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July 16, 2024 Newswires No comments

Financial Supplement Q2 2024

U.S. Markets via PUBT

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT SECOND QUARTER 2024 (Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2024

(UNAUDITED)

Consolidated Results:

Income Statement Balance Sheet Average Balance Sheet Details of Net Interest Margin Loans

Allowance for Credit Losses Nonperforming Assets Accruing Loans Past Due

Business Segment Results:

Descriptions

Period End Employees

Net Income and Revenue

Retail Banking

Corporate & Institutional Banking

Asset Management Group

Glossary of Terms

Page1 2 3 4 5

6-7

9-11

14-15

18-19

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 16, 2024. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS

PNC is one of the largest diversified financial services companies in the United States (U.S.) and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located coast-to-coast. PNC also has strategic international offices in four countries outside the U.S.

THE PNC FINANCIAL SERVICES GROUP, INC.

Cross Reference Index to Second Quarter 2024 Financial Supplement (Unaudited)

Financial Supplement Table Reference

Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4
5	Details of Loans	5
6	Change in Allowance for Loan and Lease Losses	6
7	Components of the Provision for Credit Losses	7
8	Allowance for Credit Losses by Loan Class	7
9	Nonperforming Assets by Type	8
10	Change in Nonperforming Assets	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	10
13	Accruing Loans Past Due 90 Days or More	11
14	Period End Employees	12
15	Summary of Business Segment Net Income and Revenue	13
16	Retail Banking	14-15
17	Corporate & Institutional Banking	16
18	Asset Management Group	17

THE PNC FINANCIAL SERVICES GROUP, INC.

Page 1

Table 1: Consolidated Income Statement (Unaudited)

					Three months ended
In millions, except per share data		June 30			March 31		December 31		September 30			June 30
	2024			2024			2023			2023			2023
Interest Income
Loans	$	4,842	$	4,819	$	4,875	$	4,643	$	4,523
Investment securities		1,001			883			885			892			883
Other		725			798			742			668			538
Total interest income		6,568			6,500			6,502			6,203			5,944
Interest Expense
Deposits		2,084			2,077			1,995			1,792			1,531
Borrowed funds		1,182			1,159			1,104			993			903
Total interest expense		3,266			3,236			3,099			2,785			2,434
Net interest income		3,302			3,264			3,403			3,418			3,510
Noninterest Income
Asset management and brokerage		364			364			360			348			348
Capital markets and advisory		272			259			309			168			213
Card and cash management		706			671			688			689			697
Lending and deposit services		304			305			314			315			298
Residential and commercial mortgage		131			147			149			201			98
Other income
Gain on Visa shares exchange program		754
Securities gains (losses)		(499)												(2)
Other (a)		77			135			138			94			131
Total other income		332			135			138			94			129
Total noninterest income		2,109			1,881			1,958			1,815			1,783
Total revenue		5,411			5,145			5,361			5,233			5,293
Provision For Credit Losses		235			155			232			129			146
Noninterest Expense
Personnel		1,782			1,794			1,983			1,773			1,846
Occupancy		236			244			243			244			244
Equipment		356			341			365			347			349
Marketing		93			64			74			93			109
Other		890			891			1,409			788			824
Total noninterest expense		3,357			3,334			4,074			3,245			3,372
Income before income taxes and noncontrolling		1,819			1,656			1,055			1,859			1,775
interests
Income taxes		342			312			172			289			275
Net income		1,477			1,344			883			1,570			1,500
Less: Net income attributable to noncontrolling
	18			14			19			16			17
interests
Preferred stock dividends (b)		95			81			118			104			127
Preferred stock discount accretion and		2			2			2			2			2
redemptions
Net income attributable to common shareholders	$	1,362		$	1,247		$	744		$	1,448		$	1,354
Earnings Per Common Share
Basic	$	3.39	$	3.10	$	1.85	$	3.60	$	3.36
Diluted	$	3.39	$	3.10	$	1.85	$	3.60	$	3.36
Average Common Shares Outstanding
Basic		400			400			400			400			401
Diluted		400			400			401			400			401
Efficiency		62 %			65 %			76 %			62 %			64 %
Noninterest income to total revenue		39 %			37 %			37 %			35 %			34 %
Effective tax rate (c)		18.8 %			18.8 %			16.3 %			15.5 %			15.5 %

