PITTSBURGH, July 15, 2020 /PRNewswire/ -- The PNC
Financial Services Group, Inc. (NYSE: PNC) today reported:
|
For the
quarter
|
|
2Q20
|
1Q20
|
2Q19
|
Net income (loss)
from continuing operations
|
($744)
|
|
$759
|
|
$1,185
|
|
Net income from
discontinued operations
|
$4,399
|
|
$156
|
|
$189
|
|
Net
income $ millions
|
$3,655
|
|
$915
|
|
$1,374
|
|
Diluted earnings
(loss) from continuing operations
|
($1.90)
|
|
$1.59
|
|
$2.47
|
|
Diluted earnings from
discontinued operations
|
$10.28
|
|
$.36
|
|
$.41
|
|
Diluted earnings
per common share
|
$8.40
|
|
$1.95
|
|
$2.88
|
|
"During this remarkable period in the midst of the pandemic and
economic downturn, PNC has remained steadfast in our commitment to
our customers, communities, employees and shareholders. While our
pre-provision results for the second quarter were good in the
context of a lower rate environment and business headwinds, the
uncertainty in the economy related to the pandemic resulted in a
substantial loan loss reserve build. The monetization of our
BlackRock investment and recent CCAR results underscore the
strength of our balance sheet. Our book value per share increased
significantly, and PNC is very well positioned with substantial
capital and liquidity flexibility to continue to support our
constituents and capitalize on opportunities that may arise during
these challenging times."
Bill Demchak, PNC Chairman,
President and Chief Executive Officer
Sale of Equity Investment in BlackRock, Inc.
- PNC divested its 22.4% equity investment in BlackRock in
May 2020 primarily through the sale
of 31.6 million shares in a registered offering and 2.65 million
shares repurchased by BlackRock. PNC also contributed .5 million
BlackRock shares to the PNC Foundation. Net proceeds from the sale
were $14.2 billion. The after-tax
gain on the sale of $4.3 billion, and
donation expense and BlackRock's historical results, are reported
in PNC's consolidated financial statements as discontinued
operations.
Income Statement Highlights - Continuing Operations
Second quarter 2020 compared with first quarter 2020
- Results from continuing operations reflected a loss of
$744 million, a decrease of
$1.5 billion due to a higher
provision for credit losses.
- Provision for credit losses increased to $2.5 billion for the second quarter compared with
$914 million for the first quarter
due to the significant estimated economic impact of the pandemic.
Provision was calculated under the Current Expected Credit Loss
(CECL) accounting standard adopted January
1, 2020.
-
- Provision was $1.7 billion for
the commercial portfolio and $720
million for the consumer portfolio.
- Total revenue of $4.1 billion
declined $260 million, or 6%.
- Net interest income of $2.5
billion increased $16 million,
or 1%, as lower rates on deposits and borrowings and higher average
loans, balances held with the Federal Reserve Bank and securities
were partially offset by lower yields on earning assets.
-
- Net interest margin decreased 32 basis points to 2.52%
reflecting the full quarter impact of the 1.5 percentage point
reduction in the federal funds rate by the Federal Reserve in
March 2020.
- Noninterest income of $1.6
billion decreased $276
million, or 15%.
-
- Fee income of $1.3 billion
declined $204 million, or 14%.
Service charges on deposits and consumer service fees decreased
$136 million reflecting lower
consumer spending and fees waived to assist customers in the
pandemic, and residential mortgage revenue decreased $52 million due to a lower benefit from
residential mortgage servicing rights valuation, net of economic
hedge.
- Other noninterest income of $271
million declined $72 million
primarily due to lower net securities gains partially offset by
higher capital markets-related revenue.
- Noninterest expense of $2.5
billion decreased $28 million,
or 1%, reflecting lower business activity related to the economic
impact of the pandemic and well-controlled expenses.
- The effective tax rate was 17.5% for the second quarter and
13.7% for the first quarter.
Balance Sheet Highlights
- Average loans increased $24.5
billion, or 10%, to $268.1
billion in the second quarter compared with the first
quarter.
-
- Average commercial loans of $189.3
billion increased $25.2
billion, or 15%, reflecting Paycheck Protection Program
(PPP) lending under the CARES Act and higher utilization of loan
commitments driven by the economic impact of the pandemic on
customer liquidity preferences.
- Average consumer loans of $78.8
billion decreased $.7 billion,
or 1%, primarily due to lower credit card, auto and student loans
partially offset by higher residential mortgage loans.
- Loans at June 30, 2020 declined
$6.4 billion, or 2%, to $258.2 billion compared with March 31, 2020.
-
- Commercial loans decreased $4.5
billion, or 2%. PNC funded $13.7
billion of PPP loans during the second quarter. New loans
were more than offset by paydowns of March
2020 draws on loan commitments.
- Consumer loans decreased $1.9
billion, or 2%, primarily in auto, credit card and home
equity loans.
- Credit quality performance:
-
- Overall delinquencies of $1.3
billion at June 30, 2020
decreased $173 million, or
12%, compared with March 31, 2020 due to lower consumer loan and
commercial loan delinquencies reflecting CARES Act and other
forbearance.
- Nonperforming assets of $2.0
billion at June 30, 2020
increased $200 million, or 11%,
compared with March 31, 2020.
- Net loan charge-offs were $236
million for the second quarter compared with $212 million for the first quarter.
- The allowance for credit losses to total loans was 2.55% at
June 30, 2020 and 1.66% at
March 31, 2020.
- Average deposits increased $45.5
billion, or 16%, to $335.2
billion in the second quarter compared with the first
quarter due to growth in commercial deposits reflecting
pandemic-related accumulation of liquidity by customers. Consumer
deposits also increased driven by government stimulus payments and
lower consumer spending.
-
- Deposits at June 30, 2020
increased $40.8 billion, or 13%, to
$346.0 billion compared with
March 31, 2020.
- Average investment securities increased $4.0 billion, or 5%, to $88.4 billion in the second quarter compared with
the first quarter.
-
- Investment securities at June 30,
2020 increased $8.0 billion,
or 9%, to $98.5 billion compared with
March 31, 2020.
- Average balances held with the Federal Reserve Bank of
$34.2 billion for the second quarter
increased $16.9 billion compared with
the first quarter, and balances at June 30,
2020 of $50.0 billion
increased $30.4 billion compared with
March 31, 2020, reflecting higher
liquidity from deposit growth and proceeds from the sale of the
equity investment in BlackRock.
- PNC maintained strong capital and liquidity positions.
-
- The PNC board of directors declared a quarterly cash dividend
on common stock payable on August 5,
2020 of $1.15 per share,
consistent with the second quarter dividend paid on May 5, 2020.
- PNC announced on March 16, 2020 a
temporary suspension of its common stock repurchase program in
conjunction with the Federal Reserve's effort to support the U.S.
economy during the pandemic, and will continue the suspension
through the third quarter of 2020, with the exception of
permissible share repurchases to offset the effects of employee
benefit plan-related issuances.
- The Basel III common equity Tier 1 capital ratio was an
estimated 11.3 percent at June 30,
2020 and 9.4 percent at March 31,
2020.
- The Liquidity Coverage Ratio at June 30,
2020 for both PNC and PNC Bank, N.A. exceeded the regulatory
minimum requirement.
Earnings
Summary
|
|
|
|
|
|
|
In millions,
except per share data
|
|
2Q20
|
|
1Q20
|
|
2Q19
|
Net income
|
|
$
|
3,655
|
|
|
$
|
915
|
|
|
$
|
1,374
|
|
Net income
attributable to diluted common shares
|
|
$
|
3,569
|
|
|
$
|
839
|
|
|
$
|
1,300
|
|
Diluted earnings per
common share
|
|
$
|
8.40
|
|
|
$
|
1.95
|
|
|
$
|
2.88
|
|
Average diluted
common shares outstanding
|
|
426
|
|
|
430
|
|
|
452
|
|
Return on average
assets
|
|
3.21
|
%
|
|
.89
|
%
|
|
1.39
|
%
|
Return on average
common equity
|
|
30.11
|
%
|
|
7.51
|
%
|
|
11.75
|
%
|
Book value per common
share
|
Quarter
end
|
$
|
115.26
|
|
|
$
|
106.70
|
|
|
$
|
101.53
|
|
Tangible book value
per common share (non-GAAP)
|
Quarter
end
|
$
|
93.54
|
|
|
$
|
84.93
|
|
|
$
|
80.76
|
|
Cash dividends
declared per common share
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
.95
|
|
|
|
|
|
|
|
|
The Consolidated Financial Highlights accompanying this news
release include additional information regarding reconciliations of
non-GAAP financial measures to reported (GAAP) amounts. This
information supplements results as reported in accordance with GAAP
and should not be viewed in isolation from, or as a substitute for,
GAAP results. 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.
