)		(54)		(80)		(78)		(222)
Ending balance	$	2,609	$	2,537	$	2,415	$	2,216	$	2,158

(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)

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



	September 30			June 30			March 31			December 31			September 30
Dollars in millions	2024			2024			2024			2023			2023
Commercial
Commercial and industrial	$	106		$	95		$	125		$	104		$	84
Commercial real estate	9			8			2			7			2
Equipment lease financing	22			19			22			41			25
Total commercial	137			122			149			152			111
Consumer
Residential real estate
Non government insured	162			201			179			201			179
Government insured	76			77			78			81			78
Home equity	65			64			64			63			59
Automobile	81			92			81			91			83
Credit card	55			50			49			54			50
Education
Non government insured	6			5			5			5			6
Government insured	20			22			20			22			26
Other consumer	12			12			11			16			15
Total consumer	477			523			487			533			496
Total	$	614		$	645		$	636		$	685		$	607
Supplemental Information
Total accruing loans past due 30-59 days to total loans	0.19		%	0.20		%	0.20		%	0.21		%	0.19		%
Commercial	0.06		%	0.06		%	0.07		%	0.07		%	0.05		%
Consumer	0.47		%	0.52		%	0.48		%	0.52		%	0.49		%

(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)


	September 30			June 30			March 31			December 31			September 30
Dollars in millions	2024			2024			2024			2023			2023
Commercial
Commercial and industrial	$	40		$	53		$	35		$	45		$	32
Commercial real estate				2									2
Equipment lease financing	12			6			4			8			6
Total commercial	52			61			39			53			40
Consumer
Residential real estate
Non government insured	40			48			50			50			52
Government insured	45			43			42			51			51
Home equity	27			24			24			27			22
Automobile	21			22			19			20			19
Credit card	39			37			37			39			38
Education
Non government insured	3			2			4			3			3
Government insured	13			13			13			16			19
Other consumer	12			9			7			11			9
Total consumer	200			198			196			217			213
Total	$	252		$	259		$	235		$	270		$	253
Supplemental Information
Total accruing loans past due 60-89 days to total loans	0.08		%	0.08		%	0.07		%	0.08		%	0.08		%
Commercial	0.02		%	0.03		%	0.02		%	0.02		%	0.02		%
Consumer	0.20		%	0.20		%	0.19		%	0.21		%	0.21		%

(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)


	September 30			June 30			March 31			December 31			September 30
Dollars in millions	2024			2024			2024			2023			2023
Commercial
Commercial and industrial	$	97		$	86		$	90		$	76		$	102
Commercial real estate				1						9
Total commercial	97			87			90			85			102
Consumer
Residential real estate
Non government insured	52			27			38			38			36
Government insured	127			128			137			154			146
Automobile	6			6			5			7			6
Credit card	79			76			82			86			80
Education
Non government insured	2			2			3			2			2
Government insured	38			34			40			47			46
Other consumer	8			8			9			10			9
Total consumer	312			281			314			344			325
Total	$	409		$	368		$	404		$	429		$	427
Supplemental Information
Total accruing loans past due 90 days or more to total loans	0.13		%	0.11		%	0.13		%	0.13		%	0.13		%
Commercial	0.04		%	0.04		%	0.04		%	0.04		%	0.05		%
Consumer	0.31		%	0.28		%	0.31		%	0.34		%	0.32		%
Total accruing loans past due	$	1,275		$	1,272		$	1,275		$	1,384		$	1,287
Commercial	$	286		$	270		$	278		$	290		$	253
Consumer	$	989		$	1,002		$	997		$	1,094		$	1,034
Total accruing loans past due to total loans	0.40		%	0.40		%	0.40		%	0.43		%	0.40		%
Commercial	0.13		%	0.12		%	0.13		%	0.13		%	0.12		%
Consumer	0.98		%	1.00		%	0.99		%	1.07		%	1.01		%

(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 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, cash and fixed income client solutions and retirement plan fiduciary investment services to institutional clients, including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

