PNC Reports Third Quarter 2024 Net Income of $1.5 Billion, $3.49 Diluted EPS
PNC Financial Services Group reported Q3 2024 net income of $1.5 billion and diluted EPS of $3.49. The company achieved 1% positive operating leverage, with revenue stable at $5.4 billion and noninterest expense down 1% to $3.3 billion. Net interest income (NII) grew 3% to $3.4 billion, while fee income increased 10% to $2.0 billion, driven by capital markets and advisory revenue. The net interest margin (NIM) increased by 4 basis points to 2.64%. Average loans remained stable at $319.6 billion, while average deposits rose 1% to $422.1 billion. The Common Equity Tier 1 (CET1) capital ratio improved to 10.3%. PNC also repurchased over $0.1 billion of common shares and declared a quarterly dividend of $1.60 per share. Net loan charge-offs increased to $286 million, and the allowance for credit losses remained stable at 1.65% of total loans. Despite a $69 million decrease in other noninterest income due to negative Visa derivative fair value adjustments, tangible book value per share increased by 9%.
Il Gruppo PNC Financial Services ha riportato un reddito netto per il terzo trimestre del 2024 di $1,5 miliardi e un utile per azione diluito di $3,49. L'azienda ha ottenuto un leverage operativo positivo dell'1%, con ricavi stabili a $5,4 miliardi e spese non relative agli interessi diminuite dell'1% a $3,3 miliardi. Il reddito netto da interessi (NII) è cresciuto del 3% a $3,4 miliardi, mentre il reddito da commissioni è aumentato del 10% a $2,0 miliardi, trainato dai ricavi dei mercati finanziari e dalla consulenza. Il margine di interesse netto (NIM) è aumentato di 4 punti base, raggiungendo il 2,64%. I prestiti medi sono rimasti stabili a $319,6 miliardi, mentre i depositi medi sono aumentati dell'1% a $422,1 miliardi. Il rapporto di capitale di classe 1 (CET1) è migliorato al 10,3%. PNC ha anche riacquistato oltre $0,1 miliardi di azioni ordinarie e ha dichiarato un dividendo trimestrale di $1,60 per azione. Le cancellazioni nette di prestiti sono aumentate a $286 milioni e l'accantonamento per perdite su crediti è rimasto stabile all'1,65% del totale dei prestiti. Nonostante una diminuzione di $69 milioni in altri ricavi non da interessi a causa di svalutazioni negative del fair value dei derivati Visa, il valore contabile tangibile per azione è aumentato del 9%.
El Grupo PNC Financial Services reportó un ingreso neto de $1.5 mil millones y un BPA diluido de $3.49 para el tercer trimestre de 2024. La empresa logró un apalancamiento operativo positivo del 1%, con ingresos estables en $5.4 mil millones y gastos no relacionados con intereses disminuyendo un 1% a $3.3 mil millones. Los ingresos netos por intereses (NII) crecieron un 3% a $3.4 mil millones, mientras que los ingresos por comisiones aumentaron un 10% a $2.0 mil millones, impulsados por los ingresos de mercados de capitales y asesoría. El margen de interés neto (NIM) aumentó en 4 puntos básicos al 2.64%. Los préstamos promedio se mantuvieron estables en $319.6 mil millones, mientras que los depósitos promedio aumentaron un 1% a $422.1 mil millones. El ratio de capital de Nivel 1 Común (CET1) mejoró al 10.3%. PNC también recompró más de $0.1 mil millones de acciones ordinarias y declaró un dividendo trimestral de $1.60 por acción. Las cancelaciones netas de préstamos aumentaron a $286 millones, y la provisión para pérdidas crediticias se mantuvo estable en el 1.65% del total de préstamos. A pesar de una disminución de $69 millones en otros ingresos no por intereses debido a ajustes negativos en el valor razonable de derivados Visa, el valor contable tangible por acción aumentó un 9%.
PNC 금융 서비스 그룹은 2024년 3분기 순이익이 15억 달러, 희석주당순이익이 3.49달러라고 보고했습니다. 회사는 1%의 긍정적인 운영 레버리지를 달성했으며, 수익은 54억 달러로 안정적이었고 비이자 비용은 1% 감소하여 33억 달러에 달했습니다. 순이자소득(NII)는 3% 증가하여 34억 달러에 달했고, 수수료 수익은 10% 증가하여 20억 달러에 달했습니다. 이는 자본 시장 및 자문 수익에 의해 주도되었습니다. 순이자 마진(NIM)은 4bp 증가하여 2.64%에 달했습니다. 평균 대출은 3,196억 달러로 안정적이었고 평균 예금은 1% 증가하여 4,221억 달러에 달했습니다. 일반주식자본비율(CET1)은 10.3%로 개선되었습니다. PNC는 또한 1억 달러 이상의 보통주를 재매입하였고 주당 1.60달러의 분기 배당금을 선언했습니다. 순 대출 상각은 2억 8,600만 달러로 증가했으며, 신용 손실을 위한 충당금은 총 대출의 1.65%로 안정적으로 유지되었습니다. 비자 파생상품의 공정가치 조정으로 인해 6,900만 달러의 감소가 있었음에도 불구하고, 주당 순자산 가치가 9% 증가했습니다.