CONSOLIDATED
REVENUE REVIEW
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Net interest
income
|
$
|
2,527
|
|
|
$
|
2,511
|
|
|
$
|
2,498
|
|
1
|
%
|
1
|
%
|
Noninterest
income
|
1,549
|
|
|
1,825
|
|
|
1,717
|
|
(15)
|
%
|
(10)
|
%
|
Total
revenue
|
$
|
4,076
|
|
|
$
|
4,336
|
|
|
$
|
4,215
|
|
(6)
|
%
|
(3)
|
%
|
|
|
|
|
|
|
|
|
Total revenue for the second quarter of 2020 decreased
$260 million compared with the first
quarter and $139 million compared
with the second quarter of 2019 due to lower noninterest
income.
Net interest income for the second quarter of 2020 increased
$16 million compared with the first
quarter and $29 million compared with
the second quarter of 2019. In both comparisons, lower rates on
deposits and borrowings and higher average loans, balances held
with the Federal Reserve Bank and securities were partially offset
by lower yields on earning assets. The net interest margin declined
to 2.52% for the second quarter of 2020 from 2.84% in the first
quarter and 2.91% in the second quarter of 2019 as a result of
lower yields on earning assets partially offset by lower funding
costs reflecting the full quarter impact of the 1.5 percentage
point reduction in the federal funds rate by the Federal Reserve in
March 2020 and the related decline in
other market interest rates.
Noninterest
Income
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Asset
management
|
$
|
199
|
|
|
$
|
201
|
|
|
$
|
221
|
|
(1)
|
%
|
(10)
|
%
|
Consumer
services
|
330
|
|
|
377
|
|
|
392
|
|
(12)
|
%
|
(16)
|
%
|
Corporate
services
|
512
|
|
|
526
|
|
|
484
|
|
(3)
|
%
|
6
|
%
|
Residential
mortgage
|
158
|
|
|
210
|
|
|
82
|
|
(25)
|
%
|
93
|
%
|
Service charges on
deposits
|
79
|
|
|
168
|
|
|
171
|
|
(53)
|
%
|
(54)
|
%
|
Other
|
271
|
|
|
343
|
|
|
367
|
|
(21)
|
%
|
(26)
|
%
|
|
$
|
1,549
|
|
|
$
|
1,825
|
|
|
$
|
1,717
|
|
(15)
|
%
|
(10)
|
%
|
|
|
|
|
|
|
|
|
Noninterest income for the second quarter of 2020 decreased
$276 million compared with the first
quarter. Asset management revenue declined $2 million reflecting the impact of lower average
equity markets. Consumer services decreased $47 million and service charges on deposits
decreased $89 million due to lower
transaction volumes and activity reflecting lower consumer spending
and fees waived to assist customers in the pandemic. Corporate
services declined $14 million
primarily due to lower merger and acquisition advisory fees
partially offset by higher loan syndication and asset-backed
financing fees. Residential mortgage revenue decreased $52 million as a lower benefit from residential
mortgage servicing rights valuation, net of economic hedge, was
partially offset by higher loan sales revenue. Other noninterest
income declined $72 million primarily
due to lower net securities gains partially offset by higher
capital markets-related revenue.
Noninterest income for the second quarter of 2020 decreased
$168 million compared with the second
quarter of 2019. Asset management revenue declined $22 million reflecting the impact of 2019 sales
of proprietary mutual funds and the retirement recordkeeping
business. Consumer services decreased $62
million and service charges on deposits decreased
$92 million largely due to
pandemic-related lower transaction volumes and fees waived for
customers experiencing hardships. Corporate services grew
$28 million as a result of higher
revenue from commercial mortgage banking activities and higher
asset-backed financing and loan syndication fees partially offset
by lower merger and acquisition advisory fees. Residential mortgage
revenue increased $76 million due to
higher loan sales revenue from higher origination volumes. Other
noninterest income decreased $96
million reflecting negative valuation adjustments of private
equity investments and the second quarter 2019 gain on the sale of
the retirement recordkeeping business partially offset by higher
capital markets-related revenue.
CONSOLIDATED
EXPENSE REVIEW
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Personnel
|
$
|
1,373
|
|
|
$
|
1,369
|
|
|
$
|
1,365
|
|
—
|
|
1
|
%
|
Occupancy
|
199
|
|
|
207
|
|
|
212
|
|
(4)
|
%
|
(6)
|
%
|
Equipment
|
301
|
|
|
287
|
|
|
298
|
|
5
|
%
|
1
|
%
|
Marketing
|
47
|
|
|
58
|
|
|
83
|
|
(19)
|
%
|
(43)
|
%
|
Other
|
595
|
|
|
622
|
|
|
653
|
|
(4)
|
%
|
(9)
|
%
|
|
$
|
2,515
|
|
|
$
|
2,543
|
|
|
$
|
2,611
|
|
(1)
|
%
|
(4)
|
%
|
|
|
|
|
|
|
|
|
Noninterest expense for the second quarter of 2020 decreased
$28 million compared with the first
quarter and $96 million compared with
the second quarter of 2019. Lower business activity related to the
economic impact of the pandemic contributed to the declines,
including lower marketing expense and costs associated with
business travel, as PNC continued to focus on managing expenses.
Equipment expense increased in the second quarter of 2020 compared
with the first quarter reflecting higher depreciation.
The effective tax rate from continuing operations was 17.5% for
the second quarter of 2020, 13.7% for the first quarter and 16.8%
for the second quarter of 2019. The lower effective tax rate in the
first quarter included a benefit from resolution of certain tax
matters.
CONSOLIDATED BALANCE SHEET REVIEW
Average total assets were $457.3
billion in the second quarter of 2020 compared with
$412.4 billion in the first quarter
of 2020 and $397.0 billion in the
second quarter of 2019. Total assets were $459.0 billion at June 30,
2020, $445.5 billion at
March 31, 2020 and $405.8 billion at June 30,
2019. Balance sheet growth in the second quarter of 2020 in
all comparisons reflected higher deposits maintained with the
Federal Reserve Bank and higher investment securities. Loans
declined at June 30, 2020 compared
with March 31, 2020, and increased
compared with June 30, 2019 and in
both average balance comparisons.
Loans
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
billions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Average
|
|
|
|
|
|
|
|
Commercial
|
$
|
189.3
|
|
|
$
|
164.1
|
|
|
$
|
160.1
|
|
15
|
%
|
18
|
%
|
Consumer
|
78.8
|
|
|
79.5
|
|
|
74.7
|
|
(1)
|
%
|
5
|
%
|
Average
loans
|
$
|
268.1
|
|
|
$
|
243.6
|
|
|
$
|
234.8
|
|
10
|
%
|
14
|
%
|
|
|
|
|
|
|
|
|
Quarter
end
|
|
|
|
|
|
|
|
Commercial
|
$
|
180.2
|
|
|
$
|
184.7
|
|
|
$
|
161.6
|
|
(2)
|
%
|
12
|
%
|
Consumer
|
78.0
|
|
|
79.9
|
|
|
75.6
|
|
(2)
|
%
|
3
|
%
|
Total
loans
|
$
|
258.2
|
|
|
$
|
264.6
|
|
|
$
|
237.2
|
|
(2)
|
%
|
9
|
%
|
|
|
|
|
|
|
|
|
Average loans for the second quarter of 2020 grew $24.5 billion compared with the first quarter.
Average commercial loans increased $25.2
billion, reflecting PPP lending under the CARES Act and
higher utilization of loan commitments driven by the economic
impact of the pandemic on customer liquidity preferences. PNC
funded $13.7 billion of PPP loans
during the second quarter. Average consumer loans of $78.8 billion decreased $.7 billion primarily due to lower credit card,
auto and student loans partially offset by higher residential
mortgage loans.