Six months ended

June 30		June 30
2024		2023

9,661 $ 8,781
1,884 1,768
1,523 1,054

13,068 11,603

4,161 2,822

2,341 1,686

6,502 4,508

6,566 7,095

1,377	1,356
609	604
278	275

754

3,990 3,801

10,556 10,896

390 381

3,576 3,672

480 495

1,781 1,644

6,691 6,693

	3,475			3,822
	654			628
	2,821			3,194

	32			34
	176			195
	4			4
$	2,609		$	2,961
$	6.49	$	7.35
$	6.48	$	7.34
	400			401
	400			401
	63 %			61 %
	38 %			35 %
	18.8 %			16.4 %

Includes Visa Class B derivative fair value adjustments of $(116) million, $(7) million, $(100) million, $(51) million and $(83) million for the quarters ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively, and $(123) million and $(127) million for the six months ended June 30, 2024 and June 30, 2023, respectively. These adjustments are primarily related to the extension of anticipated litigation resolution timing.
Dividends are payable quarterly, other than Series S preferred stock, which is payable semiannually.
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.

THE PNC FINANCIAL SERVICES GROUP, INC.														Page 2
Table 2: Consolidated Balance Sheet (Unaudited)
In millions, except par value		June 30			March 31		December 31		September 30			June 30
	2024			2024			2023			2023			2023
Assets
Cash and due from banks	$	6,242	$	5,933	$	6,921	$	5,300	$	6,191
Interest-earning deposits with banks (a)		33,039			53,612			43,804			41,484			38,259
Loans held for sale (b)		988			743			734			923			835
Investment securities - available for sale		51,188			42,280			41,785			40,590			41,787
Investment securities - held to maturity		87,457			88,180			90,784			91,797			93,874
Loans (b)		321,429			319,781			321,508			318,416			321,761
Allowance for loan and lease losses		(4,636)			(4,693)			(4,791)			(4,767)			(4,737)
Net loans		316,793			315,088			316,717			313,649			317,024
Equity investments		9,037			8,280			8,314			8,046			8,015
Mortgage servicing rights		3,739			3,762			3,686			4,006			3,455
Goodwill		10,932			10,932			10,932			10,987			10,987
Other (b)		37,104			37,352			37,903			40,552			37,780
Total assets	$	556,519	$	566,162	$	561,580	$	557,334	$	558,207
Liabilities

Deposits
Noninterest-bearing	$	94,542	$	98,061	$	101,285	$	105,672	$	110,527
Interest-bearing		321,849			327,563			320,133			317,937			316,962
Total deposits		416,391			425,624			421,418			423,609			427,489
Borrowed funds
Federal Home Loan Bank borrowings		35,000			37,000			38,000			36,000			34,000
Senior debt		29,601			27,907			26,836			22,407			22,005
Subordinated debt		4,078			4,827			4,875			4,728			5,548
Other (b)		2,712			2,973			3,026			3,032			3,831
Total borrowed funds		71,391			72,707			72,737			66,167			65,384
Allowance for unfunded lending related commitments		717			672			663			640			663
Accrued expenses and other liabilities (b)		15,339			15,785			15,621			17,437			15,325
Total liabilities		503,838			514,788			510,439			507,853			508,861
Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800,000,000 shares, issued 543,225,979, 543,116,260,		2,716			2,716			2,716			2,715			2,715
543,116,271, 543,012,047 and 543,012,047 shares
Capital surplus		19,098			19,032			19,020			19,971			19,934
Retained earnings		57,652			56,913			56,290			56,170			55,346
Accumulated other comprehensive income (loss)		(7,446)			(8,042)			(7,712)			(10,261)			(9,525)
Common stock held in treasury at cost: 145,667,981, 145,068,954,		(19,378)			(19,279)			(19,209)			(19,141)			(19,150)
145,087,054, 144,671,252 and 144,763,739 shares
Total shareholders' equity		52,642			51,340			51,105			49,454			49,320
Noncontrolling interests		39			34			36			27			26
Total equity		52,681			51,374			51,141			49,481			49,346
Total liabilities and equity	$	556,519	$	566,162	$	561,580	$	557,334	$	558,207

