Document

Exhibit 99.2

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2025

(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			16-17
Asset Management Group			18

Glossary of Terms			19-20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on April 15, 2025. 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 First Quarter 2025 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	16-17
18	Asset Management Group	18


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
In millions, except per share data	2025			2024			2024			2024			2024
Interest Income
Loans	$	4,472		$	4,731		$	4,954		$	4,842		$	4,819
Investment securities	1,124			1,142			1,097			1,001			883
Other	534			621			771			725			798
Total interest income	6,130			6,494			6,822			6,568			6,500
Interest Expense
Deposits	1,808			2,010			2,230			2,084			2,077
Borrowed funds	846			961			1,182			1,182			1,159
Total interest expense	2,654			2,971			3,412			3,266			3,236
Net interest income	3,476			3,523			3,410			3,302			3,264
Noninterest Income
Asset management and brokerage	391			374			383			364			364
Capital markets and advisory	306			348			371			272			259
Card and cash management	692			695			698			706			671
Lending and deposit services	316			330			320			304			305
Residential and commercial mortgage	134			122			181			131			147
Other income
Gain on Visa shares exchange program										754
Securities gains (losses)	(2)			(2)			1			(499)
Other (a)	139			177			68			77			135
Total other income	137			175			69			332			135
Total noninterest income	1,976			2,044			2,022			2,109			1,881
Total revenue	5,452			5,567			5,432			5,411			5,145
Provision For Credit Losses	219			156			243			235			155
Noninterest Expense
Personnel	1,890			1,857			1,869			1,782			1,794
Occupancy	245			240			234			236			244
Equipment	384			473			357			356			341
Marketing	85			112			93			93			64
Other	783			824			774			890			891
Total noninterest expense	3,387			3,506			3,327			3,357			3,334
Income before income taxes and noncontrolling interests	1,846			1,905			1,862			1,819			1,656
Income taxes	347			278			357			342			312




Net income	1,499			1,627			1,505			1,477			1,344
Less: Net income attributable to noncontrolling interests	18			17			15			18			14
Preferred stock dividends (b)	71			94			82			95			81
Preferred stock discount accretion and redemptions	2			2			2			2			2
Net income attributable to common shareholders	$	1,408		$	1,514		$	1,406		$	1,362		$	1,247
Earnings Per Common Share
Basic	$	3.52		$	3.77		$	3.50		$	3.39		$	3.10


Diluted	$	3.51		$	3.77		$	3.49		$	3.39		$	3.10


Average Common Shares Outstanding
Basic	398			399			399			400			400
Diluted	398			399			400			400			400
Efficiency	62		%	63		%	61		%	62		%	65		%
Noninterest income to total revenue	36		%	37		%	37		%	39		%	37		%
Effective tax rate (c)	18.8		%	14.6		%	19.2		%	18.8		%	18.8		%

(a)Includes Visa derivative fair value adjustments of $(40) million, $(23) million, $(128) million, $(116) million and $(7) million for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, 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)


	March 31		December 31		September 30		June 30		March 31
In millions, except par value	2025		2024		2024		2024		2024
Assets
Cash and due from banks	$	6,102	$	6,904	$	6,162	$	6,242	$	5,933
Interest-earning deposits with banks (a)	32,298		39,347		35,024		33,039		53,612
Loans held for sale (b)	1,236		850		750		988		743
Investment securities – available-for-sale	63,318		62,039		60,338		51,188		42,280
Investment securities – held-to-maturity	74,457		77,693		83,845		87,457		88,180
Loans (b)	318,850		316,467		321,381		321,429		319,781
Allowance for loan and lease losses	(4,544)		(4,486)		(4,589)		(4,636)		(4,693)
Net loans	314,306		311,981		316,792		316,793		315,088
Equity investments	9,448		9,600		9,217		9,037		8,280
Mortgage servicing rights	3,564		3,711		3,503		3,739		3,762
Goodwill	10,932		10,932		10,932		10,932		10,932
Other (b)	39,061		36,981		38,318		37,104		37,352
Total assets	$	554,722	$	560,038	$	564,881	$	556,519	$	566,162
Liabilities
Deposits
Noninterest-bearing	$	92,369	$	92,641	$	94,588	$	94,542	$	98,061
Interest-bearing (b)	330,546		334,097		329,378		321,849		327,563
Total deposits	422,915		426,738		423,966		416,391		425,624
Borrowed funds
Federal Home Loan Bank advances	18,000		22,000		28,000		35,000		37,000
Senior debt	34,987		32,497		32,492		29,601		27,907
Subordinated debt	4,163		4,104		4,196		4,078		4,827
Other (b)	3,572		3,072		3,381		2,712		2,973
Total borrowed funds	60,722		61,673		68,069		71,391		72,707
Allowance for unfunded lending related commitments	674		719		725		717		672
Accrued expenses and other liabilities (b)	13,960		16,439		16,392		15,339		15,785
Total liabilities	498,271		505,569		509,152		503,838		514,788
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800,000,000 shares, issued 543,310,646; 543,310,646; 543,225,979; 543,225,979 and 543,116,260 shares	2,717		2,717		2,716		2,716		2,716
Capital surplus	18,731		18,710		19,150		19,098		19,032
Retained earnings	60,051		59,282		58,412		57,652		56,913
Accumulated other comprehensive income (loss)	(5,237)		(6,565)		(5,090)		(7,446)		(8,042)
Common stock held in treasury at cost: 147,519,772; 147,373,633; 146,306,706; 145,667,981 and 145,068,954 shares	(19,857)		(19,719)		(19,499)		(19,378)		(19,279)
Total shareholders’ equity	56,405		54,425		55,689		52,642		51,340
Noncontrolling interests	46		44		40		39		34
Total equity	56,451		54,469		55,729		52,681		51,374
Total liabilities and equity	$	554,722	$	560,038	$	564,881	$	556,519	$	566,162