Total loans at June 30, 2020
declined $6.4 billion compared with
March 31, 2020. Commercial loans
decreased $4.5 billion as new loans
were more than offset by paydowns of March
2020 draws on loan commitments. Unfunded commercial loan
commitments increased to $137.2
billion at June 30, 2020
compared with $116.0 billion at
March 31, 2020. Consumer loans
decreased $1.9 billion primarily in
auto, credit card and home equity loans.
Second quarter 2020 average and period end loans increased
$33.3 billion and $21.0 billion, respectively, compared with second
quarter 2019 driven by growth in commercial loans, including PPP
lending, and higher consumer loans, primarily residential mortgage
and auto loans.
Investment
Securities
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
billions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Average
|
$
|
88.4
|
|
|
$
|
84.4
|
|
|
$
|
83.6
|
|
5
|
%
|
6
|
%
|
Quarter
end
|
$
|
98.5
|
|
|
$
|
90.5
|
|
|
$
|
88.3
|
|
9
|
%
|
12
|
%
|
|
|
|
|
|
|
|
|
Average investment securities for the second quarter of 2020
increased $4.0 billion and period end
balances increased $8.0 billion
compared with the first quarter primarily due to net purchases of
agency residential mortgage-backed securities, as well as
short-term U.S. Treasury securities near second quarter end. Second
quarter 2020 average and period-end investment securities increased
$4.8 billion and $10.2 billion, respectively, compared with the
second quarter of 2019 primarily due to higher agency residential
mortgage-backed securities. Net unrealized gains on available for
sale securities were $3.4 billion at
June 30, 2020, $2.9 billion at March 31,
2020 and $1.2 billion at
June 30, 2019.
Average balances held with the Federal Reserve Bank were
$34.2 billion in the second quarter
of 2020, $17.3 billion in the first
quarter of 2020 and $13.2 billion in
the second quarter of 2019. Balances held with the Federal Reserve
were $50.0 billion at June 30, 2020, $19.6
billion at March 31, 2020 and
$18.1 billion at June 30, 2019. Higher balances in the second
quarter of 2020 reflected liquidity from deposit growth and
proceeds from the sale of the equity investment in BlackRock.
Deposits
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
billions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Average
|
|
|
|
|
|
|
|
Noninterest-bearing
|
$
|
93.8
|
|
|
$
|
74.4
|
|
|
$
|
71.7
|
|
26
|
%
|
31
|
%
|
Interest-bearing
|
241.4
|
|
|
215.3
|
|
|
201.2
|
|
12
|
%
|
20
|
%
|
Average
deposits
|
$
|
335.2
|
|
|
$
|
289.7
|
|
|
$
|
272.9
|
|
16
|
%
|
23
|
%
|
|
|
|
|
|
|
|
|
Quarter
end
|
|
|
|
|
|
|
|
Noninterest-bearing
|
$
|
99.5
|
|
|
$
|
81.6
|
|
|
$
|
69.9
|
|
22
|
%
|
42
|
%
|
Interest-bearing
|
246.5
|
|
|
223.6
|
|
|
203.4
|
|
10
|
%
|
21
|
%
|
Total
deposits
|
$
|
346.0
|
|
|
$
|
305.2
|
|
|
$
|
273.3
|
|
13
|
%
|
27
|
%
|
|
|
|
|
|
|
|
|
Average deposits for the second quarter of 2020 increased
$45.5 billion compared with the first
quarter and deposits at June 30, 2020
increased $40.8 billion compared with
March 31, 2020 due to growth in
commercial deposits reflecting pandemic-related accumulation of
liquidity by customers. Consumer deposits also increased driven by
government stimulus payments and lower consumer spending. Second
quarter 2020 average and period-end deposits increased $62.3 billion and $72.7
billion, respectively, compared with second quarter 2019 as
a result of pandemic-related customer liquidity and overall growth
in commercial and consumer deposits and customers.
Borrowed
Funds
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
2Q20 vs
|
2Q20 vs
|
In
billions
|
2Q20
|
|
1Q20
|
|
2Q19
|
1Q20
|
2Q19
|
Average
|
$
|
53.2
|
|
|
$
|
57.2
|
|
|
$
|
62.3
|
|
(7)
|
%
|
(15)
|
%
|
Quarter
end
|
$
|
47.0
|
|
|
$
|
73.4
|
|
|
$
|
69.0
|
|
(36)
|
%
|
(32)
|
%
|
|
|
|
|
|
|
|
|
Average borrowed funds for the second quarter of 2020 decreased
$4.0 billion compared with the first
quarter due to lower federal funds purchased, bank notes and senior
debt and Federal Home Loan Bank borrowings. Borrowed funds at
June 30, 2020 decreased $26.4 billion compared with March 31, 2020 as declines in Federal Home Loan
Bank borrowings, federal funds purchased, bank notes and senior
debt, and repurchase agreements reflected use of liquidity from
deposit growth and proceeds from the sale of the equity investment
in BlackRock. Average borrowed funds for the second quarter of 2020
decreased $9.1 billion compared with
the second quarter of 2019, and period-end borrowed funds decreased
$22.0 billion.
Capital
|
|
|
|
|
|
|
|
6/30/2020
|
*
|
|
3/31/2020
|
|
6/30/2019
|
Common shareholders'
equity In billions
|
$
|
48.9
|
|
|
|
$
|
45.3
|
|
|
$
|
45.3
|
|
Basel III common
equity Tier 1 capital ratio
|
11.3
|
%
|
|
|
9.4
|
%
|
|
9.7
|
%
|
Basel III common
equity Tier 1 fully implemented capital ratio
|
10.9
|
%
|
|
|
9.2
|
%
|
|
N/A
|
|
* Ratios
estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PNC further strengthened its already strong capital position.
Common shareholders' equity at June 30,
2020 increased $3.6 billion,
or 8%, over March 31, 2020 due to
higher second quarter net income and an increase in accumulated
other comprehensive income partially offset by dividends.
The PNC board of directors declared a quarterly cash dividend on
common stock payable on August 5,
2020 of $1.15 per share,
consistent with the second quarter dividend paid on May 5, 2020.
PNC announced on March 16, 2020 a
temporary suspension of its common stock repurchase program in
conjunction with the Federal Reserve's effort to support the U.S.
economy during the pandemic, and will continue the suspension
through the third quarter of 2020, with the exception of share
repurchases to offset the effects of employee benefit plan-related
issuances as permitted by recent guidance from the Federal Reserve.
The estimated amount is $100 million
in the third quarter of 2020, but the timing and amount of executed
repurchases will be based on market conditions and other
factors.
For information regarding PNC's Basel III capital ratios, see
Capital Ratios in the Consolidated Financial Highlights. The 2019
Tailoring Rules became effective for PNC as of January 1, 2020. PNC elected a five-year
transition provision effective March 31,
2020 to delay for two years the full impact of CECL on
regulatory capital, followed by a three-year transition period. The
fully implemented ratios reflect the full impact of CECL and
exclude the benefits of this transition provision.
CREDIT QUALITY
REVIEW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Quality
|
|
|
|
|
|
Change
|
Change
|
|
At or for the quarter
ended
|
6/30/20 vs
|
6/30/20 vs
|
In
millions
|
6/30/2020
|
|
3/31/2020
|
|
6/30/2019
|
3/31/20
|
6/30/19
|
Provision for credit
losses
|
$
|
2,463
|
|
|
$
|
914
|
|
|
$
|
180
|
|
$
|
1,549
|
|
$
|
2,283
|
|
Net loan
charge-offs
|
$
|
236
|
|
|
$
|
212
|
|
|
$
|
142
|
|
11
|
%
|
66
|
%
|
Nonperforming
loans
|
$
|
1,876
|
|
|
$
|
1,644
|
|
|
$
|
1,724
|
|
14
|
%
|
9
|
%
|
Nonperforming
assets
|
$
|
1,955
|
|
|
$
|
1,755
|
|
|
$
|
1,850
|
|
11
|
%
|
6
|
%
|
Accruing loans past
due 90 days or more
|
$
|
456
|
|
|
$
|
534
|
|
|
$
|
524
|
|
(15)
|
%
|
(13)
|
%
|
Allowance for loan
and lease losses
|
$
|
5,928
|
|
|
$
|
3,944
|
|
|
$
|
2,721
|
|
$
|
1,984
|
|
$
|
3,207
|
|
Allowance for
unfunded lending related commitments
|
$
|
662
|
|
|
$
|
450
|
|
|
$
|
291
|
|
$
|
212
|
|
$
|
371
|
|
Allowance for credit
losses to total loans
|
2.55
|
%
|
|
1.66
|
%
|
|
1.27
|
%
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses was $2.5
billion in the second quarter of 2020, an increase of
$1.5 billion compared with the first
quarter. Under the CECL accounting standard adopted January 1, 2020,
the weighted average of PNC's macroeconomic scenarios used
in the estimation of expected credit losses materially worsened
compared with the first quarter due to the significantly adverse
economic impact of the pandemic. Negative borrower credit migration
attributable to the pandemic also contributed to the provision
increase. Provision for credit losses was $1.7 billion for the commercial portfolio,
$720 million for the consumer
portfolio and $31 million for
securities and other assets.