Table 14: Period End Employees


	September 30	June 30	March 31	December 31	September 30
	2024	2024	2024	2023	2023
Full-time employees
Retail Banking	27,740	27,935	28,580	28,761	29,692
Other full-time employees	26,009	25,997	25,861	26,052	27,725
Total full-time employees	53,749	53,932	54,441	54,813	57,417
Part-time employees
Retail Banking	1,451	1,558	1,554	1,540	1,480
Other part-time employees	49	422	56	58	70
Total part-time employees	1,500	1,980	1,610	1,598	1,550
Total	55,249	55,912	56,051	56,411	58,967


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 13

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


	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions	2024		2024		2024		2023		2023		2024		2023
Net Income
Retail Banking	$	1,164	$	1,715	$	1,085	$	1,073	$	1,094	$	3,964	$	2,695
Corporate & Institutional Banking	1,197		1,046		1,121		1,213		960		3,364		2,836
Asset Management Group	104		103		97		72		73		304		188
Other	(975)		(1,405)		(973)		(1,494)		(573)		(3,353)		(1,005)
Net income excluding noncontrolling interests	$	1,490	$	1,459	$	1,330	$	864	$	1,554	$	4,279	$	4,714

Revenue
Retail Banking	$	3,484	$	4,118	$	3,381	$	3,391	$	3,360	$	10,983	$	9,534
Corporate & Institutional Banking	2,645		2,502		2,437		2,637		2,254		7,584		6,756
Asset Management Group	403		398		387		380		362		1,188		1,072
Other	(1,100)		(1,607)		(1,060)		(1,047)		(743)		(3,767)		(1,233)
Total revenue	$	5,432	$	5,411	$	5,145	$	5,361	$	5,233	$	15,988	$	16,129

(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 ended																	Nine months ended
	September 30			June 30				March 31				December 31			September 30			September 30			September 30
Dollars in millions	2024			2024				2024				2023			2023			2024			2023
Income Statement
Net interest income	$	2,783		$	2,709			$	2,617			$	2,669		$	2,576		$	8,109		$	7,305
Noninterest income	701			1,409				764				722			784			2,874			2,229
Total revenue	3,484			4,118				3,381				3,391			3,360			10,983			9,534
Provision for credit losses	111			27				118				130			42			256			266
Noninterest expense	1,842			1,841				1,837				1,848			1,876			5,520			5,707
Pretax earnings	1,531			2,250				1,426				1,413			1,442			5,207			3,561
Income taxes	358			524				333				329			337			1,215			834
Noncontrolling interests	9			11				8				11			11			28			32
Earnings	$	1,164		$	1,715		752	$	1,085		322	$	1,073		$	1,094		$	3,964		$	2,695
Average Balance Sheet
Loans held for sale	$	986		$	641			$	478			$	488		$	633		$	703		$	597
Loans
Consumer
Residential real estate	$	33,913		$	34,144			$	34,600			$	34,951		$	35,107		$	34,217		$	35,225
Home equity	24,345			24,347				24,462				24,569			24,591			24,384			24,608
Automobile	15,000			14,785				14,839				14,875			14,976			14,875			14,966
Credit card	6,805			6,840				6,930				7,084			7,075			6,858			6,999
Education	1,723			1,822				1,933				2,001			2,057			1,825			2,119
Other consumer	1,756			1,745				1,771				1,840			1,882			1,759			1,934
Total consumer	83,542			83,683				84,535				85,320			85,688			83,918			85,851
Commercial	12,788			12,787				12,620				12,088			11,733			12,732			11,628
Total loans	$	96,330		$	96,470			$	97,155			$	97,408		$	97,421		$	96,650		$	97,479
Total assets	$	114,257		$	115,102			$	114,199			$	114,730		$	114,724		$	114,522		$	114,975
Deposits
Noninterest-bearing	$	52,990		$	53,453			$	53,395			$	55,948		$	58,110		$	53,278		$	59,448
Interest-bearing	196,255			196,278				195,615				195,314			195,560			196,050			198,356
Total deposits	$	249,245		$	249,731			$	249,010			$	251,262		$	253,670		$	249,328		$	257,804
Performance Ratios
Return on average assets	4.04		%	5.98		%		3.85		%		3.71		%	3.78		%	4.63		%	3.13		%
Noninterest income to total revenue	20		%	34		%		23		%		21		%	23		%	26		%	23		%
Efficiency	53		%	45		%		54		%		54		%	56		%	50		%	60		%