(a)Amounts include balances held with the Federal Reserve Bank of $31.9 billion, $39.0 billion, $34.6 billion, $32.6 billion and $53.2 billion as of March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

(b)Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2024 Form 10-K included, and our first quarter 2025 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
	March 31		December 31		September 30		June 30		March 31
In millions	2025		2024		2024		2024		2024
Assets
Interest-earning assets:
Investment securities
Securities available-for-sale
Residential mortgage-backed	$	33,793	$	32,865	$	31,491	$	30,780	$	30,989
Commercial mortgage-backed	2,899		2,867		2,635		2,698		2,622
Asset-backed	2,322		2,344		2,177		1,987		1,414
U.S. Treasury and government agencies	24,382		23,086		17,311		15,350		8,199
Other	2,284		2,445		2,575		2,620		2,776
Total securities available-for-sale	65,680		63,607		56,189		53,435		46,000
Securities held-to-maturity
Residential mortgage-backed	40,045		40,833		41,698		42,234		42,633
Commercial mortgage-backed	1,687		1,880		2,057		2,174		2,252
Asset-backed	3,158		3,720		4,422		5,035		5,627
U.S. Treasury and government agencies	28,931		31,049		35,093		35,467		35,860
Other	2,680		2,774		2,855		2,961		3,062
Total securities held-to-maturity	76,501		80,256		86,125		87,871		89,434
Total investment securities	142,181		143,863		142,314		141,306		135,434
Loans
Commercial and industrial	177,333		177,433		177,019		177,130		177,258
Commercial real estate	33,067		34,476		35,451		35,523		35,522
Equipment lease financing	6,692		6,737		6,528		6,490		6,468
Consumer	53,421		53,735		53,543		53,503		53,933
Residential real estate	46,111		46,677		47,061		47,272		47,428
Total loans	316,624		319,058		319,602		319,918		320,609
Interest-earning deposits with banks (c)	34,614		37,929		45,319		41,113		48,250
Other interest-earning assets	10,147		10,337		8,909		9,279		8,002
Total interest-earning assets	503,566		511,187		516,144		511,616		512,295
Noninterest-earning assets	52,811		52,911		53,369		51,414		50,553
Total assets	$	556,377	$	564,098	$	569,513	$	563,030	$	562,848
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	73,063	$	73,219	$	72,578	$	67,631	$	67,838
Demand	125,046		124,294		119,914		121,423		122,748
Savings	97,409		95,957		95,939		97,232		97,719
Time deposits	32,763		35,656		37,880		34,663		32,975
Total interest-bearing deposits	328,281		329,126		326,311		320,949		321,280
Borrowed funds
Federal Home Loan Bank advances	19,703		24,014		31,785		35,962		37,717
Senior debt	34,933		32,572		32,204		29,717		28,475
Subordinated debt	4,320		4,324		4,330		4,567		5,082
Other	5,549		6,259		7,764		7,210		4,316
Total borrowed funds	64,505		67,169		76,083		77,456		75,590
Total interest-bearing liabilities	392,786		396,295		402,394		398,405		396,870
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	92,367		96,136		95,811		96,284		98,875
Accrued expenses and other liabilities	16,214		17,068		17,395		17,144		16,404
Equity	55,010		54,599		53,913		51,197		50,699
Total liabilities and equity	$	556,377	$	564,098	$	569,513	$	563,030	$	562,848

(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. Fair value 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 $34.2 billion, $37.5 billion, $44.9 billion, $40.7 billion and $47.8 billion for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 4


Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended
	March 31		December 31		September 30		June 30		March 31
	2025		2024		2024		2024		2024
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available-for-sale
Residential mortgage-backed	3.68	%	3.60	%	3.45	%	3.11	%	3.00	%
Commercial mortgage-backed	2.92	%	3.11	%	3.08	%	3.07	%	2.99	%
Asset-backed	5.46	%	5.77	%	5.85	%	5.92	%	6.02	%
U.S. Treasury and government agencies	4.50	%	4.75	%	5.40	%	4.28	%	2.67	%
Other	2.73	%	2.69	%	2.70	%	2.66	%	2.63	%
Total securities available-for-sale	3.98	%	4.04	%	4.09	%	3.53	%	3.01	%
Securities held-to-maturity
Residential mortgage-backed	2.84	%	2.83	%	2.82	%	2.79	%	2.77	%
Commercial mortgage-backed	4.70	%	5.05	%	5.33	%	5.38	%	5.46	%
Asset-backed	3.97	%	4.31	%	4.62	%	4.65	%	4.49	%
U.S. Treasury and government agencies	1.49	%	1.46	%	1.33	%	1.31	%	1.31	%
Other	4.69	%	4.69	%	4.72	%	4.69	%	4.52	%
Total securities held-to-maturity	2.48	%	2.48	%	2.43	%	2.43	%	2.42	%
Total investment securities	3.17	%	3.17	%	3.08	%	2.84	%	2.62	%
Loans
Commercial and industrial	5.74	%	5.94	%	6.28	%	6.22	%	6.18	%
Commercial real estate	5.94	%	6.24	%	6.68	%	6.66	%	6.67	%
Equipment lease financing	5.05	%	5.43	%	5.65	%	5.37	%	5.17	%
Consumer	7.14	%	7.29	%	7.47	%	7.24	%	7.16	%
Residential real estate	3.78	%	3.75	%	3.73	%	3.70	%	3.65	%
Total loans	5.70	%	5.87	%	6.13	%	6.05	%	6.01	%
Interest-earning deposits with banks	4.42	%	4.86	%	5.48	%	5.47	%	5.47	%
Other interest-earning assets	6.02	%	6.17	%	6.78	%	6.98	%	6.92	%
Total yield on interest-earning assets	4.90	%	5.04	%	5.25	%	5.13	%	5.08	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	2.99	%	3.18	%	3.59	%	3.39	%	3.45	%
Demand	1.87	%	2.05	%	2.31	%	2.25	%	2.26	%
Savings	1.64	%	1.70	%	1.86	%	1.85	%	1.81	%
Time deposits	3.69	%	4.15	%	4.47	%	4.48	%	4.44	%
Total interest-bearing deposits	2.23	%	2.43	%	2.72	%	2.61	%	2.60	%
Borrowed funds
Federal Home Loan Bank advances	4.73	%	5.06	%	5.63	%	5.66	%	5.65	%
Senior debt	5.64	%	6.12	%	6.64	%	6.55	%	6.59	%
Subordinated debt	5.54	%	6.10	%	6.77	%	6.65	%	6.64	%
Other	4.38	%	4.70	%	5.28	%	5.51	%	5.59	%
Total borrowed funds	5.25	%	5.61	%	6.09	%	6.04	%	6.07	%
Total rate on interest-bearing liabilities	2.72	%	2.95	%	3.34	%	3.26	%	3.24	%
Interest rate spread	2.18	%	2.09	%	1.91	%	1.87	%	1.84	%
Benefit from use of noninterest-bearing sources (b)	0.60	%	0.66	%	0.73	%	0.73	%	0.73	%
Net interest margin	2.78	%	2.75	%	2.64	%	2.60	%	2.57	%

(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 March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024 were $28 million, $30 million, $33 million, $34 million and $34 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)


	March 31		December 31		September 30		June 30		March 31
In millions	2025		2024		2024		2024		2024
Commercial
Commercial and industrial
Financial services	$	29,335	$	27,737	$	29,244	$	27,986	$	27,640
Manufacturing	28,934		27,700		28,748		29,544		29,402
Service providers	22,943		21,881		22,033		21,948		21,413
Wholesale trade	19,176		18,399		18,338		18,532		17,341
Real estate related (a)	15,041		14,910		14,856		15,198		15,583
Retail trade	11,941		11,611		11,888		11,596		11,582
Technology, media and telecommunications	9,998		9,767		9,292		9,621		10,158
Health care	9,903		9,694		10,169		9,527		10,193
Transportation and warehousing	7,147		7,320		7,723		8,036		7,523
Other industries	26,119		26,771		26,600		26,801		25,957
Total commercial and industrial	180,537		175,790		178,891		178,789		176,792
Commercial real estate	32,307		33,619		35,104		35,498		35,591
Equipment lease financing	6,732		6,755		6,726		6,555		6,462
Total commercial	219,576		216,164		220,721		220,842		218,845
Consumer
Residential real estate	45,890		46,415		46,972		47,183		47,386
Home equity	25,846		25,991		25,970		25,917		25,896
Automobile	15,324		15,355		15,135		14,820		14,788
Credit card	6,550		6,879		6,827		6,849		6,887
Education	1,597		1,636		1,693		1,732		1,859
Other consumer	4,067		4,027		4,063		4,086		4,120
Total consumer	99,274		100,303		100,660		100,587		100,936
Total loans	$	318,850	$	316,467	$	321,381	$	321,429	$	319,781

