PNC Announces Stress Capital Buffer And Planned Capital Actions

Rhea-AI Summary

PNC Financial Services Group (NYSE: PNC) announced its results from the 2021 Comprehensive Capital Analysis and Review (CCAR), revealing a Stress Capital Buffer (SCB) of 2.5% for the upcoming four-quarter period. PNC's Common Equity Tier 1 (CET1) ratio significantly exceeds the minimum regulatory requirement. The company plans to increase its quarterly cash dividend by 9% to $1.25 per share, pending board approval, and will reinstate share repurchase programs totaling up to $2.9 billion, starting in the third quarter of 2021.

Positive

• PNC's Stress Capital Buffer set at 2.5% meets regulatory minimums.
• Common Equity Tier 1 (CET1) ratio exceeds regulatory benchmarks.
• Dividend increase of 9% proposed to $1.25 per share.
• Plans to reinstate share repurchase programs up to $2.9 billion.

Negative

• None.

PITTSBURGH, June 28, 2021 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) last week received the results of the Federal Reserve's 2021 Comprehensive Capital Analysis and Review (CCAR). The results included the Federal Reserve's estimate of PNC's minimum capital ratios for the period from the first quarter of 2021, through the first quarter of 2023, under the Supervisory Severely Adverse Scenario. Based on its strong results, PNC's Stress Capital Buffer (SCB) for the four-quarter period beginning Oct. 1, 2021, applicable to PNC inclusive of the BBVA USA acquisition, is 2.5%, which is the regulatory floor and the minimum SCB amount. PNC's Common Equity Tier 1 (CET1) ratio significantly exceeds the regulatory minimum (4.5%) plus our SCB, reflecting our strong capital levels.

PNC plans to recommend to its board of directors an increase in the quarterly cash dividend on common stock of 10 cents per share, or 9%, to $1.25 per share in the third quarter of 2021, consistent with the capital plan approved by its board. PNC's board of directors is expected to consider this recommendation at its next scheduled meeting on July 1, 2021.

In addition, PNC plans to reinstate its share repurchase programs with repurchases of up to $2.9 billion for the four-quarter period beginning in the third quarter of 2021. PNC's common share repurchases may be executed in privately negotiated transactions or through the open market, including under Rule 10b5-1 plans. The timing and amount of executed repurchases will be based on market conditions and other factors, including the integration of BBVA USA. Common share repurchases will be made under the 100 million share repurchase program approved by PNC's board of directors in April 2019.

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.

CONTACTS                                                                                                                          

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.

FAQ

What is PNC's Stress Capital Buffer as of June 2021?

PNC's Stress Capital Buffer is set at 2.5% for the upcoming four-quarter period.

When will PNC consider increasing its quarterly cash dividend?

PNC's board of directors is expected to consider the dividend increase on July 1, 2021.

What is the proposed new dividend amount for PNC's common stock?

The proposed new dividend amount is $1.25 per share, reflecting a 9% increase.

How much is PNC planning to repurchase in its share repurchase program?

PNC plans to repurchase up to $2.9 billion in common shares.