PNC PNC Financial Services Group Inc

PITTSBURGH, July 14, 2017 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

 

"In the second quarter, PNC grew loans and revenue, and we controlled expenses well," said William S. Demchak, chairman, president and chief executive officer. "We've maintained a strong capital position and recently increased our common stock dividend by 36 percent to an all-time high. Our ongoing execution on our strategic priorities across the enterprise has positioned us for continued success in the current credit and interest rate environment, as well as for the long term."

Income Statement Highlights

Second quarter 2017 compared with first quarter 2017

• Total revenue grew $176 million, or 5 percent, to $4.1 billion, and PNC continued to generate positive operating leverage.
• • Net interest income increased $98 million, or 5 percent, to $2.3 billion due to higher loan yields and balances and an additional day in the second quarter partially offset by increased funding costs. The net interest margin increased 7 basis points to 2.84 percent.
  • Noninterest income increased $78 million, or 5 percent, to $1.8 billion driven by fee income growth related to higher business activity and seasonality.
• Noninterest expense increased $77 million, or 3 percent, to $2.5 billion reflecting the impact of seasonal activity.
• Provision for credit losses increased $10 million to $98 million and included an initial provision for a loan and lease portfolio obtained through a business acquisition offset by a benefit from the performance of certain residential real estate loans and home equity lines of credit reaching draw period end dates.

Balance Sheet Highlights

• Loans grew $5.2 billion, or 2 percent, to $218.0 billion at June 30, 2017 compared with March 31, 2017. 
• • Commercial lending balances increased $5.1 billion in PNC's corporate banking, real estate and business credit businesses as well as the equipment finance business, which included the acquisition on April 3, 2017 of a commercial and vendor finance business with $1.0 billion of loans and leases.
  • Consumer lending balances increased $.1 billion as growth in residential mortgage, auto and credit card loans was substantially offset by lower home equity and education loans.
• Overall credit quality remained stable.
• • Nonperforming assets of $2.2 billion at June 30, 2017 decreased $59 million, or 3 percent, compared with March 31, 2017.
  • Net charge-offs decreased to $110 million for the second quarter compared with $118 million for the first quarter.
• Deposits were $259.2 billion at June 30, 2017, a decrease of $1.5 billion, or 1 percent, compared with March 31, 2017 reflecting a seasonal decline in consumer deposits.
• • Average deposits increased $1.5 billion, or 1 percent, in the second quarter compared with the first quarter.
• Investment securities were $76.4 billion at both June 30, 2017 and March 31, 2017.
• PNC completed common stock repurchase programs for the four quarter period ending in the second quarter of 2017 and returned a total of $3.4 billion of capital to shareholders over this period through repurchases of 21.5 million common shares for $2.3 billion and dividends on common shares of $1.1 billion.
• • Capital returned to shareholders in the second quarter of 2017 totaled $1.0 billion, or 93 percent of second quarter net income attributable to diluted common shares, through repurchases of 5.7 million common shares for $.7 billion and dividends on common shares of $.3 billion.
• PNC's board of directors raised the quarterly cash dividend on common stock to 75 cents per share, an increase of 20 cents per share, or 36 percent, effective with the August dividend.
• In June 2017 PNC announced share repurchase programs of up to $2.7 billion for the four-quarter period beginning in the third quarter of 2017, including repurchases of up to $.3 billion related to employee benefit plans.
• PNC maintained strong capital and liquidity positions.
• • Transitional Basel III common equity Tier 1 capital ratio was an estimated 10.3 percent at June 30, 2017 and 10.5 percent at March 31, 2017, calculated using the regulatory capital methodologies applicable to PNC during 2017.
  • Pro forma fully phased-in Basel III common equity Tier 1 capital ratio, a non-GAAP financial measure, was an estimated 9.8 percent at June 30, 2017 and 10.0 percent at March 31, 2017, based on the standardized approach rules.
  • The Liquidity Coverage Ratio at June 30, 2017 for both PNC and PNC Bank, N.A. continued to exceed the fully phased-in requirement of 100 percent.

 

 

The Consolidated Financial Highlights accompanying this news release include additional information regarding reconciliations of non-GAAP financial measures to reported amounts. Fee income, a non-GAAP financial measure, refers to noninterest income in the following categories: asset management, consumer services, corporate services, residential mortgage and service charges on deposits. Information in this news release including the financial tables is unaudited.