(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
	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2025			2024			2024			2024			2024
Allowance for loan and lease losses
Beginning balance	$	4,486		$	4,589		$	4,636		$	4,693		$	4,791
Gross charge-offs:
Commercial and industrial	(103)			(78)			(89)			(77)			(84)
Commercial real estate	(18)			(87)			(102)			(113)			(56)
Equipment lease financing	(10)			(9)			(9)			(8)			(8)
Residential real estate	(2)			(1)						(1)			(1)
Home equity	(9)			(9)			(8)			(9)			(10)
Automobile	(35)			(33)			(34)			(32)			(32)
Credit card	(90)			(87)			(86)			(90)			(92)
Education	(5)			(6)			(4)			(5)			(4)
Other consumer	(40)			(44)			(44)			(40)			(43)
Total gross charge-offs	(312)			(354)			(376)			(375)			(330)
Recoveries:
Commercial and industrial	35			39			22			39			19
Commercial real estate	5			2			2			7			2
Equipment lease financing	7			5			4			6			2
Residential real estate	2			2			2			3			3
Home equity	8			11			10			12			9
Automobile	23			23			25			24			25
Credit card	15			13			15			12			15
Education	2			1			2			1			2
Other consumer	10			8			8			9			10
Total recoveries	107			104			90			113			87
Net (charge-offs) / recoveries:
Commercial and industrial	(68)			(39)			(67)			(38)			(65)
Commercial real estate	(13)			(85)			(100)			(106)			(54)
Equipment lease financing	(3)			(4)			(5)			(2)			(6)
Residential real estate				1			2			2			2
Home equity	(1)			2			2			3			(1)
Automobile	(12)			(10)			(9)			(8)			(7)
Credit card	(75)			(74)			(71)			(78)			(77)
Education	(3)			(5)			(2)			(4)			(2)
Other consumer	(30)			(36)			(36)			(31)			(33)
Total net (charge-offs)	(205)			(250)			(286)			(262)			(243)
Provision for credit losses (a)	260			155			235			204			147
Other	3			(8)			4			1			(2)
Ending balance	$	4,544		$	4,486		$	4,589		$	4,636		$	4,693
Supplemental Information
Net charge-offs
Commercial net charge-offs	$	(84)		$	(128)		$	(172)		$	(146)		$	(125)
Consumer net charge-offs	(121)			(122)			(114)			(116)			(118)
Total net charge-offs	$	(205)		$	(250)		$	(286)		$	(262)		$	(243)
Net charge-offs to average loans (annualized)	0.26		%	0.31		%	0.36		%	0.33		%	0.30		%
Commercial	0.16		%	0.23		%	0.31		%	0.27		%	0.23		%
Consumer	0.49		%	0.48		%	0.45		%	0.46		%	0.47		%

(a)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
	March 31		December 31		September 30		June 30		March 31
In millions	2025		2024		2024		2024		2024
Provision for credit losses
Loans and leases	$	260	$	155	$	235	$	204	$	147
Unfunded lending related commitments	(46)		(5)		7		45		9
Investment securities	3						(11)		1
Other financial assets	2		6		1		(3)		(2)
Total provision for credit losses	$	219	$	156	$	243	$	235	$	155

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


	March 31, 2025						December 31, 2024						March 31, 2024
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	$	1,704	$	180,537	0.94	%	$	1,605	$	175,790	0.91	%	$	1,673	$	176,792	0.95	%
Commercial real estate	1,433		32,307		4.44	%	1,483		33,619		4.41	%	1,468		35,591		4.12	%
Equipment lease financing	68		6,732		1.01	%	60		6,755		0.89	%	76		6,462		1.18	%
Total commercial	3,205		219,576		1.46	%	3,148		216,164		1.46	%	3,217		218,845		1.47	%
Consumer
Residential real estate	43		45,890		0.09	%	37		46,415		0.08	%	39		47,386		0.08	%
Home equity	286		25,846		1.11	%	266		25,991		1.02	%	272		25,896		1.05	%
Automobile	167		15,324		1.09	%	160		15,355		1.04	%	173		14,788		1.17	%
Credit card	621		6,550		9.48	%	664		6,879		9.65	%	749		6,887		10.88	%
Education	48		1,597		3.01	%	48		1,636		2.93	%	56		1,859		3.01	%
Other consumer	174		4,067		4.28	%	163		4,027		4.05	%	187		4,120		4.54	%
Total consumer	1,339		99,274		1.35	%	1,338		100,303		1.33	%	1,476		100,936		1.46	%
Total	4,544		$	318,850	1.43	%	4,486		$	316,467	1.42	%	4,693		$	319,781	1.47	%
Allowance for unfunded lending related commitments	674						719						672
Allowance for credit losses	$	5,218					$	5,205					$	5,365