Le Groupe PNC Financial Services a rapporté un revenu net de 1,5 milliard de dollars et un bénéfice par action dilué de 3,49 dollars pour le troisième trimestre de 2024. L'entreprise a réalisé un effet de levier opérationnel positif de 1 %, avec des revenus stables à 5,4 milliards de dollars et des charges non liées aux intérêts diminuant de 1 % à 3,3 milliards de dollars. Les revenus nets d'intérêts (NII) ont augmenté de 3 % pour atteindre 3,4 milliards de dollars, tandis que les revenus de commissions ont crû de 10 % à 2,0 milliards de dollars, soutenus par les revenus des marchés de capitaux et de conseil. La marge d'intérêt nette (NIM) a augmenté de 4 points de base pour atteindre 2,64 %. Les prêts moyens sont restés stables à 319,6 milliards de dollars, tandis que les dépôts moyens ont augmenté de 1 % à 422,1 milliards de dollars. Le ratio de capital de niveau 1 commun (CET1) s'est amélioré à 10,3 %. PNC a également racheté pour plus de 0,1 milliard de dollars d'actions ordinaires et a déclaré un dividende trimestriel de 1,60 dollar par action. Les annulations nettes de prêts ont augmenté à 286 millions de dollars, et la provision pour pertes sur créances est restée stable à 1,65 % du total des prêts. Malgré une baisse de 69 millions de dollars dans d'autres revenus non d'intérêts en raison d'ajustements de valeur juste négatifs des dérivés Visa, la valeur comptable tangible par action a augmenté de 9 %.
Die PNC Financial Services Group berichtete für das dritte Quartal 2024 über ein Nettoeinkommen von 1,5 Milliarden Dollar und einen verwässerten Gewinn pro Aktie von 3,49 Dollar. Das Unternehmen erzielte einen positiven operativen Leverage von 1%, bei stabilen Einnahmen von 5,4 Milliarden Dollar und einem Rückgang der Nichtzinsaufwendungen um 1% auf 3,3 Milliarden Dollar. Das Nettozinseinkommen (NII) wuchs um 3% auf 3,4 Milliarden Dollar, während gebührenbezogene Einnahmen um 10% auf 2,0 Milliarden Dollar stiegen, angetrieben durch Einnahmen aus dem Kapitalmarkt und Beratung. Die Nettozinsspanne (NIM) stieg um 4 Basispunkte auf 2,64%. Die durchschnittlichen Kredite blieben stabil bei 319,6 Milliarden Dollar, während die durchschnittlichen Einlagen um 1% auf 422,1 Milliarden Dollar stiegen. Die Kernkapitalquote (CET1) verbesserte sich auf 10,3%. PNC kaufte zudem über 0,1 Milliarden Dollar an Stammaktien zurück und erklärte eine vierteljährliche Dividende von 1,60 Dollar pro Aktie. Die Nettokreditabschreibungen stiegen auf 286 Millionen Dollar, und die Rückstellung für Kreditausfälle blieb stabil bei 1,65% der Gesamtkredite. Trotz eines Rückgangs von 69 Millionen Dollar bei den sonstigen Zinserträgen aufgrund negativer Bewertungen von Visa-Derivaten stieg der tangible Buchwert pro Aktie um 9%.
- Net income of $1.5 billion.
- Diluted EPS of $3.49.
- 1% positive operating leverage.
- NII grew 3% to $3.4 billion.
- Fee income increased 10% to $2.0 billion.
- NIM increased by 4 basis points to 2.64%.
- Average deposits increased 1% to $422.1 billion.
- CET1 capital ratio improved to 10.3%.
- Tangible book value per share increased by 9%.
- Net loan charge-offs increased to $286 million.
- Other noninterest income decreased by $263 million due to negative Visa derivative fair value adjustments.
Generated positive operating leverage; grew NII; substantially increased fee income and TBV
For the quarter | |||||||||||
In millions, except per share data and as noted | 3Q24 | 2Q24 | 3Q23 | Third Quarter Highlights | |||||||
Financial Results | Comparisons reflect 3Q24 vs. 2Q24 | ||||||||||
Net interest income (NII) | $ 3,410 | $ 3,302 | $ 3,418 | Income Statement ▪ Generated ▪ Revenue stable; noninterest expense • NII grew • Fee income increased • Other noninterest income of Balance Sheet ▪ Average loans were stable ▪ Average deposits and securities ▪ Net loan charge-offs were ▪ ACL to total loans stable at ▪ AOCI improved ▪ TBV per share increased ▪ Maintained strong capital position – CET1 capital ratio of – Repurchased more than
| |||||||
Fee income (non-GAAP) | 1,953 | 1,777 | 1,721 | ||||||||
Other noninterest income | 69 | 332 | 94 | ||||||||
Noninterest income | 2,022 | 2,109 | 1,815 | ||||||||
Revenue | 5,432 | 5,411 | 5,233 | ||||||||
Noninterest expense | 3,327 | 3,357 | 3,245 | ||||||||
Pretax, pre-provision earnings (PPNR) (non-GAAP) | 2,105 | 2,054 | 1,988 | ||||||||
Provision for credit losses | 243 | 235 | 129 | ||||||||
Net income | 1,505 | 1,477 | 1,570 | ||||||||
Per Common Share | |||||||||||
Diluted earnings per share (EPS) | $ 3.49 | $ 3.39 | $ 3.60 | ||||||||
Average diluted common shares outstanding | 400 | 400 | 400 | ||||||||
Book value | 124.56 | 116.70 | 105.98 | ||||||||
Tangible book value (TBV) (non-GAAP) | 96.98 | 89.12 | 78.16 | ||||||||
Balance Sheet & Credit Quality | |||||||||||
Average loans In billions | $ 319.6 | $ 319.9 | $ 319.5 | ||||||||
Average securities In billions | 142.3 | 141.3 | 139.7 | ||||||||
Average deposits In billions | 422.1 | 417.2 | 422.5 | ||||||||
Accumulated other comprehensive income (loss) (AOCI) In billions | (5.1) | (7.4) | (10.3) | ||||||||
Net loan charge-offs | 286 | 262 | 121 | ||||||||
Allowance for credit losses (ACL) to total loans | 1.65 % | 1.67 % | 1.70 % | ||||||||
Selected Ratios | |||||||||||
Return on average common shareholders' equity | 11.72 % | 12.16 % | 13.65 % | ||||||||
Return on average assets | 1.05 | 1.05 | 1.12 | ||||||||
Net interest margin (NIM) (non-GAAP) | 2.64 | 2.60 | 2.71 | ||||||||
Noninterest income to total revenue | 37 | 39 | 35 | ||||||||
Efficiency | 61 | 62 | 62 | ||||||||
Common equity Tier 1 (CET1) capital ratio | 10.3 | 10.2 | 9.8 | ||||||||
See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.