 

 

Total revenue for the second quarter of 2017 grew $176 million compared with the first quarter and $266 million compared with the second quarter of 2016. Both net interest income and noninterest income increased in the comparisons. 

Net interest income for the second quarter of 2017 increased $98 million compared with the first quarter and $190 million compared with the second quarter of 2016. Higher loan yields and balances were partially offset by higher borrowing and deposit costs in both comparisons. Additionally, second quarter 2017 benefited from an additional day compared with the first quarter and from the impact of the loan and lease portfolio obtained through a business acquisition. Higher securities balances and yields also contributed to the increase in the comparison with second quarter 2016.

The net interest margin increased to 2.84 percent for the second quarter of 2017 compared with 2.77 percent for the first quarter and 2.70 percent for the second quarter of 2016. The second quarter 2017 margin reflected the benefit from higher interest rates in the quarter.

 

 

Noninterest income for the second quarter of 2017 increased $78 million compared with the first quarter driven by fee income growth. Consumer service fees grew $28 million primarily due to seasonally higher debit card, credit card and merchant services activity. Corporate service fees increased $41 million primarily as a result of higher loan syndication and treasury management fees. Residential mortgage revenue decreased $9 million reflecting lower servicing fees. Other noninterest income increased $14 million and included higher revenue from commercial mortgage loans held for sale activities and higher operating lease income related to the acquired business. Increases were partially offset by the impact of a first quarter benefit from valuation adjustments on equity investments subject to the Volcker Rule provisions of the Dodd-Frank Act.

Noninterest income for the second quarter of 2017 increased $76 million compared with the second quarter of 2016. Asset management revenue, which includes earnings from PNC's equity investment in BlackRock, grew $21 million reflecting higher equity markets. Corporate service fees increased $31 million due to higher capital markets revenue and treasury management fees. Residential mortgage revenue decreased $61 million from lower loan sales revenue and lower net hedging gains on mortgage servicing rights. Other noninterest income increased $72 million and included the impact of second quarter 2016 negative valuation adjustments on equity investments subject to the Volcker Rule, higher revenue from commercial mortgage loans held for sale activities and higher operating lease income partially offset by the impact of second quarter 2016 net gains on the sale of Visa Class B common shares. 

 

Noninterest expense for the second quarter of 2017 increased $77 million compared with the first quarter. Second quarter expense reflected seasonally higher business activity and marketing activity, and included the impact of operating expense related to the acquired business. These increases were partially offset by seasonally lower occupancy expense. Noninterest expense increased $119 million compared with the second quarter of 2016 reflecting overall higher levels of business activity and ongoing investments in technology and business infrastructure as PNC remained focused on disciplined expense management.

The effective tax rate was 26.0 percent for the second quarter of 2017, 23.0 percent for the first quarter of 2017 and 24.3 percent for the second quarter of 2016. The increase in the effective tax rate over the first quarter resulted from the impact of first quarter tax deductions related to stock-based compensation and higher pretax earnings.

CONSOLIDATED BALANCE SHEET REVIEW

Total assets were $372.2 billion at June 30, 2017 compared with $370.9 billion at March 31, 2017 and $361.3 billion at June 30, 2016. Assets grew $1.3 billion compared with March 31, 2017 as growth in loans was substantially offset by lower deposits held with the Federal Reserve Bank. Assets grew 3 percent over June 30, 2016 driven by higher loans and investment securities partially offset by lower deposits with the Federal Reserve Bank.

 

 

Total loans grew $5.2 billion as of June 30, 2017 compared with March 31, 2017. Commercial lending balances increased $5.1 billion in PNC's corporate banking, real estate and business credit businesses as well as the equipment finance business, which included the acquisition of a commercial and vendor finance business with $1.0 billion of loans and leases. Consumer lending balances increased $.1 billion as growth in residential mortgage, auto and credit card loans was substantially offset by lower home equity and education loans. Average loans grew $4.1 billion over the first quarter from higher commercial lending balances of $4.4 billion partially offset by lower consumer lending balances of $.3 billion.  

Second quarter 2017 period end and average loans increased $9.0 billion and $8.1 billion, respectively, compared with second quarter 2016 as higher commercial, residential mortgage and commercial real estate loans were partially offset by a decrease in consumer loans driven by discontinued brokered home equity and government guaranteed education loans.

