Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Q4 2024 Earnings Presentation
30 slides from Pnc Financial Services Group, Inc. (the)'s earnings presentation, Jan 16, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Earnings Conference Call January 16, 2025
Slide 2: Cautionary Statement Regarding Forward-Looking and non-GAAP Financial Information
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: Delivered Solid Full Year 2024 Results
Delivered Solid Full Year 2024 Results • Grew customers and deepened relationships $6.0 billion Net Income • Executed on organic growth opportunities across our franchise $13.74 Diluted Earnings per Share (EPS) • Generated record revenue +6% Noninterest Income Growth • Expenses well-controlled; Gene
Slide 4: Increased Deposits and Grew Capital
Increased Deposits and Grew Capital 4Q24 vs. 3Q24 4Q24 vs. 4Q23 Average balances, $ billions 4Q24 $ Change % Change $ Change % Change Total loans $319.1 $(0.5) – $(5.5) (2)% Investment securities $143.9 $1.5 1% $6.5 5% Federal Reserve Bank (FRB) balances $37.5 $(7.4) (16)% $(4.7) (11)% Deposits $425
Slide 5: Loans Stable, Impacted by Low Utilization
Loans Stable, Impacted by Low Utilization Average Consolidated Loan Balances C&IB Utilization Remains Low ~55% $325 $320 $319 $223 Commercial Loans $219 $219 51.7% stable LQ and (2)% YoY 50.7% 50.4% Average balances, $ billions Average utilization 6.13% Total Loan Yield 5.94% 5.87% declined 26 bps L
Slide 6: Well-Positioned Securities and Swaps Portfolios
Well-Positioned Securities and Swaps Portfolios Investment Securities Receive Fixed Swaps Highlights Estimated duration of 3.4 years Duration of 2.36 years NII benefit from fixed rate asset repricing: $144 $50 • Investment Securities: $137 $13 – Yield increased 9 bps LQ and 58 bps YoY – $24 billion
Slide 7: Strong and Stable Deposit Base
Strong and Stable Deposit Base Consolidated Average Deposit Balances Deposit Base Highlights Total Deposits increased 1% LQ: $424 $420 $417 $422 $425 – Primarily driven by growth in interest- bearing commercial deposits $319 $321 $321 $326 $329 Average balances, $ billions Rate paid on IB deposits d
Slide 8: Full Year Record Revenue and Positive Operating Leverage
Full Year Record Revenue and Positive Operating Leverage Quarter Full Year Income statement, $ millions except EPS 4Q24 LQ YoY 2024 YoY Net interest income $3,523 3% 4% $13,499 (3)% Fee income (non-GAAP) 1,869 (4)% 3% 7,345 6% Other noninterest income 175 154% 27% 711 15% Noninterest income $2,044 1
Slide 9: LQ Revenue Growth Driven by Higher NII
LQ Revenue Growth Driven by Higher NII Total Revenue Details of Revenue $5,432 $5,567 $5,361 Quarter Full Year $2,022 $2,044 $1,958 $ millions 4Q24 LQ YoY 2024 YoY Net interest income $3,523 3% 4% $13,499 (3)% Asset management and brokerage $374 (2)% 4% $1,485 5% $3,403 $3,410 $3,523 Capital markets
Slide 10: Well-Controlled Noninterest Expense
Well-Controlled Noninterest Expense Noninterest Expense Details of Noninterest Expense Quarter Full Year $4,074 $ millions 4Q24 LQ YoY 2024 YoY $3,506 Personnel $1,857 (1)% (6)% $7,302 (2)% $3,409 $3,327 $3,427 Occupancy 240 3% (1)% 954 (3)% Equipment 473 32% 30% 1,527 8% $ millions Marketing 112 20
Slide 11: Credit Quality
Credit Quality Nonperforming Loans (NPLs) Credit Quality Metrics 4Q23 1Q24 2Q24 3Q24 4Q24 NPLs, ex. CRE CRE NPLs NPLs / Total Loans (Period end) 0.68% 0.74% 0.78% 0.80% 0.73% $2,578 Delinquencies / Total Loans (Period end) 0.43% 0.40% 0.40% 0.40% 0.44% $2,503 $2,380 NCOs / Average Loans 0.24% 0.30%
Slide 12: Credit Quality – Office Commercial Real Estate (CRE)
Credit Quality – Office Commercial Real Estate (CRE) Office CRE Loan Balances Multi-Tenant Office CRE Portfolio Multi-Tenant loans represent 54% of total office portfolio Non-Criticized Criticized, Accrual Criticized, NPL Reserves / Loans $8.0 $7.8 $7.5 $7.2 Criticized Ratio: 53.0% All $6.7 $6.7 Mul
Slide 13: Full Year 2025 Compared to Full Year 2024
Full Year 2025 Compared to Full Year 2024 $ millions; except loans, $ billions 2024 2025 Guidance 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 Up ~1% Effective
Slide 14: First Quarter 2025 Compared to Fourth Quarter 2024
First Quarter 2025 Compared to Fourth Quarter 2024 $ millions; except loans, $ billions 4Q24 1Q25 Guidance Average loans $319.1 Down ~1% Net interest income $3,523 Down 2% – 3% Fee income (non-GAAP) $1,869 Stable Other noninterest income $175 $150 – $200 Total revenue $5,567 Down 1% – 2% Noninterest