Net loan charge-offs for the second quarter of 2020 increased
$24 million compared with the first
quarter as increases in commercial loan net charge-offs of
$48 million were partially offset by
a decrease in consumer loan net charge-offs of $24 million. Compared with second quarter 2019,
net loan charge-offs increased $94
million due to higher commercial loan net charge-offs of
$75 million and higher consumer loan
net charge-offs of $19 million
primarily in the auto and credit card portfolios. Net charge-offs
were .35 percent of average loans on an annualized basis for both
the second and first quarters of 2020 and .24 percent for the
second quarter of 2019.
Nonperforming assets at June 30,
2020 increased $200 million
compared with March 31, 2020. Higher
nonperforming commercial loans of $192
million and higher nonperforming consumer loans of
$40 million were partially offset by
lower other real estate owned and foreclosed assets of $32 million due to asset sales and suspension of
pandemic-related foreclosures. The increase in nonperforming
commercial loans was primarily related to industries economically
impacted by the pandemic and the energy industry. Nonperforming
assets increased $105 million
compared with June 30, 2019 due to
higher nonperforming commercial loans of $218 million partially offset by lower
nonperforming consumer loans of $66
million and lower other real estate owned and foreclosed
assets of $47 million. Nonperforming
assets to total assets were .43% at June 30,
2020, .39% at March 31, 2020
and .46% at June 30, 2019.
Overall delinquencies at June 30,
2020 decreased $173 million,
or 12%, compared with March 31, 2020 as consumer loan delinquencies
declined $135 million and
commercial loan delinquencies declined $38
million. Loans past due 30 to 59 days decreased $98 million, loans past due 60 to 89 days
increased $3 million and loans past due 90 days or more
decreased $78 million. Declines
reflected pandemic-related loan modifications through extensions,
deferrals and forbearance. Under
the CARES Act credit reporting rules and guidance from regulatory
agencies, certain loans modified due to COVID-19 related hardships
were considered current and not reported as past due at
June 30, 2020.
The allowance for credit losses increased to $6.6 billion, or 2.55% of total loans, at
June 30, 2020 compared with
$4.4 billion, or 1.66% of total loans
at March 31, 2020.
BUSINESS SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Income (Loss)
|
|
|
|
|
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
Retail
Banking
|
$
|
(223)
|
|
|
$
|
201
|
|
|
$
|
325
|
|
Corporate &
Institutional Banking
|
(358)
|
|
|
370
|
|
|
602
|
|
Asset Management
Group
|
28
|
|
|
54
|
|
|
80
|
|
Other
|
(191)
|
|
|
134
|
|
|
178
|
|
Net income (loss)
from continuing operations
|
$
|
(744)
|
|
|
$
|
759
|
|
|
$
|
1,185
|
|
See accompanying
notes in Consolidated Financial Highlights
|
|
|
|
|
|
|
|
|
Retail
Banking
|
|
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
2Q20 vs
|
|
2Q20 vs
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
|
1Q20
|
|
2Q19
|
Net interest
income
|
$
|
1,390
|
|
|
$
|
1,456
|
|
|
$
|
1,376
|
|
|
$
|
(66)
|
|
|
$
|
14
|
|
Noninterest
income
|
$
|
585
|
|
|
$
|
788
|
|
|
$
|
657
|
|
|
$
|
(203)
|
|
|
$
|
(72)
|
|
Provision for credit
losses
|
$
|
761
|
|
|
$
|
445
|
|
|
$
|
81
|
|
|
$
|
316
|
|
|
$
|
680
|
|
Noninterest
expense
|
$
|
1,500
|
|
|
$
|
1,536
|
|
|
$
|
1,527
|
|
|
$
|
(36)
|
|
|
$
|
(27)
|
|
Earnings
(loss)
|
$
|
(223)
|
|
|
$
|
201
|
|
|
$
|
325
|
|
|
$
|
(424)
|
|
|
$
|
(548)
|
|
|
|
|
|
|
|
|
|
|
|
In
billions
|
|
|
|
|
|
|
|
|
|
Average
loans
|
$
|
83.7
|
|
|
$
|
81.4
|
|
|
$
|
76.3
|
|
|
$
|
2.3
|
|
|
$
|
7.4
|
|
Average
deposits
|
$
|
189.0
|
|
|
$
|
173.0
|
|
|
$
|
168.8
|
|
|
$
|
16.0
|
|
|
$
|
20.2
|
|
|
|
|
|
|
|
|
|
|
|
Retail Banking results were a loss for the second quarter of
2020 compared with earnings in the first quarter of 2020 and the
second quarter of 2019. Noninterest income declined in both
comparisons. Service charges on deposits were lower driven by a
decrease in overdraft and return items, and consumer service fees
decreased, including merchant services, credit card and debit card
fees. Both decreases were attributable to declines in transaction
volumes reflecting lower consumer spending and fees waived to
assist customers in the pandemic. Residential mortgage revenue
decreased compared with the first quarter due to a lower benefit
from residential mortgage servicing rights valuation, net of
economic hedge, partially offset by higher loan sales revenue.
Compared with second quarter 2019, residential mortgage revenue
increased attributable to higher loan sales revenue from higher
origination volumes. Noninterest income also declined in both
comparisons due to negative derivative fair value adjustments
related to Visa Class B common shares in the second quarter of
2020. Provision for credit losses increased in the second quarter
of 2020 due to the significant estimated economic impact of the
pandemic. Noninterest expense decreased in both comparisons driven
by lower marketing, ATM and business travel expense, partially
offset by higher branch-related expense due in part to the impact
of the pandemic.
- Average loans increased 3% compared with the first quarter of
2020 and 10% compared with the second quarter of 2019 due to growth
in commercial lending, driven by PPP loans, and higher residential
mortgage loans. Compared with second quarter 2019, growth in auto,
unsecured installment and credit card loans contributed to the
increase.
- Average deposits increased 9% compared with the first quarter
and 12% compared with second quarter 2019 due to increases in
demand deposits and savings as a result of government stimulus
payments and lower consumer spending. Compared to the second
quarter of 2019, the increase was partially offset by lower money
market deposits, reflecting a shift to relationship-based savings
products, and lower certificates of deposit.
- Net loan charge-offs were $142
million for the second quarter of 2020 compared with
$166 million in the first quarter of
2020 and $120 million in the second
quarter of 2019. The decline from the first quarter reflected
COVID-19 related hardship assistance and suspension of
pandemic-related foreclosures.
- Residential mortgage loan origination volume was $4.2 billion for the second quarter of 2020
compared with $3.2 billion for the
first quarter of 2020 and $2.9
billion for the second quarter of 2019. Approximately 34% of
second quarter 2020 volume was for home purchase transactions
compared with 36% and 54% for the first quarter of 2020 and second
quarter of 2019, respectively.
- The third party residential mortgage servicing portfolio was
$122 billion at June 30, 2020 compared with $118 billion at March 31,
2020 and $124 billion at
June 30, 2019. Residential mortgage
loan servicing acquisitions were $11
billion for second quarter 2020 compared with $2 billion for the first quarter of 2020 and
$5 billion for the second quarter of
2019.
- Approximately 73% of consumer customers used non-teller
channels for the majority of their transactions during the second
quarter of 2020 compared with 71% in the first quarter of 2020 and
69% in the second quarter of 2019.
- Deposit transactions via ATM and mobile channels were 65% of
total deposit transactions in the second quarter of 2020 compared
with 59% in the first quarter of 2020 and 56% in the second quarter
of 2019.