| |||||||||||
From Bill Demchak, PNC Chairman and Chief Executive Officer: | ||||||||||||
"Our results for the third quarter demonstrate PNC's continued strong momentum across the franchise. NII and NIM both increased, fee revenue grew substantially and expenses remained well controlled, resulting in positive operating leverage. Importantly, we increased TBV, grew customers and continued to strengthen our capital levels. We remain well positioned to capitalize on opportunities and achieve record NII in 2025." |
Income Statement Highlights
Third quarter 2024 compared with second quarter 2024
- Total revenue of
$5.4 billion $21 million $128 million - Net interest income of
$3.4 billion $108 million 3% , driven by higher yields on interest-earning assets.- Net interest margin of
2.64% increased 4 basis points.
- Net interest margin of
- Fee income of
$2.0 billion $176 million 10% , primarily due to higher capital markets and advisory activity and increased residential mortgage servicing rights valuation, net of economic hedge. - Other noninterest income of
$69 million $263 million $128 million $141 million
- Net interest income of
- Noninterest expense of
$3.3 billion $30 million 1% , as higher personnel costs were more than offset by a PNC Foundation contribution expense of$120 million - Provision for credit losses was
$243 million $235 million - The effective tax rate was
19.2% for the third quarter and18.8% for the second quarter.
Balance Sheet Highlights
Third quarter 2024 compared with second quarter 2024 or September 30, 2024 compared with June 30, 2024
- Average loans of
$319.6 billion $219.0 billion $100.6 billion - Credit quality performance:
- Delinquencies of
$1.3 billion - Total nonperforming loans of
$2.6 billion $0.1 billion - Net loan charge-offs of
$286 million $24 million - The allowance for credit losses of
$5.3 billion 1.65% at September 30, 2024 and1.67% at June 30, 2024.
- Delinquencies of
- Average investment securities of
$142.3 billion $1.0 billion 1% , primarily driven by net purchase activity ofU.S. Treasury securities. - Average Federal Reserve Bank balances of
$44.9 billion $4.2 billion 10% , reflecting deposit balance growth. - Average deposits of
$422.1 billion $4.9 billion 1% , due to growth in interest-bearing commercial deposits, partially offset by a decline in consumer deposits. Noninterest-bearing deposits as a percentage of total average deposits remained stable at23% . - Average borrowed funds of
$76.1 billion $1.4 billion 2% , reflecting lower Federal Home Loan Bank borrowings, partially offset by parent company senior debt issuances. - PNC maintained a strong capital and liquidity position:
- On October 3, 2024, the PNC board of directors declared a quarterly cash dividend on common stock of
$1.60 - PNC returned
$0.8 billion $0.6 billion $0.1 billion - The Basel III common equity Tier 1 capital ratio was an estimated
10.3% at September 30, 2024 and was10.2% at June 30, 2024. - PNC's average LCR for the three months ended September 30, 2024 was
109% , exceeding the regulatory minimum requirement throughout the quarter.
- On October 3, 2024, the PNC board of directors declared a quarterly cash dividend on common stock of
Earnings Summary | ||||||
In millions, except per share data | 3Q24 | 2Q24 | 3Q23 | |||
Net income | $ 1,505 | $ 1,477 | $ 1,570 | |||
Net income attributable to diluted common shareholders | $ 1,396 | $ 1,355 | $ 1,440 | |||
Diluted earnings per common share | $ 3.49 | $ 3.39 | $ 3.60 | |||
Average diluted common shares outstanding | 400 | 400 | 400 | |||
Cash dividends declared per common share | $ 1.60 | $ 1.55 | $ 1.55 | |||
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. Information in this news release, including the financial tables, is unaudited.
Second Quarter 2024 Significant Items
In the second quarter of 2024, PNC participated in the Visa exchange program, allowing PNC to monetize
CONSOLIDATED REVENUE REVIEW
Revenue | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In millions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Net interest income | $ 3,410 | $ 3,302 | $ 3,418 | 3 % | — | ||
Noninterest income | 2,022 | 2,109 | 1,815 | (4) % | 11 % | ||
Total revenue | $ 5,432 | $ 5,411 | $ 5,233 | — | 4 % | ||
Total revenue for the third quarter of 2024 increased
Net interest income of
Noninterest Income | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In millions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Asset management and brokerage | $ 383 | $ 364 | $ 348 | 5 % | 10 % | ||
Capital markets and advisory | 371 | 272 | 168 | 36 % | 121 % | ||
Card and cash management | 698 | 706 | 689 | (1) % | 1 % | ||
Lending and deposit services | 320 | 304 | 315 | 5 % | 2 % | ||
Residential and commercial mortgage | 181 | 131 | 201 | 38 % | (10) % | ||
Fee income (non-GAAP) | 1,953 | 1,777 | 1,721 | 10 % | 13 % | ||
Other | 69 | 332 | 94 | (79) % | (27) % | ||
Total noninterest income | $ 2,022 | $ 2,109 | $ 1,815 | (4) % | 11 % | ||
Noninterest income for the third quarter of 2024 decreased
Noninterest income for the third quarter of 2024 increased
CONSOLIDATED EXPENSE REVIEW
Noninterest Expense | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In millions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Personnel | $ 1,869 | $ 1,782 | $ 1,773 | 5 % | 5 % | ||
Occupancy | 234 | 236 | 244 | (1) % | (4) % | ||
Equipment | 357 | 356 | 347 | — | 3 % | ||
Marketing | 93 | 93 | 93 | — | — | ||
Other | 774 | 890 | 788 | (13) % | (2) % | ||
Total noninterest expense | $ 3,327 | $ 3,357 | $ 3,245 | (1) % | 3 % | ||
Noninterest expense for the third quarter of 2024 decreased
Noninterest expense for the third quarter of 2024 increased
The effective tax rate was
CONSOLIDATED BALANCE SHEET REVIEW
Average total assets of
