Generated positive operating leverage; increased pretax, pre-provision earningsGrew capital and tangible book value

PITTSBURGH, Oct. 13, 2023 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported:

For the quarter

In millions, except per share data and as noted

3Q23

2Q23

3Q22

Third Quarter Highlights

Financial Results

Comparisons reflect 3Q23 vs. 2Q23

Revenue

$  5,233

$  5,293

$  5,549

Income Statement

▪   Generated positive operating      leverage of 3%

▪   Revenue declined 1%

▪   Expenses were well controlled,     decreasing 4%

▪   PPNR increased 3%

▪   Provision for credit losses of     $129 million

Balance Sheet

▪   Average loans decreased 2%

▪   Average deposits declined 1%

▪   Federal Reserve Bank balances     averaged $37.9 billion, an     increase of $7.3 billion

▪   ACL to total loans was stable

▪   Net loan charge-offs were $121     million, or 0.15% annualized to     average loans

▪   AOCI was a negative $10.3     billion, reflecting the     unfavorable impact of interest rate     movements

▪   TBV increased to $78.16

▪   CET1 capital ratio increased 30     basis points to 9.8%

Noninterest expense

3,245

3,372

3,280

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

1,988

1,921

2,269

Provision for credit losses

129

146

241

Net income

1,570

1,500

1,640

Per Common Share

Diluted earnings

$    3.60

$    3.36

$    3.78

Average diluted common shares outstanding

400

401

410

Book value

105.98

105.67

97.59

Tangible book value (TBV) (non-GAAP)

78.16

77.80

69.98

Balance Sheet & Credit Quality

Average loans    In billions

$  319.5

$  324.5

$  313.0

Average deposits    In billions

422.5

425.7

439.2

Accumulated other comprehensive income (loss) (AOCI)    In billions

(10.3)

(9.5)

(10.5)

Net loan charge-offs

121

194

119

Allowance for credit losses (ACL) to total loans

1.70 %

1.68 %

1.67 %

Selected Ratios

Return on average common shareholders' equity

13.65 %

13.01 %

14.97 %

Return on average assets

1.12

1.08

1.19

Net interest margin (NIM) (non-GAAP)

2.71

2.79

2.82

Noninterest income to total revenue

35

34

37

Efficiency

62

64

59

Common equity Tier 1 (CET1) capital ratio

9.8

9.5

9.3

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