PITTSBURGH, Oct. 14, 2020 /PRNewswire/ -- The PNC
Financial Services Group, Inc. (NYSE: PNC) today reported:
|
For the
quarter
|
In millions,
except per share data
|
3Q20
|
2Q20
|
3Q19
|
Net income (loss)
from continuing operations
|
$1,532
|
|
($744)
|
|
$1,181
|
|
Net income from
discontinued operations
|
—
|
|
$4,399
|
|
$211
|
|
Net
income
|
$1,532
|
|
$3,655
|
|
$1,392
|
|
Diluted earnings
(loss) per common share from continuing operations
|
$3.39
|
|
($1.90)
|
|
$2.47
|
|
Diluted earnings per
common share from discontinued operations
|
—
|
|
$10.28
|
|
$.47
|
|
Diluted earnings
per common share
|
$3.39
|
|
$8.40
|
|
$2.94
|
|
|
|
"PNC delivered solid
third quarter results against the backdrop of a continuing
uncertain economy. Noninterest income increased, expenses were well
managed and we continued to generate positive operating leverage.
Deposits grew while loans declined as a result of lower commercial
loan utilization rates, despite growth in loan commitments. Our
provision for credit losses was significantly less than last
quarter, reflecting stable reserve levels. We continue to execute
on our strategic priorities, including ongoing investments in our
national expansion and digital offerings. We have substantial
capital and liquidity flexibility, and remain well positioned to
take advantage of potential investment opportunities to enhance
shareholder value."
Bill
Demchak, PNC Chairman, President and Chief Executive
Officer
|
Second Quarter Sale of Equity Investment in BlackRock, Inc. -
Discontinued Operations
- In the second quarter of 2020, PNC divested its entire 22.4%
equity investment in BlackRock. 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 for all periods
presented, are reported as discontinued operations.
Income Statement Highlights - Continuing Operations
Third quarter 2020 compared with second quarter 2020
- Net income from continuing operations was $1.5 billion, an increase of $2.3 billion driven by a lower provision for
credit losses and higher noninterest income.
- Total revenue of $4.3 billion
increased $205 million, or 5%.
- Net interest income of $2.5
billion decreased $43 million,
or 2%, as lower yields on loans and securities and a decline in
loan balances more than offset the benefit of lower rates on
deposits and borrowings.
-
- Net interest margin decreased 13 basis points to 2.39%
reflecting the impact of higher balances held with the Federal
Reserve Bank and lower yields on loans and securities partially
offset by lower rates on deposits and borrowings.
- Noninterest income of $1.8
billion increased $248
million, or 16%.
-
- Fee income of $1.3 billion
increased $62 million, or 5%, as a
result of increases in consumer service fees, service charges on
deposits and asset management revenue partially offset by lower
corporate service fees and residential mortgage revenue.
- Other noninterest income of $457
million increased $186 million
and included positive valuation adjustments of private equity
investments partially offset by lower capital markets-related
revenue.
- Noninterest expense of $2.5
billion increased $16 million,
or 1%.
- Provision for credit losses was $52
million, a decrease of $2.4
billion.
-
- Provision for commercial loans was $219
million largely related to borrowers in industries adversely
impacted by the pandemic, primarily within the commercial real
estate portfolio.
- The consumer loan portfolio had a provision recapture of
$215 million primarily due to
improvement in macroeconomic factors.
- The effective tax rate declined to 9.8% for the third quarter
compared with 17.5% for the second quarter primarily due to tax
credit benefits and the favorable resolution of certain tax
matters.
Balance Sheet Highlights
Third quarter 2020 compared with second quarter 2020, or
September 30, 2020 compared with
June 30, 2020
- Average loans decreased $15.0
billion, or 6%, to $253.1
billion.
-
- Average commercial loans of $175.6
billion decreased $13.7
billion, or 7%, reflecting lower utilization of loan
commitments.
- Average consumer loans of $77.5
billion decreased $1.3
billion, or 2%, due to lower auto, credit card, home equity
and student loans partially offset by higher residential mortgage
loans.
- Loans at September 30, 2020
declined $9.0 billion, or 3%, to
$249.3 billion. Commercial loans
decreased $7.5 billion, or 4%, and
consumer loans decreased $1.5
billion, or 2%.
- Credit quality performance:
-
- Overall delinquencies of $1.2
billion at September 30, 2020
decreased $72 million, or 5%.
- Nonperforming assets of $2.2
billion at September 30, 2020
increased $197 million, or 10%.
- Net loan charge-offs were $155
million for the third quarter compared with $236 million for the second quarter.
- The allowance for credit losses to total loans was 2.58% at
September 30, 2020 compared with
2.55% at June 30, 2020.
- Average deposits increased $15.3
billion, or 5%, to $350.5
billion due to growth in both commercial and consumer
deposits. Commercial deposits grew as a result of customer
liquidity accumulation. Consumer deposits increased driven by
government stimulus and lower consumer spending.
-
- Deposits at September 30, 2020
increased $9.1 billion, or 3%, to
$355.1 billion.
- Average investment securities increased $2.1 billion, or 2%, to $90.5 billion.
-
- Investment securities at September 30,
2020 decreased $7.3 billion,
or 7%, to $91.2 billion as portfolio
prepayments and maturities exceeded reinvestments.
- Average balances held with the Federal Reserve Bank of
$60.0 billion increased $25.8 billion reflecting higher deposits and
proceeds from the sale of the equity investment in BlackRock.
-
- Federal Reserve Bank balances at September 30, 2020 increased $20.6 billion to $70.6
billion due to liquidity from deposit growth.
- PNC maintained strong capital and liquidity positions.
-
- On October 1, 2020, the PNC board
of directors declared a quarterly cash dividend on common stock of
$1.15 per share payable on
November 5, 2020.
- The Basel III common equity Tier 1 capital ratio was an
estimated 11.7% at September 30, 2020
and 11.3% at June 30, 2020.
- The Liquidity Coverage Ratio at September 30, 2020 for both PNC and PNC Bank,
N.A. exceeded the regulatory minimum requirement.