Average Loans | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In billions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Commercial | $ 219.0 | $ 219.1 | $ 217.7 | — | 1 % | ||
Consumer | 100.6 | 100.8 | 101.8 | — | (1) % | ||
Total | $ 319.6 | $ 319.9 | $ 319.5 | — | — | ||
Average loans for the third quarter of 2024 were stable compared to the second quarter of 2024 and third quarter of 2023. In comparison to the third quarter of 2023, average commercial loans increased
Average Investment Securities | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In billions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Available for sale | $ 56.2 | $ 53.4 | $ 46.5 | 5 % | 21 % | ||
Held to maturity | 86.1 | 87.9 | 93.2 | (2) % | (8) % | ||
Total | $ 142.3 | $ 141.3 | $ 139.7 | 1 % | 2 % | ||
Average investment securities of
Net unrealized losses on available-for-sale securities were
Average Federal Reserve Bank balances for the third quarter of 2024 were
Average Deposits | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In billions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Commercial | $ 206.1 | $ 199.7 | $ 204.7 | 3 % | 1 % | ||
Consumer | 216.0 | 217.5 | 217.8 | (1) % | (1) % | ||
Total | $ 422.1 | $ 417.2 | $ 422.5 | 1 % | — | ||
IB % of total avg. deposits | 77 % | 77 % | 74 % | ||||
NIB % of total avg. deposits | 23 % | 23 % | 26 % | ||||
IB - Interest-bearing NIB - Noninterest-bearing | |||||||
Average deposits for the third quarter of 2024 of
Noninterest-bearing deposits as a percentage of total average deposits were
Average Borrowed Funds | Change | Change | |||||
3Q24 vs | 3Q24 vs | ||||||
In billions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||
Total | $ 76.1 | $ 77.5 | $ 67.5 | (2) % | 13 % | ||
Avg. borrowed funds to avg. liabilities | 15 % | 15 % | 13 % | ||||
Average borrowed funds of
Capital | September 30, | June 30, 2024 | September 30, | ||
Common shareholders' equity In billions | $ 49.4 | $ 46.4 | $ 42.2 | ||
Accumulated other comprehensive income (loss) In billions | $ (5.1) | $ (7.4) | $ (10.3) | ||
Basel III common equity Tier 1 capital ratio * | 10.3 % | 10.2 % | 9.8 % | ||
Basel III common equity Tier 1 fully implemented capital ratio (estimated) | 10.3 % | 10.1 % | 9.7 % | ||
*September 30, 2024 ratio is estimated | |||||
PNC maintained a strong capital position. Common shareholders' equity at September 30, 2024 increased
As a Category III institution, PNC has elected to exclude accumulated other comprehensive income related to both available-for-sale securities and pension and other post-retirement plans from CET1 capital. Accumulated other comprehensive income of negative
In the third quarter of 2024, PNC returned
Fourth quarter 2024 share repurchase activity is expected to approximate recent quarterly average share repurchase levels. PNC may adjust share repurchase activity depending on market and economic conditions, as well as other factors.
PNC's SCB for the four-quarter period beginning October 1, 2024 is the regulatory minimum of
On October 3, 2024, the PNC board of directors declared a quarterly cash dividend on common stock of
At September 30, 2024, PNC was considered "well capitalized" based on applicable
CREDIT QUALITY REVIEW
Credit Quality | Change | Change | |||
September 30, | June 30, 2024 | September 30, | 09/30/24 vs | 09/30/24 vs | |
In millions | 06/30/24 | 09/30/23 | |||
Provision for credit losses (a) | $ 243 | $ 235 | $ 129 | $ 8 | $ 114 |
Net loan charge-offs (a) | $ 286 | $ 262 | $ 121 | 9 % | 136 % |
Allowance for credit losses (b) | $ 5,314 | $ 5,353 | $ 5,407 | (1) % | (2) % |
Total delinquencies (c) | $ 1,275 | $ 1,272 | $ 1,287 | — | (1) % |
Nonperforming loans | $ 2,578 | $ 2,503 | $ 2,123 | 3 % | 21 % |
Net charge-offs to average loans (annualized) | 0.36 % | 0.33 % | 0.15 % | ||
Allowance for credit losses to total loans | 1.65 % | 1.67 % | 1.70 % | ||
Nonperforming loans to total loans | 0.80 % | 0.78 % | 0.67 % | ||
(a) Represents amounts for the three months ended for each respective period (b) Excludes allowances for investment securities and other financial assets (c) Total delinquencies represent accruing loans more than 30 days past due | |||||
Provision for credit losses was
Net loan charge-offs were
The allowance for credit losses was
Delinquencies at September 30, 2024 were
Nonperforming loans at September 30, 2024 were
BUSINESS SEGMENT RESULTS
Business Segment Income (Loss) | |||||
In millions | 3Q24 | 2Q24 | 3Q23 | ||
Retail Banking | $ 1,164 | $ 1,715 | $ 1,094 | ||
Corporate & Institutional Banking | 1,197 | 1,046 | 960 | ||
Asset Management Group | 104 | 103 | 73 | ||
Other | (975) | (1,405) | (573) | ||
Net income excluding noncontrolling interests | $ 1,490 | $ 1,459 | $ 1,554 | ||
Retail Banking | Change | Change | |||||||
3Q24 vs | 3Q24 vs | ||||||||
In millions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||||
Net interest income | $ 2,783 | $ 2,709 | $ 2,576 | $ 74 | $ 207 | ||||
Noninterest income | $ 701 | $ 1,409 | $ 784 | $ (708) | $ (83) | ||||
Noninterest expense | $ 1,842 | $ 1,841 | $ 1,876 | $ 1 | $ (34) | ||||
Provision for credit losses | $ 111 | $ 27 | $ 42 | $ 84 | $ 69 | ||||
Earnings | $ 1,164 | $ 1,715 | $ 1,094 | $ (551) | $ 70 | ||||
In billions | |||||||||
Average loans | $ 96.3 | $ 96.5 | $ 97.4 | $ (0.2) | $ (1.1) | ||||
Average deposits | $ 249.2 | $ 249.7 | $ 253.7 | $ (0.5) | $ (4.5) | ||||
Net loan charge-offs In millions | $ 141 | $ 138 | $ 114 | $ 3 | $ 27 | ||||
Retail Banking Highlights
Third quarter 2024 compared with second quarter 2024
- Earnings decreased
32% , primarily driven by lower noninterest income as well as a higher provision for credit losses, partially offset by higher net interest income.- Noninterest income decreased
50% , primarily reflecting impacts from the Visa exchange program that occurred in the second quarter of 2024. - Noninterest expense was stable.