Amounts include balances held with the Federal Reserve Bank of $32.6 billion, $53.2 billion, $43.3 billion, $41.1 billion and $37.8 billion as of June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively.
Amounts include assets and liabilities for which PNC has elected the fair value option. Our first quarter 2024 Form 10-Q included, and our second quarter 2024 Form 10-Q will include, additional information regarding these items.
Par value less than $0.5 million at each date.

THE PNC FINANCIAL SERVICES GROUP, INC.

Table 3: Average Consolidated Balance Sheet (Unaudited) (a) (b)

							Three months ended
		June 30			March 31			December 31	September 30			June 30
In millions		2024			2024			2023			2023			2023
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	30,229	$	30,411	$	30,980		$	31,020	$	31,180
Non-agency		551			578			599			627			663
Commercial mortgage-backed		2,698			2,622			2,727			2,880			2,948
Asset-backed		1,987			1,414			1,080			989			575
U.S. Treasury and government agencies		15,350			8,199			7,788			7,996			8,231
Other		2,620			2,776			2,899			2,931			2,997
Total securities available for sale		53,435			46,000			46,073			46,443			46,594
Securities held to maturity
Residential mortgage-backed		42,234			42,633			43,336			44,112			45,033
Commercial mortgage-backed		2,174			2,252			2,318			2,346			2,396
Asset-backed		5,035			5,627			6,040			6,463			6,712
U.S. Treasury and government agencies		35,467			35,860			36,457			37,043			36,912
Other		2,961			3,062			3,164			3,256			3,391
Total securities held to maturity		87,871			89,434			91,315			93,220			94,444
Total investment securities		141,306			135,434			137,388			139,663			141,038
Loans
Commercial and industrial		177,130			177,258			180,566			175,206			180,878
Commercial real estate		35,523			35,522			35,617			36,032			35,938
Equipment lease financing		6,490			6,468			6,430			6,441			6,364
Consumer		53,503			53,933			54,512			54,744			55,070
Residential real estate		47,272			47,428			47,444			47,081			46,284
Total loans		319,918			320,609			324,569			319,504			324,534
Interest-earning deposits with banks (c)		41,113			48,250			42,627			38,352			31,433
Other interest-earning assets		9,279			8,002			8,738			8,777			9,215
Total interest-earning assets		511,616			512,295			513,322			506,296			506,220
Noninterest-earning assets		51,414			50,553			48,997			48,667			49,287
Total assets	$	563,030		$	562,848		$	562,319		$	554,963		$	555,507
Liabilities and Equity

Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	67,631	$	67,838	$	66,393		$	64,310	$	63,691
Demand		121,423			122,748			124,124			123,730			124,111
Savings		97,232			97,719			98,490			100,643			102,415
Time deposits		34,663			32,975			30,357			25,872			22,342
Total interest-bearing deposits		320,949			321,280			319,364			314,555			312,559
Borrowed funds
Federal Home Loan Bank borrowings		35,962			37,717			37,783			34,109			33,752
Senior debt		29,717			28,475			26,634			23,479			20,910
Subordinated debt		4,567			5,082			5,091			5,293			5,850
Other		7,210			4,316			3,384			4,584			5,180
Total borrowed funds		77,456			75,590			72,892			67,465			65,692
Total interest-bearing liabilities		398,405			396,870			392,256			382,020			378,251
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		96,284			98,875			104,567			107,981			113,178
Accrued expenses and other liabilities		17,144			16,404			16,328			15,629			15,063
Equity		51,197			50,699			49,168			49,333			49,015
Total liabilities and equity	$	563,030		$	562,848		$	562,319		$	554,963		$	555,507