Corporate &
Institutional Banking
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
2Q20 vs
|
|
2Q20 vs
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
|
1Q20
|
|
2Q19
|
Net interest
income
|
$
|
1,064
|
|
|
$
|
966
|
|
|
$
|
917
|
|
|
$
|
98
|
|
|
$
|
147
|
|
Noninterest
income
|
$
|
726
|
|
|
$
|
694
|
|
|
$
|
661
|
|
|
$
|
32
|
|
|
$
|
65
|
|
Provision for credit
losses
|
$
|
1,585
|
|
|
$
|
458
|
|
|
$
|
100
|
|
|
$
|
1,127
|
|
|
$
|
1,485
|
|
Noninterest
expense
|
$
|
673
|
|
|
$
|
722
|
|
|
$
|
698
|
|
|
$
|
(49)
|
|
|
$
|
(25)
|
|
Earnings
(loss)
|
$
|
(358)
|
|
|
$
|
370
|
|
|
$
|
602
|
|
|
$
|
(728)
|
|
|
$
|
(960)
|
|
|
|
|
|
|
|
|
|
|
|
In
billions
|
|
|
|
|
|
|
|
|
|
Average
loans
|
$
|
173.1
|
|
|
$
|
151.0
|
|
|
$
|
147.2
|
|
|
$
|
22.1
|
|
|
$
|
25.9
|
|
Average
deposits
|
$
|
127.0
|
|
|
$
|
98.1
|
|
|
$
|
90.5
|
|
|
$
|
28.9
|
|
|
$
|
36.5
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Institutional Banking results were a loss for
the second quarter of 2020 compared with earnings in the first
quarter of 2020 and second quarter of 2019. Noninterest income
increased in both comparisons primarily due to higher capital
markets-related revenue and higher revenue from commercial mortgage
banking activities. Provision for credit losses increased in the
second quarter of 2020 due to the significant estimated economic
impact of the pandemic which resulted in a worsening macroeconomic
outlook and negative credit migration. Noninterest expense
decreased in both comparisons largely due to lower variable costs
associated with decreased business activity.
- Average loans increased 15% compared with the first quarter and
18% over the second quarter of 2019 due to broad growth across
PNC's corporate banking, real estate, commercial banking and
business credit businesses, including higher average utilization of
loan commitments primarily driven by the economic impact of the
pandemic and PPP loan originations.
- Average deposits increased 29% from the first quarter and 40%
from the second quarter of 2019 reflecting liquidity maintained by
customers due to the economic impact of the pandemic.
- Net charge-offs were $99 million
in the second quarter of 2020 compared with $50 million in the first quarter and $23 million in the second quarter of 2019.
Asset Management
Group
|
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
2Q20 vs
|
|
2Q20 vs
|
In
millions
|
2Q20
|
|
1Q20
|
|
2Q19
|
|
1Q20
|
|
2Q19
|
Net interest
income
|
$
|
89
|
|
|
$
|
88
|
|
|
$
|
68
|
|
|
$
|
1
|
|
|
$
|
21
|
|
Noninterest
income
|
$
|
204
|
|
|
$
|
204
|
|
|
$
|
286
|
|
|
—
|
|
|
$
|
(82)
|
|
Provision for credit
losses
|
$
|
39
|
|
|
$
|
3
|
|
|
—
|
|
|
$
|
36
|
|
|
$
|
39
|
|
Noninterest
expense
|
$
|
217
|
|
|
$
|
219
|
|
|
$
|
249
|
|
|
$
|
(2)
|
|
|
$
|
(32)
|
|
Earnings
|
$
|
28
|
|
|
$
|
54
|
|
|
$
|
80
|
|
|
$
|
(26)
|
|
|
$
|
(52)
|
|
|
|
|
|
|
|
|
|
|
|
In
billions
|
|
|
|
|
|
|
|
|
|
Client assets under
administration at quarter end
|
$
|
289
|
|
|
$
|
264
|
|
|
$
|
294
|
|
|
$
|
25
|
|
|
$
|
(5)
|
|
Average
loans
|
$
|
7.5
|
|
|
$
|
7.3
|
|
|
$
|
6.7
|
|
|
$
|
.2
|
|
|
$
|
.8
|
|
Average
deposits
|
$
|
18.9
|
|
|
$
|
18.1
|
|
|
$
|
12.7
|
|
|
$
|
.8
|
|
|
$
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management Group earnings for the second quarter of 2020
decreased in both comparisons. Noninterest income was consistent
with the first quarter of 2020 and decreased compared with the
second quarter of 2019 as a result of the gain on the sale of the
retirement recordkeeping business in second quarter 2019. Provision
for credit losses increased in the second quarter of 2020 due to
the significant estimated economic impact of the pandemic.
Noninterest expense declined compared with the first quarter due to
lower variable costs associated with reduced business activity
related to the economic impact of the pandemic and decreased
compared with the second quarter of 2019 as a result of the impact
of the 2019 divestitures.
Client assets under administration at June 30, 2020 included discretionary client
assets under management of $151
billion and nondiscretionary client assets under
administration of $138 billion.
Discretionary client assets under management increased $15 billion compared with March 31, 2020 primarily due to higher equity
markets at June 30, 2020 compared
with March 31, 2020. Discretionary
client assets under management decreased $11
billion compared with June 30,
2019 driven by the impact of the fourth quarter 2019 sale of
proprietary mutual funds.
Other
The "Other" category, for the purposes of this release, includes
residual activities that do not meet the criteria for disclosure as
a separate reportable business, such as asset and liability
management activities including net securities gains or losses,
other-than-temporary impairment of investment securities, certain
trading activities, certain runoff consumer loan portfolios,
private equity investments, intercompany eliminations, certain
corporate overhead, tax adjustments that are not allocated to
business segments, exited businesses, 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 Executive Vice President
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)
402-9133 and (303) 223-2694 (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 2020 earnings
release, 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
21962756 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.
[TABULAR MATERIAL FOLLOWS]
The PNC Financial
Services Group, Inc.