- Provision for credit losses of
$111 million
- Noninterest income decreased
- Average loans and deposits were stable.
Third quarter 2024 compared with third quarter 2023
- Earnings increased
6% , due to higher net interest income and lower noninterest expense, partially offset by lower noninterest income and a higher provision for credit losses.- Noninterest income decreased
11% , primarily reflecting the impact of negative Visa derivative fair value adjustments. The third quarter of 2024 included negative Visa derivative fair value adjustments of$128 million $51 million - Noninterest expense decreased
2% , reflecting a continued focus on expense management, partially offset by higher technology investment.
- Noninterest income decreased
- Average loans decreased
1% , primarily due to lower residential mortgage loans. - Average deposits decreased
2% , and included the impact of customer spend outpacing savings.
Corporate & Institutional Banking | Change | Change | |||||||
3Q24 vs | 3Q24 vs | ||||||||
In millions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||||
Net interest income | $ 1,615 | $ 1,560 | $ 1,419 | $ 55 | $ 196 | ||||
Noninterest income | $ 1,030 | $ 942 | $ 835 | $ 88 | $ 195 | ||||
Noninterest expense | $ 950 | $ 911 | $ 895 | $ 39 | $ 55 | ||||
Provision for credit losses | $ 134 | $ 228 | $ 102 | $ (94) | $ 32 | ||||
Earnings | $ 1,197 | $ 1,046 | $ 960 | $ 151 | $ 237 | ||||
In billions | |||||||||
Average loans | $ 204.0 | $ 204.0 | $ 202.8 | — | $ 1.2 | ||||
Average deposits | $ 146.0 | $ 139.9 | $ 141.7 | $ 6.1 | $ 4.3 | ||||
Net loan charge-offs In millions | $ 147 | $ 129 | $ 12 | $ 18 | $ 135 | ||||
Corporate & Institutional Banking Highlights
Third quarter 2024 compared with second quarter 2024
- Earnings increased
14% , driven by a lower provision for credit losses as well as higher noninterest and net interest income, partially offset by higher noninterest expense.- Noninterest income increased
9% , and included higher merger and acquisition advisory activity, increased asset backed financing revenue and higher underwriting fees. - Noninterest expense increased
4% , primarily due to higher variable compensation associated with increased business activity. - Provision for credit losses of
$134 million
- Noninterest income increased
- Average loans were stable.
- Average deposits increased
4% , driven by growth in interest-bearing deposits.
Third quarter 2024 compared with third quarter 2023
- Earnings increased
25% , driven by higher net interest and noninterest income, partially offset by higher noninterest expense.- Noninterest income increased
23% , primarily due to higher capital markets & advisory revenue and growth in treasury management product revenue. - Noninterest expense increased
6% , reflecting higher variable compensation associated with increased business activity.
- Noninterest income increased
- Average loans increased
1% , as a result of growth in PNC's corporate banking business. - Average deposits increased
3% , due to growth in interest-bearing deposits.
Asset Management Group | Change | Change | |||||||
3Q24 vs | 3Q24 vs | ||||||||
In millions | 3Q24 | 2Q24 | 3Q23 | 2Q24 | 3Q23 | ||||
Net interest income | $ 161 | $ 163 | $ 139 | $ (2) | $ 22 | ||||
Noninterest income | $ 242 | $ 235 | $ 223 | $ 7 | $ 19 | ||||
Noninterest expense | $ 270 | $ 261 | $ 271 | $ 9 | $ (1) | ||||
Provision for (recapture of) credit losses | $ (2) | $ 2 | $ (4) | $ (4) | $ 2 | ||||
Earnings | $ 104 | $ 103 | $ 73 | $ 1 | $ 31 | ||||
In billions | |||||||||
Discretionary client assets under management | $ 214 | $ 196 | $ 176 | $ 18 | $ 38 | ||||
Nondiscretionary client assets under administration | $ 216 | $ 208 | $ 170 | $ 8 | $ 46 | ||||
Client assets under administration at quarter end | $ 430 | $ 404 | $ 346 | $ 26 | $ 84 | ||||
In billions | |||||||||
Average loans | $ 16.5 | $ 16.6 | $ 15.7 | $ (0.1) | $ 0.8 | ||||
Average deposits | $ 27.2 | $ 27.9 | $ 27.2 | $ (0.7) | — | ||||
Net loan charge-offs (recoveries) In millions | — | — | — | — | — | ||||
Asset Management Group Highlights
Third quarter 2024 compared with second quarter 2024
- Earnings increased
1% , primarily reflecting higher noninterest income and a provision recapture, partially offset by higher noninterest expense.- Noninterest income increased
3% , driven by higher average equity and fixed income markets. - Noninterest expense increased
3% , primarily due to higher variable compensation associated with increased business activity.
- Noninterest income increased
- Discretionary client assets under management increased
9% , and included higher spot equity and fixed income markets as well as net asset inflows. - Average loans decreased
1% , primarily due to paydowns outpacing originations. - Average deposits decreased
3% , driven by lower interest-bearing deposits.
Third quarter 2024 compared with third quarter 2023
- Earnings increased
42% , primarily due to higher net interest and noninterest income.- Noninterest income increased
9% , reflecting higher average equity markets. - Noninterest expense was stable.