Page 3

Six months ended

June 30		June 30
2024		2023

30,320 $ 31,513
565 676

2,660 3,025

1,701 397

11,775 8,657

2,697 3,129

49,718 47,397

42,433 45,323

2,213 2,424

5,331 6,868

35,663 36,831

3,012 3,365

88,652 94,811

138,370 142,208

177,194 181,444

35,523 36,023

6,478 6,408

53,718 55,045

47,350 46,107

320,263 325,027

44,682 32,736

8,641 9,012

511,956 508,983

50,983 49,918 $ 562,939 $ 558,901

67,735 $ 64,716
122,085 124,243
97,476 103,406
33,819 21,436
321,115 313,801

36,839 32,909

29,096 20,298

4,824 5,974

5,764 5,156

76,523 64,337

397,638 378,138

97,579 117,155

16,774 15,536

50,948 48,072 $ 562,939 $ 558,901

Calculated using average daily balances.
Nonaccrual loans are included in loans, net of unearned income. The impact of financial derivatives used in interest rate risk management is included in the interest income/ expense and average yields/rates of the related assets and liabilities. Basis adjustments related to hedged items are included in noninterest-earning assets and noninterest- bearing liabilities. Average balances of securities are based on amortized historical cost (excluding adjustments to fair value, which are included in other assets). Average balances for certain loans and borrowed funds accounted for at fair value are included in noninterest-earning assets and noninterest-bearing liabilities, with changes in fair value recorded in Noninterest income.
Amounts include average balances held with the Federal Reserve Bank of $40.7 billion, $47.8 billion, $42.2 billion, $37.9 billion and $30.6 billion for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 and $44.3 billion and $32.0 billion for the six months ended June 30, 2024 and June 30, 2023, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC.

Table 4: Details of Net Interest Margin (Unaudited)

			Three months ended
	June 30		March 31	December 31	September 30		June 30
	2024	2024	2023		2023	2023
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.98 %	2.88 %	2.83 %		2.73 %	2.67 %
Non-agency	10.30 %	9.65 %	9.15 %		10.42 %	9.39 %
Commercial mortgage-backed	3.07 %	2.99 %	3.00 %		3.41 %	2.84 %
Asset-backed	5.92 %	6.02 %	6.41 %		6.30 %	6.56 %
U.S. Treasury and government agencies	4.28 %	2.67 %	2.22 %		2.28 %	2.20 %
Other	2.66 %	2.63 %	2.61 %		2.58 %	2.55 %
Total securities available for sale	3.53 %	3.01 %	2.89 %		2.87 %	2.73 %
Securities held to maturity
Residential mortgage-backed	2.79 %	2.77 %	2.75 %		2.72 %	2.72 %
Commercial mortgage-backed	5.38 %	5.46 %	5.53 %		5.55 %	5.35 %
Asset-backed	4.65 %	4.49 %	4.57 %		4.36 %	4.10 %
U.S. Treasury and government agencies	1.31 %	1.31 %	1.32 %		1.34 %	1.34 %
Other	4.69 %	4.52 %	4.72 %		4.57 %	4.65 %
Total securities held to maturity	2.43 %	2.42 %	2.44 %		2.42 %	2.41 %
Total investment securities	2.84 %	2.62 %	2.59 %		2.57 %	2.52 %
Loans
Commercial and industrial	6.22 %	6.18 %	6.13 %		5.86 %	5.70 %
Commercial real estate	6.66 %	6.67 %	6.68 %		6.59 %	6.37 %
Equipment lease financing	5.37 %	5.17 %	4.98 %		4.72 %	4.51 %
Consumer	7.24 %	7.16 %	7.00 %		6.89 %	6.57 %
Residential real estate	3.70 %	3.65 %	3.60 %		3.52 %	3.41 %
Total loans	6.05 %	6.01 %	5.94 %		5.75 %	5.57 %
Interest-earning deposits with banks	5.47 %	5.47 %	5.53 %		5.44 %	5.10 %
Other interest-earning assets	6.98 %	6.92 %	6.96 %		6.66 %	5.96 %
Total yield on interest-earning assets	5.13 %	5.08 %	5.03 %		4.87 %	4.70 %
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	3.39 %	3.45 %	3.32 %		3.10 %	2.79 %
Demand	2.25 %	2.26 %	2.26 %		2.15 %	1.89 %
Savings	1.85 %	1.81 %	1.68 %		1.49 %	1.26 %
Time deposits	4.48 %	4.44 %	4.11 %		3.67 %	3.26 %
Total interest-bearing deposits	2.61 %	2.60 %	2.48 %		2.26 %	1.96 %
Borrowed funds
Federal Home Loan Bank borrowings	5.66 %	5.65 %	5.66 %		5.55 %	5.28 %
Senior debt	6.55 %	6.59 %	6.25 %		6.17 %	5.91 %
Subordinated debt	6.65 %	6.64 %	6.63 %		6.52 %	6.19 %
Other	5.51 %	5.59 %	5.55 %		4.49 %	3.79 %
Total borrowed funds	6.04 %	6.07 %	5.94 %		5.77 %	5.44 %
Total rate on interest-bearing liabilities	3.26 %	3.24 %	3.10 %		2.86 %	2.56 %
Interest rate spread	1.87 %		1.84 %	1.93 %			2.01 %	2.14 %
Benefit from use of noninterest-bearing sources (b)	0.73 %	0.73 %	0.73 %		0.70 %	0.65 %
Net interest margin	2.60 %		2.57 %	2.66 %			2.71 %	2.79 %