Earnings
Summary
|
|
|
|
|
|
|
In millions,
except per share data
|
|
3Q20
|
|
2Q20
|
|
3Q19
|
Net income
|
|
$
|
1,532
|
|
|
$
|
3,655
|
|
|
$
|
1,392
|
|
Net income
attributable to diluted common shares
|
|
$
|
1,447
|
|
|
$
|
3,569
|
|
|
$
|
1,307
|
|
Diluted earnings per
common share
|
|
$
|
3.39
|
|
|
$
|
8.40
|
|
|
$
|
2.94
|
|
Average diluted
common shares outstanding
|
|
426
|
|
|
426
|
|
|
445
|
|
Return on average
assets
|
|
1.32
|
%
|
|
3.21
|
%
|
|
1.36
|
%
|
Return on average
common equity
|
|
11.76
|
%
|
|
30.11
|
%
|
|
11.56
|
%
|
Book value per common
share
|
Quarter
end
|
$
|
117.44
|
|
|
$
|
115.26
|
|
|
$
|
103.37
|
|
Tangible book value
per common share (non-GAAP)
|
Quarter
end
|
$
|
95.71
|
|
|
$
|
93.54
|
|
|
$
|
82.37
|
|
Cash dividends
declared per common share
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Net interest
income
|
$
|
2,484
|
|
|
$
|
2,527
|
|
|
$
|
2,504
|
|
(2)
|
%
|
(1)
|
%
|
Noninterest
income
|
1,797
|
|
|
1,549
|
|
|
1,738
|
|
16
|
%
|
3
|
%
|
Total
revenue
|
$
|
4,281
|
|
|
$
|
4,076
|
|
|
$
|
4,242
|
|
5
|
%
|
1
|
%
|
|
|
|
|
|
|
|
|
Total revenue for the third quarter of 2020 increased
$205 million compared with the second
quarter and $39 million compared with
the third quarter of 2019 driven by higher noninterest income.
Net interest income of $2.5
billion for the third quarter of 2020 decreased $43 million compared to the second quarter as
lower yields on loans and securities and a decline in loan balances
more than offset the benefits from lower rates on deposits and
borrowings, reduced borrowing balances and an additional day in the
third quarter. In comparison with the third quarter of 2019, net
interest income decreased $20 million
due to lower yields on earning assets partially offset by lower
rates on deposits and borrowings and higher average earning assets.
The net interest margin declined to 2.39% for the third quarter of
2020 from 2.52% in the second quarter and 2.84% in the third
quarter of 2019 as a result of lower yields on loans and securities
and higher balances held with the Federal Reserve, partially offset
by lower rates on deposits and borrowings.
Noninterest
Income
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Asset
management
|
$
|
215
|
|
|
$
|
199
|
|
|
$
|
213
|
|
8
|
%
|
1
|
%
|
Consumer
services
|
390
|
|
|
330
|
|
|
402
|
|
18
|
%
|
(3)
|
%
|
Corporate
services
|
479
|
|
|
512
|
|
|
469
|
|
(6)
|
%
|
2
|
%
|
Residential
mortgage
|
137
|
|
|
158
|
|
|
134
|
|
(13)
|
%
|
2
|
%
|
Service charges on
deposits
|
119
|
|
|
79
|
|
|
178
|
|
51
|
%
|
(33)
|
%
|
Other
|
457
|
|
|
271
|
|
|
342
|
|
69
|
%
|
34
|
%
|
|
$
|
1,797
|
|
|
$
|
1,549
|
|
|
$
|
1,738
|
|
16
|
%
|
3
|
%
|
|
|
|
|
|
|
|
|
Noninterest income for the third quarter of 2020 increased
$248 million compared with the second
quarter. Asset management revenue increased $16 million reflecting the impact of higher
average equity markets. Consumer services increased $60 million and service charges on deposits
increased $40 million due to higher
transaction volumes and a decrease in total fees waived for
customers experiencing pandemic-related hardships. Corporate
services declined $33 million due to
lower asset-backed financing, merger and acquisition advisory and
loan syndication fees partially offset by higher treasury
management product revenue and loan commitment fees. Residential
mortgage revenue declined $21 million
driven by lower servicing fees and loan sales revenue. Other
noninterest income increased $186
million and included positive valuation adjustments of
private equity investments partially offset by lower capital
markets-related revenue.
Noninterest income for the third quarter of 2020 increased
$59 million compared with the third
quarter of 2019. Consumer services decreased $12 million and service charges on deposits
decreased $59 million reflecting
lower transaction volumes, fees waived for customers experiencing
pandemic-related hardships and lower revenue related to the
elimination of certain checking product fees. Corporate services
increased $10 million primarily due
to higher revenue from commercial mortgage servicing activities,
loan commitment fees and treasury management product revenue
partially offset by lower merger and acquisition advisory fees.
Other noninterest income increased $115
million reflecting higher revenue from net securities gains,
capital markets-related activities and positive valuation
adjustments of private equity investments.
CONSOLIDATED
EXPENSE REVIEW
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Personnel
|
$
|
1,410
|
|
|
$
|
1,373
|
|
|
$
|
1,400
|
|
3
|
%
|
1
|
%
|
Occupancy
|
205
|
|
|
199
|
|
|
206
|
|
3
|
%
|
—
|
|
Equipment
|
292
|
|
|
301
|
|
|
291
|
|
(3)
|
%
|
—
|
|
Marketing
|
67
|
|
|
47
|
|
|
76
|
|
43
|
%
|
(12)
|
%
|
Other
|
557
|
|
|
595
|
|
|
650
|
|
(6)
|
%
|
(14)
|
%
|
|
$
|
2,531
|
|
|
$
|
2,515
|
|
|
$
|
2,623
|
|
1
|
%
|
(4)
|
%
|
|
|
|
|
|
|
|
|
Noninterest expense for the third quarter of 2020 increased
$16 million compared with the second
quarter. Personnel expense increased $37
million due to higher benefits expense, primarily medical,
and an additional day in the quarter. Marketing expense increased
$20 million and included the launch
of a new digital checking product. These increases were partially
offset by continued progress on cost savings initiatives.
Noninterest expense for the third quarter of 2020 decreased
$92 million compared with the third
quarter of 2019 reflecting a continuous focus on expense management
as well as lower business activity related to the economic impact
of the pandemic.
The effective tax rate from continuing operations was 9.8% for
the third quarter of 2020, 17.5% for the second quarter of
2020 and 17.8% for the third quarter of 2019. The decrease in both
comparisons was primarily due to tax credit benefits and the
favorable resolution of certain tax matters in the third quarter of
2020.
CONSOLIDATED BALANCE SHEET REVIEW
Average total assets were $462.1
billion in the third quarter of 2020 compared with
$457.3 billion in the second quarter
of 2020 and $406.7 billion in the
third quarter of 2019. Total assets were $461.8 billion at September 30, 2020, $459.0
billion at June 30, 2020 and
$408.9 billion at September 30, 2019. Balance sheet growth in the
third quarter of 2020 in all comparisons resulted from higher
balances maintained with the Federal Reserve Bank driven by
increased deposits. Third quarter 2020 average and period-end loans
decreased compared with the second quarter of 2020 and increased
compared with the third quarter of 2019.
|
Loans
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
billions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Average
|
|
|
|
|
|
|
|
Commercial
|
$
|
175.6
|
|
|
$
|
189.3
|
|
|
$
|
161.5
|
|
(7)
|
%
|
9
|
%
|
Consumer
|
77.5
|
|
|
78.8
|
|
|
76.2
|
|
(2)
|
%
|
2
|
%
|
Average
loans
|
$
|
253.1
|
|
|
$
|
268.1
|
|
|
$
|
237.7
|
|
(6)
|
%
|
6
|
%
|
|
|
|
|
|
|
|
|
Quarter
end
|
|
|
|
|
|
|
|
Commercial
|
$
|
172.7
|
|
|
$
|
180.2
|
|
|
$
|
160.2
|
|
(4)
|
%
|
8
|
%
|
Consumer
|
76.6
|
|
|
78.1
|
|
|
77.2
|
|
(2)
|
%
|
(1)
|
%
|
Total
loans
|
$
|
249.3
|
|
|
$
|
258.3
|
|
|
$
|
237.4
|
|
(3)
|
%
|
5
|
%
|
|
|
|
|
|
|
|
|
Average loans for the third quarter 2020 decreased $15.0 billion compared with the second quarter.