Supplemental Information
Allowance for credit losses to total loans					1.64	%					1.64	%					1.68	%
Commercial					1.70	%					1.72	%					1.71	%
Consumer					1.50	%					1.47	%					1.60	%

(a) Excludes allowances for investment securities and other financial assets, which together totaled $91 million, $114 million and $117 million at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 8

Details of Nonperforming Assets (Unaudited)

Table 9: Nonperforming Assets by Type


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2025			2024			2024			2024			2024
Nonperforming loans
Commercial
Commercial and industrial
Service providers	$	140		$	187		$	152		$	152		$	158
Retail trade	121			18			22			51			9
Manufacturing	96			30			35			79			60
Health care	76			73			75			37			40
Technology, media and telecommunications	52			73			74			108			177
Transportation and warehousing	44			47			46			41			40
Real estate related (a)	22			24			29			47			23
Wholesale trade	15			43			127			19			21
Other industries	30			33			162			168			50
Total commercial and industrial	596			528			722			702			578
Commercial real estate	851			919			993			928			923
Equipment lease financing	20			15			14			16			13
Total commercial	1,467			1,462			1,729			1,646			1,514
Consumer (b)
Residential real estate	287			278			265			275			284
Home equity	437			482			473			468			464
Automobile	83			86			90			93			97
Credit card	15			15			15			13			13
Other consumer	3			3			6			8			8
Total consumer	825			864			849			857			866
Total nonperforming loans (c)	2,292			2,326			2,578			2,503			2,380
OREO and foreclosed assets	32			31			31			34			35
Total nonperforming assets	$	2,324		$	2,357		$	2,609		$	2,537		$	2,415
Nonperforming loans to total loans	0.72		%	0.73		%	0.80		%	0.78		%	0.74		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.73		%	0.74		%	0.81		%	0.79		%	0.76		%
Nonperforming assets to total assets	0.42		%	0.42		%	0.46		%	0.46		%	0.43		%
Allowance for loan and lease losses to nonperforming loans	198		%	193		%	178		%	185		%	197		%

(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
	March 31		December 31		September 30		June 30		March 31
Dollars in millions	2025		2024		2024		2024		2024
Beginning balance	$	2,357	$	2,609	$	2,537	$	2,415	$	2,216

New nonperforming assets	477		397		661		571		616
Charge-offs and valuation adjustments	(135)		(174)		(200)		(178)		(133)
Principal activity, including paydowns and payoffs	(156)		(401)		(322)		(201)		(188)
Asset sales and transfers to loans held for sale	(77)		(15)		(6)		(16)		(16)
Returned to performing status	(142)		(59)		(61)		(54)		(80)
Ending balance	$	2,324	$	2,357	$	2,609	$	2,537	$	2,415


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 9

Accruing Loans Past Due (Unaudited)

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



	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2025			2024			2024			2024			2024
Commercial
Commercial and industrial	$	216		$	159		$	106		$	95		$	125
Commercial real estate	6			25			9			8			2
Equipment lease financing	41			41			22			19			22
Total commercial	263			225			137			122			149
Consumer
Residential real estate
Non government insured	208			161			162			201			179
Government insured	79			73			76			77			78
Home equity	71			71			65			64			64
Automobile	73			83			81			92			81
Credit card	45			49			55			50			49
Education
Non government insured	5			5			6			5			5
Government insured	20			20			20			22			20
Other consumer	10			10			12			12			11
Total consumer	511			472			477			523			487
Total	$	774		$	697		$	614		$	645		$	636
Supplemental Information
Total accruing loans past due 30-59 days to total loans	0.24		%	0.22		%	0.19		%	0.20		%	0.20		%
Commercial	0.12		%	0.10		%	0.06		%	0.06		%	0.07		%
Consumer	0.51		%	0.47		%	0.47		%	0.52		%	0.48		%

(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)