Page 4

Six months ended

June 30		June 30
2024		2023

2.93 % 2.67 %

9.96 % 8.95 %

3.03 % 2.72 %

5.96 % 6.67 %

3.72 % 2.12 %

2.64 % 2.51 %

3.29 % 2.69 %

2.78 % 2.73 %

5.42 % 5.15 %

4.57 % 4.03 %

1.31 % 1.33 %

4.61 % 4.63 %

2.42 % 2.41 %

2.74 % 2.50 %

6.20 % 5.52 %

6.67 % 6.19 %

5.27 % 4.40 %

7.20 % 6.46 %

3.67 % 3.38 %

6.03 % 5.43 %

5.47 % 4.83 %

6.95 % 5.86 %

5.11 % 4.58 %

3.42 % 2.59 %

2.25 % 1.74 %

1.83 % 1.14 %

4.46 % 3.14 %

2.60 % 1.81 %

5.66 % 5.04 %

6.57 % 5.66 %

6.64 % 5.94 %

5.54 % 3.74 %

6.06 % 5.22 %

3.25 % 2.38 %

1.86 % 2.20 %

0.72 % 0.61 %

2.58 % 2.81 %

Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. 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 GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023 were $34 million, $34 million, $36 million, $36 million and $37 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2024 and June 30, 2023 were $68 million and $75 million, respectively.
Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.

THE PNC FINANCIAL SERVICES GROUP, INC.														Page 5
Table 5: Details of Loans (Unaudited)
		June 30			March 31		December 31		September 30			June 30
In millions		2024			2024			2023			2023			2023
Commercial
Commercial and industrial
Retail/wholesale trade	$	30,128	$	28,923	$	28,198	$	28,284	$	28,751
Manufacturing		29,544			29,402			28,989			29,163			30,586
Financial services		27,986			27,640			28,422			22,770			21,823
Service providers		21,948			21,413			21,354			21,680			22,277
Real estate related (a)		15,198			15,583			16,235			16,182			17,200
Technology, media & telecommunications		9,621			10,158			10,249			10,989			11,158
Health care		9,527			10,193			9,808			10,092			10,186
Transportation and warehousing		8,036			7,523			7,733			7,891			8,048
Other industries		26,801			25,957			26,592			27,112			27,600
Total commercial and industrial		178,789			176,792			177,580			174,163			177,629
Commercial real estate		35,498			35,591			35,436			35,776			35,928
Equipment lease financing		6,555			6,462			6,542			6,493			6,400
Total commercial		220,842			218,845			219,558			216,432			219,957
Consumer
Residential real estate		47,183			47,386			47,544			47,359			46,834
Home equity		25,917			25,896			26,150			26,159			26,200
Automobile		14,820			14,788			14,860			14,940			15,065
Credit card		6,849			6,887			7,180			7,060			7,092
Education		1,732			1,859			1,945			2,020			2,058
Other consumer		4,086			4,120			4,271			4,446			4,555
Total consumer		100,587			100,936			101,950			101,984			101,804
Total loans	$	321,429		$	319,781		$	321,508		$	318,416		$	321,761