Average commercial loans declined $13.7
billion reflecting lower utilization of loan commitments,
including paydowns of loan commitments drawn early in the pandemic.
Average consumer loans decreased $1.3
billion as a result of lower auto, credit card, home equity
and student loans partially offset by higher residential mortgage
loans.
Total loans at September 30, 2020
decreased $9.0 billion compared with
June 30, 2020 driven by a decline in
commercial loans of $7.5 billion.
Unfunded commercial loan commitments increased to $145.5 billion at September 30, 2020 compared with $137.2 billion at June 30,
2020 and included growth in new loan commitments. At
September 30, 2020 PNC had
$12.9 billion of PPP loans
outstanding, down from the second quarter funded amount of
$13.7 billion. Consumer loans at
September 30, 2020 decreased
$1.5 billion compared with
June 30, 2020.
Average and period-end loans for the third quarter of 2020
increased $15.4 billion and
$11.9 billion, respectively, compared
with the third quarter of 2019 driven by growth in commercial
loans, including PPP lending.
Investment
Securities
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
billions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Average
|
$
|
90.5
|
|
|
$
|
88.4
|
|
|
$
|
85.2
|
|
2
|
%
|
6
|
%
|
Quarter
end
|
$
|
91.2
|
|
|
$
|
98.5
|
|
|
$
|
87.9
|
|
(7)
|
%
|
4
|
%
|
|
|
|
|
|
|
|
|
Average investment securities for the third quarter of 2020
increased $2.1 billion compared with
the second quarter as a result of net purchases of short-term U.S.
Treasury securities near second quarter end. Investment securities
at September 30, 2020 decreased
$7.3 billion compared with the second
quarter as prepayment of agency residential mortgage-backed
securities and maturity of short-term U.S. Treasury securities
exceeded purchases. Third quarter 2020 average and period-end
investment securities increased $5.3
billion and $3.3 billion,
respectively, compared with the third 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 both September 30, 2020 and June 30, 2020 and $1.4
billion at September 30,
2019.
Average balances held with the Federal Reserve Bank of
$60.0 billion in the third quarter of
2020 increased from $34.2 billion in
the second quarter of 2020 reflecting deposit growth and proceeds
from the sale of the equity investment in BlackRock. Federal
Reserve Bank balances at September 30,
2020 of $70.6 billion
increased from $50.0 billion at
June 30, 2020 due to liquidity from
deposit growth. Balances held with the Federal Reserve Bank were
$15.3 billion for the third quarter
of 2019 and $18.8 billion at
September 30, 2019.
Deposits
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
billions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Average
|
|
|
|
|
|
|
|
Noninterest-bearing
|
$
|
101.9
|
|
|
$
|
93.7
|
|
|
$
|
72.1
|
|
9
|
%
|
41
|
%
|
Interest-bearing
|
248.6
|
|
|
241.5
|
|
|
207.0
|
|
3
|
%
|
20
|
%
|
Average
deposits
|
$
|
350.5
|
|
|
$
|
335.2
|
|
|
$
|
279.1
|
|
5
|
%
|
26
|
%
|
|
|
|
|
|
|
|
|
Quarter
end
|
|
|
|
|
|
|
|
Noninterest-bearing
|
$
|
107.3
|
|
|
$
|
99.5
|
|
|
$
|
74.1
|
|
8
|
%
|
45
|
%
|
Interest-bearing
|
247.8
|
|
|
246.5
|
|
|
211.5
|
|
1
|
%
|
17
|
%
|
Total
deposits
|
$
|
355.1
|
|
|
$
|
346.0
|
|
|
$
|
285.6
|
|
3
|
%
|
24
|
%
|
|
|
|
|
|
|
|
|
Average deposits for the third quarter of 2020 increased
$15.3 billion compared with the
second quarter and deposits at September 30,
2020 increased $9.1 billion
compared with June 30, 2020 due to
growth in commercial deposits as a result of customer liquidity
accumulation. Consumer deposits also increased reflecting
government stimulus and lower consumer spending. Third quarter 2020
average and period-end deposits increased $71.4 billion and $69.5
billion, respectively, compared with third quarter 2019 as a
result of overall growth in commercial and consumer deposits and
customers.
Borrowed
Funds
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
3Q20 vs
|
3Q20 vs
|
In
billions
|
3Q20
|
|
2Q20
|
|
3Q19
|
2Q20
|
3Q19
|
Average
|
$
|
43.3
|
|
|
$
|
53.2
|
|
|
$
|
63.9
|
|
(19)
|
%
|
(32)
|
%
|
Quarter
end
|
$
|
42.1
|
|
|
$
|
47.0
|
|
|
$
|
61.3
|
|
(10)
|
%
|
(31)
|
%
|
|
|
|
|
|
|
|
|
Average borrowed funds for the third quarter of 2020 decreased
$9.9 billion compared with the second
quarter and borrowed funds at September 30,
2020 decreased $4.9 billion
compared with June 30, 2020 due to
lower Federal Home Loan Bank borrowings, bank notes and senior debt
and repurchase agreements reflecting the use of liquidity from
deposit growth. Average borrowed funds for the third quarter of
2020 declined $20.6 billion compared
with the third quarter of 2019 and period-end borrowed funds
decreased $19.2 billion reflecting
the use of liquidity from deposit growth and proceeds from the sale
of the equity investment in BlackRock.
Capital
|
|
|
|
|
|
|
|
9/30/2020
|
*
|
|
6/30/2020
|
|
9/30/2019
|
Common shareholders'
equity In billions
|
$
|
49.8
|
|
|
|
$
|
48.9
|
|
|
$
|
45.4
|
|
Basel III common
equity Tier 1 capital ratio
|
11.7
|
%
|
|
|
11.3
|
%
|
|
9.6
|
%
|
Basel III common
equity Tier 1 fully implemented capital
ratio
|
11.3
|
%
|
|
|
10.9
|
%
|
|
N/A
|
|
* Ratios
estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PNC maintained a strong capital position. Common shareholders'
equity at September 30, 2020
increased $.9 billion, or 2%, over
June 30, 2020 due to third quarter
net income partially offset by dividends.
The PNC board of directors declared a quarterly cash dividend on
common stock payable on November 5,
2020 of $1.15 per share.
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 fourth quarter of 2020, consistent with the extension
of the Federal Reserve's special capital distribution restrictions.
PNC repurchased $99 million of common
shares in the third quarter to offset the effects of employee
benefit plan-related issuances in 2020 as permitted by guidance
from the Federal Reserve.
