Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q3 2022 Earnings Presentation
20 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Oct 14, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
Third Quarter 2022 Earnings Conference Call October 14, 2022 The PNC Financial Services Group © PNC
Slide 2: Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information
Cautionary Statement Regarding Forward-Looking and ® PNC 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 c
Slide 3: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights © PNC Net Income = Delivered strong financial performance $1 .6 billion — Generated record revenue with higher net interest and noninterest income — Net interest margin increased 32 basis points Diluted Earnings Per Share $3.78 — Disciplined expense management, resultin
Slide 4: Balance Sheet: Well-Positioned Balance Sheet
Balance Sheet: Well-Positioned Balance Sheet @©PNC % Change 3Q22 vs. Average balances, $ billions 3Q22 2Q22 3Q21 2Q22 3Q21 Commercial $214.1 $207.6 $196.3 3% 9% Consumer $98.9 $97.2 $95.0 2% 4% Total loans $313.0 $304.8 $291.3 3% 7% Investment securities $137.0 $134.7 $120.6 2% 14% Federal Reserve B
Slide 5: Balance Sheet: Supporting Customer Loan Growth
Average balances, $ billions Balance Sheet: Supporting Customer Loan Growth PNC verage Loans inked Quarter Change in Spot Loans A Li Linked Quarter Ch Spot L $313.0 304.8 1.5 7 $291.3 $288.9 $290.7 $ $3.1 +$ $315.4 $207.6 $310.8 _———— $196.3 $193.8 $195.6 $95.0 $95.1 $95.1 $97.2 3 302 4021 1022 2022
Slide 6: Balance Sheet: Strong Core Deposit Base
Average balances, $ billions Balance Sheet: Strong Core Deposit Base Average Deposits Deposit Mix Remains Relatively Stable $454.4 $452.8 $453.3 $446.5 66.5% 2 € S 2 wa g 8 e 4s s s 3 2 a 3Q21 4Q21 1Q22 2022 3Q22 = Noninterest-bearing m Interest-bearing O Rate Paid @®PNC Linked Quarter Change in Spo
Slide 7: Balance Sheet: Well-Positioned Securities Portfolio
Balance Sheet: Well-Positioned Securities Portfolio Reinvesting Maturing Securities at Higher Rates Securities Portfolio Overview $127.8 $133.9 $134.7 $137.0 “ | Held to Maturity 66.4% Available for Sale 33.6% Third quarter securities activity: 3021 4021 1022 2022 3022 80% of purchases directly into
Slide 8: Income Statement: Generated 7% Positive Operating Leverage
Income Statement: Generated 7% Positive Operating Leverage @©PNC % Change 3Q22 vs. $ millions 3Q22 2Q22 3Q21 2Q22 3Q21 Revenue $5,549 $5,116 $5,197 8% 7% Noninterest expense 3,280 3,244 3,587 1% (9%) Pretax, pre-provision earnings (non-GAAP) $2,269 $1,872 $1,610 21% 41% Provision for (recapture of)
Slide 9: Income Statement: Diversified Business Mix
Income Statement: Diversified Business Mix Total Revenue Record Quarterly Revenue $5,197 $5,127 $5,116 $4,692 $ millions 3Q21 4Q21 1Q22 2022 Net Interest Income mNoninterest Income ONet Interest Margin $5,549 3Q22 @©PNC Details of Revenue +8% Linked Quarter 3022 vs. 2022 $ millions 3022 2022 $Chg. %
Slide 10: Income Statement: Focused On Controlling Expenses
Income Statement: Focused On Controlling Expenses @©PNC Noninterest Expense Noninterest Expense Detail Expenses Remain Well Controlled +1% Linked Quarter 3022 vs. 2Q22 $3,791 $3,587 $ millions 3022 2022 $Chg. %Chg. en $3,172 $3,244 $3,280 3,352 F $ $3,157 $3,235 $3,280 Personnel $1,805 $1,779 $26 1%
Slide 11: Credit: Strong Credit Quality Performance
$ millions Credit: Strong Credit Quality Performance Nonperforming Loans (NPLs) $2,528 $9480 9/30/21 12/31/21 $2,298 $2,046 $2,068 3/31/22 6/30/22 9/30/22 $1,469 9/30/21 @©PNC Credit Quality Metrics 3021 4021 1022 2022 3022 NPLs / Total Loans (Period End) 0.87% 0.86% 0.78% 0.66% 0.66% Delinquencies
Slide 12: Outlook: Fourth Quarter 2022 Compared to Third Quarter 2022
Outlook: Fourth Quarter 2022 Compared to Third Quarter 2022 ® PNC ($ millions; except average loans, $ billions) 3022 4022 Guidance Average loans $313.0 Up ~1% Net interest income $3,475 Up 6% - 8% Fee income $1,757 Stable to Down 1% Other noninterest income $317 $200 million - $250 million Revenue
Slide 13: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ® PNC 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 r
Slide 14: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ® PNC 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 and do not take into account potential legal
Slide 15: Cautionary Statement Regarding Forward-Looking Information
Appendix: Cautionary Statement Regarding Forward-Looking ® PNC Information * Business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through effective use of systems and controls, third-party insura
Slide 16: Integration Costs Incurred Since Announcement
Appendix: Integration Costs Incurred Since Announcement © PNC Acquisition Integration Cost Update Approximately 99% of Integration Costs Incurred as of 9/30/22 Total Since $ millions 4020 1021 2Q21 3021 4021 1022 2022 3022 Announcement Write-offs $--- $--- $120 $--- $--- $--- $--- $--- $120 Contra-r
Slide 17: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation ® PNC Tangible Book Value per Common Share (non-GAAP) For the three months ended $ millions, except per share data Sept. 30, 2022 June 30, 2022 Sept. 30, 2021 Book value per common share $97.59 $101.39 $121.16 Tangible book value per common share Common shar
Slide 18: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation ® PNC Adjusted Income Statement Results (non-GAAP) For the three months ended $ millions, except per share data Sept. 30, 2022 June 30, 2022 Sept. 30, 2021 Net interest income $3,475 $3,051 $2,856 Noninterest income 2,074 2,065 2,341 Total Revenue $5,549 $5,
Slide 19: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation ® PNC Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended $ millions Sept. 30, 2022 June 30, 2022 Mar. 31, 2022 Dec. 31, 2021 Sept. 30, 2021 Net interest income $3,475 $3,051 $2,804 $2,862 $2,856 Taxable-equivalent adjustments 29 25
Slide 20: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Noninterest Expense excluding Integration Expense and Adjusted Efficiency (non-GAAP) @©PNC For the three months ended For the year ended $ millions Sept. 30, 2022 June 30, 2022 Sept. 30, 2021 Dec. 31, 2021 Noninterest expense $3,280 $3,244 $3,587 $13,002 Int
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