Represents loans to customers in the real estate and construction industries.

THE PNC FINANCIAL SERVICES GROUP, INC.																			Page 6
Allowance for Credit Losses (Unaudited)
Table 6: Change in Allowance for Loan and Lease Losses
					Three months ended								Six months ended

Dollars in millions		June 30			March 31		December 31		September 30			June 30				June 30			June 30
	2024			2024			2023			2023			2023				2024			2023
Allowance for loan and lease losses
Beginning balance	$	4,693	$	4,791	$	4,767	$	4,737	$	4,741		$	4,791	$	4,741
Adoption of ASU 2022-02 (a)																					(35)
Beginning balance, adjusted		4,693			4,791			4,767			4,737			4,741				4,791			4,706
Gross charge-offs:
Commercial and industrial		(77)			(84)			(52)			(43)			(45)				(161)			(149)
Commercial real estate		(113)			(56)			(56)			(25)			(87)				(169)			(99)
Equipment lease financing		(8)			(8)			(7)			(4)			(3)				(16)			(7)
Residential real estate		(1)			(1)			(2)			(1)			(2)				(2)			(5)
Home equity		(9)			(10)			(6)			(4)			(5)				(19)			(11)
Automobile		(32)			(32)			(30)			(30)			(28)				(64)			(61)
Credit card		(90)			(92)			(87)			(78)			(80)				(182)			(154)
Education		(5)			(4)			(4)			(4)			(5)				(9)			(9)
Other consumer		(40)			(43)			(40)			(44)			(38)				(83)			(80)
Total gross charge-offs		(375)			(330)			(284)			(233)			(293)				(705)			(575)
Recoveries:
Commercial and industrial		39			19			24			45			33				58			53
Commercial real estate		7			2			2			2							9			2
Equipment lease financing		6			2			1			2			3				8			6
Residential real estate		3			3			3			3			4				6			7
Home equity		12			9			10			12			13				21			24
Automobile		24			25			23			26			27				49			51
Credit card		12			15			11			10			11				27			22
Education		1			2			2			1			2				3			4
Other consumer		9			10			8			11			6				19			17
Total recoveries		113			87			84			112			99				200			186
Net (charge-offs) / recoveries:
Commercial and industrial		(38)			(65)			(28)			2			(12)				(103)			(96)
Commercial real estate		(106)			(54)			(54)			(23)			(87)				(160)			(97)
Equipment lease financing		(2)			(6)			(6)			(2)							(8)			(1)
Residential real estate		2			2			1			2			2				4			2
Home equity		3			(1)			4			8			8				2			13
Automobile		(8)			(7)			(7)			(4)			(1)				(15)			(10)
Credit card		(78)			(77)			(76)			(68)			(69)				(155)			(132)
Education		(4)			(2)			(2)			(3)			(3)				(6)			(5)
Other consumer		(31)			(33)			(32)			(33)			(32)				(64)			(63)
Total net (charge-offs)		(262)			(243)			(200)			(121)			(194)				(505)			(389)
Provision for credit losses (b)		204			147			221			153			189				351			418
Other		1			(2)			3			(2)			1				(1)			2
Ending balance	$	4,636		$	4,693		$	4,791		$	4,767		$	4,737			$	4,636		$	4,737
Supplemental Information