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
|
3Q20 vs
|
3Q20 vs
|
In
millions
|
9/30/2020
|
|
6/30/2020
|
|
9/30/2019
|
2Q20
|
3Q19
|
Provision for credit
losses
|
$
|
52
|
|
|
$
|
2,463
|
|
|
$
|
183
|
|
$
|
(2,411)
|
|
$
|
(131)
|
|
Net loan
charge-offs
|
$
|
155
|
|
|
$
|
236
|
|
|
$
|
155
|
|
(34)
|
%
|
—
|
|
Nonperforming
loans
|
$
|
2,085
|
|
|
$
|
1,876
|
|
|
$
|
1,728
|
|
11
|
%
|
21
|
%
|
Nonperforming
assets
|
$
|
2,152
|
|
|
$
|
1,955
|
|
|
$
|
1,847
|
|
10
|
%
|
17
|
%
|
Accruing loans past
due 90 days or more
|
$
|
448
|
|
|
$
|
456
|
|
|
$
|
532
|
|
(2)
|
%
|
(16)
|
%
|
Allowance for loan
and lease losses
|
$
|
5,751
|
|
|
$
|
5,928
|
|
|
$
|
2,738
|
|
$
|
(177)
|
|
$
|
3,013
|
|
Allowance for
unfunded lending related commitments
|
$
|
689
|
|
|
$
|
662
|
|
|
$
|
304
|
|
$
|
27
|
|
$
|
385
|
|
Allowance for credit
losses to total loans
|
2.58
|
%
|
|
2.55
|
%
|
|
1.28
|
%
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses was $52
million in the third quarter of 2020, a decrease of
$2.4 billion from June 30, 2020, reflecting improvement in
macroeconomic factors from the second quarter. This benefit was
offset by higher expected losses for certain borrowers in
industries adversely impacted by the pandemic, primarily within the
commercial real estate loan portfolio. Provision for credit losses
was $219 million for commercial
loans, a provision recapture of $215
million for consumer loans and a provision of $48 million for securities and other assets.
Net loan charge-offs for the third quarter of 2020 decreased
$81 million compared with the second
quarter. Commercial loan net charge-offs declined $69 million from the second quarter reflecting
lower charge-offs of commercial and industrial loans and higher
recoveries. Consumer loan net charge-offs decreased $12 million from the second quarter primarily due
to auto loans. Net loan charge-offs were stable with the third
quarter of 2019. Net charge-offs were .24% of average loans on an
annualized basis at September 30,
2020, .35% at June 30, 2020
and .26% at September 30, 2019.
Nonperforming assets at September 30,
2020 increased $197 million
compared with June 30, 2020. Higher
nonperforming commercial loans of $157
million and higher nonperforming consumer loans of
$52 million were partially offset by
lower other real estate owned and foreclosed assets of $12 million. Higher nonperforming commercial
loans reflected an increase in nonperforming commercial real estate
loans of $174 million primarily
related to industries adversely impacted by the pandemic.
Nonperforming assets increased $305
million compared with September 30,
2019 due to higher nonperforming commercial loans of
$339 million and higher nonperforming
consumer loans of $18 million
partially offset by lower other real estate owned and foreclosed
assets of $52 million. Nonperforming
assets to total assets were .47% at September 30, 2020 compared with .43% at
June 30, 2020 and .45% at
September 30, 2019.
Overall delinquencies at September 30,
2020 decreased $72 million
compared with June 30, 2020. Consumer
loan delinquencies decreased $41
million and commercial loan delinquencies declined
$31 million. Loans past due 30 to 59
days decreased $51 million, loans
past due 60 to 89 days decreased $13
million and loans past due 90 days or more decreased
$8 million. Under the CARES Act
credit reporting rules and guidance from regulatory agencies,
certain loans modified due to pandemic-related hardships were
considered current and not reported as past due at September 30, 2020 and June 30, 2020.
The allowance for credit losses was $6.4
billion at September 30, 2020
and $6.6 billion at June 30, 2020. The allowance for credit losses as
a percentage of total loans was 2.58% at September 30, 2020 and 2.55% at June 30, 2020.
BUSINESS SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Income (Loss)
|
|
|
|
|
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
Retail
Banking
|
$
|
530
|
|
|
$
|
(223)
|
|
|
$
|
347
|
|
Corporate &
Institutional Banking
|
670
|
|
|
(358)
|
|
|
645
|
|
Asset Management
Group
|
91
|
|
|
28
|
|
|
46
|
|
Other
|
241
|
|
|
(191)
|
|
|
143
|
|
Net income (loss)
from continuing operations
|
$
|
1,532
|
|
|
$
|
(744)
|
|
|
$
|
1,181
|
|
See accompanying
notes in Consolidated Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
3Q20 vs
|
|
3Q20 vs
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
|
2Q20
|
|
3Q19
|
Net interest
income
|
$
|
1,383
|
|
|
$
|
1,390
|
|
|
$
|
1,393
|
|
|
$
|
(7)
|
|
|
$
|
(10)
|
|
Noninterest
income
|
$
|
673
|
|
|
$
|
585
|
|
|
$
|
744
|
|
|
$
|
88
|
|
|
$
|
(71)
|
|
Provision for
(recapture of) credit losses
|
$
|
(157)
|
|
|
$
|
761
|
|
|
$
|
147
|
|
|
$
|
(918)
|
|
|
$
|
(304)
|
|
Noninterest
expense
|
$
|
1,521
|
|
|
$
|
1,500
|
|
|
$
|
1,536
|
|
|
$
|
21
|
|
|
$
|
(15)
|
|
Earnings
(loss)
|
$
|
530
|
|
|
$
|
(223)
|
|
|
$
|
347
|
|
|
$
|
753
|
|
|
$
|
183
|
|
|
|
|
|
|
|
|
|
|
|
In
billions
|
|
|
|
|
|
|
|
|
|
Average
loans
|
$
|
81.8
|
|
|
$
|
83.7
|
|
|
$
|
77.7
|
|
|
$
|
(1.9)
|
|
|
$
|
4.1
|
|
Average
deposits
|
$
|
197.9
|
|
|
$
|
189.0
|
|
|
$
|
168.8
|
|
|
$
|
8.9
|
|
|
$
|
29.1
|
|
|
|
|
|
|
|
|
|
|
|
Retail Banking earnings for the third quarter of 2020 increased
compared with the second quarter of 2020 and the third quarter of
2019. Noninterest income increased over the second quarter driven
by higher consumer services fees, including merchant services,
debit card and credit card fees primarily attributable to higher
transaction volumes, as well as increased service charges on
deposits due to a decrease in total fees waived for customers
experiencing pandemic-related hardships. These increases were
partially offset by lower residential mortgage revenue as a result
of lower servicing fees and loan sales revenue. In comparison with
the third quarter of 2019, noninterest income decreased due to
lower service charges on deposits and consumer services fees,
including merchant services and credit card, driven by lower
transaction volumes. Service charges on deposits declined largely
due to fees waived for customers experiencing pandemic-related
hardships and lower revenue related to the elimination of certain
checking product fees. Noninterest income in both comparisons
benefited from the impact of negative derivative fair value
adjustments related to Visa Class B common shares in the second
quarter of 2020 and third quarter of 2019. Provision for credit
losses decreased in the third quarter of 2020 compared with the
second quarter due to improvement in macroeconomic factors.