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2025			2024			2024			2024			2024
Commercial
Commercial and industrial	$	34		$	43		$	40		$	53		$	35
Commercial real estate				18						2
Equipment lease financing	11			12			12			6			4
Total commercial	45			73			52			61			39
Consumer
Residential real estate
Non government insured	93			58			40			48			50
Government insured	39			48			45			43			42
Home equity	28			26			27			24			24
Automobile	19			22			21			22			19
Credit card	33			38			39			37			37
Education
Non government insured	3			2			3			2			4
Government insured	11			13			13			13			13
Other consumer	7			8			12			9			7
Total consumer	233			215			200			198			196
Total	$	278		$	288		$	252		$	259		$	235
Supplemental Information
Total accruing loans past due 60-89 days to total loans	0.09		%	0.09		%	0.08		%	0.08		%	0.07		%
Commercial	0.02		%	0.03		%	0.02		%	0.03		%	0.02		%
Consumer	0.23		%	0.21		%	0.20		%	0.20		%	0.19		%

(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)


	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2025			2024			2024			2024			2024
Commercial
Commercial and industrial	$	75		$	72		$	97		$	86		$	90
Commercial real estate										1
Total commercial	75			72			97			87			90
Consumer
Residential real estate
Non government insured	53			56			52			27			38
Government insured	130			132			127			128			137
Automobile	7			9			6			6			5
Credit card	71			81			79			76			82
Education
Non government insured	2			2			2			2			3
Government insured	34			37			38			34			40
Other consumer	7			8			8			8			9
Total consumer	304			325			312			281			314
Total	$	379		$	397		$	409		$	368		$	404
Supplemental Information
Total accruing loans past due 90 days or more to total loans	0.12		%	0.13		%	0.13		%	0.11		%	0.13		%
Commercial	0.03		%	0.03		%	0.04		%	0.04		%	0.04		%
Consumer	0.31		%	0.32		%	0.31		%	0.28		%	0.31		%
Total accruing loans past due	$	1,431		$	1,382		$	1,275		$	1,272		$	1,275
Commercial	$	383		$	370		$	286		$	270		$	278
Consumer	$	1,048		$	1,012		$	989		$	1,002		$	997
Total accruing loans past due to total loans	0.45		%	0.44		%	0.40		%	0.40		%	0.40		%
Commercial	0.17		%	0.17		%	0.13		%	0.12		%	0.13		%
Consumer	1.06		%	1.01		%	0.98		%	1.00		%	0.99		%

(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


	March 31	December 31	September 30	June 30	March 31
	2025	2024	2024	2024	2024
Full-time employees
Retail Banking	27,108	27,513	27,740	27,935	28,580
Other full-time employees	26,360	26,173	26,009	25,997	25,861
Total full-time employees	53,468	53,686	53,749	53,932	54,441
Part-time employees
Retail Banking	1,460	1,451	1,451	1,558	1,554
Other part-time employees	48	47	49	422	56
Total part-time employees	1,508	1,498	1,500	1,980	1,610
Total	54,976	55,184	55,249	55,912	56,051


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 13

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


	Three months ended
	March 31		December 31		September 30		June 30		March 31
In millions	2025		2024		2024		2024		2024
Net Income
Retail Banking	$	1,112	$	1,074	$	1,164	$	1,715	$	1,085
Corporate & Institutional Banking	1,244		1,365		1,197		1,046		1,121
Asset Management Group	113		103		104		103		97
Other	(988)		(932)		(975)		(1,405)		(973)
Net income excluding noncontrolling interests	$	1,481	$	1,610	$	1,490	$	1,459	$	1,330

Revenue
Retail Banking	$	3,532	$	3,532	$	3,484	$	4,118	$	3,381
Corporate & Institutional Banking	2,630		2,755		2,645		2,502		2,437
Asset Management Group	427		413		403		398		387
Other	(1,137)		(1,133)		(1,100)		(1,607)		(1,060)
Total revenue	$	5,452	$	5,567	$	5,432	$	5,411	$	5,145

(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
	March 31			December 31				September 30				June 30			March 31
Dollars in millions	2025			2024				2024				2024			2024
Income Statement
Net interest income	$	2,826		$	2,824			$	2,783			$	2,709		$	2,617
Noninterest income	706			708				701				1,409			764
Total revenue	3,532			3,532				3,484				4,118			3,381
Provision for credit losses	168			106				111				27			118
Noninterest expense
Personnel	548			546				549				543			551
Segment allocations (b)	938			948				901				910			894
Depreciation and amortization	89			75				78				80			79
Other (c)	328			442				314				308			313
Total noninterest expense	1,903			2,011				1,842				1,841			1,837
Pretax earnings	1,461			1,415				1,531				2,250			1,426
Income taxes	340			330				358				524			333
Noncontrolling interests	9			11				9				11			8
Earnings	$	1,112		$	1,074		752	$	1,164		322	$	1,715		$	1,085
Average Balance Sheet
Loans held for sale	$	860		$	873			$	986			$	641		$	478
Loans
Consumer
Residential real estate	$	33,169		$	33,620			$	33,913			$	34,144		$	34,600
Home equity	24,358			24,408				24,345				24,347			24,462
Automobile	15,240			15,213				15,000				14,785			14,839
Credit card	6,568			6,779				6,805				6,840			6,930
Education	1,637			1,674				1,723				1,822			1,933
Other consumer	1,754			1,776				1,756				1,745			1,771
Total consumer	82,726			83,470				83,542				83,683			84,535
Commercial	12,840			12,927				12,788				12,787			12,620
Total loans	$	95,566		$	96,397			$	96,330			$	96,470		$	97,155
Total assets	$	112,971		$	114,957			$	114,257			$	115,102		$	114,199
Deposits
Noninterest-bearing	$	51,229		$	52,425			$	52,990			$	53,453		$	53,395
Interest-bearing	193,832			194,364				196,255				196,278			195,615
Total deposits	$	245,061		$	246,789			$	249,245			$	249,731		$	249,010
Performance Ratios
Return on average assets	3.99		%	3.71		%		4.04		%		5.98		%	3.85		%
Noninterest income to total revenue	20		%	20		%		20		%		34		%	23		%
Efficiency	54		%	57		%		53		%		45		%	54		%