Slide 15: 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 16: 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 17: Appendix: Cautionary Statement
Appendix: Cautionary Statement Regarding Forward-Looking 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 insurance, d
Slide 18: Appendix: Securities and Swap Runoff and AOCI Accretion
Appendix: Securities and Swap Runoff and AOCI Accretion Cumulative Projected Runoff Securities and Swap AOCI Accretion 28% of securities and swap portfolio maturing through 2026 36% of securities and swap AOCI to accrete back through 2026 $- Historical Projected $(10) (4)% (7)% $(20) (10)% $ billion
Slide 19: Appendix: CRE Portfolio Represents 11% of Total Loans
Appendix: CRE Portfolio Represents 11% of Total Loans Total Loans PNC’s Commercial Real Estate (CRE) Portfolio as of 12/31/24 $ billions 12/31/24 % of Total Loans Multifamily $16.1 5.1% Office 6.7 2.1% Industrial / Warehouse 3.9 1.2% Retail 2.1 0.7% Commercial Total Real Estate Seniors Housing 1.7 0
Slide 20: Appendix: Multifamily CRE Portfolio
Appendix: Multifamily CRE Portfolio CRE Multifamily Loans Geographic Diversification Key Multifamily Portfolio Metrics: as of 12/31/24 by Metropolitan Statistical Area Conservative Underwriting Methodology $ billions 12/31/24 $ millions 12/31/24 9/30/24 Midrise Miami, FL $1.1 31% Total Loans ($ bill
Slide 21: Appendix: Office CRE Portfolio
Appendix: Office CRE Portfolio Tenant Classification Geographic Diversification Key Office Portfolio Metrics: Single- by Metropolitan Statistical Area Conservative Underwriting Methodology Tenant Medical $ billions 12/31/24 $ millions 12/31/24 9/30/24 16% 17% Government Washington, DC $1.0 $6.7 12%
Slide 22: Appendix: 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 Risk Equity Weighted December 31, 2024 (estimated); $ billions Tier 1 Capital December 31, 2024 (estimate
Slide 23: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Core Noninterest Expense (non-GAAP) For the three months ended YoY Change For the twelve months ended YoY Change $ millions Dec. 31, 2024 Dec. 31, 2023 $ % Dec. 31, 2024 Dec. 31, 2023 $ % Total noninterest expense $3,506 $4,074 $(568) (14)% $13,524 $14,012 $
Slide 24: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Pretax, Pre-Provision Earnings (non-GAAP) For the three months ended For the twelve months ended $ millions Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Total revenue $5,567 $5,432 $5,361 $21,555 $21,490 Total noninterest expense 3,5
Slide 25: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Fee Income (non-GAAP) For the three months ended For the twelve months ended $ millions Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Noninterest income Asset management and brokerage $374 $383 $360 $1,485 $1,412 Capital markets and a
Slide 26: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Taxable-Equivalent Net Interest Income (non-GAAP) For the three months ended For the twelve months ended $ millions Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Net interest income $3,523 $3,410 $3,403 $13,499 $13,916 Taxable-equival
Slide 27: Appendix: 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 Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Book value per common share $122.94 $124.56 $112.72 Tangible book value per common share Common shareholder
Slide 28: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Tangible Common Equity Ratio (non-GAAP) For the three months ended $ millions Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Tangible common shareholders’ equity Common shareholders’ equity $48,676 $49,442 $44,864 Goodwill and other intangible assets (11,171) (11
Slide 29: Appendix: Non-GAAP to GAAP Reconciliation
Appendix: Non-GAAP to GAAP Reconciliation Return On Average Tangible Common Equity (non-GAAP) For the three months ended For the twelve months ended Dec. 31, Sep. 30, Dec. 31, Dec. 31, Dec. 31, $ millions 2024 2024 2023 2024 2023 Return on average common shareholders’ equity 12.38% 11.72% 6.93% 11.9
Slide 30: Appendix: Preferred Dividends
Appendix: Preferred Dividends Preferred Dividends For the three months ended For the year ended $ millions Mar. 31, 2025 Jun. 30, 2025 Sep. 30, 2025 Dec. 31, 2025 Dec. 31, 2025 Preferred dividends $71 $84 $71 $84 $309 The above represents our current estimate for preferred dividends in 2025 for curr
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