|
Consolidated
Financial Highlights (Unaudited)
|
FINANCIAL
RESULTS
|
|
Three months
ended
|
|
|
|
Six months
ended
|
Dollars in
millions, except per share data
|
|
June 30
|
|
March 31
|
|
June 30
|
|
|
|
June 30
|
|
June 30
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
2,527
|
|
|
$
|
2,511
|
|
|
$
|
2,498
|
|
|
|
|
$
|
5,038
|
|
|
$
|
4,973
|
|
Noninterest
income
|
|
1,549
|
|
|
1,825
|
|
|
1,717
|
|
|
|
|
3,374
|
|
|
3,303
|
|
Total
revenue
|
|
4,076
|
|
|
4,336
|
|
|
4,215
|
|
|
|
|
8,412
|
|
|
8,276
|
|
Provision for credit
losses
|
|
2,463
|
|
|
914
|
|
|
180
|
|
|
|
|
3,377
|
|
|
369
|
|
Noninterest
expense
|
|
2,515
|
|
|
2,543
|
|
|
2,611
|
|
|
|
|
5,058
|
|
|
5,189
|
|
Income (loss) from
continuing operations before income taxes and noncontrolling
interests
|
|
$
|
(902)
|
|
|
$
|
879
|
|
|
$
|
1,424
|
|
|
|
|
$
|
(23)
|
|
|
$
|
2,718
|
|
Income taxes
(benefit) from continuing operations
|
|
(158)
|
|
|
120
|
|
|
239
|
|
|
|
|
(38)
|
|
|
451
|
|
Net income (loss) from continuing operations
|
|
$
|
(744)
|
|
|
$
|
759
|
|
|
$
|
1,185
|
|
|
|
|
$
|
15
|
|
|
$
|
2,267
|
|
Income from
discontinued operations before taxes
|
|
$
|
5,596
|
|
|
$
|
181
|
|
|
$
|
224
|
|
|
|
|
$
|
5,777
|
|
|
$
|
449
|
|
Income taxes from
discontinued operations
|
|
1,197
|
|
|
25
|
|
|
35
|
|
|
|
|
1,222
|
|
|
71
|
|
Net income from discontinued operations
|
|
$
|
4,399
|
|
|
$
|
156
|
|
|
$
|
189
|
|
|
|
|
$
|
4,555
|
|
|
$
|
378
|
|
Net income
|
|
$
|
3,655
|
|
|
$
|
915
|
|
|
$
|
1,374
|
|
|
|
|
$
|
4,570
|
|
|
$
|
2,645
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
|
7
|
|
|
7
|
|
|
12
|
|
|
|
|
14
|
|
|
22
|
|
Preferred stock
dividends (a)
|
|
55
|
|
|
63
|
|
|
55
|
|
|
|
|
118
|
|
|
118
|
|
Preferred stock
discount accretion and redemptions
|
|
1
|
|
|
1
|
|
|
1
|
|
|
|
|
2
|
|
|
2
|
|
Net income
attributable to common shareholders
|
|
$
|
3,592
|
|
|
$
|
844
|
|
|
$
|
1,306
|
|
|
|
|
$
|
4,436
|
|
|
$
|
2,503
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
from continuing operations
|
|
$
|
(1.90)
|
|
|
$
|
1.59
|
|
|
$
|
2.47
|
|
|
|
|
$
|
(.29)
|
|
|
$
|
4.68
|
|
Basic earnings from
discontinued operations
|
|
10.28
|
|
|
.37
|
|
|
.42
|
|
|
|
|
10.60
|
|
|
.83
|
|
Total basic
earnings
|
|
$
|
8.40
|
|
|
$
|
1.96
|
|
|
$
|
2.89
|
|
|
|
|
$
|
10.33
|
|
|
$
|
5.51
|
|
Diluted earnings
(loss) from continuing operations
|
|
$
|
(1.90)
|
|
|
$
|
1.59
|
|
|
$
|
2.47
|
|
|
|
|
$
|
(.29)
|
|
|
$
|
4.67
|
|
Diluted earnings from
discontinued operations
|
|
10.28
|
|
|
.36
|
|
|
.41
|
|
|
|
|
10.59
|
|
|
.82
|
|
Total diluted
earnings
|
|
$
|
8.40
|
|
|
$
|
1.95
|
|
|
$
|
2.88
|
|
|
|
|
$
|
10.32
|
|
|
$
|
5.49
|
|
Cash dividends
declared per common share
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
.95
|
|
|
|
|
$
|
2.30
|
|
|
$
|
1.90
|
|
Effective tax rate
from continuing operations (b)
|
|
17.5
|
%
|
|
13.7
|
%
|
|
16.8
|
%
|
|
|
|
165.2
|
%
|
|
16.6
|
%
|
|
|
(a)
|
Dividends are payable
quarterly other than Series O, Series R and Series S preferred
stock, which are payable semiannually, with the Series O payable in
different quarters than the Series R and Series S preferred
stock.
|
(b)
|
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.
|
Consolidated
Financial Highlights (Unaudited)
|
|
|
Three months
ended
|
|
|
|
Six months
ended
|
|
|
June 30
|
|
March 31
|
|
June 30
|
|
|
|
June 30
|
|
June 30
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(a)
|
|
2.52
|
%
|
|
2.84
|
%
|
|
2.91
|
%
|
|
|
|
2.67
|
%
|
|
2.94
|
%
|
Noninterest income to
total revenue
|
|
38
|
%
|
|
42
|
%
|
|
41
|
%
|
|
|
|
40
|
%
|
|
40
|
%
|
Efficiency
(b)
|
|
62
|
%
|
|
59
|
%
|
|
62
|
%
|
|
|
|
60
|
%
|
|
63
|
%
|
Return on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
|
30.11
|
%
|
|
7.51
|
%
|
|
11.75
|
%
|
|
|
|
19.15
|
%
|
|
11.45
|
%
|
Average
assets
|
|
3.21
|
%
|
|
.89
|
%
|
|
1.39
|
%
|
|
|
|
2.11
|
%
|
|
1.36
|
%
|
BUSINESS SEGMENT
NET INCOME (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking
|
|
$
|
(223)
|
|
|
$
|
201
|
|
|
$
|
325
|
|
|
|
|
$
|
(22)
|
|
|
$
|
589
|
|
Corporate &
Institutional Banking
|
|
(358)
|
|
|
370
|
|
|
602
|
|
|
|
|
12
|
|
|
1,154
|
|
Asset Management
Group
|
|
28
|
|
|
54
|
|
|
80
|
|
|
|
|
82
|
|
|
125
|
|
Other (d)
|
|
(191)
|
|
|
134
|
|
|
178
|
|
|
|
|
(57)
|
|
|
399
|
|
Net income (loss)
from continuing operations
|
|
$
|
(744)
|
|
|
$
|
759
|
|
|
$
|
1,185
|
|
|
|
|
$
|
15
|
|
|
$
|
2,267
|
|
|
|
(a)
|
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 generally accepted accounting principles (GAAP)
in the Consolidated Income Statement. The taxable-equivalent
adjustments to net interest income for the three months ended
June 30, 2020, March 31, 2020 and June 30, 2019 were
$19 million, $22 million and $27 million, respectively. The taxable
equivalent adjustments to net interest income for the six months
ended June 30, 2020 and June 30, 2019 were $41 million
and $54 million, respectively.
|
(b)
|
Calculated as
noninterest expense divided by total revenue.
|
(c)
|
Our business
information is presented based on our internal management reporting
practices. Net interest income in business segment results reflect
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.
|
(d)
|
Includes earnings and
gains or losses related to residual activities that do not meet the
criteria for disclosure as a separate reportable business. We
provide additional information on these activities in our Form 10-K
and Form 10-Q filings with the SEC.
|
The PNC Financial
Services Group, Inc.
|
Consolidated
Financial Highlights (Unaudited)
|
|
June 30
|
|
March 31
|
|
June 30
|
|
2020
|
|
2020
|
|
2019
|
BALANCE SHEET
DATA
|
|
|
|
|
|
Dollars in
millions, except per share data
|
|
|
|
|
|
Assets
|
$
|
458,978
|
|
|
$
|
445,493
|
|
|
$
|
405,761
|
|
Loans (a)
|
$
|
258,236
|
|
|
$
|
264,643
|
|
|
$
|
237,215
|
|
Allowance for loan
and lease losses (b)
|
$
|
5,928
|
|
|
$
|
3,944
|
|
|
$
|
2,721
|
|
Interest-earning
deposits with banks
|
$
|
50,233
|
|
|
$
|
19,986
|
|
|
$
|
18,362
|
|
Investment
securities
|
$
|
98,493
|
|
|
$
|
90,546
|
|
|
$
|
88,303
|
|
Loans held for sale
(a)
|
$
|
1,443
|
|
|
$
|
1,693
|
|
|
$
|
1,144
|
|
Equity
investments
|
$
|
4,943
|
|
|
$
|
4,694
|
|
|
$
|
4,817
|
|
Asset held for sale
(c)
|
|
|
$
|
8,511
|
|
|
$
|
8,184
|
|
Mortgage servicing
rights
|
$
|
1,067
|
|
|
$
|
1,082
|
|
|
$
|
1,627
|
|
Goodwill
|
$
|
9,233
|
|
|
$
|
9,233
|
|
|
$
|
9,221
|
|
Other assets
(a)
|
$
|
34,920
|
|
|
$
|
41,556
|
|
|
$
|
34,193
|
|
Noninterest-bearing
deposits
|
$
|
99,458
|
|
|
$
|
81,614
|
|
|
$
|
69,867
|
|
Interest-bearing
deposits
|
$
|
246,539
|
|
|
$
|
223,590
|
|
|
$
|
203,393
|
|
Total
deposits
|
$
|
345,997
|
|
|
$
|
305,204
|
|
|
$
|
273,260
|
|
Borrowed funds
(a)
|
$
|
47,026
|
|
|
$
|
73,399
|
|
|
$
|
69,025
|
|
Allowance for
unfunded lending related commitments (b)
|
$
|
662
|
|
|
$
|
450
|
|
|
$
|
291
|
|
Total shareholders'
equity
|
$
|
52,923
|
|
|
$
|
49,263
|
|
|
$
|
49,340
|
|
Common shareholders'
equity
|
$
|
48,928
|
|
|
$
|
45,269
|
|
|
$
|
45,349
|
|
Accumulated other
comprehensive income (loss)
|
$
|
3,069
|
|
|
$
|
2,518
|
|
|
$
|
631
|
|
Book value per common
share
|
$
|
115.26
|
|
|
$
|
106.70
|
|
|
$
|
101.53
|
|
Tangible book value
per common share (Non-GAAP) (d)
|
$
|
93.54
|
|
|
$
|
84.93
|
|
|
$
|
80.76
|
|
