Positive Financial Results for PNC Financial Services Group, Inc. in Third Quarter of 2024

Generated positive operating leverage; grew NII; substantially increased fee income and TBV

PITTSBURGH, Oct. 15, 2024 /PRNewswire/ — The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

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 1% positive operating leverage ▪ Revenue stable; noninterest expense decreased 1%; PPNR increased 2% • NII grew 3%; NIM increased 4 bps • Fee income increased 10%, and included strong capital markets and advisory revenue • Other noninterest income of $69 million included negative Visa derivative fair value adjustments of $128 million; 2Q24 included the benefit of $141 million of significant items Balance Sheet ▪ Average loans were stable ▪ Average deposits and securities increased 1% ▪ Net loan charge-offs were $286 million, or 0.36% annualized to average loans ▪ ACL to total loans stable at 1.7% ▪ AOCI improved $2.4 billion or 32% ▪ TBV per share increased 9% ▪ Maintained strong capital position – CET1 capital ratio of 10.3% – Repurchased more than $0.1 billion of common shares 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.

Analysis of PNC’s Financial Results

The financial results of PNC Financial Services Group, Inc. in the third quarter of 2024 show positive growth and performance in various key areas. The company reported a 1% positive operating leverage, indicating efficiency and effectiveness in managing its operations. Net interest income (NII) grew by 3%, with net interest margin (NIM) increasing by 4 basis points. Additionally, fee income saw a significant increase of 10%, driven by strong performance in capital markets and advisory services.

On the balance sheet side, PNC maintained a stable position with average loans and deposits, while also improving its accumulated other comprehensive income (AOCI) by $2.4 billion, representing a 32% increase. Tangible book value (TBV) per share increased by 9%, reflecting the company’s ability to create value for its shareholders.

Impact on Individuals

Individuals who are shareholders of PNC Financial Services Group, Inc. may benefit from the positive financial results reported in the third quarter of 2024. The increase in net interest income, fee income, and tangible book value per share indicates a strong financial performance which could potentially lead to higher returns for investors. Additionally, the company’s maintained strong capital position and share repurchases may instill confidence in shareholders about the company’s stability and future growth prospects.

Global Implications

The positive financial results of PNC Financial Services Group, Inc. in the third quarter of 2024 are not only significant for the company itself but also have broader implications on the global financial market. The growth in net interest income, fee income, and tangible book value reflects a healthy and robust financial sector, which can contribute to overall market stability and investor confidence. As PNC maintains a strong capital position and continues to repurchase shares, it demonstrates resilience and growth potential in the face of economic challenges.

Conclusion

In conclusion, the third-quarter financial results of PNC Financial Services Group, Inc. showcase a positive trend of growth and performance across various key financial indicators. The company’s ability to generate positive operating leverage, increase net interest income, and substantially boost fee income and tangible book value per share highlights its strong position in the market. These results not only benefit individual shareholders but also have broader implications for the global financial landscape, signaling stability and growth in the industry.