Noninterest expense increased compared with the second quarter
reflecting higher marketing, including the launch of a new digital
checking product, and ATM expense as a result of higher transaction
volumes. Noninterest expense decreased compared with the third
quarter of 2019 primarily as a result of lower marketing, ATM
expense and costs associated with business travel partially offset
by higher branch-related expense due to the impact of the
pandemic.
- Average loans decreased 2% compared with the second quarter of
2020 and increased 5% compared with the third quarter of 2019. The
decrease from the second quarter was driven by declines in auto,
credit card and unsecured installment loans reflecting consumer
behavior. The increase compared with third quarter 2019 primarily
resulted from growth in commercial loans driven by PPP lending and
residential mortgage loans reflecting higher originations in the
low interest rate environment.
- Average deposits increased 5% compared with the second quarter
and 17% compared with third quarter 2019 due to increases in demand
deposits and savings as a result of government stimulus and lower
consumer spending, partially offset by lower certificates of
deposit. Compared to the third quarter of 2019, the increase was
also partially offset by lower money market deposits reflecting a
shift to relationship-based savings products.
- Net loan charge-offs were $125
million for the third quarter of 2020 compared with
$142 million in the second quarter of
2020 and $128 million in the third
quarter of 2019.
- Residential mortgage loan origination volume was $4.0 billion in the third quarter of 2020
compared with $4.2 billion for the
second quarter and $3.4 billion for
the third quarter of 2019. Approximately 44% of third quarter 2020
volume was for home purchase transactions compared with 34% and 44%
for the second quarter of 2020 and third quarter of 2019,
respectively.
- The third party residential mortgage servicing portfolio was
$119 billion at September 30, 2020 compared with $122 billion at June 30,
2020 and $123 billion at
September 30, 2019. Residential
mortgage loan servicing acquisitions were $8
billion for the third quarter of 2020 compared with
$11 billion for the second quarter of
2020 and $3 billion for the third
quarter of 2019.
- Approximately 75% of consumer customers used non-teller
channels for the majority of their transactions during the third
quarter of 2020 compared with 73% in the second quarter of 2020 and
70% in the third quarter of 2019.
- Deposit transactions via ATM and mobile channels were 67% of
total deposit transactions in the third quarter of 2020 compared
with 65% in the second quarter of 2020 and 58% in the third quarter
of 2019.
Corporate &
Institutional Banking
|
|
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
3Q20 vs
|
|
3Q20 vs
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
|
2Q20
|
|
3Q19
|
Net interest
income
|
$
|
1,025
|
|
|
$
|
1,064
|
|
|
$
|
930
|
|
|
$
|
(39)
|
|
|
$
|
95
|
|
Noninterest
income
|
$
|
723
|
|
|
$
|
726
|
|
|
$
|
654
|
|
|
$
|
(3)
|
|
|
$
|
69
|
|
Provision for credit
losses
|
$
|
211
|
|
|
$
|
1,585
|
|
|
$
|
48
|
|
|
$
|
(1,374)
|
|
|
$
|
163
|
|
Noninterest
expense
|
$
|
666
|
|
|
$
|
673
|
|
|
$
|
703
|
|
|
$
|
(7)
|
|
|
$
|
(37)
|
|
Earnings
(loss)
|
$
|
670
|
|
|
$
|
(358)
|
|
|
$
|
645
|
|
|
$
|
1,028
|
|
|
$
|
25
|
|
|
|
|
|
|
|
|
|
|
|
In
billions
|
|
|
|
|
|
|
|
|
|
Average
loans
|
$
|
159.5
|
|
|
$
|
173.1
|
|
|
$
|
148.6
|
|
|
$
|
(13.6)
|
|
|
$
|
10.9
|
|
Average
deposits
|
$
|
133.1
|
|
|
$
|
127.0
|
|
|
$
|
95.8
|
|
|
$
|
6.1
|
|
|
$
|
37.3
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Institutional Banking earnings for the third
quarter of 2020 increased compared with both the second quarter of
2020 and third quarter of 2019. Noninterest income decreased
slightly compared to the second quarter primarily due to lower
capital markets-related revenue partially offset by higher treasury
management product revenue, gains on asset sales and loan
commitment fees. Noninterest income increased compared with the
third quarter of 2019 driven by broad-based growth in revenue from
commercial mortgage banking activities, capital markets-related
revenue and treasury management product revenue. Provision for
credit losses decreased in the third quarter of 2020 compared with
the second quarter due to improvement in macroeconomic factors
partially offset by higher expected losses for certain borrowers in
industries adversely impacted by the pandemic, primarily within the
commercial real estate loan portfolio. Noninterest expense
decreased in both comparisons largely due to lower variable costs,
including lower expense associated with business travel.
- Average loans decreased 8% compared with the second quarter due
to declines across PNC's corporate banking, business credit and
real estate businesses, including lower average utilization of loan
commitments. Average loans increased 7% over the third quarter of
2019 due to broad growth across PNC's corporate banking, commercial
banking and real estate businesses, including PPP loan
originations.
- Average deposits increased 5% from the second quarter and 39%
from the third quarter of 2019 reflecting liquidity maintained by
customers due to the economic impact of the pandemic.
- Net charge-offs were $32 million
in the third quarter of 2020 compared with $99 million in the second quarter and
$30 million in the third quarter of
2019.
|
Asset Management
Group
|
|
|
|
|
|
|
Change
|
|
Change
|
|
|
|
|
|
|
|
3Q20 vs
|
|
3Q20 vs
|
In
millions
|
3Q20
|
|
2Q20
|
|
3Q19
|
|
2Q20
|
|
3Q19
|
Net interest
income
|
$
|
89
|
|
|
$
|
89
|
|
|
$
|
70
|
|
|
—
|
|
|
$
|
19
|
|
Noninterest
income
|
$
|
221
|
|
|
$
|
204
|
|
|
$
|
216
|
|
|
$
|
17
|
|
|
$
|
5
|
|
Provision for
(recapture of) credit losses
|
$
|
(19)
|
|
|
$
|
39
|
|
|
$
|
(1)
|
|
|
$
|
(58)
|
|
|
$
|
(18)
|
|
Noninterest
expense
|
$
|
211
|
|
|
$
|
217
|
|
|
$
|
228
|
|
|
$
|
(6)
|
|
|
$
|
(17)
|
|
Earnings
|
$
|
91
|
|
|
$
|
28
|
|
|
$
|
46
|
|
|
$
|
63
|
|
|
$
|
45
|
|
|
|
|
|
|
|
|
|
|
|
In
billions
|
|
|
|
|
|
|
|
|
|
Client assets under
administration at
quarter end
|
$
|
300
|
|
|
$
|
289
|
|
|
$
|
298
|
|
|
$
|
11
|
|
|
$
|
2
|
|
Average
loans
|
$
|
7.9
|
|
|
$
|
7.5
|
|
|
$
|
6.9
|
|
|
$
|
.4
|
|
|
$
|
1.0
|
|
Average
deposits
|
$
|
19.1
|
|
|
$
|
18.9
|
|
|
$
|
13.6
|
|
|
$
|
.2
|
|
|
$
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management Group earnings for the third quarter of 2020
increased in both comparisons reflecting growth in noninterest
income as a result of higher average equity markets. Compared with
the third quarter of 2019, noninterest income was impacted by gains
on 2019 divestiture activity. Provision for credit losses decreased
in the third quarter of 2020 compared with the second quarter due
to improvement in macroeconomic factors. Noninterest expense
declined in both comparisons due to lower variable costs, and the
decrease compared with the third quarter of 2019 was also impacted
by 2019 divestitures.