- Noninterest income increased
- Discretionary client assets under management increased
22% , and included higher spot equity and fixed income markets. - Average loans increased
5% , primarily driven by growth in residential mortgage loans. - Average deposits were stable.
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, ACL for investment securities, certain trading activities, certain runoff consumer loan portfolios, private equity investments, intercompany eliminations, corporate overhead net of allocations, tax adjustments that are not allocated to business segments, exited businesses and the residual impact from funds transfer pricing operations.
CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION
PNC Chairman and Chief Executive Officer William S. Demchak and Executive Vice President and Chief Financial Officer Robert Q.
The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in
CONTACTS | ||
MEDIA: | INVESTORS: | |
Kristen Pillitteri | Bryan Gill | |
(412) 762-4550 | (412) 768-4143 | |
[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 | |||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||
Revenue | ||||||||||||
Net interest income | $ 3,410 | $ 3,302 | $ 3,418 | $ 9,976 | $ 10,513 | |||||||
Noninterest income | 2,022 | 2,109 | 1,815 | 6,012 | 5,616 | |||||||
Total revenue | 5,432 | 5,411 | 5,233 | 15,988 | 16,129 | |||||||
Provision for credit losses | 243 | 235 | 129 | 633 | 510 | |||||||
Noninterest expense | 3,327 | 3,357 | 3,245 | 10,018 | 9,938 | |||||||
Income before income taxes and noncontrolling interests | $ 1,862 | $ 1,819 | $ 1,859 | $ 5,337 | $ 5,681 | |||||||
Income taxes | 357 | 342 | 289 | 1,011 | 917 | |||||||
Net income | $ 1,505 | $ 1,477 | $ 1,570 | $ 4,326 | $ 4,764 | |||||||
Less: | ||||||||||||
Net income attributable to noncontrolling interests | 15 | 18 | 16 | 47 | 50 | |||||||
Preferred stock dividends (a) | 82 | 95 | 104 | 258 | 299 | |||||||
Preferred stock discount accretion and redemptions | 2 | 2 | 2 | 6 | 6 | |||||||
Net income attributable to common shareholders | $ 1,406 | $ 1,362 | $ 1,448 | $ 4,015 | $ 4,409 | |||||||
Less: Dividends and undistributed earnings allocated to | 10 | 7 | 8 | 24 | 23 | |||||||
Net income attributable to diluted common shareholders | $ 1,396 | $ 1,355 | $ 1,440 | $ 3,991 | $ 4,386 | |||||||
Per Common Share | ||||||||||||
Basic | $ 3.50 | $ 3.39 | $ 3.60 | $ 9.99 | $ 10.95 | |||||||
Diluted | $ 3.49 | $ 3.39 | $ 3.60 | $ 9.98 | $ 10.94 | |||||||
Cash dividends declared per common share | $ 1.60 | $ 1.55 | $ 1.55 | $ 4.70 | $ 4.55 | |||||||
Effective tax rate (b) | 19.2 % | 18.8 % | 15.5 % | 18.9 % | 16.1 % | |||||||
PERFORMANCE RATIOS | ||||||||||||
Net interest margin (c) | 2.64 % | 2.60 % | 2.71 % | 2.60 % | 2.78 % | |||||||
Noninterest income to total revenue | 37 % | 39 % | 35 % | 38 % | 35 % | |||||||
Efficiency (d) | 61 % | 62 % | 62 % | 63 % | 62 % | |||||||
Return on: | ||||||||||||
Average common shareholders' equity | 11.72 % | 12.16 % | 13.65 % | 11.76 % | 14.23 % | |||||||
Average assets | 1.05 % | 1.05 % | 1.12 % | 1.02 % | 1.14 % | |||||||
(a) | Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually. |
(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. |
(c) | 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, 2024, June 30, 2024 and September 30, 2023 were |
(d) | Calculated as noninterest expense divided by total revenue. |
The PNC Financial Services Group, Inc. | Consolidated Financial Highlights (Unaudited) | ||||
September 30 | June 30 | September 30 | |||
2024 | 2024 | 2023 | |||
BALANCE SHEET DATA | |||||
Dollars in millions, except per share data and as noted | |||||
Assets | $ 564,881 | $ 556,519 | $ 557,334 | ||
Loans (a) | $ 321,381 | $ 321,429 | $ 318,416 | ||
Allowance for loan and lease losses | $ 4,589 | $ 4,636 | $ 4,767 | ||
Interest-earning deposits with banks | $ 35,024 | $ 33,039 | $ 41,484 | ||
Investment securities | $ 144,183 | $ 138,645 | $ 132,387 | ||
Total deposits | $ 423,966 | $ 416,391 | $ 423,609 | ||
Borrowed funds (a) | $ 68,069 | $ 71,391 | $ 66,167 | ||
Allowance for unfunded lending related commitments | $ 725 | $ 717 | $ 640 | ||
Total shareholders' equity | $ 55,689 | $ 52,642 | $ 49,454 | ||
Common shareholders' equity | $ 49,442 | $ 46,397 | $ 42,215 | ||
Accumulated other comprehensive income (loss) | $ (5,090) | $ (7,446) | $ (10,261) | ||
Book value per common share | $ 124.56 | $ 116.70 | $ 105.98 | ||
Tangible book value per common share (non-GAAP) (b) | $ 96.98 | $ 89.12 | $ 78.16 | ||
Period end common shares outstanding (In millions) | 397 | 398 | 398 | ||
Loans to deposits | 76 % | 77 % | 75 % | ||
Common shareholders' equity to total assets | 8.8 % | 8.3 % | 7.6 % | ||
CLIENT ASSETS (In billions) | |||||
Discretionary client assets under management | $ 214 | $ 196 | $ 176 | ||
Nondiscretionary client assets under administration | 216 | 208 | 170 | ||
Total client assets under administration | 430 | 404 | 346 | ||
Brokerage account client assets | 86 | 83 | 78 | ||
Total client assets | $ 516 | $ 487 | $ 424 | ||
CAPITAL RATIOS | |||||
Basel III (c) (d) | |||||
Common equity Tier 1 | 10.3 % | 10.2 % | 9.8 % | ||
Common equity Tier 1 fully implemented (e) | 10.3 % | 10.1 % | 9.7 % | ||
Tier 1 risk-based | 11.8 % | 11.6 % | 11.5 % | ||