 

 

Investment securities balances at June 30, 2017 were constant with March 31, 2017 and average balances for the second quarter decreased $.9 billion compared with the first quarter as portfolio runoff was substantially replaced with purchases of primarily agency residential mortgage-backed securities. Second quarter 2017 period end and average investment securities increased $4.6 billion and $5.2 billion, respectively, compared with second quarter 2016 reflecting net purchases of agency residential mortgage-backed securities and U.S. Treasury securities. Net unrealized gains on available for sale securities were $.5 billion at June 30, 2017, $.3 billion at March 31, 2017 and $1.3 billion at June 30, 2016.

Balances held with the Federal Reserve Bank decreased to $22.1 billion at June 30, 2017 compared with $27.5 billion at March 31, 2017 and $26.3 billion at June 30, 2016 in part attributable to loan growth.

 

 

Total deposits at June 30, 2017 decreased $1.5 billion compared with March 31, 2017 reflecting a seasonal decline in consumer deposit balances. Average deposits increased $1.5 billion in the second quarter compared with the first quarter driven by growth in consumer savings and demand deposits. Period end and average second quarter 2017 deposits increased $9.4 billion and $8.8 billion, respectively, compared with second quarter 2016 from overall strong deposit growth. 

 

 

Borrowed funds at June 30, 2017 increased $1.3 billion compared with March 31, 2017 and average borrowed funds increased $2.6 billion in the second quarter compared with the first quarter primarily due to higher bank notes and senior debt. Second quarter 2017 period end borrowed funds increased $1.8 billion and average borrowed funds increased $3.9 billion compared with second quarter 2016 as a result of increases in bank notes and senior debt and Federal Home Loan Bank borrowings partially offset by lower subordinated debt.

 

 

PNC maintained a strong capital position. Common shareholders' equity at June 30, 2017 increased $.3 billion compared with March 31, 2017 due to growth in retained earnings substantially offset by share repurchases. The transitional Basel III common equity Tier 1 capital ratios were calculated using the regulatory capital methodologies, including related phase-ins, applicable to PNC during 2017 and 2016 using the standardized approach. The pro forma ratios were also calculated based on the standardized approach. See Capital Ratios in the Consolidated Financial Highlights.

PNC completed common stock repurchase programs for the four quarter period ended in the second quarter of 2017 and returned a total of $3.4 billion of capital to shareholders through repurchases of 21.5 million common shares for $2.3 billion and dividends on common shares of $1.1 billion. PNC returned $1.0 billion of capital to shareholders in the second quarter of 2017 through repurchases of 5.7 million common shares for $.7 billion and dividends on common shares of $.3 billion.

In June 2017 PNC announced share repurchase programs of up to $2.7 billion for the four-quarter period beginning in the third quarter of 2017. These programs include repurchases of up to $.3 billion related to stock issuances under employee benefit plans.

On July 6, 2017, the PNC board of directors raised the quarterly cash dividend on common stock to 75 cents per share, an increase of 20 cents per share, or 36 percent, effective with the August 5, 2017 dividend payment. These capital actions are consistent with PNC's capital plan which was accepted by the Board of Governors of the Federal Reserve System in June 2017.

 

Overall credit quality for the second quarter of 2017 remained stable with the first quarter. Provision for credit losses for second quarter 2017 increased $10 million compared with the first quarter and included an initial provision for the loan and lease portfolio obtained through a business acquisition offset by a benefit from the performance of certain residential real estate loans and home equity lines of credit reaching draw period end dates.

Nonperforming assets at June 30, 2017 decreased $59 million compared with March 31, 2017 driven by lower consumer nonperforming loans partially offset by higher commercial nonperforming loans, and decreased $362 million compared with June 30, 2016 reflecting lower consumer and commercial nonperforming loans. Nonperforming assets to total assets were .58 percent at June 30, 2017 compared with .60 percent at March 31, 2017 and .70 percent at June 30, 2016.

Overall delinquencies as of June 30, 2017 declined $58 million, or 4 percent, compared with March 31, 2017 from lower accruing loans past due 90 days or more of $25 million and lower accruing loans past due 30 to 59 days of $25 million.

Net charge-offs for the second quarter of 2017 decreased $8 million compared with the first quarter, and declined $24 million compared with second quarter 2016 attributable to energy-related loans. Net charge-offs for the second quarter of 2017 were .20 percent of average loans on an annualized basis compared with .23 percent for the first quarter and .26 percent for the second quarter of 2016.

