Generated positive operating leverage; grew NII and NIM; maintained 2.5% SCB requirementIncreased quarterly common stock dividend 5 cents to $1.60 per share on July 2, 2024

PITTSBURGH, July 16, 2024 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

For the quarter

In millions, except per share data and as noted

2Q24

1Q24

2Q23

Second Quarter Highlights

Financial Results

Comparisons reflect 2Q24 vs. 1Q24

Net interest income (NII)

$    3,302

$    3,264

$    3,510

Income Statement

Noninterest income

2,109

1,881

1,783

▪   Generated positive operating leverage; PPNR increased 13%

Revenue

5,411

5,145

5,293

Noninterest expense

3,357

3,334

3,372

▪   Revenue increased 5%

Pretax, pre-provision earnings (PPNR) (non-GAAP)

2,054

1,811

1,921

–  NII and NIM increased

Provision for credit losses

235

155

146

▪   Noninterest expense increased 1%

Net income

1,477

1,344

1,500

▪   Gain on Visa share exchange of$754 million substantially offset by other significant items, resulting in a 9 cent benefit to EPS

Per Common Share

Diluted earnings per share (EPS)

$      3.39

$      3.10

$      3.36

Balance Sheet

Average diluted common shares outstanding

400

400

401

▪   Average loans and deposits were relatively stable

Book value

116.70

113.30

105.67

Tangible book value (TBV) (non-GAAP)

89.12

85.70

77.80

▪   Average securities increased 4%

▪   Net loan charge-offs were $262 million, or 0.33% annualized to average loans

Balance Sheet & Credit Quality

Average loans    In billions

$    319.9

$    320.6

$    324.5

▪   ACL to total loans stable at 1.7%

Average securities    In billions

141.3

135.4

141.0

▪   AOCI improved $0.6 billion, including securities repositioning impact

Average deposits    In billions

417.2

420.2

425.7

Accumulated other comprehensive income (loss) (AOCI)

In billions

(7.4)

(8.0)

(9.5)

▪   TBV per share increased 4%

Net loan charge-offs

262

243

194

▪   Maintained strong capital position

Allowance for credit losses (ACL) to total loans

1.67 %

1.68 %

1.68 %

–  CET1 capital ratio of 10.2%

–  Maintained regulatory minimum Stress Capital Buffer (SCB) of2.5%

Selected Ratios

Return on average common shareholders' equity

12.16 %

11.39 %

13.01 %

–  Increased quarterly common stockdividend 5 cents to $1.60 per share on July 2, 2024

Return on average assets

1.05

0.97

1.08

Net interest margin (NIM) (non-GAAP)

2.60

2.57

2.79

Noninterest income to total revenue

39

37

34

Efficiency

62

65

64

Common equity Tier 1 (CET1) capital ratio

10.2

10.1

9.5

See non-GAAP financial measures in the Consolidated Financial Highlights accompanying this release.