Period end common
shares outstanding (millions)
|
425
|
|
|
424
|
|
|
447
|
|
Loans to
deposits
|
75
|
%
|
|
87
|
%
|
|
87
|
%
|
Common shareholders'
equity to total assets
|
10.7
|
%
|
|
10.2
|
%
|
|
11.2
|
%
|
CLIENT ASSETS
(billions)
|
|
|
|
|
|
Discretionary client
assets under management
|
$
|
151
|
|
|
$
|
136
|
|
|
$
|
162
|
|
Nondiscretionary
client assets under administration
|
138
|
|
|
128
|
|
|
132
|
|
Total client assets
under administration
|
289
|
|
|
264
|
|
|
294
|
|
Brokerage account
client assets
|
53
|
|
|
49
|
|
|
52
|
|
Total client
assets
|
$
|
342
|
|
|
$
|
313
|
|
|
$
|
346
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
Basel III (e)
(f)
|
|
|
|
|
|
Common equity Tier
1
|
11.3
|
%
|
|
9.4
|
%
|
|
9.7
|
%
|
Common equity Tier 1
fully implemented (g)
|
10.9
|
%
|
|
9.2
|
%
|
|
N/A
|
|
Tier 1
risk-based
|
12.4
|
%
|
|
10.5
|
%
|
|
10.9
|
%
|
Total capital
risk-based (h)
|
14.9
|
%
|
|
12.6
|
%
|
|
12.8
|
%
|
Leverage
|
9.4
|
%
|
|
9.5
|
%
|
|
9.6
|
%
|
Supplementary
leverage
|
9.4
|
%
|
|
7.9
|
%
|
|
8.0
|
%
|
ASSET
QUALITY
|
|
|
|
|
|
Nonperforming loans
to total loans
|
.73
|
%
|
|
.62
|
%
|
|
.73
|
%
|
Nonperforming assets
to total loans, OREO and foreclosed assets
|
.76
|
%
|
|
.66
|
%
|
|
.78
|
%
|
Nonperforming assets
to total assets
|
.43
|
%
|
|
.39
|
%
|
|
.46
|
%
|
Net charge-offs to
average loans (for the three months ended) (annualized)
|
.35
|
%
|
|
.35
|
%
|
|
.24
|
%
|
Allowance for loan
and lease losses to total loans (i)
|
2.30
|
%
|
|
1.49
|
%
|
|
1.15
|
%
|
Allowance for credit
losses to total loans (i) (j)
|
2.55
|
%
|
|
1.66
|
%
|
|
1.27
|
%
|
Allowance for loan
and lease losses to nonperforming loans (i)
|
316
|
%
|
|
240
|
%
|
|
158
|
%
|
Accruing loans past
due 90 days or more (in millions)
|
$
|
456
|
|
|
$
|
534
|
|
|
$
|
524
|
|
|
|
(a)
|
Amounts include
assets and liabilities for which we have elected the fair value
option. Our first quarter 2020 Form 10-Q included, and our second
quarter 2020 Form 10-Q will include, additional information
regarding these Consolidated Balance Sheet line items.
|
(b)
|
Amounts at June 30,
2020 and March 31, 2020 reflect the impact of adopting Accounting
Standards Update 2016-13 - Financial Instruments - Credit
Losses, which is commonly referred to as the Current Expected
Credit Losses (CECL) standard and our transition from an incurred
loss methodology for these reserves to an expected credit loss
methodology. Our 2019 Form 10-K and our first quarter 2020 Form
10-Q included, and our second quarter 2020 Form 10-Q will include
additional information related to our adoption of this
standard.
|
(c)
|
Represents our held
for sale investment in BlackRock. In the second quarter of 2020,
PNC divested its entire holding in BlackRock. Prior period
BlackRock investment balances have been reclassified to the Asset
held for sale line in accordance with Accounting Standard
Codification 205-20, Presentation of Financial Statements -
Discontinued Operations. Our second quarter 2020 Form 10-Q will
include additional information.
|
(d)
|
See the Tangible Book
Value per Common Share table on page 18 for additional
information.
|
(e)
|
All ratios are
calculated using the regulatory capital methodology applicable to
PNC during each period presented and calculated based on the
standardized approach. See Capital Ratios on page 17 for
additional information. The ratios as of June 30, 2020
are estimated.
|
(f)
|
The June 30,
2020 and March 31, 2020 ratios are calculated to reflect PNC's
election to adopt the CECL optional five-year transition
provision.
|
(g)
|
The June 30,
2020 and March 31, 2020 fully implemented ratios are calculated to
reflect the full impact of CECL and excludes the benefits of the
five-year transition provision.
|
(h)
|
The 2020 and 2019
Basel III Total risk-based capital ratios include nonqualifying
trust preferred capital securities of $40 million and $60 million,
respectively, that are subject to a phase-out period that runs
through 2021.
|
(i)
|
Ratios at June 30, 2020 and
March 31, 2020 reflect an increase in reserves due to the impact of
CECL adoption, the significant economic impact of COVID-19
and loan growth. Our 2019 Form 10-K and our first quarter 2020 Form
10-Q included and our second quarter 2020 Form 10-Q will include
additional information related to our adoption of this
standard.
|
(j)
|
Excludes allowances for
investment securities and other financial assets.
|
The PNC Financial Services Group,
Inc.
Consolidated Financial Highlights (Unaudited)
CAPITAL RATIOS
As of January 1, 2020, the 2019
Tailoring Rules became effective for PNC. The most significant
changes involve the election to exclude specific accumulated other
comprehensive income (AOCI) items from common equity Tier 1 capital
and higher thresholds used to calculate common equity Tier 1
capital deductions. Effective January 1,
2020, PNC must deduct from common equity Tier 1 capital
investments in unconsolidated financial institutions (for PNC,
primarily BlackRock at March 31, 2020
prior to the sale), mortgage servicing rights and deferred tax
assets (in each case net of associated deferred tax liabilities) to
the extent such items individually exceed 25% of the institution's
adjusted common equity Tier 1 capital.
Under the Basel III rules applicable to PNC during 2019,
significant common stock investments in unconsolidated financial
institutions (for PNC, primarily BlackRock), mortgage servicing
rights and deferred tax assets were deducted from common equity
Tier 1 capital (net of associated deferred tax liabilities) to the
extent they individually exceeded 10%, or in the aggregate exceeded
15%, of the institution's adjusted common equity Tier 1 capital.
Also, PNC's Basel III regulatory capital during 2019 included AOCI
related to securities then held, and those transferred from,
available for sale, as well as pension and other postretirement
plans.
PNC's regulatory risk-based capital ratios in 2020 and 2019 are
both calculated using the standardized approach for determining
risk-weighted assets. Under the standardized approach for
determining credit risk-weighted assets, exposures are generally
assigned a pre-defined risk weight. Exposures to high volatility
commercial real estate, past due exposures and equity exposures are
generally subject to higher risk weights than other types of
exposures.
Effective for March 31, 2020,
regulators issued an interim final rule that allows banks that have
adopted the CECL standard to
delay for two years CECL's full impact on regulatory capital,
relative to the incurred loss methodology's impact on regulatory
capital, followed by a three year transition period. PNC
elected to adopt this optional five-year transition provision
effective for March 31, 2020.
See the table below for the March 31,
2020 ratio and estimated June 30,
2020 ratio. For the full impact of PNC's adoption of CECL,
which excludes the benefits of the five-year transition
provision, see the June 30, 2020
and March 31, 2020 (Fully
Implemented) estimates presented in the table below.
We also provide additional information below regarding PNC's
June 30, 2019 Basel III Common equity
Tier 1 capital ratios.
Our Basel III capital ratios may be impacted by changes to the
regulatory capital rules and additional regulatory guidance or
analysis.