The allowance for loan and lease losses at June 30, 2017 was stable with March 31, 2017 and decreased $124 million compared with June 30, 2016. The allowance to total loans was 1.17 percent at June 30, 2017, 1.20 percent at March 31, 2017 and 1.28 percent at June 30, 2016. The allowance to nonperforming loans was 131 percent at June 30, 2017, 128 percent at March 31, 2017 and 119 percent at June 30, 2016.

 

 

Effective for the first quarter of 2017, as a result of changes to how PNC manages its businesses, it realigned its segments and, accordingly, has changed the basis of presentation of its segments, resulting in four reportable business segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group and BlackRock. For purposes of this news release, BlackRock has been combined with Other. In addition, PNC made certain adjustments to its internal funds transfer pricing methodology primarily relating to weighted average lives of certain non-maturity deposits. These changes in methodology affected business segment results, primarily adversely impacting net interest income for Corporate & Institutional Banking and Retail Banking, offset by increased net interest income in Other. All 2016 periods presented were revised to conform to the new segment alignment and to reflect the change in internal funds transfer pricing methodology.

 

 

Retail Banking earnings for the second quarter of 2017 increased compared with the first quarter and decreased compared with the second quarter of 2016. Noninterest income grew over the first quarter primarily as a result of seasonally higher customer-initiated transactions, including debit card, credit card and merchant services. Noninterest income decreased compared with the second quarter of 2016 due to the impact of second quarter 2016 net gains on the sale of Visa Class B common shares, lower residential mortgage loan sales revenue and lower net hedging gains on residential mortgage servicing rights. Provision for credit losses decreased compared with the first quarter reflecting performance of certain consumer loan portfolios. Noninterest expense increased in both comparisons as a result of higher personnel expense, marketing activity and continued investments in technology.

• Average loans increased 1 percent compared with the second quarter of 2016 as growth in residential mortgage, auto and credit card loans was partially offset by lower home equity and education loans.
• Average deposits grew 1 percent over the first quarter and 4 percent over the second quarter of 2016 due to higher demand deposits as well as an increase in savings deposits which was partially offset by lower money market deposits reflecting a shift to relationship-based savings products.
• Approximately 61 percent of second quarter 2017 residential mortgage loan origination volume was for home purchase transactions compared with 43 percent for the first quarter and 48 percent in second quarter of 2016.
• Residential mortgage loan servicing acquisitions were $8 billion for both the second and first quarters of 2017 and $6 billion in the second quarter of 2016.
• Net charge-offs were $87 million for the second quarter of 2017 compared with $100 million in the first quarter and $74 million for the second quarter of 2016.
• Retail Banking continued to focus on the strategic priority of transforming the customer experience through transaction migration, branch network and home lending transformations and multi-channel engagement and service strategies.
• • Approximately 62 percent of consumer customers used non-teller channels for the majority of their transactions during the second quarter of 2017 compared with 61 percent in the first quarter and 57 percent for the second quarter of 2016.
  • Deposit transactions via ATM and mobile channels were 52 percent of total deposit transactions in both the second and first quarters of 2017 compared to 48 percent in the second quarter of 2016.
  • PNC had a network of 2,481 branches and 8,972 ATMs at June 30, 2017. Approximately 21 percent of the branch network operates under the universal model.

 

 

Corporate & Institutional Banking earnings for the second quarter of 2017 increased compared with the first quarter of 2017 and the second quarter of 2016. Noninterest income increased in both comparisons primarily due to higher revenue from commercial mortgage loans held for sale activities, higher capital markets revenue including loan syndication fees, higher operating lease income related to the acquired business and increased treasury management fees. Provision for credit losses in the second quarter of 2017 increased in both comparisons as a result of an initial provision for the loan and lease portfolio obtained through the business acquisition and continued loan growth, as well as an increase in specific reserves compared with the first quarter. Noninterest expense increased in both comparisons due to operating expense related to the acquired business, variable costs associated with increased business activity and investments in technology and infrastructure.