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


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 15

Retail Banking (Unaudited) (Continued)


	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions, except as noted	2024			2024			2024			2023			2023			2024			2023
Supplemental Noninterest Income Information
Asset management and brokerage	$	145		$	135		$	137		$	139		$	130		$	417		$	384
Card and cash management	$	319		$	330		$	306		$	326		$	329		$	955		$	997
Lending and deposit services	$	193		$	182		$	178		$	186		$	193		$	553		$	550
Residential and commercial mortgage	$	129		$	70		$	97		$	117		$	128		$	296		$	307
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	200		$	204		$	207		$	209		$	213
MSR asset value (b)	$	2.5		$	2.7		$	2.7		$	2.7		$	2.8
Servicing income: (in millions)
Servicing fees, net (c)	$	69		$	67		$	82		$	89		$	67		$	218		$	212
Mortgage servicing rights valuation net of economic hedge	$	53		$	(14)		$	(6)		$	11		$	37		$	33		$	42
Residential mortgage loan statistics
Loan origination volume (in billions)	$	1.8		$	1.7		$	1.3		$	1.5		$	2.1		$	4.8		$	5.9
Loan sale margin percentage	1.45		%	1.96		%	2.53		%	2.45		%	2.43		%	1.92		%	2.31		%
Other Information


Credit-related statistics
Nonperforming assets (b)	$	836		$	840		$	841		$	834		$	856
Net charge-offs - loans and leases	$	141		$	138		$	139		$	128		$	114		$	418		$	335
Other statistics
Branches (b) (d)	2,242			2,247			2,271			2,299			2,303
Brokerage account client assets (in billions) (b) (e)	$	84		$	81		$	81		$	78		$	73

(a)Represents mortgage loan servicing balances for third parties and the related income.

(b)Presented as of period end.

(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)Reflects all branches excluding standalone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(e)Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 16

Table 17: Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions	2024			2024			2024			2023			2023			2024			2023
Income Statement
Net interest income	$	1,615		$	1,560		$	1,549		$	1,642		$	1,419		$	4,724		$	4,214
Noninterest income	1,030			942			888			995			835			2,860			2,542
Total revenue	2,645			2,502			2,437			2,637			2,254			7,584			6,756
Provision for credit losses	134			228			47			115			102			409			283
Noninterest expense	950			911			922			975			895			2,783			2,755
Pretax earnings	1,561			1,363			1,468			1,547			1,257			4,392			3,718
Income taxes	359			312			342			330			292			1,013			867
Noncontrolling interests	5			5			5			4			5			15			15
Earnings	$	1,197		$	1,046		$	1,121		$	1,213		$	960		$	3,364		$	2,836
Average Balance Sheet
Loans held for sale	$	339		$	212		$	151		$	450		$	283		$	234		$	392
Loans
Commercial
Commercial and industrial	$	163,061		$	163,083		$	163,326		$	167,185		$	161,810		$	163,156		$	165,987
Commercial real estate	34,450			34,441			34,420			34,488			34,587			34,437			34,534
Equipment lease financing	6,529			6,490			6,467			6,430			6,441			6,496			6,419
Total commercial	204,040			204,014			204,213			208,103			202,838			204,089			206,940
Consumer	3			4			3			5			4			3			6
Total loans	$	204,043		$	204,018		$	204,216		$	208,108		$	202,842		$	204,092		$	206,946
Total assets	$	227,277		$	229,604		$	228,698		$	234,590		$	230,082		$	228,518		$	232,914
Deposits
Noninterest-bearing	$	41,174		$	41,185		$	43,854		$	46,880		$	48,123		$	42,068		$	52,829
Interest-bearing	104,872			98,716			98,841			97,660			93,563			100,824			89,845
Total deposits	$	146,046		$	139,901		$	142,695		$	144,540		$	141,686		$	142,892		$	142,674
Performance Ratios
Return on average assets	2.09		%	1.83		%	1.99		%	2.05		%	1.66		%	1.97		%	1.63		%
Noninterest income to total revenue	39		%	38		%	36		%	38		%	37		%	38		%	38		%
Efficiency	36		%	36		%	38		%	37		%	40		%	37		%	41		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	974		$	954		$	936		$	1,044		$	849		$	2,864		$	2,412
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (c)	$	16		$	17		$	10		$	17		$	17		$	43		$	57
Commercial mortgage loan servicing income (d)	90			84			67			59			43			241			126
Commercial mortgage servicing rights valuation, net of economic hedge	32			39			37			19			54			108			99
Total	$	138		$	140		$	114		$	95		$	114		$	392		$	282
Commercial mortgage servicing statistics
Serviced portfolio balance (in billions) (e) (f)	$	289		$	289		$	287		$	288		$	282
MSR asset value (e)	$	975		$	1,082		$	1,075		$	1,032		$	1,169
Average loans by C&IB business
Corporate Banking	$	116,330		$	116,439		$	116,845		$	119,916		$	113,538		$	116,537		$	116,777
Real Estate	46,181			45,987			46,608			47,028			47,234			46,258			47,407
Business Credit	29,825			29,653			28,929			29,252			29,900			29,470			30,230
Commercial Banking	7,438			7,527			7,546			7,591			7,861			7,503			8,170
Other	4,269			4,412			4,288			4,321			4,309			4,324			4,362
Total average loans	$	204,043		$	204,018		$	204,216		$	208,108		$	202,842		$	204,092		$	206,946
Credit-related statistics
Nonperforming assets (e)	$	1,624		$	1,528		$	1,419		$	1,217		$	1,130
Net charge-offs - loans and leases	$	147		$	129		$	108		$	76		$	12		$	384		$	190

