Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q1 2025 Earnings Presentation
30 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Apr 15, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
First Quarter 2025 Earnings Conference Call April 15, 2025
Slide 2: Cautionary Statement
Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information Our earnings conference call presentation is not intended as a full business or financial review and should be viewed in the context of all of the information made available by PNC in its SEC filings and on our corpora
Slide 3: Solid 1Q25 Results
Solid 1Q25 Results Grew customers and deepened relationships 1Q25 Financial Results $1.5 billion Increased C&I loan commitments and spot balances Net Income Expanded net interest margin $3.51 Diluted Earnings per Share (EPS) Well-controlled expenses +3 bps Strong credit quality Net Interes
Slide 4: Increased Capital Position
Increased Capital Position Balance Sheet Summary Linked Quarter Year over Year Average balances, $ billions 1Q25 $ % $ % Total loans $316.6 $(2.4) (1)% $(4.0) (1)% Investment securities $142.2 $(1.7) (1)% $6.7 5% Federal Reserve Bank balances $34.2 $(3.3) (9)% $(13.6) (28)% Total deposits $420.6 $(4
Slide 5: Average Loans Declined; Solid C&I Growth Drove Higher Quarter-End Balances
Average Loans Declined; Solid C&I Growth Drove Higher Quarter-End Balances Consolidated Average Loan Balances Spot Loan Roll-Forward Total loans declined 1% LQ, primarily driven by lower CRE balances C&I growth partially offset by declines in CRE and consumer $4.7 $321 $319 $317 $318.9 $316.5 $(1.3)
Slide 6: Well-Positioned Investment Securities and Receive Fixed Swaps Portfolios
Well-Positioned Investment Securities and Receive Fixed Swaps Portfolios Investment Securities Receive Fixed Swaps Leveraging floating rate securities to manage duration risk, provide flexibility Leveraging forward starting swaps to lock in higher yields and reduce and capital protection repricing r
Slide 7: Stable Deposit Base
Stable Deposit Base Consolidated Average Deposit Balances Average Consumer Deposit Mix Cumulative deposit beta1 of 51% as of March 2025 $208 $206 $210 $425 $187 $185 $188 $420 $421 $8 $ billions $10 $5 $312 $321 $324 $21 $21 $21 1Q24 4Q24 1Q25 NIB IB 2.60% 2.43% $ billions 2.23% Average Commercial D
Slide 8: Strong Year over Year Performance
Strong Year over Year Performance Income Statement Summary Linked Quarter Year over Year $ millions except EPS 1Q25 $ % $ % Net interest income $3,476 $(47) (1)% $212 6% Fee income (non-GAAP) 1,839 (30) (2)% 93 5% Other noninterest income 137 (38) (22)% 2 1% Noninterest income $1,976 $(68) (3)% $95
Slide 9: Solid Results; Continued NIM Expansion
Solid Results; Continued NIM Expansion Total Revenue Detail of Revenue Net Interest Income Noninterest Income Net Interest Margin Linked Quarter Year over Year $5,567 $5,452 $ millions 1Q25 $ % $ % $5,145 $2,044 $1,976 Net interest income $3,476 $(47) (1)% $212 6% $1,881 Asset management and brokera
Slide 10: Well-Controlled Noninterest Expense
Well-Controlled Noninterest Expense Noninterest Expense Detail of Noninterest Expense Linked Quarter Year over Year $3,506 $ millions 1Q25 $ % $ % $3,334 $3,387 Personnel $1,890 $33 2% $96 5% Occupancy 245 5 2% 1 – $ millions Equipment 384 (89) (19)% 43 13% Marketing 85 (27) (24)% 21 33% Other 783 (
Slide 11: Strong Credit Quality; NPLs and Net Charge-offs Declined
Strong Credit Quality; NPLs and Net Charge-offs Declined Nonperforming Loans (NPLs) Credit Quality Metrics 1Q24 2Q24 3Q24 4Q24 1Q25 Commercial Consumer NPLs / Total Loans (Period end) 0.74% 0.78% 0.80% 0.73% 0.72% $2,578 Delinquencies / Total Loans1 (Period end) 0.40% 0.40% 0.40% 0.44% 0.45% $2,503
Slide 12: Full Year 2025 vs. Full Year 2024; Guidance Unchanged
Full Year 2025 vs. Full Year 2024; Guidance Unchanged $ millions; except loans, $ billions 2024 2025 Guidance1, 2 Average loans $319.8 Stable Spot loans $316.5 Up 2% – 3% Net interest income $13,499 Up 6% – 7% Noninterest income $8,056 Up ~5% Total revenue $21,555 Up ~6% Noninterest expense $13,524
Slide 13: Second Quarter 2025 vs. First Quarter 2025
Second Quarter 2025 vs. First Quarter 2025 $ millions; except loans, $ billions 1Q25 2Q25 Guidance1, 2 Average loans $316.6 Up ~1% Net interest income $3,476 Up 1% – 2% Fee income (non-GAAP) $1,839 Up 1% – 3% Other noninterest income $137 $150 – $200 Total revenue $5,452 Up 1% – 3% Noninterest expen
Slide 14: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking Information We make statements in this presentation, 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,
Slide 15: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking Information 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. These statements are based on our views that: −