• Average loans increased 4 percent over the first quarter of 2017 and 7 percent over the second quarter of 2016 driven by growth in PNC's real estate, corporate banking and business credit businesses as well as the equipment finance business, which included the acquired business with $1.0 billion of loans and leases.
• Average deposits declined slightly compared with the first quarter of 2017, and increased 3 percent compared with the second quarter of 2016 primarily driven by an increase in interest-bearing demand deposits partially offset by a decrease in money market deposits.
• Net charge-offs were $21 million in the second quarter of 2017, $21 million in the first quarter and $60 million in the second quarter of 2016, which reflected energy-related loans.
• PNC has formalized plans to expand its middle market business into the Denver, Houston and Nashville markets in 2018, following expansion to Dallas, Kansas City and Minneapolis in 2017.

 

 

Asset Management Group earnings for the second quarter of 2017 increased in both comparisons. Noninterest income was consistent with the first quarter and increased over the second quarter of 2016 reflecting higher average equity markets. Noninterest expense increased compared with the second quarter of 2016 due to higher personnel and technology-related expense. 

• Asset Management Group's strategy is focused on growing investable assets by continually evolving the client experience and products and services. The business offers an open architecture platform with a full array of investment products and banking solutions. 
• Client assets under administration at June 30, 2017 included discretionary client assets under management of $141 billion and nondiscretionary client assets under administration of $125 billion.
• • Discretionary client assets under management were stable with March 31, 2017 and increased $6 billion compared with June 30, 2016 primarily attributable to equity market increases.

Other, including BlackRock

The "Other, including BlackRock" category, for the purposes of this release, includes earnings and gains or losses related to PNC's equity interest in BlackRock, and residual activities that do not meet the criteria for disclosure as a separate reportable business, such as integration costs, asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities and certain trading activities, exited businesses, discontinued consumer loan portfolios, private equity investments, intercompany eliminations, most corporate overhead, tax adjustments that are not allocated to business segments, and differences between business segment performance reporting and financial statement reporting under generally accepted accounting principles.

CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION

PNC Chairman, President and Chief Executive Officer William S. Demchak and Chief Financial Officer Robert Q. Reilly will hold a conference call for investors today at 9:30 a.m. Eastern Time regarding the topics addressed in this news release and the related financial supplement. Dial-in numbers for the conference call are (877) 402-9134 and (303) 223-2680 (international) and Internet access to the live audio listen-only webcast of the call is available at www.pnc.com/investorevents. PNC's second quarter 2017 earnings release, the related financial supplement, and presentation slides to accompany the conference call remarks will be available at www.pnc.com/investorevents prior to the beginning of the call. A telephone replay of the call will be available for one week at (800) 633-8284 and (402) 977-9140 (international), conference ID 21852276 and a replay of the audio webcast will be available on PNC's website for 30 days.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

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Cautionary Statement Regarding Forward-Looking Information

We make statements in this news release and related conference call, and we may from time to time make other statements, regarding our outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting PNC and its future business and operations that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act.  Forward-looking statements are typically identified by words such as "believe," "plan," "expect," "anticipate," "see," "look," "intend," "outlook," "project," "forecast," "estimate," "goal," "will," "should" and other similar words and expressions.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.

Forward-looking statements speak only as of the date made.  We do not assume any duty and do not undertake to update forward-looking statements.  Actual results or future events could differ, possibly materially, from those anticipated in forward-looking statements, as well as from historical performance.

Our forward-looking statements are subject to the following principal risks and uncertainties.