Total capital risk-based | 13.6 % | 13.5 % | 13.4 % | ||
Leverage | 8.9 % | 8.8 % | 8.9 % | ||
Supplementary leverage | 7.4 % | 7.4 % | 7.6 % | ||
ASSET QUALITY | |||||
Nonperforming loans to total loans | 0.80 % | 0.78 % | 0.67 % | ||
Nonperforming assets to total loans, OREO and foreclosed assets | 0.81 % | 0.79 % | 0.68 % | ||
Nonperforming assets to total assets | 0.46 % | 0.46 % | 0.39 % | ||
Net charge-offs to average loans (for the three months ended) (annualized) | 0.36 % | 0.33 % | 0.15 % | ||
Allowance for loan and lease losses to total loans | 1.43 % | 1.44 % | 1.50 % | ||
Allowance for credit losses to total loans (f) | 1.65 % | 1.67 % | 1.70 % | ||
Allowance for loan and lease losses to nonperforming loans | 178 % | 185 % | 225 % | ||
Total delinquencies (In millions) (g) | $ 1,275 | $ 1,272 | $ 1,287 | ||
(a) | Amounts include assets and liabilities for which we have elected the fair value option. Our second quarter 2024 Form 10-Q included, and our third quarter 2024 Form 10-Q will include, additional information regarding these Consolidated Balance Sheet line items. |
(b) | See the Tangible Book Value per Common Share table on page 16 for additional information. |
(c) | 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 15 for additional information. The ratios as of September 30, 2024 are estimated. |
(d) | The ratios are calculated to reflect PNC's election to adopt the CECL optional five-year transition provision. |
(e) | The estimated fully implemented ratios are calculated to reflect the full impact of CECL and exclude the benefits of the five-year transition provision. |
(f) | Excludes allowances for investment securities and other financial assets. |
(g) | Total delinquencies represent accruing loans more than 30 days past due. |
The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited) |
CAPITAL RATIOS
PNC's regulatory risk-based capital ratios in 2024 are 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.
PNC elected a five-year transition provision effective March 31, 2020 to delay until December 31, 2021 the full impact of the CECL standard on regulatory capital, followed by a three-year transition period. Effective for the first quarter 2022, PNC is now in the three-year transition period, and the full impact of the CECL standard is being phased-in to regulatory capital through December 31, 2024. See the table below for the June 30, 2024, September 30, 2023 and estimated September 30, 2024 ratios. For the full impact of PNC's adoption of CECL, which excludes the benefits of the five-year transition provision, see the September 30, 2024 and June 30, 2024 (Fully Implemented) estimates presented in the table below.
Our Basel III capital ratios may be impacted by changes to the regulatory capital rules and additional regulatory guidance or analysis.
Basel III | |||||||
September 30 2024 (estimated) (b) | June 30 2024 (b) | September 30 2023 (b) | September 30, 2024 (estimated) (c) | June 30, 2024 (estimated) (c) | |||
Dollars in millions | |||||||
Common stock, related surplus and retained earnings, | $ 54,774 | $ 54,084 | $ 52,958 | $ 54,532 | $ 53,843 | ||
Less regulatory capital adjustments: | |||||||
Goodwill and disallowed intangibles, net of deferred | (10,949) | (10,965) | (11,083) | (10,949) | (10,965) | ||
All other adjustments | (84) | (102) | (99) | (85) | (104) | ||
Basel III Common equity Tier 1 capital | $ 43,741 | $ 43,017 | $ 41,776 | $ 43,498 | $ 42,774 | ||
Basel III standardized approach risk-weighted assets (d) | $ 422,844 | $ 423,503 | $ 425,131 | $ 422,935 | $ 423,593 | ||
Basel III Common equity Tier 1 capital ratio | 10.3 % | 10.2 % | 9.8 % | 10.3 % | 10.1 % | ||
(a) | All ratios are calculated using the regulatory capital methodology applicable to PNC during each period presented. |
(b) | The ratios are calculated to reflect PNC's election to adopt the CECL optional five-year transition provisions. |
(c) | The September 30, 2024 and June 30, 2024 ratios are calculated to reflect the full impact of CECL and exclude the benefits of the five-year transition provisions. |
(d) | Basel III standardized approach risk-weighted assets are based on the Basel III standardized approach rules and include credit and market risk-weighted assets. |
The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited) |
NON-GAAP MEASURES
Fee Income (non-GAAP) | Three months ended | ||||
September 30 | June 30 | September 30 | |||
Dollars in millions | 2024 | 2024 | 2023 | ||
Noninterest income | |||||
Asset management and brokerage | $ 383 | $ 364 | $ 348 | ||
Capital markets and advisory | 371 | 272 | 168 | ||
Card and cash management | 698 | 706 | 689 | ||
Lending and deposit services | 320 | 304 | 315 | ||
Residential and commercial mortgage | 181 | 131 | 201 | ||
Fee income (non-GAAP) | $ 1,953 | $ 1,777 | $ 1,721 | ||
Other income | 69 | 332 | 94 | ||
Total noninterest income | $ 2,022 | $ 2,109 | $ 1,815 | ||
Fee income is a non-GAAP measure and is comprised of noninterest income in the following categories: asset management and brokerage, capital markets and advisory, card and cash management, lending and deposit services, and residential and commercial mortgage. We believe this non-GAAP measure serves as a useful tool for comparison of noninterest income related to fees.