Slide 16: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking Information − 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 o
Slide 17: Securities and Swap Runoff and AOCI Accretion
Appendix: Securities and Swap Runoff and AOCI Accretion Cumulated Projected Runoff1 Securities and Swap AOCI Accretion1 24% of securities and swap portfolio maturing through 2026 32% of securities and swap AOCI to accrete back through 2026 $- Historical Projected $(10) (3)% (6)% $(20) (10)% $ billio
Slide 18: Commercial Real Estate (CRE) Portfolio
Appendix: Commercial Real Estate (CRE) Portfolio CRE Portfolio Represents 10% of Total Loans Total Loans As of 3/31/25 PNC Commercial Real Estate Portfolio $ billions 3/31/25 % of Total Loans Multifamily $16.0 5.0% Office 6.3 2.0% Industrial / Warehouse 3.6 1.1% Total Commercial Real Estate Retail 2
Slide 19: Multifamily Commercial Real Estate (CRE) Portfolio
Appendix: Multifamily Commercial Real Estate (CRE) Portfolio Multifamily CRE Loans Geographic Diversification Key Portfolio Metrics As of 3/31/25 By Metropolitan Statistical Area Conservative Underwriting Methodology $ billions 3/31/25 $ millions 3/31/25 12/31/24 Miami, FL $1.0 Total Loans ($ billio
Slide 20: Office Commercial Real Estate (CRE) Portfolio
Appendix: Office Commercial Real Estate (CRE) Portfolio Office CRE Loans Geographic Diversification Key Portfolio Metrics As of 3/31/25 By Metropolitan Statistical Area Conservative Underwriting Methodology $ billions 3/31/25 $ millions 3/31/25 12/31/24 Single- Tenant Los Angeles, CA $0.9 15% Total
Slide 21: Office Commercial Real Estate (CRE) Portfolio
Appendix: Office Commercial Real Estate (CRE) Portfolio Office CRE Loan Balances Multi-Tenant Office CRE Portfolio Multi-Tenant loans represent 55% of total office portfolio 1 2 Non-Criticized Criticized, Accrual Criticized, NPL Reserves / Loans All Criticized Ratio3: 53.5% $7.8 Other $6.3 Multi- $7
Slide 22: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Consolidated CET1 Ratio, including AOCI & Other Fully Phased-In Expanded Risk-Based Approach (ERBA) Impacts, Basel III Endgame Impacts (non-GAAP) Common Equity Risk-Weighted March 31, 2025 (estimated): $ billions Tier 1 Capital March 31, 2025 (estimated): $
Slide 23: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (non-GAAP) For the three months ended $ millions Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Total revenue $5,452 $5,567 $5,145 Total noninterest expense 3,387 3,506 3,334 Pretax, Pre-Provision Earnings (non-GAAP) $2,065 $2,061 $
Slide 24: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Fee Income (non-GAAP) For the three months ended $ millions Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Noninterest income Asset management and brokerage $391 $374 $364 Capital markets and advisory 306 348 259 Card and cash management 692 695 671 Lending and d
Slide 25: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended $ millions Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Net interest income $3,476 $3,523 $3,264 Taxable-equivalent adjustments 28 30 34 Taxable-Equivalent Net Interest Income (non-GAA
Slide 26: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Book Value per Common Share (non-GAAP) For the three months ended $ millions, except per share data Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Book value per common share $127.98 $122.94 $113.30 Tangible book value per common share Common shareholder
Slide 27: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Common Equity Ratio (non-GAAP) For the three months ended $ millions Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Tangible common shareholders’ equity Common shareholders’ equity $50,654 $48,676 $45,097 Goodwill and other intangible assets (11,154) (11
Slide 28: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Return On Average Tangible Common Equity (non-GAAP) For the three months ended $ millions Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024 Return on average common shareholders’ equity 11.60% 12.38% 11.39% Average common shareholders’ equity $49,217 $48,473 $44,421
Slide 29: Appendix: Preferred Dividends
Appendix: Preferred Dividends Preferred Dividends For the three months ended $ millions Jun. 30, 2025 Sep. 30, 2025 Dec. 31, 2025 Preferred dividends $84 $71 $84 The above represents our current estimate for preferred dividends in 2025 for currently outstanding series as of April 15, 2025. This esti
Slide 30: Earnings Presentation Footnotes
Earnings Presentation Footnotes Slide 2 – Solid 1Q25 Results 1. Net charge-off ratio represents annualized net loan charge-offs to average loans for the three months ended. 2. Basel III common equity Tier (CET) 1 capital ratio – 3/31/25 ratio as used in this presentation is estimated. Details of the
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