• Our businesses, financial results and balance sheet values are affected by business and economic conditions, including the following:
• • Changes in interest rates and valuations in debt, equity and other financial markets.
  • Disruptions in the U.S. and global financial markets.
  • Actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply and market interest rates.
  • Changes in law and policy accompanying the new presidential administration and uncertainty or speculation pending the enactment of such changes.
  • Changes in customers', suppliers' and other counterparties' performance and creditworthiness.
  • Slowing or reversal of the current U.S. economic expansion.
  • Continued residual effects of recessionary conditions and uneven spread of positive impacts of recovery on the economy and our counterparties, including adverse impacts on levels of unemployment, loan utilization rates, delinquencies, defaults and counterparty ability to meet credit and other obligations.
  • Commodity price volatility.
  • Changes in customer preferences and behavior, whether due to changing business and economic conditions, legislative and regulatory initiatives, or other factors.
• Our forward-looking financial statements are subject to the risk that economic and financial market conditions will be substantially different than those we are currently expecting.  These statements are based on our current view that the U.S. economy and the labor market will grow moderately in 2017, boosted by stable oil/energy prices, improving consumer spending and housing activity, and some federal fiscal policy stimulus as a result of the 2016 elections. Short-term interest rates and bond yields are expected to continue rising in 2017; inflation has slowed in the first half of 2017, but should gradually accelerate into 2018. Specifically, our business outlook reflects our expectation of continued steady growth in GDP, one 25 basis point increase in short-term interest rates by the Federal Reserve in December of 2017, and an announcement from the Federal Reserve that it will begin to reduce the size of its balance sheet in the fall of 2017. We are also assuming that long-term rates rise at a slower pace than short-term rates. These forward-looking statements also do not, unless otherwise indicated, take into account the impact of potential legal and regulatory contingencies.
• PNC's ability to take certain capital actions, including paying dividends and any plans to increase common stock dividends, repurchase common stock under current or future programs, or issue or redeem preferred stock or other regulatory capital instruments, is subject to the review of such proposed actions by the Federal Reserve Board as part of PNC's comprehensive capital plan for the applicable period in connection with the Federal Reserve Board's Comprehensive Capital Analysis and Review (CCAR) process and to the acceptance of such capital plan and non-objection to such capital actions by the Federal Reserve Board.
• PNC's regulatory capital ratios in the future will depend on, among other things, the company's financial performance, the scope and terms of final capital regulations then in effect (particularly those implementing the international regulatory capital framework developed by the Basel Committee on Banking Supervision (Basel Committee), the international body responsible for developing global regulatory standards for banking organizations for consideration and adoption by national jurisdictions), and management actions affecting the composition of PNC's balance sheet.  In addition, PNC's ability to determine, evaluate and forecast regulatory capital ratios, and to take actions (such as capital distributions) based on actual or forecasted capital ratios, will be dependent at least in part on the development, validation and regulatory approval of related models.

Cautionary Statement Regarding Forward-Looking Information (Continued)

• Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities.  Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain management.  These developments could include:
• • Changes resulting from legislative and regulatory reforms, including changes affecting oversight of the financial services industry, consumer protection, bank capital and liquidity standards, tax, pension, bankruptcy and other industry aspects, and changes in accounting policies and principles.   
  • Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries.  These matters may result in monetary judgments or settlements or other remedies, including fines, penalties, restitution or alterations in our business practices, and in additional expenses and collateral costs, and may cause reputational harm to PNC.
  • Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.
  • Impact on business and operating results of any costs associated with obtaining rights in intellectual property claimed by others and of adequacy of our intellectual property protection in general.
• Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insurance, derivatives, and capital management techniques, and to meet evolving regulatory capital and liquidity standards. 
• Business and operating results also include impacts relating to our equity interest in BlackRock, Inc. and rely to a significant extent on information provided to us by BlackRock.  Risks and uncertainties that could affect BlackRock are discussed in more detail by BlackRock in its SEC filings.
• We grow our business in part by acquiring from time to time other financial services companies, financial services assets and related deposits and other liabilities.  Acquisition risks and uncertainties include those presented by the nature of the business acquired, including in some cases those associated with our entry into new businesses or new geographic or other markets and risks resulting from our inexperience in those new areas, as well as risks and uncertainties related to the acquisition transactions themselves, regulatory issues, and the integration of the acquired businesses into PNC after closing.
• Competition can have an impact on customer acquisition, growth and retention and on credit spreads and product pricing, which can affect market share, deposits and revenues.  Our ability to anticipate and respond to technological changes can also impact our ability to respond to customer needs and meet competitive demands.
• Business and operating results can also be affected by widespread natural and other disasters, pandemics, dislocations, terrorist activities, system failures, security breaches, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically.

We provide greater detail regarding these as well as other factors in our 2016 Form 10-K and our first quarter 2017 Form 10-Q, including in the Risk Factors and Risk Management sections and the Legal Proceedings and Commitments Notes of the Notes To Consolidated Financial Statements in those reports, and in our subsequent SEC filings.  Our forward-looking statements may also be subject to other risks and uncertainties, including those we may discuss elsewhere in this news release or in our SEC filings, accessible on the SEC's website at www.sec.gov and on our corporate website at www.pnc.com/secfilings.  We have included these web addresses as inactive textual references only.  Information on these websites is not part of this document.

MEDIA:
Diane Zappas 
(412) 762-4550
corporate.communications@pnc.co

INVESTORS: 
Bryan K. Gill
(412) 768-4143
investor.relations@pnc.com

 

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SOURCE PNC Financial Services Group, Inc.