Pretax Pre-Provision Earnings (non-GAAP) | Three months ended | ||||
September 30 | June 30 | September 30 | |||
Dollars in millions | 2024 | 2024 | 2023 | ||
Income before income taxes and noncontrolling interests | $ 1,862 | $ 1,819 | $ 1,859 | ||
Provision for credit losses | 243 | 235 | 129 | ||
Pretax pre-provision earnings (non-GAAP) | $ 2,105 | $ 2,054 | $ 1,988 | ||
Pretax pre-provision earnings is a non-GAAP measure and is based on adjusting income before income taxes and noncontrolling interests to exclude provision for credit losses. We believe that pretax, pre-provision earnings is a useful tool to help evaluate the ability to provide for credit costs through operations and provides an additional basis to compare results between periods by isolating the impact of provision for credit losses, which can vary significantly between periods.
Tangible Book Value per Common Share (non-GAAP) | |||||
September 30 | June 30 | September 30 | |||
Dollars in millions, except per share data | 2024 | 2024 | 2023 | ||
Book value per common share | $ 124.56 | $ 116.70 | $ 105.98 | ||
Tangible book value per common share | |||||
Common shareholders' equity | $ 49,442 | $ 46,397 | $ 42,215 | ||
Goodwill and other intangible assets | (11,188) | (11,206) | (11,337) | ||
Deferred tax liabilities on goodwill and other intangible assets | 240 | 241 | 254 | ||
Tangible common shareholders' equity | $ 38,494 | $ 35,432 | $ 31,132 | ||
Period-end common shares outstanding (In millions) | 397 | 398 | 398 | ||
Tangible book value per common share (non-GAAP) | $ 96.98 | $ 89.12 | $ 78.16 |
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.
The PNC Financial Services Group, Inc. Consolidated Financial Highlights (Unaudited) |
Taxable-Equivalent Net Interest Income (non-GAAP) | Three months ended | ||||
September 30 | June 30 | September 30 | |||
Dollars in millions | 2024 | 2024 | 2023 | ||
Net interest income | $ 3,410 | $ 3,302 | $ 3,418 | ||
Taxable-equivalent adjustments | 33 | 34 | 36 | ||
Net interest income (Fully Taxable-Equivalent - FTE) (non-GAAP) | $ 3,443 | $ 3,336 | $ 3,454 | ||
The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest income, we use interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP. Taxable-equivalent net interest income is only used for calculating net interest margin. Net interest income shown elsewhere in this presentation is GAAP net interest income.
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 financial performance, such as earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting us and our future business and operations, including our sustainability strategy, 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 any obligation 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:
- 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, market interest rates and inflation, - 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 sanctions, tariffs and other trade policies of the
U.S. and its global trading partners, - Impacts of changes in federal, state and local governmental policy, including on the regulatory landscape, capital markets, taxes, infrastructure spending and social programs,
- Our ability to attract, recruit and retain skilled employees, and
- 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:
- Job and income gains will continue to support consumer spending growth in the near term, but PNC's baseline forecast is for slower economic growth at the end of 2024 and in the first half of 2025 as high interest rates remain a drag on the economy.
- Real GDP growth this year and next will be close to trend at around
2% , and the unemployment rate will remain somewhat above4% through the rest of 2024 and in 2025. Inflation will continue to slow as wage pressures abate, gradually moving back to the Federal Reserve's2% long-term objective. - With slowing inflation PNC expects two additional federal funds rate cuts of 25 basis points each at the Federal Open Market Committee's remaining meetings in 2024, with the rate ending this year in a range between
4.25% and4.50% . PNC expects multiple federal funds rate cuts in 2025 as inflation continues to ease.
- PNC's ability to take certain capital actions, including returning capital to shareholders, is subject to PNC meeting or exceeding minimum capital levels, including 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.
- PNC's regulatory capital ratios in the future will depend on, among other things, PNC'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 and the reliability of and risks resulting from extensive use of such models.
Cautionary Statement Regarding Forward-Looking Information (Continued)
- Legal and regulatory developments could have an impact on our ability to operate our businesses, financial condition, results of operations, competitive position, reputation, or pursuit of attractive acquisition opportunities. Reputational impacts could affect matters such as business generation and retention, liquidity, funding, and ability to attract and retain employees. These developments could include:
- Changes to laws and regulations, including changes affecting oversight of the financial services industry, changes in the enforcement and interpretation of such laws and regulations, and changes in accounting and reporting standards.
- Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental investigations or other inquiries resulting in monetary losses, costs, or alterations in our business practices, and potentially causing reputational harm to PNC.
- Results of the regulatory examination and supervision process, including our failure to satisfy requirements of agreements with governmental agencies.
- 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.
- Our reputation and business and operating results may be affected by our ability to appropriately meet or address environmental, social or governance targets, goals, commitments or concerns that may arise.
- 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, the integration of the acquired businesses into PNC after closing or any failure to execute strategic or operational plans.
- 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 manmade, natural and other disasters (including severe weather events), health emergencies, dislocations, geopolitical instabilities or events, terrorist activities, system failures or disruptions, security breaches, cyberattacks, international hostilities, or other extraordinary events beyond PNC's control through impacts on the economy and financial markets generally or on us or our counterparties, customers or third-party vendors and service providers specifically.
We provide greater detail regarding these as well as other factors in our 2023 Form 10-K and in our 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. 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/pnc-reports-third-quarter-2024-net-income-of-1-5-billion-3-49-diluted-eps-302276282.html
SOURCE The PNC Financial Services Group, Inc.
FAQ
What was PNC's net income for Q3 2024?
What was PNC's diluted EPS for Q3 2024?
How much did PNC's net interest income grow in Q3 2024?
What was PNC's fee income growth in Q3 2024?
What was PNC's net interest margin in Q3 2024?
What is PNC's CET1 capital ratio as of Q3 2024?
How much did PNC repurchase in common shares in Q3 2024?
What was the amount of PNC's net loan charge-offs in Q3 2024?
Why did PNC's other noninterest income decrease in Q3 2024?