Basel lll
Common Equity Tier 1 Capital Ratios (Non-GAAP)
(a)
|
|
|
Basel III
|
|
|
|
|
Dollars in
millions
|
June 30
2020
(estimated)
(b)
|
March 31
2020 (b)
|
|
June 30
2019
|
|
June 30, 2020
(Fully
Implemented)
(estimated)
(c)
|
March 31, 2020
(Fully
Implemented)
(estimated)
(c)
|
|
Common stock, related
surplus and retained earnings, net of treasury stock
|
$
|
47,254
|
|
$
|
43,596
|
|
|
$
|
44,718
|
|
|
$
|
45,859
|
|
$
|
42,751
|
|
|
Less regulatory
capital adjustments:
|
|
|
|
|
|
|
|
|
Goodwill and
disallowed intangibles, net of deferred tax liabilities
|
(9,222)
|
|
(9,237)
|
|
|
(9,252)
|
|
|
(9,222)
|
|
(9,237)
|
|
|
Basel III total
threshold deductions (d)
|
|
|
|
(2,909)
|
|
|
|
|
|
Accumulated other
comprehensive income (loss) (e)
|
|
|
|
471
|
|
|
|
|
|
All other
adjustments
|
(75)
|
|
(220)
|
|
|
(185)
|
|
|
(77)
|
|
(224)
|
|
|
Basel III Common
equity Tier 1 capital
|
$
|
37,957
|
|
$
|
34,139
|
|
|
$
|
32,843
|
|
|
$
|
36,560
|
|
$
|
33,290
|
|
|
Basel III
standardized approach risk-weighted assets (f)
|
$
|
337,314
|
|
$
|
363,631
|
|
|
$
|
337,612
|
|
|
$
|
335,930
|
|
$
|
363,651
|
|
|
Basel III advanced
approaches risk-weighted assets (g)
|
|
|
|
$
|
309,646
|
|
|
|
|
|
Basel III Common
equity Tier 1 capital ratio
|
11.3
|
%
|
9.4
|
%
|
|
9.7
|
%
|
|
10.9
|
%
|
9.2
|
%
|
|
|
|
(a)
|
All ratios are
calculated using the regulatory capital methodology applicable to
PNC during each period presented.
|
(b)
|
The June 30,
2020 and March 31, 2020 ratio is calculated to reflect PNC's
election to adopt the CECL optional five-year transition
provision.
|
(c)
|
The June 30, 2020 and
March 31, 2020 ratio is calculated to reflect the full impact
of CECL and excludes the benefits of the five-year transition
provision.
|
(d)
|
Based on the
Tailoring Rules, effective January 1, 2020 for PNC, the limit for
threshold deductions increased, resulting in no deduction as of
June 30, 2020 and March 31, 2020.
|
(e)
|
Based on the
Tailoring Rules effective January 1, 2020, PNC elected to opt-out
of the inclusion of accumulated other comprehensive income in
regulatory capital.
|
(f)
|
Basel III
standardized approach risk-weighted assets are based on the Basel
III standardized approach rules and include credit and market
risk-weighted assets.
|
(g)
|
Basel III advanced
approaches risk-weighted assets in 2019 were based on the Basel III
advanced approaches rules, and include credit, market and
operational risk-weighted assets. Based on the Tailoring Rules
effective January 1, 2020, PNC is no longer required to report
advanced approaches risk-weighted assets.
|
Tangible book value per common share is a non-GAAP measure and
is calculated based on tangible common shareholders' equity divided
by period-end common shares outstanding. We believe this non-GAAP
measure serves as a useful tool to help evaluate the strength and
discipline of a company's capital management strategies and as an
additional, conservative measure of total company value.
Tangible Book
Value per Common Share (Non-GAAP)
|
|
|
June 30
|
|
March 31
|
|
June 30
|
Dollars in
millions, except per share data
|
2020
|
|
2020
|
|
2019
|
Book value per common
share
|
$
|
115.26
|
|
|
$
|
106.70
|
|
|
$
|
101.53
|
|
Tangible book value
per common share
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
48,928
|
|
|
$
|
45,269
|
|
|
$
|
45,349
|
|
Goodwill and other
intangible assets
|
(9,410)
|
|
|
(9,425)
|
|
|
(9,442)
|
|
Deferred tax
liabilities on Goodwill and other intangible assets
|
188
|
|
|
189
|
|
|
191
|
|
Tangible common
shareholders' equity
|
$
|
39,706
|
|
|
$
|
36,033
|
|
|
$
|
36,098
|
|
Period-end common
shares outstanding (millions)
|
425
|
|
|
424
|
|
|
447
|
|
Tangible book value
per common share (Non-GAAP)
|
$
|
93.54
|
|
|
$
|
84.93
|
|
|
$
|
80.76
|
|
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, tax rates, 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 necessarily subject to numerous
assumptions, risks and uncertainties, which change over time.
Future events or circumstances may change our outlook and may also
affect the nature of the assumptions, risks and uncertainties to
which our forward-looking statements are subject. 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. As a result, we caution against
placing undue reliance on any forward-looking statements.
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 customer behavior due to changing business and
economic conditions or legislative or regulatory initiatives.
- Changes in customers', suppliers' and other counterparties'
performance and creditworthiness.
- Impacts of tariffs and other trade policies of the U.S. and its
global trading partners.
- The length and extent of economic contraction as a result of
the COVID-19 pandemic.
- Commodity price volatility.
- 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 and
do not take into account potential legal and regulatory
contingencies. These statements are based on our views that:
-
- PNC's baseline economic forecast is for an economic recovery in
the second half of 2020 and into 2021, following a very severe but
short recession in the first half of 2020. Consumers are increasing
their spending and workers are returning to their job sites as
states are gradually lifting restrictions on movement because of
the COVID-19 pandemic; fiscal stimulus from the federal government
is also supporting economic growth in mid-2020. After a significant
contraction in real GDP, steep job losses, and a large increase in
the unemployment rate in the second quarter, economic growth has
resumed and the labor market is improving.
- In the baseline forecast, real GDP increases in the third
quarter as consumers start to spend again. Fiscal stimulus and
extremely low interest rates support the recovery. Real GDP
surpasses its pre-recession peak in 2022, and growth is well above
its long-term trend through 2023.
- The baseline forecast assumes that the Federal Open Market
Committee keeps the federal funds rate in its current range of
0.00% to 0.25% into 2023.
- Given the many unknowns and potential downside risks, including
additional COVID-19 outbreaks, our forward-looking statements are
subject to the risk that conditions will be substantially different
than we are currently expecting. If efforts to contain COVID-19 are
unsuccessful and restrictions on movement are reimposed or
expanded, the economy could fall back into recession. The potential
expiration of fiscal stimulus is also a major downside risk. The
longer the labor market recovery takes, the more it will damage
consumer fundamentals and sentiment. This could make the recovery
weaker. Similarly, weak near-term growth could damage business
fundamentals. And an extended global recession due to COVID-19
would weaken the U.S. recovery. As a result, the outbreak and its
consequences, including responsive measures to manage it, have had
and are likely to continue to have an adverse effect, possibly
materially, on our business and financial performance by adversely
affecting, possibly materially, the demand and profitability of our
products and services, the valuation of assets and our ability to
meet the needs of our customers.
- PNC's ability to take certain capital actions, including
returning capital to shareholders beginning in the fourth quarter
of 2020, is subject to PNC meeting or exceeding a stress capital
buffer established by the Federal Reserve Board in connection with
the Federal Reserve Board's Comprehensive Capital Analysis and
Review (CCAR) process. The Federal Reserve also has imposed
limitations on capital distributions in the third quarter of 2020
by CCAR-participating bank holding companies and may extend these
limitations, potentially in modified form.
Cautionary Statement Regarding Forward-Looking
Information (Continued)
- 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 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 review of related models.
- 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 to laws and regulations, including changes affecting
oversight of the financial services industry, consumer protection,
bank capital and liquidity standards, 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.
- We grow our business in part through acquisitions and new
strategic initiatives. Risks and uncertainties include those
presented by the nature of the business acquired and strategic
initiative, 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 2019 Form 10-K and first quarter 2020 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. In particular, our forward-looking
statements are subject to risks and uncertainties related to the
COVID-19 pandemic and the resulting governmental and societal
responses. 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:
Marcey Zwiebel
(412) 762-4550
media.relations@pnc.com
INVESTORS:
Bryan Gill
(412) 768-4143
investor.relations@pnc.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/pnc-reports-second-quarter-2020-net-income-of-3-7-billion-8-40-diluted-eps-reflecting-gain-on-blackrock-sale-301093817.html
SOURCE PNC Financial Services Group