Client assets under administration at September 30, 2020 included discretionary client
assets under management of $158
billion and nondiscretionary client assets under
administration of $142 billion.
Discretionary client assets under management increased $7 billion compared with June 30, 2020 primarily driven by higher equity
markets. Discretionary client assets under management decreased
$5 billion compared with September 30, 2019 driven by the sale of
components of the PNC Capital Advisors investment management
business, including its PNC family of proprietary mutual funds, in
the fourth quarter of 2019 partially offset by higher equity
markets.
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)
402-9103 and (303) 223-2685 (international) and Internet access to
the live audio listen-only webcast of the call is available at
www.pnc.com/investorevents. PNC's third 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
21968576 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
|
|
|
|
Nine months
ended
|
Dollars in
millions, except per share data
|
|
September
30
|
|
June 30
|
|
September
30
|
|
|
|
September
30
|
|
September
30
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
2,484
|
|
|
$
|
2,527
|
|
|
$
|
2,504
|
|
|
|
|
$
|
7,522
|
|
|
$
|
7,477
|
|
Noninterest
income
|
|
1,797
|
|
|
1,549
|
|
|
1,738
|
|
|
|
|
5,171
|
|
|
5,041
|
|
Total
revenue
|
|
4,281
|
|
|
4,076
|
|
|
4,242
|
|
|
|
|
12,693
|
|
|
12,518
|
|
Provision for credit
losses
|
|
52
|
|
|
2,463
|
|
|
183
|
|
|
|
|
3,429
|
|
|
552
|
|
Noninterest
expense
|
|
2,531
|
|
|
2,515
|
|
|
2,623
|
|
|
|
|
7,589
|
|
|
7,812
|
|
Income (loss) from
continuing operations before income taxes and noncontrolling
interests
|
|
$
|
1,698
|
|
|
$
|
(902)
|
|
|
$
|
1,436
|
|
|
|
|
$
|
1,675
|
|
|
$
|
4,154
|
|
Income taxes
(benefit) from continuing operations
|
|
166
|
|
|
(158)
|
|
|
255
|
|
|
|
|
128
|
|
|
706
|
|
Net income (loss) from continuing operations
|
|
$
|
1,532
|
|
|
$
|
(744)
|
|
|
$
|
1,181
|
|
|
|
|
$
|
1,547
|
|
|
$
|
3,448
|
|
Income from
discontinued operations before taxes
|
|
|
|
$
|
5,596
|
|
|
$
|
251
|
|
|
|
|
$
|
5,777
|
|
|
$
|
700
|
|
Income taxes from
discontinued operations
|
|
|
|
1,197
|
|
|
40
|
|
|
|
|
1,222
|
|
|
111
|
|
Net income from discontinued operations
|
|
|
|
$
|
4,399
|
|
|
$
|
211
|
|
|
|
|
$
|
4,555
|
|
|
$
|
589
|
|
Net income
|
|
$
|
1,532
|
|
|
$
|
3,655
|
|
|
$
|
1,392
|
|
|
|
|
$
|
6,102
|
|
|
$
|
4,037
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
|
13
|
|
|
7
|
|
|
13
|
|
|
|
|
27
|
|
|
35
|
|
Preferred stock
dividends (a)
|
|
63
|
|
|
55
|
|
|
63
|
|
|
|
|
181
|
|
|
181
|
|
Preferred stock
discount accretion and redemptions
|
|
1
|
|
|
1
|
|
|
1
|
|
|
|
|
3
|
|
|
3
|
|
Net income
attributable to common shareholders
|
|
$
|
1,455
|
|
|
$
|
3,592
|
|
|
$
|
1,315
|
|
|
|
|
$
|
5,891
|
|
|
$
|
3,818
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
from continuing operations
|
|
$
|
3.40
|
|
|
$
|
(1.90)
|
|
|
$
|
2.47
|
|
|
|
|
$
|
3.11
|
|
|
$
|
7.15
|
|
Basic earnings from
discontinued operations
|
|
|
|
10.28
|
|
|
.48
|
|
|
|
|
10.61
|
|
|
1.30
|
|
Total basic
earnings
|
|
$
|
3.40
|
|
|
$
|
8.40
|
|
|
$
|
2.95
|
|
|
|
|
$
|
13.73
|
|
|
$
|
8.45
|
|
Diluted earnings
(loss) from continuing operations
|
|
$
|
3.39
|
|
|
$
|
(1.90)
|
|
|
$
|
2.47
|
|
|
|
|
$
|
3.11
|
|
|
$
|
7.13
|
|
Diluted earnings from
discontinued operations
|
|
|
|
10.28
|
|
|
.47
|
|
|
|
|
10.59
|
|
|
1.29
|
|
Total diluted
earnings
|
|
$
|
3.39
|
|
|
$
|
8.40
|
|
|
$
|
2.94
|
|
|
|
|
$
|
13.70
|
|
|
$
|
8.42
|
|
Cash dividends
declared per common share
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
|
|
$
|
3.45
|
|
|
$
|
3.05
|
|
Effective tax rate
from continuing operations (b)
|
|
9.8
|
%
|
|
17.5
|
%
|
|
17.8
|
%
|
|
|
|
7.6
|
%
|
|
17.0
|
%
|
(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
|
|
|
|
Nine months
ended
|
|
|
September
30
|
|
June 30
|
|
September
30
|
|
|
|
September
30
|
|
September
30
|
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(a)
|
|
2.39
|
%
|
|
2.52
|
%
|
|
2.84
|
%
|
|
|
|
2.57
|
%
|
|
2.91
|
%
|
Noninterest income to
total revenue
|
|
42
|
%
|
|
38
|
%
|
|
41
|
%
|
|
|
|
41
|
%
|
|
40
|
%
|
Efficiency
(b)
|
|
59
|
%
|
|
62
|
%
|
|
62
|
%
|
|
|
|
60
|
%
|
|
62
|
%
|
Return on:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
|
11.76
|
%
|
|
30.11
|
%
|
|
11.56
|
%
|
|
|
|
16.57
|
%
|
|
11.48
|
%
|
Average
assets
|
|
1.32
|
%
|
|
3.21
|
%
|
|
1.36
|
%
|
|
|
|
1.83
|
%
|
|
1.36
|
%
|
BUSINESS SEGMENT
NET INCOME (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
In
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Banking
|
|
$
|
530
|
|
|
$
|
(223)
|
|
|
$
|
347
|
|
|
|
|
$
|
508
|
|
|
$
|
936
|
|
Corporate &
Institutional Banking
|
|
670
|
|
|
(358)
|
|
|
645
|
|
|
|
|
682
|
|
|
1,799
|
|
Asset Management
Group
|
|
91
|
|
|
28
|
|
|
46
|
|
|
|
|
173
|
|
|
171
|
|
Other (d)
|
|
241
|
|
|
(191)
|
|
|
143
|
|
|
|
|
184
|
|
|
542
|
|
Net income (loss)
from continuing operations
|
|
$
|
1,532
|
|
|
$
|
(744)
|
|
|
$
|
1,181
|
|
|
|
|
$
|
1,547
|
|
|
$
|
3,448
|
|
(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
September 30, 2020, June 30, 2020 and September 30,
2019 were $17 million, $19 million and $25 million, respectively.