Net charge-offs
Commercial net charge-offs	$	(146)	$	(125)	$	(88)	$	(23)	$	(99)		$	(271)	$	(194)
Consumer net charge-offs		(116)			(118)			(112)			(98)			(95)				(234)			(195)
Total net charge-offs	$	(262)		$	(243)		$	(200)		$	(121)		$	(194)			$	(505)		$	(389)
Net charge-offs to average loans (annualized)		0.33 %			0.30 %			0.24 %			0.15 %			0.24 %				0.32 %			0.24 %
Commercial		0.27 %			0.23 %			0.16 %			0.04 %			0.18 %				0.25 %			0.17 %
Consumer		0.46 %			0.47 %			0.44 %			0.38 %			0.38 %				0.47 %			0.39 %

Represents the impact of adopting ASU2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023. Refer to our 2023 Form10-Kfor additional information related to our adoption of this ASU.
See Table 7 for the components of the Provision for credit losses being reported on the Consolidated Income Statement.

THE PNC FINANCIAL SERVICES GROUP, INC.																			Page 7
Allowance for Credit Losses (Unaudited) (Continued)
Table 7: Components of the Provision for Credit Losses
					Three months ended								Six months ended

In millions		June 30			March 31		December 31		September 30			June 30				June 30			June 30
	2024			2024			2023			2023			2023				2024			2023
Provision for credit losses
Loans and leases	$	204	$	147	$	221	$	153	$	189		$	351	$	418
Unfunded lending related commitments		45			9			23			(23)			(9)				54			(31)
Investment securities		(11)			1			(7)			(10)							(10)			(1)
Other financial assets		(3)			(2)			(5)			9			(34)				(5)			(5)
Total provision for credit losses	$	235		$	155		$	232		$	129		$	146			$	390		$	381

Table 8: Allowance for Credit Losses by Loan Class (a)

			June 30, 2024					March 31, 2024					June 30, 2023
Dollars in millions	Allowance		Total Loans	% of Total		Allowance		Total Loans	% of Total		Allowance		Total Loans	% of Total
	Amount		Loans			Amount		Loans			Amount		Loans
Allowance for loan and lease losses
Commercial
Commercial and industrial	$	1,728	$	178,789	0.97 %	$	1,673	$	176,792	0.95 %	$	1,836	$	177,629	1.03 %
Commercial real estate		1,441			35,498	4.06 %			1,468			35,591	4.12 %			1,206		35,928	3.36 %
Equipment lease financing		74			6,555	1.13 %			76			6,462	1.18 %			100		6,400	1.56 %
Total commercial		3,243			220,842	1.47 %			3,217			218,845	1.47 %			3,142		219,957	1.43 %
Consumer
Residential real estate		48			47,183	0.10 %			39			47,386	0.08 %			72		46,834	0.15 %
Home equity		260			25,917	1.00 %			272			25,896	1.05 %			294		26,200	1.12 %
Automobile		163			14,820	1.10 %			173			14,788	1.17 %			188		15,065	1.25 %
Credit card		698			6,849	10.19 %			749			6,887	10.88 %			765		7,092	10.79 %
Education		52			1,732	3.00 %			56			1,859	3.01 %			61		2,058	2.96 %
Other consumer		172			4,086	4.21 %			187			4,120	4.54 %			215		4,555	4.72 %
Total consumer		1,393			100,587	1.38 %			1,476			100,936	1.46 %			1,595		101,804	1.57 %
Total		4,636	$	321,429	1.44 %			4,693	$	319,781	1.47 %			4,737	$	321,761	1.47 %
Allowance for unfunded lending		717							672							663
related commitments
Allowance for credit losses	$	5,353					$	5,365					$	5,400
Supplemental Information

Allowance for credit losses to total						1.67 %							1.68 %						1.68 %
loans
Commercial						1.73 %							1.71 %						1.68 %
Consumer						1.52 %							1.60 %						1.67 %

Excludes allowances for investment securities and other financial assets, which together totaled $112 million, $117 million and $171 million at June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

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The PNC Financial Services Group Inc. published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 10:43:07 UTC.