(continued on following page)


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 15

Retail Banking (Unaudited) (Continued)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions, except as noted	2025			2024			2024			2024			2024
Supplemental Noninterest Income Information
Asset management and brokerage	$	152		$	135		$	145		$	135		$	137
Card and cash management	$	296		$	308		$	319		$	330		$	306
Lending and deposit services	$	184		$	191		$	193		$	182		$	178
Residential and commercial mortgage	$	65		$	46		$	129		$	70		$	97
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (d)
Serviced portfolio balance (e)	$	193		$	197		$	200		$	204		$	207
MSR asset value (e)	$	2.5		$	2.6		$	2.5		$	2.7		$	2.7
Servicing income: (in millions)
Servicing fees, net (f)	$	71		$	69		$	69		$	67		$	82
Mortgage servicing rights valuation net of economic hedge	$	(4)		$	(28)		$	53		$	(14)		$	(6)
Residential mortgage loan statistics
Loan origination volume (in billions)	$	1.0		$	1.6		$	1.8		$	1.7		$	1.3
Loan sale margin percentage	0.58		%	1.26		%	1.45		%	1.96		%	2.53		%
Other Information


Credit-related statistics
Nonperforming assets (e)	$	804		$	848		$	836		$	840		$	841
Net charge-offs - loans and leases	$	144		$	152		$	141		$	138		$	139
Other statistics
Branches (e) (g)	2,217			2,234			2,242			2,247			2,271
Brokerage account client assets (in billions) (e) (h)	$	84		$	84		$	84		$	81		$	81

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

(b)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.

(c)Other is primarily comprised of other direct expenses including outside services and equipment expense. Amounts for the fourth quarter of 2024 also include asset impairments primarily related to technology investments.

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

(e)Presented as of period end.

(f)Servicing fees net of impact of decrease in MSR value due to passage of time, which includes the impact from regularly scheduled loan principal payments, prepayments and loans paid off during the period.

(g)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.

(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
	March 31			December 31			September 30			June 30			March 31
Dollars in millions	2025			2024			2024			2024			2024
Income Statement
Net interest income	$	1,652		$	1,688		$	1,615		$	1,560		$	1,549
Noninterest income	978			1,067			1,030			942			888
Total revenue	2,630			2,755			2,645			2,502			2,437
Provision for credit losses	49			44			134			228			47
Noninterest expense
Personnel	376			401			393			348			366
Segment allocations (b)	383			386			371			374			366
Depreciation and amortization	51			51			50			51			50
Other (c)	146			143			136			138			140
Total noninterest expense	956			981			950			911			922
Pretax earnings	1,625			1,730			1,561			1,363			1,468
Income taxes	377			361			359			312			342
Noncontrolling interests	4			4			5			5			5
Earnings	$	1,244		$	1,365		$	1,197		$	1,046		$	1,121
Average Balance Sheet
Loans held for sale	$	255		$	832		$	339		$	212		$	151
Loans
Commercial
Commercial and industrial	$	163,379		$	163,410		$	163,061		$	163,083		$	163,326
Commercial real estate	32,151			33,525			34,450			34,441			34,420
Equipment lease financing	6,692			6,737			6,529			6,490			6,467
Total commercial	202,222			203,672			204,040			204,014			204,213
Consumer	3			3			3			4			3
Total loans	$	202,225		$	203,675		$	204,043		$	204,018		$	204,216
Total assets	$	227,069		$	227,845		$	227,277		$	229,604		$	228,698
Deposits
Noninterest-bearing	$	39,501		$	42,119		$	41,174		$	41,185		$	43,854
Interest-bearing	108,503			109,205			104,872			98,716			98,841
Total deposits	$	148,004		$	151,324		$	146,046		$	139,901		$	142,695
Performance Ratios
Return on average assets	2.22		%	2.38		%	2.09		%	1.83		%	1.99		%
Noninterest income to total revenue	37		%	39		%	39		%	38		%	36		%
Efficiency	36		%	36		%	36		%	36		%	38		%