The taxable equivalent adjustments to net interest income for the
nine months ended September 30, 2020 and September 30,
2019 were $58 million and $79 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)
|
|
September
30
|
|
June 30
|
|
September
30
|
|
2020
|
|
2020
|
|
2019
|
BALANCE SHEET
DATA
|
|
|
|
|
|
Dollars in
millions, except per share data
|
|
|
|
|
|
Assets
|
$
|
461,817
|
|
|
$
|
458,978
|
|
|
$
|
408,916
|
|
Loans (a)
|
$
|
249,279
|
|
|
$
|
258,236
|
|
|
$
|
237,377
|
|
Allowance for loan
and lease losses (b)
|
$
|
5,751
|
|
|
$
|
5,928
|
|
|
$
|
2,738
|
|
Interest-earning
deposits with banks
|
$
|
70,959
|
|
|
$
|
50,233
|
|
|
$
|
19,036
|
|
Investment
securities
|
$
|
91,185
|
|
|
$
|
98,493
|
|
|
$
|
87,883
|
|
Loans held for sale
(a)
|
$
|
1,787
|
|
|
$
|
1,443
|
|
|
$
|
1,872
|
|
Equity
investments
|
$
|
4,938
|
|
|
$
|
4,943
|
|
|
$
|
5,004
|
|
Asset held for sale
(c)
|
|
|
|
|
$
|
8,321
|
|
Mortgage servicing
rights
|
$
|
1,113
|
|
|
$
|
1,067
|
|
|
$
|
1,483
|
|
Goodwill
|
$
|
9,233
|
|
|
$
|
9,233
|
|
|
$
|
9,233
|
|
Other assets
(a)
|
$
|
32,445
|
|
|
$
|
34,920
|
|
|
$
|
35,774
|
|
Noninterest-bearing
deposits
|
$
|
107,281
|
|
|
$
|
99,458
|
|
|
$
|
74,077
|
|
Interest-bearing
deposits
|
$
|
247,798
|
|
|
$
|
246,539
|
|
|
$
|
211,506
|
|
Total
deposits
|
$
|
355,079
|
|
|
$
|
345,997
|
|
|
$
|
285,583
|
|
Borrowed funds
(a)
|
$
|
42,110
|
|
|
$
|
47,026
|
|
|
$
|
61,354
|
|
Allowance for
unfunded lending related commitments (b)
|
$
|
689
|
|
|
$
|
662
|
|
|
$
|
304
|
|
Total shareholders'
equity
|
$
|
53,276
|
|
|
$
|
52,923
|
|
|
$
|
49,420
|
|
Common shareholders'
equity
|
$
|
49,760
|
|
|
$
|
48,928
|
|
|
$
|
45,428
|
|
Accumulated other
comprehensive income (loss)
|
$
|
2,997
|
|
|
$
|
3,069
|
|
|
$
|
837
|
|
Book value per common
share
|
$
|
117.44
|
|
|
$
|
115.26
|
|
|
$
|
103.37
|
|
Tangible book value
per common share (Non-GAAP) (d)
|
$
|
95.71
|
|
|
$
|
93.54
|
|
|
$
|
82.37
|
|
Period end common
shares outstanding (millions)
|
424
|
|
|
425
|
|
|
439
|
|
Loans to
deposits
|
70
|
%
|
|
75
|
%
|
|
83
|
%
|
Common shareholders'
equity to total assets
|
10.8
|
%
|
|
10.7
|
%
|
|
11.1
|
%
|
CLIENT ASSETS
(billions)
|
|
|
|
|
|
Discretionary client
assets under management
|
$
|
158
|
|
|
$
|
151
|
|
|
$
|
163
|
|
Nondiscretionary
client assets under administration
|
142
|
|
|
138
|
|
|
135
|
|
Total client assets
under administration
|
300
|
|
|
289
|
|
|
298
|
|
Brokerage account
client assets
|
55
|
|
|
53
|
|
|
52
|
|
Total client
assets
|
$
|
355
|
|
|
$
|
342
|
|
|
$
|
350
|
|
CAPITAL
RATIOS
|
|
|
|
|
|
Basel III (e)
(f)
|
|
|
|
|
|
Common equity Tier
1
|
11.7
|
%
|
|
11.3
|
%
|
|
9.6
|
%
|
Common equity Tier 1
fully implemented (g)
|
11.3
|
%
|
|
10.9
|
%
|
|
N/A
|
|
Tier 1
risk-based
|
12.7
|
%
|
|
12.4
|
%
|
|
10.7
|
%
|
Total capital
risk-based (h)
|
15.2
|
%
|
|
14.9
|
%
|
|
12.7
|
%
|
Leverage
|
9.4
|
%
|
|
9.4
|
%
|
|
9.3
|
%
|
Supplementary leverage
|
9.5
|
%
|
|
9.3
|
%
|
|
7.8
|
%
|
ASSET
QUALITY
|
|
|
|
|
|
Nonperforming loans
to total loans
|
.84
|
%
|
|
.73
|
%
|
|
.73
|
%
|
Nonperforming assets
to total loans, OREO and foreclosed assets
|
.86
|
%
|
|
.76
|
%
|
|
.78
|
%
|
Nonperforming assets
to total assets
|
.47
|
%
|
|
.43
|
%
|
|
.45
|
%
|
Net charge-offs to
average loans (for the three months ended) (annualized)
|
.24
|
%
|
|
.35
|
%
|
|
.26
|
%
|
Allowance for loan
and lease losses to total loans (i)
|
2.31
|
%
|
|
2.30
|
%
|
|
1.15
|
%
|
Allowance for credit
losses to total loans (i) (j)
|
2.58
|
%
|
|
2.55
|
%
|
|
1.28
|
%
|
Allowance for loan
and lease losses to nonperforming loans (i)
|
276
|
%
|
|
316
|
%
|
|
158
|
%
|
Accruing loans past
due 90 days or more (in millions)
|
$
|
448
|
|
|
$
|
456
|
|
|
$
|
532
|
|
(a)
|
Amounts include
assets and liabilities for which we have elected the fair value
option. Our second quarter 2020 Form 10-Q included, and our third
quarter 2020 Form 10-Q will include, additional information
regarding these Consolidated Balance Sheet line items.