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

(e)Presented as of period end.

(f)Represents balances related to capitalized servicing.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 17

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


	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions, except as noted	2024			2024			2024			2023			2023			2024			2023
Income Statement
Net interest income	$	161		$	163		$	157		$	156		$	139		$	481		$	391
Noninterest income	242			235			230			224			223			707			681
Total revenue	403			398			387			380			362			1,188			1,072
Provision for (recapture of) credit losses	(2)			2			(5)			2			(4)			(5)			(5)
Noninterest expense	270			261			265			284			271			796			831
Pretax earnings	135			135			127			94			95			397			246
Income taxes	31			32			30			22			22			93			58
Earnings	$	104		$	103		$	97		$	72		$	73		$	304		$	188
Average Balance Sheet
Loans
Consumer
Residential real estate	$	12,075		$	12,022		$	11,688		$	11,314		$	10,750		$	11,929		$	9,932
Other consumer	3,695			3,736			3,758			3,893			3,901			3,730			4,040
Total consumer	15,770			15,758			15,446			15,207			14,651			15,659			13,972
Commercial	715			814			849			867			1,090			792			1,188
Total loans	$	16,485		$	16,572		$	16,295		$	16,074		$	15,741		$	16,451		$	15,160
Total assets	$	16,928		$	17,018		$	16,728		$	16,505		$	16,161		$	16,891		$	15,578
Deposits
Noninterest-bearing	$	1,674		$	1,648		$	1,617		$	1,742		$	1,756		$	1,646		$	1,796
Interest-bearing	25,571			26,245			27,064			26,479			25,417			26,291			25,742
Total deposits	$	27,245		$	27,893		$	28,681		$	28,221		$	27,173		$	27,937		$	27,538
Performance Ratios
Return on average assets	2.44		%	2.43		%	2.35		%	1.73		%	1.79		%	2.41		%	1.61		%
Noninterest income to total revenue	60		%	59		%	59		%	59		%	62		%	60		%	64		%
Efficiency	67		%	66		%	68		%	75		%	75		%	67		%	78		%
Other Information
Nonperforming assets (b)	$	36		$	51		$	28		$	39		$	39
Net charge-offs (recoveries) - loans and leases										$	(1)								$	(2)
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management
PNC Private Bank	$	132		$	123		$	124		$	117		$	109
Institutional Asset Management	82			73			71			72			67
Total discretionary clients assets under management	214			196			195			189			176
Nondiscretionary client assets under administration	216			208			199			179			170
Total	$	430		$	404		$	394		$	368		$	346

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

(b)Presented 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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