(continued on following page)


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 17

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


	Three months ended
	March 31		December 31		September 30		June 30		March 31
Dollars in millions	2025		2024		2024		2024		2024
Other Information
Consolidated revenue from:
Treasury Management (d)	$	1,049	$	1,058	$	974	$	954	$	936
Commercial mortgage banking activities:
Commercial mortgage loans held for sale (e)	$	26	$	38	$	16	$	17	$	10
Commercial mortgage loan servicing income (f)	94		112		90		84		67
Commercial mortgage servicing rights valuation, net of economic hedge	39		39		32		39		37
Total	$	159	$	189	$	138	$	140	$	114
Commercial mortgage servicing statistics
Serviced portfolio balance (in billions) (g) (h)	$	294	$	290	$	289	$	289	$	287
MSR asset value (g)	$	1,041	$	1,085	$	975	$	1,082	$	1,075
Average loans by C&IB business
Corporate Banking	$	117,659	$	116,364	$	116,330	$	116,439	$	116,845
Real Estate	43,283		45,472		46,181		45,987		46,608
Business Credit	30,044		30,343		29,825		29,653		28,929
Commercial Banking	7,343		7,290		7,438		7,527		7,546
Other	3,896		4,206		4,269		4,412		4,288
Total average loans	$	202,225	$	203,675	$	204,043	$	204,018	$	204,216
Credit-related statistics
Nonperforming assets (g)	$	1,372	$	1,368	$	1,624	$	1,528	$	1,419
Net charge-offs - loans and leases	$	64	$	100	$	147	$	129	$	108

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

(b)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.

(c)Other is primarily comprised of other direct expenses including outside services and equipment expense.

(d)Amounts are reported in net interest income and noninterest income.

(e)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.

(f)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.

(g)Presented as of period end.

(h)Represents balances related to capitalized servicing.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 18

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


	Three months ended
	March 31			December 31			September 30			June 30			March 31
Dollars in millions, except as noted	2025			2024			2024			2024			2024
Income Statement
Net interest income	$	184		$	171		$	161		$	163		$	157
Noninterest income	243			242			242			235			230
Total revenue	427			413			403			398			387
Provision for (recapture of) credit losses	1			2			(2)			2			(5)
Noninterest expense
Personnel	121			116			120			115			121
Segment allocations (b)	117			123			114			110			107
Depreciation and amortization	8			8			6			9			7
Other (c)	33			30			30			27			30
Total noninterest expense	279			277			270			261			265
Pretax earnings	147			134			135			135			127
Income taxes	34			31			31			32			30
Earnings	$	113		$	103		$	104		$	103		$	97
Average Balance Sheet
Loans
Consumer
Residential real estate	$	11,935		$	12,019		$	12,075		$	12,022		$	11,688
Other consumer	3,663			3,676			3,695			3,736			3,758
Total consumer	15,598			15,695			15,770			15,758			15,446
Commercial	658			668			715			814			849
Total loans	$	16,256		$	16,363		$	16,485		$	16,572		$	16,295
Total assets	$	16,702		$	16,815		$	16,928		$	17,018		$	16,728
Deposits
Noninterest-bearing	$	1,618		$	1,617		$	1,674		$	1,648		$	1,617
Interest-bearing	26,501			26,056			25,571			26,245			27,064
Total deposits	$	28,119		$	27,673		$	27,245		$	27,893		$	28,681
Performance Ratios
Return on average assets	2.74		%	2.43		%	2.44		%	2.43		%	2.35		%
Noninterest income to total revenue	57		%	59		%	60		%	59		%	59		%
Efficiency	65		%	67		%	67		%	66		%	68		%
Other Information
Nonperforming assets (d)	$	36		$	28		$	36		$	51		$	28
Net charge-offs - loans and leases				$	2
Client Assets Under Administration (in billions) (d) (e)
Discretionary client assets under management
PNC Private Bank	$	127		$	129		$	132		$	123		$	124
Institutional Asset Management	83			82			82			73			71
Total discretionary clients assets under management	210			211			214			196			195
Nondiscretionary client assets under administration	201			210			216			208			199
Total	$	411		$	421		$	430		$	404		$	394

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

(b)Represents expense allocations for corporate overhead services used by each business segment; primarily comprised of technology, human resources and occupancy-related allocations.

(c)Other is primarily comprised of other direct expenses including outside services and equipment expense.

(d)Presented as of period end.

(e)Excludes brokerage account client assets.


THE PNC FINANCIAL SERVICES GROUP, INC.						Page 19

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 20

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.

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.