|
(b)
|
Amounts at
September 30, 2020 and June 30, 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 and second quarter 2020 Form 10-Qs included, and our third
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 included
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 September 30, 2020 are
estimated.
|
(f)
|
The
September 30, 2020 and June 30, 2020 ratios are
calculated to reflect PNC's election to adopt the CECL optional
five-year transition provision.
|
(g)
|
The
September 30, 2020 and June 30, 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
September 30, 2020 and June 30, 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 and second quarter 2020 Form 10-Qs included, and
our third 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, 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 permitting 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 as of March
31, 2020. See the table below for the June 30,
2020 ratio and estimated September 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
September 30, 2020 and June 30, 2020 (Fully Implemented)
estimates presented in the table below.
We also provide additional information below regarding PNC's
September 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
|
|
|
|
|
|
September
30
2020
(estimated)
(b)
|
June 30
2020 (b)
|
|
September
30
2019
|
|
September 30,
2020
(Fully
Implemented)
(estimated)
(c)
|
June 30, 2020
(Fully
Implemented)
(estimated)
(c)
|
|
|
|
|
|
Dollars in
millions
|
|
|
Common stock, related
surplus and retained earnings,
net of treasury stock
|
$
|
48,122
|
|
$
|
47,254
|
|
|
$
|
44,592
|
|
|
$
|
46,763
|
|
$
|
45,859
|
|
|
Less regulatory
capital adjustments:
|
|
|
|
|
|
|
|
|
Goodwill and
disallowed intangibles, net of deferred
tax liabilities
|
(9,209)
|
|
(9,222)
|
|
|
(9,268)
|
|
|
(9,209)
|
|
(9,222)
|
|
|
Basel III total
threshold deductions (d)
|
|
|
|
(2,952)
|
|
|
|
|
|
Accumulated other
comprehensive income (loss) (e)
|
|
|
|
638
|
|
|
|
|
|
All other
adjustments
|
(62)
|
|
(75)
|
|
|
(209)
|
|
|
(64)
|
|
(78)
|
|
|
Basel III Common
equity Tier 1 capital
|
$
|
38,851
|
|
$
|
37,957
|
|
|
$
|
32,801
|
|
|
$
|
37,490
|
|
$
|
36,559
|
|
|
Basel III
standardized approach risk-weighted assets (f)
|
$
|
332,355
|
|
$
|
336,990
|
|
|
$
|
340,912
|
|
|
$
|
331,019
|
|
$
|
335,615
|
|
|
Basel III advanced
approaches risk-weighted assets (g)
|
|
|
|
$
|
319,960
|
|
|
|
|
|
Basel III Common
equity Tier 1 capital ratio
|
11.7
|
%
|
11.3
|
%
|
|
9.6
|
%
|
|
11.3
|
%
|
10.9
|
%
|
|
(a)
|
All ratios are
calculated using the regulatory capital methodology applicable to
PNC during each period presented.
|
(b)
|
The
September 30, 2020 and June 30, 2020 ratio is calculated
to reflect PNC's election to adopt the CECL optional five-year
transition provision.
|
(c)
|
The
September 30, 2020 and June 30, 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
September 30, 2020 and June 30, 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)
|
|
|
|
|
|
|
September
30
|
|
June 30
|
|
September
30
|
Dollars in
millions, except per share data
|
2020
|
|
2020
|
|
2019
|
Book value per common
share
|
$
|
117.44
|
|
|
$
|
115.26
|
|
|
$
|
103.37
|
|
Tangible book value
per common share
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
49,760
|
|
|
$
|
48,928
|
|
|
$
|
45,428
|
|
Goodwill and other
intangible assets
|
(9,396)
|
|
|
(9,410)
|
|
|
(9,459)
|
|
Deferred tax
liabilities on Goodwill and other intangible assets
|
187
|
|
|
188
|
|
|
191
|
|
Tangible common
shareholders' equity
|
$
|
40,551
|
|
|
$
|
39,706
|
|
|
$
|
36,160
|
|
Period-end common
shares outstanding (millions)
|
424
|
|
|
425
|
|
|
439
|
|
Tangible book value
per common share (Non-GAAP)
|
$
|
95.71
|
|
|
$
|
93.54
|
|
|
$
|
82.37
|
|
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.
- The impact of the upcoming U.S. elections on the regulatory
landscape, capital markets, and the response to and management 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 view that:
-
- The U.S. economy is in a nascent economic recovery in the
second half of 2020, following a very severe but very short
economic contraction in the first half of the year due to the
coronavirus (COVID-19) pandemic and public health measures to
contain it. Real GDP declined more than 10 percent unannualized in
the first and second quarters of 2020, as many firms closed, at
least temporarily, and consumers stayed at home. But since the late
spring/early summer economic activity has picked up due to
loosening restrictions on businesses, massive federal stimulus, and
extremely low interest rates. Between May and September the economy
has added back slightly more than one-half of the 22 million jobs
lost in March and April.
- Despite the improvement in the economy in recent months,
economic activity remains far below its pre-pandemic level and
unemployment remains elevated. Real GDP growth in the third quarter
will be extremely strong, between 25 and 30 percent at an annual
rate, but will slow in the fourth quarter and through 2021. PNC
does not expect real GDP to return to its pre-pandemic level until
late 2021, and does not expect employment to return to its
pre-pandemic level until 2023. Risks to this outlook are weighted
to the downside; they include a further resurgence in the spread of
the coronavirus and a lack of additional stimulus from the federal
government.
- Monetary policy remains extremely supportive of economic
growth. PNC expects the Federal Open Market Committee to keep the
fed funds rate in its current range of 0.00 to 0.25 percent through
at least mid-2024.
- Given the many unknowns and risks being heavily weighted to the
downside, 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 businesses and activities are not
further lifted or are reimposed, the recovery would be much weaker.
There is even the potential that the economy could fall back into
recession. PNC's baseline scenario assumes additional fiscal
stimulus; continued inaction on stimulus is another major downside
risk. The longer it takes to combat the pandemic the more permanent
damage it will cause to business and consumer fundamentals and
sentiment; this could make the recovery weaker and result in
permanently lower long-run economic growth. 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.
Cautionary Statement Regarding Forward-Looking
Information (Continued)
- 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
additional limitations on capital distributions through the fourth
quarter of 2020 by CCAR-participating bank holding companies and
may extend these limitations, potentially in modified form.
- 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 subsequent Form 10-Qs, 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 other 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
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SOURCE The PNC Financial Services Group, Inc.